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Jakarta Post

After Saudi Arabia, Kimia Farma eyes expansion to Vietnam

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, May 9, 2019   /   09:08 am
After Saudi Arabia, Kimia Farma eyes expansion to Vietnam A man purchases products at a Kimia Farma pharmacy. (Tribunnews/Tribunnews)

After acquiring shares in a Saudi Arabian company, state-owned pharmaceutical company PT Kimia Farma has expressed its intention to expand its business to Vietnam by acquiring a local company.

Kimia Farma finance director I.G.N Suharta Wijaya said the company was studying the regulations in the country to find out if a foreign company was allowed to control the majority of shares in a local company.

“So, it depends on the regulation in the country. It the regulation is okay, we will enter the country this year,” Suharta said in Jakarta on Tuesday as quoted by tempo.co.

He stressed that to enter the country, Kimia Farma had to hold majority shares of a local company as otherwise, the investment was not secured.

Suharta said Kimia Farma was interested in acquiring a Vietnamese company that had 400 outlets in the country, fewer than the outlets owned by Kimia Farma.

“If the sales of each Kimia Farma outlet in the country is Rp 1.5 billion [US$104,877] per month, [the sales of an outlet of the Vietnamese company] could be Rp 4 billion per month,” he added.

If the plan works, it will be the second overseas expansion by Kimia Farma. Previously, the company invested Rp 130 billion to acquire Dawaa Medical Limited Company, a company in Saudia Arabia. Dawaa is a subsidiary of Marei Bin Mahfouz Group, which also runs a healthcare business.

Kimia Farma president director Honesti Basyir said the company invested Rp 148.2 billion in Saudi Arabia. With the move, Kimia Farma controls 60 percent of the shares and changed the name of the company to Kimia Farma Dawaa. (bbn)