DKSH: New warehouse

DKSH Holdings Bhd, has recently opened its state-of-the-art distribution centre in Hicom Industrial Estate in Shah Alam, with a capacity of 130,000 sq ft and additional expansion capacity of 60,000 sq ft.

The centre, which is operating at an 85 per cent capacity, has generated 280 jobs.

John Clare, DKSH Malaysia head of country management and group finance director, in an interview recently said "We allocated RM6.8 million in capital expenditure (capex) for this new centre, which is relatively small as we practise an ‘asset light’ business model, which means we do not purchase any land and simply just rent it. For this new centre, we have a tenure of 10 years with the option to continue."

The group, through its healthcare unit, is already serving over 600 specialists in Malaysia and the new distribution centre will also be able to serve more than 13,000 healthcare customers, including hospitals, clinics, dental centres, pharmacies and retail outlets nationwide.

“We anticipate that we will outgrow the allocated 130,000 sq ft and will tap the additional 60,000 soon enough.”

The firm, which was listed on Bursa Malaysia in March 2011, does not see its business slowing down in Malaysia any time soon.

/NST 16-05-2014 

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