Indonesian tyre maker PT Multistrada Arah 
SaranaTbk is aiming for a 10-15% revenue increase in 2016, according to its president director Pieter Tanuri. The company is planning to support this growth by expanding its production capacity and increasing its unit sales and exports of both car and motorcycle tyres. Tanuri notes that exports have the highest contributions in sales, saying that 70% of the company’s total sales come from the export markets. In line with this, Multistrada has taken out a US$30 million capital expenditure loan to optimise production capacity for both car and motorcycle products.
Currently, Multistrada has the capacity to produce 28,500 car tyres and 16,000 motorcycle tyres per day, and in 2015 the company sold 6.8 million car tyres, 12% lower from the previous year, and increased its motorcycle tyre sales by 3% to 3.3 million units. Car tyre sales were down due to a 14% decline in exports. The said loan will ultimately increase daily production capacity for passenger car tyresby 3,500 units per day to 32,000 tyres through a debottlenecking project, and this will help lift daily motorcycle tyre production capacity by 2,000 units a day to 18,000 tyres.
The company is looking forward to making a recovery in the European market and is also targeting the US market as a potential export destination, where they saw a 58% increase in sales in 2015. “We’re planning to penetrate the US market by establishing a representative office to deeply understand the market condition so that number of sales will rise further in the US market,” said Pieter Tanuri.
Multistrada has devised three strategies for growth this year: the first strategy is to optimise their supply chain in potential regions such as United States, Europe, Japan, Southeast Asia, Australia and Middle East; the second is to adjust the products for each targeted regions; and the third is to put efficiency in raw materials.
“We even have a cooperation with the French football club, Paris Saint-Germain (PSG) as the Official Global Tyre Partner. We’re hoping that PSG will be a helpful global brand to Achilles and Corsa’s penetration in the global market,” said Tanuri.
In 2015, the company recorded consolidated net sales of US$237 million, 16% less than in 2014. Sales were lower due to a 5% and 14% decline in the domestic and export car tyre sales respectively, pricing weakness and an unfavourable exchange rate between the Indonesian rupiah and US dollar. “The year 2015 was undoubtedly a year full of challenges for Multistrada. We believe that 2016 will be a great start for the company’s continuous growth as one of the biggest national tyre manufacturer in Indonesia,” said Tanuri.