Iconic Worldwide Bhd managing director Datuk Tan Kean Tet said the group expects the demand for PPE will continue to be sustainable even after the recovery of Covid-19 pandemic due to the prevailing public awareness on the need for self-protection and hygienic practices.
KUALA LUMPUR: Iconic Worldwide Bhd is diversifying its existing core businesses to include manufacturing and trading of personal protective equipment (PPE) which includes disposable face masks and gloves, with a total investment of RM155.51 million.
In a statement today, the company plans to install and commission glove and disposable face mask production lines which are expected to yield a minimum production capacity of approximately 3.1 billion pieces of gloves per annum and approximately 222.7 million pieces of face masks per annum.
The RM155.51 million investment will be used for land acquisition, construction of new facility, installation and commission of production lines, other equipment and working capital.
This business diversification plan will be funded via a combination of internally generated funds, bank borrowings, and/or fund-raising exercise.
Currently, Iconic is involved in the development and sale of commercial and residential properties and provision of tourism and other related services such as hospitality management.
For the financial year ended March 31, 2020, property development and tourism contributed 67.2 per cent and 30.4 per cent to its revenue respectively.
Iconic managing director Datuk Tan Kean Tet said the group expects the demand for PPE will continue to be sustainable even after the recovery of Covid-19 pandemic due to the prevailing public awareness on the need for self-protection and hygienic practices.
“Therefore, it is timely to capture the rising demand for the products offerings under the PPE business. We will also be targeting countries with high Covid-19 infection rates such as European and the US as principal export markets for the PPE Business,” he said.
He said the diversification will provide an alternative income stream to the group, which will reduce its business concentration risk and mitigate its reliance on the existing core businesses and shall also provide an opportunity for the group to grow its revenue and enhance its business portfolio to drive an improved financial performance.
“We intend to manufacture and trade latex and nitrile gloves for household, industrial and medical use, as well as 2 main types of disposable face masks namely three-ply disposable medical face mask and N95 disposable medical face mask.
“We are also in the midst of preparing the necessary applications and liaising with local authorities to obtain the relevant regulatory approval for the PPE Business in Malaysia,” said Tan.
The PPE business will be spearheaded by Tan and the group’s executive director Tan Cho Chia, supported by the existing management team.
Additionally, the Group has appointed Nexus TAC Sdn Bhd as the consultant for the PPE business to provide guidance and advise the management team of the group with regards to matters involving the manufacturing of face masks and application for International Organization for Standardization (ISO), CE endorsement and FDA certification.