Office equipment trading company PT Astra Graphia Tbk (ASGR) has allocated IDR 200 billion (US$ 13.14 million) Capital expenditure (Capex), a 20% higher than its 2022’s allocation. The company will use the fund to facilitate its business and development of its transformative business.
Established in 1975, Astra Graphia is a subsidiary of Astra International conglomeration. The company focuses on printing and digital services. It went public in 1989. The company has built a partnership with Fuji Film in document solutions that produces personal printing needs, offices and Graphic Art to manage print services. Its subsidiaries include:
- PT Astra Graphia Information Technology (AGIT) which offers an Information Technology (IT) Solution and digital services that includes hardware, software and services.
- PT Astra Graphia Xprins Indonesia which provides services in Office Solution through its e-commerce AXIQoe.com, a One Click Office Solution and a B2B online printing.
Aiming to increasing revenue
The company will use its 2023 Capex for business growth as well as to facilitate its products and services such as complimentary product and services, workflow solution and digital document automation. It will also focus on IT services, strengthening its services and development of its service capabilities in cloud, IT security, analytics & IoT targeting the corporate segment.
Astra Graphia Chief of Business Strategy and Development and Corporate Communications Satryo Dewandono said the company was increasing its efficiency in operational costs and its priorities in its Capex. “We always evaluate our Capex spending and prioritize things that sustain our business growth,” he said as quoted by kontan.co.id on February 23, 2023.
Through its business units, the company is optimistic to achieve revenue growth as it prepares its strategies for 3 (three) of its business units in 2023.
“Astra Graphia also develops products and solutions for pre-press, press and post-press for the graphic art printing industry,” Dewandono added.
The company increased its contribution in the B2B field as well through solutions for meeting office needs, services in the field of printing and 3D printing. “We strive to implement operational excellence in all business lines and look for new opportunities,” he said.
Risks in digital printing industry
There are 3 significant problems in the digital printing industry that might affect Astra Graphia’s business:
- Quality and safety risks: One of the main risks associated with 2D and 3D digital printing is the quality and safety of the final products. Poor quality printing may lead to faulty or defective products that could disappoint consumers. However, the use of certain materials in the printing process, such as chemicals or plastics, could potentially be harmful on human health and the environment.
- Cybersecurity risks: Digital printing involves the use of software and computer systems, which may be vulnerable to cyber-attacks and hacking attempts. Cybersecurity breaches could result in the theft of sensitive information, corrupt printing files or even complete shutdown of printing operations. It is crucial for companies to implement strong cybersecurity measures to protect their digital printing systems and data.
- Market risks: The market for 2D and 3D digital printing is highly competitive, with many players offering similar products and services. Companies may face challenges such as changes in consumer preferences, fluctuations in demand and the emergence of new competitors. It is essential for companies to stay up-to-date with market trends and adjust their strategies accordingly.
