PETALING JAYA: Homegrown wholesale and retail giant Mydin Mohamed Holdings Bhd has launched a new hypermarket in Bukit Jambul, Penang. Mydin managing director Dato' Ameer Ali Mydin said another hypermarket would soon be operational at Meru Raya, Ipoh in Perak.
“We will have seven new hypermarkets by the end of this year and another seven by 2013,” Ameer told StarBiz yesterday. On average it would cost about RM150mil to build a hypermarket and typically it had to be at least 50,000 sq ft. Mydin has purchased the 14 sites for the hypermarkets for RM165mil.
The investment in the new hypermarkets across the country would come from Mydin's internally generated funds as well as bank borrowings. To date, Mydin has 57 branches nationwide, including four hypermarkets, 18 emporiums, two bazaars, 24 mini markets (MyMydin), three 24-hour convenience stores and six franchises. “We expect sales to increase to RM1.6bil this year from RM1.35bil last year in line with the uptrend in the domestic economy.”
On competition from foreign hypermarkets, Ameer said: “Intense competition is expected, especially from foreign hypermarkets, but we believe Mydin will remain resilient.” He said one of the major strengths of Mydin was its ability to bring local and overseas products at affordable prices to cater for a large segment of the population.
On a possible listing of Mydin, he said there was no hurry to do so as the company was still expanding to achieve higher economies of scale.
“Listing is not a favourable option for now. Decisions, especially on expansion plans, would be slow if we are a listed entity,” Ameer said. On speculation of an impending change in Mydin's shareholding structure, he said: “There is absolutely no truth to this.”
There was market talk that Hap Seng Consolidated Bhd would be involved in the shareholding change of the group. “Mydin shareholders are all in the Mydin family, there are no outside shareholders and Mydin does not plan in any near term to divest any of its shareholding,” Ameer said.