TH Nature of Business
The Company produces and exports such products as canned pineapple, pineapple juice and juice concentrate and other processed tropical fruits under our customers’ own brand and under the Company’s trade mark “SIAM FOOD” ® that has been known and recognized for over 51 years. The Company owns a pineapple plantation and cannery in Chonburi.
Two subsidiaries were established; Quality Pineapple Products Co., Ltd. and Siam Food (2513) Co., Ltd. In order to supply raw materials and enhance long-term sustainable growth.
The company has revised its long-term business plan by investment in an industrial estate since 1995 and the establishment of Eastern Seaboard Industrial Estate (Rayong), which is a 60:40 joint venture between Hemaraj and Siam Food Products Plc. This has become a fully integrated industrial center and one of the largest automotive clusters.
At the Board of Directors’ Meeting of Siam Food Public Company Limited No.1/2022, held 24 November 2021, the Board of Directors of Siam Food Public Company Limited has passed its resolution to notify its shareholders of the pineapple business restructuring, with the following details:
At the Board of Directors’ Meeting of Siam Food Public Company Limited No.1/2022, held on 13 May 2021, has resolved to approve the restructuring plan of pineapple business, the Company shall cause Siam Food (2513) Co., Ltd. (“SF (2513)”), a subsidiary of the Company, as an entity to conduct the entire pineapple business instead of the Company and Quality Pineapple Products Co., Ltd. (“QPP”), a subsidiary of the Company. According to the restructuring plan, SF (2513) will commence its operation as a manufacturer of pineapple business instead of the Company from 1 December 2021 onwards. Then, it will become an exporter and distributor of pineapple business products instead of the Company from 1 January 2022 onwards. The Company has restructuring plan of pineapple business of QPP, in this regard, SF (2513) shall be a manufacturer, distributor, and exporter of the Pineapple Business products in place of QPP as well.
Overview of business operation after the business restructuring
Initially, it is predicted that the Group Company shall still have its main incomes from the pineapple business (consolidated financial statements) because it needs to take time for preparation and start of its business of land development as an industrial estate with all public utility systems in Chonburi Province. Therefore, after the business restructuring, Siam Food Public Company Limited will have its main incomes from 1) letting of land, machinery and equipment to “SF (2513)” for use in the pineapple business operation; 2) profit shares from investments in associated companies; and 3) dividends from subsidiaries and Hemmaraj Freehold and Leasehold Property Fund (“HPF”).
An overview of the Group's business operations before and after of the restructuring of the Pineapple Business can be summarized in a diagram as follows:
