Caely plans tie-up with China lingerie firms

KUALA LUMPUR: Undergarments manufacturer Caely Holdings Bhd is in talks with several China-based lingerie companies to expand its earnings and business prospects.

The company said on Monday this was part of its strategy to expand its market share by working with lingerie  companies in the region.

Caely sells its products in Malaysia and it also exports to Europe, Canada, the US and other countries. The products are under its own brand and as well as other companies under the OEM basis.

The company, which is also involved in  property development and construction, had in financial year ended March 31, 2017 (FY17), recorded revenue of RM119.13mil. For the nine months ended Dec 31, 2017, its turnover is RM68.85mil.

Caely executive chairman Datin Fong Nyok Yoon said the collaboration with the China-based companies would enable it to penetrate  the vast Chinese market.

“The company foresees robust growth potential for the ladies’ undergarment industry. This is largely underpinned by the increasing number of fashion-centric women and their higher purchasing power in the region. 

“Besides targeting the growing affluent Chinese market, we also plan to leverage on Ni Hsin Resources Bhd’s presence in Italy, Europe, which is widely recognised as the fashion country of the world to market the lingerie products by Caely, bringing it to the next international level. We are also looking to acquire companies that have synergies with the businesses of Caely.”

Ni Hsin manufactures, sells and distributes of premium stainless-steel cookware products, convex mirrors and clad metal.

It emerged as Caely’s substantial shareholder on April 6, 2018 after acquiring a 7.26% stake in Caely over the past 12 months. It raised its stake to 13.62% as at April 16.

Fong said Caely was looking at working with Ni Hsin to market its Pentoli products. This could be done via Caely’s direct selling licenxe, various marketing channels and joint training efforts.

As for its property development and construction segments, she said the focus would remain on building affordable houses and more projects were under way.