MIRA
INFORM REPORT
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Report Date : |
24.10.2008 |
IDENTIFICATION DETAILS
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Name : |
P.T.
CHAROEN POKPHAND |
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Formerly Known As : |
P.T. CHAROEN POKPHAND INDONESIA ANIMAL FEED MILL CO., LTD. |
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Registered Office : |
Jalan Ancol VIII/I, Ancol Barat |
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Country : |
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Date of Incorporation : |
07.01. 1972 |
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Com. Reg. No.: |
C-UM.02.01.4728 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Animal Feed and
Shrimp Feed Milling Plastic Bag 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$ 110.0 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Full Name of Company
P.T. CHAROEN POKPHAND
INDONESIA TBK.
A d d r e s s
Head Office & Jakarta Factory
Jalan Ancol
VIII/I, Ancol Barat
Jakarta 14430
Indonesia
P.O. Box - 83 JKT
Phones - (021) 6912501
(hunting), 6902787, 6902538,
(021) 6902567, 69005640
Fax. - (021) 6917325
Cable - POKPHAND JAKARTA
Telex - 42659 POKPHAND IA
Website - http://www.prokar.com
E-Mail - charoen@idola.net.id
Surabaya Factory
Jalan Raya
Surabaya Mojokerto Km. 19
Desa Beringin
Bendo, Taman Sidoarjo
Surabaya, East
Java
Phones -
(031) 782183, 782509
Medan Factory
Jalan Tanjung Morawa
Km. 8.5
Medan, North
Sumatra
Phones -
(061) 751678
Tangerang Factory
Jalan Raya Serang
Km. 30
Desa Cengkudu
Balaraja,
Tangerang
West Java
Warehouse
Jalan Ir. Sutami
Km. 8.5 No. 15
Tanjung Karang
Timur
Bandar Lampung
Lampung
Phones - (0721) 350041-44
Fax. -
(0721) 350045
Date of Incorporation
a. 7 January 1972 as P.T. CHAROEN POKPHAND
INDONESIA ANIMAL FEED MILL CO., LTD.
b. 8 June 1990 as P.T. CHAROEN POKPHAND
INDONESIA
c. February 1997 as P.T. CHAROEN POKPHAND
INDONESIA Tbk.
Legal Form
P.T. Tbk.
(Perseroan Terbatas Terbuka) or Public Listed Company
Company Reg. No.
The Ministry of
Law and Human Rights
No.
C-UM.02.01.4728
Dated 14 January
2003
Company Status
Foreign Investment (PMA) Company
Permit by the Government
Department
a. The
President of the Republic of Indonesia
No. B-132/Pres/II/1971
Dated 5 November 1971
b. The Capital
Investment Coordinating Board
- No. 383/III/PMA/1991
Dated 17 June 1991
- No. 299/II/PMA/2000
Dated
1 November 2000
- No. 123/II/PMA/2001
Dated 30 April 2001
Related Companies
A Member of the CHAROEN POKPHAND Group
(see attachment)
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized
Capital - Rp.
400,000,000,000.-
Issued Capital -
Rp. 140,766,917,500.-
Paid up Capital -
Rp. 140,766,917,500.-
Shareholders/Owners :
a. P.T. CENTRAL PROTEINA PRIMA - Rp
77,906,875,000.-
b. NORBAX Inc., of the USA -
Rp 22,959,125,000.-
c. CAUSEWAY DEVELOPMENT Ltd., of Hong Kong -
Rp 4,250,000,000.-
d. Government of Singapore Investment Corporation -
Rp 2,837,437,500.-
e. Morgan Stanley and Co., Ltd., of the USA -
Rp 1,408,250,000.-
f. The Publics -
Rp 31,405,230,000.-
BUSINESS ACTIVITIES
Lines of Business:
a. Animal Feed and Shrimp Feed Milling
b. Plastic Bag Manufacturing
c. Poultry Equipment Manufacturing
d. Investment Holding
Production Capacity
Initial Plant
a. Animal Feeds - 1,090,000 tons p.a.
b. Shrimp Feeds - 84,000 tons p.a.
c. Plastic Bags
- Outer Bags -
12,500,000 sheet p.a.
