Ekadharma International
    Category: Best of the Best By : Ikaika Ramones Read : 2349 Date : Monday, July 08, 2013 - 01:17:43

    Ahmad Zamroni / Forbes Indonesia

    Ekadharma International is the country’s largest maker of adhesive tapes and film by market share, selling half of all such products in Indonesia. Beginning in 1981, Ekadharma now produces over 300 million square meters of tape through its Malaysian subsidiary Visko Industries and under its three brands: Daimaru, Ekatape and Superfix. All are the same tape underneath but are meant to appeal to different markets, for example, the Daimaru brand sounds like it is from Japan, as many associate Japanese products with quality.

    The current President Director Judi Leonardi and his brother Rudy Kurniawan Leonardi started the company and own about 76% of it, which listed in 1990. The company has a market capitalization of about Rp 280 billion as of mid-June, which gives the brothers Rp 213 billion net worth in shares. In 2012, it reaped Rp 385 billion in sales, up 17% from the previous year. The company even surpassed its projected 2012 income of Rp 31 billion to achieve an actual net income of Rp 36 billion—roughly a 10% profit margin.

    For this year, Judi is targeting sales of Rp 462 billion and a net income of Rp 44 billion. Adhesive tape isn’t on the top of anyone’s trendy business list, but it is a commodity product used by everyone. Thus Ekadharma’s fortunes are a play on the overall economic growth, roughly 6% for the year. As the country grows, demand rises for low-cost, high-quality tapes and packaging film.

    Ekadharma covers most of the spectrum. It sells mostly to the corporate market, both large established companies and the flourishing SME sector as well. The one market where it doesn’t do much business is the final end consumer and households. To that end, and to penetrate the market even further, the company will manufacture rolls with 10 meters of tape rather than the 30 or more meter rolls, which will be targeted at the mass market consumer. Regardless of a client’s size, Judi says the strategy remains the same, providing good service along with a good product to his vendors and customers. For example, for many corporate clients it can produce tape emblazoned with the company’s brand.

    The second component to success in any commodity item is having a wide and efficient distribution network. Ekadharma has addressed this issue by locating warehouses strategically close to clients’ warehouses. With 20 stock points and branches across Indonesia, it lowers transportation costs and delivery delays: combining dependable service and competitive pricing.