Enstek inauguration and planned production
Dutch Lady Milk Industries Bhd inaugurated its RM540 million halal manufacturing hub in Bandar Enstek, Negeri Sembilan, Malaysia, on 30 May 2024. Tuanku Muhriz Tuanku Munawir, the Yang di-Pertuan Besar of Negeri Sembilan, formally opened the facility. The 13.2-hectare site is three times larger than the company's Petaling Jaya facility.
Managing director Ramjeet Kaur Virik expected operations to begin in the third quarter of 2024. She said the plant would double capacity once fully operational and described its Industry 4.0 technology as supporting Malaysian and regional demand. DLMI@Enstek would also serve the global supply chain of FrieslandCampina in the Netherlands.
Initial investment programme
On 17 December 2020, Dutch Lady set out an earlier RM340 million investment plan for a dairy manufacturing hub in Bandar Baru Enstek. Construction was planned from 2021 through 2025, with the company intending to use internal funds.
Then-managing director Tarang Gupta linked the development to nutritional-product manufacturing and scalable capacity for future product variations. The planned range would respond to consumer trends and occasions. He also expected the facility to support domestic food supplies and opportunities for local vendors.
Petaling Jaya relocation financing
On 18 May 2021, Dutch Lady planned to put RM181.23 million of RM200 million in property-sale proceeds toward the new facilities within 36 months. The company had signed a conditional agreement with UEM Land Bhd in March to sell its Petaling Jaya land and buildings. The construction plan covered manufacturing, warehousing, support and office facilities on three freehold parcels spanning 13.2 hectares in Bandar Baru Enstek.
Dutch Lady also arranged a two-year tenancy of the Petaling Jaya property at RM500,000 per month, with options for two further six-month terms. Its planned allocation of the remaining sale proceeds comprised:
- RM17.27 million for estimated expenses relating to the proposed disposal.
- RM1.5 million for the Petaling Jaya tenancy security deposit.
Earlier production and distribution plans
By 8 October 2023, Dutch Lady's plans included eight production lanes, a distribution centre and a research and development centre at the new hub. Ramjeet Kaur Virik expected the research facility to support product innovation with export potential. The company was still manufacturing at Petaling Jaya and then expected production at Enstek to start in mid-2024.
Ramjeet also described a regional manufacturing-hub ambition alongside parent company Royal FrieslandCampina NV. At that time, the company linked the new site's larger production capacity with improved efficiency and future expansion opportunities. Dutch Lady's stated market share was 28.1%, while its share by volume was 34.2%, as of August 2023.
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