MIRA
INFORM REPORT
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Report Date : |
19.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
P.T. SOUTH PACIFIC VISCOSE |
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Registered Office : |
Sampoerna Strategic Square Tower B, 16th Floor, Jalan Jend.
Sudirman Kav. 45-46, Jakarta 12910 |
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Country : |
Indonesia |
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Date of Incorporation : |
14 .01.1978 |
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Com. Reg. No.: |
No.
C-19924.HT.01.04.TH.2004 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturer of Viscose
Fibre, Sulphuric Acid, Carbon
Bisulphide, and Sodium Sulphate |
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$ 35,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Correct Name of Company
P.T. SOUTH PACIFIC VISCOSE
Address
Head Office
Sampoerna Strategic Square Tower B, 16th Floor
Jalan Jend. Sudirman Kav. 45-46
Jakarta 12910 - Indonesia
Phones - (021) 5771630 (hunting)
Fax. - (021) 5771640
Email - spv-jkt@cbn.net.id
Website - http://www.pt-spv.com
Building Area - 33 storey
Office Space - 1200 sq. meters
Region - Commercial
Status - Rent
Factory
Desa Cicadas, Cilangkap
Purwakarta, West Java
Indonesia
Phones -
(0264) 200636, 200637, 201414
Fax.
- (0264) 200738
P.O. Box - 11
PWK
Land Area - 12.0 hectares
Building Space - 4.8
hectares
Region - Industrial Zone
Status - Owned
Date of Incorporation
14 January 1978
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
No.
C-19924.HT.01.04.TH.2004
Dated 06 August 2004
Company Status
Foreign Investment (PMA) Company
Permit by the Government Department
a. The President of the
Republic of Indonesia
No. B-40/Pres/11/1977
Dated 28 November 1977
b. The Capital Investment Coordinating Board
- No. 113/VI/PMA/1980
Dated
21 November 1980
- No. 470/III/PMA/1991
Dated 30
July 1991
- No. 741/II/PMA/1994
Dated 6
May 1994
- No.89/II/PMA/1999
Dated
18 May 1999
- No.673/II/PMA/2001
Dated
05 June 2001
c. The Department of Industry
No. 267/DJAI/IUT/III/PMA/VII/88
Dated 12 July 1988
Related Companies :
a. LENZING A.G.
(Industrial Chemical Manufacturing)
b. ZENITH Steel Pipes and Industries Ltd. (Steel
Making)
c. AVIT Investment Ltd. (Investment Holding)
d. PENIQUE S.A. (Investment Holding)
e. TUNGABHADRA Industries Ltd. (Textile Milling)
f. P.T. PURA GOLDEN LION (Trading)
g. P.T. INDO BHARAT RAYON (Viscose Industry)
h. Etc.
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital :
Rp. 290,000,000,000.-
Issued Capital :
Rp. 72,500,000,000.-
Paid up Capital :
Rp. 72,500,000,000.-
Shareholders/Owners
:
a.
LENZING A.G. of Austria -
Rp 30,435,265,000.-
b.
AVIT INVESTMENT Ltd. of Turks
& Caicos Islands British West India - Rp 22,605,914,000.-
c.
PENIQUE SA of Panama - Rp 8,678,356,000.-
d. P.T. PURA GOLDEN
LION of Indonesia - Rp 8,643,664,000.-
e. Mrs.
Saparsih Noor Luddin -
Rp 1,656,703,000.-
f. GODAVARI
CORP. LTD. of India - Rp 480,098,000.-
BUSINESS ACTIVITIES
Lines of Business:
Viscose Fibre, Sulphuric
Acid, Carbon Bisulphide, and Sodium
Sulphate Manufacturing
Production Capacity :
Initial Units
a. Viscose Rayon Staple Fibres - 125,000 tons p.a.
b. Anhydrous Sodium Sulphates - 70,000 tons p.a.
c. Carbon Bisulphites - 18,150 tons p.a.
d. Sulphuric Acids - 71,800 tons p.a.
e. Filament Yarns -
15,000 tons p.a.
Expansion Units
a. Viscose Rayon Staple Fibres -
15,000 tons p.a.
b. Sodium Sulphate - 10,500 tons p.a.
c. Sulphuric Acid (H2SO4) -
13,500 tons p.a.
Total Investment :
Initial Units
a. Equity Capital
- US$ 36.2 million
b. Reinvested Profit -
US$ 27.0 million
c. Loan Capital - US$ 188.8 million
d. Total Investment
- US$ 252.0 million
Expansion Units
a. Equity Capital - ---
b. Loan Capital -
US$ 30.0 million
c. Total Investment - US$ 30.0 million
Started Operation :
1982
Brand Name :
SPV
Technical Assistance :
LENZING A.G., of Austria
Number of Employee :
1,465 persons
Marketing Area :
Domestic
(Local) - 70%
Export - 30%
Main Customers :
a. Textile Industry
such as P.T. HADTEX, P.T. PUJITEX, P.T. TRISULATEX, P.T. SANDRATEX,
P.T. PANASIA INDO
SYNTEX, etc.
b. Overseas Buyers in
China, Vietnam, Bangladesh, Srilanka, Malaysia, Australia, etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. INDO BHARAT RAYON
b. P.T. TOBA PULP LESTARI Tbk.
c. Etc.
