JAKARTA. Consumer issuer PT Unilever Indonesia Tbk (UNVR) will focus on increasing the production capacities of existing factories in this year. Therefore, UNVR will allocate as much as € 115 million or Rp 1.6 trillion.
President Director of UNVR Hemant Bakshi said that the company will not build new factory in this year. “We need to have additional capacities in existing locations,” Hemant said, Wednesday (11/1).
Hemant added, the capital expenditure of this year will not be much different with the last year. The sales growth of this year is predicted to be not much different with the previous year, due to the sluggish people’s purchasing power.
UNVR also keeps innovating by launching new products, repackaging old products with the new features, and re-launching innovated products. The innovation is UNVR annual agenda.
Hemant is optimistic that UNVR will keep growing in Indonesia, thanks to stable economy. Furthermore, Indonesia has large consumers’ potentials. “We have nine factories, and we will distribute our products throughout Indonesia,” he said.
Corporate Secretary of UNVR Sancoyo Antarikso said, UNVR prepares lesser capital expenditure for this year compared with the last year that amounted to Rp 2 trillion, since the company will not build new factories. “The construction of head office has also completed,” he said.
Sancoyo said, UNVR will increase production capacities and prepare 40 innovated products. The company will focus more on increasing production capacities of home and personal care products, rather than food and refreshment products.
UNVR has constructed new factories in 2015 so that this year the issuer will focus only on increasing production capacities. Sancoyo said, Indonesia has large potentials of consumer business. In a long term period, Indonesia’s populations will be increasing. This becomes market potential for UNVR.
Analyst at NH Korindo Securities Bima Setiaji said, UNVR will record positive performance. UNVR is planning to increase the capacities of oleo chemicals in North Sumatra from 260,000 ton per year to 500,000 ton per year. “The increase in production capacities will boost UNVR revenues from palm oil derivative products,” Bima said.
In the other sides, UNVR is facing tight competition in ice cream business. “UNVR should maintain the existing market shares,” he said. Bima recommends ‘buy’ for UNVR shares, with the target price of Rp 47,900 per a share.
(Muhammad Farid/Translator)
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