व्यवसायाची मुळे आणि त्यापलीकडे (Beyond the Core)

Beyond the Core: The Two-Engine Strategy for Long-Term Wealth

Strategic investment business growth concept

Published: July 3, 2026 | Reading Time: 3 min

We are often taught that a business's success is defined by its core operations—selling a product, providing a service, and optimizing the margins in between. However, a closer look at the financial statements of Haw Par Corporation (the company behind the iconic Tiger Balm) reveals a fascinating, alternative approach to business longevity and profitability.

Understanding the "Two-Engine" Strategy

In a recent presentation, the speaker highlighted a situation that might seem counterintuitive: a company’s net profit exceeding its revenue. This is possible through the "Two-Engine" growth strategy:

  • Engine 1: The Operating Business. This is your bread-and-butter—the production and sales of your primary products.
  • Engine 2: The Investment Portfolio. This acts as a "second business." Haw Par utilizes its capital to invest in shares, generating passive dividend income that insulates the company from operational volatility.
💡 Key Insight: Don't just focus on the daily "cut"—trimming expenses. Pay serious attention to your balance sheet strategy to secure long-term valuation and stability.

Why This Matters for Entrepreneurs

Most entrepreneurs are consumed by the stress of daily variables—missing shifts, delivery delays, or production bottlenecks. While operational efficiency is critical, building a secondary engine provides a crucial safety net. It creates a balance sheet that remains robust even when the primary engine encounters rough weather.

Final Thoughts

Think of your second engine as a second business. Just as it took time to build your primary enterprise, it takes intention and strategy to build an investment engine that truly secures your future. It is not about instant gratification, but about creating an ecosystem that survives and thrives for decades.

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