MIRA INFORM REPORT

 

 

Report Date :

01.08.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PZ CUSSONS INDONESIA

 

 

Formerly Known As :

P.T. CUSSONS INDONESIA

 

 

Registered Office :

Cyber Building, 9th Floor Jalan Kuningan Barat No. 8 Jakarta Selatan, 12710

 

 

Country :

Indonesia

 

 

Date of Incorporation :

14.01.1988

 

 

Com. Reg. No.:

No. AHU-AH.01.10-14446

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture and Marketing of Soaps, Toiletries, Baby Products, Powders, Shampoo and Lotions

 

 

No. of Employees :

675 persons

 

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

Payment Behaviour :

No Complaints

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices.

Source : CIA


Name of Company

 

P.T. PZ CUSSONS INDONESIA

 

 

Address

 

Head Office

Cyber Building, 9th Floor

Jalan Kuningan Barat No. 8

Jakarta Selatan, 12710

Indonesia

Phones             - (62-21) 5269227 (Hunting)

Fax                   - (62-21) 5269218

Building Area     - 8 storey

Office Space      - 200 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Halim Perdanakusumah Km. 19.8

Batuceper, Tangerang

Banten Province

Indonesia

Phones             - (62-21) 6197611, 5523472 

Fax                   - (62-21) 5522257

Land Area         - 40,000 sq. meters

Building Area     - 27,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

a. 14 January 1988 as P.T. CUSSONS INDONESIA

b. 18 February 2003 as P.T. PZ CUSSONS INDONESIA

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-641.HT.01.01.TH.88

  Dated 29 January 1988

- No. AHU-42897.AH.01.02.TH.2008

  Dated 18 July 2008

- No. AHU-44407.AH.01.02.TH.2010

  Dated 16 September 2010

- No. AHU-AH.01.10-14446

  Dated 17 April 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.061.682.9.052.000

b. The President of the Republic of Indonesia

    No. B-103/Pres/12/1987

    Dated 31 December 1987

c. The Capital Investment Coordinating Board

     - No. 07/I/PMA/1988

      Dated 14 January 1988

-  No. 12/II/PMA/1993

  Dated 4 February 1993

-  No. 537/III/PMA/1993

  Dated 20 September 1993

-  No. 143/II/PMA/1996

  Dated 25 July 1996

-  No. 185/III/PMA/1998

  Dated 11 February 1998

-  No. 791/III/PMA/1999

  Dated 24 June 1999

-  No. 1108/III/PMA/1999

  Dated 31 August 1999

 

Related Company :

A Member Company of the PZ CUSSON Group, United Kingdom

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 13,567,200.-

Issued Capital                                  : US$ 13,567,200.-

Paid up Capital                                : US$ 13,567,200.-

 

Shareholders/Owners :

a. PZ CUSSONS (HOLDINGS) LIMITED                - US$ 13,561,200.-

    Address : Manchester Business Park 3500

                    Aviator Way Manchester

                    England

b. PZ CUSSONS (INTERNATIONAL) LIMITED       - US$          6,000.-

    Address : Manchester Business Park 3500

                    Aviator Way Manchester

                    England

 

BUSINESS ACTIVITIES

 

Lines of Business :

Manufacture and Marketing of Soaps, Toiletries, Baby Products, Powders, Shampoo and Lotions

 

Production Capacity :

a. Household Soap                           -      24,000 tons p.a.

b. Tooth Paste                                 - 5,500,000 dozens p.a.

c. Make-up for Face                         -    957,000 dozens p.a.

d. Perfume                                      -    313,000 dozens p.a.

e. Hair Preparation                           - 1,471,000 dozens p.a.

f. Face Preparation                           -    248,000 dozens p.a.

g. Skin Preparation                          - 1,300,000 dozens p.a.

h. Body Preparation                         -      40,000 dozens p.a.

i. Shaving Preparation                       -    120,000 dozens p.a.

k. Soap by Products :

      - Glycerine                                -        1,600 tons p.a.

      - Spent Diatomaceous                -           900 tons p.a.

      - Refined Glycerine                     -           350 tons p.a.

l. Household Diswashing                   - 1,000,000 liters p.a.

m. Household Antiseptic                   -      24,000 liters p.a.

 

Total Investment :

a. Equity Capital                              - US$ 13.6 million

b. Reinvested Profit                          - US$   1.8 million

c. Loan Capital                                - US$ 13.2 million

d. Total Investment                           - US$ 28.6 million

 

Started Operation :

1990

 

Brand Name :

CUSSONS, IMPERIAL LEATHER, ASOKA, KIDS, SWEET SEVENTEEN, MORNING FRESH

 

Technical Assistance :

PZ CUSSONS of United Kingdom

 

Number of Employee :

675 persons

 

Marketing Area :

Local    - 90%

Export  - 10%

 

Main Customer :

a. CARREFOUR

b. GIANT

c. ALFAMART

d. INDOMARET

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BINA KARYA PRIMA

b. P.T. BUKIT PERAK

c. P.T. SAYAP MAS UTAMA

d. P.T. WINGS SURYA

e. Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank NEGARA INDONESIA Tbk

      Wisma 46-Kota BNI

      Jalan Jend. Sudirman No. 1

      Jakarta Pusat

      Indonesia

b.   STANDARD CHARTERED Bank

      Menara Standard Chartered

      Jalan Prof. DR. Satrio No. 164

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 340.0 billion

2011 – Rp. 352.0 billion

2012 – Rp. 360.0 billion

 

Net Profit (estimated) :

2010 – Rp. 27.2 billion

2011 – Rp. 29.0 billion

2012 – Rp. 30.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Panagiotis Mouchteros

Vice President Director                     - Mr. George Sntonius Kanellis

Directors                                         - a. Mr. Simon Paul Plant

                                                        b. Mrs. Elsina Fransina Mustamu

                                                        c. Mr. Mark John Davey

                                                        d. Mr. Davis Christopher Graham

 

Board of Commissioners :

Commissioner                                 - Mr. Brandon Howard Leigh

 

Signatories :

President Director (Mr. Panagiotis Mouchteros) Or Vice President Director (Mr. George Antonius Kanellis) or one of the Directors (Mr. Simon Paul Plant, Mrs. Elsina Fransina Mustamu, Mr. Mark John Davey, or Mr. Davis Christopher Graham) which must be approved by Board of Commissioner.

