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Report Date : |
18.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDORAMA POLYCHEM INDONESIA |
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Registered Office : |
Jalan Desa Kembang Kuning, Desa Kembang Kuning,
Kecamatan Jatiluhur, Purwakarta, 41181, West Java |
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Country : |
Indonesia |
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Date of Incorporation : |
04.10.2011 |
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Com. Reg. No.: |
AHU-49382.AH.01.01.TH.2011 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is deal with polymerization resins industry |
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No. of Employees : |
570 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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. INDORAMA POLYCHEM INDONESIA
A d d r e s s :
Head Office &
Factory
Jalan Desa Kembang Kuning
Desa Kembang Kuning, Kecamatan Jatiluhur,
Purwakarta, 41181
West Java
Indonesia
Phones -
(62-264) 207727, 202311
Fax - (62-264) 211260
E-mail - infoipci@id.indorama.net
Website - http://www.indoramaventure.com
Land Area - 200,000 sq.
meters
Building Area - 50,000 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
Building Area - 26 storey
Office Space - 2,500 sq.
meters
Region - Commercial
Status - Owned
Date of Incorporation
:
4 October 2011
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of
Law and Human Rights
No. AHU-49382.AH.01.01.TH.2011
Dated 10 October 2011
Company Status :
Foreign Investment (PMA) Company
Permit by the Government Department :
The Department of
Finance
Not Available
The Capital
Investment Coordinating Board
No. 2625/I/PPM/I/PMA/2011
Dated 29 September 2011
Related Company :
A Member Company of the INDORAMA Group (see attachment)
Capital Structure :
Authorized Capital : US$
35,000,000.-
Issued Capital : US$
30,000,000.-
Paid up Capital : US$ 30,000,000.-
Shareholders/Owners :
a. INDORAMA
NETHERLANDS B.V. -
US$ 29,997,000.-
Address : Markweg
201, 3198 NB
Europoort Rotterdam
Netherlands
b. INDORAMA
NETHERLANDS COOPERATIEF U.A. - US$ 3,000.-
Address : Markweg 201, 3198 NB
Europoort Rotterdam
Netherlands
Lines of Business :
Polymerization Resin Industry
Production Capacity :
Synthetic Resin/ Synthetic Fibers -
313,000 tons per annum
Total Investment :
a. Equity Capital - US$
30.0 million
b. Loan Capital - US$
70.0 million
c. Total Investment- US$
100.0 million
Started Operation :
December 2013 (trial production)
Brand Name :
Indorama Polychem Indonesia
Technical Assistance :
Indorama Netherlands B.V., Netherlands
Number of Employee :
570 persons
Marketing Area :
Export - 25%
Local - 75%
Main Customer :
Plastic Industries
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ALKINDO MITRARAYA
b. P.T. ARINDO PACIFIC CHEMICALS
c. P.T. BASF INDONESIA
d. P.T. ETERNAL BUANA CHEMICALS
e. Etc.
Business Trend :
Growing
B a n k e r s :
a. P.T. Bank PAN INDONESIA Tbk
Jalan Jend. Sudirman Kav. 55
Jakarta
Selatan
Indonesia
b. P.T. Bank INTERNATIONAL INDONESIA Tbk
Plaza BII, Jalan M.H. Thamrin No. 55
Jakarta Pusat
Indonesia
c. BANGKOK Bank
Jalam M.H. Thamrin No.
3
Jakarta Pusat
Indonesia
d. AMERICAN EXPRESS Bank
Jalan H.R. Rasuna Said Kav.
