CLEO to Open Three New Bottled Water Plants Across Indonesia
Sariguna Primatirta, Indonesia's listed bottled water producer, plans to open three new factories soon. The company, which sells its bottled water under the Cleo Pure Water brand, is eager to expand its manufacturing and distribution networks across the Archipelago. Sariguna Primatirta, which was established in 2003, conducted its initial public offering (IPO) on the Indonesia Stock Exchange earlier this year.
Nio Eko Susilo, Director of Operations at Sariguna Primatirta, said the company will boost investment in order to expand its business. With three new factories expected to come online within the next eight months, the company will have the most factories among domestic bottled water producers.
He added the company has two key principals principles: (1) the production of high-quality bottled water and (2) easy access for the consumer (to Cleo products). Therefore, it is important to expand the manufacturing and distribution networks across the country.
The location of the three new factories are Ungaran (Central Java), Kendari (Central Sulawesi), and Ngoro (East Java). The Ungaran and Kendari plants are expected to become operational in 2017, while the Ngoro plant is expected to start production by April 2018.
The construction of the Ungaran and Kendari plants has actually already been completed. However, both plants cannot become operational yet because they still need to obtain the Indonesian National Standard (abbreviated SNI) certification as well as distribution licenses.
Besides adding new plants, Sariguna Primatirta has also been focusing on expanding production capacity of its existing 26,000 m2 plant in Pandaan (East Java) by adding new machines (plastic packaging and filler machines).
Belinda Natalia, President Director of Sariguna Primatirta, said the company will consistently invest each year in order to meet consumers' demand across the Indonesian Archipelago. Such business expansion is the company's effort to maximize the utilization of funds that were obtained through the IPO on the Indonesia Stock Exchange earlier this year.
She added that with more factories becoming operational Sariguna Primatirta will become the only premium bottled water producer in Indonesia that can compete with foreign counterparts that currently control 80 percent of the Indonesian bottled water market.
In full-year 2017 Sariguna Primatirta targets to see a 10 percent (y/y) rise in profit to IDR 47 billion (approx. USD $3.5 million) as Indonesian consumers' demand for bottled water is expected to rise 11.5 percent each year.
On Tuesday (15/08) shares of Sariguna Primatirta rose 2.59 percent to IDR 476 a piece. So far this year, the company's shares have surged 47.85 percent.
Stock Quote Sariguna Primatirta - CLEO:
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