EG Industries plans to double revenue to RM2bil

GEORGE TOWN: EG Industries Bhd plans to double its annual revenue to RM2bil in two years, driven by the group’s expanding box-built business that manufactures products used in wearable devices and beacons.

The segment currently contributes about 5% of group annual sales. EG Industries executive chairman Terence Tea Yeok Kian said this would increase to 30% by 2018.

“We plan to reduce the contribution of our hard disk drive printed circuit board assembly device business to about 60% next year from 70% presently,” Tea said after the launch of the company’s new office at SunTech@Penang Cybercity in Bayan Baru.

Also present were Multimedia Development Corp vice-president Michael Warren, EG Industries chief executive officer Alex Kang and chief technical officer Mogan Karupiah.

EG Industries made a net profit of RM1.8mil on revenue of RM993.7mil for the year ended June 30.

Tea said the group also planned to grow its plastic injection and distribution of active and passive electronic component businesses, which currently generate about 8% and 28% of group revenue, respectively.

Kang, meanwhile, said the group had recently secured about RM60mil worth of orders for its box-built business segment.

“These orders are for wearable devices and beacons which we have designed for European companies at SunTech@Penang Cybercity.

“They will be manufactured at our plant in Sungai Petani.

“The wearable devices are to measure the amount of calories being burnt while the user is exercising, while the beacons are used in hypermarkets to facilitate electronic payment at point-of-sale counters.

“These orders will be delivered by the end of the year,” said Kang.

Next year, Kang said the group was hoping to obtain a licence from Oxylane, a French consumer electronics company, to manufacture their consumer electronic products under its various brand names.