KUALA LUMPUR: Sunzen Biotech Bhd will manufacture healthcare and beauty products for Xmegami, a micro-business platform, at its manufacturing facility in Selangor this year.
Ecolite Biotech Manufacturing Sdn Bhd, the group's health and wellness subsidiary, has formed a 49:51 joint venture with Xmegami to establish Xmegami Manufacturing Sdn Bhd (XMSB).
According to Sunzen director Ching Chee Pun, Ecolite has two factory lots in Kota Kemuning that were currently underutilised.
"The first factory manufactures Sunzen products such as bird's nest, tonics, essence, and formulated herbs.
"We will invest roughly RM5 million in converting the second lot for XMSB to manufacture the Xmegami range of products," he said.
Sunzen expects a bright future for this new venture, especially given that Xmegami has over 2,000 members who can sell the products via its multi-level marketing platform.
"Xmegami has a strong sales channel and uses new media to market their products. This is a good marriage between two companies. We expect XMSB to release the first batch of Xmegami-branded products by the end of this year, effectively contributing to the group's revenue," he said following the joint venture agreement signing ceremony here, recently.
Sunzen managing director and chief executive officer Teo Yek Ming said the collaboration transformed Ecolite from a traditional to a modern healthcare company, marking a watershed moment for the group in the healthcare industry.
"As people's quality of life improves, they become more health-conscious and interested in health-care and beauty products. Ecolite and Xmegami's collaboration can complete Sunzen's ecology in the human health care industry while also contributing significantly to the group's overall business," he said.
Ecolite uses modern facilities to combine ingredients into formulas derived from traditional recipes to popularise nutrition and make it easier for the public to obtain nutrition and maintain their health.
The company offers original equipment manufacturing (OEM) and original design manufacturing (ODM), both in accordance with GMP, HACCP, MeSTI, VHM, and JAKIM Halal certification standards.
Meanwhile, Xmegami founder and director Cheong Sheue Xin hopes that the joint venture would bring more effective and complementary health products to market.
She said product formulation and quality development would be prioritised at the new Xmegami factory in Kota Kemuning.
"The team will bring these products to local and international customers through various online and offline marketing channels," she said.
Xmegami intends to expand into Singapore, Taiwan, Hong Kong and Indonesia, in addition to Malaysia.
According to Cheong, Xmegami generated RM40 million in revenue during the pandemic in 2020, which increased to RM44 million the following year.