DRB-HICOM Berhad (DRB-HICOM) is one of Malaysia’s leading corporations, involved in the automotive manufacturing, assembly and distribution industry through its involvement in the passenger car and four wheel drive vehicle market segment, the national truck project and the national motorcycle project.
DRB-HICOM assembles cars in Malaysia for Honda, Isuzu, Suzuki, Mercedes-Benz and Volkswagen, Besides automotive concerns, the group’s core business focuses are in the services and property & infrastructure sectors. Originally, it was incorporated in 1980 as the The Heavy Industries Corporation of Malaysia Berhad (HICOM). It experienced rapid growth and in 1996 merged with Diversified Resources Berhad (DRB) to form the biggest conglomerate in Malaysia.
DRB-HICOM is the majority shareholder of Malaysia’s national car company, Proton, with China’s Zhejiang Geely Holding Group the other shareholder since an equity sale in 2017.
PROTON Holdings Berhad – DRB-HICOM is a majority shareholder of PROTON, with Zhejiang Geely Holding Group Limited owning 49.9% equity in the national car company.
The Group also owns national motorcycle company Modenas, with Japanese two-wheeler giant Kawasaki as its partner.
DRB-HICOM assembles cars in Malaysia for Tata Motors, Honda, Isuzu, Mercedes-Benz and Volkswagen, with plans for expansion. The Group also retails various brands such Audi (via Euromobil Sdn Bhd), Mitsubishi (via EON Auto Mart Sdn Bhd) and Volkswagen (via HICOM Auto Sdn Bhd).
Headquarters: Shah Alam, Malaysia
Founded: 2000
Public limited company Traded as MYX: 1619
ISIN MYL1619OO005
Stock price: DRBHCOM (KLSE)
In year 2000, DRB-HICOM formerly known as Diversified Resources Berhad undertook the merger of four listed companies within its stable namely, DRB-HICOM, Gadek, (Malaysia) Berhad, Gadek Capital Berhad and HICOM Holdings Berhad (“HICOM”) with an aggregate market capitalization in excess of RM6.0 billion.
HICOM had been instrumental in leading the nation’s drive towards industrialisation and among its major achievements was the development of the National Car Project. Meanwhile, DRB-HICOM was instrumental in the development of Malaysia’s first national motorcycle and Malaysian-made truck in collaboration with international automakers.
In year 2006, the Group was acquired by Etika Strategi Sdn Bhd and became one of the three flagships of the AlBukhary Group of Companies. Accordingly, DRB-HICOM looks forward to harnessing synergies to be derived from the other AlBukhary flagships – engineering heavyweight, MMC Corporation Berhad and plantation, property and agro-based, Tradewinds Corporation Berhad and Tradewinds (M) Berhad.
DRB-HICOM was in the vanguard of the nation’s foray into heavy industry and the Group has held fast to its original role of nation building. The Group’s principal activities currently are in the automotive, services and property & infrastructure sectors.
The Group’s automotive sector is involved in the manufacturing of components and the assembly and distribution of cars, trucks and motorcycles for the passenger, commercial, mass transport and defence automotive markets. In addition, the Group is also involved as an importer and service provider for CBU and CKD vehicles as well as pre-delivery inspection.
The services sector provides inspection of vehicles, solid waste management, insurance, full service provider for airlines and distributor for MIDEA, a leading brand in the white goods market. The services sector has been strengthened with the recent acquisition of Bank Muamalat Malaysia Berhad and Rangkai Positif Sdn Bhd which provides operations and maintenance services for Tanjung Bin Power Plant.
The property business is in development, engineering, infrastructure and construction.
Fully Integrated Automotive Business
DRB-HICOM is a fully integrated automotive company involved in every link of the automotive chain: from the manufacture of automotive components and assembly to distribution and after sales support for a wide range of vehicles – motorcycles to passenger, commercial, defence and customised vehicles such as buses, ambulances, police vehicles, fire trucks and garbage compactors.
While concentrating on the domestic market, we have made inroads into the export market, especially in component manufacture and assembly. We have world class assembly and manufacturing facilities and the expertise for complex and precision engineering. Apart from serving our own automotive needs, we are also contract manufacturers for national and global carmakers and OEMs (Original Equipment Manufacturers).
The future is bright for this business, as the Group shapes up as a regional CKD hub, given growing recognition of its international standard manufacturing facilities, strong logistical support and good infrastructural facilities.
On the distribution front, the Group has strengthened its position, with a growing number of franchises from international automakers. Most importantly, it is evolving from a franchise holder to become a joint venture partner with manufacturers such as Honda, Isuzu and Suzuki.
Core Automotive Businesses
PROTON is Malaysia’s largest manufacturer of automobiles, and the only full-fledged automotive OEM in South-East Asia. It is headquartered in Shah Alam, Selangor with its manufacturing plants both in Shah Alam and Tanjung Malim, Perak. Incorporated on 7 May 1983, PROTON pioneered Malaysia’s venture into the heavy industries.
