KUALA LUMPUR: Natural Bio Resources Bhd aims to grow its local market share by targeting niche segments, according to executive director Clement Toh.
At the moment, 72% of our consumers are Malays. There are a lot of niche markets, like the Chinese community and the small food and beverage outlets, which we can target, he said.
Tthe company would grow its business in those areas through increased marketing and branding efforts as well as by introducing new products, Toh told reporters after the company's listing yesterday.
The company has 16 key dealers and a strong distribution network of wholesalers, hypermarkets and supermarkets nationwide.
Apart from Malaysia, Natural Bio also expects to make its products available in Singapore and Taiwan soon.
We are in the midst of negotiating with a distributor in Singapore and expect to penetrate this market by the second quarter, he said, adding that the foray into Taiwan would be within two years.
The company's ready-to-drink beverages are currently exported to Brunei and the United Arab Emirates (UAE).
Its products are marketed through brands such as Power Root, Ali Cafe, Per'l Cafe and Oligo Cafe.
At present, overseas business contributes about 8% to group revenue.
Toh said the company was bullish of its overseas prospects given that it currently exported only ready-to-drink coffee and tea products.
We haven't started with our energy drinks yet, he said, adding that the company expected tremendous growth for them in the UAE market.
He added that the company planned to allocate RM28mil to RM30mil for advertising and promotional activities this year.
Natural Bio's shares made its debut on Bursa Malaysia's second board with a 12 sen premium over its initial public offer price of RM1.48. The stock gained 19 sen, or 13%, to RM1.67 on turnover of 37.8 million shares.