GRAHA KERINDO UTAMA PT IN

TISSUE AND HYGIENE

(INDONESIA)
Euromonitor International
March 2017
GRAHA KERINDO UTAMA PT IN TISSUE AND HYGIENE (INDONESIA) Passport I

LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1 Graha Kerindo Utama PT: Key Facts ........................................................... 1
Competitive Positioning ................................................................................................................ 1
Summary 2 Graha Kerindo Utama PT: Competitive Position 2016 ................................. 2

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GRAHA KERINDO UTAMA PT IN TISSUE AND HYGIENE (INDONESIA) Passport 1

GRAHA KERINDO UTAMA PT

STRATEGIC DIRECTION
 Graha Kerindo Utama (GKU) aims to be a well-known retail tissue company in the Southeast
Asia region. In order to achieve this, the company is set to continue focusing on its paper
business, primarily tissue, not just in the domestic market but also for exports. GKU will
continue to pursue social responsibility by its “Go Green” campaign. In the forecast period, the
company’s Peemo brand of baby diapers is unlikely to register notable shares, and GKU is
expected to focus on expanding its tissue products.
 In September 2016, the company celebrated its 30th anniversary, with all of the employees
from different branches in the country gathering together as a family. To mark its 30 years of
existence in the country, the company launched a new product, Tessa Travel Pack Eco-
friendly Tissue, which claims to use eco-friendly tissue paper and packaging.
 GKU is a local company owned by Kompas Gramedia. Founded in 1986, the company has
grown strongly ever since and produces a range of retail tissue products, from napkins, boxed
facial tissues and pocket handkerchiefs to toilet paper, and it started producing
nappies/diapers in 2011. The company claims its retail tissue products are made from 100%
virgin pulp and it is committed to preserving the Indonesian rainforest, so it only uses wood
sourced from industrial forests. In addition, the company launched new packaging in 2011 for
its Tessa product, which is eco-friendly and decomposes more easily.
 The company is purely involved in tissue industry, owning two factories, one in Cikampek and
the other in Cibitung. Meanwhile, another subsidiary of Kompas Gramedia, Graha Cemerlang
Paper Utama (Grace Paper) is a paper mill, established in 2004, and was built to support the
growing company by supplying all required raw materials for its paper.

KEY FACTS
Summary 1 Graha Kerindo Utama PT: Key Facts
Full name of company: Graha Kerindo Utama PT
www: www.tessatissue.com
Activities: Manufacturer of retail tissue and
nappies/diapers
Source: Euromonitor International from company reports, company research

COMPETITIVE POSITIONING
 The company was ranked eighth in the Indonesian tissue and hygiene market, with a 1%
value share in 2016. GKU derives its strong position in retail tissue, where it was the leading
player with a 28% value share in 2016. Meanwhile, its share in retail hygiene was still too
small to be quantifiable by the end of the review period.
 The company’s share in overall tissue and hygiene was gradually declining towards 2016.
This was mainly because retail hygiene has performed more strongly than retail tissue as a
whole. In retail tissue, the company maintained its value share in 2016, thanks to its
innovative approach in launching new eco-friendly product variants and heavy promotions.

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 GKU is positioned in the dynamic retail tissue market, as penetration and consumption per
capita of retail tissue in the country were still deemed to be low over the review period. Due to
economies of scale, the competition amongst leading players of retail tissue was very intense
up to 2016.
 The company converts paper, which is produced by its sister company Grace Paper, into
tissue with various brands including Tessa, Multi and Dynasty, in its manufacturing facilities in
the country. In addition to those brands, the company also manufactures tissue for Carrefour,
which products ranging from boxed facial tissues to toilet paper.
 The company offers a wide product portfolio comprising different brands, namely Tessa for
premium products, Multi for standard-priced products, and Dynasty for the lower-end
products. Nonetheless, as prices of raw materials are growing, price differences between
premium and standard products are becoming narrower, especially as these premium
products are undergoing periodic price discounts in collaboration with major retailers.
 The company has been innovative in terms of launching its Tessa brand in Ecoplas
packaging, which is biodegradable, in 2012. Most developments amongst its retail tissue
products concern the packaging, rather than the contents, which remain standard in terms of
quality. In 2016, GKU launched another eco-friendly tissue, Tessa Travel Pack Eco-friendly
Tissue containing 50 2-ply sheets.

Summary 2 Graha Kerindo Utama PT: Competitive Position 2016

Product type Value share Rank
Tissue and hygiene 1.4% 8
Sanitary protection – –
Nappies/diapers/pants – –
Adult incontinence – –
Wipes – –
Retail tissue 27.9% 1
Paper towels 8.8% 3
Paper tableware 23.1% 3
Facial tissues 24.2% 2
Toilet paper 31.6% 1
Source: Euromonitor International from company reports, company research, trade sources, trade interviews

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