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DelstAsia Advancing into Next Phase

MIDA Insights - Going Global Series

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Founded by Mr Steven Goh in 2002, DelstAsia Sdn. Bhd. (DelstAsia) began as a marketing company, acting as the sole-agent for Delst Inc, USA in distributing DMX-7, a food-grade grain and feed conditioner, for the Asian market. Being a new player then in the animal feed industry was a great challenge. DelstAsia had to compete against well-established international MNCs that had stronger brand names and more resources to hold firm to their market share. However, given the products’ outstanding field results and ability to solve industry-specific challenges of tropical climate grain storage and handling, it managed to sell itself.

DelstAsia’s principal, Delst Inc., was also relatively new in the industry. Hence, it was not able to fully enjoy the benefits of economies of scale in its production, resulting in higher production cost and higher selling price for its products compared to its competition. The business also faced higher logistic costs and uncertainties in delivery schedules. These factors hindered the company’s growth.

In 2013, DelstAsia made a strategic move to overcome these limitations. With the assistance of the Malaysian Investment Development Authority (MIDA), it acquired the technical know-how from their principal Delst Inc, USA to produce its products in Malaysia. The undertaking involved a full transfer of knowledge and acquisition of business from their USA principal. This move totally transformed DelstAsia’s business.

Over the subsequent five years, sales grew more than eight times, customer base increased, and business spread to the greater South Asian region compared to solely within South East Asia. In tandem with the growth, DelstAsia invested in human resources and research and development (R&D) activities. Incentives awarded by MIDA also gave DelstAsia an additional boost to establish a strong footing and gain recognition within the industry.

DelstAsia’s growth story doesn’t end here. In fact, it has just begun.

The company is now aiming to position itself as a significant player in the world stage. For the next phase, it will be emphasising in three areas: increasing R&D activities, disseminating information and increasing production capacity. To achieve these goals, it has purchased a plot of land in Selangor Halal Hub to build a state of the art Centre of Excellence.

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DelstAsia’s innovative R&D has revolutionised the industry by identifying areas of weakness in the animal feed making industry and tailoring a customised solution to these problems for their customers. Some notable inventions that have been patented by the DelstAsia’s R&D team include the Forensic Feed Science™ and Mash Hydrolysation™ technology. Looking ahead, the team is in the phase of designing new products for the food industry, which is expected to launch in the near future.

With the significant outcomes of DelstAsia’s R&D backed by science and actual field achievements, more and more industry players are accepting its concepts. To further this, the company needs a platform to disseminate their findings to the industry.

The planned Centre of Excellence will be the place to showcase its work, sharing knowledge as well as for academicians and industry players to gather and exchange information.

With these positive developments planned, DelstAsia is also preparing to increase production capacity and capability, both in terms of quantity and quality. The new production facilities will be fitted with IR4.0 technology and compliant with the highest food safety standards.

DelstAsia is hopeful that these undertakings will be in place by 2021, making it a formidable name in the world stage as a successful Malaysian organisation.

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Last Updated : Thursday 22nd October 2020