SDS Group Bhd’s proposed acquisition of 35.4 acres of freehold land in Johor Baru is expected to help it expand its production capacity, and boost its logistic and operational efficiencies, while meeting growing demand for its snacks and bakery brands.
SDS wholly-owned subsidiary, London Bakery Sdn Bhd, has entered into a sale and purchase agreement with Kempas Green Development Sdn Bhd to acquire the land for RM101.7 million (US$25.8 million), which will be used to develop a manufacturing facility.
The new facility will support additional floor space and both production and packaging lines to boost long term growth of SDS’ London and Tora brands.
Earlier in 2025, Johor-based SDS has confirmed its acquisition plan on Mamee Double Decker (M) Sdn Bhd’s London and Tora snack brands and assets, diversifying its portfolio beyond just cakes and fresh pastries into the confectionery segment. Mamee Double Decker will dispose these assets, and as part of the deal, provide SDS with recipes and production know-how related to London and Tora products.
One of the main reasons to diversify into snacks is the fact that SDS’ cakes and bakery products are perishables and have short shelf life, whereas snack food has longer shelf life allowing SDS to expand on its distribution channel while minimising wastage.