PT Ricky to expand distribution

JAKARTA (JP): Mens underwear producer PT Ricky Putra Globalindo plans to expand its domestic distribution networks by investing Rp 35 billion (US$14.8 million) beginning next year.

Ricky Putra's president Ricky Gunawan said over the weekend that the new distribution centers would be opened in the country's major cities, including Palembang, Bandung and Semarang.

The expansion is expected to increase the company's market share at home, he said, adding that the company exports around 30 percent of its products to South Africa, Europe and Japan.

"GT Man, the company's leading brand product, presently holds up to 60 percent of the mens underwear market at home," Ricky claimed.

The company produces three different brands of men underwear -- Ricsony, GT Man and Ricky -- for lower, medium and higher income customers.

Ricky said that GT Man accounted for 60 percent of the company's yearly production 96 million pairs of underwear.

Ricky Putra, which was founded in 1988, booked Rp 10.87 billion in net income as of last month, up from Rp 9.30 billion in 1995.

Sales revenues totaled Rp 105.18 billion in the January to November period this year. The company's sales revenues are projected to increase to Rp 115 billion this year from around Rp 94.64 billion last year, he said.

In addition to mens underwear, the company also produces polo t-shirts as well as children's and ladies casual wear, 70 percent of which is sold domestically.

He said that the company also planned to establish dormitories, a child-care center, a primary school and a training center for its workers. The facilities are intended to improve the productivity of workers, most of whom are women.

"We will start constructing the facilities on a 30-hectare areas near the factory next year at a total cost of around Rp 4.5 billion," Ricky said. (04)