Gajah Tunggal Plans 15% Sales Growth in 2008

Indonesia’s Gaja Tunggal Tbk is reported to have plans for increasing its sales by 15 per cent during the course of 2008. This growth will take place on top of sales revenue increases of around 20 per cent during 2006, up from IDR 5.47 trillion (£304 million).

“We are targeting a 15 per cent increase from our sales figure of 2007. Demand from the domestic motorcycle market is firm as well as the foreign market,” said Gajah Tunggal corporate communications manager Marcello Taufik to Reuters. Analysts expect the company to have posted sales of IDR 6.3 trillion (£350.4 million) in 2007 and IDR 7.07 trillion (£393.2 million) this year. Net profit for 2007 is estimated at IDR167.6 billion (£9.3 million), rising to IDR 244.5 billion (£13.6 million) this year.

Taufik added that the company plans to increase its daily production capacity for passenger car tyres from its 2007 level of 30,000 up to 35,000 units, and increase capacity for motorcycle tyres by a third, to 60,000 units a day.