PT Branta Mulia gaining excellence through quality
PT Branta Mulia gaining excellence through quality
JAKARTA: Ten years old is quite young. Nonetheless, as the
first and leading tire cord manufacturer in Southeast Asia, PT
Branta Mulia is a mature establishment.
With production bases in Indonesia and Thailand -- and later
in Malaysia and the Philippines -- Branta Mulia has been
penetrating overseas tire cord markets ranging from Japan in Far
East Asia to Tanzania in Africa.
More than 50 percent of its products are sold on overseas
markets, particularly countries in the Asia-Pacific rim,
including Japan, China, Thailand, the Philippines, Malaysia,
Australia and New Zealand, and a number of countries in the
Middle East and Africa, including Iran, Kenya and Tanzania.
"Even a country like Iran, which used to import tire cords
from Turkey, turns to us. It shows that the price of our tire
cords is very competitive," Branta Mulia's president, Ibrahim
Risjad, said. "We invite competition to prove that our price is
competitive."
Founded in 1981, Branta Mulia commenced its production of tire
cords at its plant in Citeureup in Bogor, West Java, in 1985,
with an initial annual production capacity of 12,000 tons. The
company then several times expanded the capacity of its
production facilities in Citeureup to the current level of 21,000
tons per annum.
In 1990, Branta Mulia floated 12.5 million shares or 10
percent of its total common stocks, to the public through an
initial public offering on the Jakarta Stock Exchange. After
going public, Branta Mulia is 23 percent owned by Robby Sumampow,
22 percent by Henry Pribadi's family, 10 percent by the public
and seven percent by Ibrahim Risjad.
Branta Mulia has acquired a 49 percent stake in a joint
venture tire cord plant at Ayuthya, north of Bangkok, Thailand,
which began commercial production in 1993 with a capacity of
12,000 tons per year.
Last year the company recorded a 9.6 percent increase in net
sales to Rp 308 billion (US$132 million) and a 5.7 percent rise
in its net profit to Rp 37.1 billion over the previous year.
Branta Mulia's impressive performance is due largely to its
business strategy. All Branta Mulia's tire reinforcement products
can be made in line with its clients' specifications and the
company welcomes specific orders.
Currently, the company serves many of the world's leading tire
manufacturers, most notably Goodyear, Bridgestone, Firestone,
General Tire, Sime Darby Group, South Pacific Tires Group,
Michelin and Siam Tire Group.
Branta Mulia has also secured a new product approval from
Goodyear and Michelin for the use of its tire cord fabrics in
aircraft tires.
In ensuring the quality of its products, the company is
committed to using the best quality materials, the best modern
technology and quality-assured manufacturing processes.
The company secures its raw materials from the Du Pont Company
of the United States and other third-party suppliers. However,
raw materials represent only a small percentage of its production
costs.
"Tire cord is a high technology product. Thus, raw material
serves as a very marginal aspect in the structure of our
production costs. Similarly in the cement industry, most of our
production costs go towards the technology and machinery of the
plants," Risjad said.
In addition to checking the physical properties of the
materials secured for production and the purity of the chemicals
purchased, Branta Mulia's research and development center
monitors the production process in all stages, performs sampling
and testing as well as analyzes the products so that they can
meet approved international standards.
Due to its continuing efforts in assuring high-quality
products and production process, the company was awarded the
Quality Assurance Standard of ISO-9002 in October 1994.
Integration
Branta Mulia is concentrating on deepening its core business
and strengthening its market access rather than going downstream
to the tire manufacturing industry.
"No need to worry on the parts of tire manufacturers that we
will go downstream. No, we don't want to go downstream. We'd
better strengthen our production base," Ibrahim Risjad said.
To achieve the goal, Branta Mulia is engineering further
upstream integration. Currently it is building a polyester yarn
plant, with an annual production capacity of 12,000 tons. It also
plans to establish a rayon plant and a steel cord plant in the
near future.
Currently Branta Mulia is expanding the tire cord production
capacity of its Thailand plant to 16,500 tons per annum, which is
expected to be ready at the end of this year, and the capacity of
its nylon-66 yarn plant to 34,000 tons, which is projected to
commence production next year.
To strengthen its already strong market position in the
Association of Southeast Asian Nations (ASEAN) and tap more
benefits from the ASEAN Free Trade Area -- which will fully come
into affect in 2003, or could be accelerated to 2000 -- Branta
Mulia is expanding its production base to Malaysia and the
Philippines.
Besides Indonesia, Malaysia and the Philippines, ASEAN also
groups Brunei, Singapore, Thailand and Vietnam.
On August 25 in Kuala Lumpur of Malaysia, PT Branta Mulia
signed a joint venture agreement with Silver Image Investment,
Ltd., Seacorp Venture Capital Sdn. Bhd. and Kampong Yarn
Corporation Sdn. Bhd. for the establishment of the third tire
cord fabric manufacturing facility: Branta Industries (Malaysia)
Sdn. Bhd.
The construction of Branta Mulia's Malaysia plant, which will
have an annual production capacity of 12,000 tons of tire cords,
is expected to be ready early 1997.
The company has incorporated into its production facilities
tire cord technology from Goodyear Tire and Rubber Company of the
United States and collaborated with the Bridgestone Corporation
of Japan, to produce a full range of tire cord products.
Branta Mulia is already producing Nylon-66 under a licensing
agreement from Du Pont. Nylon 66 is a more superior quality
product compared to Nylon-6. Nylon-66 is used for high quality
radial tires, while the latter is used mostly for conventional
tires.
"This is the first and in fact, the only license ever granted
by Du Pont to an independent producer like Branta Mulia,"
Johannes Mung Harjono, a member of the company's board of
directors, said.
