Encouraged by a discerning business intuition, hard work and support from 50 employees, late Surya Wonowidjojo determined himself to establish the Gudang Garam Cigarette Company in June 26. This home scale industry was established on a leased land of approximately 1.000 square meters located in Semampir village, Kediri. Its products were Corn Husk Cigarette (SKL) or Klobot Cigarette, and Handmade Kretek Cigarette (SKT) in four months later. 50 million sticks in total were distributed to the nearest towns such as Nganjuk, Kertosono, Blitar and Solo with the price of 1 rupiah per pack.
A production branch of SKT and SKL was opened in Gurah, 13 km Southwest of Kediri, in order to meet the increasing market demand. Everyday, about 200 workers went round-trip Gurah-Kediri by a certain train wagon upon the company expenses.
Due to the growing business, the first area of 100 square meters was bought in September and became Unit I. A new unit namely Unit II was also established in the same year.
Following its fast growing business and expansion, the company which firstly build by its so-called home industry status was changed from Private Company into a Firm. The production units were then moved from Gurah to Kediri.
The company changed its status from Firm into Limited Company (PT). The company also received a facility from the government in the form of Domestic Investment (PMDN), which enabled its continued outgrowth.
The company developed Machine-made Kretek Cigarette (SKM).
The company enlisted its share in the Jakarta Stock Exchange and Surabaya Stock Exchange which then changed its status into Public Company.
The company produced a new variant of cigarette, namely Mild Kretek, which was marked by the establishment of Gempol Production Directorate in Pasuruan, East Java.
The company’s area has expanded from only 1.000 square meters into 208 hectares located in the district and town of Kediri. The company is also developing Machine-made Kretek Cigarette production unit in Gempol, Pasuruan, East Java.