I-Berhad (7029-H) - Bursa Malaysia
I-Berhad (7029-H) - Bursa Malaysia
I-Berhad (7029-H) - Bursa Malaysia
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16<br />
CEO’s Review<br />
I am pleased to inform that since taking over<br />
the management of I-<strong>Berhad</strong> in August 1999,<br />
we have undertaken a two-pronged strategy of<br />
cost control and sales growth to turn the business around.<br />
When the new Management took over, the Company was mainly an Original Equipment Manufacturer (OEM)<br />
and its sales depended on the marketing strategy of its OEM customers. The Company’s ability to influence<br />
the demand for its products was limited. We thus embarked on a programme to market the product under<br />
our own brand name.<br />
The ‘i’ brand name was developed after a great deal of research. At the same time, the Company also<br />
identified and developed product features that would be incorporated into its products. Thus when we<br />
launched the products, we could offer something innovative, interesting and intelligent to the consumers.<br />
The result is that today, our products are well received by the market. In the short to mid-term, the Company<br />
will continue to focus on the existing four products – air conditioners, rice cookers, fans and refrigerators. We<br />
will continue to introduce new models for each of these product categories before extending the product<br />
range to other categories of home appliances.<br />
The growth in sales is also partly from the results of establishing our own sales distribution network<br />
nationwide. In this context, today we have over 500 dealers throughout the country and they are serviced by<br />
our national sales force. At the same time, we have also established a service network to provide after sales<br />
service to our customers.<br />
On the cost side, the Group has managed to reduce the manufacturing cost significantly. A value engineering<br />
programme enabled the Company to reduce the raw material costs. At the same time, productivity at the plant<br />
level has been increased by over 30%. A large and more consistent production volume has also enabled the<br />
Company to benefit from economies of scale.