JAKARTA (Yosefardi) – feed producer PT Malindo Feedmill Tbk (MAIN) allocates capital expenditure (capex) of Rp500 billion for this year, to fund the establishment of new factory and capacity expansion of the existing plants.
The capex will be funded by proceeds from private placement (Rp336 billion) and bank loan (Rp200-250 billion). Currenlty, MAIN is building 2 feed mills in Makassar and Semarang with each capacity of 360,000 tons per year.
The company targets its sales to grow by 15-20% to Rp4.8 trillion this year, compared to Rp4.1 trillion last year. It booked sales of Rp1 trillion in first quarter of this year.
Malindo admits to have faced the current challenges such as the rupiah depreciation and increasing commodities prices mainly corn and soybean.