global chaser-semen indonesia
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Semen Indonesia Globalization Strategy Through Inorganic
Growth
Indonesia Brand Forum (IBF) 2013
Jakarta Convention CenterMay 2013
SEMEN INDONESIAINDONESIA CEMENT MARKET
564
Bag80%
• Housing• Cement-based Industry
• Ready Mix• Fabricator• Projects
Bulk20%
Retail (residential) sector is the largest cement consumer in Indonesia
Key drivers for domestic cement demand:• National Economic Growth• Favorable Interest Rate
Environment• Infrastructure Expansion• Per-capita Consumption
Increase from Current Low Level
Indonesia Cement Consumption HistoryMT
*Line shows market growth in percent
SEMEN INDONESIACAPACITY MAP
SMGR
22
11
33
4455
1
1
6677
THE PLAYERS and CAPACITY (2013)
SEMEN INDONESIAMARKET GROWTH
This forecast implies an Semen Indonesia capacity requirement of 70 MT by 2030 (with 90% capacity utilization)
Pesimist5.7%
Moderate6.5%
Optimist7.1%
Annual Growth Rates
Indonesia Cement Market Growth 2010 - 2030MT
Sales SI(44,0% Market Share)
Pesimist
Moderate
Optimist161
144
124
63
SEMEN INDONESIAMARKET CHALLENGE
MT
29,5
70,0
Build 1 New Plant Every Year
Semen Indonesia Capacity Requirement
CHALLENGES: Limited natural resources Land clearance issue Long construction time (± 3
years)
Challenges of Acquiring Foreign Company
1. Different nature of business, company culture, & government regulation
2. Aligning business & reporting system (e.g. ERP system)
ACQUISITION
Maintain 44% market share in
Indonesia
Inorganic Growth
Increased number of customer & sales revenue
SEMEN INDONESIAMARKETING STRATEGY
BRAND ACQUISITION
Market Entry Strategy
Using local existing brands, which have strong value in their
respective market
LOCAL BRAND
Domestic Branding Strategy
Entering Vietnam market through local existing brand (Thang Long)
ALTERNATIVE BRAND
Regional Market Entry Strategy (S.E. Asia)
New brand will be used to enter regional market outside Vietnam
& Indonesia
Acquisition of foreign company
Quick source of supply to fulfill 44% Indonesia market
share
Foundation for global market expansion
SEMEN INDONESIASEMEN INDONESIA SUPPLY MAP
THANK YOU
Main Office:Main Building of Semen Gresik
Jln. VeteranGresik 61122 – Indonesia
Phone: (62-31) 3981731-2, 3981745Fax: (62-31) 3983209, 3972264
Representative Office:
The East Building, 18th Floor,Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,
Jakarta 12950 – IndonesiaPhone : (62-21) 5261174 – 5
Fax : (62-21) 5261176
www.semengresik.com
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