DELIMA OIL PRODUCTS SDN BHD IN MYANMAR

MARKETING OF MALAYSIAN PALM OIL

THE DELIMA OIL’S EXPERIENCE PRESENTATION BY MICHAEL LEE, SENIOR GENERAL MANAGER

DELIMA OIL PRODUCTS SDN BHD

MALAYSIA-MYANMAR PALM OIL TRADE FAIR & SEMINAR 28 JUNE 2013 TRADERS HOTEL, YANGON, MYANMAR

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EVERY JOURNEY BEGINS WITH A SMALL STEP…..

In 2010, a group of 10 delegates from Myanmar comprising of representatives from MEODA & UMFCCI visited FELDA Group Head Office in Kuala Lumpur for the purpose of:- Establishing business relationship and understanding Exploring the Malaysian palm oil business and its processes from plantation,

mills, refinery and marketing operations Site visits to plantations, mills and refinery

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EVERY JOURNEY BEGINS WITH A SMALL STEP…..

DEC 2012 – DOP commenced operations Yangon

2 NOV 2011 – Felda Rep Office, Located at Sakura Tower -

Opening in Yangon officiated By Tun Dr. Mahathir bin Mohamad,

4th Prime Minister of Malaysia

DEC 2011 – THE FIRST MAIDEN DELIVERY OF 6,000 MT CP8 OLEIN WAS SHIPPED TO MYANMAR ECONOMIC CORPORATION

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BUILDING OUR

FOOTPRINT IN

MYANMAR

JOINT INDUSTRY PROMOTION WITH MPOC TRADE

EXHIBITION IN YANGON

CONSUMER & TRADE

ROADSHOW

DISTRIBUTION AGREEMENT

WITH GRAND WYNN ENT

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Geo-Political Map

Yangon

Other than the United States, China and India have a substantial geopolitical interest in Myanmar because of the common border & its natural resources

India China

Population 1.1 Billion

Population 1.5Billion

Both China and India serves as an important market for products from Myanmar in the future

Thailand Population 80 Million

A NEW POTENTIAL GROWTH ENGINE FOR THE CONSUMER GOODS INDUSTRY

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MYANMAR’S NEW OPPORTUNITIES

PRESENCE OF LARGE CONSUMER MARKET FOR COOKING OIL

COOKING OIL WIDELY USED IN INDUSTRIAL MARKETS

LARGE CONSUMER MARKET

BREAK BULK INDUSTRIAL MARKET

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Types of Edible Oil Consumed in Yangon, Mandalay and Mawlamyine (Based on a consumer research study)

60% 60%

85%

8%

36% 34%

8%

91%

2% 7% 2% 3% 1%

TOTAL Yangon Mandalay Mawlamyine

Groundnut Oil Palm Oil Sesame Oil Other Oil

• 60% of respondents consume groundnut oil followed by 36% palm oil.

• Groundnut oil is more consumed in Yangon and Mandalay while 91% of housewives

in Mawlamyine area rely on palm oil

THERE IS POTENTIAL TO EXPAND PALM-BASED COOKING OIL, AS SHOWN BY HOUSEWIVES IN THE MAWLAMYAINE AREA

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Consumers' perception on attributes of edible oil

Attributes

Ground nut oil

Sesame oil

Palm oil Other

Vegetable oil Soy bean

oil Sunflower

oil Olive oil

Don’t know

Taste 97% 19% 3% 5% 2% 1% 2%

Smell 92% 34% 2% 2% 2% 3% 3%

Fresh 93% 15% 2% 5% 1% 1% 1% 2%

Convenient

to use

59% 7% 54% 5% 1% 1% 1%

Availability 65% 12% 72% 6% 2% 1% 1% 1%

Cheap 4% 2% 96% 5% 1%

Expensive 91% 19% 1% 2% 2% 2% 8% 3%

Nutritious 90% 10% 1% 4% 2% 1% 1% 5%

Suitable for

health

90% 18% 1% 5% 2% 1% 2% 1%

Packing 80% 8% 6% 8% 5% 3% 7% 16%

THE OPPORTUNITY : PALM-BASED COOKING OIL WIDELY AVAILABLE, IS CHEAP BUT MAINLY PURCHASED IN POOR

PACKAGING AND UNHYGIENIC CONDITION

DOP CHALLENGES IN MYANMAR

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THE MYANMAR CONSUMER PROPOSITION

● A BRANDED COOKING OIL

- SAJI Brand - Affordable Price

● RIGHT WEIGHT

● RIGHT SIZE

● RIGHT QUALITY

- Fresh From Our Own Plantations - Vitamin E

- Free Cholesterol - Excellent In Frying

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OUR STRATEGIC ENTRY IS

BEARING FRUIT

AND STRENGTHENS FURTHER WITH SAJI LAUNCH IN

MYANMAR MARKET

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SAJI LAUNCH IN MYANMAR - OUTDOOR

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SHOP BANNERS EVERYWHERE

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EVEN ON SALES & DELIVERY VEHICLES

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SAJI FOOD CARNIVAL AT JUNCTION MALL MAWTIN

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PROMINENT DISPLAYS IN SUPERMARKETS

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AVAILABILITY IN ALL

COOKING OIL RETAIL

OUTLETS

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WORKING IN CLOSE PARTNERSHIP WITH OUR LOCAL DISTRIBUTOR-GRAND WYNN ENTERPRISES,YANGON

FRONTLINE SALES TEAM FROM GRAND WYNN 18

OUR MYANMAR LEARNINGS

UNDERSTANDING THE LOCAL MARKET AND CULTURE IS KEY – Consumers are looking for good quality cooking oil at the right price

COLLABORATIVE RELATIONSHIP WITH LOCAL PARTNER – Working closely together to face a dynamic competitive environment

SALES & LOGISTICS – Make best use of existing infrastructure whilst welcoming new ways of doing things better

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ACKNOWLEDGEMENT OF OUR SINCERE THANKS

MALAYSIAN PALM OIL COUNCIL (MPOC)

MYANMAR EDIBLE OILS DISTRIBUTORS ASSOCIATION (MEODA)

MYANMAR ECONOMIC CORPORATION (MEC)

GRAND WYNN ENTERPRISES LTD

MAJOR (R) AMIR ALIAS, FORMER FELDA SPECIAL REPRESENTATIVE

CONTRIBUTORS TO THE SUCCESS OF DELIMA OIL PRODUCTS IN MYANMAR

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