FosRich unveils Pinnacle 2027
FOSRICH Limited has unveiled its new mission plan dubbed “Pinnacle 2027” in which the company intends to sextuple its revenue to $20 billion and net profit to $2 billion through a range of acquisitions and expanding business lines.
This was announced by FosRich managing director Cecil Foster at the company’s annual general meeting on Tuesday as he eagerly described the business opportunities which lie ahead for the growing entity. Pinnacle’s main goal is for FosRich to stay ahead and go beyond. FosRich’s revenue jumped by more than $1 billion or 43 per cent to $3.37 billion in 2022 with its net profit rising 63 per cent to $324.71 million in its best-ever year.
Going forward, FosRich will be underpinned largely by its solar and polyvinyl chloride (PVC) business lines which are expected to bring in $3 billion each. Its electrical business is also expected to grow at a rate of 30 per cent annually going forward, as well. The other business line contributions include $600 million from its transformer repair and production segment, $3 billion from copper wires, $2 billion from industrial electrical, $1 billion from lighting, and $1 billion from Caribbean exports.
“We have designed what we call a roadmap with the name Pinnacle. That is where we are climbing to, whether it is cold, hot or lukewarm; we are going there and we are going there as a team. It’s a mix of things that we’re using to grow the revenue as you said to the $20 billion by 2027, and I think if we continue with the plans that we have and support that we have from our team, I think it is doable,” said Foster to attendees of the hybrid meeting in his presentation.
While its associate Blue Emerald Limited didn’t benefit from the special economic zone, it will continue to exclusively manufacture PVC products for FosRich under the Solid brand as it sees great opportunities for FosRich USA, Inc which will be going after a range of contracts designated for minority-owned businesses in the United States. This is also set to complement its other segments of electrical, energy and electrical with the latter being the main revenue driver in 2022, and having a market share of 50 per cent. FosRich incorporated O’N’S’ Mini Mart & Electrical Supplies Limited in April 2022 to acquire a business in Old Harbour which contributed $29 million in revenue.
“We’re going to be driving the export business and we’re going to look at becoming more industrial as we take on more engineers to go into these larger projects that are going on in the country. We are going to be looking for acquisitions. We’re not just sitting back and allowing things to happen. We are going to acquire and look for opportunities we can take on to help us grow this shareholder value that we say we’re going to grow,” Foster added, on the company’s prospects to export to other markets and acquisition opportunities.
While not naming the specific opportunity for regional expansion, Foster highlighted the company’s solar and renewable energy partnership with Huawei which will serve as a critical springboard for expansion into the rest of the region.
“We have decided for the last three years that we’re going to partner with this brand. Some people just see them in the telecommunications business, but they are huge in the solar business and we are their local partner. I probably won’t say much, but we are hoping to say much in a very short while. This is a global brand and we’re looking to go outside of the country with many of our offerings and I don’t think this brand is going to sit back and allow us to just stay in Jamaica. We’re going to look forward to doing many big things with a brand like this,” Foster explained on Huawei.
While this partnership is set to bring significant returns for the 2027 plan, the recent partnerships established with microcredit companies Dolla Financial Services Limited and Access Financial Services Limited are taking longer to be executed as the customers bring in relevant documentation to secure the financing. This was also confirmed at the Dolla AGM as well with the FosRich partnership to see customers secure up to 90 per cent financing for solar energy solutions. However, the Development Bank of Jamaica was mentioned as being more attractive to some prospective customers due to lower interest costs than the microcredit firms.