KUALA LUMPUR: Erwan Bhd has expanded its business into electrical chain stores through a joint venture with TBC Elektrik Sdn Bhd.
The joint venture company is known as Erwan TBC Elektrik Sdn Bhd, with 51 per cent of the shares controlled by Datuk Seri Dr. Erwan Tahir.
He believes that the joint venture has the potential to become the leading electrical chain store in Malaysia with loyal customers.
"To improve the company's operations, this year the company will implement a warehouse management system and an order management system with an expenditure of RM1 million to further facilitate purchasing and delivery to customers.
"At the same time, all existing Erwan TBC warehouses will have automated smart warehouse as implemented in European countries and the United States," Erwan said in a statement.
TBC Elektrik started operating in 2006, founded by its managing director Rico Lee who has experience in the electrical chain store industry.
TBC Elektrik is also one of the largest brands in this segment in Malaysia and has 20 branches of electrical chain stores nationwide with sales revenue of RM130 million last year.
Erwan said in order to expand business in the electrical chain store industry and also to introduce new products, the company would open five new stores in the second quarter of this year.
He said at the same time, another 30 stores were targeted to be opened throughout the Klang Valley and two stores in Johor Bahru within two years.
"I expect that with the opening of several new stores this year and with promotions carried out throughout the country, our sales revenue will increase between RM150 million and RM160 million by this year," he said.
Erwan TBC Elektrik has set a target to develop a "SuperApps" to sell electrical goods online, thus making it easier for customers, especially young people who do not have time to go to the store.
Meanwhile, Lee said the joint venture was a good move considering that the Erwan group has various types of businesses.
This can make the Erwan TBC brand more competitive as well as increase sales of its electrical goods to another level.
Erwan TBC would strengthen its after-sales service, he said, adding that customers can purchase electrical goods through installment payment with the help of certain financial institutions and banks in Malaysia.
Over the long term, Erwan TBC plans to form joint ventures with cooperatives to make it easier for their members to buy electrical products at reasonable prices.
The company is also targeting government servants, offering them an option of cash payment or installments for purchases through it.
To support the opening of new branches, Erwan TBC plans to build a new warehouse on 1.5 acres bought earlier this year.
The company will also boost promotions including roadshows in shopping complexes, and charity initiatives.