Bentoel & Sampoerna boost cigarette output
Two listed cigarette producers, PT Bentoel & PT HM Sampoerna, are installing new machineries to boost output with Rp300 billion and Rp2.8 trillion investment respectively.
Bentoel, a company controlled by Rajawali Corporation, is allocating Rp300 billion to modernize its machineries in Malang, East Java. Meanwhile, HM Sampoerna, controlled by Philip Morris, secured expansion license from Investment Coordinating Board (BKPM) to build Rp2.8 trillion plant in Karawang, West Java province.
Prior to the acquisition of Sampoerna Family's shares in HM Sampoerna, Philip Morris was engaged in production cooperation with Bentoel. But both parties terminated the cooperation that cost Bentoel a massive layoff in 2005.
"But we're modernizing our plants with new machineries as our sales grew by 60% in the first half," Darjoto Setiawan, managing director of Rajawali Corporation said yesterday.
With the expansion, HM Sampoerna would widen its gap with PT Gudang Garam Tbk. HM Sampoerna for the first time took the number one spot as the largest cigarette producer this year from Gudang Garam.
These new expansions reflects increasing demand both in domestic and export market. This is clearly a bad news for anti-smoking movement, but good news for government and the state budget even though the anti-smoking movement argues that the cost for the state in the longer run actually higher from increasing healthcare costs.
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Bentoel, a company controlled by Rajawali Corporation, is allocating Rp300 billion to modernize its machineries in Malang, East Java. Meanwhile, HM Sampoerna, controlled by Philip Morris, secured expansion license from Investment Coordinating Board (BKPM) to build Rp2.8 trillion plant in Karawang, West Java province.
Prior to the acquisition of Sampoerna Family's shares in HM Sampoerna, Philip Morris was engaged in production cooperation with Bentoel. But both parties terminated the cooperation that cost Bentoel a massive layoff in 2005.
"But we're modernizing our plants with new machineries as our sales grew by 60% in the first half," Darjoto Setiawan, managing director of Rajawali Corporation said yesterday.
With the expansion, HM Sampoerna would widen its gap with PT Gudang Garam Tbk. HM Sampoerna for the first time took the number one spot as the largest cigarette producer this year from Gudang Garam.
These new expansions reflects increasing demand both in domestic and export market. This is clearly a bad news for anti-smoking movement, but good news for government and the state budget even though the anti-smoking movement argues that the cost for the state in the longer run actually higher from increasing healthcare costs.
Labels: Rajawali Corp, Sampoerna
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posted by yosef at 9:55 PM
2 Comments:
I met with the marketing head of Sampoerna last month in an informal meeting, and i have to say they are doing everything right since they took control of the company. Be it from his convincing personality or from what he said to me, needless to say, I am very convinced Sampoerna is going to be the lone no.1 player in the market for a very long time.
i heard Rahman Halim is negotiating with BAT to sell the controlling stake in GGRM to BAT
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