KUALA LUMPUR: Poultry egg and meat producer QL RESOURCES BHD plans to expand into the convenience store business by becoming a master franchisee of FamilyMart, the world’s second largest convenience store chain after 7-Eleven.
The company, which also makes surimi (fish paste), told Bursa Malaysia that its unit Maxincome Resources Sdn Bhd had signed a 20-year exclusive area franchise agreement (AFA) with Tokyo-listed FamilyMart Co Ltd to develop and operate FamilyMart outlets in the country.
QL aims to have 300 FamilyMart stores in Malaysia in five years, with the first to be opened by end of this year.
“FamilyMart, known for its wide range of quality, ready-to-eat food and beverage offerings besides other convenience items, provides a strategic downstream expansion of QL’s existing food manufacturing and distribution business,” the company said.
FamilyMart Co Ltd has more than 17,000 stores in seven countries, including China, Indonesia and Thailand,
QL said the AFA was not expected to have a significant impact on its financial performance for the current financial year ending March 31, 2017.
“The business is expected to have long-gestation period and contribute positively to shareholders’ value in the medium and long term,” it said.
QL shares gained 4 sen to RM4.44 on Monday, with 824,400 shares traded.