Delifrance enters Indonesia

Delifrance enters Indonesia

SINGAPORE (Reuter): A new joint venture in Indonesia involving Delifrance Asia Ltd should eventually have a turnover of some Singapore $100 million a year, an official from the Indonesian side of the venture said yesterday.

Earlier, Delifrance announced it had entered into a franchise agreement with PT Citra Bonang of Indonesia to operate retail outlets in that country.

"We expect to make about S$100 million in turnover in a few years," Kris Wiluan, president of Pt Citra Agramasinti Nusantara, told reporters.

Wiluan, through his family holding company PT Citra Bonang, is a substantial shareholder in the Indonesian franchisee. Delifrance said in a statement the 50:50 joint venture company, likely to be named PT Delifrance Nusantara, aimed to open 120 Delifrance cafe bakeries in Indonesia by 2006.

The franchise and joint venture would be for nine months from June 28, 1997, renewable for a further nine years with subsequent renewals to be negotiated, it said.

"This franchise and joint venture in Indonesia is expected to bring a positive contribution to the group's earnings and net tangible assets in the coming years," Delifrance said.

It said the group was negotiating similar franchise agreements in the region, but gave no further details.

The expansion plan will be financed through internal resources, the statement said.