PS FASTENERS PTE LTD. 

2013-08-15　 Congratulations to PS Group Holdings Ltd on its successful listing on the Catalist Board of the Singapore Exchange

by Tanya Shih, Fastener World Inc.

PS Group Holdings Ltd (“PS Group”), a Singapore based distributor of fasteners, commenced trading on the Catalist board of Singapore Exchange on July 11, 2013 and raised net proceeds of about S$ 3.8 million. The directors intend to recommend and distribute dividends of not less than 30% of net profit to shareholders in FY2013 and 2014.

Teo Choon Hock, PS Group is Co-founder and Executive Chairman, who has been in the fastener trade since 1982 said, “With ready inventory, we will be better equipped to retain our customers.” It is no easy task to maintain a ready inventory at all times. With the existence of countless fasteners manufacturers around the world, it is important for any fastener trader to identify the right partners in order to achieve a diverse product range and ready inventory. Maintaining good relationships with quality suppliers to ensure supply and meeting the demands of customers and end-users are important to ensure customer retention.

PS Group, Manufacturers and Distributors Tripartite Relationship
Fasteners have diverse industrial applications in amongst others, infrastructure developments, structural fabrication and construction in civil works, transportation and manufacturing of heavy machinery, automotives and parts. PS Group supplies over 15,000 different types and sizes of fasteners including screws, bolts, nuts, pins, anchors, rivets, washers and clips in a variety of materials, such as stainless steel, alloy steel, carbon steel, mild steel, brass, nylon and aluminium as well as a variety of platings and is one of the leading companies in Southeast Asia offering such an extensive range of products. Following the listing, PS Group is working closely with its suppliers to expand its product range, thereby enhancing the Group’s ability to meet customers’ requirement of any mix of products.

Mr. Teo recalled that when the Group first started, it was faced with issues relating to limited capital and inventory range. In addition, the Group also faced difficulties in obtaining funding from banks due to its size and scale of operation. Orders were few and relatively small, which made it difficult for the Group to make large purchases from the suppliers in order to enjoy economies of scale.

The demand for fasteners grew rapidly in the 90’s. PS Group began to procure its supplies beyond Singapore from countries like Taiwan, China and Japan. Besides serving local customers, PS Group also commenced export of their products to Malaysia and Indonesia. In support of PS Group’s pursuit to expand its inventory range, some of the leading fasteners suppliers including Fang Sheng Screw Co., Ltd., Tong Hwei Enterprise Co., Ltd., Alcoa Fastening Systems-Australia Pty Ltd., and Shanghai Prime Machinery Co., Ltd., provided the Group with renowned brands like YFS, THE, RECOIL and SFC to meet its customer requirements. Through bulk purchasing and having a diverse range of products, PS Group is able to supply their customers with quality fasteners from anywhere, at anytime, of any mix and for any quantity for delivery on a timely basis. Over the years, PS Group has formed a strong tripartite relationship with its suppliers and customers.


Introduction of E-commerce in the 90’s
Since the early nineties, PS Group utilised computer information systems to manage its business. Prior to the widespread use of the Internet, the Group had started to reach out to overseas customers through its website. Although its online efforts bore fruit at the turn of the century, it demonstrated PS Group’s forward-looking ability to stay ahead of competition.

Mr. Teo believes that information technology plays an important role in the hardware industry. Harnessing information technology and keeping pace with technological changes will allow the business to better manage its purchases and sales. Nevertheless, PS Group also maintains the conventional way of reaching out to customers through advertising in business directories as well as in international publications such as Fastener World Magazine.

Listing and focus on Emerging Markets
Following the listing, Mr. Teo believes the growth of PS Group will not be dependent upon any single industry as the Group’s extensive product range can cater to a broad spectrum of industrial applications. In order to compete more effectively in the global market, the Group has plans to capitalize on future expansion opportunities possibly through suitable acquisitions, joint ventures and strategic alliances. Hence, the listing on the Singapore Exchange was a natural step in this direction for the Group.

Currently, PS Group is focusing on strengthening links in emerging markets. In 2012, its revenue was mainly from Singapore, Malaysia, and Indonesia as well as emerging markets like Sri Lanka, Panama and United Arab Emirates. The Group has, to-date, about 200 customers from more than 45 countries. Mr. Teo believes that the increasing fixed investments and a rise in the manufacturing bases in emerging economies will boost fastener demand compared to the more developed markets. As such, the Group will continue to focus its marketing efforts on distribution with retail networks primarily in Southeast Asia, as well as in emerging markets.