Halex bags RM368m rice supply deal
Published on: Monday, November 30, 2015
Kuala Lumpur: Halex Holdings Bhd's unit Halex (M) Sdn Bhd (HMSB) has clinched a contract worth up to RM368 million from Koperasi Majlis Belia Felda Malaysia Bhd (MBFM) for the supply of pre-packaged rice to the local market.MBFM is a cooperative body under the Federal Land Development Authority (Felda), and recently launched its own brand known as "d'BELDA" under its rice distribution programme.The two-year contract for the supply of Super Special Import 5pc white rice is effective until 2017, with a one-year extension option, depending on the sales performance. The contract is expected bring in about RM184 million a year for Halex.
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"We have set (to supply) 80,000 metric tons (of rice) per year," Halex executive deputy chairman Datuk Wira Haji Masood Zainal Abidin said."As per the terms of the agreement, HMSB will charge a premium of RM200 per metric ton supplied to MBFM, amounting to a gross profit of about RM16 million, assuming that all 80,000 metric tons are supplied," he added.Masood said the group expects the contract to significantly contribute to its future revenue and bottom line.Under the agreement, MBFB and HMSB agreed to work together on the supply of packaged rice to MBFB's rice distribution project and the National Food Storage Project.
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Masood said the Super Special Import 5pc white rice will be sourced from Asean countries, including Cambodia, Vietnam, Myanmar and Thailand, adding that it currently has two warehouses, in Kajang and Shah Alam.Stay up-to-date by following Daily Express’s Telegram channel.
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Masood said the group plans to maximise the use of land for agricultural activities, create agricultural entrepreneurs and increase the income of existing entrepreneurs, boost the development of agro-based industries, especially food production, and adopt good agricultural practices in all production chains.
