October 3, 2012

In order to increase production capacity and seize the opportunities of strong domestic demand, Indonesia's processed food producer PT Sekar Bumi plans to establish a new frozen food factory.

Sekar Bumi president director Harry Lukmito said that Sekar Bumi, through its subsidiary manufacturing frozen food and frozen seafood PT Bumi Pangan Utama, intended to build a new factory early next year and expected to complete the project by the end of next year.

"This is our business plan, to boost current business of frozen food and frozen seafood. The country's 6% growth is our opportunity," Harry told reporters after witnessing the relisting of the company's shares in the Indonesia Stock Exchange (IDX). The company was delisted from the bourse in 2009 due to its poor financial performance.

The processed food producer relisted 851.39 million shares on Friday (Sep 28). The company did not issue new shares. The factory will be located in Jakarta, unlike the company's other factories, which are based in East Java.

It estimates that the factory would cost around IDR80 billion (US$8.3 million) with capacity of 600 tonnes per month. Harry said that combined internal and external funding would support the investment.

The firm is targeting to generate around IDR700 billion (US$73 million) in revenue by year's end, and an 8% increase compared to last year's IDR650 billion (US$68 million). As of the end of the first quarter, the company booked IDR360 billion (US$37.5 million) in revenue and almost IDR6 billion (US$625,000) in net profit, finance director Freddy Adam said. "We are targeting to book IDR12 billion (US$1.2 million) in net profit by the end of the year," Freddy said.

About 90% of the company's total revenue was contributed by their fish and shrimp feed manufacturing unit, which is run by its subsidiary PT Karka Nutri Industri. It has two other subsidiaries, PT Bumifood Agro Industry, a cashew nut processing business, and PT Sekar Katokichi, a breaded shrimp manufacturing business.