Texchem invests RM74mil to boost performance
Konishi says the group also needs to diversify into aquaculture
GEORGE TOWN: Texchem Resources Bhd plans to spend RM74mil for existing and new businesses this year to boost the company’s performance.
The planned investments should position the company on a stronger footing after poor seafood landing caused its food division business to decline in the financial year ended Dec 31, 2016 (FY16).
Group executive chairman Tan Sri Fumihiko Konishi told StarBiz that about RM30mil would be for the company’s aquaculture business under the food division.
“We plan to set up a RM20mil hybrid garoupa farm in Vietnam, near the Mekong Delta area. The other RM10mil is for expanding the barramundi farm in Labutta, Myannmar,” Konishi added.
Additional investment will be needed in the aquaculture business because the worldwide seafood supply situation has contracted due to poor landing.
“We have to diversify into aquaculture, as it is not possible to rely on natural catch seafood to move on,” he added.
In 2003, Texchem diversified into the softshell crab business in Myeik City, Myannmar.
“We are now the largest soft-shell crab producer in the world, producing 1,000 tonnes in 2016.
“In 2017, the target is to produce 1,200 tonnes.
“We started another soft-shell crab facility in Labutta in 2015, which was harvested in 2016,” he added.
On its restaurant division, Texchem would invest RM27mil to expand the Sushi King, Yoshinoya, and Hanamaru outlets.
“We will invest RM12mil to increase the number of Sushi King outlets to 130 this year from 111. Of the 19 new outlets, two have been launched, leaving 17 to be opened for the rest of the year.
“Of the 17, six will be Sushi King Express outlets, and 11 Sushi King Shophouse outlets. Five of these 17 outlets will be in Brunei,” he added.
Texchem will invest RM15mil to set up 20 more Yoshinoya and Hanamaru outlets in shopping malls nationwide.
The company currently has 11 Yoshinoya and nine Hanamaru outlets.
“We will spend RM7mil for seven more Doutor Coffee outlets, from three presently, to be located in the Klang Valley and Johor Baru. We are investing RM10mil to expand Kokubu Food Logistic Malaysia Sdn Bhd, a joint-venture business which started last September.
“Our joint-venture partner, Kokubu Food, is a 305-year-old company with a yearly revenue of US$15bil per annum.
“The joint-venture, in which we hold a 51% stake, supplies imported chilled and cooked food to restaurants and supermarkets in the country.
“In 2018, another RM10mil will be invested to expand the business,” he said.
On Otafuku Sauce Malaysia Sdn Bhd, Konishi said the joint-venture company was in the process of obtaining a halal-food certification.
“Otafuku, in which we hold a 49% stake, is involved in making sauces for food,” he pointed out.
Texchem planned to enlarge the industrial division by growing the Japanese rice business in Vietnam.
“We are importing Japanese rice into Malaysia. The rice will be branded under ’Sushi King’,” he said.
The industrial division also trades in plastic and chemical products.