Jakarta, March 8, 2022 - PT Avia Avian Tbk (“AVIA”), a leading decorative paint manufacturer in Indonesia, continues to aggressively expand its business by adding distribution networks to capture opportunities and increase its market share in the domestic paint industry. This year, AVIA targets to reach 144 distribution centers spread from Sabang to Merauke. This step is one of the Company's efforts to boost business performance throughout 2022.
Wijono Tanoko, President Director of AVIA said, “Seeing the current opportunities, where the demand for our products continues to increase, AVIA continues to strive to provide solutions to meet domestic paint needs by further strengthening our distribution network. By the end of 2022, AVIA's total distribution network will be 144, spread throughout Indonesia. Supported by more than 700 delivery fleets, all these distribution centers are always focused on improving service quality to building material store customers. This will certainly facilitate access to various AVIA products.”
Wijono continued, in the next 2-3 years, the Company aims to open approximately 6-8 new distribution centers per year. Therefore, with an increasingly extensive network, the Company is optimistic that revenue can grow by double digits this year. At the end of 2021, AVIA's sales reached up to Rp6.8 trillion.
On the other hand, AVIA also plans to build a new modern and integrated factory in Cirebon to increase AVIA's production capacity by 225,000 MT per year, which is expected to start operating in 2025. For the construction of the factory, AVIA has allocated capital expenditure of approximately Rp750 billion.
“The construction of this third factory is necessary to smooth product supply in connection with the Company's targeted double-digit growth plan. We are optimistic that AVIA can expand its market share and improve good performance, and continue to contribute in providing solutions for paint demands from all diverse consumers in Indonesia,” concluded Wijono.
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An Overview of PT Avia Avian Tbk
PT Avia Avian Tbk. was founded in 1978 as an integrated paint manufacturing company. Known as Avian Brands, the Company has produced and sold a range of architectural solution products used in home construction. Some of the products produced by AVIA include wall paint, anti-leak coating paint, wood and iron paint, wood treatment paint, and others.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), the Company is a market leader in the decorative paint and coating industry in Indonesia, with a total market share of approximately 20%, based on Avian Brands' sales revenue in 2020 generated from decorative paint and coating products, according to Frost & Sullivan. The Company has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang, Indonesia, as well as the widest distribution network in Indonesia, which includes 105 self-owned distribution centers and 34 third-party distribution centers in Q1-2022. All these distribution centers serve more than 54,500 building material stores throughout Indonesia.
