2.  Business Operation

Since the Thai economy crisis in 1997, the Company has continuously
changed its managing policy to emphasize on short-term and long-term
self-operated core businesses with Group expertise. Resources in
non-core businesses are mobilized to build sufficient profit and add
value for core businesses and shareholders in the long run. Transactions
in the last five years are summarized below:

-   Sold investments and decreased roles in some businesses, e.g. SCG
    Car Services Co., Ltd. (Car Rent), Siam Compressor Industry Co.,
    Ltd. (Compressor Production), The Siam Gypsum Industry Co., Ltd.
    (Gypsum Board), The Siam Nawaloha Foundry (Automotive Parts),
    TileCera Inc., (Ceramic Tiles in the U.S.A.), Michelin Siam Group
    Co., Ltd. and subsidiaries (Tires), Siam Guardian Glass Co., Ltd.
    (Floating Glass), The Siam Moulding Plaster Co., Ltd. (Sanitary Ware
    Mould), and The Siam Industrial Wire Co., Ltd. (Construction Steel),
    etc.

-   Merged Construction Steel Business with N.T.S. Steel Group Pcl. and
    formed Millennium Steel Pcl.

-   Added investment in Paper and Packaging Business, e.g. Phoenix Pulp
    and Paper Pcl. and Thai British Security Printing Pcl.

  In 2003, the Company added and lessened some investments as summarized
  herewith: sold investment in Siam NGK Technocera Co., Ltd., and some
  investment in Thai Tokai Carbon Product Co., Ltd.; sold investments
  and stock warrants in Millennium Steel Pcl.; from most of which the
  Company gained profit (as per details in notes to financial accounts
  no. 6). Regarding the additional investment, the Paper and Packaging
  Business purchased Phoenix Pulp and Paper Pcl., United Pulp and Paper
  Co., Inc., Philippines, and Thai Cane Paper Pcl. The Petrochemical
  Business, formed a joint venture with Mitsui Chemicals in Thai PET
  Resin Co., Ltd. to produce Polyethylene Terephthalic (PET), raw
  material for PET bottles. The Building Products Business joined with
  Lafarge Roofing to set up Lafarge Siam Roofing Co., Ltd., to produce
  clay roof tiles.

The Siam Cement Public Company Limited acquired additional shares in The
Siam Pulp and Paper Public Company Limited and delisted it from the
Stock Exchange of Thailand on July 22, 2003 (As at December 31, 2003,
the Group holds 98.11% in The Siam Pulp and Paper Pcl.).

Since The Siam Cement Pcl. has become a holding company, aiming for a
transparent management, efficient resource management, strong long-term
business strategy and good governance, it has organized its structure as
follows:

-   Five Strategic Business Units, comprising Cement, Petrochemical,
    Paper and Packaging, Building Products, and Distribution.

-   Two Holding Companies, consisting of Cementhai Property (2001) Co.,
    Ltd., and Cementhai Holding Co., Ltd.

  Attribute of each business unit is summarized hereunder:

Cement Business 

The Siam Cement Industry Co., Ltd., founded on November 11, 1998,
acquired cement business from The Siam Cement Pcl., who is a 100%
shareholder. The Business produces 5 main items of cement products and
ready-mixed concrete products, i.e. grey cement, ready-mixed concrete,
white cement, dry mortar, and refractory. It also provides plant and
machinery installation and maintenance service, instrument metrological
service, and energy conservation consultation.

+-----------+----------------------------------------------------------+
| Key In    |                                                          |
| formation |                                                          |
+===========+==========================================================+
| Capacity  | 23 Million tons per year (42% of country capacity)       |
+-----------+----------------------------------------------------------+
| Main      | Grey cement, ready-mixed concrete, white cement, dry     |
| Products  | mortar, fireclay bricks, and special refractory.         |
+-----------+----------------------------------------------------------+
| Brand     | -   Cement: Elephant and Tiger Brands                    |
|           |                                                          |
|           | -   Ready-mixed concrete: CPAC Brand                     |
+-----------+----------------------------------------------------------+
| Major     | -   Maintain price level and market stability. Enhance   |
| Business  |     its domestic market leadership.                      |
| Policy    |                                                          |
|           | -   Step up as a regional leader.                        |
|           |                                                          |
|           | -   Consistently develop and improve product quality.    |
|           |                                                          |
|           | -   Continuously reduce costs and expenses, especially   |
|           |     energy costs and raw material costs, with fuel and   |
|           |     raw material substitutes.                            |
|           |                                                          |
|           | -   Develop knowledge, skills, and competency for every  |
|           |     employee with assorted methods.                      |
+-----------+----------------------------------------------------------+

Petrochemical Business

A holding company called “Cementhai Chemicals Co., Ltd.” looks after The
Petrochemical Business of The Siam Cement Group. The Business is an
integrated producer of both upstream products (Olefins) and downstream
products (Polyolefins).

