PT Gudang Garam
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| Gudang Garam, Tbk. | |
|---|---|
| Type | Tobacco industry/Public (JSX : GGRM) |
| Founded | Tjoa Ing Hwie (1958) |
| Headquarters |  Kediri, Indonesia |
| Key people | Rachman Halim, CEO |
| Revenue | ▲ Rp 20,512.18 billion (Q3 2006)[1] |
| Net income | ▲ Rp 900.31 billion (Q3 2006)[1] |
Gudang Garam (Indonesian for "salt warehouse") was founded on June 26, 1958. It is salutary to reflect that one of the most successful tobacco companies in Indonesia today should have been started less than fifty years ago by a man of such humble origins as Tjoa Ing Hwie or Tjoa Jien Hwie, which later changed his name to Surya Wonowidjoyo [1].
In his late twenties, Ing Hwie got his big break when his uncle offered him a job working with tobacco and sauce at his kretek factory Cap 93. Cap 93 was one of the most famous kretek brands in East Java. Hard work and diligence was soon rewarded by promotion to Head of Tobacco and Sauce and eventually led to Ing Hwie becoming a company director.
Ing Hwie left Cap 93 in 1956 taking fifty employees with him. He immediately started buying land and raw materials in Kediri and soon after began producing his own klobot kretek which he marketed under the brand name Inghwie. Two years later Ing Hwie re-named and registered his company as Pabrik Rokok Tjap Gudang Garam and a legend was born.
The story behind the name "Gudang Garam" deserves a special mention. One night, Ing Hwie had a dream in which the old salt warehouse which stood across the way from Cap 93 featured prominently. Subsequently, Sarman, one of the original fifty employees who had followed Ing Hwie when he left Cap 93, advised Ing Hwie to put a picture of the warehouse on every packet of his kretek to secure good fortune. Ing Hwie thought this was a good idea and asked Sarman to design the logo.
Gudang Garam grow rapidly and by the end of 1958 it had 500 employees producing over 50,000,000 kretek annually. By 1966, after only eight years in production, Gudang Garam had grown to be the largest kretek factory in Indonesia with an annual production of 472 million sticks.
By 1969, Gudang Garam was producing 864 million sticks a year and was indisputably the largest kretek producer in Indonesia.
In 1979 Ing Hwie completely renovated Gudang Garam's production system, ordered thirty rolling machines and developed a new formula for his machine-made kretek.
Since the Asian economy crisis in 1998, Gudang Garam has lost half of its market share from nearly 50% to nowadays at only less than 25%.
Despite being a relative latecomer to the game of kretek, Gudang Garam was now clearly one of the top three producer of kretek in Indonesia and one of the top ten largest cigarette manufacturers in the world.
[edit] Badminton Club
Gudang Garam owns one of the top five badminton clubs of Indonesia. Suryanaga Gudang Garam is based in the capital city of East Java, Surabaya.
