In line with Malaysia's national policy to promote renewable energy, the country aims to achieve net-zero carbon emissions by 2050, with renewable energy needing to account for 70% of its energy mix. The introduction of the net energy metering (NEM) scheme has catalyzed the adoption of solar photovoltaic (PV) systems nationwide. Against this backdrop, the synergy between KVC and Huawei has emerged.
Through strategic partnerships with global leaders, KVC has diversified from electrical supplies to digital energy solutions, expanding its B2B distribution, solutions, and services. This transformation has solidified KVC's position as a trailblazer in the energy transition.
A Strong Partnership Built on a Shared Vision
KVC, founded in 1989 in Kuala Lumpur, Malaysia, began as a distributor of electrical products. In 2012, the company became part of Sonepar, expanding its global reach while harnessing its own local expertise and network. Today, KVC operates across Malaysia, with 16 branches and 8 distribution centers, serving over 7,000 customers across eight major industries: residential and commercial sectors, general manufacturing, ports and railways, power generation and renewable energy, data centers, water treatment, telecommunications, and oil and gas. Its portfolio boasts partnerships with industry-leading companies.
In 2023, KVC achieved revenue of MYR986 million (approximately CNY1.6 billion), with renewable energy accounting for MYR115 million of that total.
According to Eddie Wong Kok Leong, Country Managing Director of KVC Industrial Supplies, the partnership with Huawei Digital Power began in 2016, concurrent with the introduction of Malaysia's Net Energy Metering (NEM) scheme. This scheme encouraged residential, commercial & industrial, and government sectors to adopt solar power and allowed users to sell surplus electricity to the grid at market rates. The scheme led to a surge in demand for PV products in Malaysia, making the collaboration with Huawei a natural fit.
Eddie explains that KVC chose Huawei as its partner for Huawei’s dedication to innovation, strong brand image, and advanced product technology. The top-tier products and innovative solutions offered by Huawei align with KVC's objectives, and their collaboration aims to provide customers with efficient, reliable, and safe green energy solutions.
Deepening Collaboration to Enhance Customer Service Capabilities
Despite their differing cultural backgrounds, KVC and Huawei quickly formed a strong partnership based on their shared vision for clean energy.
Over the past eight years, the two companies have signed multiple memorandums of understanding, further solidifying their collaboration. Today, as a value-added partner (VAP) of Huawei Digital Power, KVC has expanded its partnership with Huawei to encompass a broader range of products, including energy storage systems (ESSs) and chargers. The partnership promotes these solutions through various channels, such as exhibitions, conferences, and seminars, reaching a wider audience in the industry.
Eddie highlighted Huawei's innovative intelligent energy management and intelligent detection technologies as key drivers of success in the local market. For instance, a large manufacturing facility adopted Huawei's intelligent management technology to implement a fully digitalized Smart PV solution, enabling it to optimize energy load balancing and minimize downtime caused by power grid interruptions.
To date, KVC has successfully deployed Huawei's Smart PV solutions for a wide range of industries. These solutions have not only reduced reliance on fossil fuel-based electricity but also significantly lowered energy costs and improved operations efficiency in sustainability efforts.
Through its collaboration with Huawei, KVC has gained extensive expertise in the PV sector, which has brought about revenue growth and a strengthened position as a leader in renewable energy in Malaysia. Meanwhile, KVC has enhanced its capabilities to meet the diverse needs of its customers.
Recently, Eddie participated in Huawei's Global Partner CEO Forum, held at Huawei's Dongguan campus. At the event, Huawei provided valuable insights into its company management, business planning, human resources, and more, while showcasing its leading practices in technological innovation, talent development, product R&D, and manufacturing.
Eddie noted that this clearly demonstrated Huawei's long-term commitment to its partners and further solidified KVC's confidence in continuing to deepen its collaboration with Huawei.
Solutions Empowering Industry Customers in Their Energy Transition
As a leading distributor, KVC offers a vast portfolio spanning nearly every area of electrical equipment, including switches, low-voltage electrical appliances, air conditioners, power supplies, cables, lamps, tools, and connectors, with over 25,000 stock-keeping units (SKUs). However, KVC's role extends beyond mere product sales. KVC provides tailored solutions designed to meet the unique needs of its customers, with a goal to "help customers build, operate, optimize, and enhance their assets."
In 2019, KVC introduced its branded solution, XtructureD, which caters to various sectors, including infrastructure, renewable energy, lighting, safety, cables, and industrial automation. KVC's team of experts collaborates closely with customers to deliver customized solutions that elevate their overall experience.
A key component of XtructureD is Huawei's Smart PV solutions. Featuring an AI-enhanced tracking system, Huawei's PV inverters offer higher energy generation efficiency, improving the benefits from PV systems and shortening the payback period. KVC offers comprehensive onsite support services, including installation and commissioning of PV systems, as well as training to ensure seamless integration of Huawei's products, solutions, and services.
Striving Towards Higher Goals
In August 2023, Malaysia unveiled the National Energy Transition Roadmap (NETR), aiming to optimize the country's energy mix. This initiative underscores Malaysia's commitment to energy efficiency, renewable energy, and the reduction of greenhouse gas emissions in the fight against climate change.
The implementation of NETR is expected to unlock significant opportunities for the growth of Malaysia's renewable energy sector, with projected investment opportunities worth up to MYR1 trillion by 2050.
During the inaugural Group-wide Sustainability Week of Sonepar in September 2024, KVC announced the launch of the branding identity, Net Carbon, which signifies the company's commitment to ramping up decarbonization efforts in industries such as manufacturing. Net Carbon aims to reduce the production carbon intensity to accelerate decarbonization across the manufacturing sector.
In late October 2024, KVC broke ground on its new central distribution center in Nilai, covering 6 acres of land. Scheduled to begin operations in 2026, the new facility will enable faster and more efficient distribution, significantly reducing delivery periods and enhancing service levels for customers across the region.
By 2026, KVC intends to expand its product offerings to 48,000, doubling its current product offerings and strengthening its partnerships with leading international manufacturers.
Eddie emphasized that KVC plans to further expand its product offerings in line with sustainable development initiatives and extend the Net Carbon brand into smart industrial solutions. KVC aims to deepen its partnership with Huawei, introducing Huawei's energy storage solutions to play a critical role in Malaysia's sustainable energy future under the NETR roadmap.
As KVC continues on this journey, the company, alongside its strategic partner Huawei, remains committed to its customer-centric approaches and deepened cooperation for shared growth, contributing to the green future of Malaysia.
