***With some 240 million people and a growing per capita annual income soon expected to reach $4,000, Indonesia is ripe for investment, Bulcke said during his visit.
Sweet profits for Nestle in Indonesia driving rapid expansion Posted 6/25/2012 4:00 PM by Emerging Money> from Emerging Money in Investing, International, Stocks 0 comments | Like it Don't like it Last spring, Nestle ( NSRGY , quote ) looked to Indonesia as it strives to expand local market share and its stake in emerging markets. During a visit to Jakarta in March, chief executive Paul Bulcke announced the global Swiss-based foods company would spend $200 million to build another new factory in Karawang, West Java, expected to be completed in 2013. It came in addition to a $100 million investment to upgrade operations at Nestle's East Java factory. With some 240 million people and a growing per capita annual income soon expected to reach $4,000, Indonesia is ripe for investment, Bulcke said during his visit. Over the last couple years, Nestle has invested hundreds of millions of dollars expanding its manufacturing operations in Indonesia. In December 2010, it announced it was spending $100 million on a new factory in Karawang to "meet Indonesian consumers' increasing demand for nutritious, branded products at affordable prices." Then a year ago, Nestle said it would spend another $100 million to further expand its operations at the state-of-the-art factory. These investments were preceded by a $100 million investment in early 2010 to increase milk processing at a factory in Kejayan, East Java. "We are an end-to-end company, because we want to grow in both emerging markets as well as developed markets," Bulcke said to the Jakarta Globe . "You'd better have a portfolio that caters to the whole spectrum of society. As a global company, we want to be part of society and Indonesia is important to us." With that in mind, Nestle has introduced numerous products catering to Indonesians, from 11 cent sachets of its powdered chocolate Milo drinks to the Indonesian-market specific Dancow Nutrigold, a $4.22 per can iron-rich infant milk powder. It was developed in response to 50% of Indonesian children suffering from iron deficiency. "Our products are therefore specifically formulated to fill this deficiency," Arshad Chaudhry, chief executive of Nestle Indonesia said to the Jakarta Globe . "We highlighted these benefits and consumers have responded." The investments have been paying off. Bulcke noted that Indonesian sales have reached $1 billion per year, growing by double digit percentages annually. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc. Read more: http://community.nasdaq.com/News/2012-0 ... z1yriLwwhX [Non-text portions of this message have been removed] ------------------------------------ Post message: [email protected] Subscribe : [email protected] Unsubscribe : [email protected] List owner : [email protected] Homepage : http://proletar.8m.com/Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/proletar/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/proletar/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
