[FETV=김윤섭 기자] Daesang announced on the 17th that it will increase its sales in Indonesia by an additional KRW 1 trillion within the next 10 years.
Daesang’s Indonesia business sales amounted to 369.7 billion won in 2020, up 7% from 3464 billion won in the previous year. Daesang presented a blueprint for each sector that aims to become a’Top 10 Food Company in Indonesia’ and a’Leading Company in Southeast Asia’ by achieving sales of KRW 1.4 trillion in 2030.
Daesang established Miwon Indonesia (PT.MIWON INDONESIA) in Indonesia in 1973 and entered the bio business by exporting plants overseas for the first time in Korea, and has since expanded its business to food and starch sugar to target the Indonesian market.
The target is to specify business plans for each sector and actively promote them to achieve business results in Indonesia. First, the food business plans to diversify the business through the development of new growth engines, advance food sales by sales channel, and expand the main distribution center in Indonesia.
The starch sugar business is promoting the expansion of starch syrup production lines in order to expand sales in the high fructose and low sugar market, and to respond quickly to market changes, and plans to diversify product portfolios, stabilize supply chains, and diversify export regions.
The bio business is also pursuing a strategy to expand its production capacity through process automation and diversify its product portfolio by making new investments for the production of functional amino acids. In addition, it plans to expand its sales base by actively targeting countries that do not prefer Chinese-made MSG such as Japan and Taiwan.
◆Food-Expanding the food business to’Mamasuka’, a comprehensive food brand
Daesang’s Indonesian food business recorded KRW 132.6 billion in 2020, an increase of 12% from KRW 114.8 billion a year earlier. Daesang is actively targeting the Indonesian market with the image of a local-friendly company built up through long-standing Indonesian business and halal food produced in local factories.
Daesang is presenting a variety of products through Indonesian comprehensive food brand’Mamasuka’, launched in 2010. Laver and breadcrumbs are the No. 1 market share in the local market. In particular, laver is unrivaled with a whopping 63% market share, overtaking Thailand’s Taokaenoi, which has a large-scale laver business in Southeast Asia 1 Keeps the stomach Recently, it has successfully settled in the market by launching sprinkled seaweed that embodies the taste that matches local food.
Factory localization is a big competitive edge for Indonesian food business. PT. Food production plant located in Karawang, Indonesia. Aneka Boga Nusantara produces 20,000 tonnes of food per year. In addition, as Indonesia is the representative halal food market, all products are produced and sold as halal products that have obtained Indonesia’s MUI Halal certification.
◆Starch sugar-More than doubled in 3 years of starch sugar business
Daesang’s Indonesian starch sugar business recorded sales of 44.3 billion won in the first year of completion and production of the starch sugar plant in March 2017, and increased 19% from the previous year’s 87.5 billion won to 103.7 billion won in 2020. Daesang ranked first in both the corn starch market and the high fructose market this year, and has emerged as a representative starch sugar company in Indonesia about three years after entering the market.
The background of the high growth of the Daesang Indonesian starch sugar business is a factory equipped with the latest facilities and manufacturing technology. The experience and know-how of overseas plant construction, including the domestic starch sugar plant operation know-how, the Indonesia MSG plant, and the Philippine starch syrup plant establishment, were the basis. Operational efficiency has been maximized through the latest facilities, and cost competitiveness has been reinforced through a plant utilization rate of 100%.
The product portfolio also succeeded in diversifying into high value-added products such as water starch, starch, high fructose, low sugar, liquid sugar, and sub-products through continuous market development and production facility changes, and established a stable business portfolio. The supply of high-quality products applying Daesang’s quality management system is also raising the competitiveness of the Indonesian starch sugar business.
◆Bio-Bio business with stable sales such as large customers
The bio business, which Daesang first started in Indonesia in 1973, is also growing steadily. The sales of the bio business, which reached KRW 1154 billion in 2017, recorded KRW 133.4 billion in 2020, a decrease of 5% from KRW 140.5 billion in the previous year, but increased by 16% compared to 2017, maintaining steady growth.
The Indonesian bio plant produces 80,000 tons of MSG annually, and is strengthening its competitiveness based on 47 years of business know-how and the brand power of’MIWON’. Indonesia’s marketing and sales corporation’PT. Through cooperation with’JICO’, we have secured a sales network in all regions of Indonesia, and we are improving quality through continuous R&D activities.
It is achieving stable sales by expanding contracts and supply with large B2B customers such as’Indofood’ and’Unilever’. In addition, the improvement of productivity, cost reduction, and quality improvement of factories are also considered as the main reasons for the increase in earnings.
Daesang CEO Lim Jeong-bae said, “Since entering Indonesia in 1973, Daesang has established itself as a representative food and ingredient company in Indonesia with its solid brand power and manufacturing competitiveness.” “Daesang’s global competitiveness through continuous investment and aggressive growth in the Indonesian business “We will lead the food and material business in Southeast Asia by strengthening our products and expanding the export of Indonesian products to all of Southeast Asia.”