+---------------------+------------------------------------------------+
| Key Information     |                                                |
+---------------------+------------------------------------------------+
| Capacity            | 1.2 Million tons per year (Ethylene +          |
|                     | Propylene)                                     |
+---------------------+------------------------------------------------+
| Main Products       | Olefins, and Polyolefins.                      |
+---------------------+------------------------------------------------+
| Strengths           | -   High competitive advantage in upstream     |
|                     |     products.                                  |
|                     |                                                |
|                     | -   Low olefins/ polyolefins production costs. |
+---------------------+------------------------------------------------+
| Major Business      | -   Emphasize polyolefins product portfolio    |
| Policy              |     with high competitive advantage.           |
|                     |                                                |
|                     | -   Become a regional leader for olefins/      |
|                     |     polyolefins.                               |
+---------------------+------------------------------------------------+
| Business            | -   Seek business opportunities in local and   |
| Development Policy  |     foreign industries, especially in olefins/ |
|                     |     polyolefins.                               |
+---------------------+------------------------------------------------+

Paper and Packaging Business

The Siam Pulp and Paper Public Company Limited was established in 1980
by The Siam Cement Co., Ltd. (at that time) and Siam Kraft Co., Ltd.,
intending to produce and sell pulp. Its original capital was Baht 100
million under the name of The Siam Pulp and Paper Co., Ltd. In 1994, it
was converted into a public company under the current name with a
capital of Baht 1,400 million. Its capital is now Baht 1,536 million and
was delisted from the Stock Exchange of Thailand.

The Siam Pulp and Paper Public Company Limited and subsidiaries are the
country only integrated producers of high quality pulp, paper, and
containers. Their chief businesses are Pulp, Printing and Writing Paper,
Industrial Paper, and Containers.

+---------------------+------------------------------------------------+
| Key Information     |                                                |
+=====================+================================================+
| Capacity            | Kraft paper 1,114,000 Tons per year            |
|                     |                                                |
|                     | Pulp 645,000 Tons per year                     |
|                     |                                                |
|                     | Printing and writing paper 347,000 Tons per    |
|                     | year                                           |
+---------------------+------------------------------------------------+
| Main Products       | Kraft paper, corrugated paper boxes, pulp,and  |
|                     | printing & writing paper.                      |
+---------------------+------------------------------------------------+
| Strengths           | -   Only integrated producer of pulp, paper,   |
|                     |     and containers in Thailand.                |
|                     |                                                |
|                     | -   World-class quality.                       |
|                     |                                                |
|                     | -   Strong domestic channel of distribution    |
|                     |     and marketing system. Exports throughout   |
|                     |     the world available.                       |
|                     |                                                |
|                     | -   Efficient production cost control.         |
|                     |                                                |
|                     | -   Total Quality Management – TQM.            |
+---------------------+------------------------------------------------+
| Major Business      | -   Maintain domestic market leadership.       |
| Policy              |                                                |
|                     | -   Go to regional leadership for pulp and     |
|                     |     paper.                                     |
|                     |                                                |
|                     | -   Sustainably grow for a valuable return to  |
|                     |     shareholders and stakeholders.             |
|                     |                                                |
|                     | -   Adhere to SCG’s corporate governance.      |
|                     |                                                |
|                     | -   Protect environment.                       |
+---------------------+------------------------------------------------+

Building Products Business

The Cementhai Building Products Co., Ltd. was founded to administer
building products and related businesses of the Group. The Company
employs modern production technology and quality control along with its
experts, enabling the Business to become market leaders for both
domestic market and ASEAN countries.

