A PIVOT in its business direction some 13 years ago has helped positioned Excelsia Technologies Sdn Bhd to capitalise on the current pandemic and set it for further growth on the back of rising awareness on hygiene.

       The disinfectant producer saw its business grow seven-fold over the past year as consumers and businesses cleared out shelves of disinfectant and cleaning products in the early days of the pandemic.

       Founded in 2007, the company had initially started off on the path of renewable energy, specifically dealing in solar power systems.

       However, founder and chief executive officer Sia Ban Ian felt that the local market wasn’t ready for the product at the time. Additionally, the tariffs set by Tenaga Nasional Bhd then were too low, which meant that the return on investment would take a long time – long enough for Sia to wonder if it should still be the product of choice for the company.

       “There was very little interest in solar power systems in 2007,” he says.

       The following year, Sia decided to look elsewhere.

       Excelsia Technologies ventured into the disinfectant business after discovering that air conditioning systems were harbouring a lot of germs and fungus which regularly caused people to fall sick.

       They researched and trialled a few solutions and eventually found a way to disinfect the air conditioning systems in cars and buildings.

       When Sia saw that they were on to a product that could take off, the company put its full focus on the disinfectant business in 2008 and sold their products under the Bactakleen brand.

       “We did find it challenging at first but we knew that the time would come for the products to gain traction.

       “Our journey began with the invention of our very first product, the Ultra Mist. It was designed with the sole purpose of addressing problems associated with bacteria and fungus in the air coming from air conditioning systems,” he shares.

       Sia notes that the traditional way of cleaning air conditioning systems have been focused on removing physical dust and dirt, but not many have considered removing bacteria and fungus when cleaning out the air conditioner.

       The company’s Ultra Mist solution was developed to be used with its mist machine, which helps eliminate bacteria and mold spores in the air conditioning system.

       According to Sia, the solution has been clinically tested and has shown to improve air quality.

       “It is still one of our best-selling products today,” he says.

       However, the product did not receive such a warm welcome when it was first introduced to the local market in 2008. Sia says the public was not properly educated on health issues associated with air conditioners at that time.

       Fortunately, it found favour with several car manufacturers who saw a need for the product at their workshops. This gave Excelsia Technologies an entry into the automotive industry.

       “Hyundai Malaysia, after realising the importance of such a system, was the first car company to offer the anti-bacterial treatment at all their service centres nationwide,” he says.

       Over the years, the company continued to enhance its solutions for further efficacy and efficiency and introduced more products to cover a wider scope.

       Sia attributes its product development capability to its technical team.

       “There were some challenges for us when we made the shift from renewable energy to the disinfectant business, but we had a few good technical partners on the team who were part of the chemical industry.

       “With them on board, the learning curve was not difficult. In fact, after two years we started to add new products to our range to enhance our offerings.”

       The company also started selling its Bactakleen products to the Philippines and India in 2010. And after participating in several international trade shows, it managed to secure more distribution in other countries, growing its export business rapidly from there.

       The export market was certainly far more lucrative and Sia says reception for its products was also much better as other countries had better appreciation for hygiene and health.

       Nonetheless, it had to ensure that its products met the various regulatory requirements for each country. Some countries required the products to be registered with local health ministries and it had to work closely with local distributors to get the products certified and registered.

       But this process also helped the company to attain important endorsements and meet standards, which gives it a long-term advantage in the international market.

       During the pandemic, the company also invested heavily into Covid-19 testing and has several products in its line-up tested to have efficacy against Covid-19.

       Currently, Excelsia Technologies exports its products to over 50 countries with a good foothold in markets like India, Indonesia, the Philippines, Japan, Australia, the Middle East and Mexico.

       “We are one of the very few disinfectant companies that are selling products in Japan which have the highest level of hygiene awareness,” says Sia.

       Exports currently make up more than 80% of the company’s sales.

       The group turns in an average revenue of over RM16mil and is looking at an average growth of 25%-30% year-on-year.

       Certainly, the pandemic has bolstered companies such as Excelsia Technologies and the group is aiming to grow its footprint further amidst high demand for disinfectant solutions.

       “We have been fortunate that our products are well received by Malaysians now, especially during this pandemic. Many thought that our products were from America and customers or corporate clients were impressed that our products can outperform imported products and yet be competitive on price,” says Sia.

       He adds that the majority of Bactakleen’s research and development is carried out in Malaysia.

       It works with several chemists and microbiologist associates, and is also supported by research partners from Europe and Japan. “We are always looking at gaps in the market where there are little to no competitors to develop products that offer high efficacy while being non-toxic at the same time. Safety is always our top priority.

       “Our focus on testing gives us an advantage over our competitors, hence, we were able to create confidence with our customers. We are also one of the very few companies with products backed by product liability insurance as a testament to the quality and safety of our products.

       “Our company currently provides a wide range of synergistic products of anti-bacterial treatments, covering the disinfectant industry at a greater capacity. For our company’s future plans, we are looking to further expand our reach to cover more industries and move towards innovation to add more products to our existing range.

       “Of course, the challenge to this will always be managing the cost of testing and marketing,” he says.

       Corporate clients currently make up more than 75% of its business. Excelsia Technologies has supply contracts with major companies such as Perodua, Shell, Hap Seng Group and Toyota Asia Pacific.

       While it is also looking at growing the Bactakleen brand in the consumer market, Sia notes that it is a challenging segment given that retail customers are often driven by price.

       “So by focusing on the corporate business, we can help companies address the problems they are facing with hygiene and the overall health of their clients and staff – which are ultimately the consumers. The corporate business is also longer term which allows us to better manage our production and planning,” he says.