Pecca Group completes acquisition of 80% stake in Indonesia’s GMK

Pecca Group Bhd, an automotive upholstery supplier, has successfully concluded the acquisition of an 80% stake in PT Gemilang Maju Kencana (GMK), a supplier of upholstery leather wrapping and seat covers to the Indonesian automotive industry.

The acquisition was officially announced by Pecca on March 10, 2023.

Through its wholly-owned subsidiary, Pecca Leather Sdn Bhd (PLSB), the company signed shares transfer agreements with PT Multi Berjaya Asindo, CSC Automotive Sdn Bhd, and Tan Kim Cheang to acquire an 80% equity interest in GMK.

The completion of the acquisition was contingent upon meeting regulatory requirements, and it received approval from the Minister of Law and Human Rights of the Republic of Indonesia for the transfer of shares to PLSB.

GMK, affiliated with Indonesia’s PT Multi Pratama Interbuana Group (MPI), specialises in providing upholstery leather wrapping and seat covers to the Indonesian automotive sector.

MPI, an industrial manufacturing group based in West Java, was established in 1998 and offers industrial automation services to automotive and electronics companies, as well as producing plastic injection molds for the automotive and electronics supply chain.

In a statement today, Pecca Group’s CEO Foo Ken Nee said the acquisition represents a significant milestone in their international expansion strategy.

He highlighted the immense potential of Indonesia’s automotive market, with its large population of 281 million people and the highest vehicle sales figures among Southeast Asian countries.

According to Fitch Ratings, vehicle sales in Indonesia are projected to reach one million units in 2023. In March 2023 alone, the country recorded monthly vehicle sales of 100,000 units, surpassing Malaysia and Thailand with approximately 80,000 units each. Indonesia also boasts a thriving vehicle export business, with the government forecasting exports of 400,000 to 500,000 units in 2023.

“Our investment in GMK will expedite our establishment in this highly promising market,” added Foo.

Pecca Group designs, manufactures, distributes, and installs upholstery for car seat covers and interior products. It serves a diverse range of automotive manufacturers such as Perodua, Proton, Nissan, Subaru, Ford, Mitsubishi Motors, Toyota, Hyundai, Peugeot, Volkswagen, Suzuki, and Isuzu.

Additionally, through their subsidiary Pecca Aviation Services Sdn Bhd, the company offers cabin interior maintenance, repair, and overhaul services to regional aviation players.

By The Malaysian Reserve

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