Download PDF - ETP - Pemandu
Download PDF - ETP - Pemandu
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<strong>ETP</strong> ANNUAL REPORT 2011<br />
EPP 15<br />
Malaysia is home to a number of local home appliance companies<br />
that have manufacturing expertise and a local market presence.<br />
Pensonic, the largest of them, plans to expand by merging or<br />
acquiring smaller scale home appliance companies to build a<br />
strong international distribution network.<br />
This will enable the company to exploit the lucrative ASEAN and<br />
Middle East markets. The increase in sales is expected to have a<br />
positive impact on the SMEs that are part of the supply chain.<br />
Opportunities in original equipment manufacturing (OEM) and<br />
original design manufacturing (ODM) will also be explored as<br />
top Asian and European electrical appliance brands are actively<br />
Exhibit 7.6<br />
Sovereign<br />
fund partners<br />
Building an Electrical Home Appliance<br />
Manufacturing Hub and International<br />
Distribution Network<br />
Other domestic<br />
companies<br />
Moving Forward<br />
Pensonic, via mergers and/or acquisitions, will build a consortium with a strong<br />
international distribution network. It will also put in place a strong human resources<br />
development programme and ensure that the local SME suppliers are able to meet the<br />
expected demand. The proposed consortium is expected to hit annual sales of RM2.2<br />
billion and to source 50 per cent of its requirements locally by 2020.<br />
134<br />
Build a consortium company with<br />
an international distribution network<br />
+<br />
ASEAN &<br />
Middle East<br />
looking for outsourcing partners outside China. One other key<br />
initiative of this EPP is the setting up of a manufacturing hub to<br />
host the entire supply chain. This will help to support the surge in<br />
sales to both the local and new international markets.<br />
Achievements<br />
MIDA has put together an assistance package for Pensonic and<br />
the company is currently carrying out fundraising activities with<br />
sovereign fund partners. Land acquisition and hiring of staff are<br />
underway as part of the expansion exercise which will result in a<br />
manufacturing hub, international distribution network of electrical<br />
home appliances (EHA) and an international distribution network.<br />
Build manufacturing hub to provide base<br />
for the entire supply chain<br />
Consortium company<br />
Outsource<br />
Local supply chain<br />
Global EHA OEMs<br />
& ODMs
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