CPRO, A Company Owned By Conglomerate Benjamin Jiavaranon, Boosts Dog And Cat Food Business, Budgets IDR 320 Billion For Capital Expenditure In 2022

The Board of Directors and Commissioners of PT Central Proteina Prima Tbk. (Didi Kurniawan/VOI)

JAKARTA - PT Central Proteina Prima Tbk (CPRO) is optimistic that it will be able to boost its business in 2022, after the debt restructuring has been successfully completed. President Director of CP Prima, Hendri Laiman said, the company budgeted capital expenditure or capital expenditure (capex) of Rp320 billion in 2022. This value is greater than capital expenditure in 2021 which only amounted to Rp140 billion.

"Next year's capex funding source will come from a combination of internal cash and bank loans," he said at a public expose in Jakarta, Friday, November 19.

Hendri detailed that the largest allocation of capital expenditure funds was for the construction of a new factory to produce pet food and processed food located in Central Java. In addition, the funds will also be used for the maintenance of assets or machines.

"We have purchased the land and the machine using capex this year, and next year we will continue the construction of a new factory which we are targeting to be completed and producing in the fourth quarter of next year," he said.

Hendri further said that the company will encourage the growth of the pet food business as an effort to maintain stable business growth, which for the last five years has consistently shown sales growth of more than 50 percent per year. The company hopes that in 2021, it still has the potential to grow more than 35 percent.

"The market and potential for this (pet food) business is enormous, both domestically and abroad. In 2021, we have started to enter the international market by first exporting to Brunei Darussalam. Apart from domestic, the company plans for the future. will try to export to several other countries such as Malaysia, Thailand and several ASEAN countries," he said.

Hendri admitted that the contribution of pet food to CPRO's total revenue currently reaches around 14-15 percent. In the future, the company hopes that it will be even bigger in line with the increase in capacity after the new factory is completed.

"Actually, we have been in this business since 2017, namely the supply of ornamental fish and bird food. Now, we are adding a new variant, namely food for dogs and cats, because the demand is very large," he said.

Benjamin Jiavaranon becomes CPRO controller

For information, the conglomerate from Thailand, the Jiaravanon family has officially become the new controller of aquaculture feed and processed food company, PT Central Proteina Prima Tbk (CPRO). They took over 45.27 percent of the total shares of the company.

Prior to this transaction, CPRO's shares were controlled by the Jiaravanon family with only 6.18 percent ownership through Benjamin Jiaravanon. Benjamin has also served as Executive Director at CP Pokphand Co Ltd and President-Strategic Planning Group at CPIN.

The other controlling shareholders are PT Surya Hidup Satwa 6.48 percent, and Snow Lion Investment Limited with 9.06 percent ownership, and Leedon Capital Limited 18.10 percent. Furthermore, UOB Kay Hian Hong Kong with 22.71 percent ownership, UOB Kay Hian Pte Ltd 13.02 percent and public shareholders 24.54 percent.

The Jiaravanon family are owners of animal feed and shrimp companies PT Charoen Phokpand Tbk (CPIN) and PT BISI International Tbk (BISI). This change in control is a consolidation of the share ownership of the Jiaravanon family in CPRO through PT Central Pangan Prima.