Life sciences firm Transcu Group <TRSU.SI> expects a 10% rise in its 2011 revenue on the back of higher sales of its mineral-ore based soap as it moves away from mail-order delivery to shop-based retail.

The company plans to increase the number of shops in Japan, where the soap and other cosmetic products are mainly available, to 1,000 from 270 within two years.

“We decided to use shops in May and over two months we have more than 200,” said chief executive officer Akihiko Matsumura said. “That’s the kind of speed that we have had. Increasing the number to 1,000 within two years is amply possible.”

Transcu, established in Japan and headquartered in Singapore, posted revenue of $8.2 million ($10.8 million) in the 2010 financial year ended March.

Previously, the company’s cosmetics products were sold only via mail order, through websites and television shopping channels.

Transcu is also banking on its energy-efficient fuel systems, which it said can reduce fuel costs and nitrogen dioxide emission in marine vessels, to drive future growth as its pharmaceutical business is still making a loss.

Transcu recently signed a three-year distributorship agreement worth US$500,000 with petrochemical firm Shanghai Timeast to sell and market its fuel system in China, and is eyeing other markets in Southeast Asia such as Indonesia.

Following the company’s announcement, its share price rose as much as 7.7% to $0.14 on September 20. The stock fell 3.8% on Tuesday, but has risen 8.7% since the start of the year.

In its first quarter ended June, the company made a net loss of US$3.1 million, narrowing from a loss of US$7.3 million a year ago, mainly due to lower research and development expenses as well as selling and administrative costs.