Friday, June 17, 2005

Garudafood's Profile

The root of Garudafood was PT Tudung, a company engaged in tapioca flour business and was established in 1958 in Pati, Central Java. In 1979 company established by the late Dharmo Putro changes its name to PT Tudung Putrajaya (TPJ) and started crispy peanuts business with no brand.
Then at the beginning of 1987, TPJ started selling its peanut products under the brand of Kacang Garing Garuda (Garuda Crispy Peanuts), recently known as: Kacang Garuda (Garuda Peanuts). Along with the improvements and progress made, it triggered the company to keep on innovating. Various product diversification efforts are pursued by operating new machinery with modern technology. This era was marked with the establishment of new company called PT Garuda Putra Putri Jaya in 1995, engaged in kacang salut (coated peanuts) production. The products produced at that time were including kacang atom (white-coated peanuts), kacang telur (egg peanuts), and kacang madu (honey peanuts).
Previously, in 1994, a division of Garudafood was established under the name of PT Sinar Niaga Sejahtera (SNS). The establishment of the distribution division was based on the geographic conditions of Indonesia which consist of of tens of thousand islands and separated by ocean.
In 1996, a plantation division was established under the name of PT Bumi Mekar Tani (BMT). Research carried out by BMT resulted in two superior varieties which are Kacang Garuda Dua (Garuda Peanuts Two) and Kacang Garuda Biga (Biga Garuda Peanuts) which received approval in the form of Letter of Verdict from the Minister of Agriculture of Indonesia in 2002.
On December 22, 1997 PT Garudafood Jaya was established. This company produces biscuit with brand Gery. Additionally, in May 1998 Garudafood acquired PT Triteguh Manunggal Sejati (TMS) and produces jelly under the brand of Okky. In November 2002 TMS launched OKKY Jelly Drink, marking the entrance of Garudafood to beverage business. In 2002 “Okky Jelly” became the market leader in the national market for jelly.
Previously in 2001, the shareholders agreed to merge the three companies, namely Tudung Putra Jaya, Garuda Putra Putri Jaya, and Garudafood Jaya in one company; PT GARUDAFOOD PUTRA PUTRI JAYA (GPPJ).
At the moment, Kacang Garuda emerges as a brand associated with the innovative peanut products. This is proven by the variety of light food products (snacks), which made from peanuts in diverse tastes such as Kacang Kulit Rasa Bawang (Onion Flavored Peanuts) and Kacang Kulit Rasa Keju (Cheese Flavored Peanuts)
Garudafood also expands to light food products, which made from soybean, with the launch of the innovative Soybean Snack, Spicy Soybean, and Tasty Soybean.
Besides overpowering the national market, Garudafood products are exported to many countries such as Singapore, Malaysia, Hong Kong, Philippines, Brunei Darussalam, China, Australia, Pacific Islands, USA, Canada, Guatemala, Mexico, Bangladesh, India, Arab Saudi (KSA), UAE, Jordan, Lebanon, Yemen, Netherlands, Germany, etc.
Currently Garudafood controls nine subsidiaries, they are: PT. Garuda Putra Putri Jaya (Kacang Garing (Crispy Peanut) Division), PT. Garuda Putra Putri Jaya (Kacang Salut (Coated Peanut) Division), PT. Garuda Putra Putri Jaya (Biscuit Division), PT. Sinar Niaga Sejahtera (Distribution Division), PT. Bumi Mekar Tani (Plantations Division), and PT. Tri Teguh Manunggal Sejati (Jelly Division), PT Garuda Solusi Inti (Education Division), PT Dharana Inti Boga (Joint Venture) with the first product of soybean milk under the brand of Mr. Bean. The products are more varies, from snacks, beverages, basic food (instant rice), to education services (Garuda Sales Institute).

INNOVATIVE APPROACHES
Target put forward in the Garudafood’s vision up to 2008 is to be one of the best food and beverage companies in Indonesia in terms of profitability, revenue, and customer satisfaction. Referring to the balanced scorecard concept in order to achieve sustainable enterprise (financial perspective), Garudafood is required to always give added values (value added) to its customers (customer perspective).
These efforts need to be supported by creative and innovative processes (internal business perspective). These creative and innovative processes can only occur if the human resources aref knowledge workers (learning and growth perspective).
Moreover, Garudafood tries to create such climate that every individual is proactively expressing their learning and creativity potentials to produce a process of change. These potentials will grow if the working environment is conducive to freedom of expression.
Every individual is also required to always have the spirit of never give up and being defeated by any failure. In every creative process created a climate that makes people feel comfortable to be creative without fearing any risk of failure.
Now, about 16,000 employees which consider Garudafood Group as their home are hence invaluable resources. They are chosen individuals with good skill, knowledge, and attitude which continuously create and innovate (continuous improvement).

