KUALA LUMPUR: CAB Cakaran
Corp Bhd, an integrated poultry farming producer, intends to re-enter the Indonesian market through a joint-venture with the republic’s biggest conglomerate, Salim Group, by investing between US$50mil (RM218mil) and US$80mil (RM350mil) over the next five years.
Its group managing director Christopher Chuah Hoon Phoong, said that due to the Covid-19 pandemic, the company ceased activities in Indonesia and its expansion plan in the country, and both parties are currently resuming negotiations to continue the cooperation.
“We are still negotiating with Salim (Group), and we are looking at a production of four million, so we are roughly looking at 50 broiler farms or 60 broiler farms in the Java region. In terms of investment, the actual figures are yet to be determined,” he said after launching its new Omega-3 fortified chicken at Village Grocer at Tropicana Gardens Mall in the Klang Valley.
CAB Cakaran had signed an agreement with Salim Group in 2015 to set up an integrated poultry business in the country, of which the latter owns Indofood Sukses Makmur Tbk, the largest noodle maker in Indonesia.
Salim Group is also the second largest shareholder in CAB Cakaran, with a 15.19% stake. Chuah said exports contributed about 10% of the company’s revenue and this was expected to increase to 15% within the next five to eight years. — Bernama
