Yee Lee Corp Bhd, which has captured one-third of the local brand cooking oil market, is focusing on penetrating the Middle East and the Commonwealth of Independent States for its wide range of products.
Its chairman Datuk Dr Mohamed Ishak Mohamad Ariff said that Yee Lee had entered the Yemen and Lithuanian markets, which would be used as a launching pad to tap markets in other parts of the regions.
Our palm oil price is cheaper than other oils. The hot weather and the price of our products give us the edge in these 2 markets, he said after the company AGM in Ipoh last Monday.
He said the company had also received many enquires from the 2 regions, including Iraq.
For 2002, Yee Lee's pre-tax profit decreased to RM6.74mil from RM8.35mil previously. However, revenue increased by 15% to RM265.01mil.
Ishak said Yee Lee would continue to focus on its core business with special attention on aerosol cans manufacturing by adopting more effective marketing strategies to enhance profitability.
Such measures included relaunching campaigns for existing brands such as Red Eagle, Vesawit and Vecom, new labels and new design of bottles, enhancement of operational efficiency, distribution network and better cost control.
Ishak also said that due to intense price competition among cooking oil manufacturers and entry of new players, the effect of drastic increases in crude palm oil prices could not be compensated by a proportional increase in the company's final products.
He said the Malayan Edible Oil Manufacturers' Association was still awaiting the government's decision on its proposal to remove the ceiling price of palm-based cooking oil to enable them to fix it according to market level. Bernama