MIRA
INFORM REPORT
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Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. ESSENCE INDONESIA |
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Registered Office : |
Jalan Otto Iskandardinata No. 74, Jakarta 13330 |
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Country : |
Indonesia |
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Date of Incorporation : |
1956 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Flavor and Fragrances Manufacturing |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 1,920,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Correct Name of Company
P.T. ESSENCE INDONESIA
Address
Head Office & Factory
Jalan Otto Iskandardinata No. 74
Jakarta 13330
Phone - (021) 8500074
(hunting)
Fax - (021)
8190116, 8569329
Telex - 48111 IFF
JKT IA
Website - www.iff.com
Land Area - 24,600 sq.
meters
Building Space - 9,200 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation
- 1956 as N.V.
ESSENCE INDONESIA LTD.
b. 18
July 1970 as P.T. ESSENCE INDONESIA
Legal Form
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
No.
C-UM.02.01.9070.TH.2006
Dated 01 June 2006
Company Status
Domestic Investment (PMDN) Company
Permit by the Government
Department
a. The Department of Trade and Industry
No. 28/M/SK/I/1970
Dated 24 January 1970
b. The Capital Investment Coordinating Board
- No. 911/III/PMA/1997
Dated 10 July 1997
- No. 08/II/PMA/1998
Dated 13 January 1998
- No. 107/III/PMA/2002
Dated 28 January 2002
Related Company
a. INTERNATIONAL
FLAVORS AND FRAGRANCES Inc., of the USA
b. Etc.
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital
: Rp. 211,910,000.- (US$. 650,000)
Issued Capital : Rp. 211,910,000.- (US$. 650,000)
Paid up Capital : Rp. 211,910,000.- (US$. 650,000)
Shareholders/Owners :
a. INTERNATIONAL FLAVORS AND
FRAGRANCES Inc. of the USA -
Rp. 211,900,000.- (US$. 649,970)
Address : 421 West
Fifty-Seventh Street
New York
10019, USA
b. Mr. Drs. Kurnia Irwansyah Rais
of Indonesia -
Rp. 10,000.- (US$. 30
Address : Jl. Blitar No. 12, Menteng
Jakarta Pusat
BUSINESS ACTIVITIES
Lines of Business:
Flavor and Fragrances Manufacturing
Production Capacity
Flavors and Fragrances – 37,000 tons p.a.
Total Investment
a. Equity Capital - US$.
650,000.-
b. Re-invested
Profit - US$. 33,700,000.-
c. Total
Investment -
US$. 34,350,000.-
Started Operation
1956 when it was
named N.V. ESSENCE INDONESIA Ltd.
Brand Name
None
Technical Assistance
International Flavors and Fragrances Inc., of the USA.
Number of Employee
165 persons
Marketing Area
Domestic -
80%
Export - 20%
Main Customer
Overseas Buyers in
USA, Philippines, Thailand, Japan and other European countries
Domestic Buyers :
PT. Coca Cola Indonesia, PT. Indofood Sukses Makmur, PT. Wing Surya, etc.
Market Situation
Competitive
Business Trend
Growing
BANKER, AUDITOR & LITIGATION
Bankers :
a. P.T. Bank MANDIRI Tbk
Jl. Imam Bonjol No. 61
Jakarta Pusat
b. CITIBANK N.A.
Jl. Jend. Sudirman Kav. 1
Kalarta Selatan
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 110.0
billion
2005 – Rp. 125.0
billion
2006 – Rp. 140.0
billion
2007 – Rp. 82.0
billion (January – June)
Net Profit
(estimated) :
2004 – Rp. 1.0 billion
2005 – Rp. 1.3 billion
2006 – Rp. 1.6 billion
2007 – Rp. 0.9 billion (January – June)
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of
Management :
President Director -
Mr. Drs. Kurnia Irwansyah Rais
Director -
Mr. Christopher James Osborne
Board of Commissioners :
President Commissioner -
Mr. Dennis James Wall
Commissioner - Mr. Daniel Sassoon Joseph
Signatories :
President
Director (Mr. Drs. Kurnia Irwansyah Rais) or Director (Mr. Christopher James
Osborne) which must be approved by Board of Commissioners.
