Inix, Duria to build plants for durian products

KUALA LUMPUR: Inix Technologies Holdings Bhd, together with its new strategic partner Duria Manufacturing Sdn Bhd, is building three new primary processing plant for durian products to tap into the lucrative durian market.

Inix executive director Siva Kumar Kalugasalam said under the partnership, the group would be appointed to secure a supply for Duria of 5,000 tonnes of nitrogen frozen Musang King durian, 2,000 tonnes of durian paste and 1,000 tonnes of Musang King pulp over next five years.

In return, Duria will be able roll out its upstream vertical integration campaign.

“In order to carry out the operation of purchasing, collecting and carrying out these primary processes, Inix and Duria propose to start three new primary processing plant with advance technology. The first plant will be located in Perak and the remaining two location will be determined at a later date.

“In view of the huge potential market of the overwhelming demand for durian, Inix decided to invest in this joint venture (JV) company to cope up with the expanding market demand, aiming to create value for its shareholders,” he said during the signing ceremony here today.

Siva said he was unable to disclose any investment numbers as the JV was still in the preliminary stage.

He said the company had targeted to achieve a 20-35 per cent return on investment from the factories in next two years.

Duria chief executive officer Wong Woei Ming said year to date, the company’s total sales volume had increased 50 per cent to 500,000 boxes compared to the same period last year.

“Under the current Covid 19 pandemic, such excellent results can still be achieved, which once again proves Duria’s popularity in the market.

“The company also plans to reach strategic cooperation with all TVB artists in the future, and establish an Internet celebrity live platform to sell ‘Musang King Snowy Mooncakes’ to integrate the internet celebrity team,” he said.

Wong said in 2018, China had accounted for 65 per cent of the total share in import value the company’s Musang King durian with a total imported quantity of 431,940 tonnes of fresh durian.

Duria products are being sold to the United States, Canada, Australia, New Zealand, China, Hong Kong and Singapore.

Wong said the company would consider listing Duria in the next two years, as the brand becomes more internationalised and attracts more foreign investment.

Source: NST