The large market demand for personal protective equipment (PPE) along with the high rate of the spread of the corona virus, has prompted PT Pan Brothers Tbk (PBRX) to increase its business activities to produce PPE and cloth masks.
This additional business activity is projected to provide additional revenue of up to USD 19.5 million equivalent to Rp. 282 billion (exchange rate of Rp. 14,500 per USD) by the end of 2021. This information was conveyed by the company in its brief prospectus in Jakarta.
This garment and textile issuer explained that the addition of business activities was carried out as an effort to respond to the high demand for PPE and masks needed by the community and also medical personnel. The company itself considers that this segment can be an opportunity for the textile industry to rise from the pressure of cheap imports and the pandemic that weakens purchasing power.
In early March 2020, the company actually produced PPE and cloth masks that were used for company needs and donation purposes. This was done by the company because it was difficult to get a large supply. Currently, the supply of these vital products is decreasing again, this has prompted Perserpam to return to producing PPE and masks to meet local and international market demands.
Pan Brothers itself has decades of experience in producing various garment products ranging from technical, functional and active clothing such as snowboarding, jogging, hiking and other outdoor activities. With this experience, the company is confident that it can produce PPE and masks optimally and strive for a good supply chain in the market. The PPE and cloth masks that the company will produce will be branded I-Pan and Mask-On. All production facilities and distribution of the company's products have obtained permission from the Indonesian Ministry of Health.
Pan Brothers has also prepared a marketing strategy. Several strategies will be carried out by the company, namely through social media, government and private agencies, hospitals and medical personnel. The company will also cooperate with subsidiary companies so that product distribution can be maximized. Through this collaboration, it is expected to expand market connections and networks. In addition, the company will collaborate with raw material suppliers in order to obtain beneficial synergies for operational sustainability, adding new buyers and also empowering existing buyers.
With the addition of business activities and various strategies that will be carried out, Pan Brothers projects that the company's revenue will increase by around USD 19.5 million by the end of 2021. In the following year, namely 2022, the company is also expected to receive USD 10 million. Meanwhile, the additional profit that is estimated to be obtained by the company is USD 2.52 million in 2021 and USD 1.35 million in 2022.