FSED Industry Overview

Food service equipment includes all industrial-grade equipment used to aid the final preparation and delivery of meals to customers, usually at food service outlets. This equipment include hot cooking equipment such as industrial gas stoves and cooker hoods, rotisseries, grills, fryers, coffee makers, popcorn machines, and cold food service equipment such as freezers, refrigerators, salad counters and drinks dispensers. Food service equipment are highly specialised for application in large kitchens and are suited for the use of restaurants, cafés, fast food joints and other food service providers. The local food service equipment market derives its demand mainly from the demand of Malaysia's food market, specifically the food service market.

The Malaysian food service market was estimated to be worth over USD5 billion in 2008, with growth estimated to average around 7%-8% p.a. over the five (5) years preceding 2008. The food service market caters to the 28 million Malaysians as well as a large transient population of tourists and business travellers of almost 21 million people annually. A combination of a more hectic lifestyle and higher spending power has positively impacted the food service market and this trend is expected to be sustained moving forward. The structure of the Malaysian food service market in 2007 is depicted below:

Foodservice Equipment

The demand for the local food service equipment market is also driven by the food retail market as it has become increasingly common for retail outlets, typically larger supermarkets and hypermarkets to offer a full range of fully prepared foods to consumers. The Malaysian food retail market is a huge and booming market that is estimated to be worth approximately USD10 billion in 2008, with growth estimated to average around 6%-7% p.a. over the five (5) years preceding 2008. The food retail market has accelerated in tandem with the growing affluence of the country's population as well as increasing sophistication and modernisation of local's lifestyles. The structure of the Malaysian food retail market in 2007 is depicted below:

Kitchen Equipment

Market Share Analysis

The food service equipment market is estimated to value at RM291.7 million in 2009, of which our Group's FSED is estimated to have a market share of approximately 6.2%. Based on our market share, SCC Holdings Group is among the top ten (10) companies involved in the distribution of food service equipment in Malaysia.

(source: Independent market research report by Protégé Associates)