Business Diversification - Mandom Expands into Warehouse Rental Business
Jakarta — In pursuit of more aggressive business growth, PT Mandom Indonesia Tbk. (TCID) is expanding into the warehouse rental sector as part of efforts to optimise assets. The company conveyed this information in a press release in Jakarta yesterday.
The cosmetics issuer, producer of brands such as Gatsby and Pixy, explained that this diversification step is being taken through the addition of Indonesian Standard Business Classification (KBLI) 68126 related to warehouse rental and self-storage facilities, utilising the warehouse capacity already owned by the company.
This expansion not only aims to open new sources of income but also to optimise existing assets that have not been maximally utilised thus far. In the feasibility study, the company assessed that the warehousing market has strong prospects in line with the national economic growth that has returned to around 5% per year post-pandemic.
Moreover, the transportation and warehousing sector is considered to have a strategic role in supporting economic activities, so demand for storage services is projected to continue increasing. From 2013 to 2025, the transportation and warehousing business field has averaged 6.6% growth per year.
Meanwhile, its contribution to GDP tends to grow each year, from 3.3% in 2013 increasing to 4.83% in 2025. Based on the analysis results, the average growth of the warehousing sub-field and supporting services for transportation, post, and courier from 2013 to 2025 reaches 8.7% per year and is the sub-field with the highest growth in the transportation and warehousing business field.
The company also views this business as having a captive market, so the potential for competition is relatively limited compared to other warehousing players in the surrounding operational locations. From a strategy perspective, the company will target tenants from both affiliated and non-affiliated parties by offering competitive rates and maintaining warehouse facility quality. The addition of this KBLI is considered a strategic step to create added value for the company.
In addition to opening up business diversification opportunities, this expansion also has the potential to enhance the company’s credibility in the eyes of investors and stakeholders, as well as optimise the utilisation of existing resources. Financially, the study results show that this project has a very high level of feasibility.
The internal rate of return (IRR) indicator is recorded at 84.12%, with a net present value (NPV) of Rp234.72 billion and a benefit-cost ratio (B/C ratio) of 2.58. Meanwhile, the investment payback period is estimated at only around 2.58 years, reflecting relatively quick return potential.
TCID intends to seek approval from the Company’s Shareholders through the Annual General Meeting of Shareholders to be held on 19 May 2026.