Business analysis of rice miller industry: a case of Sabaras Sdn Bhd / Emma Sofiah Jazuli Wilaksono, Riniwarti Rosaidy and Rusiyah Bandi

Rice miller plays an important role in processing raw paddy into consumable rice. The rising numbers of world population are indirectly related with the increasing demand of rice from rice consumers. Hence, the numbers of rice miller players were significantly growing in Malaysia as well, observing the additional new rice brands in supermarket shelves. However, only few were able to sustain for a long-run profitability, given the current scenario and sensitivity on subsidy, pricing, purchases and rice recovery ratio. The purpose of this study is to examine the financial performance of Sabaras based on its current practices and see how the outcomes affect its profitability and long-term sustainability. Operational details and business accounts were obtained as an input for this study, which produced results that were derived using both quantitative and qualitative tools. Thus, the finding shows that Sabaras has to play by volume-based selling based on economies of scale concept, for at least to breakeven. It is also found agent cost is twice higher than selling through distributors. With ample information of Sabaras internal and external analysis, and consideration upon the surmises made, a positive forecast financial projection is derived.