Great River to export most of its products
Great River to export most of its products
JAKARTA (JP): Publicly listed garment producer PT Great River
International will export most of its products this year because
domestic demand continues to decline, a company executive said
yesterday.
The company's president and chief executive officer, Sunjoto
Tanudjaja, said about 70 percent of this year's total production
would be sold overseas.
In past years, he said, the integrated textile company
allocated only between 40 percent to 50 percent of its total
output for export.
"We will boost our exports to anticipate a decline in domestic
demand due to people's weakening purchasing power," he said after
the company's annual shareholders meeting.
Sunjoto said the company had established a subsidiary named PT
Great River Export to support export activities.
The company produces well-known brand-name products such as
Triumph, Arrow, Disney, Choya, Saville Row, Nino Cerutti, Kenzo,
Pierre Cardin and Elle and currently exports to 20 countries.
Last year, about 44 percent of its exports went to other ASEAN
countries and Australia, 39 percent to Japan and the remaining 17
percent to European Community and the United States.
Sunjoto said the company was optimistic about reaching its
export target given the promising demand from several new
overseas markets such as Middle East countries and other European
countries.
He said the company reduced its annual production capacity by
70 percent at the beginning of this year in order to boost
efficiency.
He added that at present the company focused only on producing
well-known brand names of lingerie, T-shirts, casual wear, men's
clothing, children's clothes and jeans.
Sunjoto said the company would also sell some of its
subsidiaries as part of the company's program to focus on its
core business.
"We want to concentrate on our core business. The funds we get
from our divestment will be used to strengthen the consolidation
of our core business," he said.
He declined to give further details.
The company also reported that its sales rose 22.5 percent to
Rp 82.4 billion (US$5.89 million) in the first quarter of this
year over Rp 67.3 billion in the same period last year.
The company said the increase in sales was due to the increase
in its exports.
Sunjoto said it was decided at the shareholders meeting not to
pay a dividend for the company's 1997 earnings due to the loss it
suffered during the year.
Sunjoto said the company suffered a net loss of Rp 12.5
billion last year due to foreign exchange losses of Rp 24.43
billion despite the increase in operating profit to Rp 51.53
billion.
The company booked a net profit of Rp 25.7 billion in 1996.
(gis)