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