Tuesday, May 28, 2024

CSA plans to open 5 new Mitra10 superstores with IDR 1.3 trillion Capex for expansion

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Annelis

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PT Catur Sentosa Adiprana Tbk (CSA) is a listed company and the largest independent distribution and modern retail for building materials in Indonesia. The company allocates IDR 1.3 trillion (US$ 84.4 million) of capital expenditure (Capex), for their business expansion in distribution and modern retails.

The company was founded in 1966 under the name of Toko Tjat Sentosa. In 1983, the company changed its name to Catura Sentosa Adiprana, or CSA. By 2007, the company was listed as public under the stock code CSAP and is now a subsidiary part of PT Buanatata Adisentosa. CSA also has number of subsidiaries mainly: PT Kusuma Kemindo Sentosa with 51% ownership, and others. 

CSA continues its expansion to increase its growth rate

CSA has grown continuously through its distribution segment (building materials, chemicals, and fast-moving consumer goods), and through its modern retail (building materials, and furniture) scoring a positive result in 2022, explained Andy Totong, the Director of CSA.

The company’s modern retail contributes 38% of received income worth IDR 5.87 trillion, an increase of 16.01% Year-on-Year (YoY). This retail expansion strategy is considered to give a positive contribution, which can be seen in the company’s income growth, and margin, added Idrus Widjajakusuma, the Corporate Secretary of CSA.

To foster its future growth, CSA allocates a capital expenditure of IDR 1.3 trillion. 85% of the capital will be used to improve the company’s modern retail and 15% will be allocated to its distribution segment improvement.

CSA is now planning to open 5 new Mitra10 superstores and committed to continue expanding into retail, targeting 100 Mitra10 superstores by 2030. “This company’s commitment shows its confidence in the growth potential of this sector and its ability to deliver strong financial results,” said Idrus, quoted from Kontan.co.id on March 15, 2023.

By now, the company has 45 Mitra10 retail stores, and 19 showrooms located in Jakarta, Bogor, Tangerang, Bekasi, Cikarang, Karawang, Cirebon, Yogyakarta, Solo, Sidoarjo, Semarang, Tegal, Surabaya, Malang, Denpasar, Lampung, Palembang, Batam, Medan, Pekanbaru, Makassar, Mataram, Balikpapan, and Banjarmasin. Last year the company opened several Mitra10 retail stores in Antasari-Lampung, Pekanbaru, Cibinong, and relocated one retail store to Pondok Bambu. Furthermore, the company has added Atria showroom in Antasari-Lampung, Pekanbaru, Cibinong, and Pasar Baru.

Risk in the retail industry

Highly competitive, the retail industry is highly competitive. There needs to be an innovative and an adaptable strategies to keep up with the changing of consumer preferences, trends, and behaviors turning to digital shops.

Supply problems: The disruption in supply-chain and logistic could lead to stock problems and lead to loss of sales.

Journalist IBP

Journalist

Annelis

Editor

 

Interview

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