Thailand’s Siam Cement Group (SCG) has acquired a 29% stake in Catur Sentosa Adiprana (CSAP), which operates Mitra10 in Indonesia, a modern retailer of home products. The deal is worth IDR 1,035 billion, according to a stock exchange listing and is expected to be completed in the third quarter of 2018.
Through the move, CSAP is looking towards aggressive expansion to have 50 Mitra10 stores by 2021 in a bid to serve a growing need for building materials in the home renovations space. It looks to allow both parties to exchange knowledge and experience in addressing customers’ needs. Currently, there are 27 Mitra10 stores across Indonesia.
The partnership will also help benefit CSAP’s distribution segment by adding new principals, innovative products, supply chain management and inventory management. This is by implementing a good warehouse management system to continuously create more efficient performance.
The move will also see CSAP increasing its contribution of ceramic products and other products in modern distribution and retail segment as well as performance delivery. This is to serve the needs of customers.
For SCG, having a stake in CSAP will allow the company to further execute its penetration into the high-growth Indonesian market and realise further synergy with SCC's existing assets in Indonesia, it said in a statement.
Roongrote Rangsiyopash, president and CEO of SCG said that the company sees the potential and opportunities of Indonesian market in modern trade and retail business that offer home improvement products to serve the growing demands for customers.
“As CSAP is the largest and leading distribution company in building materials, SCG is proud to partner and build further sustainable growth of Indonesia together," Rangsiyopash added.
"We will work together, synergise and integrate our vision and mission to improve performance in the face of increasingly competitive market challenges and rapidly changing customer needs,” CSAP’s CEO Budyanto Totong said.