KUALA LUMPUR (May 23): EG Industries Bhd has clinched a two-year contract worth US$36 million (RM146 million) from Swedish-based Shortcut Labs AB to be the sole manufacturer of a wireless smart button, known as Flic.
Flic is the world's first wireless smart button that creates a shortcut to favourite actions on mobile devices. It creates physical shortcuts to digital functions in mobile devices. With Flic, one can control lights, take picture, play music, call a cab, share instant location, and much more.
The electronics manufacturing services player said it has signed an agreement to undertake full-scale manufacturing of Flic for the worldwide market and to distribute Flic in Asia.
EG Industries group chief executive officer and executive director Alex Kang said the contract has opened prospects for the group to support the fast-growing adoption of smart interconnecting devices, apart from affirming its proposition as a one-stop manufacturing partner.
"With Flic continuing to evolve in the coming years, we are well-poised to ride this momentum of worldwide adoption," he said in a statement today.
"The group perceives tremendous potential of this device. Hence, in addition to producing Flic, we are also their sole distributor for Asian market and in the near future, would also explore potential opportunities in [the] Australasia region," he added.
Having secured International Procurement Centre (IPC) status, EG Industries said it intends to offer value-added services through one-stop vertical integration solutions, including distribution.
Flic was officially launched globally in October 2015, with EG Industries undertaking its trial production. Within six months, over 100,000 units of Flic were sold chiefly in the US and Europe, leading to the full commercialisation of its production.
Shortcut Labs has also begun teaming up with various partners to integrate Flic into its product and services for user convenience.
In November 2015, pizza delivery company Domino's launched "The Easy Order" system in Britain at a touch of a Flic button, and automaker Volvo is set to introduce Flic compatibility for its "Volvo On Call" alert system.
Shortcut Labs co-founder and chief operating officer Amir Sharifat said the group's motive behind Flic was to come up with a small device to replace all remote controllers, making the user's life more simplified.
"We are overwhelmed by the popularity Flic has gained over a short span of time," he said, adding that the contract is the company's next step towards building a strong partnership with EG Industries, following their commendable manufacturing support during Flic's launch.
"With EG Industries' commitment, we are able to focus on exploring potential markets globally," he said.
At 2.43pm, the share price of EG Industries stood at 84.5 sen, for a gain of 0.5 sen or 0.6%, after 89,200 shares exchanged hands. At this price, the company is valued at RM178.52 million.