Automotive upholstery supplier Pecca Group has announced the completion of a deal to acquire an 80% stake in PT Gemilang Maju Kencana (GMK), which supplies upholstery leather wrapping and seat covers to the Indonesian automotive industry.
In March, Pecca Group announced that its wholly-owned subsidiary Pecca Leather signed a share transfer agreement with PT Multi Berjaya Asindo, CSC Automotive and Tan Kim Cheang for the acquisition of 80% equity interest in GMK. The deal, which was subject to the fulfilment of regulatory conditions, is now deemed complete following approval from the Indonesian authorities.
GMK is associated with Indonesia’s PT Multi Pratama Interbuana Group (MPI), and its principal business activity is the supply of upholstery leather wrapping and seat covers for the automotive industry in the republic. An industrial manufacturing group based in West Java, MPI provides industrial automation services to the automotive and electronic sectors. It also produces plastic injection moulds used in both industries.
“Completing this acquisition unlocks the next chapter of our international expansion plan. Indonesia, with its massive automotive market and growing economy, promises to be a key driver of Pecca’s growth. Our stake in GMK will accelerate the process of establishing our presence in this very exciting market,” said Foo Ken Nee, CEO of Pecca Group.
He noted that Indonesia has a population of 281 million, along with the highest vehicle sales figures in the ASEAN region. Research firm Fitch Ratings expects sales of four-wheeled vehicles in Indonesia to hit one million units in 2023. The republic’s auto exports are also growing, with the government reportedly projecting exports of between 400,000 and 500,000 units this year.
Pecca styles, manufactures, distributes, and installs upholstery for car seat covers and interior products for a range of OEMs including Perodua, Proton, Nissan, Subaru, Ford, Mitsubishi, Toyota, Hyundai, Peugeot, Volkswagen, Suzuki and Isuzu. The group also provides cabin interior maintenance, repair, and overhaul services to airlines. The Bursa-listed company also exports its products to the US, Europe, Japan, Australia, New Zealand and ASEAN countries.
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