Brahim's dependency on MAS will be narrowed to just 50% in terms of earnings & it would put to rest accusations of its cannibalisation of MAS

Brahim’s diversification course away from MAS

Published: 20 February 2015 12:53 PM

Although Brahim's Holdings Bhd is a major supplier of meals for Malaysia Airlines (MAS), credit must be given to the in-flight caterer for its efforts to diversify its earnings base over the long term.

Besides supplying meals to 30 other airlines and its RM95 million acquisition of the Burger King business in Malaysia and Singapore, the company is now in the process of becoming a supplier of halal food for the 2020 Tokyo Olympic Games.

It started the ball rolling by penetrating Japan via the export of food products and forging alliances with local departmental stores to showcase its wide range of halal products.

With the current number of Muslim tourists visiting Japan mainly from Malaysia and Indonesia, Tokyo sees increasing requests for halal meals and prayer rooms.

Some 35% of the athletes are expected to be Muslim at the Tokyo games, with the Olympics in London in 2012, drawing 3,000 Muslim athletes and officials.

As far as Japan is concerned, it wants to be a Muslim-friendly country by halal food available extensively at the Tokyo Olympics, for which Brahim's is well positioned to deliver.

Brahim's is also the major food caterer for the Jordanian military to the tune of supplying 500,000 ration packs. The tie-up with the Jordanian army also sets the stage for a wider role in the Arab world.

This is evident by the contract to supply a minimum 10 to 12 million meals annually to pilgrims in Mecca by 2016.

The company has even gone a step further by introducing special dish washing machines which incorporates Islamic "samak" or the cleansing of utensils according to Islamic rites.

It is extending this "expertise" to the 30 foreign airlines business partners.

Just recently, Brahim's entered into a memorandum of understanding to take a major equity in an abattoir in Australia to supply halal beef.

Meanwhile, the acquisition of 54 Burger King outlets in Malaysia and 41 in Singapore is set to contribute RM300 million to the company's annual turnover and again, reinforcing its zest to diversify away from MAS.

Taking all these measures into account, there is no doubt that Brahim's is moving in the right direction in emerging as a global halal meal provider and in the process reinforcing Malaysia's strategic role in the global halal market. Once all this comes to fruition, the company's dependency on MAS will be narrowed to just 50% in terms of earnings and it would put to rest accusations of its cannibalisation of MAS. – Bernama, February 20, 2015

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