GEORGE TOWN: Pensonic Holdings Bhd aims to grow its overseas original design manufacturing (ODM) and smart device accessory business over the next two years.
Group founder and executive chairman Datuk Seri Chew Weng Khak told StarBiz that Pensonic was now in negotiation with several international brands to do ODM for large home appliance products such as refrigerators and washing machines.
This year Pensonic is celebrating the 50th anniversary of its mother company, Keat Radio, and the the 33rd anniversary of Pensonic.
“We are currently providing ODM service to two renowned international household product brands, which contribute about 30% of the group’s 2015 revenue ended May.
“We are also getting ready to ship out 5,000 to 6,000 units of fonebuds, a smartphone companion device, to customers in Hong Kong, Taiwan, Thailand, and Japan for trial runs. The second generation of fonebuds would be out in next January” he said.
Chew added the fonebuds were now currently available for sale as one of the duty-free items in all Dragon Air flights to and from Hong Kong.
“For fonebuds, the business strategy is to offer our international partners co-ownership of our brand through the concept of shared innovation when they meet the targeted sales,” Chew added.
In Malaysia, the group was now focusing on developing a new range of built-in hobs and ovens for housing projects in the country.
“We now are working with developers to provide the built-in kitchen appliances for their condominium projects in Penang and Perak,” Chew said.
On the weakened ringgit and its impact, Chew said about 30% of the group’s sales were in US currency.
“About 70% of the raw materials used are imported in the US currency.
“We are now gradually adjusting our selling price for the products sold in the country, which should have a positive impact on our second quarter results ending in November.
“The cost cutting measures for unnecessary expenses should also be reflected in the second quarter results,” Chew said, adding that the group had just moved into a new RM50mil facility in Bukit Minyak, which houses the company’s design and development laboratories and a warehouse.