Ni Hsin sets sights on China cookware market

SERI KEMBANGAN: Cookware manufacturer Ni Hsin Resources Bhd, which has secured exclusive distributorship for the world’s first starch-reducing rice cooker in Malaysia, Singapore, Hong Kong and China, is targeting to venture into the China cookware market this year.

Ni Hsin manufactures cookware for original design manufacturers and original equipment manufacturers, including the Buffalo brand. It also has an inhouse brand Pentoli for multi-ply stainless steel cookware.
About 90% of the group’s revenue comes from its export business. Its exports markets are Japan, Korea, Taiwan, Singapore, Thailand, Hong Kong, European countries, Australia and New Zealand.
“It’s sad that we’re not in China. This year, we’re going to penetrate China (with Pentoli). We take a small fraction (of the big population) and it’ll be a quantum leap of our sales,” said Ni Hsin’s wholly-owned subsidiary Inoco Resources Sdn Bhd managing director Khoo Chee Kong.
He said the Pentoli trademark has been approved in China and it is negotiating with a distributor there.
“We target to export to China in the second quarter,” he told a press conference after signing an exclusive distributorship agreement (EDA) with Grayns Malaysia Sdn Bhd for the distribution of Grayns starch reducing rice cooker yesterday.
On the demand for quality cookware, he said people are more health conscious and want quality cookware.
“The demand and purchasing power of Malaysians have slowed down but in China, people are looking for quality products and they want imported/branded products. In Japan, the replacement market is huge as every year the kitchens change their cookware and utensils. Our stainless steel cookware will continue to stay,” said Khoo.
Ni Hsin expects its revenue for the financial year ending Dec 31, 2017 (FY17) to surpass FY16 and FY15, driven by improved sales and new customers from China. Its FY16 sales fell due to the lost of several tenders.
Earlier, Khoo said Ni Hsin is targeting to sell 2,000 units of the Grayns rice cooker per year. It plans to distribute the product in China in 2018.
The EDA entered between Inoco and Grayns shall commence on Feb 18, 2017 for five years. The exercise is expected to contribute positively to the future earnings of Ni Hsin for the financial year ending Dec 31, 2017.
Grayns Malaysia is the inventor, patent rights holder and trademark owner of Grayns starch reducing rice cooker, a Malaysian technology. The product, a world’s first, is priced at RM2,288 per unit. It cooks rice scientifically and naturally, by removing the excess and unhealthy sugar content.
“Rice cooker is the highest selling home appliances in the world. The potential is huge,” said Grayns Malaysia managing director Zeeshan Khan.
The collaboration will enable Ni Hsin to further expand its core business in cookware products for both local and export markets.