KUALA LUMPUR: Sino Hua-An International Bhd (SHA) will be investing RM30 million from its redeemable convertible note programme to transform its subsidiary, Craveat International Sdn Bhd (CISB), into a technology company for the food and beverage (F&B) industry.
This transformation programme is a significant kick off for Techna-X, the technology division under SHA earmarked to grow the Group's revenue stream as a digital enabler to lead digital transformation of the old economy in the Asia Pacific region.
"In line with SHA's direction of focusing on the digital transformation space, we want CISB, our F&B subsidiary to be known as a technology company that serves excellent food and drinks," SHA executive director Datuk Jared Lim said in a statement today.
"While we continue to strive for ever improving food quality and innovation, we will also continue developing our technology tools and platforms to enhance the customer experience and optimise our decision making", Jared said.
SHA's RM30 million investment for this transformation purpose will go towards improving and enhancing Techna-X technology infrastructure and TTP expansion.
The target of 100 new outlets will be rolled out either through self-own or TTP franchising model.
TTP's expansion plan is expected to deliver approximately RM100 million revenue to SHA Group overall performance with a combination of outlet sales, royalties, franchisee fees and proprietor item supply in the long term.
The company's homegrown F&B brand, Teh Tarik Place (TTP), will lead in the transformation which targets to open 100 outlets in 36 months throughout Malaysia and in the Asia Pacific region.
The Techna-X platform will provide advantage to TTP via its point of sales (POS) system, business intelligence platform and data engine as well as TTP's halal certified central kitchen in order to better plan and manage operations.
TTP also uses data analytics in traffic flow to allow TTP's management to make more informed decisions in the selection of locations for outlet expansion.
TTP first opened at the Curve Shopping Mall, Petaling Jaya in 2003 as a local Malaysian 'mamak' style coffee shop and has expanded via a successful franchise model.
It currently has 20 outlets mainly located in strategic Klang Valley locations.
TTP made its first international venture into Brunei in 2019 opening two franchised outlets with another two in the pipeline.
There are immediate plans to expand TTP into Australia this year via its Australian master franchise partner and the Group is also working on opening its first corporate owned TTP outlet in China by 2021.
Further, SHA has been undergoing corporate reorganisation since 2019, acquiring four tech companies and one F&B company to solidify its digital transformation and digital ecosystem solutions.
The Group has been layering digital technology interests into its business through its newly set-up technology division, Techna-X, to allow its shift from conventional metallurgical coke production to transforming economies in the region as a digital transformation enabler.
Upon completion of this exercise, the SHA Group would have invested a total of RM107 million into Techna-X.