- Inner Bags -
12,500,000 sheet p.a.
d. Hanging Feeder Tubes - 900,000 units p.a.
e. Chicks Waters - 750,000 units p.a.
f. Egg trays - 600,000 units p.a.
g. Warehouse *) - 100,000 tons
Expansion (1998)
a. Chick Meet Raw -
4,500 tons p.a.
b. Chick Meet Frozen - 14,400 tons p.a.
c. Chick Meet Processed - 8,544 tons
p.a.
Expansion Plant
(2000)
Meet processed - 1,500 tons p.a.
Expansion Plant
(2001)
Fish Feeds -
108,000 tons p.a.
Total Investment
Initial Unit
a. Owned Capital
- Rp 60.0 billion
b. Reinvested
Profit - Rp 1.7 billion
c. Loan
Capital - Rp 100.8 billion
d. Total
Investment - Rp 162.5 billion
Expansion Unit
(1998)
a. Equity
Capital - Rp 48.6 billion
b. Loan
Capital - Rp 179.5 billion
c. Total
Investment - Rp 228.1 billion
Expansion Unit
(2000)
a. Equity
Capital - Rp --- billion
b. Loan
Capital - Rp 6.2 billion
c. Total
Investment - Rp 6.2 billion
Expansion Unit
(2001)
a. Equity
Capital - Rp --- billion
b. Loan
Capital - Rp 2.3 billion
c. Total
Investment - Rp 2.3 billion
Started Operation
1972
Brand Name
CHAROEN POKPHAND
Technical Assistance
The CHAROEN POKPHAND Group
Number of Employee
3,210 persons
Marketing Area
Domestic - 100%
Main Customers
a. P.T. CHAROEN
POKPHAND JAYA FARM
b. P.T. UDANGMAS
INTIPERWITI
c. P.T. DIPASENA
CITRA DARMAJA
d. Other the
CHAROEN POKPHAND Group members.
Market Situation
Very Competitive
Main Competitors
a. P.T. METRO FEED
INDONESIA
b. P.T. JAPFA COMFEED
INDONESIA
c. P.T. MULTI
DARANA PAKANINDO
d. P.T. MITRA
MANGGALINDO
e. Etc.,
Business Trend
Growing
BANKER, AUDITOR & LITIGATION
B a n k e r
s :
a. P.T. Bank MANDIRITbk
Wisma Bank MANDIRI
Jalan Gatot Subroto Kav. 36-38
Jakarta Barat
Indonesia
b. P.T. Bank PERMATA Tbk
Wisma Bank PERMATA
Jalan Jend. Sudirman Kav. 27
Jakarta Selatan
Indonesia
b. CITIBANK N.A.
CITIBANK Building
Jalan Jend. Sudirman Kav.
54-55
Jakarta Selatan
Indonesia
Auditor :
Yanuar Bey & Rekan, a public accountant
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp. 4.814.8
billion
2005 – Rp. 6,640.3
billion
2006 – Rp. 8,386.7
billion
2007 – Rp. 3,713.6
billion (as per 30 June)
Net Profit (Loss)
:
2004 – (Rp. 188.8 billion)
2005 – Rp. 41.2 billion
2006 – Rp. 167.1 billion
2007 – Rp. 95.0 billion (as per 30 June)
Payment Manner :
Average
Financial Comments :
Fairly
KEY EXECUTIVES
Board of Management :
President Director - Mr. Franciscus Affandy
Vice Pres. Directors -
a. Mr. T. Thomas Effendy
b. Mr. Vinai Rakphongphairoj
Directors -
a. Mr. Peraphon Prayooravong
b. Mr. Hery Tjusanto
c. Mr. Jemmy
d. Mr. Eddy Dharmawan
e. Mr. Fiece Kosasih
Board of Director :
President
Commissioner - Mr. Eddy Susanto Zaoputra
Vice Pres. Commissioners - a. Mr. Benjamin Jiaravanon
b. Mr. Jiacipto Jiaravanon
c. Mr. Jialipto Jiaravanon
Commissioners - a.
Mr. Agussalim Nasution
b. Mr. Ping
Perdana Kusuma
Signatories :
President Director (Mr. Franciscus
Affandy) or one of Vice Pres. Directors (Mr. T. Thomas Effendy and Mr. Vinai
Rakphongphairoj) or one of diectors (Mr. Peraphon Prayooravong, Mr. Hery
Tjusanto, Mr. Jemmy, Mr. Eddy Dharmawan and Mr. Fiece Kosasih) which must be
approved by Supervisory Board.
