By Arra B. Francia Reporter
D&L INDUSTRIES, Inc. (DNL) targets to have its export business contribute half of the company’s total revenues by 2025, banking on the expansion of a facility in Batangas and its entry into new markets in the Asia-Pacific region.
The listed food ingredients, plastics, and aerosol manufacturer said exports accounted for a fourth of its P27.78-billion revenues in 2017, from its 18% contribution in 2016. Food ingredients made up bulk of the company’s exports at 45%, followed by oleochemicals and other specialty chemicals at 28%, and specialty plastics at 27%.
“May seven years pa ko to do that (I have seven years to do that),” DNL President and Chief Executive Officer Alvin D. Lao told reporters last week after being asked when the company expects to achieve 50-50 revenue contribution from overseas and domestic sales.
Mr. Lao said the planned expansion in Batangas will support this revenue contribution target, as half of the products to be manufactured in the new facility will have to be exported.
“Yung bagong expansion sa Batangas, nasa PEZA zone (The new expansion in Batangas is inside the Philippine Economic Zone Authority special economic zone)… So you can say that this expansion in Batangas is going to help our goal of reaching 50% export (target) because whatever we make there, the minimum export is 50%, so it is aligned with the goal,” Mr. Lao said.
DNL is in the planning stages for the construction of a new facility at the First Industrial Township-Special Economic Zone in Batangas through its subsidiary, Natura Aeropack Corp. The company said this expansion will help support its growth in the next 20 years.
The facility is set to be completed in 2021.
Mr. Lao said the company has more than 10 proposed deals on the table at the moment.
“We’re focusing mainly on Asia Pacific… In general, Asia Pacific is really our target because it is near,” he added.
The company is now present in China, Hong Kong, Japan, and Indonesia, through its recent acquisition of United States-based food manufacturer Ventura Foods.
This year, the company targets to book a net income of P3.2 billion as it expects to sustain its growth momentum in 2017. The firm is allotting P500 million for its capital expenditure program in 2018, mainly for its existing facilities.
DNL increased its earnings by 10.6% to P2.9 billion in 2017, against the P2.63 billion it delivered in 2016. This was driven by a 25% rise in sales to P27.8 billion.
Incorporated in 1971, DNL focuses on research and development for the manufacture of food ingredients, colorants and plastic additives, aerosols, and oleochemicals, resins, and powder coatings.