+--------------------+-------------------------------------------------+
| Key Information    |                                                 |
+====================+=================================================+
| Capacity           |   Fibre-cement roof tile 108 Million Sq. M. per |
|                    |   year (43% of country capacity)                |
|                    |                                                 |
|                    |   Concrete roof tile 14 Million Sq. M. per year |
|                    |   (47% of country capacity)                     |
|                    |                                                 |
|                    |   Ceramic tile 42 Million Sq. M. per year (35%  |
|                    |   of country capacity)                          |
|                    |                                                 |
|                    | Concrete products 0.7 Million tons per year     |
+--------------------+-------------------------------------------------+
| Main Products      | -   Roofing products: fibre-cement roof tile,   |
|                    |     concrete roof tile, and ceramic roof tile.  |
|                    |                                                 |
|                    | -   Ceramic floor and wall tiles.               |
|                    |                                                 |
|                    | -   Concrete blocks, concrete floor tiles, and  |
|                    |     precast concrete slabs.                     |
+--------------------+-------------------------------------------------+
| Brand              | -   Roofing products: Elephant, Tiger, CPAC     |
|                    |     Monier, and Excella.                        |
|                    |                                                 |
|                    | -   Ceramic floor and wall tiles: COTTO and     |
|                    |     SOSUCO.                                     |
|                    |                                                 |
|                    | -   Concrete blocks, concrete floor tiles, and  |
|                    |     precast concrete slabs: CPAC                |
+--------------------+-------------------------------------------------+
| Strengths          | -   Low production costs.                       |
|                    |                                                 |
|                    | -   Market leader with consistent product       |
|                    |     development.                                |
|                    |                                                 |
|                    | -   Good distribution network: exclusive dealer |
|                    |     network.                                    |
+--------------------+-------------------------------------------------+
| Major Business     | -   Maintain market leadership by developing    |
| Policy             |     products and services that highest respond  |
|                    |     to customer needs.                          |
|                    |                                                 |
|                    | -   Extend exports, especially ceramic tiles.   |
|                    |                                                 |
|                    | -   Continuously develop organization and       |
|                    |     employees.                                  |
+--------------------+-------------------------------------------------+
| Business           | -   Build growth by adding related new products |
| Development Policy |     and services.                               |
|                    |                                                 |
|                    | -   Enhance a strong leadership of building     |
|                    |     products in ASEAN by expanding production   |
|                    |     bases to Vietnam, Laos, and Cambodia.       |
|                    |                                                 |
|                    | -   Add capacity utilization by:                |
|                    |                                                 |
|                    | -   Increasing product lines such as “Prestige” |
|                    |     shingle roof.                               |
|                    |                                                 |
|                    | -   Increasing new application for ceramic      |
|                    |     tiles and paving blocks.                    |
+--------------------+-------------------------------------------------+

Distribution Business

Cementhai Distribution Co., Ltd. was set up according to the Group
restructuring plan in 1998 as a holding company for local and overseas
trading, selling and distribution, for building products and home mart
products. Core companies are:

-   Cementhai Sales and Marketing Co., Ltd. Local selling.

-   Cementhai Logistics Co., Ltd. Distribution, including logistics and
    domestic warehouse management.

-   SCT Co., Ltd. International trading.

-   Cementhai Retail Co., Ltd. Retailing of home mart products via
    Cementhai Home Mart network.

In addition, The Company indirectly invests in 2 jetty companies, i.e.
Thai Prosperity Terminal Co., Ltd. and Rayong Bulk Terminal Co., Ltd.

The SCG Distribution Business has attained high turnover in the country,
valuing Baht 56,551 million, Baht 52,191 million, Baht 53,326 million,
and 46,498 Baht million in 2003, 2002, 2001, and 2000 respectively. Over
50,000 product items from the Group and external companies are
presented. Non-group products will be added to increase the assortment
in the future.

Vision

The Company has a strong determination to provide distribution and
trading service to particularly respond to customer needs and
satisfaction in construction and home improvement in ASEAN.

+---------------------+------------------------------------------------+
| Key Information     |                                                |
+=====================+================================================+
| Main Products       | Group products and external products.          |
|                     | Cementhai Home Mart.                           |
+---------------------+------------------------------------------------+
| Strengths           | Distribution network throughou                 |
|                     | t the country to serve every customer segment. |
|                     |                                                |
|                     | -   Modern, accurate, and fast transportation  |
|                     |     network and warehouse management.          |
|                     |                                                |
|                     | -   Eleven foreign branches all over the       |
|                     |     world.                                     |
|                     |                                                |
|                     | -   Well-accepted products.                    |
+---------------------+------------------------------------------------+
| Major Business      | -   Enhance stronger existing business whereas |
| Policy              |     creating continuous growth for new         |
|                     |     potential business.                        |
+---------------------+------------------------------------------------+
| Business            | -   Develop both domestic and overseas         |
| Development Policy  |     channels of distribution.                  |
|                     |                                                |
|                     | -   Encourage new potential business to be     |
|                     |     viable and prosper in the long term.       |
|                     |                                                |
|                     | -   Add efficiency to business process to      |
|                     |     faster respond to customer needs.          |
|                     |                                                |
|                     | -   Improve key fundamentals in distribution   |
|                     |     business.                                  |
|                     |                                                |
|                     | -   Bring new technology into distribution and |
|                     |     logistics management                       |
+---------------------+------------------------------------------------+

Cementhai Property

Cementhai Property (2001) Co., Ltd., formerly named Siam Tyre Co., Ltd.,
was founded as a private company on October 9, 1962 and became a public
company on February 7, 1994. On December 13, 2001, its name was altered
to Cementhai Property (2001) Co., Ltd. to act as a holding company to
manage the Group industrial estate and other real estates including land
and buildings. It also provides other related services.

