Wismilak Diplomat brand has been
launched at first time in 1989; it is one of its famous brand. For mild
cigarette, the company commenced to sell the mild product in 2005. Later, the
corporation commenced its production at its new factory at Bojonegoro in 2002.
Others company’s factories are located at Buntaran and Kertosono at east java.
Based on its annual report in
2015, the company totally has five factories across east java. For
distribution, it has been supported by its subsidiary, PT. Gawih Jaya, its
distributor. At recent, the company also produced cigarette flavoring, filter
rods and other cigarette parts.
To survive in Kretek industry,
the company used a strategy; it decided to stop its expansion since 2014 due to
the slowdown of kretek industry growth. It focused in improvement of product
quality and human resources quality. It increased prices of the product and it
maintained the existing buyer. As the result of that, the company was able to
increase sales in 2015. The sales growth was driven by hand-rolled cigarette
(SKT).
In 2015, the company could
increase its sales more than 10 higher than its sales in 2014. Hand-rolled
cigarette product segment grew significantly in 2015. It increased 29 % in
comparison with same segment in 2014. For machine-rolled cigarette segment, it
increased at around 5 % compared to same segment in 2014. The corporation could
improve its gross margin in 2015 from 30.5 % in 2014 to 32 %.
In 2015, the debt financing ratio
also decreased due to installment payment and it was not searching new debt as
the economic growth was slowing down in 2014-2015.
The company holds its money for
expansion. It focused in human resource and product quality investment.
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