X-5
Jakarta Selatan
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
Annual Sales (estimated) :
2013 – None
Net Profit (estimated) :
2013 – None
Payment Manner :
Average
Financial Comments :
Satisfactory
Board of Management :
President Director - Mr. Udey Paul Singh Gill
Directors -
a. Mr. Ramesh Kumar Narsinghpura
b. 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. Ramesh Kumar Narsinghpura or Mr. Saurabh
Mishra) which must be approved by Board of Commissioner
Management Capability :
Satisfactory
Business Morality :
Satisfactory
P.T. INDORAMA POLYCHEM INDONESIA (P.T. IPI) was incorporated in
Purwakarta based on notary deed of Mrs. Novita Puspitarini, SH., No. 1 dated 4
October 2011 with the authorized capital of US$ 35,000,000 issued capital of
US$ 30,000,000 entirely paid up. The founding and shareholders of the company
are INDORAMA NETHERLANDS B.V., (99.99%) and INDORAMA NETHERLANDS COOPERATIEF
U.A., (0.01%) both are a member company of the INDORAMA Group based in
Netherlands. Based on our knowledge up to writing the report the notary
documents of the company have not undergone any changes. The company notary
deed was approved by the Ministry of Law and Human Rights in its decision
letter No. AHU-49382.AH.01.01.TH.2011 dated October 10, 2011.
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. IPI operates under Foreign Investment (PMA) facilities to deal with
polymerization resins industry. The plant is located at Jalan Desa Kembang
Kuning, Jatiluhur, Purwakarta, West Java, standing on 200,000 sq. meters
landsite. The plants will be produce of synthetic resin/ synthetic fibers of
313,000 tons per annum. The construction of the factory will absorbed an
investment of US$ 100.0 million come from owned capital of US$ 30.0 million and
the rest from loan. Synthetic resins are materials with a property of interest
that is similar to natural plant resins: they are viscous liquids that are capable of
hardening permanently. Otherwise, chemically they are very different from the
various resinous compounds secreted by plants (see resin
for discussion of the natural products). The synthetics are of several classes.
Some are thermosetting
plastics in which the term "resin" is loosely applied to
the reactant or product, or both. Resin may be applied to one of two monomers
in a copolymer (the other being called a
hardener as in epoxy resins).
Construction of the project has begun since early 2011 and completed in
November 2013. Mrs. Mila, General Affairs P.T. IPI disclosed that the
construction of the project under still processing up to present and they
installed of production machines and other equipment and finished in November
2013. According information the plant has trial production since December 2013
and the first stage will produced of 270,000 tons synthetic resin. About 75% of
P.T. IPI's production marketed in the country in the ranks of plastic
manufacturing in the country and the rest is exported to Asian countries. We
observe that P.T. IP is a new company still relatively new in trial production.
The volume production of synthetic or polyester fibers (polyester staple
fiber / PSF) throughout the semester I/2013 has stagnant when compared to half
of the 275,000 tons I/2012. Meanwhile, sluggish economic conditions that swept
Europe and the United States as the main export destination for domestic
producers to be the cause. Secretary General of Indonesian Synthetic Fiber
Producers Association (APSyFI) Redma Gita Wirawasta mentions throughout the
semester I/2013, growing demand from the United States but not significant at
just over 1%, while demand from Europe actually fell by 20% -30%.
At half I/2013 semesters, synthetic fiber production from China still
dominates. Was stock from last year are spent. Thus, subject to the impact of
domestic production," said Redma. However, optimistic Redma polyester
production in the country at half II/2013 will increase to 325,000 tons, up
until the end of the year the total production is able to reach 600,000 tons.
This exceeded the target amount of production over the past year is only
556,000 tons. In the second quarter 2013, Redma the fate of production volume
on domestic consumption to sustain the achievement of this year. He said this
year's domestic demand is still good enough that 6.6 kg per capita compared to
last year, 6.3 kg per capita.
Raising the price of fuel oil (BBM) and raising the wages he is still
able to sustain the value of the purchasing power of textile products. However,
the government can reduce the impact of record fuel prices raising the prices
of basic needs, especially food and protect the textile industry and textile
products (TPT) of the Chinese import invasion.
Indonesia is the 6th largest producer world to
polyester with a production capacity of 1.4 million tons per year.
Manufacturers of synthetic in Indonesia domestic market oriented, PSF and PFY
90% 65%. The main raw material 100% polyester is the PTA supplied the domestic
industry and MEG supplied 30% of the domestic industry, 70% of imports.
