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Opportunities during the pandemic

Opportunities during the pandemic
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DPI Holdings Bhd is cautiously optimistic of continuing on its double-digit growth trajectory as it leverages on the opportunities from disruptions brought about by the Covid-19 pandemic, says its Deputy Managing Director Adam Chai.

The Tangkak, Johor-based listed aerosol spray paint manufacturer has seen stellar financial results, with its net profit jumping 85 per cent year-on-year (y-o-y) to RM9.8 million, while revenue rose 37.6 per cent to RM47.8 million for the nine months ended Feb 28, 2021.

“The pandemic has caused disruptions in global supply chains, namely, shipment delays and production uncertainties. As a result, there is increasing preference from international brand owners in Asia Pacific to choose alternative supply chain channels. These products used to be largely manufactured in Europe and China. Now, they are seeking options to obtain supply from Malaysia,” he told StarBizWeek recently.

In its 2020 Annual Report, DPI stated that it was establishing a range of cleaning and sanitisation products and has started producing anti-bacterial disinfectant spray. Adam explained that the group is looking to increase its sanitisation product range, although it has not started contributing significantly to its margins.

Regarding the lockdowns and movement restrictions, Adam says business operations have been affected in terms of on-site marketing activities such as roadshows, exhibitions and events having to be put on hold or postponed, while the construction of its new factory has also slowed down.

Still, he pointed out that the Covid-19 pandemic had also presented an opportunity for DPI to relook at how it needed to digitise and automate operations to improve efficiencies.

The group has 142 employees, and half of them have served for 20 to 30 years.

“With the wealth of experience, we have heaps of data that can be organised to transform how we can work and communicate better. For digitisation, internally we have adopted Google Workspace, HR Management System and we are looking at more (systems).

“Externally, our marketing activities are more active online through social media platforms and we have established an e-commerce presence through Shopee and Alibaba platforms.”

On June 4, DPI proposed a one-for-two bonus issue and the exercise is expected to be completed in the third quarter of 2021. – The Health

Tags: BusinessCovid-19DPILocal NewsPandemicThe Health AugusttheHealth
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