Business Trend :
Growing
BANKER, AUDITOR & LITIGATION
Bankers :
a. STATE BANK OF INDIA, Singapore
10-01 DBS Building, 6 Shenton Way
Singapore
0106
b. American
Express Banking Corp.
Hong Kong
Branch
28/F
Connaught Centre
Central
Hongkong
c. American
Express Banking Corp.
ARTHALOKA Building
Jalan M.H. Thamrin No. 2
Jakarta
Pusat
d. DEUTCHE
BANK LTD.
Jakarta
Branch
Jalan
Imam Bonjol No. 80
Jakarta
Pusat
Auditor :
Prasetio, Sarwoko and Sandjaja, a public accountant
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales :
2004 – Rp. 2,017.4 billion
2005 – Rp. 2,265.8 billion
2006 – Rp. 2,570.0 billion
2007 – Rp. 2,890.0 billion
2008 – Rp. 3,120.0 billion
Net Profit :
2004 – Rp. 158.3 billion
2005 – Rp. 61.2
billion
2006 – Rp. 69.0
billion
2007 – Rp. 77.0
billion
2008 – Rp. 82.0
billion
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Guenther Krohn
Directors - a.
Mr. Ian Colley
b. Mr. Gerhard Danninger
c. Mr. S. Budi
d. Mr. Darmawan Alim
Board of Commissioner :
President Commissioner -
Mr. Thomas M. Fahnemann
Commissioners -
a. Mr. Arun Jaim
b. Mr. Y.V. Birla
c. Mr. Manfred Schenner
d. Mr. Steven M. Small
e. Mr. Kunrat Hadi Tanubrata
f.
Mr. Peter Untersperger
Signatories :
President
Director (Mr. Guenther Krohn) or one of the Directors (Mr. Ian Colley, Mr. Gerhard
Danninger, Mr. S. Budi and Mr. Darmawan Alim) which must be approved by Board
of Commissioners.
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with
monitor
Proposed Credit Limit :
Small amount –
periodical review
Maximum Credit Limit :
US$ 35,000,000 on 90
days of payments
OVERALL PERFOMANCE
The company was established in Jakarta in 1978 with an authorized capital of US$ 6,500,000.- issued capital of US$ 1,300,000.- of which US$ 130,000.- was paid-up. Founders and original shareholders of P.T. SOUTH PACIFIC VISCOSE (P.T. SPV) were TUNGABHADRA Industries Ltd., of India, SNIA Viscose SPA of Italy, INTERNATIONAL Textile Corporation Ltd., of Hong Kong and the late Mr. Ali Noor Luddin, an indigenous businessman. In 1984, the authorized capital was increased to US$ 11,500,000.- wholly issued and paid-up. On the same occasion SNIA Viscose SPA and INTERNATIONAL Textile Corporation Ltd., pulled-out and replaced by CHEMIE FASSER LENZING AG., of Austria, ZENITH Steel Pipes Industries Ltd., of India, AVIT Investment Ltd of Turks & Caicos Islands British West India. Meanwhile, the local partner has been replaced by P.T. PURA GOLDEN LION. In 1991, its capital has been converted into rupiah and the authorized capital was set-up at Rp. 90,000,000,000.- issued capital of Rp. 58,614,968,000.- wholly paid-up. On August 2004, its issued and paid up capital was increased to Rp. 72,500,000,000.-
It seems that 41.98% shares of P.T. SPV is controlled by LENZING AG., a member of the LENZING AG Group, a major business group of Austria, 31.18% is controlled by AVIT INVESTMENT Ltd., of Turks & Caicos Islands British West India and the rest by PENIQUE SA., of Panama (11.97%), two shareholders of Indonesia namely P.T. PURA GOLDEN LION (11.92%) and Mrs. Saparsih Noor Luddin (2.29%) and GODAVARI Corp., Ltd., of India (0.66%).
P.T. SPV is a Foreign Capital Investment (PMA) corporation engaged in viscose fibre manufacturing. Its plant is located at Desa Cicadas, Cilangkap, Purwakarta, West Java, has been operating commercially since 1982 and running well as yet. Besides, P.T. SPV has also produced by-products like sulphurid acid (H2SO4), carbon bisulphide (CS2) and anhydrous sodium sulphate, all for own needs. P.T. SPV operates 3 production lines producing 300 tons per day on the average. Its export volume comes to about 2,500 to 2,600 tons per month.
Mr. Cacuk Martakusuma, a senior marketing staff of P.T. SPV disclosed that before economic crisis, domestic market was a potential one, but since October 1997 it concentrated to overseas market and now some 30% of the products exported to P.R. China, Vietnam, Bangladesh, Srilangka, Malaysia, the Philippines, Australia, Switzerland, the USA, Argentine, Africa, Egypt, South Africa and Asia, while the rest 70% remains for local textile industries in the HADTEX Group, the PUJITEX Group, the TRISULATEX Group, the SANDRATEX Group, the PANASIA Group, etc.
