Thai-based company continues strong growth in Malaysia

By Zieman

CP Holdings (M) Sdn Bhd¿s president Pratan Jongpun inspecting the nuggets at the processing plant in Senawang.

CP Holdings Malaysia Sdn Bhd is ahead of the curve when it comes to poultry processing in Malaysia, and a visit to its plant in the Senawang Industrial Estate in Seremban shows why this is so.

The facility ranks as one of the cleanest, most automated and most effective plants for producing processed chicken products.

Modern sanitation and clean-air technology is used throughout the facility, and hygiene standards can be seen on everything within the plant, from the walls, trays, processing equipment, to the air and even personnel.

No wonder CP Holdings’ president Pratan Jongpun takes pride in saying that CP plant adopts a resort-style atmosphere.

The different stages how chicken nuggets are processed.
Malaysian favourite: The chicken nuggets produced by CP Malaysia are sold in many super markets.

“We are proud of our plant’s professional hygiene and its proper state of sanitation. Even our laboratory regulations are strictly adhered to,” said Pratan who was posted here October last year.

In fact CP Holdings (M) Sdn Bhd is the first poultry processing company in South-East Asia and Malaysia to be awarded the ISO 22000:2005 certification in Food Safety Management.

Their range of product consists of frozen and chilled products marketed under the “5 Star”, “CP”, “Champ” and “Ayam Pertiwi” brands.

They currently have three plants located in Senawang. Negri Sembilan — the Senawang Food Division, Senawang Processing Plant, and Senawang Rendering Plant. According to Pratan, their long-term objective is to develop CP products into successful brands.

CP Holdings (M) Sdn Bhd¿s president Pratan Jongpun
Poultry experts: Pratan showing some of the company’s other products

“Our marketing strategy has always been to please our customers. Our consistent delivery of quality food products has made us very popular among our customers. And we always believe that our loyal customers are our ambassadors,” said Pratan who studied agriculture at Chiangmai University in Thailand.

Pratan said, over the years, CP had managed to develop its corporate brand along the vision and tagline “Kitchen of the world”.

“We have carried out a variety of tried and tested marketing strategies and we are determined to produce successful products that are popular locally and win the hearts of the Malaysians. So far, we have managed to create a unique taste with 14 of our products and each of them has an individual brand identity,” he said.

Pratan is confident that anyone who tries CP products will be hooked.

“CP products are for anyone and everyone because our range caters for all tastes. Besides our mouth-watering fried chicken, we have other options like the delicious nuggets and ready-to-eat meals. After you have tried them, you will understand what it means to experience our products,” said Pratan, who speaks fluent Indonesian after he was posted to Jakarta for 10 years to develop the CP brand.

CP is Charoen Pokphand in Thai language, which means “prosperity business”. Charoen Pokphand Group, headquartered in Bangkok, Thailand, was founded in 1921 and is one of the Asia’s leading conglomerates.

It started its activities in Thailand as an agriculture-industry company. Now it has become an international agriculture-industry and technology company in many growing economies such as China as well as European countries.

This is the section where the nuggets are processed
Modern facility: Part of CP Malaysia’s processing plant in Senawang.

The group has investments in more than 60 countries, and employs over 300,000 people. With overall revenue around US$20bil (RM63.5bil) the group is involved in diverse sectors such seeds and fertiliser, seafood, international trade, marketing and distribution, telecommunications, the automotive industry, real estate, and agricultural industries.

CP Group takes second place in the world with its weekly broiler chick production of 26 million while being the biggest animal food producer in the world with an annual production of 23.2 million tonnes.

“To succeed, we are taught to strongly hold to the investment philosophies of CP Group. Among other things, we should strive to benefit the country, benefit the people and benefit the company,” said Pratan who joined the CP Group in the production department when he was 23 years old.

CP Group Malaysia started its 1974, focusing primarily on poultry integration and is now one of the market leaders in the agro industry and food business sector. Today it is involved in livestock and aquaculture breeding, and integrated ventures from feeds and farms to food.

The company is fully expanding their productivity in animal feed, poultry breeding, poultry farming, processed foods, layer and commercial eggs, mini markets and food kiosks. Headquatered in Port Klang, CP Group Malaysia has a presence in Johor, Melaka, Negri Sembilan, Selangor, Kuala Lumpur, Pahang, Perak, Penang, Kelantan and Sarawak.

