|
Report Date : |
13.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDORAMA VENTURES |
|
|
|
|
Registered Office : |
Jalan Raya
Serpong Desa Cihuni RT. 002 RW. 004, Kecamatan Pagedangan Kabupaten Tangerang 15820 Banten Province |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
24.05.2011 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
· Polyester Filament Yarn, Polyester Resin and Nitrogen Industry ·
Investment Holding |
|
|
|
|
No. of Employees |
848 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Indonesia |
B1 |
A2 |
|
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, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices
|
Source
: CIA |
P.T.
INDORAMA VENTURES INDONESIA
Head Office & Factory
Jalan Raya
Serpong
Desa Cihuni RT. 002 RW. 004, Kecamatan Pagedangan
Kabupaten
Tangerang 15820
Banten Province
Phone - (021) 5371111
(Hunting)
Fax - (021) 5378811
Land Area - 10,020 sq.
meters
Office Space - 1,130 sq. meters
Region - Industrial
Zone
Status - Owned
Corporate Office
Graha Irama, 17th
Floor
Jalan H.R. Rasuna
Said X-1 Kav. 1 & 2
Jakarta Selatan,
12950
Indonesia
Phones -
(62-21) 5261555 (Hunting)
Fax -
(62-21) 5261501, 5261502
E-mail - corporate@indorama.com
Website - http://www.indorama.com
Building Area - 26 storey
Office Space - 2,500 sq.
meters
Region - Commercial
Status - Owned
Date of
Incorporation :
a. 28 March 1991 as P.T. SUNKYONG KERIS
INDONESIA
b. 12 February 1998 as P.T. SK
KERIS
c. 24 May 2011 as P.T. INDORAMA
VENTURES INDONESIA
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and
Human Rights
- No. C-31016.HT.01.04.TH.2005
Dated
22 November 2005
- No. AHU-51328.AH.01.02.Tahun 2008
Dated
14 August 2008
- No. AHU-228190.AH.01.02.TH.2011
Dated 6 June 2011
- No. AHU-65849.AH.01.02.TH.2012
Dated 26 December 2012
- No. AHU-AH.01.10-17278
Dated 6 May 2013
Company
Status :
Foreign Investment (PMA) Company
Permit by the
Government Department :
The Department of Finance
NPWP No. 01.069.394.3-057.000
The President of the
Republic of Indonesia
No. B-317/Pres/9/1990
Dated 24 September 1990
The Capital Investment
Coordinating Board
- No. 312/I/PMA/1990
Dated 10 October 1990
- No. 165/III/PMA/1991
Dated 19 March 1991
- No. 241/III/PMA/1992
Dated 22 April 1992
- No. 571/II/PMA/1993
Dated 02 June 1993
- No. 68/II/PMA/1995
Dated 31 March 1995
- No. 26/II/PMA/1997
Dated 14 February 1997
- No. 1747/III/PMA/1999
Dated 28 December 1999
- No. 225/II/PMA/2002
Dated 22 October 2002
The Department of Industry
No. 204/T/Industri/1998
Dated 12 May 1998
Related
Companies :
A Member Company of the INDORAMA Group (see attachment)
Capital
Structure :
Authorized Capital - US$ 80,000,000.-
Issued Capital - US$ 80,000,000.-
Paid up Capital - US$ 80,000,000.-
Shareholders/Owners
:
a. INDORAMA NETHERLANDS B.V. - US$ 79,992,000.-
Address :
Markweg 201, 3198 NB
Europoort
Rotterdam
Netherlands
b. INDORAMA NETHERLANDS COOPERATIEF U.A. - US$ 8,000.-
Address : Markweg 201, 3198 NB
Europoort Rotterdam
Netherlands
Lines of
Business :
a. Polyester Filament Yarn, Polyester Resin and
Nitrogen Industry
b. Investment Holding
Production
Capacity :
a. Polyester
Filament Yarns - 86,400 tons
p.a.
b. Polyester Resins - 54,750 tons p.a.
c. Nitrogen - 8,760 tons p.a.
d. Paper Tubes -
18,000,000 pieces p.a.
