Chapter 3 Company Profile

3.1 Company Overview

IBUMIE food products is actually under a subsidiary company of OCB Berhad, IBUFOOD CORPORATION SDN BHD. IBUFOOD CORPORATION SDN BHD is wholly-owned by OCB Berhad and they are under consumer foods division. OCB Berhad’s highest management position takes over by Tan Sri Dato’ Nik Ibrahim Kamil, the independent non-executive chairman. Ibufood Corporation is made up of the following operating subsidiary companies, each specializing in consumers’ food related business, they are Biz-Allianz International (M) Sdn Bhd, Spices & Seasonings Specialities Sdn Bhd, Ibufood Manufacturing (M) Sdn Bhd, Selera Citarasa Sdn Bhd, Ecoway (Malaysia) Sdn Bhd and Biz-Markas Sdn Bhd.

3.2 Business Description

The principal activity of OCB is investment holding. The principal activities of the subsidiary companies are Manufacturing of spring units and polyurethane foam, trading and marketing of spring mattress and sleep related products and property holding. OCB is an independent importer of multi-brand mobile phones including Nokia, Ericsson, Alcatel, Sagem and Motorola. The company also markets and distributes consumer electronic products such as Samsung keyphone systems, digital and analog cameras.

IBUFOOD CORPORATION SDN BHD is a subsidiary of OCB Berhad. IBUFOOD is principally engaged in the business of investment holding whilst the principal activities of the subsidiaries are manufacturer of instant noodles and seasoning products; sales and distribution of consumer foods products; marketing and distribution agent for financial related consumers food product. IBUFOOD manufactures a wide range of consumers food product, including instant noodles, seasoning powder, seasoning oil, sauces, mayonnaise, specialty spices, soup, soup stocks and marinades.

          Ibufood Group also offers original equipment manufacturing (“OEM”) solutions to locally-based instant noodles, seasonings and snack manufacturers and traders. They have several sales and service in several state including  Penang, Perak, Pahang and Johor whereas manufacturing  factory located in Selangor.

3.3 Company History

OCB Berhad was first incorporated in Malaysia on 29 May 1959 as a private limited company. Originally known as H.A. O’Connor and Company (Malaya) Limited, the Company was principally involved in the sales of electronic and telecommunications equipment and the provision of system designs and related engineering services.

After its inception in 1959, the Company underwent a number of significant corporate changes as well as changes to its name, On 21 March 1992, the Company was converted from a private limited company to a public limited company. OCB was admitted to the official list then Kuala Lumpur Stock Exchange on 15 December 1992. The Company assumed its present name OCB Berhad on 6 April 1999.

Since 2000, the Company shirted its focus from the sale of electronic equipment and the provision of telecommunications related engineering services to fast moving consumer products business by acquiring a group of companies which carry with them major names in food products, mattresses and building materials.

Today, OCB and its subsidiaries (“the OCB Group”) is a major player in the instant noodle industry, the mattresses manufacturing industry and is also reputed in the building materials supply industry.

For instant noodle industry, Ibufood Corporation Sdn Bhd (“Ibufood”) was incorporated in Malaysia on 30 March 2000 as a private limited company under the Companies Act, 1965.

3.4 Key People

·       BOARD OF DIRECTORS

Tan Sri Dato’ Nik Ibrahim Kamil Bin Tan Sri Dato’Nik Ahmad Kamil

Independent Non-Executive Chairman

Zakaria Merican Bin Osman Merican

Independent Non-Executive Director

Goh Teck hong

Independent Non-Executive Director

Mohd Harris Bin Pardi

Chief Operating Officer cum Executive Director

Fong Heng Leong

Executive Director

Sak Swee Sang

Executive Director

·       AUDIT COMMITTEE / REMUNERATION COMMITTEE ? NOMINATION COMMITTEE

Tan Sri Dato’ Nik Ibrahim Kamil Bin Tan Sri Dato’Nik Ahmad Kamil

Independent Non-Executive Chairman

Independent Non-Executive Chairman

Zakaria Merican Bin Osman Merican

Member/Independent Non-Executive Director

Goh Teck Hong

Member/Independent Non-Executive Director

·       SECRETARY

Tan Bee Keng

MAICSA 0856474

·       AUDITORS

SJ Grant Thornton

(Member of Grant Thornton International)

Chartered Accountants

3.5 Location and Subsidiaries

OCB Berhad was first incorporated in Malaysia on 29 May 1959 as a private limited company, the company was originally known as H.A. O’Connor and Company (Malaya) Limited, the company was principally involved in the sale of electronic and telecommunications equipment and the provision of system designs and related engineering services. OCB Berhad has 22 subsidiaries, including OCB Group which is a main player in instant noodle industry.

Location

Head Office

·      OCB Berhad

2B-5 Level 5, Jalan SS 6/6,

Kelana Jaya, Petaling Jaya,

Selangor Darul Ehsan, 47301, Malaysia.

