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The Health | April, 2020
| Cover Story |
Among tycoons in the country,
Lim, 62, is known to be one who
puts great emphasis on health
for both himself and his staff.
He exercises regularly, plays
badminton and golf and makes
time for yoga. He equates the
human body to a smart factory.
“If we put in good food/raw materials
consistently, we will produce good body
cells and be healthy. My health is my
wealth. Money cannot buy life and time.
However, good health can earn you time.
The value of 10 years can be worth millions
or billions of dollars,” said Lim, who
became a full vegetarian in 2018.
Forbes puts him as Malaysia’s 14th
richest person with a wealth of US$1.35
billion (RM5.94 billion).
Who would have presumed that Lim,
who started with a single factory with one
glove production line and a hundred staff,
would one day build an empire and become
the world’s leading gloves manufacturer,
supplying up to 26 per cent of the world’s
rubber gloves?
It has 18,000 employees and factories
in Malaysia, China and Thailand with
marketing offices in these countries as
well as in Brazil, Germany and the US. Its
44 factories have 711 production lines with
a production capacity of 73.4 billion gloves
per annum. Its products reach more than
195 countries.
How did he do it? Lim believes
that building a company is similar
to constructing a tower, by which a
strong foundation is a necessity. He
said it provides a safe and healthy work
environment for employees.
“We have in place various initiatives
prioritising employee health and
wellbeing, including annual medical
check-ups, having our company gym
which employees can join for free and
Some of Top Glove's
products: Biogreen™
Biodegradable nitrile
gloves, industrial
supported gloves, and
condoms.
Top Glove Tower, Setia
Alam.
arranging health talks. This is in line with
what I call the 5 Quality Wells,” said Lim.
(see Q&A)
TA Securities in a recent research report
said Top Glove’s production capacity could
increase to 82 billion gloves per annum end
2020 and 91.4 billion by end 2021.
Lim concurs.“We have access to
sufficient raw material, and our production
capacity, which is presently at 90 per cent,
can be ramped up to 95 per cent or 100 per
cent in line with demand requirements.
As for our factory within the Jiangsu
Province in China, it is operating as
usual. However, we will continue to take
precautionary steps to safeguard the
wellbeing of our employees and ensure
they continue to practise good hygiene
and abide by the guidelines issued by
authorities.”
CGS-CIMB Research in a report
said Top Glove and other rubber glove
manufacturers would record higher
margins due to the current Covid-19
outbreak as the global demand for rubber
gloves has surpassed levels experienced
during the SARS and H1N1 outbreaks in
2003 and 2009 respectively.
During the recent Movement Control
Order (MCO), Top Glove did not halt the
production and distribution of rubber
gloves as it is deemed an essential item for
the medical industry.
From a single glove production line,
Top Glove has expanded to numerous
hand protection products, sexual wellness
products, dental care products, and other
products including exercise band, latex
tourniquet and latex sheet. It utilises
futuristic equipment such as robotic arms
and electron microscope scanners and
conducts tensile tests and protein tests to
ensure a product is of top quality.
Will it continue to diversify?
“As a growing and dynamic company,
we will continue to expand. A company
of our size will need to diversify to grow
faster and more efficiently. To improve
expeditiously and efficiently, we must
adopt a two-pronged approach comprising
both organic and inorganic growth (via
mergers & acquisitions (M&A). To this
end, we will continue to build one or two
factories every year.
“We will also continue to explore M&A
opportunities in similar and related
businesses for better synergy. Our focus
is on companies with good valuations
which can immediately contribute to our
business. Gloves will still be the Group’s
main product, but we will always be on
the lookout for opportunities to diversify
our business to other healthcare-related
products,” said Lim.
Asked about the current Covid-19
rapidly spreading around the world, Lim
replied: “Our advice would be to follow
the guidelines issued by the healthcare
authorities. Ensure you keep proper
hygiene and use gloves, masks, and hand
sanitisers when necessary. We should
also be mindful of fake news,” he said.
— The Health