The Aureos Malaysia Fund (AMF) has invested USD5 million in the market-leading Malaysian water filtration company, NEP Holdings (Malaysia) Berhad (NEP).
AMF is managed by Aureos South-East Asia Managers Ltd, a subsidiary of Aureos Capital Limited, the leading private equity investor in small and mid cap companies in emerging markets. The investors of AMF are CDC Group plc (the United Kingdom’s development finance institution), Credit Guarantee Corporation Malaysia Berhad & the Employees Provident Fund of Malaysia.
NEP is involved in the research, design and development, assembly, distribution and rental of water filtration systems under its DIAMOND brand name. One of its product lines is the indoor filter unit which turns normal tap water into good quality mineral water with its unique technology. It is the market leader in the residential water filtration market in Malaysia which also has a presence in Singapore, Hong Kong, Taiwan and Southern China.
Following AMF’s investment, NEP plans to expand to China and other ASEAN countries, as well as grow its existing markets.
Loh Chye Lin, Managing Partner of Aureos based in Malaysia, says: “As Malaysian consumers become more affluent, they are increasingly concerned about health and about having chemicals and contaminants in their food and water. DIAMOND water filters provide the solution by giving consumers and families clean water that has been enriched with essential minerals for a healthy body.”
“By introducing a rental scheme for the water filters, NEP has given households access to an environmentally friendly alternative to bottled water for a low initial outlay. This innovation, as well as their strong brand name, have given them the leading position in the Malaysian market, and should help NEP build market share quickly as they grow in other regions in South-East Asia.”
Michael Lim Chang Huat, Group President of NEP, says: “We are looking forward to working with Aureos both in Malaysia and with their teams across South-East Asia. Their excellent local knowledge and network will play a crucial part in helping us achieve our plans for international growth.”
“With increasing pollution in the environment, we see great potential in the market of providing clean healthy water to consumers. We have the aspiration to be one of the top three water filtration companies in the world. This can be achieved with hard work, dedication and commitment in addition to meeting consumers’ needs and wants.”
Aureos combines broad local presence with deep local knowledge and has a network of 20 local offices covering more than 50 markets – allowing it to identify the strongest investment opportunities.
Established in 1995, NEP has built a strong brand and reputation for quality. It has won 10 awards including the Reader’s Digest Trusted Brand Platinum Award, and has the Gold Seal certification of the world renowned water safety authority – Water Quality Association.