We observe that the operation of the company has kept on increasing in the last two years. However, the operational cost has also been rising in line with the ascending fuel price, electric based tariff, labour wages and textile basic materials prices. Consequently, the company has gained smaller profit. However, we believe that the operation of the company will be rising slowly in the coming years.
Generally, demand for textile and textile products, including textile chemicals and raw materials has been fluctuating in the last five years. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2000 amounted to 370,3 thousand tons (US$ 4,702.6 million), to 473,8 thousand tons (US$ 4,476.7 million) in 2001, to 333,1 thousand tons (US$ 3,887.2 million) in 2002 to 339,0 thousand tons (US$ 4,037.9 million) in 2003 to 327,3 thousand tons (US$ 4,351.9 million) in 2004 to 369,5 thousand tons (US$ 4,967.0 million) in 2005 and to 399,6 thousand tons (US$ 5,608.1 million) in 2006 and 160,7 thousand ton in 2007 (January-May).
The Indonesia textile products export in 2000 amounted 1,365.1 thousand tons (US$ 3,634.1 million), declined to 1,269.5 thousand ton (US$ 3,198.9 million) in 2001, to 1,425.9 thousand tons (US$ 3,075.9 million) in 2002 to 1,307.5 thousand tons (US$ 3,064.6 million) in 2003 to 1,300.4 thousand tons (US$ 3,354.6 million) in 2004 to 1,427.3 thousand tons (US$ 3,704.0 million) in 2005 to 1,477.8 thousand tons (US$ 3,908.6 million) in 2006 and to 623.6 (US$ 1,715.5 million) in 2007 (January-May). The export volume and value of the national TPT products in 2000 to 2007 are pictured on the following table.
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Year |
Garment |
Textile
Product |
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(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
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2000 |
370.3 |
4,702.6 |
1,365.1 |
3,634.1 |
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2001 |
473.8 |
4,476.7 |
1,269.5 |
3,198.9 |
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2002 |
333.1 |
3.887.2 |
1,425.9 |
3,075.9 |
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2003 |
339.9 |
4,037.9 |
1,307.5 |
3,064.6 |
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2004 |
327.3 |
4,351.9 |
1,300.4 |
3,354.6 |
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2005 |
369.5 |
4,967.0 |
1,427.3 |
3,704.0 |
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2006 |
399.6 |
5,608.1 |
623.6 |
3,908.6 |
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2007* |
160.7 |
2,351.9 |
623.6 |
1.715.5 |
*) January – May
Source : Central
Bureau of Statistic
Economic crisis in 1997 has brought bad impact to P.T. PSV due to lack of local market demand and competition is very tight as there are two leading competitors namely P.T. INDO BHARAT RAYON and P.T. TOBA PULP LESTARI Tbk. But business position of P.T. SPV in this case is quite well for it has controlled a wide marketing network at home and abroad. Business prospect in the long run is quite promising mainly once economic recovery starts soon.
According to financial statement, the total sales turnover of P.T SPV in 2004 amounted to Rp. 2,017.9 billion with a net profit of Rp. 159.0 billion, rose to Rp. 2,265.8 billion with net profit of Rp. 61.2 billion. As per 31 December 2005 the company has total assets of Rp. 1,283.1 billion. Up to present, we have yet to acquire the financial statement of P.T. SPV as of 31 December 2006 and 2007. However, we estimated that total sales turnover of the company ini 2006 amounted to Rp. 2,570.0 billion with a net profit of Rp. 69.0 billion rose to Rp. 2,890.0 billion with a net profit of Rp. 77.0 billion in 2007 and rose again to Rp. 3,120.0 billion with a net profit of Rp. 82.0 billion in 2008.
We appraise that P.T. SPV is one of large sized viscose fibre industries in the country. So far, we did not hear that the company has been black listed by Bank Indonesia (Central Bank) or involved in detrimental cases being settled in the court.
Since December 2005, the management of P.T. SPV has been headed by Mr. Guenther Krohn (55) replacing Mr. Craig Barker as the president director. Mr. Krohn finished his study of Management Business in the USA and Australia. He used to be a technical director with more than 26 years experience in LENZING Group with various position. In his daily activities, he is assisted by four directors namely Mr. Ian Colley, Mr. Gerhard Danninger, Mr. S. Budi and Mr. Darmawan Alim. The management has a good reputation in industry and trading of viscose rayon staple fibre and other textile raw materials. The management also has wide relation with private businessmen of home and overseas as well as with the government sectors. So far, we did not hear that the management of the company has involved in fraudulent business dealing.
P.T. SPV 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.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.08 |
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UK Pound |
1 |
Rs.71.17 |
|
Euro |
1 |
Rs.66.98 |
RATING
EXPLANATIONS
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
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%)