The RM30 million contract from Pure Circle is expected to contribute significantly to the Hai-O group’s turnover and profit
HAI-O Enterprise Bhd’s unit SG Global Biotech Sdn Bhd has secured an exclusive five-year contract to manufacture a natural sweetener under the brand name, Greenlite, from Pure Circle (M) Sdn Bhd.
Its financial controller, Hew Von Kin, said for the first three years, the RM30 million contract is expected to contribute significantly to the Hai-O group’s earnings.
“It will increase the contribution of sweetener manufacturing to the group’s turnover and profit to five per cent within the next five years.
“The sweetener will also be exported. Currently, sweetener manufacturing only contributes two per cent to the group’s turnover and one per cent in terms of profit,” he told reporters after the signing of the agreement between SG Global and Pure Circle in Kuala Lumpur today.
Deputy Finance Minister Datuk Dr Ng Yen Yen officiated at the ceremony.
Also present were Hai-O chairman Tan Sri Osman S. Carrim, managing director Tan Kai Hee and Pure Circle’s director for business development Aslan Tomov.
Greenlite is a natural sweetener made from the Stevia plant.
Pure Circle Ltd, the holding company of Pure Circle and the largest producer of the sweetener, is listed on London’s Alternative Investment Market.
Meanwhile, SG Global’s manager Chua Chun Siang said about 85 tonnes of Greenlite would be produced during the initial three years and subsequently it would be increased to 150 tonnes.
Tomov said Stevia is cultivated in China and trials are being done in Cameron Highlands.
“We are also looking at Kenya as well as other regions to source the crop. Stevia is also planted in Paraguay,” he said.
He said big sweetener users, Coca-Cola Co and Cargill Inc, had announced their intention to market a new calorie-free natural sweetener produced from Stevia plants. This is expected to attract more health-conscious consumers.
Tomov said that there were also plans to appoint Hai-O as the distributor of the product in Malaysia and China next month.