JAKARTA (TheInsiderStories) – Indonesian food maker, PT Garudafood Putra Putri Jaya Tbk (IDX: GOOD) plans to expand to the African region, the official told TheInsiderStories recently. The company will market Gery Biscuits to the country and set up factories with a minimum investment of Rp70 billion (US$4.96 million).
Garudafood Chairman Sudhamek Agoeng Waspodo Soenjoto said the company has a factory in Bangalore, India. However, the company wants to add overseas expansion.
“We see that Africa is a potential country, China is too crowded,” he said.
In the initial stages, Soenjoto revealed, his party will export products to Africa. After two years, the new company will have started to build a factory by cooperating with local partners.
“The investment value for one machine is around Rp30 billion, so the total minimum is Rp70 billion,” he explained.
With this expansion, he hopes to support the Garudafood business. Because the food and beverage industry is facing tight competition, so it is only growing 1-2 percent.
“We hope that GarudaFood can grow above the industry, this year around 10-11 percent and next year around 10-12 percent,” he said.
In addition, the company will also add factory capacity in Rancaekek, West Java and Gresik, East Java this year. With the addition of capacity, production in both factories could increase by 10-15 percent.
Garudafood Director Paulus Tedjosutikno said that the company operates four factories in Indonesia. It has in Rancaekek, Gresik and two in Pati, Central Java. Average production utilization reaches 70 percent of total capacity.
In 2018, the total installed capacity for peanut production reached 95,059 tons per year. While biscuits, confectionery, and milk products amounted to 154,469 tons per year.
Tedjosutikno added, the company will also strengthen distribution channels to reach consumers. Garudafood is currently supported by a nationwide distribution network managed by its subsidiary, PT Sinarniaga Sejahtera (SNS), with 120 depots, 130 SNS partners and 70 SNS partners reaching out to 350,000 customers.
In 2019, Garudafood sets a sales target of 15 percent growth to Rp9.26 trillion. To spur the sales, the company will grow the export market by 20 percent.
While, in 2018, the export market contributed 7 percent to total sales of Rp8.05 trillion. Going forward, the company targets export will contribute by 10 percent of total sales. At present, GarudaFood has made export sales to more than 20 countries with a focus on ASEAN, China, and India.
GarudaFood is a food and beverage company that was formally established on August 31st, 1990 pursuant to the Ministry of Law Decree, subordinated to Tudung Group. Besides GarudaFood, Tudung Group also engages in palm oil plantation and peanuts.
GarudaFood Group had originated from PT Tudung Putra Jaya (TPJ), it was established in Pati, Central Java. Seven years after established, the company started to establish PT GarudaFood Jaya (GFJ) and produce Gery brand biscuits. Then a year later GarudaFood acquired PT Triteguh Manunggal Sejati (TRMS) which produces jelly brand Okky and Keffy.
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