PENANG: KBB Resources Bhd's diversification plan includes venturing into the tapioca plantation business in the near future, executive director Kenny Ang said.
The group was currently looking for suitable tapioca plantations in Indonesia and Cambodia to start the business, he told StarBiz.
“We plan to sell the tapioca to manufacturers of biofuel such as ethanol, which is now popular due to rising oil prices. We can also use tapioca as raw material for our bee hoon products,” he said.
Ang said that in the US, China, and Brazil, it was now the trend to use corn for making biofuel.
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Kenny Ang |
“Sago starch is a key ingredient for our bee hoon products and the plant will help KBB reduce its expenditure on raw materials.''
Ang said the company started making sago starch about five months ago in Igan, Sarawak. It invested RM4mil in the Igan facility.
Ang said KBB had also recently ventured into the manufacture of dry noodles that did not contain preservatives.
“The noodles are targeted at hawkers and restaurants. The country consumes about RM200mil worth of fresh and dry noodles a year. It's a big market that can still accommodate new players,” he said.
Ang said the group presently commanded about 55% of the country's bee hoon market.
“We plan to increase our market share to 75% by acquiring our competitors,” he said, adding that the group’s market share was about 30% two years ago.
Source : http://biz.thestar.com.my/news/story.asp?file=/2007/6/14/business/18008418&sec=business
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