By ZAZALI MUSA
BATU PAHAT: PCCS Group Bhd expects to chart double-digit growth for its labelling division despite the intense competition in the region.
“We see good growth prospects in the labelling business and the move will also help us to lessen our dependence on the apparel business,” executive chairman and group managing director Chan Choo Sing told StarBiz after the company AGM recently.
He said the demand for labels and stickers in Malaysia was good and there were not many big players in the country's labelling market.
The group's labelling factory, set up last August in Shah Alam, has recorded encouraging sales of between RM22.1mil and RM25.6mil.
The factory supplied labels and stickers to manufacturers of consumer goods known as the fast moving consumer goods (FMCG) segment.
Choo said the demand for labels and stickers was good as almost all non-consumable goods would either have labels or stickers on them.
“We are focusing on strengthening our FMCG segment in the country in the first few years before producing labels and stickers for apparel,” he said.
Executive director Cha Peng Koi said the company's factory, which produced labels and stickers for the Cambodian market and apparel exporters, started operations in the middle of this month.
The company had invested US$2.2mil (RM6.2mil) to set up the Mega Labels & Stickers (Cambodia) Co Ltd factory in the Phnom Penh Special Economic Zone.
“In Cambodia, our focus is on the labels and stickers for apparel as the FMCG business there is small,” said Cha.
He said it would take Cambodia many years to develop its FMCG segment.
For the financial year ended March 31, PCCS Group recorded net profit of RM3.18mil on revenue of RM359.96mil against RM3.77mil net loss on revenue of RM378.93mil a year earlier.