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Dunlopillo eyes more deals in hospitality sector(Business Times (Malaysia) Via Thomson Dialog NewsEdge) DUNLOPILLO (Malaysia) Sdn Bhd is turning its focus on the bedding business in the hospitality sector, hoping to see it contribute at least 10 per cent to the company's earnings. "We want to grow this segment of business. It is quite huge. Under the Ninth Malaysia Plan (9MP), there will be lot of projects coming up for us to grab," country manager Azmi Abdullah said in an interview in Subang Jaya. He added that there will be a lot of prospects in the hotel industry, hospitals, government agencies such as the army, the police, and even hostels for students. For instance, he said, the company is getting about RM5 million a year from its bedding contract with the army. "The contract is for three years and we expect to renew the deal in the second half of next year," he said. Dunlopillo Malaysia is a wholly-owned subsidiary of Dunlopillo Holdings Sdn Bhd, which in turn is a member of the Sime Darby Group. With the aggressive expansion of its business in the hospitality sector, Azmi said, the company expects its market share of bedding business to increase from the current range of 15-18 per cent. Currently ranked fourth largest bedding supplier in the country, Dunlopillo is eyeing to move up to second or third position. In the premium category, Dunlopillo's competitors include Slumberland of the UK and two US companies, KingKoil and Serta Seally. Azmi said the company expects to register sales growth of 20-25 per cent next year. Besides Dunlopillo brand-name products, the company also sells Ortherest and Sime Spring bedding products. Its best-selling brand is still Dunlopillo, accounting for 60-70 per cent of total revenue. The company's plant in Senawang, Negri Sembilang, produces 30,000-50,000 bedding products a year, of which 70 per cent are exported to Japan, South Korea, Hong Kong, China, the Philippines, Pakistan and Sri Lanka. Azmi said besides Malaysia, Dunlopillo Holdings handles marketing in 45 countries, with manufacturing and operation offices in China, Indonesia, Singapore, the United Arab Emirates (UAE) and Vietnam. To boost sales, he said, the company plans to set up more exclusive suites - dedicated stores that provide a full range of Dunlopillo products that customers can test. "We hope to set up about three or four such exclusive suites next year, and eventually cover the whole of Malaysia," Azmi said. Each outlet will cost from RM70,000 to RM100,000. There are already four exclusive suites in Kuala Lumpur, three in Johor Baru and two in Penang. "We may open similar stores in the East Coast, Ipoh, Malacca and probably another outlet in Kuala Lumpur," he said, adding that Dunlopillo plans to increase its dealers from 200 now to 300 by the end of next year. Copyright 2006 The New Straits Times Press (Malaysia) Berhad. Source: Financial Times Information Limited - Asia Intelligence Wire |