Indonesia’s Largest Animal Feed Producer to Enter the Tea Industry
Jakarta. Indonesia’s biggest producer of animal feed, Charoen Pokphand Indonesia, is expanding its business to include beverages with the development a Rp 400 billion ($30 million) packaged tea factory in an industrial estate in Cikande, Banten.
The plant is already in its construction stages, which is expected to reach completion next year, said Ferdiansyah Gunawan, a director at Charoen Pokphan Indonesia.
“The factory covers an area of around five to six hectares and will have the capacity to produce 40,000 packets of tea per hour,” Ferdiansyah said after attending an annual general shareholders meeting on Friday.
The product will be named Fiesta White Tea, he said, adding that the company sees huge prospects in Indonesia’s packaged tea industry, which still sees a limited number of players.
“We expect the product to become available in the market within a month [after construction ends]. We will initially aim for distribution in Jakarta, West Java, Central and East Java,” Ferdiansyah said.
Charoen, a unit of Thailand-based CP Group with a business history of being animal feed producers and breeders of day-old chicks, expanded its business into the downstream sectors by producing packaged chicken nuggets sold under the brand Golden Fiesta, Fiesta, Champ and Okey.
These nugget sticks are produced at Charoen’s plants in Cikande, Banten; Salatiga, Central Java; Medan in North Sumatra; Sidoarjo, East Java; and Mojokerto, East Java.
In related news, shareholders agreed on Friday to offer total dividends of Rp 295.1 billion, which represents a payout ratio of 16.9 percent from last year’s net income.
Charoen’s profit has dipped so far this year amid slow economic growth, with the company’s net income declining 34.7 percent to Rp 431.2 billion in the first quarter of 2015 comparison to the same period in 2014.
The post Indonesia’s Largest Animal Feed Producer to Enter the Tea Industry appeared first on The Jakarta Globe.