Total
Investment :
a. Equity Capital -
US$ 80.0 million
b. Loan Capital -
US$ 196.1 million
c. Total Investment -
US$ 276.1 million
Started
Operation :
1993
Brand Name :
Indorama Ventures Indonesia
Technical
Assistance :
Hitachi, Japan
Number of
Employee :
848 persons
Marketing Area
:
Domestic - 75%
Export -
25%
Main Customers
:
a. The BATIK KERIS Group members
b. Overseas buyer in Several Asian and European countries
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. DAWAI INDAH ADI
b. P.T. DJONI TEXINDO
c. P.T. GUNAWAN TEXINDO
d. P.T. MALIGI SPINNING MILLS
e. P.T. INDOPANCA CENTRATEX
Business Trend
:
Growing
B a n k e r s
:
a. JP MORGAN CHASE Bank
Jalan
Jend. Sudirman Kav. 21
Jakarta
Selatan
Indonesia
b. P.T. Bank
MANDIRI Tbk
Jalan
Imam Bonjol No. 61
Jakarta
Pusat
Indonesia
Auditor :
Drs. Thomas,
Trisno, Hendang & Partner
Litigation :
No litigation
record in our database
Annual Sales
(estimated) :
2011 – US$ 270.0
million
2012 – US$ 281.0
million
2013 – US$ 293.0
million
Net Profit
(estimated) :
2011 – US$ 7.5
million
2012 – US$ 8.0
million
2013 – US$ 9.2
million
Payment Manner
:
Above Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Udey Paul Singh Gill
Directors -
a. Mr. Dilip Kumar Agarwal
b. Mr. Shin Yong Sig
c. Mr. Gopal Lal Modi
d. Mr. Ashok Kumar Ladha
e. Mr. Saurabh Mishra
Board of Commissioners :
President Commissioner -
Mr. Sri Prakash Lohia
Commissioners -
a. Mr. Aloke Lohia
b. Mr. Suchitra Lohia
c. Mr. Amit Lohia
Signatories :
President Director (Mr.
Udey Paul Singh Gill) or one of the Directors (Mr. Dilip Kumar Agarwal, Mr.
Shin Yong Sig, Mr. Gopal Lal Modi, Mr. Ashok Kumar Ladha or Mr. Surabh Mishra)
which must be approved by Board of Commissioners.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Above Average
Credit Recommendation :
Credit should be extended under guarantee
Originally named
P.T. SUNKYONG KERIS INDONESIA, it was established in Jakarta in March 1991 with
the authorized capital of US$ 25,000,000 issued capital of US$ 2,500,000 fully
paid-up. Founders of the company originally are P.T. REMPOA FILAMENT (a member
of the BATIK KERIS Group of Indonesia), SUNKYONG INDUSTRIES LTD., SUNKYONG
ENGINEERING AND CONSTRUCTION and SUNKYONG LTD., the three are The SUNKYONG
Group of South Korea. The company notary deed had been changed a couple of
times. In July 1996 the authorized capital was raised to US$ 40,000,000 fully
issued and paid-up. Later in February 1998 when the company name changed to
P.T. SK KERIS. In June 2000, the authorized capital was raised to US$
80,000,000 fully issued and paid-up. At that time SUNKYONG INDUSTRIES LTD., and
SUNKYONG LTD. withdrew and replaced by SK CHEMICALS CO. LTD., and SK NETWORKS
CO. LTD., both of South Korea.
Later in March
2011 due to the company’s financial distress, the whole shares had been taken
over by the INDORAMA Group through INDORAMA NETHERLANDS BV and INDORAMA
NETHERLANDS COOPERATIEF U.A., both are a member company of the INDORAMA Group.
In May 2011 the
company named changed into P.T. INDORAMA VENTURES INDONESIA (P.T. IVI). On the
same occasion the composition of its shareholders has been changed to become
INDORAMA NETHERLANDS B.V., (99.99%) and INDORAMA NETHERLANDS COOPERATIEF U.A.,
(0.01%). The latest according to the revision of notary deed Mrs. Novita
Puspitarini, SH., no. 1 dated 1 April 2013 the company board of director and
the board of commissioner had been restructured to lead and runs of the
company’s operation. The deed of amendments was approved by the Ministry of Law
and Human Rights in its decision letter No. AHU-AH.01.10-17278 dated May 6,
2013.
