Takaso Resources in Kuantan land JV

PETALING JAYA: Condom maker Takaso Resources Bhd is diversifying into the property development and has entered into joint venture agreement (JVA) with SSPP Development Sdn Bhd to develop a land in Kuantan, Pahang.
Loss-making Takaso said the mixed development project could contribute some 25% or more in net profits to the group.
"The joint venture is in line with Takaso's strategy to grow and diversify its business operations to turn profitable with sustainable growth as well as to balance its income stream from non-traditional sources so as to lessen any future negative industry impact to its traditional business industry," TRB said in a filing with the stock exchange yesterday.
Takaso said its current business is very much dependent on global demand trends and economic outlook, whereas the construction and property development industry in Malaysia is consistently seen to be robust.
"The outlook of the property development industry is expected to have a direct positive impact on the joint venture. Taking into the account the outlook of the property development industry moving forward and the current efforts undertaken by the group, the board is of the view that the prospects of the group are expected to be positive in the future," it said.
The joint venture is expected to enhance the earnings of the group in future in view of the potential future profit contribution arising from the development of the land.