MANILA, Philippines - D&L Industries Inc. said it sees huge potential in its food-related business after it emerged as the fastest growing export of the company in the past five years.
Alvin D. Lao, D&L chief finance officer, said the food business is now contributing about 20 percent of the company’s total exports. It was zero five years ago, he said.
“The potential is big,” Lao said referring to the export of its food business in the coming years.
Overall, D&L Industries’ total exports business is continuing to do well according to Lao, “with first half growth at 31 percent and are now 18 percent of revenues.”
Oleo-Fats Inc. (OFI), D&L Industries’ wholly-owned subsidiary, is currently engaged in specialty fats and oils, refined vegetable oils, specialty ingredients, and food safety products.
It has over 650 food ingredient formulations serving more than 1,200 customers in the food and beverage industry.
OFI in August signed a supply agreement with US food manufacturer Ventura Foods, a deal that is expected to further boost D&L’s food-related business into the Asia-Pacific region.
The agreement involves the development and production of specialty oils and specialty ingredients for the food service, retail and ingredient manufacturing industries in the Asia-Pacific region.
Development and production will be done at OFI’s Mercury Plant in Quezon City.
“I don’t know how big it will become yet because it is still early. But I can say that the potential is very big. Initially, business will come from Ventura’s existing US customers with operations in the Asia Pacific,” Lao said.