Mustika Ratu to build new plant in Cibitung
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)