Sales and Marketing
Indocement currently operates 12 integrated plants that consist of klins and associated grinding mills, in three locations. It has nine plants in Citeureup Factory, Bogor, West Java, two in Palimanan, Cirebon, West Java, and one plant in Tarjun, Kotabaru, South Kalimantan. Total installed design capacity is 20.5 million tons of cement per year.
In 2014, sales of cement accounted for 79.0% of Indocement revenue, while the remaining 21.0% came from RMC, aggregates and others.
The following is an explanation of each of Company’s business segments.
Indocement’s product range includes Portland Composite Cement (PCC), Ordinary Portland Cement (OPC Type I, Type II, and Type V), Oil Well Cement (OWC), White Cement, and TR-30 White Mortar. These products are marketed under the “Tiga Roda” brand.
In 2014, total cement production by the Company reached 18.5 million tons, an increase of 4.1% from 17.8 million tons in 2013. Meanwhile, the cement capacity utilization reached 90.7%.
The Company’s cement domestic sales volume amounted to 18.5 million tons in 2014, an increase of 2.5% compared to 18.0 million tons in 2013.
In 2014, the Company’s exported clinker and cement with a volume amounting to 155 thousand tons, a decrease of 28.3% compared to 217 thousand tons in 2013.
The main focus of the Company in 2014 was to strengthen customers’ loyalty, to control production cost and to maintain its operating margin, rather than to reduce selling price, which resulted in the stable of market share at the level of 30.4%. Taking into account import volume, Indocement’s market share was 30.7%.
In addition, the Company was able to use the strong momentum of the market to pass through some of cost increase to the market by increasing the average domestic selling price of its cement by 4.7%, which contributed to the increase in the Company’s net revenues.