Indonesia's Mayora Bets on Exports to Drive Double Digit Growth
(Bloomberg) -- PT Mayora Indah, Indonesia’s largest listed consumer goods exporter, expects demand for its instant coffee and biscuits to drive a double digit growth in revenue during the next five years.
The company, which generates about half its revenue overseas, will boost instant coffee exports to Russia and Eastern European countries this year, said Ricky Afrianto, Mayora’s global marketing director. It also plans to market more of its products in Southeast Asia, which accounts for 60 percent of its 10 trillion rupiah ($708 million) annual exports, he said.
Mayora’s bullish export outlook comes amid efforts by authorities to boost shipments to narrow a record trade deficit amid a raging U.S.-China trade war. With global economic growth set to weaken demand for raw materials, the mainstay of Indonesian exports, the government is pushing for exports of more processed and finished goods.
“The potential that we have within the Asean markets remains huge,” Afrianto said in an interview. “We are not selling commodities, we are offering value added products. In terms of pricing, we are not too dependent on global conditions, or what the others are experiencing. That’s the beauty of our business.”
Many of Mayora’s products sold in its home market are currently not exported and the company seeks to ship more brands in the coming years, Afrianto said. The Jakarta-based company wants to position its instant-coffee brand Torabika globally, he said.
“If Japan has its Yamaha and U.S. has its Coca-Cola, Indonesia has no brand in the global market that can represent the country so far. We would like our Torabika to be that brand,” Afrianto said.
Mayora’s revenue may have risen 16 percent to 24.1 trillion rupiah last year and may jump a further 14 percent this year, according to the median estimate in a Bloomberg survey of analysts. The company has yet to announce its 2018 earnings. The company’s shares are little changed in Jakarta this year after more than tripling in the past four years.
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