JAKARTA. PT Buyung Poetra Sembada Tbk (HOKI) plans to diversify its products and expand its distribution network by increasing its production capacity.
Although HOKI Director Budiman Susilo did not disclose the detail of the company's planned diversification, he said that it is part of the company's risk mitigation effort following a slump in rice sales.
According to Mr Susilo, HOKI will increase its production capacity by building a new factory in Tugumulyo, Ogan Komering Ilir, South Sumatra, bringing the company's overall production capacity to 75 tonnes per hour by 2021 and 95 tonnes per hour by 2022.
For that purpose, HOKI will also improve its network, considering the adequate demand for rice in modern markets. According to data from the third quarter of 2020, contribution from modern markets rose to 50.28% of HOKI's total sales, said Mr Susilo as quoted from Kontan.co.id on Tuesday (5/1).
In order to improve share liquidity, HOKI is also planning a stock split with a 1:4 ratio and will seek shareholders' approval for the corporate action at an EGM on 27 January 2021. (AM/MS)