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Saturday, April 26, 2003

Intelligent television – the key

FEW people his age could challenge the trials and experiences Tengku Ngah Putra Tengku Ahmad Tajuddin has gone through in building his own business. 

“My journey in the entrepreneurial world has been full of ups and downs. I've more sad, than happy, tales,” he says, “I made a lot of mistakes, but I learnt from them. I've a lot more to learn about the tricks of the trade in TV manufacturing. It's a very tough industry.” 

To be a successful entrepreneur, Putra says, one has to be creative and innovative, and have determination, besides being able to market one's idea speedily. 

The TV, interestingly, played a major role in shaping his values, and encouraged him to dream and persevere in achieving that dream. 

His favourite TV series while growing up was Roots, which followed the hardships and struggles of the life of Kunta Kintei, an African man that was captured and thrown into slavery in the US, and that of his descendants, who eventually became freemen and landowners.  

From there, he learnt that one must be true to oneself and persevere to achieve one's dreams.  

And because of Knight Rider, he dreamt of having a smart car. But later, he concentrated his efforts on making smart TVs instead. 

Putra does not have any tertiary education. He started working after completing Form Five.  

“I came from a poor family and our relatives looked down on us. As the eldest of five siblings, I took it upon myself to break the poverty circle for the family. I wanted to prove to them (relatives) that we can be successful,” he says. 

“I figured that starting my own business was the only way to become rich. And I wanted to meet friends from other parts of the world and see the real world outside,” Putra adds. 

In 1992, having earned enough money for a plane ticket and food, Putra followed his friends to Moscow, without his parents' knowledge. There he sold Malaysian-made products in the streets. 

“We were selling chocolate, rubber bands and many other stuff, even condoms, on the streets of Moscow,” Putra says. 

After a week in Moscow, his thoughts turned to nasi lemak, which he greatly missed. This reminded him of his mother and he called home and requested that she prepare some when he returned. 

Between 1992 and 1994, Putra and his Russian friends sold chocolate, rubber products and furniture from Malaysia. He returned to Malaysia for more when the goods were sold, which typically took about two weeks. Meanwhile, Putra developed his connections and network. 

In 1994, a Russian steel mill cooperative asked Putra, then one of the few foreigners doing business in Russia, if he could help to source electrical goods as part of its employee remuneration scheme. A salesman through and through, Putra, with his “apa pun boleh” (can do) attitude, took on the job. 

“I wanted to source a Japanese brand, but they wanted me to declare who the buyer was. I wasn't prepared to, so I went to an original equipment manufacturer, branded the TV Nikom and sent it to Russia,” Putra said.  

Putra formed a joint-venture TV assembling plant in Siberia with the co-operative. He held a 45 per cent share. 

“It was a small outfit which later grew and I believe it is quite famous now. I've long reduced my shareholding to 7 per cent. Siberia is just too far for me to concentrate on, but I still go back there once in a while to maintain contact,” Putra says. 

In 1997, Anggun Permai set up a joint venture company, Nikom Industries JV, with a Kazakhstan partner in Almaty, Kazakhstan to manufacture TV sets and home theatre systems.  

In 1998, he sold off his 83 per cent equity in that company and moved on to Krygystan, where he formed a joint-venture with a prominent businessman there to manufacture TV sets.  

Today, the factory, in which Anggun Permai has 70 per cent interest, produces 450 TV sets a day for the Russian market and contributes more than 10 per cent to Anggun Permai's total revenue. 

At one time, Putra sat on the board of Malaysia Electric Corp Bhd (MEC), as Anggun Permai had 19.9 per cent equity interest in the company. Anggun Permai later sold its shareholding to fellow shareholder Fiamma Holdings Bhd to concentrate on its TV business. 

In 1996, Anggun Permai started to manufacture TV sets in Malaysia but it wasn't until 1998 that it started concentrating on the local market. 

Putra says Anggun Permai has received enquiries from many countries, including Algeria and Lebanon, but has not ventured there yet, partly due to the competition from China. 

“China can produce TV sets very cheaply. We cannot win in a price war against them. With China coming into the marketplace, the competition is great, even locally. We feel the heat. We know we must do something to make our products different. That's why five years ago, we decided to make intelligent TVs,” says Putra. 

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