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The  Star  Online  >  Business

Friday  January  21,  2011

Mydin  opens  new  hypermarket  in  Penang

By  DANNY  YAP  
danny@thestar.com.my

PETALING  JAYA:  Homegrown  wholesale  and  retail  giant  Mydin  Mohamed  Holdings  Bhd  has  launched  a  new  hypermarket
in  Bukit  Jambul,  Penang.

Mydin  managing  director  Datuk  Ameer  Ali  Mydin  said  another  hypermarket  would  soon  be  operational  at  Meru  Raya,
Ipoh  in  Perak.

“We  will  have  seven  new  hypermarkets  by  the  end  of  this  year  and  another  seven  by  2013,”  Ameer  told  StarBiz
yesterday.

On  average  it  would  cost  about  RM150mil  to  build  a  hypermarket  and  typically  it  had  to  be  at  least  50,000  sq  ft.  Mydin
has  purchased  the  14  sites  for  the  hypermarkets  for  RM165mil.

Datuk  Ameer  Ali  Mydin  says  Mydin  will  have  seven  new  hypermarkets  by
the  end  of  this  year  and  another  seven  by  2013.

The  investment  in  the  new  hypermarkets  across  the  country  would  come  from  Mydin's  internally  generated  funds  as
well  as  bank  borrowings.

To  date,  Mydin  has  57  branches  nationwide,  including  four  hypermarkets,  18  emporiums,  two  bazaars,  24  mini  markets
(MyMydin),  three  24-­‐hour  convenience  stores  and  six  franchises.  “We  expect  sales  to  increase  to  RM1.6bil  this  year  from
RM1.35bil  last  year  in  line  with  the  uptrend  in  the  domestic  economy.”

On  competition  from  foreign  hypermarkets,  Ameer  said:  “Intense  competition  is  expected,  especially  from  foreign
hypermarkets,  but  we  believe  Mydin  will  remain  resilient.”

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He  said  one  of  the  major  strengths  of  Mydin  was  its  ability  to  bring  local  and  overseas  products  at  affordable  prices  to
cater  for  a  large  segment  of  the  population.

On  a  possible  listing  of  Mydin,  he  said  there  was  no  hurry  to  do  so  as  the  company  was  still  expanding  to  achieve  higher
economies  of  scale.

“Listing  is  not  a  favourable  option  for  now.  Decisions,  especially  on  expansion  plans,  would  be  slow  if  we  are  a  listed
entity,”  Ameer  said.

On  speculation  of  an  impending  change  in  Mydin's  shareholding  structure,  he  said:  “There  is  absolutely  no  truth  to  this.”

There  was  market  talk  that  Hap  Seng  Consolidated  Bhd  would  be  involved  in  the  shareholding  change  of  the  group.

“Mydin  shareholders  are  all  in  the  Mydin  family,  there  are  no  outside  shareholders  and  Mydin  does  not  plan  in  any  near
term  to  divest  any  of  its  shareholding,”  Ameer  said.

©  1995-­‐2011  Star  Publications  (Malaysia)  Bhd  (Co  No  10894-­‐D)

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