The company’s agro industry and foods business group consists of five subsidiaries: Charoen Pokphand Holding (Malaysia) Sdn Bhd, Avian Farm (Malaysia) Sdn Bhd, Charoen Pokphand Jaya Farm (M) Sdn Bhd, Teck Huat Farming Sdn Bhd and PK Agro Industrial Products (M) Sdn Bhd. They are also collaborating with Pertanian Pertiwi Sdn Bhd to set up the 5Star Fresh Marts mini markets and kiosk business. The company currently has 11 farms located all over Malaysia.

“All our products use only the freshest produce and they are stored and produced in the cleanest of environments. Our motto has always been to go to the extra mile for quality and excellence in all things,” said Pratan.

CP Malaysia uses halal slaughtering in all of its poultry production. All the chickens are slaughtered according to Islamic regulations and certified by the Department of Islamic Development Malaysia (Jakim).

“We have always used halal slaughter and butchering techniques. Besides our strictly halal meat, all our facilities, operating standards and the slaughtering of chickens are inspected and certified by Jakim. I’m sure the Muslim community welcomes this accreditation,” said Pratan.

According to Pratan, the company’s farms are built around closed and evaporative cooling systems.

The closed system is based on bio-security technology to prevent possible entry of potential disease carriers, while evaporative cooling systems maintain suitable temperatures in the housing unit. To achieve even higher quality and efficiency, they conduct food inspections.

The company currently has two labs in Labu and Senawang, Negri Sembilan.

Pratan said, next year, CP Malaysia is going to focus on its ready-to-eat products, which will be inspired by the local cuisines of the region.

So far the company has launched three different ranges of products, which includes the spaghetti range (chicken sauce, mushroom and carbonara), Thai cuisine (chicken tom yum with rice) and Malaysian delights (Nasi Lemak with chicken rendang, kampung fried rice, American fried rice and sausage fried rice) in microwave packs and the response has been overwhelming.

“Ready-cooked meals will give us more value. With the strong distribution network including Giant, AEON and Tesco, CP Malaysia is targeting to expand its ready-to-eat products to convenience stores and petrol stations,” said Pratan who has been with the CP Group for the last 30 years.

The company’s other premium snack products include crispy chicken fingers, halal Gaijor Dim Sum and Mexican BBQ Chicken.

To date CP Malaysia has invested in developing its agro industries, aquaculture and food business such as animal feed production, shrimp and poultry farming, shrimp and poultry processing and its value added products.

“We are all geared up to develop Malaysia as a halal-hub by 2015, with the main aim of exporting our products to other Muslim countries,” said Pratan.

CP Malaysia currently has 4,700 employees and Pratan says, the company processes job applicants with an emphasis on quality.

“CP selects the people. We want quality skilled workers who have speed, not slow people. We are in a business where we have to improve all the time. We should not say we are the best even if we are.

“Tomorrow’s performance has to be better than today so that we are always improving ourselves. There is no time to celebrate. That way we are always moving ahead,” said Pratan who believes in the theories of management guru, Prof Dr Noel M. Tichy.

“We were taught that everyone should be a leader. That’s why we have the Leaders developing leaders training programme,” he added.

By next year, CP Malaysia plans to have three more CP Fresh Marts, 200 community freezers, 1,000 kiosks and products in 1,700 convenience stores all over the country.

“By aggressively promoting the food business next year and carrying out all the projects, we expect 12% revenue growth. We are also spending RM100mil for our boiler farm in Desaru, Johor and we’ve just rented a 20 acre feed mill in Pasir Gudang.

“All this has provided job opportunities for a lot of Malaysians. We would like to thank the government for the fast growth of the poultry industry,” said Pratan who once lead the CP Group team to explore business opportunities in five African countries.

To stay ahead as one of the most productive poultry producing in this region, CP Malaysia has its own strategy of expansion.

“We have to pursue the right growth opportunities and avoid the wrong ones. We have to be disciplined about or core business. We are always developing and restructuring our marketing strategy. All this will add to our growth and support,” said Pratan.

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