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$ 110.0 million on the 90 days of payments
OVERALL PERFOMANCE
Initially named P.T. CHAROEN POKPHAND INDONESIA ANIMAL FEED MILL Co.,
Ltd., the company was set up in 1972 with an authorized capital of US$ 1,000,000.-
and issued capital of US$ 300,000.- of which US$ 30,000.- was paid up. The
founders and original shareholders
are Mr. Sumet Jiaravanon,
Mr. Jaran Chiaravanont, Mr. Montri Chiaravanont (the three are Thai businessmen
of Chinese extraction) and Mr. Johannes Purnama Sudarma SH (an Indonesian
businessman of Chinese origin). In 1990 the company was renamed to P.T. CHAROEN
POKPHAND INDONESIA (P.T. CPI). In February 1991 the company sold out 25% of its
shares to the public through the Jakarta Stock
Exchange (BEJ). Its articles of association has subsequently
been changed for several times. In February 1997, the authorized capital was
increased to Rp. 400,000,000,000.-
issued capital to Rp. 140,766,917,500.- entirely paid-up and concurrently
a word Terbuka (Tbk) was added behind its name to comply with new law on
publicly listed company to P.T. CHAROEN POKPHAND INDONESIA Tbk.
The largest shareholder of P.T. CPIT
namely P.T. CENTRAL PROTEINA PRIMA,
is a private company whose majority
business stakes is controlled by Mr. Slamet Jiaravanon and his family members.
Mr. Jiaravanon is also founder and majority business stakes owner of the
CHAROEN POKPHAND Group, the largest business group in Indonesia in animal feed
milling and distribution. Other majority shareholder namely NORBAX Inc., is an
investment holding company of the USA.
P.T. CPIT is a Foreign Capital Investment (PMA) company dealing
with animal feed milling by managing a
plant originally located at Jalan Ancol VIII/1, Ancol Barat (North Jakarta).
Its operation has been expanding rapidly by establishing two other factories
respectively in Surabaya (East Java) and Medan (North Sumatra). Furthermore,
they also operate the same plant in Tangerang (West Java). Apart from producing
animal feed, P.T. CPIT also produces shrimp feed, plastic bag, hanging feeder
tube, chicks waterer and egg trays. P.T. CPIT's entire products is marketed
domestically under popular brandname
Charoen Pokphand. P.T. CPIT is the largest one in animal feed milling in
Indonesia today.
P.T. CPIT is
also engaged in
investment holding by
controlling 80% shares
of P.T. CHAROEN POKPHAND JAYA
FARM dealing with chicken hatcheries and breeding, 80% shares of P.T. UDANGMAS
INTIPERTIWI dealing with animal feed distribution and 64% shares of P.T. SUMBER
ENERGINDO MANDIRI dealing with poultry products distribution. P.T. CPIT also
controls shares in two other overseas
trading firms respectively 19% of LOTUS DISTRIBUTION INTERNATIONAL Ltd.,
based in British Virgin Island and 1.3% shares of C.P. POKPHAND Co., Ltd., based in the Bermuda. On
12 June 2000 P.T. CPIT received an ISO 9002 certificate from P.T. SGS International Certification
Services for its quality, cost, delivery time, safety and service. P.T. CPIT is
now the biggest animal feed industry controlling some 40% local market
segment of animal feed.
In June 2005, P.T. CPIT planned to finance a shrimp breeding company
being managed by P.T. DIPASENA CITRA DARMAJA, a company of which the shares are
wholly controlled by P.T. PERUSAHAAN PENGELOLA ASET (P.T. PPA) Ex. IBRA.
According to P.T. PPA that there are 28 interested prospective investors
comprising 18 foreign investors and 10 domestic investors. The investment
required by P.T. DIPASENA for management is more than Rp. 1.2 trillion and for
shrimp breeders of Rp. 800.0 billion.
P.T. CPIT at present is the largest shrimp producer in the country with
annual production capacity of 40 tons. The width of shrimp breeding areas of
P.T. CPIT is 7,000 hectares with 3,200 shrimp breeders. The company plans to
increase its annual production capacity to 50 thousand tons to 60 thousand
tons. Some 25% of the world shrimp needs is supplied by this company.
