PENANG-BASED Unimech Group Bhd (7091) is targeting to double the revenue of its Indonesian operations in three years.
The manufacturer of industrial valves, fittings and instrument gauges has earmarked RM5 million capital expenditure for the group this year and may plough about half of that into its Indonesian business.
"In expanding our sales and marketing network in Indonesia where we currently have 14 offices, we are looking at increasing this figure to 20 offices this year," Unimech executive director and group general manager Sim Yee Fuan told reporters after its annual shareholder meeting in Penang yesterday.
Also present was Unimech executive chairman and managing director Datuk Lim Cheah Chooi.
Unimech, through 85 per cent-owned PT Arita Prima Indonesia, has a presence in north and central Jakarta, Surabaya, Pekanbaru, Pontianak, Batam, Semarang, Solo, Sampit, Jambi, Medan, Palembang, Glodok and Padang.
In the fiscal year ended December 31 2009, Indonesia accounted for 43 per cent of the group's overseas revenue of RM33.6 million, which is about 28 per cent of the group's revenue of RM120.1 million.
Sim said the new offices will be set up in cities like East Kalimantan, Padang, Bandung and Lampung.
"Indonesia has become our largest and fastest-growing foreign market since our 2009 fiscal year, with a 10 per cent year-on-year increase even during the challenging economic climate in the region," said Lim.
"While Indonesia is not a new market to the group, we believe that there is much potential for us to tap given that the country is entering a phase of rapid development and industrialisation," he added.
Unimech is a one-stop provider of heat-generation equipment and heat, ventilation and air-conditioning systems along with related piping sytems comprising industrial valves, fittings and instrument gauges.
Its manufacturing facilities in Seberang Prai on mainland Penang and in China produce items under its six brand names of Arita, Unijin, Q-Flex, SVR, Iconic and Sanitario.
Lim said that while Indonesia will remain its immediate focus, Unimech plans to expand its business to Thailand, Vietnam and the Middle East over the next five years.
-- by Business Times
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