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Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
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Name : |
P.T. GROWTH |
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Formerly Known As : |
P.T. INDUSTRI
BESI & BADJA |
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Registered Office : |
Jalan KL. Yos
Sudarso Km. 10.5, |
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Country : |
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Date of Incorporation : |
23.04.1969 |
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Com. Reg. No.: |
No.
AHU-AH.01.10-40939 |
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|
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Iron and Steel
Manufacturing |
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No. of Employees : |
1,128 employees
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RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
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 |
|
Source : CIA |
P.T. GROWTH SUMATRA INDUSTRY
Head Office &
Factory
Jalan KL. Yos
Sudarso Km. 10.5
Medan 20242
North Sumatra
Indonesia
Phones -
(62-61) 6851989 (6 lines)
Fax - (62-61) 6851474
E-mail - info@growthsteelgroup.com
Website - http://www.growthsteelgroup.com
Land Area - 100,000 sq.
meters
Building Area - 43,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Surabaya Warehouse
Jalan Margomulyo Indah 1 Block D No. 1
Surabaya, 60186
East Java
Indonesia
Phones -
(62-31) 749 7709 (Hunting)
Fax - (62-31) 749 7710
E-mail - tauyong@growthsteelgroup.com
Land Area - 10,000 sq.
meters
Building Area - 7,000 sq.
meters
Region - Industrial
Zone
Status - Rent
a. 23 April 1969 as P.T. INDUSTRI BESI &
BADJA SUMATRA
b. 8 February 1971 as P.T. GROWTH SUMATRA
INDUSTRY
P.T. (Perseroan
Terbatas) or Limited Liability Company
The Ministry of
Law and Human Rights
- No. J.A. 5/32/5
Dated 29 March 1971
- No. AHU-02916.AH.01.02.TH.2008
Dated 21 January 2008
- No. AHU-AH.01.10-40939
Dated 15 December 2011
Private National
and Domestic Investment (PMDN) Company
The Department
of Finance
NPWP No.
01.100.033.8-123.000
The Department
of Industry
No.
021/M/SK/IMLD/VII/89
Dated 8 July 1989
The Capital
Investment Coordinating Board
- No.
950/Sekr/Sp.PMDN/70
Dated 30 June 1970
- No.
521/III/PMDN/1989
Dated 18 July 1989
- No.
411/II/PMDN/1990
Dated 26 September 1990
A Member Company
of the GROWTH STEEL Group (see attachment)
Capital
Structure :
Authorized
Capital : Rp.
20,000,000,000.-
Issued Capital : Rp.
10,000,000,000.-
Paid up Capital : Rp.
10,000,000,000.-
Shareholders/Owners
:
a. Mr. Fadjar
Suhendra -
Rp. 6,000,000,000.-
Address : Jl. Taman Polonia II No.
27
Medan, North Sumatra
Indonesia
b. Mr. Sugih
Suhendra -
Rp. 4,000,000,000.-
Address : Jl. Taman Polonia II
No. 3
Medan, North
Sumatra
Indonesia
Lines of Business
:
a. Iron and Steel Manufacturing
b. Biomass Power Plant Development and
Management
Production
Capacity :
a. Reinforcing
Bars - 14,400
tons p.a.
b. Shafting Bars - 3,600 tons p.a.
c. Steel Strips - 9,200 tons p.a.
d. Steel Angles - 3,600 tons p.a.
e. Steel Squares - 1,200 tons p.a.
f. Wire Rods -
30,000 tons p.a.
g. Light Gaugers - 30,000 tons p.a.
h. Biomass Power
Plant - 2 x 15 MW
Total
Investment :
a. Equity Capital - Rp. 20.0 billion
b. Loan Capital - Rp. 80.0 billion
c. Total Investment - Rp. 100.0 billion
Started
Operation :
1970
Brand Name :
GSI
Technical
Assistance :
None
Number of
Employee :
1,128 persons
Marketing Area
:
Export -
30%
Local -
70%
Main Customers
:
a. Building
Material Shops and Contracting companies
b. Overseas
buyers in Singapore, Malaysia, Australia
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. GUNUNG
GARUDA
b. P.T. BLUESCOPE
STEEL INDONESIA
c. P.T. KRAKATAU STEEL Tbk
d. P.T. SARANA
STEEL
Business Trend
:
Growing
Bankers :
a. P.T. Bank MANDIRI Tbk
Jalan
Jend. A. Yani 100
Medan,
North Sumatra
Indonesia
b. P.T. Bank PERMATA Tbk
Jalan
Balaikota No. 10 A-P
Medan,
North Sumatra
Indonesia
c. P.T. Bank CENTRAL ASIA Tbk
Jalan Pengeran Diponegoro No. 15
Medan, North Sumatera
Indonesia
d. P.T. Bank
EKONOMI RAHARDJA Tbk
Jalan
Perintis Kemerdekaan No. 9
Medan, North
Sumatera
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2009 – Rp. 430.0
billion
2010 – Rp. 450.0
billion
2011 – Rp. 465.0
billion
2012 – Rp. 239.0
billion (January – June)
Net Profit
(estimated) :
2009 – Rp. 20.1
billion
2010 – Rp. 22.2
billion
2011 – Rp. 24.0 billion
2012 – Rp. 13.0
billion (January – June)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Peter Suhendra
Directors -
a. Mr. Banuvati Pualam
b. Mr. Ir. Samsudin
c. Mr. Tjan Saut, MT
Board of Commissioners :
President Commissioner -
Mr. Fadjar Suhendra
Commissioner -
Mr. Sugih Suhendra
Signatories :
President Director (Mr.
