KUALA LUMPUR: Automotive leather upholstery maker Pecca Group Bhd
will be making its physical debut in Indonesia, which is one of the biggest automotive markets in Southeast Asia.
Chief executive officer Foo Ken Nee said the company is set to have a physical footprint in Indonesia, which is selling more cars than any other Southeast Asian market, by acquiring PT Gemilang Maju Kencana (GMK), an established upholstery leather wrapping and car seat cover manufacturer.
"Indonesia is expected to be an important engine of growth for Pecca as it strives to enlarge its foreign presence in the automotive industry,” he said
On Oct 31, 2022, Pecca’s wholly-owned subsidiary, Pecca Leather Sdn Bhd, signed a memorandum of understanding (MOU) with GMK’s shareholders to acquire an 80 per cent equity interest in GMK, which is associated with Indonesia’s MPI Group of Companies.
Pecca signed the MoU with GMK’s shareholders PT Multi Berjaya Asindo (61 per cent), CSC Automotive Sdn Bhd (22 per cent), Tan Kim Cheang (16 per cent) and Herny Pramana (1 per cent).
Pecca is expected to inject IDR 2.4 billion (RM726,000 at an exchange rate of 0.0003) out of the total IDR 3 billion proposed injection. - Bernama
