BABY diapers manufacturer JM Permata Sdn Bhd plans to inject fresh capital for the groups consolidation and diversification programme.
The group, an original equipment manufacturer, plans to align with some venture capitalists before getting listed in two years, said group managing director Johari Maarof.
We will be meeting them later this month, he told StarBiz in Klang on Thursday.
SMI Phoenix Award-winning JM Permata has emerged strongly from its financial doldrums in 1998 to record a consistent growth of 15% annually for the past five years. It chalked a mere RM8mil in revenue in 1998.
The group, which has two wholly-owned subsidiaries - Consobiz Ventures Sdn Bhd and DTI Manufacturing Sdn Bhd - has targeted RM100mil revenue for the year ending Dec 31, 2005 from RM70mil this year.
JM Permata mainly supplies its diapers to Pureen, apart from catering to a number of retail giants.
Johari said the group planned to go into adult diapers, sanitary napkin and wet wipe products after its proposed listing. These (products) require big investment, especially the adult diapers, he said.
He said that by going public, the group would be able to expand its export operations, which now accounted for 40% of its output.
JM Permata currently exports to 12 countries including South Africa, Australia, New Zealand, Indonesia, the Philippines and other Asean countries.
We are going in a big way, he said, adding that exports would account for half of its total output in two years.
Recalling the time of the downturn, Johari said the crisis was a blessing in disguise for JM Permata. It created stronger demand for competitively priced baby diapers, which are the mainstay of the JM group.
He said the group took its chance on the situation and expanded organically as well as through acquisitions and product range and fortified its marketing efforts.
He said the group emphasised on competitive pricing, good quality, consistent supply and good corporate citizenship.
Johari said JM Permata became competitive mainly because it had the right products and was ahead of the competition. We are among the early birds in the industry, he added.
JM Permata has a paid-up capital of RM4mil and its net tangible assets stood at RM12.7mil as at Dec 31, 2004.
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