MIRA INFORM REPORT

 

 

Report Date :

27.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. RECKITT BENCKISER INDONESIA

 

 

Formerly Known As :

P.T. RECKITT & COLMAN INDONESIA

 

 

Registered Office :

Gedung Artha Graha 20th Floor, Jalan Jend. Sudirman Kav. 52-53, Jakarta Selatan, 12190

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1991

 

 

Com. Reg. No.:

No. AHU-AH.01.10-47009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Manufacturing of Household and Personal Hygiene Products

·         Investment Holding

 

 

No. of Employees :

308

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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


BASIC SEARCH

 

Name of Company :

P.T. RECKITT BENCKISER INDONESIA

 

A d d r e s s :

Head Office

Gedung Artha Graha 20th Floor

Jalan Jend. Sudirman Kav. 52-53

Jakarta Selatan, 12190

Indonesia

Phones             - (62-21) 5140 0177 (Hunting)

Fax                   - (62-21) 5140 0178, 5140 0189

Building Area     - 28 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Raya Narogong Km. 15

Pangkalan 8, Desa Limus Nunggal

Cileungsi, Bogor

West Java

Indonesia

Phones             - (62-21) 8230 290, 8230 291, 8230 611

Fax                   - (62-21) 8230 613

Land Area         - 20,455 sq. meters

Building Area     - 15,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

a. 7 June 1993 as P.T. RECKITT & COLMAN INDONESIA

b. 10 August 2000 as P.T. RECKITT BENCKISER INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. AHU-AH.01.10-16465

            Dated 30 September 2009

-           No. AHU-10046.AH.01.02.TH.2012

            Dated 24 February 2012

-           No. AHU-AH.01.10-47009

            Dated 7 November 2013

 

Company Status :

Foreign Investment (PMA) Company

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.070.714.9-052.000

b. The President of the Republic of Indonesia

    No. B-73/Pres/3/1992

    Dated 13 March 1992

c. The Capital Investment Coordinating Board

-           No. 75/I/PMA/1992

            Dated 31 March 1992

No. 248/III/PMA/1993

            Dated 18 May 1993

No. 473/III/PMA/1993

            Dated 9 August 1993

No. 1387/II/PMA/1998

            Dated 5 October 1998

No. 09/II/PMA/2000

            Dated 18 January 2000

No. 635/III/PMA/2003

            Dated 12 June 2003

No. 1152/III/PMA/2003

            Dated 2 October 2003

No. 251/III/PMA/2004

            Dated 19 March 2004

No. 142/II/PMA/2006

            Dated 10 May 2006

 

Related Companies :

a.         P.T. CHANDRA MULIA PERMAI (Trading and Distribution of Mosquito Repellent Basic

            Materials)         

b.         RECKITT COLMAN CHISWICK (OTC) LTD (Investment Holding)

c.         RECKITT BENKISER NV (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 18,800,000.-

Issued Capital                : US$ 11,728,000.-

Paid up Capital              : US$ 11,728,000.-

 

Shareholders/Owners :

a. RECKITT BENCKISER N.V.                                                   - US$ 11,726,828.-

    Address : 1118 BH Luchthaven Schiphol

                    Boulevard 229

                                      Netherlands

b. Mr. Chander Mohan Sethi                                                    - US$             586.-

    Address : India

 


c. RECKITT COLMAN CHISWICK (OTC) LD.                              - US$             686.-

    Address : 1 (3-10) Bath Road, Slough

                    Berkshire 3UH

                                      United Kingdom

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Manufacturing of Household and Personal Hygiene Products

b. Investment Holding

 

Production Capacity :

a.         Aerosol Products (Household Insecticides

                        & Laundry Oil)                                       -          800 tons p.a.

b.         Metal Polishes                                                   -    600,000 liters p.a.

c.         Liquid Toilet Soaps                                             - 1,100,000 liters p.a.

d.         Multipurpose Cleaners                                        -    300,000 liters p.a.

e.         Antiseptics                                                        - 2,300,000 liters p.a.

f.          Liquid Lavatory Cleaners                                     - 8,100,000 liters p.a.

g.         Liquid Insecticides                                             -    303,000 liters p.a.    

h.         Air Freshness                                                    -               8 tons p.a.

