Food and beverage producer Mayora Indah will boost its capital expenditures by as much as 17 percent this year to build a new manufacturing plant, a company official said on Wednesday (14/06). (Screenshot taken from www.mayora.com)
Food and Beverage Giant Mayora Indah to Build New Plant on the Back of Increased Sales
BY :SARAH YUNIARNI
JUNE 15, 2017
Jakarta. Food and beverage producer Mayora Indah will increase its capital expenditures by as much as 17 percent this year to build a new manufacturing plant, a company official said on Wednesday (14/06).
Yuni Gunawan, a corporate secretary at Mayora Indah, said in an email on Wednesday that the company will increase expenditures in 2017 to nearly Rp 700 billion ($52.7 million), up from Rp 664 billion last year. The company spent Rp 183 billion by the end of May.
Mayora is the producer of popular snacks in Indonesia, including Torabika instant coffee, Kopiko candy and Beng Beng chocolate bars. The company purchases raw materials from local and foreign sources.
"This year, our strategy includes diversifying our products, using more locally-sourced raw materials and equipping our factories with the latest tech," said Hendrik Polisar, Mayora Indah's president director.
The company will fund its planned expenditures – including a Rp 500-600 billion investment in a new factory in Balaraja, Banten – through internal cash and bank loans.
Construction on the Balaraja plant is expected to commence in the second half of this year, while operations are slated to begin sometime in 2018. Meanwhile, the remainder of Mayora's capital expenditures will be allocated to purchasing new processing equipment and upgrading repair services.
The company will look to bring in around Rp 20 trillion in net sales this year, a 9.6 percent increase compared to last year's figures.
In 2016, Mayora sold 55 percent of its products locally, though the company exports to at least 60 countries worldwide, including Japan, China, Russia and Nigeria.
Mayora's net income rose 11.5 percent to Rp 367 billion in the first three months this year, compared to the corresponding period last year due to strong sales.