Knm Group Berhad Case Study

KNM Group Berhad is a company with global brand. It is a well-diversified multinational group with core businesses in project management, engineering, manufacturing and construction for the renewable energy, power, utilities, refining and petrochemical industries. KNM Group Berhad as a global company who continuously seeks to maximize its value creation, it has also embarked into the renewable energy sector as a project owner and developer, as a strategic investment with a view on developing recurring income and sustainable growth in the long term.

Based in Malaysia, the KNM Group was listed on Bursa Malaysia Securities Berhad since August 2003. The group operates in 9 countries and offers a broad range of products and services under renowned

KNM Group believes that its continued success will depend significantly on the abilities and continued efforts of its existing directors and senior management. The loss of any key members of the KNM Group could adversely affect the Group’s continued ability to compete. However, the Group has made efforts to train its staff and enjoy support of long-term management staff. The KNM Group’s future success will also depend upon its ability to attract and retain skilled personnel. Measures and precautions have been taken in grooming younger members of the senior management team in assisting the more senior key personnel to operate and manage the Group’s activities. The Public Issue Shares that have been allocated to key personnel of the Group is one of the steps taken to ensure that the employees are given recognition for their contribution to the success of the

In the year 2002, there is 34 customers of KNM Group represent 100% of its total customer base. Its largest customer, Toyo Engineering & Construction Sdn Bhd accounted for 36.2% of the sales for the financial year ended 31 December 2001. The top three customers accounted for approximately 63% of sales 2001. Although there is some reliance on the top three customers, these three companies are major operators within the oil, gas and petrochemical industries. The fact that KNM Group is able to produce high quality work and achieve total customer satisfaction. In addition, the Group’s business is mainly based on contractual agreements between customers and KNM Group on a project to project basis. As such, there are no long term contracts. Each contract is awarded based on competitive bids from local as well as overseas companies. However, KNM Group has had a long established relationship with its customers and this is reflected by the fact that 50% of all its 83 customers have been with the Group for 5 to 12 years since its inception. The long length of customer relationship is a demonstration of KNM Group’s excellence in product and service quality that has been key to generating repeat orders from