CYBERJAYA: DXN Holdings Bhd, a health-oriented and wellness manufacturer and direct-selling company, has opened manufacturing facilities in Morocco, Peru Mexico, and is expanding its India and China factories to accommodate the anticipated increase in sales.
DXN Holdings Bhd founder and executive chairman Datuk Lim Siow Jin highlighted the company’s manufacturing capabilities and supply chain readiness which aligns with its ongoing expansion plans.
“We are a company that controls the supply chain and distribution chain. Our main factory in Kedah has seen an increase in its workforce. So no problem with the manufacturing and supply chain.
“We also have new factories in Morocco, Peru, and Mexico. We are also expanding our factories in India and China. Basically we do not face any supply problem,” he told a media conference after its AGM today.
Looking ahead, DXN will diversify its product portfolio by introducing cosmetics products and ready-to-eat food items, expected to launch by the end of the year.
“We have a variety of products ready for launch, including cosmetics and ready-to-eat food. Cosmetics, the whole range of it. Ready-to-eat, such as mushroom burger, roti paratha. These will be reflected in the increase in sales,” he said.
He projected that the positive impacts of these expansion efforts, coupled with the introduction of new products, are likely to materialise as early as the following year.
“We can’t do it in a hurry. This year we are more preparatory,” Lim said.
He expressed confidence in achieving an annual growth rate of 20%, attributing it to the resilience of existing markets and the promising prospects in new markets such as Brazil, North Africa, Central Asia, and China.
“Two reasons why there will be no problem in sustaining our growth. (First) The existing markets (it is operating in) are still very robust and have good growth. Secondly, we have four new markets like Brazil, North Africa, Central Asia and China. 20% growth should not be a problem,” he said.
On market position, Lim stated the company’s dominance as the largest global producer in the world of Ganoderma as well as the potential to also become the leading Spirulina producer.
“We are the largest Ganoderma producer in the world. Not many companies are selling Ganoderma. We also sell Spirulina. In the future there is a high chance that we will be the largest producer of Spirulina also – in China now we are producing 1.5 tonnes a day – in a year we can produce about 300 tonnes. In a sense we do not have a real competitor,” he said.
Meanwhile, DXN’s membership base is experiencing a vigorous expansion with monthly additions reaching over a hundred thousand members.
“Our members are expanding aggressively. Every month we are getting hundreds over thousands of members. We are expanding in a robust, healthy way. In a year’s time, we can increase our members by 1.5 million to 2 million. So in this, we may not need an aggressive way to invite (new) members. It is quite robust enough,” he said.
He also noted the favourable reception of DXN’s products since its listing on Bursa Malaysia last May.
“Even the Middle East responded very well. North Africa also very well, with more than 30% increase in sales. Then in Latin America also more than 30%. So members are taking our listing very positively. We are also working for overseas members to be able to invest into the company,” he said.
