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Capitalizing on Growth Opportunity of a Malay Traditional Beauty and Health Supplement Company

Capitalizing on Growth Opportunity of a Malay Traditional Beauty and Health Supplement Company

Situation

An established Brand owner of more than 14 years providing wide range of skincare and health supplements of herbs and natural products, this client’s revenue had reached a plateau of RM7 million annually. The Founder believed that they were missing a potential growth opportunity. They came to CAPITAL with a request to assist in creating a growth plan for the company and to raise the necessary expansion capital to fund the plan.

Challenge

• Diversification of revenue
• Scalability of internal management capabilities
• Positioning the company to raise capital for its grow plan

Solution

Working with the Founder and the management team, CAPITAL developed a three-year growth plan for the business, to help them develop a growth strategy for their business and to build an infrastructure to drive and manage that growth (include both organic growth and acquisitions). CAPITAL then worked closely with the client to prepare the necessary presentation materials and develop the potential financial terms to fund the grow plan.

Also, by establishing a regular process for defining, obtaining, and evaluating key performance measures, this client was able to translate that information into critical knowledge that helped them better manage resources and drive growth.

Results

CAPITAL provided the client access to several high quality funding sources, as potential JV partners for the company. CAPITAL was also able to demonstrate the inherent value of the client’s balance sheet and ensure the JV partners were comfortable with the risk represented.

The ability to understand what works best and continue to replicate it, while eliminating those efforts that fail to work, has successfully grown the company from 5 retail outlets in Klang Valley to more than 30 outlets in less than two years, with substantial online present and e-commerce capability.

The company is now planning to offer its products to all state of Malaysia including Sabah and Sarawak, and is in the process of exporting to Thailand and Indonesia.