Background of Food and Beverages Industry
Nowadays, food and beverage industry is booming in Malaysia. By reflecting the multi-cultures in Malaysia which included Malay, Chinese and Indian out Food industry in Malaysia has high range of processed food. Therefore, Malaysia’s food and beverage market is getting more complicated and both local and international market are experience intense competition. The industry must understand that the customers are looking for reliability and safety. The manufacturing process, quality control and risk management of raw materials are become more important; therefore a single misfortune could exactly put the company’s presence in crisis. Simultaneously, the demand of customer has become higher, then the customer want the company deliver the products in shortest time. Growth of economic can affect the expansion of the global market. It can provide the inventive food company with infinite business opportunities. (AbeamConsulting 2013)
In 2010, Malaysian Food Industry contributed approximately 10% of manufacturing output. For example, in 69 projects, the company has fascinated RM1.972 billion. Malaysia has huge and growing food retail market, with the current total retail sales of social consumer goods is estimated at $ 11 billion in food and beverages. Food and beverages sector are expected to growth 10% per year over the next three to five years. In Malaysia, a lot of household preferred to by convenient food, such as meal replacement products, frozen processed food, soup, canned foods, milk product and others. Therefore, the packaged food markets are expected to growth by 4.5% in year 2014. (Market Watch 2012)
Consequently, many investors are concerned in food and beverages industry. There are some financial ratio analysis about Kawan Food Berhad (KFB) and Oriental Food Industries Holding Berhad (OFIH); they are focus on different areas. KFB deals in frozen foods, and OFIH is in the snack food. These two companies have issue their own stock in Malaysia and occur in Bursa Malaysia.
Background of Kawan Food Berhad
Kawan Food Berhad (KFB) is an investment holding. KFB consists of several subsidiaries; they are Kawan, KG pastry, Veat, Passion Bake, and Kayangan Manisan. Kawan Food does everything from manufacturing, to packaging, to sales and up until distribution; it is to ensure the freshness and quality of the products. Its products are made without preservative and Tran’s fatty acid, so KFB has very success in international business. The customers around the world are preferred flatbreads, curries and pastries and KFB has successfully maintained its unique competitive edge. In order to maintain its unique competitive edge, KFB also adopt quick-freezing technology which is also adopted by others industries that have higher margin products. To provide the highest level of freshness to the KFB’s customer, quick freezing is needed. Meanwhile, KFB is the biggest manufacturer of frozen Asian food delicacies and KFB is a leading exporter in Malaysia. For example, they have been successfully adopting the fully automated machine that created by the European technology to produce Roti Paratha that met KFB development team’s specific requirement. (Kawan Food Behad n.a.)
Markets of KFB are over the world, includes Rest of Asia, Europe, North America, Oceania and Africa. KFB has also entered into India market in year 2011, KFB want to develop some new product in these familiar markets. Additionally, KFB continued investment and initiative into new market. KFB improve the quality of supplying, convenient and affordable frozen food to the customers to make the product worldwide. Besides that, the company’s goal is constantly progress in innovation, technology and R&D to achieve customer satisfaction and loyalty. (Kawan Food Behad n.a.)
Financial Highlights of KFB
Background of Oriental Food Industries Holding Berhad
Oriental Food Industries Holding...
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Kawan Food Berhad
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