Calculated risk takes Pt. “Ratutex” to the top
With around 235 million inhabitants, Indonesia numbers among the most populous countries on
Earth. The island nation has rich traditions in the textiles field and above all, was formerly best
known for its cloth coloured using the batik technique. Today, Indonesia’s textile industry is of
international standard and, with the help of European machinery, many companies are active in the
export market.
This description also applies to the Pt. Kurnia Rau Kencana Company, called “Ratutex”, which is
located outside Jakarta in Jatiluhur, Jawa Barat. This family enterprise is headed by Paulus Kusnadi
(Fig. 1). CEO Kusnadi (34) is married and the father of two children. He regards his work as a
personal challenge, “The textile market is demanding, but offers great promise and positive
perspectives as in Indonesia, we have an excellent domestic market.”
Milestones
Ratutex was founded in 1982 in Bandung, a traditional Indonesian textile centre, and currently
employs around 200 people, who produce 200 t of knits monthly. The question is what have been
the most important milestones in the company’s history?
Paulus Kusnadi, “Things began in Bandung in 1982, but in 1988, Indonesia suffered an economic
crisis in the course of which many local manufacturers moved their production capacity to the Far
East, but we remained. For a long time we only produced knits and during 1999 and 2000, we
purchased 200 circular knitting machines. Unfortunately, a further crisis occurred in 2002 and both
the market and sales declined. In general, there was simply a surplus of goods in the market, which
meant that prices came under pressure and were correspondingly poor. We were faced with the
choice of closing, or taking up the gauntlet. We opted to go for it, but needed considerable courage
to develop our own dyehouse. However, our success has demonstrated the probity of this decision
and now we number among the best and since January 2005 are in operation at this location with
the new production plant.”
100% knits
The company exclusively produces knits, consisting of 90% pure cotton and 10% cotton with
elastane. 30% of Ratutex products are used in the underwear sector and 70% in the sports and
leisurewear area. The company has its own creative department, which of great importance to the
enterprise. Three people are permanently concerned with the development of new products. Paulus
Kusnadi, “Our customers, who are purely exporters, are constantly looking for something new. We
follow the fashion trends very closely and visit trade fairs, in order to be aware of the latest
developments. In the near future, we wish to bring products onto the market, which have been dyed
using the “Spectra-Dyeing” method.
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The market
Paulus Kusnadi says that his current best seller is an elasticated product consisting of a blend of
viscose and elastane. He is convinced that demand is set to rise further and says that there are no
market problems. On the contrary, “At the moment, we cannot accept every order as we are
working at full capacity. As opposed to the past two years, things have improved very greatly. For a
long time, all export business went to China, but this has now changed. Indonesia is a large nation
and also has an excellent domestic market. Accordingly, in the past there was little exporting, but
now we wish to alter this situation.”
In the past, Ratutex did not attend trade fairs as an exhibitor, as the company worked exclusively
for Indonesian exporters, however, in future the company intends to attend textile fairs in its own
right, in order to expand its clientele. In your view, has the market altered in the past 5-10 years?
“The market has undergone an enormous transformation. Until 1995, the orders more or less
arrived automatically, but in recent years this has changed radically. Our current success is not a
matter of course and we must be constantly on the ball and offer a sales operation that is both
efficient and suited to market needs. Prices have also risen recently.”
Massive increase in efficiency
The company machine pool consists exclusively of European makes. Apart from Monforts (D)
driers and Mayer & Cie. (D) knitting machines, the main items are a Swiss “Contexxor”
conditioning plant (Fig. 2) from Xorella AG, the world leader in the field of yarn and weave
conditioning equipment, and an aerodynamic “Airflow AFE” dyeing machine from THEN
Maschinen GmbH, Schwäbisch Hall (D).
The experience gathered with this machinery has proved to be extremely positive. Paulus Kusnadi,
“Our modern European machinery has enabled us to markedly improve the efficiency of our
production. We find yarn conditioning to be especially effective, “Contexxor” conditioned yarns
having helped us to raise the output of single jersey in various qualities by at least 33%, which is a
huge production increase. As a result of yarn treatment, we have far fewer thread breaks. Moreover,
the levels of needle breakage have also been slashed, which for us is a factor of equal importance.
