Pecca to venture into Indonesia via 80% stake in Gemilang Maju Kencana

KUALA LUMPUR (Nov 1): Automotive leather upholstery maker Pecca Group Bhd will be making its physical debut in Indonesia, which is one of the biggest automotive markets in Southeast Asia.

Chief executive officer Foo Ken Nee said the company is set to have a physical footprint in Indonesia, which is selling more cars than any other Southeast Asian market, by acquiring PT Gemilang Maju Kencana (GMK), an established upholstery leather wrapping and car seat cover manufacturer.

“Indonesia is expected to be an important engine of growth for Pecca, as it strives to enlarge its foreign presence in the automotive industry,” he said.

On Monday (Oct 31), Pecca’s wholly-owned subsidiary Pecca Leather Sdn Bhd signed a memorandum of understanding (MOU) with GMK’s shareholders to acquire an 80% interest in GMK, which is associated with Indonesia’s MPI Group of Companies.

Pecca signed the MOU with GMK’s shareholders PT Multi Berjaya Asindo (61%), CSC Automotive Sdn Bhd (22%), Tan Kim Cheang (16%), and Herny Pramana (1%).

Pecca is expected to inject 2.4 billion rupiah (RM726,000) out of the total proposed injection of three billion rupiah.