 

Total Investment :

a. Equity Capital            - US$ 18.8 million

b. Loan Capital              - US$   8.4 million

c. Total Investment         - US$ 27.2 million

 

Started Operation :

1991

 

Brand Name :

Dettol, Harpic, Brasco, Airwick, Mortein, Aerosol etc.

 

Technical Assistance :

RECKITT BENKISER NV., Netherlands

 

Number of Employee :

308 persons

 

Marketing Area :

Local    - 100%

 

Main Customer :

Distributors, Supermarket, etc

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. JOHNSON HOME PRODUCTS INDONESIA

b. P.T. BUKIT PERAK

c. P.T. SINAR ANTJOL

d. P.T. BUDI EKAREKSA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         STANDARD CHARTERED BANK

            Wisma Standard Chartered Bank

            Jalan Jend. Sudirman Kav. 33 A

                        Jakarta Pusat   

            Indonesia

b.         CITIBANK N.A

                        Plaza Bapindo

                        Jalan Jend. Sudirman Kav. 55-56

                        Jakarta Selatan

                        Indonesia

c.         P.T. Bank CENTRAL ASIA Tbk

                        Wisma BCA

                        Jalan Jend. Sudirman Kav. 22-23

                        Jakarta Selatan

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 487.0 billion

2012 – Rp. 498.0 billion

2013 – Rp. 512.0 billion

 

Net Profit (estimated) :

2011 – Rp. 34.1 billion

2012 – Rp. 37.3 billion

2013 – Rp. 40.9 billion

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Ratanjit Das

Director                                     - Mr. Raman Chawla

 

Board of Commissioners :

President Commissioner - Mr. Chander Mohan Sethi

Commissioner                           - Mr. Frederic Albert Michel Duranton

 

Signatories :

President Director (Mr. Ratanjit Das) or the Director (Mr. Raman Chawla) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. RECKITT & COLMAN INDONESIA, the company was established in 1993 with an authorized capital of US$ 4,000,000 of which US$ 2,000,000 was issued and paid up. The company was founded by RECKITT, COLMAN, CHISWICK Ltd. of the UK (80%) and Mr. Sanitioso of Indonesia (20%) as the original shareholders. In 1994 Mr. Sanitioso withdrew and his shares were taken over by RECKITT, COLMAN, CHISWICK Ltd. In July 2000 the company's name was changed to P.T. RECKITT BENCKISER INDONESIA (P.T. RBI) and its authorized capital was increased to US$ 11,728,000 fully issued and paid up. The company's shareholders are RECKITT COLMAN CHISWICK Ltd., (99.66%) and Mr. Grahame Jones, a British businessman (0.34%).

 

RECKITT, COLMAN, CHISWICK Ltd., also has won a tender for the purchase of P.T. SINAR PLATACO, a mosquito coil repellent industry previously being a subsidiary of P.T. HOLDIKO PERKASA. The mosquito coil repellent plant was bought at end 2000 at the price of Rp. 610 billion.

 

P.T. SINAR PLATACO is one of the big-size mosquito coil repellent companies in the country using the well- known TIGA RODA as its brand. In October 2006 the whole shares has been controlled by RECKITT COLMAN CHISWICK Ltd., of United Kingdom (99.98), Mr. Dennis Tsakiris of Singapore (0.01%) and Mr. Chander Mohan Sethi of India (0.01%). Later in May 2008 Mr. Dennis Tsakiris pullet out and replaced by RECKITT BENCKISER N.V., of Netherlands. The composition and shareholders of the company are RECKITT BENCKISER N.V., (99.99), RECKITT COLMAN CHISWICK (OTC) LTD., (0.00%) and Mr. Chander Mohan Sethi (0.00%). Then according to the latest revision of notary deed Mr. Recky Francky Limpele, SH., No. 13 dated 10 October 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.01.10-47009 dated November 7, 2013.

