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T Pan Brothers, one of Indonesia’s major garment manufacturers, is targeting a 30 percent increase in sales to Rp 2.82 trillion (US$303.5 million) this year, taking advantage of the burgeoning Asian market to offset the weakening of its main markets in Europe and the United States.

The company also announced its plan to launch its own brand and enter into garment retail in 2013.

“Europe is definitely weakening while Asia is getting stronger,” Pan Brothers’ vice chief executive officer, Anne Patricia Sutanto, told reporters after the company’s shareholders’ meeting Tuesday.

The publicly listed company produced almost entirely for European brand clients, but some of its products could now be shipped to Asian markets, she said.

The gradual shift toward Asia follows last year’s trend. The Asian market surged to 17 percent of Pan Brothers’ 2011 exports from 9 percent in 2010. Exports to the US dipped to 33 percent from 40 percent, and those to Europe declined to 49 percent from 51 percent.

In anticipation of the sales growth, Pan Brothers have built two new factories with 25 assembly lines and 1,500 machines in Boyolali, Central Java. The first will begin production in June while the other will start in August.

The factories are two of four garment factories built by the company in Boyolali with a total investment of Rp 300 billion ($33 million). The other two have begun operating but, so far, at only at 40 percent capacity.

Expected to create 2,500 jobs, the new factories will produce garments for global brands, such as Nike, Adidas and The North Face.

With its additional garment production facilities, the company expects to increase its total sales by 40 percent, which are targeted to reach $325 million next year from $250 million this year, the company announced.

As well as producing clothing items, such as polo shirts, for global brands, beginning next year Pan Brothers plans to launch its own brand as part of its plan to enter the retail business.

“The ultimate goal for any garment manufacturer is to have its own brand,” Anne said, adding that Pan Brothers was considering all options, including forming a joint venture with other global brands and taking over existing brands.

Asked if the company had already decided on the name of its brand, she said: “I can’t disclose that yet.”

The company will invest Rp 35 billion to launch its retail business, with funding coming from the Rp 419 billion it reaped from its rights issue last year.

The retail division was expected to contribute up to 10 percent of revenue after five years, Anne said.

Pan Brothers booked Rp 2.17 trillion in revenue last year, 52 percent higher than in 2010, and a net profit of Rp 72.1 billion in 2011, double that of a year earlier.

The shareholders’ meeting decided to pay Rp 3.06 billion in dividends, or 4 percent of last year’s net profit. (han)