hy Achieves 10 Billion KRW in Sales for 'Sojae B2B Business' After 2 Years

Published 12 Apr.2022 09:45(KST)

[Asia Economy Reporter Eunmo Koo] hy's material business-to-business (B2B) operation has achieved sales of 10 billion KRW in just two years.

hy is focusing on nurturing material B2B and delivery services as core businesses for sustainable growth, which has been accelerated since the company name change last year.

Now in its third year, the material B2B business recorded sales of 3.5 billion KRW in its first year in 2020 and grew 278% to reach 10 billion KRW last year. The cumulative sales volume reached 13 tons as of last month, marking its two-year anniversary.

hy plans to continue its growth by expanding its product lineup. The target for this year is 13 billion KRW, a 30% increase compared to the previous year. First, functional probiotics focused on body fat reduction and skin health will be diversified into immune and gut health areas. Natural materials are also a strength. Commercialization of fermented red ginseng, fermented deer antler velvet, and Cudrania tricuspidata leaf extracts has been completed, and recent transaction volumes are increasing.

To meet the growing demand, hy will also expand its probiotic production facilities. Expansion and reconstruction work at the Nonsan plant is scheduled, and upon completion, up to 20 freeze dryers, a key piece of equipment, can be installed. Production capacity will increase more than threefold compared to now.

Kim Minsu, head of hy's Research Planning Team, said, “Material B2B is a new business based on our core competencies, and we are currently trading with leading companies such as CJ Wellcare, Chongkundang Health, and Korea Amway. With over 80 specialized researchers striving to discover new materials, the growth potential is high.”