Wilmar eyes Indonesia's consumer flour market in 2012

Wilmar International , the world's largest listed palm oil company, plans to enter Indonesia's consumer flour market, possibly in 2012, which will intensify the competition in the country, sources familiar with the plan told Reuters. 

Wilmar might use flour mills owned by the unit of Malaysia's PPB Group in Indonesia and use its own distribution network to sell the flour, said one of the sources, who declined to be named because of the sensitivity of the plan. 

Wilmar was not immediately available for comment. 

PPB's unit, FFM Berhad, has a milling capacity of around 1,000 tonnes per day and the group plans to spend $46 million to double its flour production capacity in Indonesia and Malaysia over the next two years, state news agency Bernama said. 

Wilmar recently bought a 20 percent stake in FFM. 

Indonesia's flour market is dominated by Bogasari Flour Mills, a unit of instant noodle maker Indofood Sukses Makmur , which has a total flour milling capacity of 15,000 tonnes per day. Source: Reuters