In 1879, Eu Kong Pai left his hometown to settle down in Malaysia.

He noticed that the tin mine workers in Malaysia were addicted to opium, so he decided to start his own traditional Chinese medicine (TCM) business to help them.

Now, over 140 years later, that same company is set to be acquired for $594M (S$800M).

This is the story of Eu Yan Sang, one of the largest and most respected TCM brands across Asia, with over 300 retail stores globally.

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🔥 The beginning

Eu Kong was sent to Malaysia by his father, who believed his family would prosper in Southeast Asia.

He first opened a bakery and a textile dyeing business. Those businesses failed, so he decided to move to a remote town in Malaysia to join the tin rush with Chinese tin miners.

But when he saw how the tin miners were addicted to opium, he decided to open a small medicinal shop called Yan Sang in the town, offering his own blends of herbal tonics and remedies to relieve their addiction.

Most of them were illiterate and didn’t understand how dangerous opium was to their health.

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🌿 When expertise comes into play

Eu Kong came from a long line of TCM practitioners, and had studied and mastered many ancient herbal formulas and TCM techniques before coming to Malaysia.

Because of his expertise and dedication, this business was a hit. Yan Sang quickly built a great reputation. Soon, people were traveling from all over Malaya (now Malaysia) to visit his shop.

So, Eu Kong began expanding, opening additional stores in key towns. He recruited and trained skilled TCM practitioners, herbalists and pharmacists to maintain quality control and consistency as the business grew.

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💊 More than just selling

Apart from selling raw herbs and prepared medicines, Eu Kong educated customers on the benefits of traditional Chinese remedies. He wanted to revive the ancient wellness traditions that had been passed down for generations.

Moving into new businesses. Eu Kong also became a prominent businessman by using his earnings to buy land that was rich in tin deposits.

But the success was short-lived. Eu Kong suddenly died in 1890 at 37, leaving his businesses to his wife.

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😱 Where things get interesting

His wife was later poisoned by Eu Kong’s brothers. Luckily, Eu Kong’s son, Eu Tong Sen survived.

Eu Tong Sen took over at 21, dedicating himself to the family business and his father’s goal. He didn’t have an easy start since the family businesses were failing.

But by the early 20th century, Eu Tong Sen became one of the richest men in Southeast Asia with tin mines, rubber plantations, land, and a bank.

Wherever he had a tin mine, Eu Tong would set up a Yan Sang TCM shop to take care of his workers’ health.

As he expanded Yan Sang, he decided to rebrand the TCM shops with the attachment of the family name (Eu), renaming it to Eu Yan Sang as we know it today. He also expanded the brand to Singapore, Kuala Lumpur, Guangzhou, and Hong Kong.

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🧠 The third generation

In 1941, Eu Tong Sen sadly passed away. He left 13 sons, and this made running the businesses tricky—there was an equal division of shares among the 13 of them.

By the 1980s, most of their family businesses were sold. Only their TCM business, Eu Yan Sang was left struggling to survive under the management of the divided Eu family.

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👨‍👩‍👧‍👦 Keeping the family business alive

Richard Eu, a 4th generation family member, joined Eu Yan Sang Holdings (EYS Holdings) to keep the last family business alive.

While he was able to become General Manager in 1989, his extended family (including 10 uncles and aunts, and 72 cousins) were not supportive of him.

In 1990, EYS Holdings was taken over by property management firm Lum Chang since the majority of Eu Yan Sang shares were sold off by several 3rd generation family members.

But by 1993, Richard and his cousins, Robert and Clifford Eu, successfully bought over Lum Chang's shares in EYS Holdings. With the business now family-owned, they named it Eu Yan Sang International (EYSI).

EYSI was listed on the mainboard of the Singapore Stock Exchange in 2000. And in 2016, a consortium led by the Eu Family, Temasek Holdings and Tower Capital Asia became the majority owner to invigorate the business, and delisted it from the SGX.

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🌐 Making TCM modern

Now, Richard Eu, is still the Chairman of EYSI. His son, Richie Eu is also the Managing Director of Mergers & Acquisitions for EYSI.

Getting consumers to embrace TCM over modern Western medicine wasn't easy, especially when it came to the younger generation.

But Eu Yan Sang tackled this challenge head-on through creative marketing, branding, and research—while staying true to their traditional Chinese medicine roots.

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🧐 How they did it

The company invested heavily in research and development, using the latest scientific methods to validate the efficacy of their herbal formulas.

They also changed their packaging and developed new easy-to-use product lines targeting younger consumers, like gummy vitamins and herbal drinks.

Competing with Western Medicine. They’ve even taken initiatives to prove the science behind TCM and compete with western medicine, even using tech to identify each TCM herb's unique chemical compositions.

They also do research with universities from Singapore, Hong Kong and China to validate, develop and improve TCM products.

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🌳 Diversifying and expanding

The company also made acquisitions to strengthen their R&D capabilities and distribution network.

Apart from online channels, they have over 170 retail outlets across Hong Kong, China, Macau, Malaysia, and Singapore, providing more than 300 products under the Eu Yan Sang brand and over 1,000 types of Chinese herbs and medicinal products.

As of 2022, the group operates 28 TCM clinics in Singapore, Malaysia and Hong Kong, with over 50 licensed TCM practitioners. These clinics offer services such as acupuncture, tui na, gua sha, cupping and dispensary of TCM prescriptions.

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💰 Here and now

Now, as Eu Yan Sang marks their 145th year anniversary, Japanese firms Mitsui & Co and Rohto Pharmaceutical are set to buy 86% stake of Eu Yan Sang for $594M by June. With this, Mitsui will hold 30% of Eu Yan Sang’s shares, while Rohto holding 60%, and the Eu family holding 10%.

From a single shop in a remote town in Malaysia, they’ve become a household name industry leader in Asia, successfully bridging the gap between ancient tradition and modern needs.