SIGNATURE International Bhd (SIB) has entered a joint venture agreement with Singer (Sri Lanka) PLC in a bid to enter the market of kitchen cabinets in Sri Lanka.
The JVA, which is between Singer and SIB’s wholly owned subsidiary, Signature Manufacturing Sdn Bhd (SMSB), will regulate the business arrangement between the two parties in pooling their expertise, with Singer also granted the exclusive right to promote, market, and sell SIB’s range of kitchen cabinets and inbuilt wardrobes.
The JVA also does not involve equity participation nor the setting up of a joint venture company. However, SMSB is in the midst of setting up a wholly owned subsidiary called Signature Kitchen Lanka Pvt Ltd to undertake the business operation.
According to a bourse filing by SIB dated Aug 18, SMSB would bring into the venture its kitchen expertise, technical knowledge and know-how in relation to the distributing and management of the operations of retail and project business of its products, and SINGER shall set up the product display set at its existing showroom to promote, market and sell the products.
“The collaboration between the JV parties is leveraging the synergies, complementary strengths and brand reputations from each business force to penetrate into the kitchen cabinets market in Sri Lanka.”
“The board of directors, having considered all aspects of the joint venture, is of the opinion that the joint venture is in the best interest of SIB,” said the group in the filing.
At 4.37pm, SIB’s shares were last done at a static 31.5 sen, with 232,800 shares traded. – Aug 19, 2020
