Mandom Indonesia to boost production capacity by 50%

30-May-2014

Subsidiary of Japanese cosmetics maker plans to expand production capacity by 50% in 2015

Mandom Indonesia, a subsidiary of Japanese cosmetics maker Mandom, plans to expand its production capacity by 50% in 2015 as it anticipates greater demand from the rising Indonesian middle class.

The company will move its main factory in central Jakarta to a new location on the outskirts of Jakarta with the shift in production completed by January 2015. The new factory will boost the company’s annual production capacity to around 1.35 billion units from the current 900 million. According to the firm, sales of its three main product categories – hair care, skin care and perfume – all grew by 30%-40% in 2013. The company mainly targets middle class men and women with products priced at Indonesian rupiah IDR10,000 to 50,000.

To expand sales in rural areas, Mandom said it will add about 30 new distribution centres this year in the eastern part of Indonesia. It currently has 113 distribution centres, 70% of which are located outside the main island of Java. The company is targeting consolidated revenue of IDR3 trillion for 2016 – 48% higher than in 2013.

David Kilburn, Tokyo

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