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ood manufacturer PT Tiga Pilar Sejahtera Food (AISA) would be allocating Rp 808.9 billion (US$84.2 million) in capital expenditure to achieve 85 percent growth in sales this year, the company said recently.

AISA spokeswoman Yulianni Liyuwardi said in Jakarta on Tuesday that 45.6 percent of the capital, or Rp 369.6 billion, would go toward their rice processing and distribution business.

'The funds will go into the construction of our two rice mills,' she said.

AISA runs its rice processing and distribution business through its subsidiary, PT Dunia Pangan. In November last year, the company acquired PT Sukses Abadi Karya Inti in a deal worth Rp 22.5 billion.

AISA, via the acquired company, is currently constructing two rice mills in Central Java. Once completed in the third quarter, the mills will double AISA's production capacity to 480,000 tons per year.

Yulianni added that AISA would allot another 37.4 percent, or Rp 303 billion, of the overall capital expenditure to their palm oil business.

'We would like to expand our planted land area by 7,700 hectares this year,' she said.

The company operates its oil palm plantations through its subsidiary, PT Bumiraya Investindo. AISA expanded its palm oil business by acquiring PT Tandan Abadi Mandiri, which has a 14,000 hectare concession, in October last year.

At the end of 2012, AISA operated more than seven oil palm plantations with a concession area of 93,000 hectares, 19 percent of which has been planted.

Yulianni added that the company would allocate the remaining Rp 136.4 billion in their basic and consumer food business, which manufactures dried noodles, vermicelli, snacks and candy.

The food brands that AISA manufactures comprise Taro snacks, Ayam 2 Telor dried noodles and Gulas candy.

'We plan to expand our production line with funds allocated to our food business,' she pointed out.

Besides expanding their business through capital expenditure, the company would also focus on improving their distribution points and brand management, she added.

Joko Mogoginta, AISA's president director, said the various expansions this year would help raise sales to slightly above Rp 5 trillion, 85 percent higher than sales throughout 2012.

'Our rice business will contribute Rp 2.8 trillion, while food will put in another Rp 2 trillion. Palm oil will contribute roughly Rp 200 billion,' he added. 'We also aim to make Rp 300 billion in profits,' he said.

The company booked Rp 2.7 trillion in net sales in 2012, marking a 56.8 percent annual increase compared to the previous year.

Of this net sales figure, 59.3 percent or Rp 1.6 trillion came from rice mills, while another 40.7 percent, or Rp 1.1 trillion, came from food manufacturing. The company also earned Rp 605.2 billion in annual gross profits and Rp 253.6 billion in income for the year.