Friday, May 21, 2010

CT Corp expands in mini market Sector

CT Corporation (formerly known as the Para Group), through Trans Ritel, is ready to enter the convenience store-format mini market sector starting next year.
Previously, the company, own by tycon Chairul Tanjung, has expanded its business to the hypermarket sector by acquiring a 40% stake in Carrefour Indonesia.
The Trans Ritel-owned mini-markets will operate in all big cities nationwide under partnerships with the local governments.
The convenience store-format mini market, would be under a separate management from Carrefour and be managed by Trans Ritel.
The mini-market business could not be under the management of Carrefour since there were still foreign investors in Carrefour.
In Presidential Regulation 111/2007, the government allows foreign investors to control 100% shares in supermarket, department store, hypermarket, and hypermarkets of sizes of up to 1,200 square meters.
In the meantime, the investment negative list (DNI) covers mini-market and convenience store of sizes of up to 400 square meters as sectors barred from having foreign investors.
Convenience store is a mini market-like store offering daily snacks, such as candy, ice cream, cigarette, newspaper, magazine, or other products. In some places, convenience stores often sell wholesale products. Some of convenience store players are the Modern Group-owned 7-Eleven and Circle K.
Trans Retail target to open at least 10,000 mini-markets in the next ten years. In addition to operate the mini-markets on our own, the company will franchise some of the mini-markets.
In mid-April, the Para Group through Trans Corp acquired PT Carrefour Indonesia for IDR3 trillion.
The acquisition of a 40% stake in Carrefour makes Chairul Tanjung-owned business group the biggest shareholder. Other shareholders in Carrefour are Carrefour SA (39%), Carrefour Nederland BV (9.5%), and Onesia BV (11.5%).
The sale of shares in PT Carrefour Indonesia by the Carrefour Group to Chairul was once touted as a disguise for Carrefour's business, which often met problems, such as the recent conflict with the Business Competition Supervisory Commission (KPPU) following Carrefour's acquisition of a 75% stake in PT Alfa Retailindo Plc in January 2008.

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