FUTURE PLANS
The fast-growing Garudafood business cannot be separated from the stipulated target and continuously evaluated every five years. For 2008 target, for instance, Garudafood sets to have Rp. 5 billion income, to have 5 Brands recognized as the best brands by independent research body, and to become The Big Five in the national food & beverage business.
In order to achieve these three targets, Garudafood had
prepared appropriate business strategies. After succeeding in dominating peanut snack business, obtaining profits in distribution business, dominating the jelly market and entering the beverages market through Jelly Drink, expanding its wings to biscuit industry, Garudafood is entering the basic food business with Instant Rice product. Additionally, in the future, it will also validate its existence in beverage business, entering the dairy business, and pharmacy. In the snack sector, Garudafood will create innovative products based on corn and potato as main ingredients.
All of these are based on the spirit to develop the company’s mission and vision in accordance with the context of competition occurring including in deciding which industries to be pursued by the company. This is carried out by all means, either with own capability, acquiring other companies, or with a joint venture.
When entering the biscuit business, for example, Garudafood purchased a bankrupt factory. When entering the jelly business, Garudafood acquired a local jelly company and take over the majority of shares. Likewise, when entering the Tingting candy and basic food (instant rice) business, Garudafood used the pattern of original equipment manufacturing (OEM) with a food company in China, with the possibility of building a factory in Indonesia with Garudafood as the majority shareholder.
Any selected strategy must pass through research and development (R&D) phase. Besides having to be innovative, Garudafood product must also have clear differentiation compared to the existing products. Garudafood’s instant rice, for example, is different from previously existing product, because it only needs hot water, without having to be cooked.
After dominating domestic market, in 2005 Garudafood is starting to establish international division by investing in five countries, namely Vietnam, Thailand, China, India, and USA, by either building factories or establishing trading company.

MANAGEMENT TEAM
The Core Management Team of Garudafood

Hartono Atmadja (Managing Director of Manufacturing Division)
Giving a quite significant contribution in Garudafood business portfolio for manufacturing division, Hartono also supervises strategic cooperation with other company (joint venture), Garudafood’s Plantations Division which succeeded in producing two superior varieties of peanut, namely Kacang Garuda Dua (Garuda Peanuts Two) and Kacang Garuda Biga (Biga Garuda Peanuts) confirmed with a Letter of Verdict from the Minister of Agriculture Number:397/Kpts/SR.120/8/2003, and Letter of Verdict from the Minister of Agriculture Number: 399/Kpts/SR.120/8/2003. Not less than 70 thousand peanut farmers are currently supplying peanuts to guarantee the smooth production process in Garudafood.
At the moment, Hartono is concentrating on the acceleration of business growth for “basic food” and on the development of international division by building factories in Vietnam, Thailand, and India. China and South Africa are also targeted for development by Garudafood’s international division. Other program being presently carried out by Hartono and his team is preparing preparatory steps for expansion in peanut agribusiness sector.

Hardianto Atmadja (Managing Director of Distribution Division)
After handled by Hardianto Atmadja as Managing Director, Distribution Division (SNS), performs total restructurization of the SNS organizational structure. At first, SNS only specialized in the distribution of Garudafood’s products for more than eight years, and since May 2002 its function has been changed to become Integrated Consumer Good Distribution started by the assignment of SNS as distributor of products of URC Indonesia (subsidiary of URC International in the Philippines). After that SNS moves faster and gives quite significant contribution to the revenue of Garudafood.
Some principals other than URC that have trusted SNS as distributor of its products are : PT Nutrifood, , PT Frutang Bev Industry, PT Cara Sehat Farma, PT Sinde Budi Sentosa, PT Tiga Pilar Sejahtera, PT Ulam Tiba Halim, PT Incasi Raya, PT Adimulya Sarimas Industri, PT Sparindo Mustika, PT Wiraniaga Langgeng, etc. In 2004, SNS also succeeded in starting cooperation with Nestle and Johnson & Johnson, two multinational companies, to distribute its products in Indonesia.
SNS develops networks by providing a joint venture with distribution enterprises in the regions, and up to now branches and depots of SNS (more than 80 points) are spread in the entire area of Indonesia (except Maluku,Irian and some parts of Sulawesi, however these regions will be reached in 2005). SNS performs fundamental restructurization in the Technology Information System and development of diverse systems of distribution oriented to the future.

Budiman (Head of Corporate Marketing)
Budiman succeeded in raising and promoting the brands of Okky Jelly and Gery Biscuit hence enhancing the assets of brand to Garudafood in addition to the brand of Kacang Garuda. In less than two years of conducting brand investment, each brand has become market leader. Okky Jelly in the jelly market for kids and adults whereas Gery in wafer stick market. Even Gery Biscuit has entered the biscuit market and competed with multinational company such as Danone, Arnotts, Kraft, through quite adequate methods, namely by opening new product categories that have never been existed in the market previously. Yet, these big players become followers by also entering the new product category created by Gery.
Starting from June 2004, Garudafood (with the brand of Kacang Kulit Garuda) and Indonesian Heart Foundation (YJI, Yayasan Jantung Indonesia) are campaigning in educating healthy peanut for the heart. A year earlier, namely 2003, similar cooperation was carried out by Kacang Garuda with Indonesian Nutrition Association (Persagi).

