Kalbe external communications manager Hari Nugroho said after a shareholders meeting on Wednesday that the company would spend between Rp 1 trillion and 1.2 trillion on capital expenditure to boost its production capacity and expand distribution channels.

'€œWe will use 40 percent of the allocated budget for the development of our prescription drug business, 25 percent for nutritional products, 20 percent for health products and the remaining 15 percent to add a number of sub-distributors,'€ he told The Jakarta Post.

Among the expansion plans, Hari said, the company would build new factories for nutritional products later in the second quarter in Cikampek and Sukabumi, both in West Java.

'€œWe will also strengthen our distribution channels,'€ he said, adding Kalbe currently had 64 sub-distributors nationwide.

Meanwhile, Kalbe corporate secretary Vidjongtius said previously that his company would also spend Rp 500 billion on the acquisition of a health-food producer this year.

He said that the funds for the acquisition also would come from Kalbe'€™s internal cash.

Kalbe recorded Rp 11.62 trillion in total assets at the end of March, according to its financial report. The company'€™s liabilities stood at Rp 2.63 trillion and its equities reached Rp 8.89 trillion.

The firm'€™s bottom line jumped by 11.3 percent to Rp 505.9 billion in the first quarter this year from Rp 454.4 billion in the same period last year. Its revenue rose to Rp 4.07 trillion during the period from Rp 3.5 trillion in the same period last year.

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