Oct 2, 2012

Malaysia - Felda set to penetrate Asean via Myanmar

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YANGON: Felda Holdings Bhd’s subsidiary Delima Oil Products Sdn Bhd (DOP) will soon set up a packaging and production plant in Myanmar, enabling it to export downstream products to neighbouring countries like Laos, Cambodia, and the Philippines.

DOP chief executive officer Zakaria Arshad (pic) said up to RM30mil would be invested in the plants, with the packaging facility expected to commence operations in three months.

As for the production plant, he said the company was still talking with potential partners in the country, to set up a joint venture for the purpose.

“We are considering a few partners, especially companies related to the government, that suits our long-term goal,” he added.

With the foray into Myanmar, he said, exports to Asean countries excluding Malaysia, were expected to increase to 50% from the current 25%.

At present, 75% of DOP’s products are marketed locally.

In addition, Zakaria said DOP was also strengthening its footprint in Myanmar, in planning to penetrate at least 50% of the country’s retail market over the next few years.

The company has already cornered 50% of Yangon’s retail market in less than one year of partnership with local distributor Grand Wynn Enterprises.

DOP in November last year signed an agreement with Grand Wynn Enterprises to distribute its products, among others, its cooking oil brand Saji, Adela Industrial margarine, Mariana shortening and the newly-introduced SunBear bread spread range in Yangon.

Soon, the products will also be distributed in Mandalay and the other regions of Myanmar, Zakaria told Bernama on the sidelines of the Saji Food Carnival held here.

Also present was Felda Global Ventures Holdings Bhd president and chief executive officer Datuk Sabri Ahmad and Grand Wynn’s chairman, Nicko Hla Win.

Sabri said the group aimed to capture 100% of the Yangon retail market by year-end, riding on strong demand for quality products from the Myanmar people.

DOP is also expected to sign a new distributor deal with Grand Wynn today, to signify their extended partnership.

Bernama


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