Spritzer plans RM20mil line

Thursday May 6, 2010
By DAVID TAN


Investment will raise annual output of mineral water to 170 million litres by 2011

TAIPING: Spritzer Bhd plans to invest RM20mil in a new main production line at its plant in Taiping by the year-end.

Group managing director Lim Kok Boon told StarBiz that the new line would increase the company’s annual output of mineral water to about 170 million litres or 10.2 million cartons by 2011.

The Taiping facility presently has one main production line and six smaller ones.

“This year, our production will be increased to 150 million litres or nine million cartons, from 100 million litres or six million cartons last year.

“This is due to the recent commencement of our RM60mil plant in Shah Alam, which has four production lines,” Lim said.

He said the higher output would also help Spritzer expand its domestic market share of mineral water by about five percentage points to 30% this year.


Spritzer’s manufacturing plant in Taiping, Perak

“The plant will supply drinking water to consumers in the Klang Valley and Selangor, and we anticipate savings on distribution cost,” he said.

To further tap this market, the company has also acquired a strategically-located property in Kepong for future expansion of its production facilities.

Lim said Spritzer planned this year to enter Vietnam and increase the range of its mineral water exports in terms of bottle size to Australia. Spritzer also exports to New Zealand, Singapore, Hong Kong and Cambodia.

Although packaging and plastic raw material prices had increased, Lim said there wouldn’t be any increase in the selling price of its mineral water, as the company was still able to absorb the additional costs.

He said Spritzer last year spent 5% of its RM108mil revenue on advertising and promotions.

“We will spend more this year as we will launch a new health drink next month. We have received the greenlight from the Health Ministry,” he added.

For the third quarter ended Feb 28, Spritzer posted RM3.2mil in net profit on revenue of RM32.5mil, compared with RM2.4mil and RM27.8mil respectively in the previous corresponding period.