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Mitsubishi inks Indonesian JV for disposable diapers

06 Aug '15

2 min read

Daio Paper Corporation and Mitsubishi Corporation will establish two joint ventures for two companies, which currently are wholly owned subsidiaries of Daio Paper Group in Indonesia.

“The two subsidiaries of Daio Paper are Elleair International Trading Indonesia (EITI) and Elleair International Manufacturing Indonesia (EIMI),” a Mitsubishi press release said.

The outstanding shares of EITI and EIMI held by Daio Paper will be transferred to Mitsubishi and a third-party allocation of new shares of both companies will be transferred to it in November of this year.

Upon completion, Mitsubishi will hold 40 per cent stake each, in EITI and EIMI while Daio Paper will hold 60 per cent shares of each company.

According to Mitsubishi, demand for disposable diapers is expected to grow in line with the improvement of living standards and rising birth rate.

Daio Paper established EITI in March 2013 and began by importing disposable diapers from Thailand and marketing under the GOO.N brand.

Daio Paper set up EIMI in November 2014 to provide a stable supply and to reduce costs through local production, with the factory currently under construction and expected to start operations within this year.

Daio Paper has disposable diaper manufacturing technology and development capabilities to compete abroad.

“Experience in sales and marketing activities in Thailand and China and import and sales activities in Indonesia during the past two years will provide added strengths,” Mitsubishi informed.

Mitsubishi is involved in various food manufacturing, distribution and logistics businesses in Indonesia under an alliance with the Alfa Group, who are a leading retail chain with over 10,000 outlets in the country.

The joint venture will make a full scale entry into the Indonesian market offering disposable baby diapers of Japanese quality through various trade channels including the Alfa Group.

“Through these joint ventures, the companies will help expand choice of consumers in Indonesia and contribute to the local community through job creation,” Mitsubishi noted.

“In the future, we are eyeing exports from Indonesia and expansion in to other product categories such as adults diapers, sanitary napkins, wet wipes, sanitary paper, etc,” it observed. (AR)

Fibre2Fashion News Desk – India