A home grown Malaysian
company, London Biscuits Berhad Group’s
main business philosophy hinges on manufacturing and marketing cakes
and snack food which score high in terms of product safety and quality.
The company strongly believes that this is the only way to ensure the
customer satisfaction and loyalty to the product and the brand it embodies.
London Biscuits’ individually
packed and ready to eat products can be divided into 2 main categories
- Corn based snacks
- Cake products such as Swiss Rolls, Pie Cakes and Layer
In addition, London Biscuits also manufactures range assorted chocolate
confectionery including chocolate-coated peanuts and biscuits, pancake
cookies, jelly and puddings, wafer sticks, cup sticks and snack noodles.
Some of the London Biscuits products are marketed under the popular
As a pioneer in the cake products segment locally, London Biscuits has
fine-tuned the process of making cakes with long shelf life, of 8-12
months, without refrigeration.
London Biscuits products can be found in Malaysia and 65 other markets,
worldwide. Its main overseas markets are China, Hong Kong, Macau, Indonesia,
Singapore, Taiwan, Thailand, Vietnam and the Middle East.
London Biscuits Group strategy for growth is based on the following:
competency in manufacturing capability and technology- this underscores
its commitment to adopting the latest technology in food manufacturing
range, innovation and quality-which ensures it brings the most relevant
products to the right people (adults and children alike) at the right
- Effective and
extensive distribution network – customized
networks to suit the target market
- Stringent adherence
to HALAL standards and relevant international food safety regulations – which embodies
its commitment to food safety to build trust in the company’s
owned London Biscuits Sdn Bhd was established. Operating on a small
scale with a few production lines, the company’s main business
was manufacturing corn-based snacks from its rented factory premises
in Tampoi, Johor. The company had 10 workers with a monthly turnover
Liew family acquired the company; although he had no experience
in the food manufacturing industry, the family patriarch, Dato’ Liew
Kuek Hin, saw the potential of turning the company around to
become a leading food manufacturer in Malaysia.
the company’s business strategies, the Liew
family agreed that their guiding principle would be to ensure that
London Biscuits products would always be safe for consumption by
all consumers. In addition, London Biscuits should aim to maintain
its market lead via technology driven R&D support. In putting
the needs of customers first, the Liew family also stressed the
need for its products to be fresh and made with quality ingredients.
business was given a shot in the arm when Dato’ Liew
Yew Chung, the eldest son in the family, joined the business. Having
obtained a Bachelor’s degree followed by an MBA from the
US, Dato’Liew Yew Chung brought with him the necessary business
principles and financial acumen to spur the company’s business.
Aided by a much needed cash injection and sound management practices,
the entry of the Liew family brought new and progressive winds
of change to the company.
subsequent eight (8) years proved to be a period of accelerated
growth for the company, with revenue making a leap from RM500,000
to RM29 million. This good fortune was directly linked to the
strategic decision made by the Liew family to expand the company’s
business to include the cakes segment, which provided higher
profit margins for the company.
London Biscuits also shifted manufacturing operations from the
previous rented premises to its own new factory. Production and
efficiency received a boost with the new plant and new automated
machines; in addition, new products lines were added London Biscuits
Naturally, the growing popularity of London Biscuits products
led to growth in its export customer base that grew from 38 to
50 during this period with a tandem increase in domestic customer
||In order to tap funds to expand
the business and to establish a presence in the Malaysian corporate
world, the company decided to initiate an Initial Public Offering
on the Malaysian Stock Exchange. And so, London Biscuits Berhad
was successfully listed on the Second Board of Bursa Malaysia
Securities Berhad in January 2002.
With growing demand for its products, London Biscuits realized
the need to strengthen its corporate image and reputation. In
line with this the company signed a licensing agreement with
Fun Character International, the licensing body of Disney Character
in December 2002. The licensing rights received by London Biscuits
included the right to use certain popular Disney characters on
it product wrappers, a move meant to widen the appeal of the
products amongst its widening regional market.
another indication of how the company had evolved into a dynamic
corporate powerhouse, 18 months after its maiden listing on the
Second Board, London Biscuits qualified for a listing on the
Main Board; this transfer was successfully completed in September
revenue doubling between 2002-2005, London Biscuits was faced
with the “happy problem” of
facing an over demand for its products. It was then that the
Board decided to take the calculated move of acquiring the business
of an existing food manufacturing company. This would give London
Biscuits immediate access to expand operations.
Thus, in May, London Biscuits Berhad undertook the acquisition
of Kinos Food Industries Sdn Bhd, via a 77% stake in the company.
The decision was made as Kinos, with its existing factory and
food industry business, offered London Biscuits the perfect opportunity
to increase production capacity, with minimal capital expenditure.
The acquisition was completed with a cash payment of RM12.3 million.
In November 2005, London Biscuits stakeholding in Kinos was further
increased to 95.49%.
acquisition was a significant step in the continued growth
of London Biscuits as it held unrealized potential in terms
of synergized business between the two (2) companies. In addition,
the take-over of Kinos became the required launch pad to strengthen
presence in the local and regional markets.
and Going Forward
||London Biscuits is currently enjoying
continued strong demand for its products; its net profit rose
26.06% to RM14.5 million in the year ended June 30, 2006 from
RM11.5 million in the previous year.
Revenue rose 31.4% to RM107.69 million from RM81.96 million
previously after taking into account the full year contribution
Since London Biscuits took over Kinos, the company has increased
production capacity utilization to 48.99% while the cakes segment
recorded over 50% capacity utilization for the whole year.
Today, London Biscuits has six (6) factories operating at near
full capacity in Ulu Tiram, Johor and Kinos has twon (2) factories
in Pasir Gudang, Johor.
Going forward, London Biscuits Group continues to be guided
by the business strategies laid down in 1993 that hinge on providing
safe and trusted products to their various consumer groups.