JAKARTA: Ten years old is quite young. Nonetheless, as the
first and leading tire cord manufacturer in Southeast Asia, PT
Branta Mulia is a mature establishment.
With production bases in Indonesia and Thailand -- and later
in Malaysia and the Philippines -- Branta Mulia has been
penetrating overseas tire cord markets ranging from Japan in Far
East Asia to Tanzania in Africa.
More than 50 percent of its products are sold on overseas
markets, particularly countries in the Asia-Pacific rim,
including Japan, China, Thailand, the Philippines, Malaysia,
Australia and New Zealand, and a number of countries in the
Middle East and Africa, including Iran, Kenya and Tanzania.
"Even a country like Iran, which used to import tire cords
from Turkey, turns to us. It shows that the price of our tire
cords is very competitive," Branta Mulia's president, Ibrahim
Risjad, said. "We invite competition to prove that our price is
competitive."
Founded in 1981, Branta Mulia commenced its production of tire
cords at its plant in Citeureup in Bogor, West Java, in 1985,
with an initial annual production capacity of 12,000 tons. The
company then several times expanded the capacity of its
production facilities in Citeureup to the current level of 21,000
tons per annum.
In 1990, Branta Mulia floated 12.5 million shares or 10
percent of its total common stocks, to the public through an
initial public offering on the Jakarta Stock Exchange. After
going public, Branta Mulia is 23 percent owned by Robby Sumampow,
22 percent by Henry Pribadi's family, 10 percent by the public
and seven percent by Ibrahim Risjad.
Branta Mulia has acquired a 49 percent stake in a joint
venture tire cord plant at Ayuthya, north of Bangkok, Thailand,
which began commercial production in 1993 with a capacity of
12,000 tons per year.
Last year the company recorded a 9.6 percent increase in net
sales to Rp 308 billion (US$132 million) and a 5.7 percent rise
in its net profit to Rp 37.1 billion over the previous year.
Branta Mulia's impressive performance is due largely to its
business strategy. All Branta Mulia's tire reinforcement products
can be made in line with its clients' specifications and the
company welcomes specific orders.
Currently, the company serves many of the world's leading tire
manufacturers, most notably Goodyear, Bridgestone, Firestone,
General Tire, Sime Darby Group, South Pacific Tires Group,
Michelin and Siam Tire Group.
Branta Mulia has also secured a new product approval from
Goodyear and Michelin for the use of its tire cord fabrics in
aircraft tires.
In ensuring the quality of its products, the company is
committed to using the best quality materials, the best modern
technology and quality-assured manufacturing processes.
The company secures its raw materials from the Du Pont Company
of the United States and other third-party suppliers. However,
raw materials represent only a small percentage of its production
costs.
"Tire cord is a high technology product. Thus, raw material
serves as a very marginal aspect in the structure of our
production costs. Similarly in the cement industry, most of our
production costs go towards the technology and machinery of the
plants," Risjad said.
In addition to checking the physical properties of the
materials secured for production and the purity of the chemicals
purchased, Branta Mulia's research and development center
monitors the production process in all stages, performs sampling
and testing as well as analyzes the products so that they can
meet approved international standards.
Due to its continuing efforts in assuring high-quality
products and production process, the company was awarded the
Quality Assurance Standard of ISO-9002 in October 1994.
Integration
Branta Mulia is concentrating on deepening its core business
and strengthening its market access rather than going downstream
to the tire manufacturing industry.
"No need to worry on the parts of tire manufacturers that we
will go downstream. No, we don't want to go downstream. We'd
better strengthen our production base," Ibrahim Risjad said.
To achieve the goal, Branta Mulia is engineering further
upstream integration. Currently it is building a polyester yarn
plant, with an annual production capacity of 12,000 tons. It also
plans to establish a rayon plant and a steel cord plant in the
near future.
Currently Branta Mulia is expanding the tire cord production
capacity of its Thailand plant to 16,500 tons per annum, which is
expected to be ready at the end of this year, and the capacity of
its nylon-66 yarn plant to 34,000 tons, which is projected to
commence production next year.
To strengthen its already strong market position in the
Association of Southeast Asian Nations (ASEAN) and tap more
benefits from the ASEAN Free Trade Area -- which will fully come
into affect in 2003, or could be accelerated to 2000 -- Branta
Mulia is expanding its production base to Malaysia and the
Philippines.
Besides Indonesia, Malaysia and the Philippines, ASEAN also
groups Brunei, Singapore, Thailand and Vietnam.
On August 25 in Kuala Lumpur of Malaysia, PT Branta Mulia
signed a joint venture agreement with Silver Image Investment,
Ltd., Seacorp Venture Capital Sdn. Bhd. and Kampong Yarn
Corporation Sdn. Bhd. for the establishment of the third tire
cord fabric manufacturing facility: Branta Industries (Malaysia)
Sdn. Bhd.
The construction of Branta Mulia's Malaysia plant, which will
have an annual production capacity of 12,000 tons of tire cords,
is expected to be ready early 1997.
The company has incorporated into its production facilities
tire cord technology from Goodyear Tire and Rubber Company of the
United States and collaborated with the Bridgestone Corporation
of Japan, to produce a full range of tire cord products.
Branta Mulia is already producing Nylon-66 under a licensing
agreement from Du Pont. Nylon 66 is a more superior quality
product compared to Nylon-6. Nylon-66 is used for high quality
radial tires, while the latter is used mostly for conventional
tires.
"This is the first and in fact, the only license ever granted
by Du Pont to an independent producer like Branta Mulia,"
Johannes Mung Harjono, a member of the company's board of
directors, said.