We observe that
both shareholders INDORAMA NETHERLANDS BV., and INDORAMA NETHERLANDS
COOPERATIEF U.A., is members company of the INDORAMA Group, a large sized
business group dealing with integrated textile industry which majority shares
is controlled and headed by Mr. Sri Prakash Lohia.
P.T. IVI
obtained a foreign investment (PMA) license for dealing with spinning mill
whose plant located at Jalan Raya Serang, Desa Cihuni, Kecamatan Legog,
Tangerang, Banten Province standing on 10.0 hectares operating from 1993. The
plant had been expanded for increasing its production capacity and its current
installed production capacity of Polyester Filament Yarns 86,400 tons per year.
The plant employs a well proven technology from Hitachi, Japan. Approximately
848 people are employed at P.T. Indorama Ventures Indonesia. Its products in
the form of nitrogen and polyester resin are used for own consumption, while,
polyester filament yarns is 25% exported to several Asian and European
countries. The rest 75% is marketed domestically to several textile industries
(The BATIK KERIS Group). After taken
over by INDORAMA Group in March 2011 some of the products supplied to its owned
group members (INDORAMA Group) and others textile industries. Besides, P.T. IVI
is also engage in investment holding by controls 99% shares of P.T. SK WAHANA
INTERNATIONAL dealing with textile industry. According information some of the
products distributed by P.T. TRITAMA VIRYA POLYMER dealing with trading and
distributor of polyester filament yarns, polyester resin and others. We observe
that P.T. IVI has been growing and developing well in the last three years.
Year 2013 was a
very challenging for the trade and business in general and for Polyester sector
in particular where it undergone very turbulent period. The Global economic
slowdown had an impending and prolonged impact on the demand that has been
further exacerbated by the excessive supply due to over capacity of PTA,
Polyester Fiber and Filament yarn in Asia, mainly led by China. This has
triggered a global down-cycle in the polyester chain, which has been lasting
for an abnormally longer period and where many of the Asian and Global
manufacturers suffered considerably. The product spreads across the polyester
value chain continued to remain depressed due to stiff competition and the
softening trend in cotton and Rayon prices during the year. Polyester and Raw
material chain apparently reflect the current uncertainty and slow down of the
global economy and the overall growth of polyester production has slowed down
in the past two years 2012 and 2013. With the effective capacity of about 17
million tons added in the last two years, PTA operating dropped to 76% in 2013
from 90.2% and likely to fall below 74% in 2014 with rationalization of the
regional capacities. Polyester polymer production reaching 61.68 million tons,
a growth of 3.2 million tons or 5.5% in the year 2013, marginally improved
from4.6% in 2012 as the global economy recovered in the second half of 2013.
Longer-term growth rates are trending better with over 6% look impressive
compared with other major petrochemical related business sectors.
Global economy
is expected to grow by 3.7% in 2014 and 3.9% in 2015, primarily due to recovery
in advanced economies and the emerging economies to expand by 5.10% and 5.4%
respectively. Indonesian economy is projected to grow moderately at 5.3% - 5.5%
in 2014 and 2015 and the growth will be primarily driven by strong domestic
consumptions and modest increase in exports to its major trading partners. The
Indonesian rupiah (IDR) is likely to remain under pressure in early 2014 amid
uncertainty over the election results and U.S. Fed tapering. Domestic
environment for manufacturing sectors expect to pass through a tough phase with
the proposed hike in energy and manpower costs. Both Gas prices and Electricity
tariff are slated for a significant increase in 2014 putting pressure on cost
competitiveness of the domestic manufacturers.
Industry is taking up the
matter with the ministry for phasing out the hike over a period of time instead
at one go. With regard to polyester upstream sector, with the additional
capacity of Fiber and Filament yarn going on stream, domestic market is
expected to face a stiff price competition for commodity products. However, the
Company with its strong customer base and with a diversified product mix is
firmly placed to remain competitive and maintain its leadership position. The
delay in finding a solution to its long pending secured debt restructuring
continues to remain a setback to carry out its growth plans. To expedite the
process, the Company has recently submitted an updated restructuring plan with
alternate option to its secured creditors that are under active consideration.