Cementhai Property Business is determined to add highest value to all
stakeholders by being a solution provider for industrial estate
customers, being a property and office building manager, as well as
finding opportunity to maximize highest value in the future.

Cementhai Holding

Cementhai Holding Co., Ltd. oversees investments in non-core businesses,
fair-returned businesses, and the businesses that the Group is reducing
its role, mainly some joint ventures, i.e. tire and automotive parts,
electrical components, agricultural machines, and steel. Business policy
consists of cost and expense control, new product, new overseas market,
and product development to respond to customer needs. The ultimate
objective is to develop operational capability and achieve highest
operating performance and cash generation.

Revenue Structure for 2003

+--------------------+--------+--------+----------+---------+----------+
|                    |        |        |          |         | Million  |
|                    |        |        |          |         | Baht     |
+====================+========+========+==========+=========+==========+
|                    | Net    | Other  | Total    | Sales   | Equity   |
|                    | sales  |        |          |         | in       |
|                    |        | Re     | Revenues | Pro     | As       |
|                    |        | venues |          | portion | sociated |
|                    |        |        |          | (%)     | Co       |
|                    |        |        |          |         | mpanies* |
+--------------------+--------+--------+----------+---------+----------+
| Cement Business    | 30,552 | 307    | 30,859   | 16.10   | (2)      |
+--------------------+--------+--------+----------+---------+----------+
| Petrochemical      | 50,767 | 430    | 51,197   | 26.71   | 3,962    |
| Business           |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
| Paper and          | 33,564 | 91     | 33,655   | 17.56   | 307      |
| Packaging Business |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
| Building Products  | 18,147 | 185    | 18,332   | 9.56    | 216      |
| Business           |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
| Distribution       | 56,551 | 426    | 56,977   | 29.72   | 6        |
| Business           |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
| Cementhai Holding  | -      | 111    | 111      | 0.06    | 2,237    |
+--------------------+--------+--------+----------+---------+----------+
| Cementhai Property | 475    | 99     | 574      | 0.30    | (1)      |
+--------------------+--------+--------+----------+---------+----------+
| Total              | 1      | 1,649  | 191,705  | 100.00  | 6,725    |
|                    | 90,056 |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
| Total per          | 1      | 1,997  | 150,862  |         | 6,747    |
| Consolidated       | 48,865 |        |          |         |          |
| Financial          |        |        |          |         |          |
| Statements**       |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+
|                    |        |        |          |         |          |
+--------------------+--------+--------+----------+---------+----------+

  Notes: Financial figures classified according to business type before
  inter-group adjustments.

  * Profit (Loss) from associated companies is on equity method.

  ** Figures shown on consolidations basis after adjustments, e.g. sales
  among Cement, Building Products, and Distribution Businesses were
  adjusted.

  The Siam Cement Public Company Limited Investment in Subsidiaries,
  Associates,

and Other Companies of Which Their Operations Are Significant.

  -------------------------------------------------------------------------------------------
                                                   Location      Principal        Total
                                                                                  Indirect
  ------ ---------------- ------------------------ ------------- ---------------- -----------
                          Company Name             (Head Office) Business         Holding (%)

         Cement Business                                                           

         Subsidiaries                                                              

  1.     Siam Cement                               Bangkok       Holding company  100
         Industry                                                                 
         Co.,Ltd.                                                                 

  2.     The Siam Cement                           Lampang       Cement           100
         (Lampang)                                                                
         Co.,Ltd.                                                                 

  3.     The Siam Cement                           Saraburi      Cement           100
         (Ta Luang)                                                               
         Co.,Ltd.                                                                 

  4.     The Siam Cement                           Saraburi      Cement           100
         (Kaeng Khoi)                                                             
         Co.,Ltd.                                                                 

  5.     The Siam Cement                           Nakorn Sri    Cement           100
         (Thung Song)                              Thamaraj                       
         Co.,Ltd.                                                                 

