Because of yarn, Sritex’s sales are brilliant
The world is being hit by an economic slowdown and a trade war between the two largest economic poles in the world, the United States (US) and China. But PT Sri Rejeki Isman Tbk (SRIL) or Sritex can still record brilliant sales because of the thread . Sritex’s Managing Director, Iwan Setiawan Lukminto, said that his company recorded an increase in gross sales above the industry average which was anxious to see a trade war.
In the first semester of 2019, the company’s gross sales rose 16.16 percent compared to the same period in 2018 from US $ 543.76 million to US $ 631.54 million (year on year / yoy). “This strong sales is supported by the dominance of yarn sales which contributed 40.1 percent of total sales up to Semester I 2019,” Iwan Setiawan said at a media meeting at the 53rd Sritex Group Anniversary at his headquarters in Sukoharjo, Central Java, Friday (Friday) 8/16/2019). Also in the first semester of 2019, Sritex – one of the largest textile producers in Indonesia – recorded a 3.2-fold increase in exports to the US and Latin America. The total value of Sritex’s exports to the US reached US $ 63.25 million from US $ 15.98 million. Iwan Setiawan explained, the contribution of exports to the US and Latin America contributed 13.6 percent to total export sales, and exports were the main motor for Sritex’s profits.
Seeing a brilliant performance amid the global economic downturn and trade war, Sritex was grateful. Moreover, the world textile market is very tight, especially having to compete with Vietnam and Bangladesh. Iwan Setiawan also told the secret of Sritex in winning the competition. For example, Sritex excels in production facilities from upstream to downstream so that it can attract investors and international brands to shift orders from Tongkok to Indonesia. “ Sometimes going to Vietnam, which consolidation textiles are strong? What strong Indonesia? he added. In addition, Sritex applies the right strategy so that its growth is strong and sustainable. That is why Sritez recorded an increase in net profit of 12.29 percent in the first semester of 2019 to US $ 63.25 million.
Iwan Setiawan added that textiles and clothing were still the highest growing manufacturing sector in the second quarter of 2019 at 20.71 percent. This growth is higher compared to the paper and food and beverage industry sectors. The increase in the textile industry is supported by increased production in several centers in Indonesia so that it is still able to compete on the international scene. However, Sritex is still worried about illegal textiles from China, especially since the country has just devalued the value of the yuan so that their products can be cheaper on foreign markets. “We continue to communicate this to the government about the entry of imported goods from China so we need protection from the textile industry,” said Deputy Director of Sritex, Iwan Kurniawan Lukminto. To overcome that, in addition to the government, Sritex will synergize with businesses from upstream to downstream to enlarge the Indonesian textile industry. Moreover, the textile industry is able to absorb more workers.
Chase millennial market
Sritex is the most trusted supplier for military uniforms in various countries and fashion brands such as Uniqlo and H&M. Sritex was originally only a simple clothing stall in Klewer Market, Solo, Central Java, in 1966. Lukmanto, the founder, gave him the name UD Sri Rejeki. Entering the age of 53 years, Sritex is now beginning to pursue the millennial market. They established a small division that specializes in serving and accommodating millennial ideas. This special division also serves orders from young people, although still on a small scale. According to Iwan Setiawan, usually young people order 100 or 200 pieces. “So they can order us directly using our production fabrics, even with a small minimum order,” said Iwan Setiawan.