Mustika Ratu to build new plant in Cibitung

JAKARTA (JP): PT Mustika Ratu, a publicly-listed manufacturer of traditional medicines and cosmetics, plans to build a new manufacturing plant in Cibitung, West Java, to double its production capacity.

The company's president, Mooryati Soedibyo, said yesterday that the new plant will allow the company to meet the increasing demand for its products.

"This is especially driven by our expanding markets. In 1995 domestic market demand grew 30 percent and the export market grew 95 percent," Mooryati said after receiving an ISO 9002 certificate from PT Sucofindo's certification agency, the Sucofindo Register for Quality Assurance.

She noted that the new plant on 10 hectares will need an investment of Rp 35 billion (US$14.9 million), which the company will raise through initial share offerings.

In July last year, Mustika Ratu floated 27 million new shares, or 25.23 percent of its total enlarged capital, on the Jakarta Stock Exchange. The company raised nearly Rp 70 billion from the share offering.

The new plant, which will double the company's production capacity, will be built later this year. Commercial production is expected to begin by 1998.

Mustika Ratu produces more than 500 cosmetic products, including facial care, base make-up, decorative make-up, hair care and body care products.

The company also processes more than 60 kinds of traditional herbs into powders, pills, caplets, dried herbs and tea bags.

Mustika Ratu's annual production capacity currently stands at 43,300 grams of lip oil, 958,100 tubes of lipstick, 906,250 kilos of shampoo and almost two million packages of traditional herbs -- all under the Mustika Ratu brand name.

Cosmetics make up the largest share of the company's sales and profits.

The company enjoyed a 39 percent increase in sales to Rp 92.3 billion last year, up from Rp 66.3 billion a year earlier. Its net profits increased 114 percent to Rp 16 billion from Rp 7.5 billion.

The company last year increased its exports, which contributed 20 percent of total sales revenues.

Mustika Ratu plans to gain net profits this year of Rp 121 billion, with 25 percent of the total sales coming from exports.

Malaysia has been the company's primary overseas market.

Mustika Ratu's products are also shipped to Singapore, Brunei, the Philippines, Taiwan, South Korea, Japan, the Middle East, the Netherlands and Russia and the United States.

The company plans to open new outlets in Kuala Lumpur, Los Angeles and a number of cities in the Middle East this year. (rid)