spritzer spending rm65mil to expand warehouse, output
Georgetown: Spritzer Bhd, a manufacturer of bottled water products, has allocated 65 million yuan to expand storage facilities and production capacity. This includes plans to build an automated warehouse in Taiping, per state this year at a cost of 45 Myr, as well as a budget to add new production lines to the Shah Alam plant. Datuk Lim Kok Boon, general manager of the group, told StarBiz that \"both expansion projects are scheduled to be completed by 2019 . \". After completion, the group\'s production capacity will increase by 30%, and the production line will increase from 15 to 17. The group\'s current production capacity is 0. 65 billion liters per year. Spritzer estimates that it has more than 40% market share in the bottled water industry on the Malaysian peninsula. The new investment is part of the group\'s strategy being implemented to increase profit margins. Spritzer announced net profit of rm7. Income is yuan. For the three months ended December 31, 2017, 4mil. \"We are working to improve operational efficiency by streamlining processes more automatically,\" Lim said . \". \"We will continue our efforts to expand sales and market share,\" he added . \". According to Lim, Spritzer will launch new products this year or early 2019. He said the company recently renamed its Spritzer fiber Spritzer BonRica, a healthy drink containing soluble dietary fiber. Recently, the company launched a new 300 ml cactus natural mineral water. \"We will add some variants, such as carbonated mineral water,\" Lim said . \". Consumers are moving away from sugary drinks, he said. \"Some people are turning to carbonated mineral water because it can relieve their thirst and keep them healthy. \"In Europe and the United States, carbonated mineral water is popular for sugary drinks. \"We will continue to invest in new product innovation, focusing on health and functional advantages, and catering to more complex tastes preferences for consumers,\" he said . \". Lim added that the bottled water market is highly competitive and fragmented with a large number of players in the industry. \"We believe that demand for bottled water will remain strong due to our good distribution network and strong brand assets. \"Our core brands Spritzer, Cactus and Summer are also leading brands in their respective market segments. \"We are optimistic that the Spritzer group will continue to perform well in 2018,\" he added . \". According to the Statista consumer market outlook report, Malaysia\'s bottled water market revenue is about $ 233mil (RM901. 83mil)this year. \"From 2018 to 2021, the market is expected to grow at a CAGR of 9%,\" Statista said . \". Statista\'s consumer market outlook provides detailed insights into the world\'s consumer goods and provides trends and forecasts to experts in the consumer goods market. A Euromonitor International report in February 2018 said that with players investing in production processes to launch new premium bottled water products, bottled water in Malaysia continued to grow in record numbers in 2017. \"As consumers seek more diversity and complexity, private label brands seize the opportunity to enter the modern grocery channel, leading to an increase in their sales volume in 2017. \"Given the hot climate and the growing health of consumers -- Awareness, players have used this trend to strengthen their brand influence and competitive power. \"Domestic players continued to dominate bottled water in 2017 because of their wide range of prices, attracting consumers at different levels of income,\" Euromonitor International added . \". Euromonitor International is a leading provider of independent strategic market research.