PT Ricky to expand distribution

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)