Features - News
 
04 April 2005  ~ The Star
By C.S. Tan
Ingress hopes to repeat its Thai success story in Indonesia

These are gratifying times for Ingress Corp Bhd. It has proved its mettle in Thailand where it is operating profitably. It has now set up shop in Indonesia. Star Biz associate editor C.S. Tan interviews executive vice-chairman Rameli Musa on Ingress' progress. 

STARBIZ: Was your business in Thailand more profitable than your business here? 

Rameli Musa: Last year, our Thai operations overtook the (earnings) contribution from the Malaysian side.  

 

StarBiz: Who are your major customers in Thailand? 

Rameli: GM Isuzu, Mazda, Mitsubishi and Honda. By the end of this year, Honda will be our biggest customer by revenue. But in terms of units of car sets, it may be GM Isuzu.  

 

Rameli Musa says Ingress is optimistic of the Indonesian market in the long run.

StarBiz: What new contracts will generate more turnover this year? 

Rameli: The new factory we are building in Ayuthia to supply parts for a new Honda model will be ready by year-end. Now we are supplying parts for the Honda City, Accord and Jazz.  

 

StarBiz: Why are you building your third factory in Thailand in Ayuthia? 

Rameli:The Honda plant is there. It's now a big customer. Our existing two factories are in Rayong. That's where Mazda's plant is. Mazda was our first customer in Thailand.  

 

StarBiz: What's the state of the auto market in Thailand? 

Rameli: They produced 930,000 vehicles last year. This year, they've estimated a total industry volume (TIV) of 1.1 million vehicles and of that, 40% would be exported. Growth would depend on the domestic TIV and the volume the carmakers export.  

 

StarBiz: In your results announcement, why did you say your sales volume may be reduced in Malaysia this year? 

Rameli: We are just being cautious over the new car policy that will be announced in June. It could lead to more imports of completely built-up cars.  

 

StarBiz: Who is your biggest customer in Malaysia? 

Rameli: It's Perodua. We're a Tier-One supplier to them. We started supplying doors for the Kelisa at the end of last year. We'll have the full (financial) impact of that this year.  Perodua's Asean export model will kick in, in May. This is Daihatsu's only plant in the Asean area. (Daihatsu is Perodua's manufacturing partner).  

StarBiz: Does your technical partnership with Katayama Kogyo prevent you from expanding into certain markets? 

Rameli: We can expand anywhere in Asia-Pacific, outside Japan and South Korea. Katayama concentrates in North America. Europe is open to both of us. We negotiated this on day one. It's important to do that. Otherwise, it can become very complicated.  

 

StarBiz: Did Ingress get its start from Proton or Perodua? 

Rameli: We started with Proton in 1993. After three years, we went to Thailand. We prepared for (the opening of) Afta (Asean Free Trade Area). We didn't know Afta would be deferred, so we were early in going to Thailand.  

 

StarBiz: How are the operations in Indonesia? 

Rameli: We have orders from Suzuki and Mitsubishi. The contracts are initially small but that'll increase. Suzuki has made Indonesia its manufacuring centre for the Asean region. It will also be exporting cars from there to Malaysia.