Top Glove, the world’s largest latex glove makerwhich makes one of every four pairs of rubber gloves the globe uses, may go and diversify into the condom business.
Although the latex glove industry has a 6% to 8% annual growth, the founder of the Malaysian company said they have been considering whether condoms can complement its existing business.
“We need to pay more attention and put more effort into this,” said Lim Wee Chai, Top Glove’s founder and executive chairman. Among Top Glove’s options is to acquire a condom maker, Lim said.
“We are looking into condom companies” among other rubber-related M&A targets, Lim said.
Top Glove had RM378.5 million (US$92.5 million) stashed away as of May 31 and is “hungry” for acquisitions.It also intends to grow its glove business by adding capacity.
The global contraceptives market was valued at US$19.7 billion in 2015 and is expected to reach US$25.5 billion by 2022, according to US-based Credence Research.
Top Glove produces 44.6 billion gloves a year at 27 factories in Malaysia, Thailand and China. Natural rubber gloves account for about 60% of the total, while nitrile synthetic rubber gloves make up of 30%.