Top Glove Corporation Berhad Expansion
Optimum Currency Area (OCA) Theory
October 7, 2022Competition in India’s Textile Industry
October 7, 2022Top Glove Corporation Berhad Expansion
1. INTRODUCTION
Top Glove Corporation Berhad founded by the husband and wife team of Tan Sri Dr. Lim Wee-Chai, as a company chairman and Puan Sri Tong Siew Bee, executive director. Establish in Malaysia in 1991, Top Glove operated with only one factory with three second-hand production lines. Nowadays, it is known as the world largest rubber glove manufacturer. Top Glove embarked an impressive expansion plan with the following position:
World’ Largest Rubber Glove Manufacturer
Existing
(As at December 2010)
1. Number of Factories
20
2. Number of Production Lines
379
3. Total pieces of Gloves Produced (per year)
33.75 billion
4. Number of Employees
10,900
5. Countries of Export
180
6. Number of Customers
900
Top Glove was listed on Bursa Saham Kuala Lumpur’s second board in 2001 and has been successfully promoted to the Main Market of the Kuala Lumpur Stock Exchange on May 16, 2002. Top Glove has over 15 years of experience in production of latex examination gloves (HWANGDBS Vickers Research, 2008). It has also diversified overseas and set up four factories in Thailand and two in China, in addition to the 12 facilities it has in Malaysia (CIMB Research Report, 2007).
1.2 Company’s Core Business
Top Glove’s nature activities are manufacturing and trading rubber gloves, synthetic gloves and surgical gloves which are mostly used in medical, industrial and food & services industries. With an approximated 80% of their product is in the form of natural rubber gloves and the remaining 20% are synthetic gloves (CIMB Research Report, 2007). Top Glove acts as a “one-stop glove centre” by offering a full range of services, from manufacturing glove products to packaging, branding, sales as well as distribution of finished glove products through its three primary sales offices in Klang, Malaysia; Azusa, California and Duisburg, Germany (HWANGDBS Vickers Research, 2008). About 95% of the company sales are for the export market.
1.3 Financial Performance
According to annual report 2009, Top Glove has successfully achieved the company growth by showing the increase in net profit for the financial year. The remarkable growth of 54% of net profit in the year 2009 as compare to the year 2008 showing that Top Glove fully utilizes the advantage of its listing as public company to generate growth that is beneficial to the shareholders.
