Supermax to set up own distribution in China, India, UAE

by **Cals** Wed 11 Jun 2014, 01:56

Business & Markets 2014

Written by Bernama

Tuesday, 10 June 2014 18:12

KUALA LUMPUR (June 10): Medical gloves manufacturer, Supermax Corp Bhd, plans to set up official distribution channels in China, India and the United Arab Emirates, in a move to expand its own brand business.

The company is currently distributing its own-brand gloves via domestic partners in these markets, but aims to have its own channels to tap growing potential, said Executive Chairman and Group Managing Director Datuk Seri Stanley Thai.

He refused to say when the plans would materialise.

The move would complement its current six distribution centres in Canada, the United States, the United Kingdom, Germany, Belgium and Brazil, he told reporters on the sidelines of Invest Malaysia 2014 here today.

Currently, North America constitutes 40 per cent of Supermax's total revenue, followed by Europe at 26 per cent and South America at 15 per cent.

Asia accounted for only eight per cent with Africa and the Middle East taking up a combined seven per cent.

By gearing up to expand its own brand business, which contributes 70 per cent to its total revenue and offers a higher margin, Supermax expected this to offset the lower margin in its original equipment manufacturing (OEM) business.

The company sees its OEM business to take a hit in the first quarter of this year in the wake of rising business costs locally and the cut-throat competition from Thailand and China.

Supermax has earmarked a capital expenditure of RM65.5 million for this year and a total of RM164.5 million for 2015 and 2016.