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| Daesang Corporation CEO Lim Jung-bae speaks during a charity event held in central Seoul in this 2019 file photo. Korea times file |
By Kim Jae-heun
Local food giant Daesang Corporation revealed its aim of making it onto the list of top 10 food firms in Indonesia over the next nine years by achieving annual sales of 1.4 trillion won ($1.26 billion) there.
"We will continue to invest in Indonesia and strengthen our competitiveness globally. We will lead the food materials market in Southeast Asia by exporting products manufactured in Indonesia," Daesang Corporation CEO Lim Jung-bae said.
In 2020, the food firm raked in 369.7 billion won in sales in Indonesia, up 7 percent from the previous year, for an operating profit of 174.9 billion won. Sales in Indonesia account for about 12 percent of the company's overall total.
Daesang first entered Indonesia in 1973 by establishing a foreign branch; and later became the first Korean firm to set up production facilities there.
It entered the bio business in Indonesia, eventually expanding to sell food and starch sugars as well. Its revenue has now surpassed 100 billion won in all sectors it operates in the local market.
In the food sector, Daesang will increase sales by introducing more items through MAMASUKA, the local brand launched by the company in 2010. Its manufacturing plant in Karawang distributes products across the country and food produced there has obtained official halal certification.
Daesang entered the starch sugar business in Indonesia in 2017, with sales recording 44.3 billion won. In the next three years, sales grew explosively to mark 103.7 billion won last year and it became the top producer of both cornstarch and high-fructose products.
The company plans to establish a production line for corn syrup in response to market changes. It will diversify its product portfolio and expand exports while stabilizing its supply chain.
For its bio business, the food firm plans to adopt automation to improve its production capacity. It will make new investments to produce functional amino acids.
Daesang wants to improve its sales base by targeting countries such as Japan and Taiwan that do not use monosodium glutamate (MSG). Daesang currently produce 80,000 tons of MSG in Indonesia.
"There is a limit to how much we can grow in the local market. The population in Korea is sharply decreasing too. It has become imperative, not a choice, to expand overseas and we are also planning to do the same in America, China and Vietnam as well," a Daesang official said.
