The array of cheeky condoms on Goh Miah Kiat’s desk — mulch-colored, textured and flavored — would make most business executives blush.
They come with grape and strawberry flavors, pleasure-boosting textures, barber pole-like striping, a “Baggy” model and its opposite, the missile-shaped “Powershot.”
They hardly seem the stock and trade of a rural-based family business in Muslim-majority Malaysia, but Goh’s Karex Industries has big plans.
Karex already claims to be the world’s biggest condom maker by volume, producing 3 billion annually, more than any other single manufacturer. However, it plans an IPO this year to fund a doubling of output, part of a push to further its growing presence in a market that is expanding due to the world AIDS battle and increasing condom use in Asian economies like China.
“We are enjoying an acceleration in demand for condoms,” Karex executive director Goh, 35, said in an interview at the company’s factory in the drowsy southern Malaysian town of Pontian.
Industry estimates project a global condom market worth US$6 billion in 2015, or about 27 billion condoms, compared with 20 billion last year. Carex — the brand name of Karex condoms — holds about 15 percent of the global condom market, sector analysts say. Other leading brands like Durex, marketed by Britain’s Reckitt Benckiser Group, and Trojan, owned by the US firm Church & Dwight, make up about 25 percent.
“It is a recession-proof industry. With growth rates of about 8 percent annually, it is here to stay,” Goh said.
About half of Karex’s output goes to bulk purchases by governments or international agencies’ safe-sex drives, mainly the UN Population Fund and the US Agency for International Development.
China is a key growth market, as anti-HIV efforts there have accelerated in line with loosening attitudes towards sex.
A Chinese business Web site in 2011 quoted a former top Chiense family planning official as saying that 1.1 billion condoms were provided free to users by the government every year. However, religious and social taboos are also slowly being set aside elsewhere in Asia, Goh said. For example, the largely Catholic Philippines passed a law in January requiring government health centers to supply free condoms and birth control pills, and mandating sex education in schools.
At Karex’s factory — which operates 24 hours a day — workers pull each and every condom down onto an electric-charged tube that can detect micro-flaws. Samples also are plucked from among thousands of condoms drifting by on conveyor belts and filled with water for leak tests.
Goh’s ancestors immigrated from southern China in the 1920s and his great-grandfather opened a grocers amid rubber farms in southern Malaysia.
Expanding into rubber trading, the family later acquired its own plantations and moved into manufacturing in 1988, when Karex was formed. It began making condoms a year later and now exports to more than 100 countries.
It also has helped make Malaysia the world’s largest source of rubber gloves, as the economy moves from an agricultural base towards industries such as medical technology. A Kuala Lumpur stock listing is planned this year, but Goh said the date and size have not been set.
Bill Howe, president of US-based latex company PolyTech Synergies and a condom industry consultant, said Karex’s plans could be overly ambitious.