Is there a margin difference for the condom sold under institutional, OEM and OBM segments?

OBM condoms fetch higher margins, but it is not a significant difference. We have not been very strong in advertising for our own condom brand as we believe that building a brand takes time and it is like buying into a person’s mindset. It is in our longer view to build the Carex brand gradually but currently, the OEM segment is still our focus business.

Institutional buyers such as governments tend to buy in large bulk quantity. While margins may not differ too much, only very bigger companies are able to cater to their condom demand. Being the largest condoms manufacturer, this gives Karex an edge and ideal choice by institutions who wish to purchase large quantities orders.

They also can design for clients, but they prefer to custom produce client own design condom.

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