Rahayu Dewiningrum (Head of Corporate R&D)
Research and Development (R&D) is under the leadership of Rahayu Dewiningrum who has created many of Garudafood’s innovative products. Peanut product which was only a commodity became a wide variety product brands, with many variation of shapes and flavors, confirmed Kacang Garuda (Garuda Peanuts) as innovative peanut producer. Kacang Garuda’s innovations include Onion Flavored Peanuts and Cheese Flavored Peanuts (the first and the foremost in the world), and Garuda’s soybean snack, which make soybean as hygienic and modern healthy snack. Okky Jelly drink becomes unique because the benefits from the product are not only to satisfy thirst but also to delay hunger, because it contains jelly. Okky jelly drink itself brings Garudafood to a new stage by entering the beverage industry, which will be followed with other beverages.


FX. Afat Adinata (Chief Operating Officer of Distribution Division)
At the end of 2001 Corporate Planning and Review Division was established under the leadership of FX Afat Adinata. This division is in charge of supporting the management in drafting and stipulating strategic plans for the company both short-term and long-term. The first step carried out by assisting the management comprises revisiting Garudafood’s mission and vision that has been completed on September 2003. This new Mission and Vision become the foundation for the management to stipulate the goals 2008 (Garudafood’s five-year strategic plans). Then this division acts as facilitator for operational division and other supporting divisions in preparing their activity plan to support the achievement of goals 2008.
At the beginning of 2004, CPRD Division was merged into the Corporate Secretary Division (also supervising the Corporate Communication, Corporate Legal and Corporate Office). The activities of CPRD in year 2004 started with the support of CCD (Corporate Competency Development) team in preparing Garudafood Management System with the objective of bringing Garudafood to become a professionally-run company based on system, not by relying on individual figure. In year 2005, FX Afat Adinata was assigned to a new duty as COO (Chief Operating Officer) in SNS.

Hariadi Widiarta (Head of Corporate HR Development)
Handling strategic sectors associated with Human Resources Development (HRD). Since the beginning it was realized that handling human resources development must be started with the placement of foundation, namely establishing corporate values and culture, building a system of work, and preparing people to be aligned with the system to be prepared to work based on the stipulated system. Hariadi also plays a role the in organization development, preparation of corporate culture, model of human resources development and preparation and inauguration of “Garudafood Management System Guidance” in February 2005.
At present Hariadi is “in charge” of socializing and implementing ”GMS Guidance,” particularly in regard to Corporate Core Values aspect; performing projects of development of Human Resource system, competencies development to materialize ”knowledge workers”, and ‘bottom-up program’ constituting the basic program to prepare people to be willing and capable of applying ”GMS Guidance” in daily work.

PEOPLE PHILOSOPHY
There are three interrelated elements highly noted in the company to exist and to mutually strengthen, namely employees (right people), system, and facilities. The company views that the “right people” is in principle the main asset of the company who must have competency and also sound attitude which conforms to Garudafood’s culture. In addition to “right people”, Garudafood has also a system called GMS (Garudafood Management System) managed by Corporate Competency Development Department.
Besides considering the development of people and system, Garudafood also builds a system of compensation and benefit, career path, career planning, and learning program to fill the personal needs of its employees so they become satisfied. These are aimed at achieving the quality of work and quality of life.
In addition to the personal life of employees and their family (Quality of life), the work environment (Working life) is also continuously developed. From here arises Knowledge Worker concept, namely employees, besides being competent, are also satisfied. Therefore “Knowledge Worker Model” in Garudafood has two main aspects, namely competence (skill, knowledge, and attitude) and employee satisfaction (in regard to quality of life and working life). Through such Knowledge Worker will be borne creativity and innovation in products, processes, and procedures.
Such conditions constitute bases for the creation of Garudafood Community which can serve as the initial step to materialize that what is called civic responsibility. Namely the company’s efforts of becoming not only business community, but also capable of giving wider positive impacts by building “competitive culture”, character and personality development to its employees therefore the company jointly with its employees on an individual basis can form and color the development of the surrounding community. Therefore, employees are not only giving their contribution to Garudafood, but also coloring wide community by becoming Agent of change.
For this reason, every individual in Garudafood is expected to become not only a dynamic professional but also to achieve Peace of Mind such as set out in the Company’s Corporate Philosophy, namely Dynamics and Peaceful.
The high understanding to the function of civic responsibility encourages the employees to actively help the community, particularly when Indonesia is hit by natural disasters such as flood in Jabotabek, Rembang, Pati, and victims of social conflict in Sampit in Madura, East Java, Tsunami in Aceh, or food crisis in Lembata, NTT.

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