  6.     The Siam White                            Saraburi      Cement           100
         Cement Co.,Ltd.                                                          

  7.     Siam Mortar                               Saraburi      Dry mortar       100
         Co.,Ltd.                                                                 

  8.     The Concrete                              Bangkok       Ready-mixed      100
         Products and                                            concrete         
         Aggregate                                                                
         Co.,Ltd.                                                                 

  9.     The CPAC Ready                            Bangkok       Ready-mixed      100
         Mixed (South)                                           concrete         
         Co.,Ltd.                                                                 

  10.    The Siam                                  Bangkok       Refractory       100
         Refractory                                                               
         Industry                                                                 
         Co.,Ltd.                                                                 

         Associated and                                                            
         Other Companies                                                          

  11.    Asia Cement                               Bangkok       Cement           10
         Public Company                                                           
         Limited                                                                  

  12.    Holcim                                    Bangladesh    Cement           10
         (Bangladesh)                                                             
         Co.,Ltd.                                                                 

         Petrochemicals                                                            
         Business                                                                 

         Subsidiaries                                                              

  13.    Cementhai                                 Bangkok       Holding company  100
         Chemicals                                                                
         Co.,Ltd.                                                                 

  14.    Rayong Olefins                            Bangkok       Raw materials    62
         Co.,Ltd.                                                for              

                                                                 plastic resins    

  15.    Thai                                      Rayong        Plastic resins   100
         Polyethylene                                                             
         Co.,Ltd.                                                                 

  16.    Thai                                      Rayong        Plastic resins   100
         Polyethylene                                                             
         (1993) Co.,Ltd.                                                          

  17.    Thai                                      Rayong        Plastic resins   100
         Polypropylene                                                            
         Co.,Ltd.                                                                 

  18.    Thai                                      Rayong        Plastic resins   100
         Polypropylene                                                            
         (1994) Co.,Ltd.                                                          

  19.    CCC Chemical                              Bangkok       Trading          100
         Commerce                                                                 
         Co.,Ltd.                                                                 

  20.    Map Ta Phut Tank                          Bangkok       Warehouse and    81
         Terminal                                                                 
         Co.,Ltd.                                                                 

                                                                 transportation    
                                                                 service          

  21.    Rayong Pipeline                           Bangkok       Right of way,    91
         Co.,Ltd.                                                                 

                                                                 and usage         

         Associated and                                                            
         Other Companies                                                          

  22.    Siam Mitsui PTA                           Bangkok       PTA              50
         Co.,Ltd.                                                                 

  23.    Siam Polystirene                          Bangkok       Plastic resins   50
         Co.,Ltd.                                                                 

  24.    Pacific Plastics                          Bangkok       Plastic resins   48
         (Thailand) Ltd.                                                          

  25.    Siam Synthetic                            Bangkok       Synthetic latex  50
         Latex Co.,Ltd.                                                           

  26.    Siam Stirene                              Bangkok       Raw materials    50
         Monomer Co.,Ltd.                                        for              

                                                                 polystirene       

  27.    Siam                                      Bangkok       Plastic resins   50
         Polyethylene                                                             
         Co.,Ltd.                                                                 

  28.    Grand Siam                                Bangkok       Plastic resins   46
         Composites                                                               
         Co.,Ltd.                                                                 

  29.    Thai MFC                                  Bangkok       Melamine         45
         Co.,Ltd.                                                                 

  30.    Thai MMA                                  Bangkok       Raw materials    46
         Co.,Ltd.                                                for              

                                                                 coating resins    

                                                                                  

  31.    Thai Plastic and                          Bangkok       Plastic resins   26
         Chemicals Public                                                         
         Company Limited                                                          

  32.    National                                  Bangkok       Raw materials    26
         Petrochemical                                           for              
         Public Company                                                           
         Limited                                                                  

                                                                 plastic resins    

  33.    Thai Pet Resin                            Bangkok       Raw materials    20
         Co.,Ltd.                                                for              

                                                                 pet bottles       

  34.    Bangkok                                   Bangkok       Raw materials    18
         Synthetic                                               for              
         Co.,Ltd.                                                                 

                                                                 plastic resins    

  35.    Thai Olefins                              Bangkok       Raw materials    9
         Public Company                                          for              
         Limited                                                                  

                                                                 plastic resins    

  36.    The Aromatics                             Bangkok       Raw materials    14
         (Thailand)                                              for              
         Public Company                                                           
         Limited                                                                  

                                                                 plastic resins    

         Paper and                                                                 
         Packaging                                                                
         Business                                                                 