CAPABILITIES
Management
Capability :
Good
Business Morality
Good
Credit Risk
Below Average
Credit Recommendation
Credit can be proceeded normally
Proposed Credit Limit
Moderate Amount
Maximum Credit Limit
US$ 1,920,000.- on the 90 days of payments
OVERALL PERFOMANCE
Originally named N.V. ESSENCE INDONESIA, the company was
established in 1956 with legal status of N.V. (Naamloze Vennootschap)
equivalent with P.T. (Perseroan Terbatas) or Limited Liability Company. In July
1970 the company name was changed to P.T. ESSENCE INDONESIA (P.T. EI). Its
notarial act subsequently underwent further revisions. By the term of the
notarial act revision 1970, the authorized capital was set at US$ 650,000.-
entirely issued and paid up. The shares are wholly controlled by INTERNATIONAL
FLAVORS & FRAGRANCES Inc., of New York, USA. In December 1997 the
authorized capital was converted from US$ to Rp 211,910,000.- and by the same
time Mr. Drs. Kurnia Irwansyah Rais joined in as a new shareholder of P.T. EI. The deed of amendment was made by Mr.
Singgih Susilo, SH., a public notary in Jakarta under Company Registration
Number C-UM.02.01.9070.TH.2006, dated June 01, 2006.
P.T. EI is a foreign capital investment company (PMA) dealing with flavor, fragrance and aroma chemical industry. Its plant is located at Jalan Otto Iskandarwinata No. 74, East Jakarta, on a land of some 1.5 hectares. The plant has been operating since 1956 with a production capacity of 12,000 tons flavor, fragrance and aroma chemical per year, with an investment of US$ 650,000. In January 1998 it was licensed for plant expansion to pro-duce 25,000 tons flavor, fragrance and aroma chemical per year. Mrs. Fia, a staff of the company said to our inquiry that some 70% of the products is marketed locally to a number of food and drink industries like P.T. COCA COLA, P.T. INDOFOOD SUKSES MAKMUR, etc. The other 30% is exported to the USA, Philippines, Thailand, Japan and other European countries. P.T. ET belongs to a medium sized company of its kind in the country.
The demand for flavor and fragrance had been declining as from the mid of 1997 until the early of 2000 in line with the weakening of the industries consuming the above products as the impact of the economic crisis striking Indonesia as from the mid of 1997. Later as from the mid of 2000, the demand growth started rising by 8% to 10% per annum within the last three years. Market competition is very tough on account of some 27 other similar companies operating in the country among other are P.T. MANE INDONESIA, P.T. ISLANDSUN INDONESIA, P.T. JUTARASA ABADI, P.T. MULTIFRAGRANCE, P.T. QUEST INTERNATIONAL INDONESIA, etc. Business position of P.T. EI is quite favorable for it has controlled a wide marketing chains and customers in several major cities in the country.
Until this time P.T. EI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 110.0 billion rose to Rp. 125.0 billion in 2005 increased to Rp. 140.0 billion in 2006 and projected to go on rising by at least 7% in 2007. The operation in 2006 yielded an estimated net profit of at least Rp. 1.6 billion and the company has an estimated total networth of at least Rp. 60.0 billion. We observe that P.T. EI is supported by a foreign company which has financially fairly strong behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).
The management of P.T. EI is headed by Mr. Kurnia Irwansyah Rais (49), a well-experience businessman in flavors and fragrances industry and trade. The management is also assisted by Mr. Christopher James Osborne as Director and a number of professionals from its principal of IFF Group of the USA. A wide business relations among private companies at home and overseas has been maintained properly. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.
P.T. ESSENCE INDONESIA is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)