KUALA LUMPUR, May 11 – Fruit retail chain operator, MBG Fruits Sdn Bhd (MBG) aims to multiply revenue to RM123 million in the next three years. Its Managing Director Adnan Lee Chong Fatt Abdullah said the target to double revenue would be made possible by having more outlets through the company’s staff entrepreneur programme (SEP). “From 2014 to 2017, MBG will be undergoing a dynamic expansion process to grow organically to 60 outlets from 25 currently, through the SEP and profit-sharing programme with its staff,” Adnan told Bernama in an interview recently.
Through SEP, he said employees with excellent performance valuation would be offered stakes at new outlets with the initial capital partly funded by the company. With a minimum capital of RM10,000, an enterprising employee of MBG could own a 10 per cent stake in a new venture and topped up the share to fully own the outlet as a franchisee, he said. According to Adnan, he incorporated MBG in 2001 and four years down the road, the company opened its first store in a shopping complex, Avenue K, along Jalan Ampang. The retail chain grew at a rate of three to five outlets annually and to date it has 25 outlets at strategic locations covering traditional markets, supermarkets and shopping complexes in the Klang Valley and Negeri Sembilan.
MBG, which stands for and advocates the “Money Back Guarantee” concept, posted RM47 million in revenue last year on the back of a staff strength of 240. For 2014, Adnan said the company was targeting a turnover of RM55 million, with the SEP entrepreneur plan kicking off with two pilot outlets to be launched in Shah Alam and Subang. “Next year, there will be five more projects under the SEP. As we plan to double our presence each year, by 2020, there will be 120 outlets with 50 under the entrepreneur programme,” the ambitious Adnan said. Adding to the expansion plan, he said MBG aimed to spread to the international market beginning 2017, targeting Indonesia, China, Bangladesh and the Middle-East.
Currently, the company already has a presence in Indonesia via MBG Seafood. Asked whether the company had plans for listing, Adnan said although MBG had qualified based on its consistent growth performance, he would only initiate the flotation exercise on Bursa Malaysia in 2020, with a target to becoming a public-listed company in 2025. By then, he said there should be 220 MBG outlets with 100 under the SEP. “Based on a study of MBG’s historical performance, market trend and a conservative growth projection, a 2,200 workforce in 2025 should be able to work out to RM627 million turnover annually. “I should be able to develop 100 new “fruiterers” millionaires by 2025 with the SEP and the equity sharing programme,” added the founder of the fruit retail chain.