"From Probiotic Strains to Natural Substances" hy's 'Material B2B Business' Sales Reach 10 Billion KRW... 278% Growth YoY
Published 25 Apr.2022 10:05(KST)
Achieved 10 Billion KRW Sales in Material B2B Business Started in April 2020
Diversifying Materials with Functional Probiotics and Natural Substances... Targeting 30% Growth This Year
Expanding Nonsan Factory Facilities to Meet Growing Demand... "Production Volume to Triple"
[Asia Economy Reporter Eunmo Koo] Distribution specialist company hy (formerly Korea Yakult) announced on the 25th that its material business-to-business (B2B) division has achieved sales of 10 billion KRW in just two years.
hy is focusing on nurturing its material B2B and delivery services as core businesses for sustainable growth. These efforts have intensified since the company name change last year, and both businesses are driving growth through visible results. The material B2B business, now in its third year as of April, recorded sales of 3.5 billion KRW in its first year in 2020 and grew 278% to reach 10 billion KRW last year. The target for this year is 13 billion KRW, a 30% increase over last year.
hy plans to continue its growth by expanding its product lineup. First, it will diversify its functional probiotics, which focus on body fat reduction and skin health, into areas such as immunity and gut health. Since successfully domesticating lactic acid bacteria for the first time in Korea in 1995, hy has continued research based on a library of 5,000 strains and holds six individually recognized raw materials and 53 patented strains. It also has strengths in natural materials. Commercialization of fermented red ginseng, fermented deer antler velvet, and Cudrania tricuspidata leaf extract has been completed, and recent transaction volumes are increasing.
hy plans to expand its probiotic production facilities to meet growing demand. Expansion and renovation 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 is expected to increase more than threefold compared to the current level.
Kim Minsu, head of hy’s Research Planning Team, said, “Material B2B is a new business based on our company’s core competencies, and we are currently trading with leading companies such as CJ Wellcare, Chong Kun Dang Health, and Korea Amway. With over 80 specialized researchers striving to discover new materials, the growth potential is high.”
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