KUALA LUMPUR: Sand Nisko Capital Bhd (SNC) is allocating up to RM50 million for capital expenditure (CAPEX), which includes investments into new or upgrading machinery.

       In a statement today, the wood furniture maker said it is also looking to create alternative income streams through potential mergers and acquisitions (M&As) of environmentally friendly businesses involved in bio fertiliser and refined-oil products.

       "Bio fertiliser provides better efficiency and output for trees, while refined oil is a recycled oil product that is reproduced as a lubricant and additive oil and biodiesel for the automotive industry,” the group said.

       Executive director Lee Ping Wei said SNC has targeted companies with vast experience and a strong track record in this area, allowing the group to gain immediate exposure in an industry with a high entry barrier.

       "We like environmentally friendly businesses due to their positive impact on the environment and

       preserves natural resources. The potential M&As in this space are also in line with our sustainability

       mission -- prevent physical waste, improve resource productivity, improve profitability and enhance competitiveness.

       "The company also has machinery in place for both the bio fertiliser and refined-oil business. So, instead of investing in the knowledge and building our own capacity, these M&As could put SNC on a fast track to expand,” he said.

       Aside from that, Lee said the penetration into these businesses will target a new customer base for the

       the group, as the bio fertiliser sector targets both plantation companies and government agencies.

       Similarly, the refined-oil business will meet the demand in the automotive industry, he said.

       "We will explore new sales channels and customers under the new expansion. Among the target

       customers include plantation companies, both private and government agencies, and those in the automotive industry.

       "Based on our research, bio fertiliser is in strong demand, especially among plantation companies and government agencies looking for higher yields in crops and reducing the fertilising cost,” he said.

       Lee also noted that refined oil is suitable for customers who need quality base oil to be reproduced into final products,” he said. - Bernama