A few days ago, a Malaysian friend sent me a news push, titled “VS Industries bag the Bissell contract .” The content of the news is relatively simple, the general idea is as follows:
VS Industrial and Bissell reached a three-year cooperation agreement, this cooperation began on February 27. The contract will be automatically renewed at the end of the next year. This agreement does not specify the specific contract quantity and amount. On the 15th of each month, Bissell will give VS Industries a forecast for the next six months.
The news itself doesn’t have much content. What makes people more curious is that Bissell has always been so fast in this industry’s shift to Southeast Asia.
As we all know, last year, a large number of domestic Vacuum cleaner enterprises went to Southeast Asia to rent houses and build factories. However, the China Chairman and Trump reached an agreement that the tariff will not changed until March 1st, so companies such as Lexy also stopped their footsteps in Southeast Asia. I used to talk to these past friends and said that it was suspended.
VS Industries is one of Dyson’s major manufacturers in Malaysia. At present, Bissell’s main domestic factories are mainly are EUP and Shenzhen Flextronics. The transfer to VS Industry should be a mature model. From the perspective of cost, personal guess may be transferred from Shenzhen Flextronics. Or the speed will not be so fast.
Another curious thing is that Dyson’s major manufacturers has signed an exclusive cooperation agreement with Dyson. It is understood that VS is still producing AirWrap products for Dyson. Currently, it is in short supply. If without Dyson permission, VS It is unlikely to work with others.. Then how about the exclusive agreement ?
I simply sorted out some information about VS Industries, letting everyone refer to our competitors abroad.
VS Industry Berhad was established in 1982 and listed in Malaysia in 1998. After years of development, VS Industries is a well-known EMS (Electronic Manufacturing Service) provider in Southeast Asia and ranks among the top 50 EMS foundries in the world.
VS has a large number of companies, the following picture is the company structure:
In FY 2018, VS’s sales reached RM 4.09 billion (about 6.7 billion yuan), and the profit was about RM150.8 Million (about 248.8 million yuan), an increase of 12.20% compared with 2017.
In terms of turnover, Malaysia accounted for 76% (about RM3,888.2 million), China accounted for 17% (about RM 6.930 Million), and Indonesia accounted for 7% (about RM 304 million).
The data for the 2018 fiscal year (ending July 31) is as follows:
Financial analysis data of 2018 gross margin of about 10.7%, net profit margin of about 3.7%
The chart below is a five-year financial data. The annual compound growth rate of sales is 24.3%. I don’t know if it is driven by Dyson’s global sales.
The figure below shows the number of employees and gender in the factory: 62% for women in 2018, 38% for men; 77% for under 30, 22% for 30-50, 1% for 50 or more; Malay for nationality is 17 %, Chinese is 6%, Indian is 1%, others are 76%.