This all adds up to the aforementioned growth of 33% and more in the production area.
And what are your impressions of the dyehouse?
Paulus Kusnadi, “Equally positive. Xorella and Then have an excellent, Indonesian representative
in the shape of Pt. Primatek Multindo, which offers us constant support. The THEN “Airflow
AFE” dyeing machine (Fig. 3) has functioned perfectly ever since dyehouse operations started. The
aerodynamic system is ideal for our high-quality production and apart from the low liquor ratio; we
have been able to make major savings with regard to dyestuffs, water, chemicals, additives and
salts. For example, we have been able to cut water consumption per kilogram of dyed material
from 150 l to 35 l, which is truly sensational.”
This is all the more significant, as Ratutex operates its own wastewater treatment plant (Fig. 4).
As Paulus Kusnadi notes with some pride, “Water is also a precious commodity in Indonesia. We
take our water from a nearby reservoir and after use it is treated in the company recycling plant. I
should also add that following treatment, the water is of far higher quality than it was upon arrival.”
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Expectations exceeded
The THEN “Airflow AFE” has been in operation since January 2005 and the Xorella “Contexxor
Compact” since June 2005 (Fig. 5). Paulus Kusnadi is extremely satisfied with the results. Indeed,
his expectations has been entirely fulfilled and even exceeded, “The machines and plant mean that
our production is very flexible, which is most important for both us and our direct customers, who
work almost exclusively in the export field. Furthermore, we can rely totally on the local Then and
Xorella representative. This combination furnishes a most positive picture and facts and figures
that say it all. Therefore, I would certainly buy these machines again.”
A leading position
Today, Ratutex is regarded as a leading Indonesian company and the question arises as to how
Paulus Kusnadi accounts for this fact, “Our machine pool is entirely European in origin, operations
are fully automated and we educate our employees most carefully. Every two years, we send our
staff to Europe for further training, as European machinery is useless if the staff cannot operate and
use it in optimum fashion.”
And how does he intend to retain this top market position? Paulus Kusnadi, “With excellent
products and first class service. We want to be and must always be the best.”
Captions
Fig. 1: Paulus Kusnadi, the Ratutex Managing Director: “The global textile market is demanding,
but offers great promise and positive perspectives. Moreover, in Indonesia, we have an excellent
domestic market.”
Illustration: Fong’s Industries Co. Ltd.
Fig. 2: “Contexxor” conditioned yarns have helped to raise the output of single jersey in various
qualities by at least 33%. Conditioning has reduced both thread and needle breaks, which has
resulted in this huge production increase.
Illustration: Fong’s Industries Co. Ltd.
Fig. 3: THEN “Airflow AFE” dyeing machines employ an aerodynamic system. Apart from a low
liquor ratio, Ratutex has been able to make major savings with regard to dyestuffs, water,
chemicals, additives and salts. Accordingly, water consumption per kilogram of dyed material has
been cut from 150 l to 35 l.
Illustration: Fong’s Industries Co. Ltd.
Fig. 4: Ratutex operates its own wastewater treatment plant and after recycling, “The water is of far
higher quality than upon arrival.”
Illustration: Fong’s Industries Co. Ltd.
Fig. 5: Using the Xorella “Contexxor Compact”, knits can be conditioned to the standard read
moisture levels.
Illustration: Fong’s Industries Co. Ltd.
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For more information, please contact:
Jürg Rupp
Director Corporate Relations and Communications
Fong’s Industries Co., Ltd.
Hong Kong Headquarters
8/F., 22-28 Cheung Tat Road
Tsing Yi, Hong Kong
Tel: ++852 2497 3300
Fax: ++852 2432 2552
http://www.fongs.com
European Office
Hardstrasse 41
CH-5430 Wettingen/Switzerland
Tel: ++41 56 437 20 20
Direct: ++41 56 426 71 31
Fax: ++41 56 426 02 56
e-mail: rupp@fongs.com