This article first appeared in The Edge Malaysia Weekly on July 21, 2025 - July 27, 2025

IN a business where one size does not fit all, it is perhaps no surprise that the idea to set up a challenger upstart — in a country that is home to the world’s largest condom maker — was conceived in 2005 at a mamak stall among friends rather than on the golf course.

Two decades on, backed by Kossan Holdings (M) Sdn Bhd — the private vehicle of glove tycoon Tan Sri Lim Kuang Sia — CARE Latex Sdn Bhd is on an ambitious course to broaden and deepen its product portfolio towards capturing a larger export footprint in Asia’s sexual wellness market, along with a stock market listing by 2030.

According to founder Bonn Lam Chee Fong, CARE — known for its skin-thin condoms that were recognised as the “Thinnest Latex Male Condom Made in Malaysia” in 2019 by The Malaysia Book of Records — is no longer positioning itself as just a home-grown condom brand but a serious contender in the Asian market.

“We are building a comprehensive sexual wellness ecosystem, including lubricants, personal massagers and a performance supplement line set to launch in 2026. We also hold the exclusive Malaysian distribution rights for Japan’s Tenga Co Ltd, a global leader in adult wellness products,” Lam tells The Edge in an exclusive interview.

“CARE’s strategy extends beyond profitability. For example, by collaborating with industry leaders like Japan’s No 1 brand Tenga, we not only expand our product range but also enhance our brand value.

“These collaborations allow us to innovate, learn and strengthen our brand’s presence in the market, reflecting our long-term commitment to delivering diverse wellness solutions to consumers.”

Lam describes the partnership with Kossan, a long-time manufacturing partner turned strategic investor, as a turning point in CARE’s growth story.

Leveraging Kossan’s manufacturing expertise and financial backing, CARE aims to ramp up exports, strengthen product development and push into key Asia-Pacific markets, including South Korea, Vietnam and the US.

Kossan is the ultimate holding company and major shareholder of rubber glove giant Kossan Rubber Industries Bhd (KL:KOSSAN), which is listed on the Main Market of Bursa Malaysia and has a market capitalisation of RM3.6 billion.

The group’s founder, Lim — a 73-year-old chemical engineer — is Malaysia’s 28th richest person on the Forbes billionaires list, with a net worth of US$800 million (RM3.4 billion) shared among his brothers and the family of his late brother Lim Kwan Hwa.

Lam notes that Kossan’s subsidiary has been CARE’s contract manufacturer for the past two decades. As CARE gradually expanded its market share and brand visibility, Kossan recognised its long-term potential and recently acquired a stake, becoming the company’s third-largest shareholder.

“We first engaged with Kossan in the fourth quarter of 2024 and, by April 2025, the agreement was signed. Their investment marks a key milestone in CARE’s pre-initial public offering (IPO) journey, and reinforces our long-term vision to grow into a globally respected Malaysian brand in the sexual wellness space,” he says.

With Kossan as a key strategic investor, Lam believes CARE will benefit from solid financial backing for marketing and research and development (R&D), supply chain support for international expansion, and increased credibility with overseas partners to fuel the company’s next phase of growth.

“The partnership speaks volumes about the confidence that Kossan has in our brand, values and growth potential,” he reiterates.

Lam discloses that Kossan and CARE also plan to co-develop clinical-use products, such as medical-grade lubricants, by leveraging both firms’ combined expertise.

He declines to disclose, however, Kossan’s total investment or shareholding in CARE.

A search of its filings with the Companies Commission of Malaysia (SSM) found that Lam remains the single-largest shareholder of CARE, with a controlling stake of more than 50%. It is estimated that Kossan has a 13.2% stake in CARE. The remaining shares are believed to be owned by Lam’s wife, Patricya Tan, a director of CARE.

In 2024, CARE reported RM5.5 million in revenue and RM500,000 in net profit, driven by the sale of 5.8 million condoms (see chart).

“We are actively expanding our point-of-sale and distribution network, hoping to reach our target of RM50 million in revenue and RM5 million in profit within the next five to 10 years. In other words, we need to grow our profits by 10 times. By then, we should be ready to go for listing,” says Lam.

He acknowledges that an IPO will support CARE’s future growth by enhancing visibility, attracting strategic partners and fuelling sustainable growth.

“Yes, an IPO is part of our long-term road map, with a target timeline of four to five years. However, listing is not the end goal — it is a means to scale our brand and unlock new opportunities in global markets.

“The IPO will help us raise the capital required to expand into new international markets, strengthen our distribution network and launch innovative product lines. It is a critical step in bringing CARE to more communities worldwide,” Lam stresses.

When CARE goes for listing, its closest peer comparison would be Karex Bhd (KL:KAREX), the world’s largest condom producer, which has been listed on the Main Market since November 2013.

With a market capitalisation of about RM742 million, Karex is currently trading at a historical price-earnings ratio (PER) of 51 times. Year to date, its stock price had declined by 25% to close at 70.5 sen on July 16.

Lam says Karex operates mainly in the business-to-business (B2B) manufacturing space, whereas CARE is a business-to-consumer (B2C) brand. As such, he adds, Karex and CARE are not direct competitors.

“The distinction between CARE and Karex lies in our respective business models: Karex operates as a B2B manufacturer focused on large-scale production, leveraging significant investments in volume manufacturing. In contrast, CARE follows a B2B2C model, focusing on higher-margin sales through direct-to-consumer channels. This allows CARE to run leaner operations while building a stronger brand presence and delivering a more tailored consumer experience,” he explains.