         Subsidiaries                                                              

  37.    The Siam Pulp                             Bangkok       Bleached pulp    98
         and Paper Public                                        and              
         Company Limited                                                          

                                                                 holding company   

  38.    Siam Cellulose                            Bangkok       Bleached pulp    98
         Co.,Ltd.                                                                 

  39.    Thai Paper                                Bangkok       Printing and     100
         Co.,Ltd.                                                writing paper    

  40.    Thai Union Paper                          Samut Prakarn Printing and     99
         Public Company                                          writing paper    
         Limited                                                                  

  41.    Thai Union Paper                          Bangkok       Printing and     98
         Industry                                                writing paper    
         Co.,Ltd.                                                                 

  42.    Siam Kraft                                Bangkok       Kraft paper      100
         Industry                                                                 
         Co.,Ltd.                                                                 

  43.    Thai Kraft Paper                          Bangkok       Kraft paper      99
         Industry                                                                 
         Co.,Ltd.                                                                 

  44.    Thai Containers                           Pathum Thani  Corrugated boxes 69
         Ltd.                                                                     

  45.    Thai Containers                           Samut Prakarn Corrugated boxes 69
         Industry                                                                 
         Co.,Ltd.                                                                 

  46.    Thai Containers                           Ratburi       Corrugated boxes 69
         Ratchaburi                                                               
         (1989) Co.,Ltd.                                                          

  47.    Thai Containers                           Songkhla      Corrugated boxes 69
         Songkhla (1994)                                                          
         Co.,Ltd.                                                                 

  48.    Thai Containers                           Chon Buri     Corrugated boxes 69
         Chonburi (1995)                                                          
         Co.,Ltd.                                                                 

  49.    City Pack                                 Saraburi      Corrugated boxes 69
         Co.,Ltd.                                                                 

  50.    Nippon Hi-Pack                            Bangkok       Corrugated boxes 51
         (Thailand)                                                               
         Co.,Ltd.                                                                 

  51.    Thai Containers                           Pathum Thani  Corrugated boxes 69
         V&S Co.,Ltd.                                                             

  52.    Phoenix Pulp and                          Bangkok       Bleached pulp    63
         Paper Public                                                             
         Company Limited                                                          

  53.    United Pulp and                           Philippines   Kraft paper      97
         Paper Co., Inc.                                                          

         Associated and                                                            
         Other Companies                                                          

  54.    Siam Toppan                               Samut Prakarn Offset-printed   48
         Packaging                                                                
         Co.,Ltd.                                                                 

                                                                 cartons           

  55.    Thai British                              Samut Prakarn Securities       48
         Security                                                document         
         Printing Public                                                          
         Company Limited                                                          

  56.    Thai Cane Paper                           Karnchana     Kraft paper      49
         Public Company                            Buri                           
         Limited                                                                  

         Building                                                                  
         Products                                                                 
         Business                                                                 

         Subsidiaries                                                              

  57.    Cementhai                                 Bangkok       Holding company  100
         Building                                                                 
         Products                                                                 
         Co.,Ltd.                                                                 

  58.    The Siam                                  Bangkok       Natural-fibre    100
         Fibre-Cement                                            roofing          
         Co.,Ltd.                                                                 

                                                                 sheets            

  59.    The Fibre-Cement                          Lampang       Natural-fibre    100
         Products                                                roofing          
         (Lampang)                                                                
         Co.,Ltd.                                                                 

                                                                 sheets            

  60.    Tip Fibre-Cement                          Bangkok       Natural-fibre    100
         Co.,Ltd.                                                roofing          

                                                                 sheets            

  61.    The CPAC Roof                             Bangkok       Concrete roof    75
         Tile Co.,Ltd.                                           tiles            

  62.    Thai Ceramic                              Bangkok       Ceramic roof     75
         Roof Tile                                               tiles            
         Co.,Ltd.                                                                 

  63.    The Siam CPAC                             Bangkok       Concrete paving  100
         Block Co.,Ltd.                                          blocks           

  64.    The CPAC Block                            Bangkok       Concrete paving  100
         Industry                                                blocks           
         Co.,Ltd.                                                                 

  65.    Saraburirat                               Bangkok       Concrete floor   83
         Co.,Ltd.                                                tiles            

  66.    The CPAC                                  Bangkok       Ready-to-use     100
         Concrete                                                                 
         Products                                                                 
         Co.,Ltd.                                                                 

                                                                 concrete          
                                                                 products         

