Indonesia’s Platinum Wahab Nusantara, the operator of drinks outlet chain Teguk, has decided to venture into the frozen meat and processed food sectors in the country.
This move is the company’s first diversification effort after Visionary Capital Global, an investment company from Singapore, took over its majority stake early this year.
In its official statement, Platinum’s management announced that the company will diversify into trading of chicken meat and beef and production of processed foods and ready meals.
“This decision is part of our diversification strategy which is aimed to strengthen our value chain in the processed food sector,” said Platinum CEO, Herman Tansri.
Funding for the diversification strategy
Platinum will reallocate around USD 2.6 million of its fund to open new Teguk outlets this year to finance the diversification strategy.
According to the company’s management, this business expansion is to respond the strong growth of the food processing industry in Indonesia which is driven by urbanization and growing demand for meat-based ready meals.
Platinum targets this new business to start operations in November 2025. The company will work with a third party to produce the processed foods and ready meals while preparing investment needed to set up a new food processing plant.
The company will conduct an extraordinary general meeting of shareholders soon to get approval for the business expansion and fund reallocation.
Preparation of mid-term business strategies
Visionary Capital Global, which currently holds 59.34% of Platinum’s shares, is now preparing mid-term business strategies for Platinum.
Besides the frozen meat and processed food business, the strategies will also include acquisition of a company in the same industry with a value of around USD 30 million, as well as issuing new shares to strengthen capital.