Better Protection

The world’s largest condom-maker, Malaysia’s Karex, is buying up innovative new brands that are changing a product long ripe for improvement.

- Chen May Lee

Growing up above his family’s condom factory in Malaysia, Goh Miah Kiat had a stock answer if anyone asked what it did. “I just said we make rubber products,” he says, “and hoped people didn’t ask more.” Of course, there was an upside. In school, “Obviously, I was the cool boy… my friends all wanted to know about condoms.”

These days there’s no more hiding. The Goh family business, Karex, is now the world’s biggest condom- maker. Last year, its four factories in Malaysia and Thailand churned out 5 billion condoms—roughly 15 percent of the world market, mostly for export to more than 120 countries. Karex expects to raise production to 6 billion condoms this year and to a rate of 7 billion by the end of 2017.

Karex grew rapidly over almost three decades as a contract manufacturer for the world’s best- known brands, such as Durex, and by supplying bulk orders to global public health organisations. Analysts expect revenue to have reached $91.4 million for the year ended June 30, a 35 percent rise in two years. Net profit is seen totalling $18.1 million, a 69 percent jump since fiscal 2014. That performance puts it on our annual Best Under A Billion (BUB) list for the first time.

It’s a high-volume, low-price business. Karex generally makes just 3 cents each on condoms that end up retailing for as much as $1. Its goal is to acquire and build its own stable of brands. Its brands now make up just 7 percent of sales; Karex hopes to pump that up to 20 percent in three to five years.