Pecca Group Berhad is looking to establish a footprint in Indonesia by acquiring an 80% stake in established upholstery leather wrapping and car seat cover manufacturer PT Gemilang Maju Kencana, the company is associated with Indonesia’s MPI Group of Companies.
The agreement is on the basis of an MOU with GMK’s existing shareholders – PT Multi Berjaya Asindo (61%), CSC Automotive Sdn Bhd (22%), Mr. Tan Kim Cheang (16%), and Ms. Herny Pramana (1%) – to acquire 80% equity interest in GMK.
Pecca is expected to inject IDR 2.4 billion (RM726,000 at an exchange rate of 0.0003) out of the total IDR 3 billion injections.
This comes from its efforts to double its production capacity to 40,000 to 50,000 seat covers per month by end-2023. Currently, Pecca manufactures 20,000 to 22,000 seat covers per month. The increased production capacity will be accomplished once the construction of its second manufacturing facility in Serendah is completed by end of 2023.
The Group is also working towards transforming from a Tier-2 (sub-contractor) into a Tier-1 (main-contractor) player that manufactures the entire seat, rather than just the cover.
