Astra spins off spare-parts division<\/p>\n
JAKARTA (JP): Publicly listed car manufacturer PT Astra
\nInternational has transferred its Aspira automotive spare-parts
\ndivision to its subsidiary in a bid to boost efficiency.<\/p>\n
Astra International's publicly listed subsidiary PT Astra
\nOtoparts said on Wednesday that taking over the Aspira division
\nwas part of enhancing Astra International's overall performance.<\/p>\n
"Astra International is hoping to become more flexible and
\nefficient by transferring Aspira to us," Astra Otopart president
\nBudi S. Pranoto said in a press meeting.<\/p>\n
The Aspira division produces alternative brands for automotive
\nand motorcycle spare parts under the brand name Aspira. Astra
\nOtoparts produces the more expensive genuine spare parts.<\/p>\n
Budi said that Astra International relinquished its Aspira
\nspare part division in July this year, emphasizing that the
\ntransfer was not an acquisition.<\/p>\n
In acquiring Aspira's inventory, he said, Astra Otoparts paid
\nAstra International Rp 30 billion.<\/p>\n
"The expertise (of making spare parts) lies with us," he said
\nof the transfer of Aspira to Astra Otopart.<\/p>\n
According to him, Aspira would offer equal quality to Astra
\nOtoparts' products, despite its lower prices.<\/p>\n
"Astra Otoparts believes that not all vehicle owners are
\nwilling to spend more money on genuine parts. About 77 percent
\nvehicle owners are using alternative parts," he said without
\nelaborating Aspira and Astra Otopart's current market share.<\/p>\n
Aspira, Budi said, is expected to contribute about 20.8
\npercent of Astra Otopart's sales revenue, or some Rp 210.66
\nbillion (US$23 million) within this year's second semester.<\/p>\n
He also assured that Aspira prices would remain low despite
\nthe take over.<\/p>\n
"Better still, fluctuation in the rupiah will not affect our
\npricing policy thanks to the low import content," Budi added.<\/p>\n
He explained that more than 81 percent of Aspira's product
\ncomponents were of local content.<\/p>\n
He said his company was planning to invest another Rp 30
\nbillion in expansion plans should business prospects permit.<\/p>\n
"We expect growth of 112 percent over the next five years with
\na minimum annual growth of 15 percent," he predicted.<\/p>\n
Aspira sells its products across the country through 84
\ndealers, 59 suppliers and over 2,000 stores for motorcycles and
\n600 stores for automotive spare parts.<\/p>\n
The company further planned to expand Aspira's market from
\nlocal oriented to export oriented, he said.<\/p>\n
He said Astra Otoparts was exporting to 52 countries with main
\nmarkets located in the Middle East and Asia.(bkm)<\/p>",
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