  67.    Cementhai Gypsum                          Bangkok       Holding company  100
         Co.,Ltd.                                                                 

  68.    Siam Fiberglass                           Saraburi      Glass wools      100
         Co.,Ltd.                                                                 

  69.    PT. Siam-Indo                             Indonesia     Gypsum boards    50
         Gypsum Industry                                                          
         (Indonesia)                                                              

  70.    PT. Siam-Indo                             Indonesia     Natural-fibre    50
         Concrete                                                roofing          
         Products                                                                 
         (Indonesia)                                                              

                                                                 sheets            

  71.    CPAC Monier                               Cambodia      Concrete roof    75
         (Cambodia)                                              tiles            
         Co.,Ltd.                                                                 

  72.    CPAC Monier                               Philippines   Concrete roof    50
         Philippines,                                            tiles            
         Inc.                                                                     

  73.    Cementhai                                 Bangkok       Holding company  100
         Ceramics                                                                 
         Co.,Ltd.                                                                 

  74.    Thai Ceramic                              Bangkok       Ceramic tiles    100
         Co.,Ltd.                                                                 

  75.    The Sosuco Group                          Saraburi      Ceramic tiles    100
         Industries                                                               
         Co.,Ltd.                                                                 

  76.    PT. Surya Siam                            Indonesia     Ceramic tiles    66
         Keramik                                                                  

         Associated and                                                            
         Other Companies                                                          

  77.    The Siam Gypsum                           Bangkok       Gypsum boards    29
         Industry                                                                 
         Co.,Ltd.                                                                 

  78.    The Siam Gypsum                           Saraburi      Gypsum boards    29
         Industry                                                                 
         (Saraburi)                                                               
         Co.,Ltd.                                                                 

  79.    The Siam Gypsum                           Songkhla      Gypsum boards    29
         Industry                                                                 
         (Songkhla)                                                               
         Co.,Ltd.                                                                 

  80.    The Siam                                  Saraburi      Moulding plaster 40
         Moulding Plaster                                                         
         Co.,Ltd.                                                                 

  81.    Lafarge Siam                              Bangkok       Clay roof tiles  25
         Roofing Co.,Ltd.                                                         

  82.    Sosuco Ceramic                            Bangkok       Ceramic tiles    45
         Co.,Ltd.                                                                 

  83.    Siam Sanitary                             Bangkok       Sanitary ware    36
         Ware Industry                                                            
         (Nongkae)                                                                
         Co.,Ltd.                                                                 

  84.    Siam Sanitary                             Saraburi      Sanitary ware    36
         Ware Industry                                                            
         Co.,Ltd.                                                                 

  85.    The Siam                                  Bangkok       Sanitary ware    45
         Sanitary                                                fittings         
         Fittings                                                                 
         Co.,Ltd.                                                                 

  86.    Mariwasa                                  Philippines   Ceramic tiles    46
         Manufacturing,                                                           
         Inc.                                                                     

  87.    Siam Mariwasa                             Philippines   Sanitary ware    20
         TOTO, Inc.                                                               

         Distribution                                                              
         Business                                                                 

         Subsidiaries                                                              

  88.    Cementhai                                 Bangkok       Holding company  100
         Distribution                                                             
         Co.,Ltd.                                                                 

  89.    SCT Co.,Ltd.                              Bangkok       International    100
                                                                 trading          

  90.    Cementhai Sales                           Bangkok       Trading          100
         and Marketing                                                            
         Co.,Ltd.                                                                 

  91.    Cementhai                                 Bangkok       Transportation   100
         Logistics                                               service          
         Co.,Ltd.                                                                 

         Associated and                                                            
         Other Companies                                                          

  92.    Thai Prosperity                           Samut Prakarn Ports            50
         Terminal                                                                 
         Co.,Ltd.                                                                 

  93.    Rayong Bulk                               Bangkok       Ports            38
         Terminal                                                                 
         Co.,Ltd.                                                                 

         Cementhai                                                                 
         Holding                                                                  

         Subsidiaries                                                              

  94.    Cementhai                                 Bangkok       Holding company  100
         Holding Co.,Ltd.                                                         

         Associated and                                                            
         Other Companies                                                          

  95.    Thai CRT                                  Chon Buri     TV tubes         48
         Co.,Ltd.                                                                 

                                                                                  

  96.    CRT Display                               Rayong        Cathode ray      48
         Technology                                              tubes for        
         Co.,Ltd.                                                                 

                                                                 computer          
                                                                 monitors         

