Felda Global’s Delima Oil expects RM700m revenue for 2011

KUALA LUMPUR: Felda Global Group’s subsidiary, Delima Oil Products Sdn Bhd expects RM700 million in turnover and pre-tax profit of RM12 million to RM15 million by end-2011 with its new consumer food products.

Delima Oil expects the new products -- mayonnaise, condensed milk, evaporated milk and instant noodles marketed under the Saji brand -- to contribute an additional RM100 million to the company’s turnover.

It said these products had generated strong sales take-up, recording an increase in monthly volume of 50% since its launch in May this year.

Delima Oil chief executive officer Zakaria Arshad said: “Based on this trend, we are confident of achieving RM700 million in turnover, and a profit before tax of between RM12 million and RM15 million by year end.”

Delima Oil invested about RM8 million for these four new products which covered production as well as advertising and promotion costs.

“The increase in sales is supported by advertising exercises, as well as ground sampling events to introduce the products direct to consumers. We are encouraged by the positive feedback and see an opportunity to bolster our position as a key market player in the palm oil-based consumer food segment of the country,” added Zakaria.

Delima Oil produces and markets three brands of cooking oils – Saji, Tiara and Tiga Udang - and several packed products such as Seri Pelangi margarines for distribution in Malaysia. Its Saji cooking oil has a 27% share of the olein segment.

“We are able to leverage on our existing distribution channels for Saji cooking oil which number more than 5,000 outlets. Currently, the mayonnaise, condensed milk, evaporated milk and instant noodles are already available at hypermarkets Carrefour, Jusco, Mydin and Tesco,” he said.