Kawan Food Bhd, Shah Alam, Malaysia, which makes frozen foods under brands such as Kawan, Veat, KG Pastry, Passion Bake and Kayangan Manisan, plans to consolidate its two manufacturing facilities there under one roof in two years.
"We are now running at near full capacity," said CEO Jon Fang Nee Choong. "We hope to put the necessary plans in place and begin construction early next year," he told SunBiz recently. Kawan currently has two plants in Shah Alam and one in China.
The company recently bought a piece of land at the Selangor Halal Hub in Pulau Indah, Selangor for the purpose. "If a good opportunity arises, we may dispose of our present two factories (in Shah Alam)," Jon Fang said. For the six months ended June 30, 2012, Kawan Food saw its net profit rise 3% to RM 6.0 millionfrom RM 5.8 million a year ago, mainly due to higher sales and favorable ringgit against the US dollar.
Kawan, whose main products are frozen chapattis and roti parathas, both variations of Indian flatbreads, aims to sell at least 10% more -- 165 million pieces of chapattis and parathas -- this year, compared to 150 million pieces in 2011. It already holds a 50% share of the Malaysian market. The same flatbread items are exported to more than 25 countries, most recently India, with six types of frozen parathas and chapattis sold there now. Still, its largest export market is North America.
Jon Fang also said that Kawan, which is the world's first manufacturer of frozen parathas using an automation system, emphasises on research and development to improve the quality of existing products as well as creating new products. "We have to stay ahead because there are many competitors not only in Malaysia but also in India and Pakistan (where Kawan Food has a presence). R&D is very important for companies like us to continuously improve the quality and taste of our products."
