Jardine Cycle & Carriage

Last updated

Jardine Cycle & Carriage Limited
FormerlyCycle & Carriage
Company type Public
SGX: C07
STI Constituent
IndustryDiversified
PredecessorCycle & Carriage Limited
Headquarters
Areas served
Singapore, Malaysia Indonesia, Thailand, Vietnam, Myanmar
Key people
Benjamin Birks, Group Managing Director
RevenueDecrease2.svg US$18.59B [1]  (2019)
Increase2.svg US$2.2B [1]  (2019)
Increase2.svg US$0.863B [1]  (2019)
Total assets Increase2.svg US$29.1B [1]  (2019)
Total equity Increase2.svg US$14.98B [1]  (2019)
Number of employees
250,000 (2019)
Parent Jardine Matheson
Subsidiaries
List
Website www.jcclgroup.com

Jardine Cycle & Carriage Limited (SGX : C07 ) is the investment holding company of the Jardine Matheson Group in Southeast Asia. It is currently 75%-held by the conglomerate.

Contents

The company was listed on the Singapore Exchange in 1969 as Cycle & Carriage Limited before it renamed to Jardine Cycle & Carriage Limited in 2004 following the integration into the Jardine Matheson Group in 2002. It is one of Singapore's largest publicly listed companies by market capitalization, valued at S$11.9 billion [2] and a component stock on the Straits Times Index. The company’s underlying profit for 2019 was US$0.863B.

History

Early history as Federal Stores

It was first founded as Federal Stores in 1899 by a trader in nutmeg and sundries on Jalan Bandar (High Street) in Kuala Lumpur, Malaysia. [3] On 15 June 1899, it was renamed Cycle & Carriage by its founders, the Chua brothers, and thereafter, it expanded to sell bicycles, motorcycles, and eventually motor cars. In 1904, Cycle & Carriage shifted to the corner of High Street, Market Street and Market Square ( 3°8′49″N101°41′47″E / 3.14694°N 101.69639°E / 3.14694; 101.69639 ) and subsequently expanded to Ipoh, Penang and Singapore.

World War I and the shift to Singapore

During World War I, Cycle & Carriage suffered economically as a result of the shortage of supply for cars. The war, however, encouraged the development of automobile technology, stimulating interest in the motor car, and spurring demand for Cycle & Carriage's products in 1918. In that year, Cycle & Carriage was registered in the Federated Malay States with SG$250,000 in registered capital. In 1926, Cycle & Carriage shifted its headquarters to Orchard Road in Singapore, [4] with capital of SG$5 million and registered as a public company known as The Cycle & Carriage Company (1926) Limited.

World War II and the Daimler-Benz contract

World War II caused the company to cease operations, and its workshops, motor cars and trucks were absorbed by the Japanese during the Japanese occupation of Malaya and the Japanese occupation of Singapore. Following that in 1951, Cycle & Carriage was awarded the Mercedes-Benz franchise in Singapore, the first to carry the marque in Southeast Asia.

Expansion and listing

Cycle & Carriage launched plans to build an assembly plant in Hillview, Singapore. On 4 March 1965, the Minister for Finance (Singapore) Goh Keng Swee laid the foundation stone for the SG$2.5 million plant, and predicted that it would create 10,000 new jobs over the following five years. In 1969, the company launched an initial public offering, which was oversubscribed by 73 times, with a total offering of SG$241.65 million - which amounted to just a little short of the budget for the Ministry of Interior and Defense for that year.

Acquisition by Jardine Matheson

By 1999, Jardine Matheson was a major shareholder in Cycle & Carriage Limited, with a 24.6% stake. [5] In 2002, Cycle & Carriage Limited became a subsidiary of Jardine Matheson when Jardine Strategic increased its stake to over 50%. In recognition of its distinguished operating history, and in the interests of integration to the Jardine Matheson Group, it was renamed Jardine Cycle & Carriage Limited.

Southeast Asia-Focused Business Portfolio

Astra International

Jardine Cycle & Carriage Limited has a 50.1% interest in Astra, a diversified group listed on the Indonesia Stock Exchange, with seven core businesses – automotive, financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology and property.