Peter Suhendra) or one of the Directors (Mr. Banuvati Pualam, Mr. Ir. Samsudin
or Mr. Tjan Saut MT) which must be approved by Board of Commissioner
Management Capability :
Good
Business Morality :
Good
Originally named P.T. INDUSTRI BESI & BADJA SUMATRA, the company was established in April 1969 in Medan, North Sumatra with an authorized capital of Rp. 100,000,000 and an issued capital of Rp. 80,000,000 entirely paid up. The company was founded by Mr. Fajar Suhendra, Mr. Surya Suhendra, Mrs. Erni Widjaja and Mr. Muchtar Tjuatja, all Indonesians of Chinese extraction as the original shareholders. The company notary deed had been revised frequently. In February 1971 the company's name was changed to P.T. GROWTH SUMATRA INDUSTRY (P.T. GSI). In 1989 the authorized capital was increased to Rp. 20,000,000,000 with an issued capital of Rp. 10,000,000,000 of which Rp. 6,000,000,000 was paid up. On this occasion Mrs. Erni Widjaja and Mr. Muchtar Tjuatja withdrew and were replaced by Mr. Trisno Suhendra, Mr. Sugih Suhendra, Mr. So Tjoei and Mr. Jo A Kam, all also Indonesian businessmen of Chinese extraction.
Then in December 2007 the paid up capital was raised to Rp. 10,000,000,000. On the same occasion Mr. Surya Suhendra, Mr. So Tjoei, Mr. Trisno Suhendra and Mr. Jo A Kam pulled out and the whole shares sold to Mr. Fadjar Suhendra (60%) and his younger brother Mr. Sugih Suhendra (40%). The deed of amendment was made by Mrs. Susan Widjaja, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-02916.AH.01.02.TH.2008, dated January 21, 2008. Then according to the latest revision of notary documents of Mr. Jhon Langsung, SH., No. 73 dated 12 November 2011 the board of director and the board of commissioner had been changed (see profile of this report). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-40939 dated December 15, 2011.
We observe the majority shareholder is held by Mr. Fadjar Suhendra. He is also founder and majority business stakes owner of the GROWTH STEEL Group, a small sized company group in Medan dealing with steel mills manufacturing steel products, including steel billets, steel reinforcing bars, steel angel bars and cold drawn steel shafting bars, iron and steel foundry, shrimp culture and sea food products processing, cassava palletizing and chip manufacturing.
P.T. GSI has been in operation since 1970 in iron steel products manufacturing with its plant located on a 7 hectare land at Jalan K.L. Yos Sudarso Km. 10.5, Medan-Belawan, North Sumatra. The company's production consists of reinforcing bars, shafting bars, steel strips, steel angles, steel square and wire rods. Basic materials (scraps) are importer from Singapore, Hong Kong and Netherlands (Rotterdam). P.T. GSI is now producing reinforcing bars, wire rods, shafting bars, steel angles and squarer with a realization of 11,000 to 12,000 tons on the average per month. Mr. Samsudin, the company's commercial director, said P.T. GSI's products are mostly sold on the local market, primarily in a number of big cities in Sumatra, Kalimantan and West Java. About 30% of the company's production is exported to Singapore, Malaysia and Australia. He went on to say that the company's production has since end 1997 been falling sharply under the impact of the economic crisis in the country. But since 2000 P.T. GSI's production has been picking up again.
To meet the increasing demands of steel products expansion and development programs have been implemented for years, new technology is applied to ensure high quality and cost competitiveness. Strict quality control is practiced at all steps of the manufacturing process. P.T. GSI has acquired a good reputation as a reliable producer and supplier of high quality steel products. The company's products conform to Indonesian National Standard (SNI), and Japanese Industrial Standard (JIS). Currently P.T. GSI production capacity 350,000 tons respectively per annum with produces type of products including angle bars, deformed bar, plain bar, flat bar, steel billets, bright shafting bar and weld mesh.
