Kino Incorporated Joint Venture Companies with Malee
JAKARTA, 31st October 2017 – PT. Kino Indonesia Tbk. (“Kino”) had signed the joint venture agreement with Malee Capital Company Limited (“Malee”) – a group of Malee Group Public Company Limited, where both Kino and Malee will establish 2 (two) joint venture companies which are (i) PT Kino Malee Indonesia engaged in Indonesia and (ii) Malee Kino (Thailand) Company Limited engaged in Thailand. Kino will become a majority shareholder of 51% share ownership in PT Kino Malee Indonesia and a minority shareholder of 49% share ownership in Malee Kino (Thailand) Company Limited.
Through the joint venture companies, Kino together with Malee will create a synergy, where Kino will export its personal care dan pharma products to Thailand to be marketed and sold by Malee Kino (Thailand) Company Limited, and PT Kino Malee Indonesia will import, market, sell and distribute beverage products of Malee in Indonesia. As such, the presence of Kino’s personal care and pharma products in international market will eventually increase, whereas the beverage products of PT Kino Malee Indonesia will complete Kino’s existing beverage products portfolio.
The opportunity in Indonesia beverage market is very huge and widely opened. In 2016, beverage industry market value grew by 8.46%, as compared to year 2015 by 7.54% (Source: Ministry of Industry Republic of Indonesia, 2016). The growth of beverage products sales volume is supported by increase in demand, especially from middle class consumers, and also encouraged by more foreign companies entering Indonesian beverage market by establishing joint venture companies with local companies as well as the foreign companies that increase its investment on existing production facilities in Indonesia.
Beverage industry in general tends to be competitive yet very promising especially in Indonesia, and Malee is the one of the largest beverage player in Thailand with remarkable experience in beverage field, i.e. fruit juice and coconut water categories. In Indonesia, fruit juice and coconut water categories in beverage segment is a distinctive business segment that is very tight in competition yet attractive to be entered. This segment offers a large room of business prospect growth in line with the increasing number of middle-income earners in Indonesia in tandem with purchasing power that will be improved in the following years. The formation of the joint venture companies will be the strategic action of Kino in developing beverage segment portfolio. Apart from that, distribution and marketing support from Malee through Thailand joint venture company will also expand the distribution network of personal care products in international market and simultaneously increase the export sales portion of Kino.
Products from Malee are potentially have strong and unique selling point, and the possibility to grow significantly in dynamic category with a well support from Kino. Kino is a FMCG company that is being valued as a perfect partner for Malee. The strengths of Kino in distribution, product innovation, and financial position will complement the strengths of Malee.. A good cooperation will bring satisfying results for both parties.
The establishment of joint venture companies is a part of strategic plan done by Kino after the brand acquisition of Dua Putri Dewi traditional herbal medicine (or called as “jamu” in Indonesian language) and business acquisition of Ristra Group that Kino had done in 2016. Upon the establishment of these joint venture companies, financial statement of PT Kino Malee Indonesia will be consolidated at parent company level, hence Kino will enhance its beverage segment. This project is one of efforts exercised by Kino in adding value to consumers for innovative beverage products.
The establishment of the joint venture companies will be funded from the proceeds of initial public offering (IPO) that had been allocated as capital injection for companies in related industry to support the inorganic growth of Kino, as being stated on the prospectus.
About PT Kino Indonesia Tbk.
PT Kino Indonesia Tbk. is a locally well-known company in Indonesia which produces consumer goods (Fast Moving Consumer Goods – FMCG). Kino Group had been established since 1991.
Kino manufactures consumer goods that consists of 4 main business segments including personal care, beverage, foods, and pharmaceutical with several reputable and market leader brands, for instance Ellips, Ovale, Larutan Cap Kaki Tiga, Resik-V, Sleek, and other brands under Kino Group. In accordance with the motto of “Innovate Today”, Kino will keep on innovating its products.
As a part of Kino Group, PT Dutalestari Sentratama that engages in distribution field has been developed significantly in distributing products to the entire Indonesia region. Moreover, Kino Group also consists of PT Morinaga Kino Indonesia (a joint venture company with Morinaga & Co. Ltd. (Japan)) that manufactures foods and confectionery products, PT Ristra Laboratoris Indonesia that manufactures cosmeceutical products under the brand of “Ristra” and PT Ristra Klinik Indonesia that offers beauty care service (both are the joint venture companies with Ristra Group), and PT Kino Ecomm Solusindo that markets several personal care products through digital platform as a step in capturing the potential rapid growth of e-commerce field.
Furthermore, Kino also reaches other countries outside Indonesia region through share ownership, either directly or indirectly, on companies namely Kino Care (M) Sdn. Bhd. in Malaysia, Kino Consumer Philippines Inc. in Philippines, Kino International Pte. Ltd. in Singapore, and Kino Vietnam Company Ltd. in Vietnam. Kino Group also engage in distribution cooperation with several distributor networks in Asia region.
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