Company Profile

In the past four years, due to the above reason, the company has been serving a vigorous market without disappointment. Especially when this particular market has shifted towards an oligopoly markets; I.e., high and inelastic demand with limited suppliers. In the mean time, many competitors in this business venture have diminished over the past few years due to some killing factors like high overhead cost and improper management.

Tan Geok Tee House Demolition & Timber Dealer has managed to pull through the rough times and emerged as a champion due to its strong financial, structural foundation and good business insights.

Since 1973, for the past two decades, his business revenue has been growing at a steady yet progressive rate. For example, the employees' strength had increased from five to thirty: More skilled workers were employed and appropriate training skills were taught to unskilled workers. At the same time, more advanced technology such as top-of-the-line machineries were imported fom Germany's Krupp HM712 Hydraulic Hammer, Italy's Concrete Crusher CP860 and Japan Kobelco 907 to expedite the deconstruction process.

The Cash Cow

By understanding that his current business portfolio has reached the stage of “Cash Cow” in the BCG / Share Matrix, it is agreed upon that it would be the best opportunity to venture into alternative new businesses and; at the same time, in consideration of activating the subsidiary company Geok Tee industries Pte Ltd in its A13101 Sungei Kadut Way's factory investment.

With the successful acquirement of the 8,021 unit square metres premise at Sungei Kadut from JTC, Geok Tee Industries Pte Ltd faces a brand new challenge in utillizing the land in the most profitable manner.

Expansion

New expansionary plans include the construction of three warehouse units and a three-storey office building with show-room to deal with only one operation in full concentration, and that is to deal with timber processing and furniture manufacturing.

The linkage of the two companies- Tan Geok Tee House Demolition and Timber Dealer and Geok Tee Industries – is that the latter will recruit and utilize all of the resources such as the leftover bits and pieces of timber chips to reprocess them into useful wood planks that can be further processed into furniture. Very much like the present reprocessing work of our used timber but with the imports of new advanced technologies and machinery, it will enable us to perform both effectively and efficiently such as better production result, quality products, more cost effective and minimize wastage.

The last four fiscal years, the total sales turnover and net profit have been growing at an average of 49.23% and 41% respectively. It has always been Mr. Yan's policy to operate his business at his own financial ability. In other words, he believes in running a safe business by maintaining a low, if not, the least, debt/ liability at all time. This financial management effort has enable his company to channel all their time and energy into other more prospective areas, concentrating fully on generatung a profit maximising business and speculating for other business opportunity.