KUALA LUMPUR (Oct 27): DXN Holdings Bhd (KL:DXN EDGE) said the company has plans to establish a coffee-processing factory in Minas Gerais, Brazil.
Its founder and executive chairman Datuk Lim Siow Jin said the move marks DXN’s entry into the biggest market in Latin America.
“Brazil is the next logical step in Latin America. The region is now leading the group’s growth, and we see the economies of scale, demographic profile and health-lifestyle awareness in Brazil as complementary to our strong presence in Peru and Bolivia,” said Lim at the Malaysia-Brazil Business Summit in Kuala Lumpur.
He said the Latin America market currently contributes about 60% — or over RM1 billion — to the group’s total revenue for the financial year ended Feb 28, 2025 (FY2025), and this share is expected to remain stable in the near term.
DXN currently has a strong presence in Mexico, Peru and Bolivia, with more than 10 million active members globally, of which 60% are in Latin America.
The investment in Brazil will involve both the construction of the coffee-processing facility and the transfer of Malaysian technology — including production of civet-style fermented coffee and tea made from coffee leaves, an innovation that is considered new to the Brazilian market.
“We plan to bring this technology to Brazil to introduce a new concept in the Brazilian coffee industry. Malaysia has strong expertise in developing value-added coffee products,” Lim said.
According to Lim, Brazil was chosen due to its similar climate and soil conditions to Malaysia’s, which allow for the cultivation and production of raw materials using DXN’s existing technology.
“What we plant and produce in Malaysia can be implemented there without many adjustments. This is a great opportunity for Malaysian entrepreneurs who want to expand their businesses into the region,” he said.
He added that the local government has offered attractive incentives, including 10 hectares of free land for the project, simplified investment procedures and lower land costs.
DXN’s share price closed up one sen or 1.94% to 52.5 sen on Monday, giving the group a market capitalisation of RM2.62 billion.
SOURCE: The Edge Malaysia
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