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Charoen welcomes Salim Group into poultry feed business
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Day-old chicks in Charoen Pokphand's containers. While the firm is strong in poultry feed and day-old chicks business, its low penetration in the poultry-based food business opens a door Salim group. (Courtesy of https://cp.co.id/-)
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alim Group’s decision to enter the poultry feed business in Indonesia in a bid to expand has yet to deter publicly listed poultry firm Charoen Pokphand Indonesia -- whom currently holds 34 percent of the market share.
Charoen Indonesia voiced optimism that its parent company, Charoen Pokhand Group will support the company, especially in terms of technology. The Thailand-based conglomerate is currently one of the biggest poultry business players in the world.
"We have not prepared any special strategy to anticipate their entrance into the market. We welcome newcomers in the competition," said Charoen Pokphand Indonesia president Director Tjiu Thomas Effendy on Wednesday.
In December 2015, Salim Group purchased a controlling stake in Malaysia-based poultry firm CAB Cakaran Bhd. The conglomerate, through its shell company Plant Wealth Holdings Ltd, took 11.05 percent of shares in Cakaran.
It plans to form a joint-venture in Indonesia this year. "Our Malaysian partner will do the technology transfer, while Indofood will support the operations," Salim Group Chairman Anthoni Salim told thejakartapost.com recently.
While Charoen is strong in poultry feed and day-old chicks, its poultry-based food business is low. This opens a door for Salim, as the big player in food industry, to enter especially as Salim has 35.8 percent shares in Fast Food Indonesia, the license-holder for the Kentucky Fried Chicken franchise in Indonesia. (ags)
