GEORGE TOWN (Jan 7): Eng Kah Corp Bhd, which specialises in cosmetics and beauty products, expects two major deals in Australia and the United Kingdom (UK), which it hopes to ink by year-end, to contribute 20% to group revenue in its new financial year ending Dec 31, 2015 (FY15).

Its chairman and managing director Ewe Eng Kah told reporters today after the group's EGM that Eng Kah is in the final stages of discussion with a major chain store company in Australia and a leading pharmaceutical brand in the UK.

“These companies have conducted audits on our group to assess our product quality. We cannot mention their names because we have not finalised the documents yet.

“However, we are confident of these overseas ventures. It would be signed by the end of the year. We believe these deals will contribute about 20% to our group revenue,” he said.

Being the largest contract manufacturer of toiletries and household products in the country, Eng Kah lists US beauty retailer Avon Products Inc., Kimberly Clark Corporation and Berjaya Group’s subsidiary Cosway (M) Sdn Bhd as its clients.

Ewe said Eng Kah exports to countries in the Middle East too - which contributes about 5% of its annual revenue - but that its largest market is still Malaysia.

Despite the softening global economy, Ewe is positive that the group sales would not be badly affected due to the nature of its products.

“Generally, the market conditions of this industry are stable. We would not be affected even if the economy is bad because ours are fast-moving consumer goods. They are used daily. It is a different story if world war broke out,” he said.