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Uni-Charm Indonesia (UCID IJ) is a local subsidiary of Japan’s Unicharm Corporation - one of the largest baby diaper manufacturers in the world.
The Indonesian subsidiary was set up as a JV between Unicharm Corporation and local conglomerate Sinar Mas, which is run by the Widjaja family.
Uni-Charm Indonesia is an illiquid stock. It’s only suitable for personal accounts at the present point in time. Trading volumes were decent after the IPO in 2019 but unfortunately, they have slowed to a trickle.
It’s a growth company though. Indonesian penetration rates for baby diapers and feminine care products are only ~20% of those in Japan. So growth could continue at Euromonitor’s projected 10% rate for years to come - if not for decades to come. That’s why you should pay attention.
The company’s main business is selling baby diapers and wet wipes under the “MamyPoko” brand name. It also sells feminine care products such as sanitary napkins under the “Charm” brand name. In the adult diaper segment, it uses the brand name “Lifree”. The company has a 40-50% market share in Indonesia across its key segments.
In 2020, Kimberly-Clark acquired Uni-Charm Indonesia’s competitor “Softex” for US$1.2 billion. At the time, Softex had total revenues of US$420 million, which means that the sales transaction multiple was roughly 2.9x.
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