PT Great River to nurture retail business

JAKARTA (JP): Publicly-listed textile manufacturer PT Great River Industries said yesterday that it will further strengthen its retail business both in the domestic and international markets this year.

"We have decided to become an integrated textile producer and retailer. We will also try to become an international retail company by increasing the production and distribution of products with international brands," Great River's president, Sunjoto Tanudjaja, said after the company's annual shareholders meeting yesterday.

Sunjoto said that in an effort to strengthen its retail sector, the company has increased equity participation in its subsidiary PT Inti Fasindo International, which was established in 1993 as a retail and distribution company.

Great River allocated 50 percent of the Rp 129 billion (US$56.1 million) fund raised from its rights issue earlier this year for the retail expansion.

As of the end of last year, Inti Fasindo owned 12 branches and 440 outlets throughout the country in partnership with 9,000 fashion dealers.

Sunjoto also said that the retail business contributed 75 percent to Great River's total sales last year.

He explained that Great River's sales rose 23.6 percent to Rp 182.3 billion last year, while its net profits increased by 27 percent to Rp 13.3 billion. The company's exports accounted for 30 percent of last year's net sales.

For this year, the company is projected to book Rp 250 billion in sale revenues and Rp 26 billion in net profits.

Yesterday's meeting approved the management's proposal to pay a dividend of Rp 75 per share, totaling Rp 6.7 billion or about 50 percent of the company's 1995 profits.

The company's shareholders also appointed Susanto Suhardjop as a new director and decided to split the company's shares by halving their nominal value from Rp 1,000 to Rp 500.

To create an image as an international distributor, the shareholders also agreed to change the company's name as to PT Great River International. (08)