After more than two decades building one of the Klang Valley’s most recognisable bakery brands, RT Pastry Holdings Bhd is preparing for a transformation that extends well beyond adding new retail outlets.
Instead, the ACE Market-bound bakery chain is using its IPO as a springboard to reinvent itself into a vertically integrated food manufacturing platform, combining nationwide retail expansion with a fast-growing original equipment manufacturer (OEM) business serving third-party cafés and food retailers.
Speaking exclusively to BusinessToday, Executive Director and Chief Executive Officer Lu Chun-Neng said the listing marks a strategic turning point for the company as it shifts from a predominantly retail-driven business into a multi-channel food enterprise underpinned by scalable manufacturing capabilities.
“The primary catalyst for this milestone is the need for substantial capital to scale our operations,” Lu said.
Building A Second Growth Engine
Lu highlighted that while the company has built its reputation through an extensive network of outlets across the Klang Valley, the next phase of growth will see the company diversify beyond traditional storefront sales by expanding its wholesale and OEM operations.
“This strategy is designed to unlock an entirely new revenue stream, allowing the company’s centralised production facilities to supply both its own growing retail network and an expanding base of corporate customers.
“The biggest shift will be in how we make our money,” Lu said, adding that while the company expand its retail stores into new areas within the Central region and across Peninsular Malaysia, they too will grow its business-to-business wholesale and OEM channels.
He shared that this dual-engine model is expected to significantly improve utilisation of the company’s manufacturing assets while reducing its dependence on consumer footfall alone.
Scaling Through Automation
The transformation is equally operational, as Lu emphasised, because rather than relying on labour-intensive production as it scales, they will be investing the IPO proceeds into advanced automation covering baking, cooling and packaging processes, alongside relocating its central operations into a substantially larger manufacturing facility.
“This automation would enable the company to achieve economies of scale by increasing production capacity while lowering unit costs and reducing dependence on manual labour.
“Ultimately, this capital builds a highly efficient supply chain where our expanded production network smoothly feeds both our own expanding stores and our growing list of wholesale clients nationwide,” he said.
Although the company’s initial plan to acquire an industrial property in Cheras Jaya has been shelved, Lu said RT Pastry remains committed to establishing a new production hub spanning between 60,000 and 80,000 sq ft in areas such as Seri Kembangan, Kajang, Balakong or Semenyih, with a suitable site expected to be secured by the fourth quarter of 2026.
“This larger facility will support both its nationwide retail rollout and rapidly growing corporate supply business while enabling greater deployment of automated production equipment,” he added.
Beyond The Klang Valley
On the other hand, Lu also highlighted that retail expansion remains another major pillar of RT Pastry’s post-listing strategy.
Beyond strengthening its presence across the Central region, the company is targeting the East Coast as its first major expansion market outside its traditional Klang Valley stronghold from 2027 onwards.
“Rather than pursuing aggressive outlet growth, we are planning to prioritise densely populated commercial and residential locations capable of generating sustainable daily customer traffic,” he said.
Lu assures everyone, especially its loyal consumers, that despite the scaling production, the artisanal quality that has become synonymous with its Japanese- and Taiwanese-inspired baked goods will be maintain and preserve.
“Our vertically integrated manufacturing model centralises dough and pastry preparation while allowing individual outlets to complete final baking on-site, ensuring consistency in freshness and product quality across an expanding national network,” h said.
Beyond physical expansion, the company also sees digital engagement becoming an increasingly important competitive advantage.
Its loyalty programme has grown to more than 170,000 registered members, with management currently evaluating the development of a dedicated mobile application to deepen customer engagement through personalised rewards and a more seamless digital experience.
More Than Store Growth
For investors, Lu said the company’s progress should not simply be measured by the number of new stores opened.
Instead, the more meaningful indicators will be the pace and profitability of new outlet rollouts, increasing revenue contribution from new regions outside the Central market and the successful scaling of its OEM and wholesale operations as RT Pastry evolves into a national bakery brand.
If executed successfully, RT Pastry’s IPO will represent more than an expansion of a popular bakery chain; it will mark the company’s transition into a scalable food manufacturing platform capable of generating growth from both consumers and corporate clients — potentially redefining the economics of one of Malaysia’s best-known artisanal bakery brands.
RT Pastry is set to debut on the ACE Market on June 29 with a market capitalisation of approximately RM61.03 million based on the IPO price of 18 sen per share.
