DBE Gurney to garner RM10m sales from franchises

KUALA LUMPUR — Fully integrated poultry company DBE Gurney Resources Bhd’s wholly owned subsidiary, DBE Poultry Sdn Bhd, targets an estimated RM10 million from additional sales in the next 12 months.

DBE Gurney Resources Bhd group managing director Datuk Alex Ding Seng Huat said the company expects additional sales on the back of its joint venture (JV) with Distinct Legacy Sdn Bhd (DLSB).

The target is to establish 1,000 kiosks across Malaysia within the 12 months to August next year on the back of this partnership.

“We are quite confident that we will also be able to achieve our aim of 3,000 kiosks, 300 food trucks and 30 restaurants by 2018 year-end.”

“We project sales per kiosk to reach an average of RM300 per day, with a profit margin of around 40% for the entrepreneur. Since we are the one supplying the goods, we will be able to profit about 20% of each kiosk,” said Ding at the signing ceremony yesterday.

He noted the group’s expectations for the additional sales will only be reflected in the next financial year.

The JV business will be carried out by a newly set up company (SPV), whereby the shareholding shall be held by DBE Poultry and DLSB in proportion of 40% each, while the remaining of 20% is to be held by an individual investor.

This JV is to jointly establish a dedicated entrepreneur development programme that involves the establishment of Harumi retails outlets through licensing arrangements for the benefit of selected entrepreneurs.

In 2012, Distinct Legacy acquired the entire issued and paid-up share capital of Estinwira Sdn Bhd, the master franchiser of Killiney Kopitiam.

“So far, we have invested some RM10 million to develop and expand the brand,” said Destiny Legacy chairman Datuk Ahmad Ramzi Mohamad Zubir.

“It is our aspiration to become a multiple-brand franchise powerhouse and we are currently in discussions to acquire three more local food and beverages brands.”

He noted that the firm is already talking to six government agencies to take-on 1,000 Harumi kiosks each for their members and entrepreneurs.

“The programme would mostly appeal to lower income entrepreneurs who want to start their own businesses but do not have much capital,” said Ahmad Ramzi.

“With just a minimal investment of RM3,500 and no royalty fee, entrepreneurs will be provided all the necessary tools and equipment to start selling.”

DBE Gurney has a feed mill production capacity of 9,500 metric tonnes per month, six breeder farms, 11 broiler farms and a processing factory that has a capacity of 1.5 million chickens per month.

Ding said Harumi is a halal brand created by DBE coupled with Taiwanese expertise.

“It is our vision to create a local fried chicken brand that possesses local taste and at the same time, offers a franchise opportunity that will benefit young entrepreneurs who are looking to start out in the food and beverage industry,” he said.

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