An article about BP grown Munchy’s that appeared on The Star Online.
http://biz.thestar.com.my/news/story.asp?file=/2010/3/20/business/5897944&sec=business
I like their biscuits. Especially the Oats biscuits.
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Up Close and Personal with C.K. Tan
laalhunt@thestar.com.my
DESPITE heading Malaysia’s leading wafer and biscuit producing companies for almost two decades, C.K. Tan, the group chief executive officer of Munchy Food Industries Sdn Bhd was camera-shy during the photography session.
“Do we have to take these photos,” he asked warily.
Tan, hovewer, recovered his confidence and self-assurance quickly enough when he talked about the passion of his life, Munchy’s.
“Although homegrown, Munchy’s aim is to be a world renowned brand,” he says confidently.
Tan had not expected to be in his current position when he graduated from Connecticut state in the United States with a bachelor’s degree in Business Administration and International Business in 1993.
Due to his interest in information technology (IT), he took up a job as a software analyst in an IT company in the United States. Having just worked for over a year there to gain the experience, his father asked him to return to join the family business started by his two older brothers.
Both the brothers had earlier worked for Hwa Tai, also a well-known local biscuit company founded by his father and his siblings.
Having learned the ropes of the business, the brothers decided to branch out to start their own company in 1991 in their hometown in Batu Pahat, Johor.
They started off with only one second-hand wafer stick machine worth RM80,000 and concentrated all their energy to produce the highest quality wafer sticks around, Tan recollects.
Understanding the importance of brand building and brand affinity, they started looking for a name for their biscuit products.
The name Munchy’s is derived from the Chinese word mai qi – maimeaning flour or wheat, and qi means quality.
The first product to make its debut was “Yesss”, which was subsequently renamed “Yosss”. Following that successful launch, they relocated to their very own factory in 1996.
With 120,000 sq ft of real estate, they expanded their wafer output capabilities by investing in fully-automated wafer technologies, considered the most advanced fully-automatic wafer plant in South East Asia.
“We could have bought cheaper machines but we believed that the best quality machines would help you make the best quality products,” Tan explains.
The following year saw the introduction of MunchWorld Marketing Sdn Bhd, Munchy’s marketing arm and sole distributor of Munchy’s products as well as distributor and marketer for other leading FMCG brands such as Super from Super Coffeemix Manufacturing Ltd, Sipahh Milk Flavoring Straws from Unistraw International Limited as well as Mooncakes from The Baker’s Cottage Sdn Bhd.
Today, Munchy’s is the largest wafer producer and the second biggest biscuit producer both in terms of volume and value.
Munchy’s plant is fully certified with all the required quality marks it needs, including Good Manufacturing Practice or GMP, ISO 9000 as well as the Hazard Analysis and Critical Control Point Certification – which is an internationally recognised way of managing food safety.
According to Tan, the company almost went bankrupt during the Asian financial crisis in 1997/98.
“At that breaking point, we informed all our staff that the only way to survive the crisis was to grow our business further,” he notes. The crisis turned out to be blessing in disguise.
Within three years, Munchy’s grew from RM12mil in yearly revenue to RM53mil in 1999. Today, Munchy’s generates about RM300mil in revenue, while aiming for sales of RM1bil.
“We hope to achieve this target over the next ten years, if possible, five,” he adds.
After nearly two decades, Munchy’s now boasts an astounding production plant and warehouse facility that covers more than 400,000 sq ft in Batu Pahat.
The total built-up area of these facilities totals more than 300,000 sq ft and is fitted with two wafer plants with the capacity to manufacture up to 740 tonnes per month, four biscuit plants which can produce up to 3,400 tonnes per month, and four wafer stick machines with 16 production lines that have the capacity to produce up to 250 tonnes per month.
Besides owning state-of-the-art machines, another factor that sets Munchy’s apart from the rest of the competition is their investment in talent.
“We have a good and committed management team with a strong multinational background,” he asserts.
To ensure smooth running of the company, Tan and his three brothers had unanimously decided not to interfere in the daily operations despite it being a family business. Instead, the three of them sit on the board to provide guidance and direction.
“It is important for the team to move together in one direction in order to achieve our targets,” Tan notes.
Another area of strength is their focus on brand-building. In 2004, Tan engaged an international branding consultant to establish Munchy’s as a distinct brand.
“We described the journey the business had taken and our future plans. With some research and soul-searching, we came up with the theme – Colouring moments with cheeky fun,” he recounts.
The theme comes with catchy taglines such as “Bite Me”, “Nibble Me” and “Lick Me”.
“In line with our brand positioning, we try to incorporate all these bold and colourful elements into all our products,” Tan explains.
On his success leading the company thus far, Tan attributes this to his overall positive mindset. He enjoys reading business books and biographies. He has derived many lessons from these.
Tan is also a member of the Entrepreneurs Organisation and the Young Presidents Organisation, both international organisations that focus on business, personal and family growth via life-long learning.
“There is an old Chinese proverb – the world is my teacher,” he notes, adding that his father has also strongly influenced his business management style.
Not one to rest on his laurels, Tan plans to focus on growing Munchy’s into a regional brand for its next stage of growth.
The company, which has offices in Singapore and Thailand, is planning to increase its presence in Vietnam, China and Indonesia.
“We are in the midst of setting-up a sales and marketing company in China and are on the lookout for investments in Indonesia,” he shares.
Munchy’s has also bought land in Vietnam in order to set-up a plant to cater for the big market there.
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