INDONESIA Daesang to pump more investments in Indonesia as it targets for top 10 ranking March 2021
South Korea’s Daesang Corporation will continue to invest heavily in Indonesia as it aims to become the top 10 food firms in Indonesia within the next 9 years, and achieve an annual domestic turnover of Won 1.4 trillion (US$1.26 billion).
Daesang Corporation CEO Lim Jung-bae said, “We will continue to invest in Indonesia and strengthen our competitiveness globally. We will lead the food materials market in Southeast Asia by exporting products manufactured in Indonesia.”
In 2020, Daesang recorded 7% growth in sales turnover to Won 369.7 billion (US$330 million) in Indonesia. The country now contributed up to 12% of its overall sales. Daesang first started its operation in 1973 in Indonesia with bio (ingredients) business and eventually expanded to sell food and starch sugars as well. Currently, it has several production facilities here.
In the food division, Daesang will increase sales by introducing more items through its local brand, Mamasuka launched in 2010. Its manufacturing plant in Karawang distributes Halal certified products across the country. In 2017, Daesang entered the starch sugar business in Indonesia with sales growing rapidly to reach Won 103.7 billion (US$91.5 million) in 2020, making it the top producer for both cornstarch and high-fructose products.
The company is planning to establish a production line for corn syrup, while it will diversify its product portfolio, stabilise its supply chain and expand exports. For its bio business, the food firm plans to adopt automation to improve its production capacity. It will make new investments to produce functional amino acids. Daesang wants to improve its sales base by targeting countries such as Japan and Taiwan that do not use monosodium glutamate (MSG). Daesang currently produce 80,000 tonnes of MSG in Indonesia.
An unidentified Daesang spokesperson said, “It has become imperative, not a choice, to expand overseas and we are also planning to do the same in America, China and Vietnam as well.”
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