MEGA Global Corp. has set aside around P500 million for its expansion and acquisition plans for 2020 and 2021, officials of the canned goods manufacturer said on Thursday.
“We are allocating at least P500 million for expansion for the whole year this year and next year,” Mega Global Chief Operating Officer Michelle Tiu Lim Chan said in a virtual briefing.
She said the budget also covers funds for the company’s target to increase operating capacity by 20%.
“Because the company is vertically integrated, when the demand increases, we have to increase all of the steps — from fishing, to canning, and to demand,” she said.
Mega Global Founder and Chief Executive Officer William Tiu Lim said the company is on the lookout for broadening its horizons through acquisitions or mergers such as taking in fast-moving consumer goods brands.
“We have a complete network from the north all the way to the south of the country. We really need to have that network so that we can maximize distribution,” he said.
Mr. Tiu Lim said the coronavirus disease 2019 (COVID-19) pandemic has taught valuable lessons to Mega Global, especially on issues relating to logistics and business operations.
“Our plans, especially our marketing programs, are no longer applicable. We have to be able to act fast and apply changes that we need to adapt to the situation, help the community, and address consumers’ needs. Our plans moving forward from this pandemic should be future-ready and flexible,” he said.
In celebration of its 45th anniversary and to show its gratitude to frontliners, Mega Global offered assistance through its Mega Malasakit Kitchen program, wherein the company distributed cooked meals to those who offered services that benefited the community during the lockdown.
The company said it had distributed more than 40,000 meals to frontliners such as checkpoint officers, barangay health workers, volunteers, supermarket staff, bank staff, security guards, and street dwellers.
Meanwhile, Mega Global Chief Growth and Development Officer Marvin Tiu Lim said the company is open to partner with entities offering products that fit the same target market.
“We are open to accept, acquire, or partner with any products that can fit our target market we currently distribute now such as supermarkets and public markets,” he said.
He said part of the company’s allocated P500-million expansion budget will be used for the construction of a new manufacturing plant in Luzon.
“The new manufacturing facility lets the company cater to its target market in Luzon and also gives us access to raw materials. Hopefully, it lets us expand into other categories,” he said.
Asked if the company is planning to go public, he said the option is not off the table, but said the move might take Mega Global around two to five years to be ready.
“This process takes time. We want to go for an initial public offering conservatively. We want to build on our reputation and our name and hopefully, carve out a part of our company of which we can share and grow with the public,” he said. — Revin Mikhael D. Ochave
