Delima Oil hits record RM1b sales

This is written by my colleague Roziana Hamsawi.

MANILA: DELIMA Oil Products Sdn Bhd, a member company of the Felda Global Group recorded its first over-RM1 billion revenue last year, well ahead of its 2013 target, said chief executive officer Zakaria Arshad.

He said based on how well the company is doing in Malaysia and in its first overseas market Myanmar, he is confident that the performance can be sustained this year.

"Last year, our sales were more than RM1 billion, an increase of 17 per cent from the previous year," he told Business Times when met on the sidelines of the Malaysia-Philippines Palm Oil Trade Fair & Seminar here. The seminar was organised by the Malaysian Palm Oil Council and Malaysian Palm Oil Board.

He said Delima Oil, which entered the Myanmar market about a year ago, has todate registered sales of about US$10 million (RM30 million) and demand "in the last five months has been increasing".

With such success, Zakaria said Delima Oil is now eyeing the Philippines and Vietnam markets which will most likely see Delima Oil products on their supermarket shelves this year.

"In Myanmar we are selling our palm-oil based cooking oil, margarine and shortening and are now in final discussion to set up a bottling and packaging plant there," he said adding that the plant is a joint-venture with a local party and will cost Delima Oil about RM10 million.

He said the company is in talks with potential customers or distributors for its products in the Philippines, and may start with the Southern Philippines, due to its proximity to Sabah.

"If all goes well and our products are well accepted here, like in Myanmar we will build our own packaging and bottling plant. The next step then, is to have our own refinery on a bigger scale," he said adding that such a strategy will be emulated in Vietnam.

Delima Oil is also in the midst of negotiating with a party in Abu Dhabi to market its cooking oil in over 90 supermarket outlets there.

Back home in Malaysia, Delima Oil is adding new machinery to its refining and packaging plant in Pasir Gudang, costing about RM20 million which will cater to the production of more products, especially the high-end ones. The new extension of the plant is expected to be ready by June this year.

"Our products are doing well in Malaysia, especially our Saji cooking oil which has over 30 per cent share of the olein segment while our margarine, Seri Pelangi holds more than 50 per cent market share. But now, we want to concentrate on high-end products as they give better margins and that means, there will be better quality margarines and other cooking oils like high grade blended oil, sunflower oil and canola oil," said Zakaria.

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