KUALA LUMPUR, Health and wellness company DXN Holdings Bhd is exploring plans to establish a coffee-processing factory in Minas Gerais, Brazil — a move that would mark its first direct investment in the country and a major milestone in its Latin American expansion strategy.
Founder and executive chairman Datuk Lim Siow Jin said the initiative reflects DXN’s confidence in the region’s growth potential and positions Brazil as a key pillar in the group’s global manufacturing network.
“Brazil is the next logical step for DXN in Latin America. The region is currently driving our growth, and we see Brazil’s economies of scale, young demographics, and rising health-consciousness as highly complementary to our established operations in Peru and Bolivia,” Lim said during the Malaysia-Brazil Business Summit in Kuala Lumpur on Monday.
He noted that Latin America remains DXN’s strongest regional market, contributing around 60% — or over RM1 billion — to group revenue for the financial year ended Feb 28, 2025 (FY2025). The contribution, he added, is expected to remain steady over the near term, underscoring the region’s strategic importance to the group’s earnings.
DXN currently operates an extensive network in Mexico, Peru, and Bolivia, supported by a global membership base exceeding 10 million, of which about 60% are located in Latin America.
The proposed investment in Brazil will include both the construction of a coffee-processing facility and the transfer of Malaysian-developed technology, which features unique innovations such as civet-style fermented coffee and tea brewed from coffee leaves — products that Lim described as “new and exciting” for the Brazilian market.
“We intend to bring our proprietary technology to Brazil to introduce a new concept in the local coffee industry. Malaysia has significant expertise in developing high-value coffee products, and we believe this transfer of knowledge can create new market opportunities in Brazil,” Lim explained.
He said Brazil was chosen for its similarities to Malaysia in terms of climate and soil composition, which would facilitate the cultivation and processing of raw materials using DXN’s existing technology with minimal adaptation.
“What we grow and produce in Malaysia can be replicated in Brazil with little modification. This presents tremendous potential not only for DXN but also for Malaysian entrepreneurs seeking to expand their businesses into Latin America,” he added.
According to Lim, the government of Minas Gerais has extended several investment incentives to attract DXN’s project, including an offer of 10 hectares of free land, simplified approval procedures, and reduced land costs. Such incentives, he said, demonstrate the local authorities’ strong commitment to fostering international partnerships and industrial growth.
Industry observers said DXN’s move aligns with Brazil’s ambition to diversify its coffee sector beyond raw exports and into higher value-added segments such as specialty coffee, wellness products, and nutraceuticals — areas where DXN’s research and experience give it a competitive advantage.
If materialised, the plant in Minas Gerais would become DXN’s second major manufacturing hub outside Asia, reinforcing the company’s global supply chain and enabling it to serve the rapidly expanding Latin American market more efficiently. DXN’s shares closed one sen or 1.94% higher at 52.5 sen on Monday, giving the group a market capitalisation of RM2.62 billion.
