MIRA INFORM
REPORT
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Report Date : |
19.01.2011 |
IDENTIFICATION DETAILS
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Name : |
P.T. ESSAR |
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Formerly Known As : |
P.T. ESSAR
DHANANJAYA |
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Registered Office : |
Steel Cold rolling Mill & Galvanizing Complex, Bekasi
Fajar Industrial Estate (BFIB), Industri III Area Kav. B-1,Cibitung, Bekasi
17520, |
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Country : |
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Date of Incorporation : |
08.09.1993 |
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Com. Reg. No.: |
No. AHU-AH.01.10-20218 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Cold Rolled Steel
Coil/Sheet 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$ 22,500,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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b1 |
b1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name of Company
P.T. ESSAR
company Address
Head
Office & Factory
Steel Cold rolling Mill & Galvanizing
Complex
Bekasi Fajar Industrial Estate (BFIB)
Industri III Area Kav. B-1
Cibitung, Bekasi 17520
Phone - (62-21) 8980152 (Hunting)
Fax. -
(62-21) 8980150, 8980151
E-mail - marketing@essar.co.id
Website - http://www.essar.co.id
Land Area - 14.0 hectares
Building Space - 6.5
hectares
Region - Industrial Estate
Status - Owned
City Office
19th
Floor,
Jl. H.R. Rasuna Said
Block X-5 Kav. 1-2
Phone - (62-21) 5794 4800 (hunting)
Fax. -
(62-21) 5794 4811
Date of Incorporation
a. 8 September 1993
as P.T. ESSAR DHANANJAYA
b. April 2005 as
P.T. ESSAR
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability
Company
Company Reg.No.
The Ministry of
Law and Human Rights
a. No. AHU-91279.AH.01.02.Tahun 2008
Dated 28 November 2008
b. No. AHU-AH.01.10-20218
Dated 12 November 2009
Company Status
Foreign Investment
(PMA) Company
Permit by the Government
Department
The President of the
- No. B-131/Pres/6/1993
Dated 30 June 1993
The Capital Investment Coordinating Board
- No. 126/I/PMA/1993
Dated 14 July 1993
- No.
124/III/PMA/1995
Dated 6 April 1995
- No. 285/III/PMA/1995
Dated 17 July 1995
- No. 33/II/PMA/1997
Dated 26 February 1997
- No.
1447/III/PMA/1997
Dated 14 October 1997
- No.
883/III/PMA/2000
Dated 7 July 2000
- No.
152/II/PMA/2000
Dated 11 July 2000
- No.
1073/III/PMA/2002
Dated 30 September 2002
- No.
448/III/PMA/2003
Dated 25 April 2003
- No.
947/III/PMA/2004
Dated 24 September 2004
- No.
1495/III/PMA/2005
Dated 22 December 2005
- No.
289/II/PMA/2006
Dated 05 September 2006
- No.
350/II/PMA/2006
Dated 31 October 2006
The Department of
Industry and Trade
No.
677/T/Industri/1999
Dated 14 December
1999
The Department of
Finance
NPWP No.
01.070.747.9-055.000
NPWP No.
01.070.747.9-413.001
Related Company :
The ESSAR Group Members,
CAPITAL AND OWNERSHIP
Capital
Structure :
Authorized Capital - Rp. 156,600,000,000.- (US$. 75,000,000)
Issued Capital - Rp.
79,344,000,000.- (US$. 38,000,000)
Paid up Capital - Rp.
79,344,000,000.- (US$. 38,000,000)
Shareholders/Owners
:
a.
ARYA Infrastructure Holdings Ltd., of
(formerly Essar Infrastructure
Holding Ltd.) - Rp. 79,135,200,000.-
(US$.37,900,000)
b. ESSAR Investments Ltd., of
BUSINESS ACTIVITIES
Lines of Business :
Cold Rolled Steel Coil/Sheet Manufacturing
Production Capacity :
Existing Units
a. Cold Rolled Steel
Coils/Sheets - 600,000 tons
p.a.
b. Galvanizing
Coils/Sheets - 200,000
tons p.a.
c. Colour Coated
Coils/Sheets - 60,000 tons p.a.
Expansion Units (31
Oct. 2006)
a. Cilegon
Factory ; Hot Rolled Steel
Coils/Sheets - 2,000,000 tons p.a.
b. Tanah Laut
Factory ; Pellets – 4,000,000 tons and
Slabs Casting – 2,000,000 tons p.a.
