Sharen Kaur
KUALA LUMPUR: Cuckoo International (Malaysia) Sdn Bhd, a manufacturer of healthy home products, will invest about RM100 million on a new factory in Selangor that will produce home appliances for the Southeast Asian markets including Malaysia.
Hoe Kian Choon, the company's founder and chief executive officer, said it was looking for suitable land to house the factory.
He expects the factory to be ready for operation within the next three years.
"The RM100 million investment will be used to purchase land and construct buildings. It's a big place. We're looking for land in Subang that's close to our distribution centre, which we opened in 2019.
"At the same time, we're also considering Klang because the ports are close by, and there will be logistical savings," he said.
Hoe was speaking to the New Straits Times after signing a Memorandum of Agreement (MoA) with Fujiaire Global Sdn Bhd to introduce the new Cuckoo Vita-S Inverter smart air conditioner to local consumers.
The company said by infusing Vitamin C into the air, the new air conditioner would make Malaysian homes cooler and healthier, helping to moisturise the skin and boost immunity.
It also emits silver ions into the air, which at low concentrations destroy bacterial cell membranes.
Despite the pandemic, Hoe believes the time is right for the company to expand.
"We've had a good run over the last two years. In 2021, our revenue and net profit reached new highs of RM1.13 billion and RM185.5 million, respectively, and we expect double-digit growth this fiscal year," he said.
Cuckoo International's revenue and net profit increased by eight per cent and 44 per cent, respectively, year over year, marking the company's seventh consecutive year of topline growth despite a challenging market environment.
Hoe expressed optimism for the company's prospects in 2022, citing solid business strategies in the works to develop more healthy home solutions for Malaysians to live healthier and happier lives.
"Strong demand from Malaysians for healthier offerings made affordable and accessible through our flexible subscription model concept propelled our strong finish to fiscal 2021, including record-setting revenue growth," he said.
To meet this demand, Hoe said the company had created a variety of subscription plans under the GOOODPLAN™️ to offer customers a variety of affordable payment options with a low barrier to entry.
"In fact, more than 90 per cent of our customers have signed up for rental-based services, accelerating our business momentum and growth across the country," he said.
Cuckoo International was founded in 2014.
To date, the company has provided healthier solutions to over 1.4 million homes and 4.7 million households.
In addition, it has over 640 locations across the country.
Hoe said it would continue to develop "beyond standards" products and services through its four strategic pillars - Healthy Appliances, Healthy Lifestyle, Healthy Home Care, and Healthy Living - in line with the company's mission to become Asia's No. 1 Healthy Home Creator.