JAKARTA - PT Nippon Indosari Corpindo Tbk (ROTI) is slowly getting out of its comfort zone in the bakery business. This time, the producers of Sari Roti and Sari Kue have entered the Chocolate Spread and Chocolate Milk business.
Director of Nippon Indosari Ida Apulia said that this step was part of the company's commitment to achieve sustainable growth.
"The Chocolate Spread and Chocolate Milk business started from the observation of Sari Roti's superior products, especially the chocolate flavor variant, which has been in the hearts of consumers for a long time and the demand continues to increase. Then the Management took the initiative to develop several complementary products supported by a comprehensive business analysis. until finally appointing the Office of Public Appraisal Services to complete the Feasibility Study Report," said Ida in her statement, Thursday, May 19.
It can be said that for more than 27 years, the Company has continued to grow and maintain its position as the largest bread producer in Indonesia, by operating 14 strategically located factories supported by distribution through modern and traditional channels covering 34 provinces.
Management has also completed a financial review to ensure efficient use of capital for these two businesses. The Chocolate Spread Business will share with the chocolate filling production facility which will also be used to meet internal needs.
Meanwhile, the production of Chocolate Milk will be entirely carried out by a third party, so it does not require large capital expenditures.
"To run the Chocolate Spread and Chocolate Milk business for the next three years it takes around 1% of the Company's Equity as of December 31, 2021," said Ida.
However, the positive impact of the Chocolate Spread and Chocolate Milk business on the company's performance will be greater. "Our internal projections show that in 2024, the contribution of the Chocolate Cream and Milk Chocolate business can reach around 6 percent of sales in 2021 and around 3 percent of gross profit in 2021," Ida added.
The next step, the Management will seek approval from the Shareholders through the Extraordinary General Meeting of Shareholders which is planned to be held on 27 June. "We have complied with the regulations related to the implementation of the Meeting, including the Disclosure of Information and the Feasibility Study Summary Report by KJPP," concluded Ida.
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