Daibochi to commercialise flexible packaging solutions
PETALING JAYA: Flexible packaging manufacturer Daibochi Bhd is aiming to commercialise several new sustainable flexible packaging solutions for its multinational consumer brands clientele within the current financial year ending July 31, 2020 (FY20).
According to a press release yesterday, Daibochi is currently undergoing trials with world-renowned companies in the consumer food and beverage (F&B) segment.
These trials include the development of new recyclable mono-layered material flexible packaging for the F&B segment, involving the clientele’s existing consumer products in high growth markets in Southeast Asia.
Apart from its multinational clientele, Daibochi targets to commercialise a sustainable flexible packaging for a Malaysian beverage client in the first quarter of FY20, following the completion of trials.
The new packaging innovations result from Daibochi’s collaboration with parent company Scientex Bhd, towards supporting the sustainability pledges of leading F&B brands through the development of fully recyclable flexible packaging that are in line with a circular economy strategy.
Daibochi managing director Thomas Lim said the new in-house developed mono-layered flexible packaging is fully recyclable and uses a homogenous plastic material, which replaces the commonly used multi-layered packaging comprising multiple materials that make it non-recyclable.
“This fully recyclable packaging maintains the high-performance barrier standards required of F&B products for consumer shelves.
“Seeing that the ongoing trials with key clients are progressing smoothly, we target commercial production in the next twelve months.
“We also look forward to roll out more innovations to our regional clientele for their brands across the South-east Asian markets, which will in turn expand our market presence and enhance our growth prospects regionally,” he said in a press release yesterday.
In addition to the F&B segment, Daibochi is also in various stages of collaboration with its clients in the fast moving consumer goods segment to bring more innovations to a broader range of flexible packaging forms.
Daibochi registered a minor loss of Rm0.3mil for the seventh quarter of FY19 due to one-off inventories writedown that are part of the ongoing streamlining and efficiency enhancements, as well as merger and acquisition costs for the acquisition of Mega Printing & Packaging.
This was on the back of the group’s all-time high quarterly revenue of Rm123.3mil during the quarter, on the back of increasing flexible packaging sales in Malaysia and regional markets.
Due to the change in financial year-end from December to July, in line with the policy of Daibochi’s parent company Scientex, there are no comparable results.
“We have adopted a just-in-time model and are in the process of integrating our operations to the group’s SAP system, which would significantly boost operating efficiency. “With these improvements in place, we are now in a stronger position to deliver greater performance in FY20,” Lim said.