No 1. Malindo Feedmill
    Category: Best of the Best By : Maryska Mayagita & Ulisari Eslita Read : 5313 Date : Thursday, July 10, 2014 - 06:01:35


    Ahmad Zamroni / Forbes Indonesia

    Feeding Indonesia—this clear-cut expression is the motto of PT Malindo Feedmill, the listed subsidiary of the Malaysian agribusiness company Leong Hup Holdings. Malindo President Director Lau Chia Nguang believes Indonesia is a key market in the region for the company’s future, given its position as the fourth largest country in the world by population.

    Over the past five years, Malindo’s sales grew 18% every year, surpassing the industry average growth of 11% per annum. Last year was a particularly good one for Malindo. The company recorded net sales of Rp 4.2 trillion in 2013, a 25% increase from Rp 3.3 trillion in 2012, coming from stronger sales of poultry feed and day-old chicks (DOC). The stock is up more than 450% since 2010. These are among the reasons that Malindo is the number one company on this year’s Best of the Best list.

    Chia expects Malindo to grow by at least 15% this year. “We are always targeting double-digit growth for our revenues. And we have done that for the past five years. We achieved what we targeted,” says Chia. Malindo operates four lines of business: feedmills, DOC, broilers and food processing. The feedmill division accounted for 71% or Rp 3 trillion of total sales in 2013, making it the biggest revenue contributor to the company, up 28% from the previous year. Currently, the feedmill division has a capacity of 900,000 tonnes per year, from its plants in Cakung, Serang and Gresik. To fuel growth, Malindo plans to spend some Rp 100 billion to raise its four divisions’ production by 13% this year.

    For the breeder division, Malindo’s breeding farms are spread across Java, Kalimantan, Sulawesi and Sumatra with a total production capacity of 3.2 million for parent stock and 200 million for DOC. Breeding farms contributed 18% or Rp 778 billion to company revenue last year. On the other hand, the broiler division only contributed 8% or Rp 323 billion. “The broilers division is not our core. Our business is focusing on feedmill and DOC,” says Lau Joo Hwa, deputy president director of Malindo. 

    The outlook for Malindo is all about expansion, as chicken consumption per capita is rising in the country. In December last year, the company commenced operations of a food-processing factory in Cikarang under its new subsidiary PT Malindo Food Delight. It produces chicken nuggets and sausages under the Sunny Gold and Ciki Wiki brands. For the first year of its operation, the company expects to utilize around 35% of its total 9,000 tonnes production capacity.



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