CP Indonesia unfazed by new entrant Salim Group
JAKARTA - Salim Group's decision to enter the poultry feed business in Indonesia in a bid to expand has yet to deter publicly listed poultry firm Charoen Pokphand Indonesia, which holds a 34-per-cent market share.
CP Indonesia voiced optimism that its parent company, Charoen Pokphand Group, will support the company, especially in terms of technology.
The Thailand-based conglomerate is one of the biggest poultry players in the world.
“We have not prepared any special strategy to anticipate their entrance into the market.
“We welcome newcomers in the competition,” Charoen Pokphand Indonesia president director Tjiu Thomas Effendy said on Wednesday.
In December, Salim Group purchased a controlling stake in Malaysia-based poultry firm CAB Cakaran.
The conglomerate, through its shell company Plant Wealth Holdings, took a 11.05 per cent stake in Cakaran. It plans to form a joint venture in Indonesia this year. “Our Malaysian partner will do the technology transfer, while Indofood will support the operations,” Salim Group chairman Anthoni Salim said recently.
While CP is strong in poultry feed and day-old chicks, its poultry-based food business is low.
This opens the door for Salim, as the big player in the food industry, to enter, especially as Salim owns 35.8 per cent of Fast Food Indonesia, the licensee for KFC in Indonesia.
