Notion Venture Sdn Bhd (NVSB) was established and started operations in a rented light industrial factory off Jalan Meru, Klang with a floor space of 2,000 sf and deployment of 4 CNC machines to just machine sintered industrial parts.
Notion means a concept or idea which in the beginning was what it was supposed to be. We never imagined how the business would grow by leaps and bounds over the early years.
By then, the enterprise was known for quick and good service amongst the local Japanese multi-national companies and quickly became known as Notion San. If there is anything difficult, Notion San could fix it particularly in precision machining.
Work was plentiful and we did not face any difficulty during the Asian financial crisis of 1997.
The company needed more space so we rented a cluster of surrounding industrial factories as we added more CNC machinery and started a jigs & fixture department.
Started production of spacers for IBM Hard Disk Drive (HDD) through another local vendor and the process of intense learning of high volume manufacture of precision parts began. Typically, we had to produce million of pieces per month which was quite demanding for a small enterprise.
We established another plant in Balakong, Selangor with a floor space of 12,000 sf and also a customized cutting tool division.
The rush to change many PCs due to fear of the millennium bug further improved the sales to the HDD segment. By then we had more than 100 CNC machines as we grew organically by ploughing everything back into the business.
By then NVSB’s revenue was already exceeding RM10 mil per year which was quite impressive for a SME company. We relocated most of the machines to another large rented factory of 1.5 acres located in Jalan Teratai, Klang.
The company expanded too quickly and as the 911 event unfolded and the collapse of the Dotcom craze caused the sales to decline quite dramatically and things were at a standstill for the first time for NVSB.
With a bruised pride, the company management put in extra efforts to shore up the business and financial performance slowly recovered.
We started machining more difficult HDD parts such as disk clamps and motor hubs for a major maker and the company again benefited from the exposure to such increasingly challenging products.
The founders then made initial plans to consider an IPO on the Mesdaq market (which was the technology and high growth sector) of Bursa Malaysia Berhad but it was not until 2 years later that we were admitted.
Notion VTec Berhad is the holding company of the Group and the Notion VTec stands for Notion Venture Technology.
The company was floated in June 2005 and it raised RM47.25 million for the purchase of a piece of industrial land and construction of Notion’s main factory at Lot 1623, Jalan Haji Salleh, Jalan Meru, Klang, Selangor. Of course the proceeds also allowed the Group to acquire more CNCs and equipment to move to the next level of mass manufacture.
By then, the number of CNCs has exceeded 400 units considering the cost of such a machine was on average RM200,000 per machine imported mainly of Japanese makes.
Notion moved into the Main Factory and commenced operations in early 2007 by centralizing all the individual business units and subsidiary companies except the metal stamping division into the main plant with an approximate floor space of 350,000 sf.
We further added more production space of another 100,000 sf to cater for EN plating line and space for the maintenance of machinery and also a staff canteen.
With more products for the electronic braking systems (automotive), Notion purchased a 3 acre industrial property and retrofitted it for production purposes and named it Factory No.2
The first year when we moved into the high volume manufacture of cam barrels for the single lens reflex (SLR) cameras for a major Japanese maker and the cam barrel is part of the interchangeable lens and is a helical zooming mechanism.
Notion was awarded by Forbes magazine for being one of the Best under USD1 billion sales selection of Asian companies nominated for good revenue growth, consistent profits and return of equity performance.
It was also a year of very high capital expenditure of more than RM70 million catering to both the expanding camera and Electronic Braking System segments.
The financial crisis and the subsequent economic crisis did not spare Notion Group’s business and sales plummeted as consumer confidence in the major economies sagged.
Management took early pre-emptive cost cutting measures by reducing the work force, reducing work week, reducing expenses and salary cuts.
Although, there were many announcements of governmental stimulus plans on a global scale, the situation is still uncertain whether the recovery is sustainable and for how long a period. The Notion Group business revenue continues to recover from the shocks of the crisis and we are optimistic that our business model will survive this difficult period and come out of it stronger and more resilient.