Mitsubishi Corporation

Press Room

August 27, 2014

Mitsubishi Corporation Enters Beverage Market in Indonesia
Establishes Drink-Making Joint Venture in Indonesia with Ichitan Group Public Company Limited

Mitsubishi Corporation (MC) is pleased to announce that PT. Atri Pasifik, its joint venture with PT. Sigmantara Alfindo (Alfa Group), has reached an agreement to establish a fifty-fifty joint venture with Thailand’s Ichitan Group Public Company Limited (Ichitan) in Indonesia. The new company will manufacture beverages for supply to the Indonesian market.
 
The new company is aiming to develop, manufacture and market the Ichitan brand of tea and other beverages loved by Indonesian consumers by combining the knowledge and strengths of both companies. Ichitan will provide unique marketing strategies and a high level of product development while Atri Pasifik will provide knowledge and experience in food manufacturing and a strong distribution network, especially its robust network comprising both modern and traditional trade channels throughout Indonesia. Total authorized and paid-up capital to be invested in the new company is IDR 400 billion. The new company plans to launch new products under the Ichitan brand name in 2015 and start manufacturing from 2016.
 
Ichitan
Ichitan is the largest maker of tea-based drinks in Thailand, becoming the number one brand by market share only a year and a half after entering the local tea market. In addition to its high level of product development, Ichitan was able to achieve this by employing unique marketing strategies that effectively combine the use of traditional audiovisual and print media with the use of social networking services, or SNS.
 
Indonesian Beverage Market
At an estimated growth rate of 13 percent per annum, the value of the Indonesian beverage market is expected to increase from JPY 400 million in 2013 to JPY 1 billion by 2020 due to rising incomes among the middle class. Tea occupies the second largest category in the Indonesian beverage market, following mineral water, and demand is expected to expand further owing to growing health consciousness among consumers.
 
MC’s Initiatives in Emerging markets
Emerging markets are seeing increased demand for daily living essentials such as food products due to burgeoning middle classes. MC has been working to strengthen supply-chains for its living essentials businesses in an effort to meet that demand and has been in partnership with Alfa Group in Indonesia since 2011, developing food manufacturing businesses for products such as bread and biscuits, through Atri Pasifik. MC’s business partnerships in the sector do not only focus on the supply of raw materials, but MC increasingly works with Japanese and global enterprises to develop businesses in the food manufacturing sector as well. These initiatives also contribute to securing a stable supply of locally manufactured food products with a view to adequately meeting the needs of consumers in rapidly growing markets.
Reference Information
 
The New Company
 
Name
PT. Ichitan Indonesia (tentative)
Headquarters
Jakarta, Indonesia (to be finalized)
Capital
IDR 400 billion (approx. JPY 3.5 billion)
Investment Ratio
PT. Atri Pasifik, 50%; Ichitan, 50%
Business Activities
Manufacture and sale of non-alcoholic beverages
 
 
Information about Partner Companies
 
Ichitan Group Public Company Limited
Headquarters:               Bangkok, Thailand
Year Established:         2010
Capital:                         THB 1 billion (Approx. JPY 3 billion)
Business Activities:       Manufacture and sale of non-alcoholic beverages
Revenue:                      THB 6.5 billion (Approx. JPY 20 billion) (as of December 2013)
No. of Employees:        250
Representative:            Tan Passakornatee, Chairman and CEO
 
PT. Atri Pasifik
Headquarters:              Tangerang, Banten, Indonesia 
Year Established:         2011 
Capital:                         IDR 613 billion
Business Activities:    
Business consultancy, Management services, Warehousing services; also has holdings in food and other daily essentials and distribution businesses Shareholder Composition: PT. Sigmantara Alfindo 60%; Mitsubishi Corporation 40%
No. of Employees:        412
Representative:           Doddy Surja Bajudji
 
Mitsubishi Corporation
Headquarters:              2-3-1 Marunouchi, Tokyo, Japan
Year Established:         1950
Capital:                         JPY 204 billion
Business Activities:           
A global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, food, and environmental business Operating Transactions: JPY 21.95 trillion (consolidated, as of March 2014)
No. of Employees:        68,383 (consolidated, as of March 31, 2014)
Representative:            Ken Kobayashi, President and CEO
 

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