DPI To Grow OBM Segment, Expand Into New Markets

KUALA LUMPUR, Jan 7 (Bernama) — ACE market-debutante, DPI Holdings Bhd is expected to grow its original brand manufacturing (OBM) segment and venture into four new markets, including Cambodia and Vietnam this year. Executive chairman and managing director Peter Chai@Choy Mui Seng said the company, mainly involved in aerosol production and distribution, is ready to penetrate more markets and introduce new aerosol products going forward to support its expansion. At present, the OBM segment contributes 85 per cent to revenue, and the balance 15 per cent by the original equipment manufacturer (OEM) segment. “We are exporting 18 per cent of our production, and for just Southeast Asia, the demand for aerosol cans stood at five million. “Hence, we have set aside RM1.3 million for the development of our products from the total RM31.6 million Initial Public Offering (IPO) raised,” he told reporters after the listing ceremony Monday. The remaining RM23.5 million would be used for capital expenditure towards the expansion of production capacity and RM3 million for extension of consumer reach through marketing and advertising activities. The company has currently a presence in Japan, Australia, New Zealand, Singapore and Indonesia. Chai also said the group would construct a new factory with four new fully automated aerosol-filling lines, and work would commence by the first half of 2020. “The new factory and upgraded lines will double the annual production capacity to 20 million cans from 9.7 million,” he added. At the opening bell, DPI was traded at 34.5 sen, a 9.5 sen premium above the issue price of 25 sen, with 20.13 million shares changing hands. Chai said the bullish share price performance recorded this morning, despite the dull market, reflected market confidence in the company. “We will work hard going forward to ensure a better performance,” he said. — BERNAMA