Nestle SA, more food in the world, company will invest 100 million dollars in Indonesia to make products of chocolate scented Milo and Cerelac weaning formula as purchasing power grows in the largest economy of Southeast Asia.
Factory in West Java Enterprise will be ready by the end of 2012 and initially employ approximately 300 people, PT Nestlé Indonesia President Director Arshad Chaudhry said in an interview in Jakarta on 6 December. Nestle buy approximately 10 000 tons of cocoa powder annually farmers to Milo, he said. The Indonesia is the third largest producer worldwide cocoa.
Nestle, who in August raised its forecasts throughout the year as emerging markets demand stimulated first half sales more quickly that estimates analysts, will focus on nutrition and well-being products Chief Financial Officer Jim Singh said. Manufacturer of KitKat and NESCAFÉ is Indonesian households with a monthly income of 800 000 rupiah ($89) and 1.45 million rupiah whose purchasing power is on the rise, said Chaudhry.
These markets are "people who continually seek solutions to provide nutritious foods with limited money that they would have", he said. "Products such as worthy Milo in this well."
Nestle seeks to replicate the success he had with milk formulas as his milk powder ideal, which can be sold in packets for 1,000 rupiah said Chaudhry. Milk powder and such products Dancow, milk brand sterilized and ideal Bear about contribute half of annual sales of the Nestlé Indonesia approximately 1 billion, he said.
Dairy products
After the new plant is operational there are plans to add capabilities between 2013 and 2015 to provide for domestic needs, Chaudhry said at a press conference today.
Nestle the Indonesia investment Kejayan, is the most important is to Java, where he expanded the production of milk with an investment of $ 100 million last year. Factory handles approximately 700 000 litres of milk purchased from 33,000 dairy farms in East Java on a daily basis.
This plant, "one of 10 best plants for Nestlé" by volume, provide some of the milk required to make products of Milo at the new plant, said the Executive.
Nestle has won 10 percent this year so that the Swiss market index has lost 0.6%. However, Vevey, shares the company focused on the trails Switzerland ascension 14 percent by oriented Northfield, Illinois Kraft Foods Inc., his closest rival.
Fox Candy
Nestle Indonesia was founded in 1971 and employs approximately 2,600 people. He has another plant in Lampung province of southern Sumatra, in the production of soluble coffee NESCAFÉ and blends of coffee and buys approximately 10 000 tons of green coffee per year to about 10,000 local coffee producers said. Nestle has a factory in Cikupa, Tangerang, manufacture of confectionery and sweets from Fox.
MILO is a scented chocolate sold in Asia as an energy drink beverage and Indonesia Nestlé sells approximately 15,000 to 20,000 tons of product per year, a company that grows every year, 20 percent Chaudhry said.
"We expect similar growth in the years to come", he said. In addition to the drink, Milo among other products Blazz of Choco, presented this year a snack bar, he said.
Nestle currently ships plants and Malaysia Singapore Indonesia Milo.
Cerelac formula
With the new plant, Nestlé Indonesia will also seek local suppliers for red rice and its formula of Cerelac mung beans, said Chaudhry. Mung beans are an important source of vegetable protein for developing countries.
Among other products the Switzerland Nestlé contributing to annual sales of 1 billion dollars in Indonesia Nestea sale for 500 rupiah packets each, said Chaudhry, who worked in Pakistan, and China, to the Indonesia in September 2009.
"When you have limited money, you are very interested in spending money wisely, because getting sick is not an option", he said. "When you get sick, he should spend more money." To avoid this, it y much interest for the purchase of products that show good quality and good nutrition. »
To contact the reporter on this story: Claire Leow Singapore cleow@bloomberg.net; Eko Listiyorini elistiyorini@bloomberg.net.
To contact the responsible editor of the story: Frank Longid flongid@bloomberg.net
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