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Saturday, January 14, 2017

BENTOEL INTERNASIONAL INVESTAMA

Bentoel group was formerly named as “Strootjes Fabriek Ong Hok Liong” which was established by Chinese businessman, Ong Hok Liong. In 1954, the company turned its name in to PT. Perusahaan Rokok Tjap Bentoel. The company was the first tobacco company that produced machine-rolled cigarette or Sigaret Kretek mesin that is packaged by plastic.

In 1987, Rajawali corpora acquired Bentoel and turned its name as Bentoel Internasional Investama. Rajawali corpora which is owned by Peter sondakh took as controller in managing the company.

Afterwards, in 2009, Rajawali corpora sold Bentoel to British American Tobacco Indonesia Tbk. The companies were mergered in to Bentoel Internasional Investama Tbk. British American Tobacco decided to use Bentoel Internasional Investama Tbk as its name.

For Sigaret Kretek Tangan (SKT), the company produces Bintang Buana Raya, Tali Jagat Raya, Sejati, Sejati Gold, Rawit and etc, For Sigaret Kretek Mesin (SKM), the products are Bintang Buana Filter, Tali Jagat Filter,Bentoel Biru, Bentoel Biru Slim, Uno Mild, One Mild, neO Mild, Star Mild, X mild, Club mild and etc. The company also has Sigaret Putih Mesin (SPM) products; there are Dunhill, Dunhill Switch, Dunhill Lights, Lucky Strike, Pall mall and etc.

Based on its annual report, the company focused to two brands, Dunhill and club mild. Dun hill was the key driver of its rapid growth in 2015.

In 2015, the additional fixed asset comprises asset under construction, equipment purchasing and building and infrastructure. The increase of fixed asset is done for its target to accelerate sales growth rapidly.

In the same year, the company was able to increase its sales 16 % higher than its sales in 2014. 2 % of the growth was contributed by Dunhill brand. Strong advertisement and brand improvement of the product are the key success factors.

The increase of excise duty in every year is possibly affecting revenue acceleration in the future. Government tends to increase its excise duty. However, government still concern to small size industry, the highest rate is charged for Sigaret Putih Mesin (SPM). For SKT of small enterprise, it is only charged 0 % increase for its excise duty. (source: finance ministry). In the last 10 years the tobacco factories decreased from 4669 units in to 754 units across indonesia.

Therefore, the company intends to reduce cost, it has applied on line procurement to pay and sourcing management improvement along 2015.









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