Nielsen’s 2024 report ranked CARE among the top four condom brands in Malaysia, alongside British brand Durex and Japanese brand Okamoto.

“Durex is the gold standard. At CARE, we’re offering a modern alternative — combining trusted quality with fresh design and meaningful product innovation. Our ambition is to be the next Durex within five to 10 years,” Lam says.

“As at 2024, CARE had achieved a market share of 6.2%, based on our current channel outlets ... While CARE is a strong player in the market, there remains significant potential for further growth, especially as we continue to focus on consumer engagement and expanding our retail network.”

Lam notes that the domestic condom market was around RM16.2 million last year. Malaysia exported roughly 5.7 billion condoms in 2024. Karex alone produces more than five billion condoms a year, almost 1,000 times the 5.5 million that CARE sold last year.

“Currently, our manufacturing partner, Pleasure Latex Products Sdn Bhd, has an annual production capacity of around 400 million units. As CARE continues to grow, we will assess our production capacity to ensure scalability and meet the necessary targets to support future growth, including potential IPO plans,” he says.

Lam adds that CARE is focused on long-term growth, driven by innovation, market relevance and consumer trust.

“We are currently developing speciality products in collaboration with Pleasure Latex Products Sdn Bhd. We are also sourcing external support from other specialised companies to ensure the highest quality and innovation in these products.

“Our next big milestone is to become the second-largest condom brand in Asia within the next five to 10 years — and we’re building the right foundation to make that happen,” he says.

Today, CARE’s brand portfolio includes three core lines: CARE, CARE LITE and WOW.

“CARE is our flagship brand. CARE LITE is a cost-effective range offered through Eco-Shop, ensuring more Malaysians — regardless of income — have access to reliable protection. WOW is a premium offering exclusive to 7-Eleven, infused with local flavours and cultural elements,” Lam explains.

Eco-Shop is an ultra-affordable household retailer operated by Eco-Shop Marketing Bhd (KL:ECOSHOP), whereas the local 7-Eleven convenience store chain is owned by 7-Eleven Malaysia Holdings Bhd (KL:SEM).

CARE’s products are also available in more than 8,000 points of sale, including KK Mart, Guardian, CARiNG Pharmacy, BIG Pharmacy and Health Lane Family Pharmacy.

The company is now working towards expanding into 99 Speedmart, FamilyMart, myNEWS, CU and other general trade outlets to complete its nationwide retail coverage.

99 Speedmart is operated by 99 Speed Mart Retail Holdings Bhd (KL:99SMART), FamilyMart in Malaysia is owned by QL Resources Bhd (KL:QL), and myNEWS and CU stores in Malaysia are operated by myNEWS Holdings Bhd (KL:MYNEWS).

At the same time, CARE is building its online presence through platforms such as Shopee and Lazada, alongside its own direct-to-consumer e-commerce website, allowing broader access and deeper engagement with digital-first consumers.

Lam says CARE’s next growth focus will be hospitals and clinics as the company introduces new clinical-use products.

Internationally, it has established a presence in South Korea, Vietnam, Singapore and New Zealand, with launches planned in Taiwan and the US. The company aims to expand into at least two new countries per year as part of its global strategy.

“Currently, our business is 70% domestic and 30% export. In the next five years, we aim to reverse this to 30% domestic and 70% export, and we believe the export portion will continue to grow,” he says.

Lam says his ambition is to position CARE as Malaysia’s global brand in the sexual wellness industry — much like how homegrown milk company Farm Fresh Bhd (KL:FFB) rose to challenge the international giants in the dairy industry.

“The way Farm Fresh built its brand and challenged the established foreign brands is something I genuinely admire. We draw a lot of inspiration from their journey,” he says.

He recalls a conversation with friends at a mamak stall one night in 2005, when one of them noticed that the condom he was holding was made in Malaysia, yet carried a foreign brand name.

“That moment sparked an idea: Why not create our own brand? A proudly ‘Made-in-Malaysia’ brand. That’s how CARE began — to showcase that Malaysian-made products can compete globally under our own name,” Lam says.

To compete with foreign condom brands, Lam knew CARE needed a localisation-first strategy. For instance, it introduced its Musang King-flavoured condom — a playful, distinctly Malaysian product that celebrates local identity while sparking global curiosity.

“One of our key innovations is CARE+, a disposable hygiene pack that includes a condom, lubricant sachet and fragrance-free wet wipes — designed to support more hygienic and responsible intimacy,” he says.

Asked about a recent World Health Organization report indicating a decline in condom use among young adults, Lam says CARE is adapting to market shifts by diversifying its offerings. “Beyond condoms, we are developing a full sexual wellness ecosystem that addresses evolving consumer needs, such as self-love products, sexual enhancement supplements and lifestyle imagery. CARE has expanded into six countries: Malaysia, Singapore, Vietnam, South Korea, New Zealand and the US. With this growing international footprint, we see tremendous potential for continued growth. Our focus goes beyond just condoms; we aim to enhance intimacy experiences for consumers, positioning CARE for sustainable growth and deeper engagement in the years to come.”

As part of its brand direction, CARE also places a strong focus on female-driven innovation, recognising that the condom category has traditionally been male-centric, with limited consideration for women’s comfort and preferences.

“We are addressing this gap through thoughtful product design ... This approach supports the brand’s broader goal of making sexual wellness more inclusive, respectful and user-friendly for all,” Lam says. 

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