Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Saturday, November 17, 2007

Boh Tea successor - Caroline Russell

Caroline lives up to challenge of being No. 1
By Leong Hung Yee
Saturday November 17, 2007


Inheriting a business that has been doing great sounds good to some of us but this was not the case for Caroline Russell.

The chief executive officer of Boh Plantations Sdn Bhd who inherited the tea business from her father Tristan Russell, felt she could not be complacent about the company founded by her grandfather John Archibald Russell in 1927.

Caroline Russell

“It was tough for me especially since the business was already doing so well that I had no choice but to bring the company to greater heights.

“The challenges then and today are not dissimilar. Boh has held a market leadership position in Malaysia for a long time. To maintain that clearly is the key focus and the challenge,” Caroline said in an interview with StarBiz.

She joined the company’s marketing department in 1988 after graduating from the University of Edinburgh, Scotland, with a bachelor of commerce degree and worked her way up to her current position.

Her passion for the business and determination to bring the company to higher levels are among the contributing factors for the good track record and reputation Boh Plantations has today.

“I knew that my responsibility in Boh Plantations was beyond profitability when I took over the family business,” she said.

Boh Plantations is currently the leading tea grower in the country. It owns four tea gardens, of which three – in Boh, Sungei Palas and Fairlie – are located some 5,000ft above sea level in Cameron Highlands. The fourth is in Bukit Cheeding, Selangor. Collectively, the gardens constitute a total planted and mature area of 1,200ha.

The company produces four million kg of tea annually, translating to about 5.5 million cups of tea per day. And about 70% of all tea produced in Malaysia comes from the Boh gardens. Besides being the leading brand in Malaysia, Boh also exports to Brunei, Singapore, Japan, the United Arab Emirates and the US.

Caroline strongly believes in efficiency because it has been fuelling the growth of Boh Plantations.

Some of Boh’s beverage products. It has one of the widest ranges of tea products covering herb and fruit infusions, standard and premium teabag blends, hot and cold instant tea mixes, and a wide selection of flavoured teas.
Some of Boh’s beverage products. It has one of the widest ranges of tea products covering herb and fruit infusions, standard and premium teabag blends, hot and cold instant tea mixes, and a wide selection of flavoured teas.


She said the company had leveraged on technology to mechanise the various processes of the tea business but the most important aspect is moving with the times, where marketing is concerned.

“We have been looking at methodology at our plantations to improve yields as well as the harvesting process,” she said, adding that the company continuously invests in research and development, and looks at ways to improve business.

As with all businesses, Boh Plantations has its share of competition but Caroline maintains rivalry is good as it motivates all to work even harder.

“The market has become somewhat challenging as consumers are becoming more affluent and have higher expectations, thus constant innovation is required.

“Keeping abreast with consumers’ expectations is all the more challenging because as the more established brand, consumers have even higher expectations of us.

“We cannot afford to rest on our laurels,” she said.

She added that the company was constantly researching on what consumers want in a beverage product, and exploring how tea can deliver on future consumer needs.

Over the years, the company has expanded its tea offerings. It has one of the widest ranges of tea products covering herb and fruit infusions, standard and premium teabag blends, hot and cold instant tea mixes, and a wide selection of flavoured teas.

Caroline said Boh Plantations also hopes to help preserve the environment. Its past efforts included collaborating with the Department of Wildlife and National Parks and the Smithsonian Institute of the US.

In 1997, Boh Plantations supported the Malaysian Elephant Satellite Tracking Project and the WWF for Nature-Malaysia, in the Orang Utan Habitat Restoration project.

The Malaysia-born and bred Caroline, who speaks with only a slight trace of a British accent, believes that business and investing is about taking risks, but above all, you have to be realistic and practical.

She is every bit the urban working mother of two, trying to balance work and family.

“It can be done and is not difficult. You just have to compromise on both sides,” she said, adding that she hopes to find more time for her family.

“It is never an optimal balance, but I think as long as you make a concerted effort to lead a more balanced life, half the battle is won,” she said.

She enjoys painting but with two young children aged two and four to care for, there is little time to indulge herself.

Although she also loves reading, that too takes a back seat to a “splashing time” in the pool with her children.

On her success, Caroline credits having supportive people around both at home and at work. -- The Star Business.


