Indofood Plans to Up Noodle Capacity
The world's largest instant noodle maker, PT Indofood Sukses Makmur, plans to boost its capacity to 14.5 billion packs per year from 13.5 billion to meet growing demand, a senior executive said on Tuesday (3/4/07).
The company would spend Rp1.6 trillion ($175.4 million) this year, 80% of which would be for expansion, director Thomas Tjhie said, according to Reuters. "Sales volume increased sharply to 11.3 billion packs last year, or up by 20%, resulting in Rp7.3 trillion in sales."
The per capita instant noodle consumption among Indonesia’s 220 million people is about 57 packs a year, lower than top instant noodle consumer Korea's 70 packs.
Indofood posted a more than five-fold rise in net profit last year on firmer sales and after earnings rebounded following hefty one-off charges in 2005.
In 2005, the company suffered heavy foreign exchange losses on its dollar-denominated debt, while it also had one-off charges from a currency swap contract and a premium paid on the redemption of its dollar-denominated bonds.
The company would spend Rp1.6 trillion ($175.4 million) this year, 80% of which would be for expansion, director Thomas Tjhie said, according to Reuters. "Sales volume increased sharply to 11.3 billion packs last year, or up by 20%, resulting in Rp7.3 trillion in sales."
The per capita instant noodle consumption among Indonesia’s 220 million people is about 57 packs a year, lower than top instant noodle consumer Korea's 70 packs.
Indofood posted a more than five-fold rise in net profit last year on firmer sales and after earnings rebounded following hefty one-off charges in 2005.
In 2005, the company suffered heavy foreign exchange losses on its dollar-denominated debt, while it also had one-off charges from a currency swap contract and a premium paid on the redemption of its dollar-denominated bonds.