AUSTRALIA-BASED Waterco Ltd expects local manufacturing and distribution unit, Waterco (Far East) Sdn Bhd, to double its annual wholesale production value from RM50mil currently to RM100mil in three to five years.
The anticipated rise would be in tandem with the group's overall growth projection during the period, its managing director Goh Soon Sinn said after the official launch of Waterco's latest point-of-entry (POE) water filter system in Kuala Lumpur last Wednesday.
Waterco is a public listed company in Australia, involved in the manufacture and distribution of water treatment equipment.
The group reported a turnover of AS$70mil (RM175mil) for the year ended June 30, 2003. It expects revenue to grow to AS$80mil (RM200mil) for the current year ending June 30, 2004, backed by acquisitions of smaller competitors and enhanced marketing efforts globally.
Waterco had earlier this year acquired British-based Lacron Ltd, a move the company hopes would fast-track its entry into the lucrative European commercial water-conditioning market.
Goh said the acquisition would contribute towards ensuring the group's aim of doubling its total sales revenue within the next three to five years.
The Malaysian manufacturing operation is expected to see substantial growth in output over the next few years, backed by increasing demand from overseas customers,'' Goh said.
To cope with the anticipated rise in demand, the group has allocated RM10mil for the Malaysian operation to purchase six acres and build a new manufacturing plant to consolidate the two smaller existing facilities there.
Currently, Waterco's Malaysian operation accounts for about 25% of total group revenue. The made-in-Malaysia filters are currently being sold in 26 countries, mainly through the group's sales and marketing division headquartered in Australia.
Goh said Waterco's water filter is currently the best selling brand in the local market, with more than 50% market share.
The newly launched W300 MK11 POE system is primarily aimed at residential buyers and carries a price tag of around RM2,000 per unit.
Goh said it would be sold in neighbouring markets like Thailand and Indonesia.
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