Our Group plans to undertake a number of expansion strategies in the near future. In addition to our proposed plans for future R&D as set out in Section 5.10 above, these strategies also include geographical expansion, product branding and horizontal expansion. Horizontal expansion refers to our Group’s plan in staying focused in our core competency of the current business model, but expand horizontally by introducing more product lines, such as the introduction of a number of new products as set out above. Some of these plans are highlighted below:

Market Expansion

We plan to expand into export markets by concentrating on penetrating the frozen halal food market, specifically halal DimSum category, in Indonesia, China and countries in Middle East continent. Indonesia and Middle East countries, such as Kuwait and United Arab Emirates have the largest Muslim populations in the world and represent an enormous market potential for halal products.

Our first expansion shall be Indonesia, a Muslim country. The acceptance of halal food from our Group will be well received by the population at large. It is estimated that Indonesia has more than 30 million people who can be considered to belong in the middle and upper class category and the size of this segment of the population is even larger than the entire population of Malaysia. This is a large potential for us to expand our business even if we only target 5% of the population within this segment.

Consumers in Middle East countries also experiencing a shift towards preference for Asian cuisine, especially Chinese traditional cuisine, and there is a vacuum in the halal frozen food category as many retail outlets in the countries are looking to stock up their products to cater for the changing taste but they are experiencing the lack of manufacturer. We intend to explore the possibilities in these countries based on the large potential they represent.

Product Branding

We plan to invest in product branding. Product branding, such as our Sedap Kaw Kaw and DimSum Boi, is important as it provides manufacturers like us with control over our products through a creation of a bond between our customers and the products via the brand. We have allocated some funds for advertising and promotion (A&P) of our products in order to further build confidence and brand recognition among the local as well as our overseas customers and distributors. There are a number of marketing programmes which are in the planning stage such as product branding, advertisements and promotions.

Investment into New Technology

We intend to continue to invest in new technology in our new manufacturing factory in order to further improve our production process. Full integration of the production process of our frozen food and Ready to Eat (RTE) products will reduce human intervention, thus reducing the risk of contamination and increase productivity. In order to achieve full automation of the production process, we will undertake further research into machineries an in consultation with experts in food machineries technology before it can be introduced commercially.