Daesang presented a blueprint for each sector on Feb. 17 that it will leap into "Indonesia’s top 10 comprehensive food company" and "leading company based in Southeast Asia" by achieving 1.4 trillion won ($1.3 billion) in sales in 2030.
Daesang’s sales in Indonesia recorded 369.7 billion won in 2020, up 7 percent from 346.4 billion won a year earlier.
Daesang established PT. MIWON INDONESIA in Indonesia in 1973 and entered the bio business by exporting plants overseas for the first time in Korea, and has since expanded its business to food and starch sugar to target the Indonesian market.
In order to achieve performance of its business in Indonesia, Daesang is planning to materialize and actively pursue business plans for each sector. First of all, for the food business, it plans to diversify its business by developing new growth engines, upgrade food sales by sales channels, and expand logistics main centers in Indonesia.
In order to expand sales of high fructose and low fructose markets, and expand production lines of starch to respond quickly to market changes, it plans to diversify product portfolio, stabilize supply chain, and diversify export areas.
It is also pushing for the bio business to expand its production capacity through process automation and diversify its product portfolio by making new investments to produce functional amino acids.
The company is also planning to expand its sales base by actively targeting Chinese MSG non-preferred countries such as Japan and Taiwan.
Daesang's Indonesian food business recorded 132.6 billion won in 2020, up 12 percent from 118.4 billion won a year earlier. Daesang is actively targeting the Indonesian market with its image of local-friendly company and halal foods produced by local factories, which have been built through its long-standing Indonesian business.
Daesang is introducing various products through Mamasuka, an Indonesian comprehensive food brand launched in 2010. Its products such as laver and bread crumbs have the largest market share in the local market.
In particular, Daesang’s laver remains the unrivaled No. 1 with a whopping 63% market share, beating Thailand's Taokaenoi, which has been conducting a large-scale seaweed business in Southeast Asia.
Recently, it has successfully settled down in the market by releasing laver sprinkled with flavors that go well with local food.
Factory localization is a great competitive edge in the Indonesian food business. Daesang is producing 20,000 tons of food annually at its food production factory PT. Aneka Boga Nusantara located in Karawang, Indonesia.
In addition, as Indonesia is a representative halal food market, it produces and sells all items with halal products that have obtained Indonesian MUI halal certification.
Daesang's Indonesian starch sugar business recorded 44.3 billion won in sales in the first year of completion of its plant in March 2017, and its sales grew 19 percent from 87.5 billion won in 2019 to 103.7 billion won in 2020.
The bio business, which Daesang first started in 1973 when it entered Indonesia, is also growing steadily. Sales of the bio business, which recorded 115.4 billion won in 2017, recorded 133.4 billion won in 2020, down 5% from 140.5 billion won a year earlier, but it has maintained a steady growth rate of 16% compared to 2017.
"We will strengthen the global competitiveness through continuous investment and aggressive growth in the Indonesian business, and further expand exports of our Indonesian products throughout Southeast Asia to lead the Southeast Asian food and materials business," said Daesang CEO Lim Jung-bae.
