After the initial couple of years of marketing and servicing the palm oil mills’ heating systems, Airvenco consolidated the market leadership to be virtually monopolistic (except for some local fabricators building local cost replacement heaters). With the experience gained, Airvenco expanded her business beyond the technical sales and distribution of heaters to cover heating system design, associated engineering design including undertaking the contract to fabricate, install and commission such heating systems.
Growing from these successes and confidence of the technology, Airvenco then diversified to other agro-based industries’ heating and drying applications. This resulted in Airvenco building up market leadership in the drying systems for latex gloves factories during the late 90’s latex gloves manufacturing boom in this part of the world. This market sector is growing towards contributing equal revenues as the traditional palm oil mills.
Another new market that has been recently field tested is the use of Novenco hot water heaters for padi drying in rice mills instead of the much more expansive gas drying. With the recent initial successes of this application for rice mills and the very attractive financial benefits in switching from the very expensive gas heating to hot water heating, this new line of business is expected to grow to be as large as that for the palm oil mills and the latex gloves markets.
These market successes translated to financial successes. Airvenco’s operation consistently generates very healthy profits and positive cash flow. The company is generating revenues of over RM15 million per year with generous profit margins. After 20 years of operation, the shareholders fund is now 200 times the total cash injections by the shareholders.
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