Kuala Lumpur, 7 January – New entrant to the ACE Market, DPI Holdings Berhad (DPI, the Group, BURSA: DPIH/0205) is looking to develop a new range of aerosol paint products to meet the requirements of different markets.
The new range of products could potentially include new colours, new chemical composition, or new products to meet unique purposes as per demand from different countries.
From the IPO proceeds, RM1.3 million is set aside for the development of new products.
Besides this, the Group has recently acquired a new fully automated aerosol-filling machine to be used at the existing plant, which is part of the Group’s plan to fully automate the existing three production lines.
On top of that, the Group will construct a new factory with four new fully automated aerosol-filling lines, which will commence by the first half of 2020. The new factory and upgraded lines would double the annual production capacity to 20.0 million cans, from 9.7 million cans currently.
Alongside the higher capacity, the Group will also boost advertising and marketing activities, with more below-the-line initiatives such as participating in more trade fairs, as well as raising online presence through enhancing the company website, and increasing internet marketing and advertisements.
Of the total IPO proceeds of RM31.6 million raised, the remaining RM23.5 million would be utilised for capital expenditure towards expansion of production capacity and RM3.0 million for extension of consumer reach through marketing and advertising activities.
Executive Chairman and Managing Director of DPI Holdings Berhad Peter Chai said that : “Going forward, we are looking towards increasing our range of products, with either the introduction of new colours or complementary products to aerosol paints. The new products will be geared towards entering new markets.”
“We are doing this to accommodate the differing demands to keep up with requirements in each country. With this, we hope to position ourselves to capture this larger market potential.”