P.T. GSI is one of large sized steel mills industry in Medan, North Sumatra. However, the company has been facing difficulty in gaining scrap irons as the basic materials in the last several years because the prices keep on increasing. Meanwhile, the local demand for the above products has kept on increasing in line with the increase in the infrastructure development in the country. They were hospitalized at Imelda Hospital, Medan, North Sumatra. The sector police of Medan Labuan, said that the explosion investigated by a team of laboratory and forensic of the North Sumatra police department. The loss of the company was not further revealed. (Source: Tempo Newspaper, 27 August 2007). We observe that the explosion of steel furnace of P.T. GSI has brought no influence to the production process of the company because it could be overcome immediately.
Besides, P.T. GSI has been build Biomass Power Plant 2 x 15 MW for its own purposes. The Biomass Power Plant had been operating since July 2012 was inaugurated by Minister of Energy and Mineral Resources. We observed that the operation of P.T. GSI has been running smoothly and developing well in the last four years.
We have generally observed the demand for steel products had still been rising by 5% to 7% in the last five years. But the burden of the steel industry in the country is constrained due to the falling raw material scrap. Besides, the increased cost of production due to rising gas prices and the higher gas prices and the higher cost of imported raw materials. Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Stop production of products which do not reach profit target. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.
Indonesia’s Steel Production and Consumption, 2008 – 2011
|
Year |
Production (Million Ton) |
Consumption (Million Ton) |
|
2008 |
5.29 |
7.79 |
|
2009 |
3.71 |
5.65 |
|
2010 |
5.23 |
7.48 |
|
2011 |
6.01 |
8.6 |
|
2012* |
7.02 |
9.5 |
Source: Ministry of Industry,
Processed by ICB
*) Projected
The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. P.T. GSI’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated that the total sales turnover of the company in 2009 amounted to Rp. 430.0 billion increased to Rp. 450.0 billion in 2010 and rose again to Rp. 465.0 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 239.0 billion with a net profit of Rp. 13.0 billion and projected to go on rising by least 6% in 2013. The company has an estimated total networth of at least Rp. 215.0 billion. Payment condition for domestic suppliers is good with the credit payment system of 1 month to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).
The management of P.T. GSI is headed by Mr. Peter Suhendra (37) a young professional manager with experience in iron and steel manufacturing. But the prime mover of the company is his father Mr. Fadjar Suhendra (65), a businessman with more than 35 years of experience in steel mills industry. In his daily activities, he is assisted by his brothers namely Mr. Banuvati Pualam (47), Mr. Ir. Samsudin (46) and Mr. Tjan Saut MT (45) as Directors. The business reputation of the management in steel mills industry and trading is good. The management has wide relation overseas and national private businessmen as well as with the government sectors. So far, we did not hear that the management has been involved in business malpractice and detrimental cases being settled in the court. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. GROWTH SUMATRA INDUSTRY is sufficiently fairly good for business transaction.
Attachment:
See List of
the GROWTH STEEL Group Members
1.
AGROJAYA PERDANA, P.T. (Palm Kernel Crushing Mills)
2.
GROWTH ASIA, P.T. (Iron and Steel Casting and Biomass Power
Plant Development and Management)
3.
GROWTH PACIFIC, P.T. (Shrimp Culture and Cold Storage)
4.
GROWTH PAKANINDO SPESIAL, P.T. (Animal Feed Mills)
5.
GROWTH SUMATRA
INDUSTRY LTD., P.T. (Iron Steel Milling and Biomass Power Plant
Development and Management)
6.
HARKAT SEJAAHTERA, P.T. (Crude Palm Oil Processing and
Biomass Power Plant Development and Management)
7.
INDOFERRO, P.T. (Pig Iron Industry)
8.
LESTARI AGRIBISNIS INDONESIA, P.T. (Peternakan)
9.
LUBUK NAGA, P.T. (Shrimp Culture)
10. PRISCOLIN, P.T. (Crude Palm
Oil Processing)
11. RIMBA PALMA SEJAHTERA
LESTARI, P.T. (Biomass Power Plant Development and Management)
12. SERDANG JAYA PERDANA, P.T.
(Coconut Oil Processing) Pabrik minyak kelapa
13. UNION CONFECTIONARY, P.T.
(Candy Manufacturing)
14. UNION FOODS, P.T. (Food
Processing)
15. Etc
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.63 |
|
UK Pound |
1 |
Rs.86.18 |
|
Euro |
1 |
Rs.69.75 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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.