MFM eyeing myanmar as potential market for flour milling business

by **hlk** Thu 16 May 2013, 19:17

Business & Markets 2013
Written by Bernama
Thursday, 16 May 2013 16:52
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KUALA LUMPUR (May 16): MALAYAN FLOUR MILLS BHD [] (MFM) is
looking at Myanmar as a potential market for its flour milling business.
Chairman Tan Sri Arshad Ayub said there were very few flour milling
companies in that country.
"We are eyeing an increase of up to five per cent in our milling business
this year.
"After our successful joint venture in Indonesia, we are looking at
Myanmar as another potential destination," he told reporters after the
group's annual general meeting today.
MFM started its flour milling business in Indonesia via its 30 per
cent-owned joint venture with PT FKS Capital, Toyota Tsusho Corp,
Toyota Tsusho (S) Pte Ltd and PT Toyota Tsusho Indonesia called PT
Bungasari Flour Mills Indonesia.
The group also owned two milling plants in Vietnam.
Arshad said the plant in Indonesia produced about 1,500 tonnes of
wheat flour a day.
He said milling business contributed about 50 to 70 per cent of the
group's profit.
He said the expansion of the group's manufacturing, packaging and warehousing facilities in Lumut has been completed and
commercial production commenced in the last quarter of 2012.
"Similar expansion in the Pasir Gudang plant is to be completed in August or September.
"The increased capacity in both our flour milling facilities will enhance our position in supporting our customers' needs and in
meeting market demand," he said.
MFM has also interests in poultry and raw materials trading.
Arshad said the fluctuating commodity prices and volatility of foreign exchange rate were the biggest challenge for the group.
"We will continue to grow our economies of scale and leverage on our competitive advantages and improve efficiency," he
added.
The group's pre-tax profit for the financial year ended Dec 31, 2012 fell to RM51.18 million from RM103.61 million in the
same period last year.
However, revenue rose to RM2.03 billion from RM1.92 billion last year. -- BERNAMA