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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
On the operational side, there has been emphasis on improving
operational efficiencies and minimizing our environmental
footprint in our supply chain and production processes. The
new can body welder installed at IFC’s plant last year has
contributed in a smoother operation, improved workflow and
better plant efficiencies. In addition, our businesses also work
closely with suppliers and customers to develop the best cost
and solutions without compromising on product quality or
service level.
The capacity challenge facing the business around continually
satisfying customer demand requirements is being addressed
on an ongoing basis by capital expenditure (“CAPEX”)
projects. On this note our CAPEX for the year totaled RM4.59
million and is primarily related to new facilities and expansion
or improvements of facilities at our sites.
The Division’s operating model for the coming year is focused on:
• growing the business organically through the introduction
of innovative products and by expanding IFC’s export
markets especially within the European Union;
• leveraging the synergy potential across the KFIMA Group,
including sharing of technical expertise, cross-selling
opportunities, customer relationships and procurement
efficiencies;
• achieving cost efficiencies through increased specialisation
and investments in key technologies as well as reviewing
and optimising our environmental footprint in every phase
of the value chain given the growing trend towards more
sustainable processes; and
• in the case of IFC, to continue maintaining a strict position
on marine resource sustainability within its operating
principles. IFC’s production plant in PNG has received the
Marine Stewardship Council (“MSC”) Chain of Custody
certification - an indication that we meet international
best practice in each step of the manufacturing process.
MSC certification has become the market standard for
seafood, especially in the European market, given the high
degree of competition and consumers’ growing preference
towards sustainably-sourced seafood. We remain staunchly
committed to the sustainability agenda and have put in
place strategic alliance with raw material suppliers and
fishing companies not only to ensure that our supply is
sustainable, but also the products are responsibly sourced
and traceable from catch to can. Further information on the
Division’s sustainability performance can also be found in
the Sustainability Report.
As we move forward, we are cognisant of various risk factors,
including currency and interest rate volatility, high commodity
prices and the outlook for the PNG economy. Despite these
challenges, we are confident in the robustness of the business
strategy and the ability of the Division to develop profitably
and increase shareholder value into the future. This, together
with a number of CAPEX programmes across the business,
have significantly increased our geographic footprint, market
offerings and product range and puts the Division on a strong
footing for future growth.
Food Division