Astra is the largest independent automotive group in Southeast Asia. Its automotive business comprises the manufacture, distribution, retail and aftersales service as well as financing of motor vehicles and motorcycles. It is the sole distributor of Toyota, Daihatsu, Isuzu and Peugeot motor vehicles, a dealer of BMW motor vehicles and UD Trucks as well as a manufacturer and distributor of Honda motorcycles. Astra also manufactures and distributes automotive components. Astra’s financial services consist of consumer financing for motor vehicles and motorcycles, heavy equipment financing and banking, as well as general and life insurance. In addition, Astra is the sole distributor of Komatsu heavy equipment, and participates in general construction, mining services and thermal power businesses. Astra’s agribusiness includes the cultivation, harvesting and processing of palm oil. Its infrastructure and logistics businesses include toll roads development and management, with a total interest in 353 km of toll roads. Astra is also the sole distributor of Fuji Xerox office equipment in Indonesia. Astra’s property business includes the Grade A office building, Menara Astra, the 509-unit Anandamaya Residences and two residential development projects, namely Arumaya in South Jakarta and Asya in East Jakarta, as well as a 3-hectare (7.4-acre) residential and commercial development in Jakarta's Central Business District.

Focus in Vietnam

Truong Hai Auto Corporation

In 2008, Jardine Cycle & Carriage Limited acquired 20.5% interest in Truong Hai Auto Corporation (THACO), Jardine Cycle & Carriage's shareholding now stands at 26.6%. THACO is a multi-business group with interests in automotive, property development, agriculture and logistics. THACO is the largest automotive company in Vietnam, it manufactures, assembles, distributes, retails and provides aftersales service of commercial and passenger vehicles, representing BMW, Kia, Mazda, MINI, Peugeot, FOTON and FUSO. It also engages in residential and commercial property development, as well as agriculture in Vietnam, Laos and Cambodia. Additionally, THACO provides logistics services from warehousing, freight forwarding to seaport services.

Refrigeration Electrical Engineering Corporation

Refrigeration Electrical Engineering Corporation (REE Corp) is a diversified business group in Vietnam, listed on the Ho Chi Minh Stock Exchange. With 29.0% held by Jardine Cycle & Carriage Limited, REE Corp has operations in power and water utility infrastructure, property and M&E services. Jardine Cycle & Carriage first acquired a 10.24% interest in REE Corp in 2012.

Vinamilk

Vinamilk is the largest dairy producer in Vietnam with about 59% domestic market share [6] and is also one of the largest companies by market capitalisation on the Ho Chi Minh Stock Exchange. [7] In 2017, Jardine Cycle & Carriage Limited first acquired an interest in Vinamilk and currently holds a 10.6% stake in the company. Vinamilk is known for its wide range of dairy products which are sold across 250,000 retail points in Vietnam and exported across the region. The company has also topped Forbes Vietnam's top 50 brands in Vietnam listed companies for seven consecutive years. [8]

Siam City Cement

In 2015, Jardine Cycle & Carriage Limited acquired a 24.9% interest in Siam City Cement, the second largest cement manufacturer in Thailand. [9] Siam City Cement also has a leading presence in South Vietnam, Thailand, Cambodia and Bangladesh. Jardine Cycle & Carriage now holds 25.5% in Siam City Cement. SCCC is listed on the Stock Exchange of Thailand and operates across South and Southeast Asia, producing cement, concrete and other building materials.

Automotive

Cycle & Carriage Singapore

Cycle & Carriage Singapore (100%) is a leading automotive group in Singapore. It is engaged in the distribution, retail and aftersales service of Mercedes-Benz, Mitsubishi, Kia, Citroën, DS Automobiles and Maxus motor vehicles. It also retails used cars under its Republic Auto brand and has a car leasing business in Singapore. It is also the exclusive distributor of BYD electric forklifts in Singapore.

Cycle & Carriage Bintang (Malaysia)

Cycle & Carriage Bintang (59.1%) is listed on Bursa Malaysia. With an extensive network of 13 outlets across the country, Cycle & Carriage Bintang is a leading Mercedes-Benz dealer group in Malaysia, providing sales and aftersales services for Mercedes-Benz passenger cars and commercial vehicles, which includes FUSO trucks.

Cycle & Carriage Myanmar

In 2013, Jardine Cycle & Carriage Limited established a 60% joint-venture, Cycle & Carriage Myanmar, which distributes, retails and provides aftersales services for Mercedes-Benz and Mazda passenger cars and commercial vehicles, as well as FUSO commercial vehicles in Myanmar.

