Dec 6 (Bernama) -- Hai-O Enterprise Bhd, which made it to the Forbes Asia's fourth annual Best Under A Billion List for the second consecutive year, sees the recognition as a faster way to expand in Asia-Pacific markets.
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The company, which specialises in herbal products, is set to expand its multi-level marketing business to Indonesia, China and Singapore next year and is confident of seeing contributions in one to two years.
Hai-O group managing director Tan Kai Hee said the company was optimistic that its products will be well received in these markets, especially in the fast-growing markets of Indonesia and China.
"For Hai-O, we act as an importer. But after receiving this award, we feel that this is the right time for us to venture into the China, Indonesia and Singapore markets seriously," he told Bernama in Singapore recently.
Hai-O, which already has companies in Indonesia, Singapore and Hong Kong, is ready to enter these markets and the immediate focus will be the Indonesian market as it has already registered its products there.
Tan said Hai-O was expanding to overseas markets as a move to enlarge its business as a manufacturer of herbal products, given that Malaysia also has well-known health products such as Tongkat Ali and Kacip Fatimah.
Earlier, Tan was in Singapore to receive the Forbes Asia's Best Under A Billion List award. Forbes is a US-based publisher of the leading Asian business magazine.
Hai-O is one of the 13 Malaysian companies in the list that recorded consistent growth for both sales and profits over three years, with a sales revenue of less than US$1 billion in the Asia-Pacific region.
Tan said the first recognition from Forbes had benefited Hai-O's business after its net profit more than doubled to RM49.118 million for the financial year ended April 30, 2008, from RM22.113 million a year ago.
Despite the current global economic downturn, he said Hai-O considered the tough period as an opportunity to further expand its business, both locally and abroad.
With more than RM60 million cash in hand and being debt-free, Hai-O was looking for opportunities either via joint ventures or acquiring a stake in underperforming companies, Tan said.
"Under the current economic situation, we look it as an opportunity rather than a disaster. We look for joint ventures or may acquire some shares in companies to make use of their markets and staff," he said.
If there are opportunities, Tan said Hai-O preferred to acquire companies that are similar to its business like medical, herbal and health products.
"Everything must relate to our core business so that it is easier for us to consolidate. There are quite a number of good companies, only that they are short of funds," he said.
Tan said Hai-O was opening its door for further expansion, adding that its recent joint venture with Beijing Tong Ren Tang Technologies has proven to be a success.
Asked whether Hai-O was experiencing a drop in sales due to the current economic slowdown, Tan said one or two subsidiaries did experience a drop in sales but he added that the company as a whole remained stable, supported by its multi-level marketing business.
"We see more unemployed people coming in and the base and turnover are enlarging. We now has 70,000 members, with 20 percent of them being active," he said.
With Hai-O's financially sound foundation due to its strong earnings and cash flow, Tan said Hai-O remained confident that its business will keep on growing even during the economic downturn.