PT Indo-Rama Synthetics Tbk (IDX: INDR), the textile company owned by "crazy rich" Sri Prakash Lohia, has completed the acquisition of 80 perncet of PT Cikondang Kancana Prima with valued of Rp300 billion (US$21.12 million) - Photo by Lifepal

JAKARTA (TheInsiderStories) – PT Indorama Synthetics Tbk (IDX: INDR), the textile company owned by “crazy rich” Sri Prakash Lohia, has completed the acquisition of 80 perncet of PT Cikondang Kancana Prima with valued of Rp300 billion (US$21.12 million). The entity is a gold mining and processing firm located in Cianjur, West Java.

“This transaction was completed on February 24, 2021,” said president director of the issuer, Vishnu Swaroop Baldwa, in an official statement released on Friday (02/26) without giving more information the purposed of the gold mining acquisition.

Currently 34.03 percent of the company shares owned by Indorama Holdings B.V, 25 percent by PT Irama Investama, and 40.97 percent hold by public. Indorama established in 1975 and started production for the first time a year later from a cotton spinning factory in Purwakarta, West Java.

Since mid of last year, the company businesses has been hit by the pandemic and have their production in Indonesia, Sri Lanka and Uzbekistan. Beside facing the risk of lowering income and profits, the company also has laid of their employees. Nevertheless, the pandemic does not stop their expanding planned.

Currently, the textile producer construct polyester spun yarn and polyester fiber factory located in Purwakarta. Baldwa said, both factories is estimating need costs more than $70 million and will start the production in 2021. The new spun polyester yarn factory will have a production capacity of 13,000 tones per year, while the new polyester fiber factory will have a capacity of 81,000 tons per annum.

The new factories will complement the company’ existing plants in Purwakarta, Bandung, Uzbekistan, Sri Lanka and Turkey. The company’s spun yarn production capacity is currently recorded at 130,000 tons per year, while the company’s polyester fiber production capacity is 280,000 tons per year.

With the existing trend, Baldwa said optimistic that the achievement of Indorama would be better than the realization in 2020. He estimated that export sales will still dominate the company’ sales until the end of the year, because the company still has a strong and diversified customer base in more than 70 export destination countries.

In the first half of 2020, the company’ gross export sales contributed $178.86 million or 62.51 percent and until the end of this year is estimated to be around 65 percent of total sales.

“We are optimistic that the products from the new factory will be absorbed by the market, because we have a strong market position with diversified customers,” He concluded.

US$1: Rp14,200

Written by Editorial Staff, Email: theinsiderstories@gmail.com