13 July 2018

INDOPOS.CO.ID - The management of PT Mahkota Group (MGRO) has prepared a number of expansions. Building a refinery plant (food oil maker), kernel crushing, strengthening raw materials, and stocking crude pail oil (CPO). Investment funds for a number of these actions come from the proceeds of the initial public offering (IPO), internal funds, and bank loans.

The company successfully raised IDR 158.32 billion in IPO funds. Based on the scenario, 60 percent of the funds will be used for the construction of refineries and kernel crushing plants. Then 40 percent for working capital. “Yes, such as purchasing raw materials and stocking CPO,” said MGRO President Director Usli Sarsi in Jakarta, Thursday (12/7).

With this expansion, the company does not need to sell immediately when prices are not good, especially during the peak of CPO production. To realize this dream, the company needs at least IDR 330 billion in fresh funds for the construction of a refinery or edible oil maker. “The source of funds is a combination of bank loans, internal cash, and IPO proceeds,” added Usli.

Mahkota Group is targeting this factory to operate next year. The factory is located in Bathin Sobanga Village, Bengkalis Regency, Riau Province. Currently, Mahkota has six factories, and one stockpile located in North Sumatra (Sumut) and Riau. One factory can produce up to 1,500 tons per day.

“We hope that production will continue to increase so that we can meet market demand,” Usli said.

In addition to focusing on the development of downstream industries, in the near future Mahkota is also preparing export plans abroad. So far, sales are still in the domestic market. And, this year, the company set a revenue of IDR 2 trillion and a net profit of IDR 50 billion. (far)

Source : https://indopos.co.id/read/2018/07/12/144016/mahkota-siapkan-sejumlah-ekspansi