Sreeya Sewu Indonesia (SIPD) Expands into Animal Feed Sector in 2026 - PintarSaham
PT Sreeya Sewu Indonesia Tbk (SIPD) has announced plans to add a new business activity, namely the animal feed concentrate manufacturing industry (KBLI 10802), to strengthen the legality of its upstream-to-downstream operations. This step will be taken through an Extraordinary General Meeting of Shareholders (EGMS) on 21 April 2026, without any material negative impact on the company’s financial condition, as the production activities have already been ongoing.
Details of SIPD’s Business Expansion
PT Sreeya Sewu Indonesia Tbk plans to add Indonesian Standard Industrial Classification (KBLI) 10802, which covers the production of concentrates for animal, poultry, and other livestock feed. Management explained that the primary reason for this addition is to complete the necessary permits, as the concentrate production has long been part of the company’s production process.
Based on a feasibility study by Independent Appraiser KJPP Ruky, Safrudin & Partners, the financial projections for the new KBLI show feasible figures with an Internal Rate of Return (IRR) of 17.21%. This value exceeds the assumed discount rate of 9.74%, with a positive Net Present Value (NPV) of Rp192,712,000,000.
The implementation of the articles of association changes regarding the addition of business activities will be decided at the official shareholders’ meeting.
Impact on Investors
The addition of KBLI 10802 will not cause share dilution for existing shareholders, as it is not a corporate action involving new share issuance (rights issue). Investors gain legal certainty over the animal feed business line operations, which have long been a contributor to the company’s revenue.
From a fundamental perspective, this step is expected to improve cost efficiency through strengthening the independent supply chain from upstream to downstream. However, investors should note the risks of fluctuations in key raw material prices, such as Soybean Meal (soybean meal), which could affect profit margins.
Management emphasised that there is no significant impact on the financial condition due to this KBLI addition. This is because there are no drastic additions to fixed assets or new infrastructure, given that the concentrate production facilities are already available and operational.
Based on the break-even point (BEP) analysis, this business activity shows an average of Rp366,526,000,000 or equivalent to 32.08% of average revenue. The Profitability Index (P/I) ratio is recorded at 1.62, indicating that every unit of investment can generate additional value for the company.
Source of Information: SIPD’s Material Transaction Disclosure
SIPD Investor FAQ
Does this business addition require significant capital? Operationally, no, because concentrate feed production activities have already been carried out by the company previously, so this step is more towards fulfilling regulatory permitting requirements.
What is the biggest risk in this animal feed business line? The main risk is fluctuations in imported raw material prices such as soybean meal and dependence on economic conditions that affect public purchasing power for poultry products.
When will this articles of association change take effect? The change will be effective after obtaining shareholder approval at the EGMS on 21 April 2026 and ratification from the Ministry of Law and Human Rights.
Key Points for Investors
Financial Viability: Projections of 17.21% IRR and positive NPV of Rp192.7 billion indicate healthy business prospects.
Legal Certainty: The addition of KBLI 10802 aims to meet legal aspects of applicable regulations.
Market Strategy: Leveraging potential from 865 poultry farming companies in Indonesia that require quality feed.
Capital Structure: No changes to share structure; majority ownership remains with PT Great Giant Pineapple at 90.78%.
Company Profile
PT Sreeya Sewu Indonesia Tbk (SIPD), formerly known as PT Sierad Produce Tbk, is an integrated poultry company in Indonesia established in 1985. Its business activities include chicken breeding, animal feed industry, chicken slaughterhouses, and frozen food processing through its subsidiary PT Belfoods Indonesia.