I-Berhad (7029-H) - Bursa Malaysia

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