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.