by PRIYA VASU / graphic by TMR
INIX Technologies Holdings Bhd completed the acquisition of 51% stake in rubber glove manufacturer L&S Gloves Sdn Bhd.
In a filing to Bursa Malaysia today, Inix noted the acquisition would result in an immediate earnings recognition from L&S’existing 2 production lines, which are located in Beranang, Selangor.
Upon the completion of a total additional 12 lines within 2021, it is expected to generate an annual turnover of RM200 million. This is based on the glove production capacity of 1.4 billion glove pieces per annum.
“This would also provide us with an immediate revenue recognition from the existing 2 production lines, to turnaround the Company” Inix’s Executive Director, Siva Kumar Kalugasalam said in a separate statement.
The Group is in the midst of commissioning an additional two production lines by February this year, in order to meet the growing gloves demand.
The existing daily production gloves of L&S are sold out in advance, and delivery to customers are done on a daily basis, pointing to an adequate demand for gloves in the market.
“We are already moving ahead to add two production lines by February this year. “Currently, it is already at 70% completed, and we are confident that it will be commissioned next month,“ Siva added.
As L&S has sufficient orders that could sustain for the next two years, Inix plans to expand our production capacity to 14 production lines within the next twelve months, with a total investment of not less than RM50 million.