Following the larger output, KUB Tekstil, a wholly-owned subsidiary of KUB Malaysia Bhd, anticipates a corresponding increase in net revenue from RM13.1 million achieved last year.
KUB Tekstil general manager Abdullah Mahmood said to achieve the targeted production, the company will increase the factory capacity to 900,000 pieces from last year’s 500,000 pieces of school uniforms.
He said some of the production will be outsourced to the company’s vendors under strict quality control.
“We can expand the production of school uniforms at any time by hiring more workers. Our plant has a capacity of producing 1.2 million pieces of school uniforms per year, but we are currently running at 800,000 pieces per year,” he said in an interview with Business Times.
Kota Baru-based KUB Tekstil started its operation in 1997 as a contract manufacturer for export sportswear such as Adidas, JC Penny, Umbro and Nike.
Later, armed with high-tech machineries to make garments for export market, the company ventured into the production of school uniforms for the local market.
Abdullah said school uniforms have a lucrative market, which is estimated to be worth RM500 million based on the assumption that a student spends an average of RM100 for school uniforms each year.
There are some five million students in the country’s primary and secondary schools.
“We are targeting the middle and upper segment of the market, and those in the urban areas,” he said.
He said although KUB Tekstil’s market share of school uniforms in the urban area is some 10 per cent, the company is still the largest supplier of school uniforms in the country, as Canggih is sold nationwide, rural and urban areas included.
Abdullah said starting with some 70 department stores in 1997, Canggih today is sold at 350 local department stores and foreign hypermarkets throughout the country.
Among them are Sogo, Jusco, Carrefour, Tesco, Giant, Globe Silk Store, Ocean, Fajar, Aktif Lifestyle, Ngiu Kee Group (Sarawak) and Milimewa Group (Sabah).
Some of the department stores and hypermarkets have permanent counters for Canggih wear while others set up temporary counters during the “Back to School” promotions every year-end.
On top of that, there are also Kedai Canggih, where the brand is available throughout the year.
The company has four warehouses located in Kuala Lumpur, Ipoh, Kuantan and Johor Baru to enable it to meet the demand.
Abdullah said Canggih’s competitive edge lies in the quality and comfort of the wear as the attire is made by machinery meant for exported garments, and the price is affordable.
Currently, 90 per cent of Canggih school uniforms are sold through the department stores and hypermarkets, while 10 per cent through bulk purchase by corporate clients.
Corporate clients include charity foundations or companies that bought the uniforms to be donated to school children.
“Instead of buying from the counter at department stores, they can buy from us at a special price and we deliver the uniforms directly to schools,” he said.
Among corporate clients who have purchased Canggih from KUB Tekstil include Yayasan Al-Bukhary and Yayasan Pahang.
KUB Tekstil aims to expand the corporate clients segment to 30 per cent from the current 10 per cent.
Abdullah said the company also manufactures uniforms for workers in factories, hospitals and government agencies as well as bed linens for hospitals and clothing for patients.
The company’s 65,000 sq ft plant at Pengkalan Chepa Industrial Estate now has 205 operators, all of whom are highly-trained local workers.
Among plans in the pipeline include producing sportswear under Lasak brand name and introducing a range of casual wear for children.
November 29, 2003