The automotive business of the Triputra group of Indonesian billionaire Theodore Rachmat is running at full speed. Now he is preparing to take his auto parts company, Dharma Polimetal, on the stock exchange in a deal that would be worth the company up to $ 200 million.
Dharma Polimetal is offering 705 million shares, or about 15% of the company, priced at 500-620 rupees each, to raise up to 437 billion rupees ($ 30 million) when it goes public on the stock exchange from Indonesia. The company is a major player in motorcycle parts and is looking to grow revenue from the automotive segment, including electric vehicle parts.
“With eight subsidiaries that focus on the production of specific components, Dharma Polimetal is in an excellent position to capture significant market share in the auto parts manufacturing industry,” said Irianto Santoso, CEO of Dharma Polimetal on Monday. , in a press release.
Dharma Polimetal generated 1.8 trillion rupees ($ 125 million) in revenue last year. Almost 70% of the revenue came from the supply of parts for motorcycle manufacturers. The majority of the parts produced by the company go to Astra Honda Motor, which produces Honda motorcycles and holds 70% of the Indonesian motorcycle market, which reached 3.6 million units last year.
In the future, Dharma Polimetal aims to increase the contribution of automotive components to 50% of its turnover. It is also capitalizing on the electric vehicle trend by entering into the manufacture of components such as high-resistance steel and batteries. The company has also formed a joint venture with Korean company Kyungshin Corp. last year to produce an electric vehicle harness for Hyundai Motor which will start operating its Indonesian plant early next year.
The pandemic has put a damper on the auto industry. Last year, wholesale car sales in Indonesia fell about 50% to 532,027 units, from 1.03 million units in 2019. However, Andrianto Saputra, equity analyst at Sinarmas Sekuritas, believes that the automotive sector is experiencing a strong recovery in growth due to higher economic activity this year. . “With the easing of government restrictions and better development of Covid-19, we believe this should have a positive impact on the economic recovery which historically has a positive correlation with the auto industry,” Saputra said in its latest note research in September.
The Indonesian Automobile Industries Association predicted that the Indonesian automobile industry will reach 1.5 million units by 2025. âWe can achieve a lot more than that,â Santoso said. âThe motorization rate is still low and if we reach the level of Malaysia and Thailand, our manufacturing industry can quadruple. “
After the IPO, the Triputra group will remain the majority shareholder through Dharma Inti Anugrah, which holds 47.6% of the capital of Dharma Polimetal, and Triputra Investindo Arya, which holds 13.5% of the capital. Dharma Polimetal will join other companies in the Triputra group listed on the IDX, such as coal producer Adaro Energy, palm oil producer Triputra Agro Persada and car rental company Adi Sarana Armada.
Triputra Group was founded in 1998 by Rachmat, who is No. 16 on Forbes‘latest rich list in Indonesia with a net worth of $ 1.6 billion. The automobile is deeply rooted in Rachmat’s success since he began his career as a heavy equipment salesman within the Astra International automobile group, founded by his uncle William Soeryadjaya, in 1968. He rose through the ranks to became CEO of Astra International in 1984 â a position he held for 14 years.