Total Investment :
Existing Units
a. Owned Capital - US$
47.0 million
b. Reinvested Profit - US$
10.0 million
b. Loan Capital - US$ 179.0 million
c. Total Investment -
US$ 236.0 million
Expansion Units (31 Oct. 2006)
a. Cilegon Factory - US$
450.0 million
b. Tanah Laut Factory - US$ 1,450.0 million
c. Total Investment -
US$ 1,900.0 million
Started
Operation :
September 1997
Brand
Name :
ESSAR
Technical
Assistance :
ESSAR STEEL LTD. of
Number
of Employee :
530 persons
Marketing
Area :
Export
- 50%
Domestic
- 50%
Main
Customer :
Buyers in
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T.
b. P.T. ISPAT STEEL
c. P.T. BAJA INDO ERA PRIMA
d. P.T. SRIREJEKI PERDANA STEEL
Business Trend :
Growing
BANKER, AUDITOR & LITIGATION
Bankers
:
a. P.T. Bank MANDIRI
Tbk
Ruko Mega Mall Cibitung Blok B1-2
Kawasan Industri MM2100, Cibitung
West
b. Hongkong and Shanghai Banking Corp. Ltd.
Jalan Jend. Sudirman Kav.
29-31
Auditor :
Internal Auditor
Litigation
:
No litigation record
in our database
FINANCIAL FIGURE
Annual
Sales (estimated) :
2007 – US$ 128.0 million
2008 – US$ 143.0 million
2009 – US$ 162.0 million
2010 – US$ 180.0 million
Net Profit (estimated) :
2007 – US$
7.8 million
2008 – US$
8.6 million
2009 – US$
9.5 million
2010 – US$ 10.6 million
Payment
Manner :
Almost Promptly
Financial
Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Kunj Bihari Trivedi
Director - Mr.
Drs. Maizalius Ali
Board of Commissioners :
President
Commissioner - Mr. Prashant Shashikant Ruia
Commissioners - a. Mr. Ir. Airlangga
Hartarto
b. Mr. Rangasami Vijayaraghavan
c. Mr. Vikram Amin
Signatories :
President Director (Mr. Kunj Bihari Trivedi) or Director
(Mr. Drs. Maizalius Ali) which must be approved by the 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$ 22,500,000.- on the
90 days of payments
OVERALL PERFOMANCE
Originally the company name was P.T. ESSAR DHANANJAYA was
established in September 1993 with an authorized capital of US$ 75,000,000 and
an issued capital of US$ 25,000,000 of which US$ 2,500,000 was paid up. The
founding shareholders of the company are ESSAR GUJARAT LTD., of
In April 2005, the name of the company changed to P.T. ESSAR
P.T. ESSAR
In 2005, P.T. EI has ever explored to be in cooperation with
P.T. KRAKATAU STEEL of
P.T. EI currently has a cold rolling capacity of 400,000 MT and a galvanizing capacity of 150,000 MT per annum and 100,000 MT per annum of CR Soft products. P.T. EI plans to focus a value added CR Soft products. The company is currently the largest producer of Cold Rolled and Galvanized Steel in the private sector in Indonesia supplying CR Full Hard, CR soft and GI (in coil, plain and corrugated sheet, trusses and decking) products.
Since 2007, the
steel price in the country has increased by 25% to 30% in line with the
increasing production cost. The
Department of Industry projected that in 2013 the national steel consumption
will reach 10 million tons. In view of
the high steel consumption, the government has supported the entering of
investment in steel industries and those using local basic materials will gain
fiscal incentives based on the Government Regulation (PP) Number 1 year
2007. In view of the high steel demand
in the country, it’s estimated that business prospect of steel product
industries in the country will be favorable.
However, the competition is very tight on account of lots of domestic
and imported steel product in the markets.
P.T. EI is classified as a large sized company of its kind in the
country of which the operation has been growing.
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
2007 is US$ 128.0 million increased to US$ 143.0 million in 2008, to US$ 162.0
million in 2009 and rose again to US$ 180.0 million in 2010. The operation in 2010 yielded an estimated
net profit at least US$ 10.6 million and the company has an estimated total
networth by at least US$ 155.0 million.
We observe that P.T. EI its financially strong being backed by foreign
partner ESSAR Group of
P.T. EI’s management is led out by Mr. Kunj Bihari Travedi (50) as president director. He is a professional manager of the foreign partner, ESSAR Group. In his day-to-day activities, he is assisted by Mr. Drs. Maizalius Ali (51) as director and a marketing general manager namely Mr. V. Shidhar, a professional manager also from the ESSAR Group with broad experience in his field. We observed that management’s reputation in said business is fairly good. The company has had wide relation in the realm of the private businessmen inside and outside the country. Their relation with the government is fairly good. So far, we have never heard 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.
PT. ESSAR
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.45.53 |
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|
1 |
Rs.72.56 |
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Euro |
1 |
Rs.60.62 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.