BISI ups output to rule market

Novia D. Rulistia ,  The Jakarta Post ,  Jakarta   |  Tue, 07/01/2008 10:25 AM  |  Business

PT BISI International, the country's top corn and paddy seeds producer, will increase its corn seed production capacity by up to 30,000 tons this year in a bid to dominate the local market.

"The additional capacity has been divided into two phases, the first phase, which secured a capacity of 10,000 tons of corn seeds, was completed last week, and the second phase, with a capacity of 20,000 tons, will be completed in October," company vice president director Thomas Effendy said after a shareholders meeting Monday.

The company's current corn-seed capacity stands at 40,000 tons, up from last year's 20,000 tons, he said.

The company targets a 70 percent domestic corn-seed market share, or equivalent to more than 70,000 tons produced per year, he said.

The company will also double its paddy-seed production capacity to 20,000 tons by the end of this year.

"The company needs Rp 402 billion to finance the expansion, Rp 100 billion of which will come from internal cash, Rp 250 billion from bank loans and the remaining Rp 52 billion from the proceed of last year's initial public offering (IPO)," Thomas said.

The expansions are expected to double the company's revenue for this year from Rp 890 billion last year, an increase from 573 billion in 2006 mostly on the back of higher corn seed prices, he said.

The company's current price for corn seeds is Rp 31,000 per kilogram, up from the average Rp 28,000 per kg last year.

The price is predicted to reach Rp 36,000 per kilogram within six months, Thomas said.

From January to May, the company sold 13,600 tons of corn seeds.

BISI is a part of agriculture giant Charoen Pokphand Group and is located in Kediri, East Java.

It has two subsidiaries, PT Tanindo Subur Prima, a seeds, fertilizer and pesticide trader, and PT Multi Sarana Indotani, a producer of pesticide.

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