Also in the Group’s portfolio, is the world-renowned Lotus sportscar brand. In May 2017, DRB-HICOM announced plans to sell a 49.9% stake in Proton and a 51% stake in Lotus Cars to Geely Automobile Holdings. The deal was signed in June 2017,
The Group has eight world class assembly plants. Four of them are for motor vehicles – three at the integrated assembly complex in Pekan, and one is the Honda plant in Melaka. There are also four motorcycle assembly plants, one each for MODENAS, Honda, Yamaha, and Suzuki.
The integrated complex in Pekan, Pahang is the crown jewel of assembly operations. Designed for passenger, commercial and defence vehicles, it has a proven reputation to attract international manufacturers, with supply chains and logistical network to achieve the critical mass and momentum needed to propel Pekan as the serious automaker for the ASEAN market.
The second automotive assembly plant is Honda Malaysia, established exclusively for Honda models. It also manufactures related parts and accessories.
Like Honda, the four motorcycle assembly plants are dedicated brand operations for MODENAS, Honda, Yamaha and Suzuki. We assemble engines & component parts for Honda and Yamaha and finished motorcycles for Suzuki and our very own brand, MODENAS. Each is a stand-alone unit, involved in the complete chain – from downstream component manufacturing to assembly, marketing, sales and export of the respective products.
HICOM Automotive Manufacturers (Malaysia) Sdn Bhd (HAMM) is the crown jewel of the Group’s assembly operations. Located at the Pekan integrated assembly complex, it sprawls over a 57-hectare site, and is equipped with excellent infrastructure facilities. Operating flexible multi-model lines, the assembly operations boast high production standards and exceptional quality control programmes. Its painting line has a capacity of 60,000 units per year.
HAMM was awarded the contract to assemble the Mercedes Benz C and E class in 2005, followed by the S class in 2006, making the Group the first assembler of the current ‘S’ class model outside Germany.
The plant assembles the following models on a contract basis:
– Suzuki Swift, LDV Maxus
– Daewoo bus chassis
– Iveco Maxi-Bus
– Mitsubishi Fuso (Commercial vehicle)
Incorporated in 1983, HAMM is a wholly owned subsidiary of DRB-HICOM Berhad.
Honda Malaysia is a key performer in the Group. It has its own manufacturing plant in Melaka that assembles popular Honda models such as the City, Civic, Accord, CR-V models. The imported models are Stream, Jazz, Odyssey, Civic Type R, and the Civic Hybrid. It also manufactures and markets Honda parts, accessories and merchandise.
With the government incentive to encourage vehicles with green engines, competitive pricing on the advanced Honda technology Honda Civic Hybrid 1.3 litre is expected to boost sales significantly. The company has also invested in a Constant Velocity Joint (CVJ) plant to cater to the needs of Honda plants worldwide. It is the third outside Japan, after the USA and Belgium. CVJ components from Malaysia plant are exported to Thailand, Indonesia, Philippines, India, Pakistan and the United Kingdom.
Incorporated in November 2000, Honda Malaysia Sdn Bhd is a joint venture between Honda Motor Co. Ltd. of Japan (51%), DRB-HICOM Berhad (34%) and Oriental Holdings Berhad (15%).
ISUZU HICOM assembles the national commercial vehicle – HICOM Perkasa light duty trucks and Isuzu N-series light duty trucks for domestic and export markets. The plant also assembles Isuzu F & C Series (heavy duty trucks) and Isuzu D-max pick-up trucks for Isuzu Malaysia Sdn Bhd.
ISUZU HICOM was previously known as Malaysian Truck & Bus Sdn Bhd. It is owned by Isuzu Motors Limited of Japan (51%) and DRB-HICOM (49%).
Suzuki Malaysia is the sole distributor of Suzuki vehicles, which includes both CBU and CKD units, parts and accessories in Malaysia. Partnering with a globally renowned automotive brand is part of an ongoing strategy to strengthen DRB-HICOM’s position as the country’s largest integrated automotive manufacturer and distributor. CKD vehicles are assembled at the Group’s integrated assembly plant in Pekan. Suzuki models have won various awards for their quality and appeal. The Swift 1.5 CKD won the “Asian Auto Fuel Efficiency Awards 2008” while the Suzuki Grand Vitara won the prestigious Autocar Asean Awards 2008 (small/mid-size SUV category). Not to be outdone, the SX4 hatchback drove off with the “Stuff Malaysia 2008 Reader’s Choice SUV/MPV Award 2008”.
Incorporated on 2004, Suzuki Malaysia is a Joint Venture between DRB-HICOM Berhad (40%), Suzuki Japan (40%), Itochu Japan (20%)
Suzuki Motorcycle Malaysia Sdn Bhd specialises in assembly of motorcycles as well as sales and marketing of Suzuki motorcycles and scooters, related spare parts and after sales service.
HICOM-YAMAHA Manufacturing Malaysia Sdn Bhd (HYMM) is one of the leading manufacturers of Yamaha motorcycle engines, ranging from 105-135 cc. Other activities include machining and painting of motorcycle engine components including crankshafts for Yamaha and Minarelli of Italy.
The plant is upgrading the assembly line to be more flexible and able to accommodate various model line-ups and raise capacity to 160,000 units per year, while also increasing local content to generate better margins.