Monday, October 29, 2007

Hotel sector high on investors’ radar screen

Hotel sector high on investors’ radar screen
By Angie Ng
Monday October 29, 2007


Foreign groups are coming in greater numbers to acquire hotels in Malaysia, especially in the Klang Valley, to take advantage of the good value and expected strong growth in the industry.

Last year, a whopping 85% of the value of hotel transactions in the country was by foreigners compared with 44% in 2005.

Foreign investments in hotels grew by 64% last year with foreigners, including regional chain players, hotel funds, foreign investment funds and individuals, making up 42% of the ownership of 4- and 5-star hotels in Kuala Lumpur now.

According to Zerin Properties chief executive officer Previndran Singhe, the growing interest among foreigners in the hotel sector was triggered by the strong growth in the tourism sector and the economy.

Generally the foreign investors were from the region and the Middle East, he said, adding that there was also a growing interest from investors in Singapore, Thailand and Europe and American funds and hotel chains.

“The advent of low-cost carriers and the strong tourism drive may create an insatiable appetite for hotels,” Previndran told StarBiz.

In the past few years, Zerin Properties has concluded a number of hotel transactions within and outside the country for foreign groups.

“We are basically hotel dealmakers in the region. We are in the midst of concluding a sale in Indochina and selling a resort in the Philippines, and has been appointed by a Middle East fund to negotiate the purchase of hotels in the region.”

Hotel transactions in Malaysia

Previndran said Zerin was also involved in hotel sales in Vietnam, the Philippines, Indonesia, Australia and other emerging markets.

As the exclusive agent for the asset disposal programme of the Sheraton Chain of Hotels in Malaysia, it concluded the sale of the 207-room Sheraton Perdana in Langkawi for RM77.5mil and the 267-room Sheraton Kuantan for RM36.6mil in 2005.

It was also involved in the sale of the 149-room Merlin Johor Baru for RM10.46mil and the 66-room Merlin Inn in Cameron Highlands for RM13.5mil.

Last year, the 100-room Grand Centerpoint in Kuala Lumpur was sold for RM12.5mil, and the latest deal was the sale of the 91-room Four Seasons in Langkawi for RM435mil.

The 452-room Westin Kuala Lumpur was sold for RM455mil in 2006, or a whopping RM1mil a room

“Malaysia has some of the finest hotels in the region and the growing number of foreign brands and players is adding a new dimension to the local hospitality sector.

“The hotels here are on par with other international markets and the local industry is leading in terms of product innovation through products such as The Datai, Hilton Batang Ai and Tune Hotel.

“New hotels coming in with truly leading designs include Maya Hotel and KL Hilton, which are niche in their market positioning and are market leading,” Previndran said.

Renovation work to spruce up some of the leading existing hotels such as Shangri-La Kuala Lumpur, Sheraton Imperial and The Regent is also underway.

With the tourism drive, average room rates (ARR) for 5-star hotels have moved up by at least 20% over the past two years while other categories of hotels have recorded an ARR increase of to 5% 10%.

Hotel occupancy rates in the Klang Valley have also increased from the mid-60's two years ago to about 70% now.

In August, 4- and 5-star hotels recorded an average occupancy rate of 86% while the average room rate climbed to RM361 from below RM300 previously.

“Moving forward, I think we are going to see a consolidation of hotel ownership – from fragmented ownership to chain ownership, and maybe even a hospitality-based real estate investment trust (REIT) like the Starwood REIT in the US.

“These consolidated owners will be locals and foreigners from the region who are already chain owners. There is also a strong Middle Eastern interest coming into the market, mainly in the premium properties,” Previndran said.

He said more top class brands, such as Conrad and Intercontinental, were expected to come into the market in the near future.

Ownership of 4 and 5 star hotels in Kuala Lumpur.

“On the other end of the spectrum, more chain-based limited service hotels in the likes of Ibis, Formula 1 and Holiday Inn Express will also be making its presence felt. I also see interest in resort locations picking up tremendously.”

Around the region, Previndran said Vietnam was experiencing a boom in the hotel industry due to shortage of good hotels.

“We see strong opportunities in the Vietnamese cities and resorts for premium and limited service hotels.

“The Philippines is also a good market as the population base is big and its islands are truly a big attraction for the Korean and Japanese markets.

“Australia is also another strong market, with Sydney being the most visited city in the Asia-Pacific.” -- The StarBiz