 

 

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

 

 

OVERALL PERFORMANCE

 

Initially named P.T. CUSSONS INDONESIA, it was established in Jakarta in January 1988 with the authorized capital of US$ 10,800,000 entirely issued and paid up. The founding shareholders of the company are CUSSONS GROUP LIMITED of the UK and P.T. FINCONESIA, a merchant bank of Indonesia. In May 1994, the authorized capital was raised to US$ 16,800,000 wholly issued and paid up and concurrently P.T. FINCONESIA withdrew and into the company entered a new shareholder namely Mr. Ir. Bambang Indratmoko. In February 2003, the company renamed to P.T. PZ CUSSONS INDONESIA (P.T. PCI) and concurrently the authorized capital was increased to US$ 22,612,000 entirely issued and paid up. At the same time, the shareholders of P.T. PCI were PZ CUSSONS (HOLDINGS) LIMITED and PZ CUSSONS (INTERNATIONAL) LIMITED, both of the UK. The capital structures and shareholder composition of the company in details are as shown on profile of this report. The deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-42897.AH.01.02.TH.2008, dated July 18, 2008. Then according to the latest revision of notary documents of Mrs. Sri Irmiati, SH., No. 8 dated 27 March 2013 the company authorized capital was reduced to US$ 13,567,200 which of issued and paid up. With this time the composition of its shareholders has been changed to become PZ CUSSONS (Holdings) LTD (99.95%) and PZ CUSSONS (International) LTD (0.05%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-14446 dated April 17, 2013.

 

The shareholders of P.T. PCI namely PZ CUSSONS (HOLDING) LIMITED and PZ CUSSONS (INTERNATIONAL) LIMITED both are subsidiaries of the PZ CUSSONS Group, a large sized company group based in the UK dealing with cosmetics, toiletries, and other household appliances.

 

P.T. PCI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with cosmetic industry of with main products are soaps, shampoos, talcum and medicated powders. Its plant is located at Jalan Halim Perdana Kusumah Km. 18.9, Batu Ceper, Tangerang, Banten Province on a land of 4.0 hectares having been in commercial operation since 1990. Previously, the plant was owned by P.T. DJAYA MAKMUR RAYA and sold to P.T. PCI in 1988. The plant initially just owned old machinery and then it was gradually modernized. The plant has frequently been expanded to increase the annual production capacity. According to its license issued by the BKPM, the plant has annual production capacity Household Soap of 24,000 tons, Tooth Paste of 5,500,000 dozens, Make-up for Face of 957,000 dozens, Perfume of 313,000 dozens, Hair Preparation of 1,471,000 dozens, Face Preparation of 248,000 dozens, Skin Preparation of 1,300,000 dozens, Body Preparation of 40,000 dozens, Shaving Preparation of 120,000 dozens, Soap by Products : (Glycerine 1,600 tons, Spent Diatomaceous 900 tons, Refined Glycerine 350 tons), Household Diswashing of 1,000,000 liters and Household Antiseptic of 24,000 liters per year respectively. Some 10% of the company products is exported to several Asian and European countries while the rest is locally marketed using CUSSONS, IMPERIAL LEATHER, KIDS, ASOKA, SWEET SEVENTEEN, MORNING FRESH brands. To reach wider markets in Indonesia, PZ CUSSONS GROUP decided to build a plant in Indonesia. P.T. PCI is classified as a large sized company of its kind in the country of which the operation had been running smoothly and growing stable in the last five years.

 

Generally outlook we find that detergent industry had been increasing within the last five years, but soap industry declining since mid-1997 to the end 1998 and since then rose again. But competition is very tight due to a large number of similar companies operating in the country, among others, P.T. UNILEVER INDONESIA, P.T. KAO INDONESIA, P.T. FILMA UTAMA SOAP, P.T. SAYAP MAS UTAMA, P.T. WINGS SURYA, P.T. MUSIM MAS, etc. The following table shows the detergent and soap production in Indonesia:

 

Development of Detergent Production, 2005 – 2012*

                                                                                                                                    (Ton)

Year

Powder

Cream

Bar

Liquid

2005

2006

2007

2008

2009

2010

2011

2012*

165,057

174,960

185,457

196,213

207,789

220,256

231,279

245,156

450,460

477,460

504,108

529,108

560,854

594,505

624,230

661,684

78,918

83,653

88,583

93,898

99,531

104,507

110,777

117,424

56,962

60,380

64,003

67,843

71,913

75,509

80,039

84,841

      Source: ICB Processing, 2012* (projected)

 

P.T. PCI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. PCI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to Rp. 340.0 billion rose to Rp. 352.0 billion in 2011 increased to Rp. 360.0 billion in 2012 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 30.1 billion and the company has an estimated total networth of at least Rp. 105.0 billion. We observe that P.T. PCI is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.  

 

      The management of P.T. PCI is led by Mr. Panagiotis Mouchteros (49) a professional manager of Greek with experience in manufacturing and marketing of soaps, toiletries, baby products, powders, shampoo and lotions. The management is handled by experienced staff in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PZ CUSSONS INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.92.97

Euro

1

Rs.80.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.