Tel : 03-7880 7539

Fax : 03-7880 7536

Email :corporate@ocbb.com.my

http://www.ocbb.com.my/

Subsidiaries

Consumer Foods

·       Ibufood Corporation Sdn Bhd

2C-3, Level 3, Jalan SS 6/6

Kelana Jaya, Petaling Jaya,

Selangor Darul Ehsan, 47301, Malaysia.

Tel: 603 7805 4728    Fax: 603 7805 4726

Subsidiaries of Ibufood Corporation Sdn Bhd

-        Biz-Allianz International (M) Sdn Bhd

-        Spices & Seasonings Specialities Sdn Bhd

-        Ibufood Manufacturing (M) Sdn Bhd

-        Selera Citarasa Sdn Bhd

-        Ecoway (Malaysia) Sdn Bhd

-        Biz-Markas Sdn Bhd

Bedding Products

Kaiserkorp Sdn Bhd

Selangor

2C, 5^th Floor,

Jln Ss 6/6,

47301 Petaling Jaya, Selangor.

Tel : 03-7806 1145

Perak

No. 56, Lts Perajurit 6,

Taman Ipoh Timur,

31400 Ipoh, Perak

Tel : 05-546 7321

Subsidiaries of Kaiserkorp Sdn Bhd

-        Kingkoil Corporation (M) Sdn Bhd

-        Bedco Sistem (M) Sdn Bhd

-        TN Metal Industries (M) Sdn Bhd

-        Dreambed (Malaysia) Sdn Bhd

-        Jiwa Adil Sdn Bhd

-        Kaiserkoil Incorporated (M) Sdn Bhd

-        Acrowyn (M) Sdn Bhd

Building Materials

Agrow Malaysia Sdn Bhd

Tel : 03-7805 4748

03-7805 4723

Email : enquiry@agrow.com.my

Subsidiaries of Agrow Malaysia Sdn Bhd

-        Agrow Corporation Sdn Bhd

-        AG Textronic Sdn Bhd

-        Pure-Ecology (M) Sdn Bhd

-        Keenwai Enterprise (M) Sdn Bhd

Investment Holding

Enigma Sinar Sdn Bhd

3.6 Brands, Major Products and Services

IBUFOOD CORPORATION SDN BHD which is the subsidiary of OCB Berhad, the corporation is a Malaysia-based producer and supplier of Ibumie food products and other consumer product. The company products, activities and services :

Consumer Food Division

IBUFOOD CORPORATION SDN BHD

·       Products : instant noodles

·       Services : Manufacturing and Distribution Services

·       Brand : Ibumie

·       Products : Seasoning-powder, seasoning-oil, sauces, mayonnaise, speciality spices, soup stocks and marinades.

·       Services : Manufacturing and Distribution Services

·       Brand : Telly

Bedding Products Division

Kaiserkorp Group

·       Products : pillows, bolsters, bedlinens and towels

·       Services : Sales Services

·       Brand : King Koil

Building Materials Division

Agrow Malaysia Sdn Bhd

·       Products : Building materials for any upcoming construction of houses, hotels, laboratories and medical institutions procurement.

·       Service : Sales Services

·       Brand : Johnson Suisse, Claytan, Bobrick, Locware and so on

3.7 Corporate Vision

OCB Group is looking for business opportunities which are synergistic with its present operations to expand its scope of activities and to prepare the group to face the exciting challenges of the future.

3.8 Corporate Mission

To enhance the lives of people with better living comfort and convenience through products and services of superior value and quality.

3.9 Company Current Promotional Strategy

2008

Ibumie Always Mi Goreng Asli TVC

Ibumie Har Mee TVC(Chinese Version)

Ibumie Har Mee TVC(Bahasa Malaysia Version)

2011

Ibumie Mee Baa..gus TVC

3.10 Product Sales’ History

Cash Flow

3.11 Current Marketing Objective

Ibumie still has plenty of opportunities for the growth of its market. Its market presence is still small as compared to the several strong competitors in local. OCB Berhad is strategizing the followings to boost market penetration :

Short Term

·       To increase the speed of product development as well as the market development by rolling out new product lines and bring in new products

·       To boost sales of its market comparable to the dominant competitor

·       To gain customers’ loyalty by giving them a high quality products and trusted image

Long Term

·       Invest more in their core business – this on-going effort provides financial support for capital project in several division of the company with the aim of improving productivity and efficiency, which in turn will reduce cost and improve profits.

·       Emphasizing on product – the Company has since 2000 shifted its focus from the sale of electronic equipment and the provision of telecommunications related engineering services to fast moving consumer products business

·       Increasing focus on marketing and selling their products – it is the company’s mission to increase sales through

·       Search for more business opportunities – the company want to expand its scope of activities and prepare to face exciting challenges of the future.

3.12 Media Expenditure

OCB Berhad had invested RM30 million in Commercial since 2008. They came out with several series of tv commercial on one of their subsidiary company’s brand -  IBUMIE , this had boost their marketing and sales result and push their market position to become the leader in the domestic dry instant noodle market, the demand of their product increase tremendously and improve the company’s financial profile.