Global Chaser - Semen Indonesia

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  • 1. Semen Indonesia GlobalizationStrategy Through InorganicGrowthIndonesia Brand Forum (IBF) 2013Jakarta Convention CenterMay 2013
  • 2. SEMEN INDONESIAINDONESIA CEMENT MARKET564Bag80%• Housing• Cement-based Industry• Ready Mix• Fabricator• ProjectsBulk20%Retail (residential) sector is the largestcement consumer in IndonesiaKey drivers for domestic cementdemand:• National Economic Growth• Favorable Interest RateEnvironment• Infrastructure Expansion• Per-capita ConsumptionIncrease from Current Low LevelIndonesia Cement Consumption HistoryMT*Line shows market growth in percent
  • 3. SEMEN INDONESIACAPACITY MAPSMGR213451167THE PLAYERS and CAPACITY (2013)
  • 4. SEMEN INDONESIAMARKET GROWTHThis forecast implies an Semen Indonesia capacity requirement of 70 MT by2030 (with 90% capacity utilization) Pesimist 5.7% Moderate 6.5% Optimist 7.1%Annual Growth RatesIndonesia Cement Market Growth 2010 - 2030MTSales SI(44,0% Market Share)PesimistModerateOptimist16114412463
  • 5. SEMEN INDONESIAMARKET CHALLENGEMT29,570,0Build 1 New PlantEvery YearSemen Indonesia Capacity RequirementCHALLENGES: Limited natural resources Land clearance issue Long construction time (± 3years)Challenges of AcquiringForeign Company1. Different nature of business, companyculture, & government regulation2. Aligning business & reporting system (e.g.ERP system)ACQUISITIONMaintain 44%market share inIndonesiaInorganicGrowthIncreased numberof customer &sales revenue
  • 6. SEMEN INDONESIAMARKETING STRATEGYBRAND ACQUISITIONMarket Entry StrategyUsing local existing brands, whichhave strong value in theirrespective marketLOCAL BRANDDomestic Branding StrategyEntering Vietnam market throughlocal existing brand (Thang Long)ALTERNATIVE BRANDRegional Market EntryStrategy (S.E. Asia)New brand will be used to enterregional market outside Vietnam& IndonesiaAcquisition of foreign companyQuick source of supply tofulfill 44% Indonesia marketshareFoundation for global marketexpansion
  • 7. SEMEN INDONESIASEMEN INDONESIA SUPPLY MAP
  • 8. THANK YOUMain Office:Main Building of Semen GresikJln. VeteranGresik 61122 – IndonesiaPhone: (62-31) 3981731-2, 3981745Fax: (62-31) 3983209, 3972264Representative Office:The East Building, 18th Floor,Jln. Lingkar Mega Kuningan Kav. E3.2 No. 1,Jakarta 12950 – IndonesiaPhone : (62-21) 5261174 – 5Fax : (62-21) 5261176www.semengresik.com