Value Creation Case Studies

Al-Ikhsan Sports Sdn Bhd

Al-Ikhsan Sports Sdn Bhd

Background

  • Al-Ikhsan is the largest multi-brand sports retailer in Malaysia with over 100 corporate-owned outlets and ~40% market share. The company retails sports equipment, apparel and footwear from major brands such as Adidas, Nike, Puma, Asics and Lotto.
  • Al-Ikhsan is the principal owner of the brand AL and markets various sports goods under the trademark AL Logo.

Investment Rationale

  • A market leader with strong outlet presence in peninsular Malaysia
  • Attractive & robust domestic sportswear industry with CAGR of ~8% in the 5 years prior to Ekuinas’ entry
  • Clear future growth drivers through private label and Omni- channel opportunities
  • Margin improvement opportunity via business process optimisation and investment in technology

Transaction Details

Investment type
Investment in a strong Malaysian company
Acquisition Date
July 2016
Ownership
35.0%

Key Value Creation Metrics

  • Growth Strategy

    • Expanding market reach via new category specialist store concepts i.e. Football Republic & new lifestyle brand
    • Strategic planning of outlet development and store expansion
    • Creating long-term strategic growth plans for private label / licensed brands
  • Corporate Governance & Financial Discipline

    • Implementation of strong corporate governance, performance reporting and improved accounting controls
    • Capital structure optimisation and strengthening of working capital management
    • Strengthening long-term financial planning and merchandising planning and forecasting process
  • Technology Transformation

    • IT system transformation through upgrading of ERP system
    • Optimising business decision making process via leveraging on BI analytics
    • Positioning company for digital era – rolling out of e-Commerce, CRM and Omni-channel platform

Ekuinas has contributed so much into ‘corporatising’ Al-Ikhsan as the Company is now run by industry professionals. This collaboration will continue to add value to Al-Ikhsan’s long term growth strategies.

Tuan Haji Ali Hassan

Founder & Chairman

X

We are closed until 14th April 2020 in compliance with the Movement Control Order by the Malaysian Government.

During this period, the Company has implemented measures to ensure operations continue as usual and can still be contacted via staff's email and mobile.

For any inquiries, please email us at info@ekuinas.com.my

Thank you and stay safe.