[The Advance of K-Food] Daesang's 'Gim' Conquering Indonesia... Increasing Sales by 1 Trillion Won

Last Year's Sales 369.7 Billion KRW, Market Share No.1
Corn Starch Sales More Than Doubled
Top 10 'Comprehensive Food Company' Goal by 2030

Exterior view of Daesang Indonesia Starch and Sugar Factory. (Photo by Daesang)

[Asia Economy Reporter Seungjin Lee] Daesang has unveiled a vision to leap forward as a leading food and ingredient company in Southeast Asia based in Indonesia. The company aims to continue the competitiveness of 'K-Food' by promoting 'Gim,' a staple food in Indonesia.

On the 17th, Daesang revealed a blueprint to become one of the 'Top 10 comprehensive food companies in Indonesia' and a 'leading ingredient company in Southeast Asia' by achieving sales of 1.4 trillion KRW by 2030. Following a 7% year-on-year sales growth to 369.7 billion KRW in its Indonesian business last year, the company plans to expand sales by an additional 1 trillion KRW within 10 years.

'Mamasuka' Gim and Breadcrumbs Hold Unrivaled No.1 Positions

Daesang has been offering various products through the Indonesian comprehensive food brand 'Mamasuka,' launched in 2010. Gim and breadcrumbs lead the market in Indonesia. Gim holds an overwhelming 63% market share, surpassing Thailand's 'Tao Kae Noi,' which has been extensively operating in Southeast Asia. Recently, Daesang successfully launched 'sprinkle-on gim,' tailored to local cuisine.

Daesang is also focusing on localizing its factories. The food production plant located in Karawang, Indonesia, produces 20,000 tons of food annually. These products have obtained Indonesian halal certification. Daesang stated, "Through a locally friendly corporate image, our Indonesian food business sales reached 132.6 billion KRW last year, a 12% increase from the previous year."

Starch and Sugar Business Doubled in Three Years

The corn starch and high-fructose business is also progressing smoothly. Sales, which were 44.3 billion KRW in the first year after production began at the starch and sugar plant in March 2017, increased to 103.7 billion KRW last year, more than doubling. Last year, just three years after entering the market, Daesang achieved the milestone of holding the No.1 market share. The company self-assessed, "Through continuous market development and changes in production facilities, we have succeeded in diversifying into high value-added products such as modified starch, starch, high-fructose syrup, reduced-sugar syrup, liquid sugar, and by-products."

The bio business is steadily growing as well. Bio business sales, which recorded 115.4 billion KRW in 2017, reached 133.4 billion KRW last year. The Indonesian bio plant produces 80,000 tons of MSG annually. Collaborating with local partner 'PT. JICO,' Daesang has established a sales network throughout Indonesia. The company is expanding supply by contracting with major B2B clients such as 'Indofood' and 'Unilever.'

Jungbae Lim, CEO of Daesang, stated, "Since entering Indonesia in 1973, Daesang has established itself as a representative Indonesian food ingredient company with solid brand power and manufacturing competitiveness." He added, "We will lead the Southeast Asian food ingredient business by expanding exports of Indonesian-made products throughout Southeast Asia."