Post restructure, the Company will have a sound and healthy financial base with
its debts brought down to sustainable levels. This would in turn enable the
company to raise finance from market to meet its short and long terms
investments to fund its growth plans. All of these efforts will improve the
performance of the Company significantly, and to reposition it to the forefront
of the polyester industry and retain its strategic and leadership position.
Until this time
P.T. IVI has not been registered with Indonesian Stock Exchange, so that they had
not obliged to announce their financial statement. The management of P.T. IVI
is very reclusive towards outsiders and rejected to disclose its financial
condition. We estimated that total sales turnover of the company in 2011
amounted to US$ 270.0 million rose to US$ 281.0 million in 2012 increased to
US$ 293.0 million in 2013 and projected to go on rising by at least 4% in 2014.
The operation in 2013 yielded an estimated net profit of at least US$ 9.2
million and the company has an estimated total networth of at least US$ 95.0
million. We observe that P.T. IVI is supported by INDORAMA Group 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. IVI is led by Mr. Udey Paul Singh Gill (61) a professional manager of
India with experience in polyester filament yarn industry. He is also
professional manager of INDORAMA Ventures Public Company, in petrochemical and
chemical industry based in Thailand. However we are sure the primemover is Mr.
Sri Prakash Lohia (62) a top figure of the INDORAMA Group. The company's
management is handled by professional staff in the above business. They have
wide relations with private businessmen within and outside the country. 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. INDORAMA VENTURES INDONESIA is sufficiently
fairly good for business transaction.
List of the INDORAMA Group Members
1.
ASHOK
TEXTILE Industries, Ltd., Nepal (Textile Industry)
2.
AUTUM
INVESTMENT Ltd., Hong Kong (Holding Company)
3.
BANGADUA
PETROLEUM, P.T. (Oil & Natural Gas Exploration)
4.
BROOKGRANGE
INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)
5.
INDOMULIA
MITRAJAYA, P.T. (Shrimp Culture)
6. INDORAMA CHEMICALS (Thailand) Ltd.,
Thailand (Chemicals Manufacturing)
7. INDORAMA NETHERLANDS BV.,
(Investment Holding)
8. INDORAMA NETHERLANDS COOPERATIEF
U.A. (Investment Holding)
9. INDORAMA PETROCHEMICALS, P.T.
(Purified Terephthalic Acid Manufaccturing)
10. INDORAMA POLYCHEM INDONESIA, P.T.
(Polymerization Resin Industry)
11. INDORAMA POLYESTER INDUSTRIES
INDONESIA, P.T. (Polyester Filament Yarn Industry)
12. INDORAMA PROJECTS AND SERVICES Ltd.,
India (Consulting and Investment Holding)
13. INDORAMA SYNTHETICS (India) Ltd.,
India (Chemicals Manufacturing)
14. INDORAMA SYNTHETICS Tbk, P.T.
(Spinning Mills and Investment Holding)
15. INDORAMA TRADE AND DEVELOPMENT
SERVICES, P.T. (General Trading)
16. INDORAMA VENTURES INDONESIA, P.T.
(Polyester Filament Yarn and Polyester Resin Industry)
17. INDORAMA VENTURES PUBLIC LISTED
LTD,. Thailand (Polyester Filament Yarn Industry)
19.
IRAMA
DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)
20.
IRAMA
UNGGUL, P.T. (Trading and Investment Holding)
21.
ISPAT
INDO, P.T. (Steel Goods Making)
22.
ISPAT
STEEL, P.T. (Sponge Steel Manufacturing)
23.
JAKARTA
MAJU PUSAKA, P.T. (Trading and Suppliers)
24.
LOHIA
INDUSTRIES PVT.,LTD., India (Investment Holding)
25.
MITRABANGUN
GRIYA, P.T. (Office Block Rental Management)
26.
RAMATEX
Ltd., (Hong Kong), (Investment Holding)
27.
SK
WAHANA INTERNATIONAL, P.T. (Textile Industry)
28.
THONBURI
LACE Co. ,Ltd., Thailand (Investment Holding)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.18 |
|
|
1 |
Rs.102.56 |
|
Euro |
1 |
Rs.81.78 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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.