Budi Acid Jaya's profits up 201%<\/p>\n
JAKARTA (JP): PT Budi Acid Jaya, a major tapioca producer
\nlisted on the Jakarta Stock Exchange (JSX), reported a 201
\npercent increase in its net profits to Rp 30.2 billion (US$12.9
\nmillion) last year.<\/p>\n
The company doubled its net sales from Rp 73 billion in 1994
\nto Rp 148 billion last year, 21 percent higher than its
\nexpectations.<\/p>\n
Budi Acid's president, Santoso Winata, said yesterday that the
\nincreases in sales and profits were due mainly to production
\ncapacity expansion, particularly after the acquisition of six
\ntapioca factories owned by the Sungai Budi Group in November, as
\nwell as an increase in tapioca prices.<\/p>\n
\"The acquisition allowed us to expand our production capacity
\nfrom 225,000 tons to 510,000 tons per annum,\" Santoso said.<\/p>\n
He added that tapioca prices rose from an average of Rp 647
\nper kilogram in 1994 to Rp 750 last year.<\/p>\n
Tapioca contributed 75 percent of the company's total sales
\nrevenues in 1995, citric acid 20 percent and sulfuric acid 5
\npercent.<\/p>\n
\"We expect to double our profits this year to Rp 62 billion
\nsupported by a full year consolidation of tapioca sales from all
\nof our factories, which will increase our total sales by 70
\npercent,\" Santoso said.<\/p>\n
He noted that the demand for tapioca will increase this year
\nas a result of a massive capacity expansion of the paper
\nindustry.<\/p>\n
Santoso also explained that the company has set up two joint
\nventure factories with two different partners -- British Sugar
\nand Ve Wong Corporation of Taiwan -- to produce glucose and high
\nfructose, and monosodium glutamate (MSG).<\/p>\n
The company took a 50.1 percent stake in the $18 million
\nglucose and high fructose plant and 51 percent stake in the $20
\nmillion MSG plant.<\/p>\n
\"We realized that the competition in the MSG industry is very
\ntight now. However, we decided to produce MSG because our
\npartner, Ve Wong, promised to market about two-thirds of the
\ntotal production,\" Santoso said.<\/p>\n
The glucose and MSG plants have a total capacity of 50,000
\ntons and 18,000 tons per annum respectively. (08)<\/p>",
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