FURNITURE maker Homeritz Corp Bhd has its future expansion plans nicely mapped out, contingent on the global economy condition and buoyancy of the industry.
Homeritz has seen a pick-up in its earnings, thanks to the economic recovery in the West, as well as favourable currency exchange rates.
Speaking to StarBizWeek at the company’s headquarters in Muar, Johor, managing director Chua Fen Fatt says: “We will definitely expand if market conditions are good and continue improving.”
He says the company plans to invest in more new and advanced machinery, which will help increase productivity. “We are on the lookout for advanced machinery so we can increase productivity and still maintain the existing manpower,” he says.
Homeritz has allocated RM10mil to be spent over the next three years up till its financial year ending Aug 30, 2017 on plant and machinery with the aim of increasing its capacity.
It aims to automate some of its processes, and then move towards adding another factory. It currently has five factories with a total buildup area of 455,000 sq ft adjacent to its office at the Bukit Bakri Industrial Park in Muar.
It is not by chance that the company has a vacant piece of land which could be used to build another factory, that is, like the land its existing five factories sit on, just a stone’s throw away. Homeritz acquired the 7,851 sq ft soon after it listed on the Main Market of Bursa Malaysia in 2010.
The furniture player will progressively increase its productivity and capacity to meet its goal of posting RM180mil in annual turnover, hopefully from 2017 onwards.
Homeritz will reassess the market by its financial year end this August before deciding when to make its next move.
“We are very conservative, so we will do this expansion progressively,” says executive director Tee Hwee Ing.
Husband and wife team Chua and Tee has grown the company since inception to where it is now.
Founded in 1997, it specialises in upholstered home furniture comprising leather and fabric-based sofas, dining chairs and bed frames. It undertakes original design manufacturing (ODM) and original equipment manufacturing (OEM).
Tee says the company will continue to focus on the ODM part of the business, which contributes at least 85% to its revenue.
Source: The Star Online
