leveraging on technology automation as well as entering new markets to bring the company to the next level of growth
The Johor-based company's MD Datuk Seri Lee Hock Seng is confident SCGM will grow exponentially with its focus on continuous expansion and investment to upgrade its assets and resources.
Looking to penetrate the New Zealand market. Also aim to export products to some East European countries and North Africa in the future. Pakistan and Cambodia also offer good opportunities.
Plan to increase its exports to India in November as well as to Myanmar, China, Hong Kong, US, Australia, Indonesia, Middle East and Portugal.
40% of the company's products are exported
The company has allocated RM3m-RM4m to acquire machinery to produce dual-coloured plastic packaging in a single production line,a first in the country.
Currently, the company's production lines consist of 33 automatic forming machines, 22 hydraulic die-cut machines and 6 extrusion machines.
As the use of plastic packaging for the food and beverages and healthcare industries grows, SCGM expects to become one of the largest suppliers of thermo-vacuum plastic packaging in Asia. According to industry research, the global packaging industry will experience substantial growth with total revenue to hit US$530b next year. This represents an increase of 24% over 2009 with plastic packaging being the largest segment of growth.
The Australian market also looks interesting for this sector. In mid-2012, Australia's Amcor Ltd, the world's largest packaging company, merged with Aperio Group, its Australian competitor, causing price distortions in the plastic packaging market. This has resulted in major F&B players in Australia seeking alternative plastic packaging suppliers with lower prices, This development could benefit SCGM and other players such as Daibochi Plastic and Packaging Industry Bhd and Tomypak Holdings Bhd.
Currently, 75% of the company's revenue is derived from the F&B industry while the remaining 25% is split into 15% from the medical and 10% from the electronic sector.
The company also has 5 extrusion lines to produce high-quality raw materials, including sheets and films for food and produce packaging, folding boxes, sealed trays and containers. Being able to manufacture its own raw materials enables the company to have more control over costs.
SCGM's clients include Munchy Food Industries Sdn Bhd, Hup Seng Perusahaan Makanan (M) Sdn Bhd, Hwa Tai Industries Bhd, Mondelez Malaysia Sdn Bhd (formerly known as Kraft Malaysia Sdn Bhd) and Gardenia Bakeries (KL) Sdn Bhd.
The clients are major manufacturers of consumer products and F&B in Malaysia and those companies have placed orders with SCGM for more than 2 decades.
The company has 49 designs registered with the Intellectual Property Office of Singapore and 58 designs registered with the Intellectual Property Corporation of Malaysia.
The rise and rise of SCGM
A shrewd businessman with a hands-on approach, Datuk Seri Lee Hock Seng set up SCGM Bhd with his 3 younger brothers in Kulai, Johor in 1984.
His company started producing food packaging in a shophouse with just 2 machines. Over the years, the company expanded to another 2 shophouses before it bought over a new Kulai factory measuring 3.64ha in 1992.
Since the, the company has moved on to supplying plastic packages to major food and beverage players in Malaysia and overseas.
SCGM was listed on Bursa Malaysia in 2008 at 78sen.
The quality of the company's products has enabled it to win the Enterprise 50 Awards; it is the sole company to have won the award for 9 consecutive years from 2001.