Hextar Industries Berhad (HIB) is officially pivoting away from the volatile fertiliser sector to focus on Malaysia’s booming coffee culture. The company announced today that it is selling its entire equity stake in three fertiliser entities to related party Hextar Global Bhd (HGB) for a total of RM120 million.
The strategic exit will see HIB redeploying RM100 million (approximately 83.3% of the proceeds) directly into its rapidly expanding Food & Beverage (F&B) retail business, specifically to fuel the aggressive rollout of Luckin Coffee outlets across Malaysia.
The disposal involves the sale of PK Fert Sdn. Bhd., PK Fertilizers Sdn. Bhd., and Hextar Fert Sdn. Bhd. HIB’s management noted that while the fertiliser business was a foundational pillar, the sector has become increasingly hindered by global commodity price volatility and thinning margins.
By offloading these assets to Hextar Global—which aims to consolidate the fertiliser business with its existing agrochemical operations to create regional synergies—HIB can free up significant capital for higher-growth consumer segments.
“Our strategic pivot is driven by the need to balance a cyclical, commodity-based business with a more resilient, consumer-centric growth model,” said Mr. Benny Ang, Group Managing Director of HIB. “This shift allows us to build a portfolio of brands with direct and recurring consumer engagement and more predictable cash flows.”
Hextar Industries first entered the F&B space in late 2024 through its subsidiary, Global Aroma Sdn. Bhd., securing exclusive rights to operate the tech-driven Chinese coffee giant, Luckin Coffee, in Malaysia.
With the new RM100 million war chest, the group plans to: Accelerate Outlet Openings: Moving beyond the initial launches in Sunway Pyramid and EcoWorld Bukit Bintang to establish a nationwide presence. Strategic Diversification: Exploring additional F&B ventures through joint ventures or direct acquisitions of existing retail networks. Digital Integration: Leveraging Luckin’s “mobile-first” ordering model to appeal to Malaysia’s young, digitally-native population.
Because the F&B segment is expected to exceed 25% of the Group’s net assets, HIB is seeking formal shareholder approval for the “Proposed Diversification.”
Source: Business Today