Tunas Ridean

Tunas Ridean (46.2%) is listed on the Indonesia Stock Exchange and is a leading automotive dealer group in Indonesia. It represents Toyota, Daihatsu, BMW and Isuzu motor vehicles, as well as Honda motorcycles. Tunas Ridean also offers automotive rental and fleet management services. Additionally, it provides vehicle financing through its associate, Mandiri Tunas Finance.

Key management

Related Research Articles

<span class="mw-page-title-main">Naza</span> Malaysian business conglomerate

The Naza Group of Companies is a Malaysian business conglomerate involved in many types of business, ranging from motoring to education. The group began operations in 1975 as a motor trading company. The motoring sector remains the most important sector for the group.

Cycle and Carriage was a car dealership chain founded in 1899, and based in Singapore and Malaysia.

<span class="mw-page-title-main">Astra International</span> Indonesian automotive conglomerate

Astra International is an Indonesian conglomerate controlled by Jardine Matheson. It was founded in 1957 by Tjia Kian Tie, Liem Pen Hong with the name of PT Astra International Incorporated.

Jardine Strategic Holdings Limited is an investment holding company. It is a subsidiary of Jardine Matheson.

The Keswick family are a business dynasty of Scottish origin associated with the Far East region since 1855 and in particular the conglomerate Jardine Matheson.

Group 1 Automotive, Inc. is an international Fortune 300 automotive retailer with automotive dealerships and collision centers in the United States and the United Kingdom. Group 1 sells new and used cars and light trucks, arranges financial services, provides maintenance and repair services, and sells vehicle parts. As of 2021, the company employs over 13,000 people globally.

<span class="mw-page-title-main">Colt Car Company</span>

Colt Car Company, also known as Mitsubishi Motors UK, was a privately owned business established in 1974 as part of Mitsubishi Motors' global expansion programme for the purpose of importing and distributing cars and light commercial vehicles in the United Kingdom. For the first decade of its existence, British market Mitsubishis were sold under the "Colt" marque until the rebranding to Mitsubishi, which then brought the marque in line with the rest of the world.

<span class="mw-page-title-main">Al-Mulla Group</span> Kuwaiti business group

Al Mulla Group is a diversified privately held business group based in the State of Kuwait with operations in 8 countries. With over 15,000 employees working in more than 40+ companies, Al Mulla Group today has affiliations with over 200 leading international brands and companies. The Group's operations include automotive and heavy equipment distribution and servicing, electro-mechanical contracting, civil construction, power, manufacturing, consumer & corporate financing, investments, insurance, healthcare, education, real estate, office automation, and industrial product distribution, rental and leasing of vehicles and heavy equipment, and money exchange services.

PT Indomobil Sukses Internasional Tbk, known as Indomobil Group, is a car and motor vehicle manufacturer located in Jakarta, Indonesia. It was founded in 1976 by the unification of the two former competitors PT Indohero and the original incarnation of PT Indomobil. The company operates plants in Jakarta, Bekasi, Karawang, and Purwakarta.

Anthony John Liddell Nightingale CMG, SBS is a Hong Kong businessman. He spent his career with Jardine Matheson Holdings, a diversified business group focused on Asia, and served as managing director from 2006 to 2012. He retired as Managing Director of Jardine Matheson in March 2012, but he still serves as a non-executive director of the company and other listed group companies.

<span class="mw-page-title-main">Mercedes-Benz Bank</span>

Mercedes-Benz Bank AG is a universal bank with seat in Stuttgart. Mercedes-Benz Group founded in 1979 the Mercedes Leasing GmbH and in 1987 the Mercedes-Benz Finanz GmbH. The universal bank was founded under the name DaimlerChrysler Bank in 2001 and obtained a banking license in 2002. The name was changed to Mercedes-Benz Bank in 2008.

Jardine Motors Group, is a multi-national operator of franchised motorcar dealerships in the United Kingdom with international outlets in Hong Kong, Macau and China. Jardine Motors Group market their vehicles under a series of brands worldwide including Zung Fu, Lancaster and Scotthall, and the worldwide group net profit, for the year ended 30 April 2012, was US$61 Million, based on revenue of US$5.128 Billion.

<span class="mw-page-title-main">Jardine Matheson</span> British conglomerate that incorporated in Bermuda and headquartered in Hong Kong

Jardine Matheson Holdings Limited is a Hong Kong-based, Bermuda-domiciled British multinational conglomerate. It has a primary listing on the London Stock Exchange and secondary listings on the Singapore Exchange and Bermuda Stock Exchange. The majority of its business interests are in Asia, and its subsidiaries include Jardine Pacific, Jardine Motors, Hongkong Land, Jardine Strategic Holdings, DFI Retail Group, Mandarin Oriental Hotel Group, Jardine Cycle & Carriage and Astra International. It set up the Jardine Scholarship in 1982 and Mindset, a mental health-focused charity, in 2002.