In June 2007, there were 10 banks granting a syndicate credit of US$ 125
million to P.T. CPIT which would be used as a working capital (capital
expenditure) and to pay debs of P.T. CPIT.
The 10 banks include CITIBANK N.A., P.T. Bank CENTRAL ASIA Tbk., P.T.
Bank RAKYAT INDONESIA Tbk., P.T. LIPPO Bank Tbk., ING BANK N.A. Singapore
Branch, P.T. Bank MIZUNI INDONESIA, DZ BANK ANZ and P.T. Bank PESONA
INDONESIA. The credit was divided into
three schemes, firstly, amortizing term loan of US$ 65 million combined in
Rupiah and US$. The period of loan is
for five years. Secondly, bullet term
loan worth US$ 40 million in Rupiah and US$ with period of loan of five years
and thirdly in revolving loan of US$ 20 million in US$ with period of loan of
three years. The interest rate in US$
being supplied is LIBOR pluas 2.9 percent while loan in Rupiah is SBI plus 3
percent.
Mr. T. Thomas Effendi, vice president of P.T. CPIT, said that 50% of the
loan would be used to pay debts of the company because in July 2008 some of Rp.
500 billion of bonds of P.T. CPIT would be due.
Whereas, the rest would be used for investment and working capital.
Generally, the business position of P.T CPIT is favorable for having
wide marketing networks in the country.
The company is the largest animal feed industry in Indonesia. The operation of the company is backed up by
the CHAROEN POKPHAND Group based in Thailand.
According to financial
statement the total sales turnover of P.T. CPIT in 2004 amounted to Rp 4,814.8 billion with a net loss
of Rp 188.8 billion, increased to Rp 6,640.3 billion with a net profit of Rp
41.2 billion in 2005 and rose again to Rp 8,386.7 billion with a net profit of
Rp 167.1 billion in 2006. As of 30 June
2007, total sales turnover of the company reached Rp. 3,713.6 billion with a
net profit of Rp. 95.0 billion with total asset of Rp. 3,510.6 billion. So far, we have never heard that P.T. CPIT
has been black listed by Bank Indonesia (Central Bank) or involved in detrimental
cases being settled in the court.
The management of P.T. CPIT is led by Mr. Franciscus Affandi (52) as
president director a professional manager
with 18 years of experience in animal feed milling and distribution.
Daily operation, he is assisted by Mr.
T. Thomas Effendy and Mr. Vinai Rakphongphairoj, wholly vice president directors along with
five other directors respectively Mr. Peraphon Prayooravong, Mr. Hery Tjusanto,
Mr. Jemmy, Mr. Eddy Dharmawan and Mr. Fiece Kosasih. The management reputation is the above
business is excellent. The management
maintains wide relation with home and overseas private businessmen. So far, we have never yet heard of the
company’s management having been involved in business malpractices.
P.T. CPIT is sufficiently fairly good for business transaction. However,
in view of the unstable economic condition in the country we recommend to treat
prudently in business transaction and in extending a loan to the company.
Attachment :
List of the CHAROEN POKPHAND Group
Members
1. CENTRAL PROTEINA PRIMA, P.T. (Investment
Holding)
2. CENTRAL PERTIWI BAHARI, P.T. (Integrated
Shrimp Culture)
3. CHAROEN POKPHAND
4. CHAROEN POKPHAND JAYA FARM, P.T. (Chicken
Hatcheries and Breeding)
5. CHAROEN POKPHAND FOODS PUBLIC Co., Ltd., of
HK (Investment Holding)
6. C.P. POKPHAND Co. Ltd., of Bermuda (General Trading and Investment Holding)
7. LOTUS DISTRIBUTION INTERNATIONAL Ltd., of BVI
(General Trading)
8. SUMBER ENERGINDO MANDIRI, P.T. (Poultry
Products Distribution)
9. UDANGMAS INTIPERTIWI, P.T. (Animal Feed
Distribution).
10. MITSUI
LEASING & CAPITAL INDONESIA, P.T. (Finance and Leasing Services)
11. NIAGA
CATU DATA SCANINDO, P.T. (Trading, Sole Agent of Scanner)
12. Etc.,
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.79 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.63.91 |
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%)