  97.    Thai Electron                             Rayong        Electron guns in 48
         Gun Co.,Ltd.                                                             

                                                                 picture tubes     

  98.    Siam Yamato                               Bangkok       Structural steel 45
         Steel Co.,Ltd.                                                           

  99.    The Millennium                            Bangkok       Holding company  41
         Steel Public                                                             
         Company Limited                                                          

  100.   The Siam Iron                             Bangkok       Construction     41
         and Steel (2001)                                        steel            
         Co.,Ltd.                                                                 

  101.   The Siam                                  Rayong        Construction     41
         Construction                                            steel            
         Steel Co.,Ltd.                                                           

  102.   NTS Steel Group                           Bangkok       Construction     40
         Public Company                                          steel            
         Limited                                                                  

  103.   The Siam Kubota                           Pathum Thani  Agricultural     42
         Industry                                                diesel engines   
         Co.,Ltd.                                                                 

  104.   Siam Tyre Phra                            Samut Prakarn Automotive tires 40
         Pradaeng                                                                 
         Co.,Ltd.                                                                 

  105.   Siam Tyre                                 Saraburi      Truck tires      40
         Industry                                                                 
         Co.,Ltd.                                                                 

  106.   Michelin Siam                             Chon Buri     Automotive tires 40
         Co.,Ltd.                                                                 

  107.   Michelin Siam                             Bangkok       Automotive tires 40
         Marketing and                                                            
         Sales Co.,Ltd.                                                           

  108.   The Siam Steel                            Rayong        Tire bead wires  40
         Cord Co.,Ltd.                                                            

                                                                 and steel tire    
                                                                 cords            

  109.   Siam Lemmerz                              Saraburi      Alloy wheels     30
         Co.,Ltd.                                                                 

  110.   The Nawaloha                              Saraburi      Cast iron        30
         Industry                                                                 
         Co.,Ltd.                                                                 

  111.   Siam AT Industry                          Chon Buri     Automotive parts 30
         Co.,Ltd.                                                                 

  112.   AisinTakaoka                              Chon Buri     Cast iron        30
         Foundry                                                                  
         Bangpakong                                                               
         Co.,Ltd.                                                                 

  113.   Thai Engineering                          Pathum Thani  Automotive parts 30
         Products                                                                 
         Co.,Ltd.                                                                 

  114.   The Siam                                  Bangkok       Construction     29
         Industrial Wire                                         steel            
         Co.,Ltd.                                                                 

  115.   Siam Furukawa                             Saraburi      Automotive and   29
         Co.,Ltd.                                                                 

                                                                 motorcycle        
                                                                 batteries        

  116.   Siam Asahi                                Chon Buri     TV glass bulbs   27
         Technoglass                                             for              
         Co.,Ltd.                                                                 

                                                                 color picture    
                                                                 tubes            

  117.   The Siam                                  Saraburi      Cast iron        25
         Nawaloha Foundry                                                         
         Co.,Ltd.                                                                 

  118.   Musashi Auto                              Pathum Thani  Motorcycle spare 21
         Parts Co.,Ltd.                                          parts            

  119.   The Deves                                 Bangkok       Insurance        21
         Insurance Public                                                         
         Company Limited                                                          

  120.   The Siam United                           Rayong        Cold-rolled      20
         Steel (1995)                                            steel            
         Co.,Ltd.                                                                 

  121.   Toyota Motor                              Samut Prakarn Automotives      10
         Thailand                                                                 
         Co.,Ltd.                                                                 

  122.   Thai Tokai                                Bangkok       Carbon black     7
         Carbon Product                                                           
         Co.,Ltd.                                                                 

  123.   Siam Toyota                               Chon Buri     Automotive       4
         Manufacturing                                           engines and      
         Co.,Ltd.                                                                 

                                                                 automotive       
                                                                 parts            

         Cementhai                                                                 
         Property                                                                 

         Subsidiaries                                                              

  124.   Cementhai                                 Bangkok       Holding company  100
         Property (2001)                                                          
         Public Company                                                           
         Limited                                                                  

  125.   Rayong                                    Bangkok       Industrial sites 100
         Industrial Land                                                          
         Co.,Ltd.                                                                 

  126.   SIL Industrial                            Bangkok       Industrial sites 100
         Land Co.,Ltd.                                                            

  127.   RIL 1996                                  Bangkok       Industrial sites 100
         Co.,Ltd.                                                                 

  128.   Property Value                            Bangkok       Industrial sites 100
         Plus Co.,Ltd.                                                            

                                                                                   

         Note:            Registered share is                                     
                          ordinary share only.                                    

                          Shareholding as at                                      
                          December 31, 2003.                                      
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