<span class="mw-page-title-main">Automotive industry in Indonesia</span> Overview of the automotive industry in Indonesia

The automotive industry in Indonesia plays an important role to the economic growth of the nation, contributing 10.16 per cent of the GDP. Indonesia automotive product exports is currently higher in value than their imports. In 2017, Indonesia is the 17th largest passenger vehicle producer in the world and the 5th largest passenger vehicle producer in Asia, producing 0.98 million vehicles.

<span class="mw-page-title-main">Truong Hai Group Corporation</span> Vietnamese automobile manufacturer

Truong Hai Group Corporation (THACO), is a Vietnamese automobile manufacturer in. The company is a member of the Vietnam Automobile Manufacturers Association (VAMA). It was founded in 1997 and is considered one of the pioneers of the Vietnamese auto industry. In 2014, the company captured 32% of Vietnam's automobile market. As of 2017, THACO owned the largest automobile production capacity in Vietnam, at 71,000 units per year.

The automotive industry in Malaysia consists of 27 vehicle producers and over 640 component manufacturers. The Malaysian automotive industry is the third largest in Southeast Asia, and the 23rd largest in the world, with an annual production output of over 500,000 vehicles. The automotive industry contributes 4% or RM 40 billion to Malaysia's GDP, and employs a workforce of over 700,000 throughout a nationwide ecosystem.

<span class="mw-page-title-main">Automotive industry in Vietnam</span>

The automotive industry in Vietnam is a fast-growing sector mainly reliant on domestic sales. All currently produced models are designed abroad by foreign brands, and many rely on knock-down kit production. Due to high import taxes on automobiles, the Vietnamese government protects domestic manufacturing. Although Vietnam is a member of the ASEAN Free Trade Area, automobile imports fall under an exception. Since January 1, 2018, the 30% import tax has been discontinued as part of ASEAN agreements. Currently, the Vietnamese motor industry is not deemed competitive enough to make exports feasible. As of April 2018, 85% of car sales in Vietnam were produced domestically from knock-down kits.

<span class="mw-page-title-main">Automotive industry in Egypt</span> Overview of the automotive industry in Egypt

The automotive industry in Egypt has been developing for 50 years. It can sell more than 200,000 vehicles annually and is now the second-largest market in Africa and the 42nd largest in the world, with an annual production output of over 70,000 vehicles. After experiencing many failures and success, the Egyptian Automotive industry is focusing more on assembly operations rather than manufacturing.

<span class="mw-page-title-main">Automotive industry in the Philippines</span> Overview of the automotive industry in the Philippines

The automotive industry in the Philippines is one of the largest in the Asia-Pacific region, with approximately 441.4 thousand vehicles sold in 2023. Most of the vehicles sold and built in the Philippines are from foreign brands. For the most part, the Philippines is dominated by Japanese automobile manufacturers like most of its ASEAN neighbors. The automobile production in the country is covered under the Philippine Motor Vehicle Development Program implemented by the Board of Investments. In addition, there are also a small number of independent firms who assemble and fabricate jeepneys and other similar vehicles, using surplus engines and drivetrain parts mostly from Japan.

References

  1. 1 2 3 4 5 "Jardine Cycle & Carriage Limited Annual Report 2019" . Retrieved 29 April 2020.
  2. "Market capitalisation". The Business Times. Retrieved 7 November 2019.
  3. Ching & Lim, p. 22.
  4. Ching & Lim, p. 10.
  5. Ching & Lim, p. 57.
  6. VietnamPlus (9 May 2019). "Vinamilk seeks to expand markets | Business | Vietnam+ (VietnamPlus)". VietnamPlus. Retrieved 7 November 2019.
  7. bizhub.vn. "Vinamilk Q4 post-tax profit grows". Việt Nam News (in Vietnamese). Retrieved 7 November 2019.
  8. VietnamPlus (2 August 2019). "Vinamilk continues to lead Forbes Vietnam's top 50 brands list | Business | Vietnam+ (VietnamPlus)". VietnamPlus. Retrieved 7 November 2019.
  9. "Siam City Cement Public Company Limited". siamcitycement. Retrieved 7 November 2019.

Works cited