 

We observe that RECKITT BENCKISER N.V., is also business stakes owners of P.T. CHANDRA MULIA PERMAI dealing with trading and distribution of mosquito repellent raw materials.

 

P.T. RBI already obtained a PMA license from Capital Investment Coordinating Board (BKPM) in 1992 to operate in the household and personal hygiene products industry. While planning to build a new plant, P.T. RBI concluded a manufacturing contract with P.T. TENSIA MANUFACTURING INDONESIA (P.T. TMI), a household & personal hygiene product manufacturer, for the production of insecticide liquid of the MORTEIN brand and antiseptic liquid and liquid soap of the DETTOL brand and also metal polish of the BRASSO brand. The above products are sold in the local market by P.T. Eresindo Jaya Trading Co., a large-scale wholesaler company in the country. In 1995 P.T. RBI diversified operations by producing (through P.T. TMI) air freshness liquid and aerosol of the HASE brand and insecticide liquid & aerosol of the SHELTOK brand. Then at the end of 1995 P.T. RBI started to build a new plant on an 8,537 sq. meter land in the Jababeka Industrial Estate, Block J-10E/F, Cikarang, West Java which has been operating since 1997.

 

However since 2005 the plant has moved to a new plant located at Jalan Raya Narogong Km. 15, Pangkalan 8, Desa Limus Nunggal, Cileungsi, Bogor, West Java on a land of 20,455 sq. meters. The plant was completed in early 2006 and since the middle of that year P.T. RBI started using its own plant. In the meantime, the manufacturing contract with P.T. TMI was discontinued. Since then the company's products have been marketed by P.T. UNIRAMA DUTANIAGA as distributor. The plant has been expanding frequently to increasing production capacity. The plant produces of Aerosol Products (Household Insecticides & Laundry Oil) of 800 tons, Metal Polishes of 600,000 liters, Liquid Toilet Soaps of 1,100,000 liters, Multipurpose Cleaners of 300,000 liters, Antiseptics of 2,300,000 liters, Liquid Lavatory Cleaners of 8,100,000 liters, Liquid Insecticides of 303,000 liters  and Air Freshness of 8 tons per annum. The above plant has absorbed an investment of US$ 27.2 million coming from owned capital of US$ 18.8 million and the rest from loans.

 

The whole products marketed locally by using DETTOL, HARPIC, BRASCO, AIRWICK, AEROSOL, MORTEIN, STREPSIL brands. Based to our investigation that P.T. RBI is also dealing with investment holding by controlling 1% shares of P.T. CHANDRA MULIA PERMAI engaged in the field of trading and distribution of mosquito repellent basic materials. We observe the operation of P.T. RBI has been growing in the last three years.

 

We generally note that the demand of consumer products has kept on increasing in line with the growth of household needs. However, the global economic crisis since October 2008, the demand had been declining. Since 2009 the demand had gone up and it is estimated to keep increasing at least 5% to 6% in two or three years to come. Meanwhile, the competition is very tight on account of many similar companies operating in the country. The business position of P.T. RBI is good on account of the company’s products are well known and having wide marketing networks in big cities in the country.

 


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

 

Until this time P.T. RBI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. RBI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 487.0 billion rose to Rp. 498.0 billion in 2012 increased to Rp. 512.0 billion in 2013 and projected to go on rising by at least 5% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 40.9 billion and the company has an estimated total networth of at least Rp. 117.0 billion. We observe that P.T. RBI 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. RBI is led by Mr. Ratanjit Das (49) a professional manager of India with experience in household and personal hygiene products manufacturing. Daily operation in Indonesia he is assisted by Mr. Raman Crawla (44) as a director. The management is handled by experienced professional and 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. RECKITT BENCKISER INDONESIA is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.49

UK Pound

1

Rs.100.32

Euro

1

Rs.79.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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