Coffee with Samso: The business of making gloves - nitrile gloves

The glove-making business is one of those sectors that does not call out for attention. The recent COVID-19 pandemic has brought the sector out of hiding and into the limelight. It is a simple business that is making many companies very profitable. This is not a common business in Australia, in fact, apart from VIP Gloves Ltd (ASX:VIP) there is no other company on the Australian Stock Exchange that can call themselves glove makers. Malaysia is the market leader in the glove-making industry. The big four major producers - Top Glove Corporation Berhad, Hartalega Holdings Berhad, Supermax Corporation Berhad and Kossan Rubber Industries Berhad - are world market leaders in this sector. Story of gloves In this episode of Coffee with Samso, Sebastian Chang, non-executive director of the company, shares with the story of VIP and the business of glove makers. Sebastian shows us that the business is not about the COVID-19 pandemic, but it is all about Occupational Health and Safety factors that are driving the business. Sebastian also highlights why he thinks the glove business will keep its course of high demand and growing sales. Profit margins will be sustained and the ASP (Average Selling Price) will continue to increase, but at a slower rate for the next 12 to 24 months. About VIP Gloves Ltd VIP Gloves Ltd (ASX:VIP) is a public company whose shares are traded on the Australian Securities Exchange (ASX). Malaysia is the home to many of the world's largest rubber and nitrile glove producers. Over the past 10 years, Malaysia has grown to become the world's largest producer of rubber and nitrile gloves, accounting for over 60% of global glove production. VIP Gloves was established in 2016 to manufacture nitrile disposable gloves from its plant located in Selangor, Malaysia. Currently, its products are sold to local and overseas distributors under original equipment manufacturer (OEM) basis. Holding strong to its core values, the company ensures continuous improvement efforts are undertaken beginning with research and development through to manufacturing and delivering the best quality gloves for customers - hence best quality and smart choice. About How Weng (Sebastian) Chang Non-executive director and member Executive Committee How Weng (Sebastian) Chang has over 25 years’ experience in the regional investment environment in Malaysia, in the areas of stockbroking, corporate finance, fund management and venture capital investments in Malaysia as well as in the Asian region. He also served as chief operating officer and held directorships in several public listed companies and their subsidiaries. Sebastian is currently the principal and chief executive officer of a boutique financial consulting firm which provides services to clients in the areas of public flotation, mergers and acquisitions, and corporate restructuring exercises. He was educated in Malaysia and USA and holds a Bachelor of Business Administration (cum laude) degree majoring in Finance & Banking, and Management. Please let us know your thoughts and send us any comment to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media, and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google. For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au Samso is primarily a consulting company that delivers digital information to the market in terms of creating organic content. Samso simplifies your story to customers or investors. Samso creates organic content for you to engage your audience and BRAND yourself to them. Samso provides bespoke research and presentation for clients to engage their customers or investors. Organic content allows audiences to feel a real sense of sincerity when you share your business strategy, allowing your business to stand out among the sea of social media traffic. Working with Proactive Group allows exposing our Insights to over 1.2 million monthly unique views internationally. Samso has nearly 30 years of experience in developing business ideas and concepts in the Australasian region. Samso has worked primarily in the mineral resources industry, capital markets and corporate finance. Noel Ong is the founder of SAMSO.   Disclaimer Samso and affiliated companies accept no responsibility for any claim, loss or damage as a result of information provided or its accuracy. The information provided is general in nature, not financial product advice, see a financial expert before making any investment decision. Your personal objectives, financial situation or needs have not been taken into consideration. There may be a conflict of interest present with commercial arrangements with companies and/or stock held. Samso or an associate may receive a commission for funds raised.