VICTORIAS MILLING COMPANY INC

VICTORIAS MILLING COMPANY INC

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Company Overview
Victorias Milling Company, Inc. (VMC) is a public quoted company engaged in the production of an integrated raw and refined sugar. The company was founded on May of 1919 by the late Don Miguel J. Ossorio. Victorias Milling has registered business headquarters based in Makati City, Philippines.
VMC is considered as one of the country’s leading manufacturer of raw and refined sugar, as well as in the Southeast Asian region. The company focuses on the acquisition, construction, maintenance and operation of sugar mills. It principally operates a production facility in Negros Occidental, Philippines.
The company is also engaged in diversified businesses such as provision of engineering services and food processing. The engineering division operates into two units including construction and engineering works; and the food processing division caters the production of frozen meat products.
The company aims to provide products and services that satisfy the needs of internal and external customers through the establishment, implementation and continual improvement of quality management systems.
Business Summary
The Company is engaged in the business of acquiring, constructing, maintaining and operating sugar mills, as well as other related business activities. It is the largest sugar mill operator in the Philippines and one of the largest in the Southeast Asian region.
Description and history
Victorias Milling Company, Inc. is an agro-industrial complex located in the City of Victorias, Negros Occidental. Founded on May 7, 1919 by the late Don Miguel J. Ossorio, the company was among the earliest modern sugar mills in the country at the turn of the century.

In 1921, the Company started to expand its facilities. A sugarcane agriculture research department was established, the first in a sugar central in the country. This was followed by the construction of the VMC Dock (port) at the coastal part of Victorias, also another first in the industry.

In 1928, the Company further broadened its operations by establishing a sugar refinery. On its first year of operation, it produced 90,920 100-pound bags. It was in the same year when VMC started producing hydrous alcohol in Manapla.

The following year, it made its first export of raw sugar to the United States. This marked the beginning of VMC as a regular sugar exporter to the US. In 1934, the first export of high-grade refined sugar to the US was made.
Actually VMC is the result of the integration of two sugar mills —the original VMC and the North Negros Sugar Company (NONSUCO), the first sugar mill built by Don Miguel in 1917 in the Municipality of Manapla.

During the outbreak of the Japanese war, NONSUCO was almost completely devastated while VMC suffered extensive damages.
Don Miguel thought that rehabilitating NONSUCO was too impractical to do, he therefore decided to merge its assets with those of VICMICO.

In April 1946, the integrated VMC commenced postwar operation and from then on, the Company expanded steadily into a conglomerate involved in non-sugar operations comprising of engineering products and services, food processing, agri-business (aquaculture, cutflower, swine and cattle projects, organic fertilizer), a shipping component, management and consultancy services.

VMC likewise advanced itself in the fields of industrial relations and social responsibility and came to be regarded as a leader in the sugar industry. As an exponent of industrial peace, it has been conferred the ‘CLARA AWARD’ by the Department of Trade and Industry. Other honors include the ‘SIKAP-GAWA AWARD’, ‘Outstanding Community Development Program Award’, ‘TANGLAW AWARD’, ‘UNLAD-BAYAN AWARD’ and the ‘EMILIO ABELLO AWARD.’
Through the years, the Company was able to establish more than a dozen subsidiaries and affiliates.
VMC, driven by its progressive spirit, has also ventured into industrial estate development known as Victorias Industrial Estate. It stands as another achievement in the Company’s pursuit of entrepreneurial excellence.

The Early 90’s In the early nineties, the Philippine government felt that the country was ready for global competition and therefore opened its doors to free trade which posed as a threat not only to VMC but to the entire sugar industry.

But VMC took the challenge and prepared itself for the competition in order to maintain its dominance in the domestic industry. In 1993, it went into the Initial Public Offering to infuse more funds for its modernization program that included the mill expansion project.

But in 1996, the sugar industry was in the grip of its worst crisis since the early 1980’s. The domestic sugar prices plunged to rock-bottom levels due to the flooding of cheap foreign sugar in the market.

VMC began to feel the pinch and incurred heavy losses due to the drop in prices as well as rising interest payment on loans from creditors.

The financial debacle experienced by VMC took the business community by surprise knowing fully well that the firm is one of the longest existing local companies in the country.

To keep the operations going, VMC has either spun-off or closed down its non-sugar activities, particularly the agri-business area, shipping activities and schools and concentrated on the sugar business. As a result, many employees were retrenched.

VMC had to seek temporary suspension of its interest and principal payments from the Securities and Exchange Commission until it is able to straighten out its finances and attract a new investor who would infuse fresh capital.
But while the company is waiting for the entry of new investors, the management is trying its best to satisfy its clients with quality goods and services.

Founded by the late Don Miguel J. Ossorio

Business Line
Production of an integrated raw and refined sugar
Subsidiary

Advisor
MANABAT SANAGUSTIN & CO
IPO date
11/15/1993
US SIC Code
2062
Company Address
Negros Occidental

City province or state postal code
6119, VICTORIAS CITY
Phone:
Fax: +63 34 3993378
Country address: PHILIPPINES
Website url: www.victoriasmilling.com