FGV subsidiary and DKSH sign distributorship agreement

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KUALA LUMPUR (Sept 17): FGV Holdings Bhd's wholly-owned subsidiary Delima Oil Products Sdn Bhd has signed a distributorship agreement with DKSH (M) Sdn Bhd to widen the distribution of FGV’s downstream products across hotels, restaurants and cafes in Peninsular Malaysia.

In a joint statement, FGV and market expansion services provider DKSH said the agreement involves the distribution of food manufacturer Delima's products including cooking oil, creamer and margarine, across Peninsular Malaysia's food service industry.

FGV group chief executive officer Datuk Haris Fadzilah Hassan was quoted as saying in the statement that the collaboration is part of the group’s strategic plan to expand its downstream business by penetrating into the untapped food-service market.

Haris Fadzilah said there is huge demand for halal and high-quality ingredients in hotels, restaurants and cafes.

"We hope to tap into this demand because food service operators are attractive customers, as they order in large quantities and on a recurring basis.

“DKSH has a wide and efficient distribution network that could build and further position Delima as a dominant edible oils and fats player in the domestic market, and eventually the international market,” he said.