Incorporated in 1983, the company is a joint-venture between DRB-HICOM (45%), Hong Leong Industries (30%), Yamaha Motor Company Ltd., Japan (19%), and Lembaga Tabung Haji (6%).
HICOM-HONDA is the No. 1 manufacturer of motorcycles for six consecutive years. It has been specialising in the manufacture of Honda motorcycle engines and components of cub models since 1985.
In 2008, HICOM-HONDA made substantial investments to cast the first Honda scooter engine ever to be manufactured in Malaysia. Mass production for the new Honda scooter – ICON – began in January 2009. For future models, new Honda technology will be used for the cylinder head and crankcase, utilising a simplified design leading to higher engine efficiency. Its principal activities are machining, assembling and testing motorcycle engines and components such as crankcases, crankcase covers, cylinders, cylinder heads, crankshafts and camshafts. The company also exports Honda engine components to other Honda motorcycle assembly plants in Vietnam, Indonesia and the Philippines.
Incorporated in 1983, HICOM-HONDA Manufacturing is a joint-venture between DRB-HICOM (48%), Honda Motors (30%), Boon Siew Motors (19%) and Lembaga Tabung Haji (3%).
DEFTECH is a contractor of land based military vehicles to the Ministry of Defence. The company explores all opportunities as a major defence vehicles player to secure contracts for the supply, maintenance and refurbishment of land-based military vehicles.
Incorporated on 1996, DEFTECH is a wholly owned subsidiary of the Group.
HICOM Diecastings Sdn Bhd is a leading Tier-1 high pressure aluminium diecast parts manufacturer in the region. It supplies specialised steering housing components to international Tier-1 companies such as ZF Malaysia, ZF’s overseas operations in USA and Germany, TRW Malaysia and Emerson of USA.
HDSB has diversified from its automotive base to supply non auto pump housings for the oil and gas industry, components for the building and construction sectors and for medical equipment, and cylinder blocks for motorcycles.
Incorporated in 1985, HICOM Diecastings is a wholly owned subsidiary of DRB-HICOM.
HICOM-Teck See Manufacturing Malaysia Sdn Bhd (HTS) is a one-stop centre for plastic products – design, development, testing, injection moulding, assembly and painting.
It manufactures bumper modules, instrument panels and door trim assemblies. HTS’s main customers in Malaysia are Proton, Perodua, Johnson Controls, Honda and Toyota.
Its wholly-owned subsidiary, HICOM Automotive Plastics (Thailand) Ltd., targets the overseas market. It began operations in 2003, and supplies components such as bumpers, trunk lid handles, instrument panels, door handles and radiator grilles to General Motors, Brose and Ford. HTS won the “Most Improved in Quality” and “Most Improved in Delivery” awards from Proton. Frost & Sullivan recognised HTS as the 2008 Automotive Component Manufacturer of the Year (Malaysia).
Incorporated in 1991, HICOM-Teck See is a joint-venture between HICOM Holdings Berhad (51%) and Teck See Plastic Sdn Bhd (49%)
MODENAS is the manufacturer and assembler of the Malaysian-made motorcycle and scooter. The first pilot unit rolled off the assembly line in 1996, followed by different models of mopeds and scooters. Sales began within months and there has been no looking back.
Through aggressive marketing campaigns and good performance, MODENAS motorcycles are top sellers in the country. Within a year of sales in the domestic market, MODENAS launched its models overseas. Today several models are exported to more than 13 countries.
Incorporated in 1995, MODENAS is owned by DRB-HICOM Berhad (70%), Kawasaki Heavy Industries (19%) and Sojitz Corporation, Japan (11%).
Oriental Summit Industries Sdn Bhd (OSI) is a leader in stamping, welding, painting and assembly of metal automotive components. It specialises in chassis components, seat frame mechanisms and body parts.
An original equipment manufacturer (OEM), it designs, develops, manufactures and delivers components and accessories for major OEMs and motorcycle assemblers. Its technical partners are Hiruta Kogyo, Futaba Industrial and Akashi Kikai Seisakusho of Japan. Through its subsidiary, Automotive Components Engineering Centre Sdn Bhd (ACEC), OSI also offers services in product design, tool design and tool fabrication.
Joint-ventures with foreign OEMs companies, Continental Automotive Instruments (Malaysia) Sdn Bhd, TRW Steering & Suspension (Malaysia) Sdn Bhd, and ZF Steerings (Malaysia) Sdn Bhd, found the market in Malaysia surprisingly resilient during the global economic slowdown of 2008-2009 as consumer and business confidence held up. Prospects are bright, led by demand from China.
Incorporated in 1982, OSI is a joint venture between DRB-HICOM (70%), and Thai Summits Auto Parts Industry Co. Ltd. (30%).
DRB-HICOM Berhad
Level 6, Wisma DRB-HICOM
No.2, Jalan Usahawan U1/8, Section U1
40150, Shah Alam, Selangor
Tel+603 2052 8000
Stock price: DRBHCOM (KLSE)
CEO: Mohd Khamil Bin Jamil
Headquarters: Shah Alam, Malaysia
Founded: 2000
Revenue: 14.2 billion MYR (2014)