Caprolactam as raw material Nylon 100% imported. Demand for polyester textile raw materials
in the country (Indonesia) is still high because organic textile
raw material such as cotton is difficult to grow in Indonesia. So the polyester
is still an option for the textile industry in Indonesia.
National Polyester
Production, 2007 – 2012
|
Year |
Polyester Staple
Fiber (PSF) |
Polyester
Filament Yarns (PFY) |
Nylon Yarns (NY) |
|
2007 2008 2009 2010 2011 2012 |
497715 500,670 505,674 515,680 529,700 556,000 |
715,000 670,000 674,000 680,000 700,000 725,000 |
16,360 17,443 18,556 19,740 21,000 32,000 |
Source: APSyFI, Processed by ICB
Considering P.T. IPI still new in trial production December 2013, the
financial condition of the company is just as it’s paid up capital of US$ 30.0
million as stated in its article of association. The financial condition of the
company strongly depends on the financial condition of its shareholders. P.T.
IPI is backed up by the INDORAMA NETHERLANDS B.V., of Netherlands which has
financially strong behind it.
The management of P.T. IPI is led by Mr. Udey Paul Singh Gill (61) a
professional manager of India with experience in polyester filament yarn industry.
He is also President Director of P.T. INDORAMA VENTURES INDONESIA engaged in
polyester filament yarns industry. He is also professional manager of INDORAMA
Ventures Public Company, in petrochemical and chemical industry based in
Thailand. However we are sure the prime mover 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. Considering P.T. INDORAMA POLYCHEM INDONESIA still relatively new
in production December 2013, we recommend to treat prudently in business
transaction and in extending a loan to the company.
Attachment:
List of the
INDORAMA Group Members
ASHOK TEXTILE Industries, Ltd., Nepal (Textile Industry)
AUTUM INVESTMENT Ltd., Hong Kong (Holding Company)
BANGADUA PETROLEUM, P.T. (Oil & Natural Gas Exploration)
BROOKGRANGE INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)
INDOMULIA MITRAJAYA, P.T. (Shrimp Culture)
INDORAMA CHEMICALS (Thailand) Ltd., Thailand
(Chemicals Manufacturing)
INDORAMA NETHERLANDS BV., (Investment
Holding)
INDORAMA NETHERLANDS COOPERATIEF U.A.
(Investment Holding)
INDORAMA PETROCHEMICALS, P.T. (Purified
Terephthalic Acid Manufaccturing)
INDORAMA POLYCHEM INDONESIA, P.T.
(Polymerization Resin Industry)
INDORAMA POLYESTER INDUSTRIES INDONESIA,
P.T. (Polyester Filament Yarn Industry)
INDORAMA PROJECTS AND SERVICES Ltd., India
(Consulting and Investment Holding)
INDORAMA SYNTHETICS (India) Ltd., India
(Chemicals Manufacturing)
INDORAMA SYNTHETICS Tbk, P.T. (Spinning
Mills and Investment Holding)
INDORAMA TRADE AND DEVELOPMENT SERVICES,
P.T. (General Trading)
INDORAMA VENTURES INDONESIA, P.T. (Polyester
Filament Yarn and Polyester Resin Industry)
INDORAMA VENTURES PUBLIC LISTED LTD,.
Thailand (Polyester Filament Yarn Industry)
INDOSPECT ASIA PETROLEUM BANGADUA, P.T. (Oil
and Gas Exploration and Production)
IRAMA DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)
IRAMA UNGGUL, P.T. (Trading and Investment Holding)
JAKARTA MAJU PUSAKA, P.T. (Trading and Suppliers)
LOHIA INDUSTRIES PVT.,LTD., India (Investment Holding)
MITRABANGUN GRIYA, P.T. (Office Block Rental Management)
RAMATEX Ltd., (Hong Kong), (Investment Holding)
SK WAHANA INTERNATIONAL, P.T. (Textile Industry)
THONBURI LACE Co. ,Ltd., Thailand (Investment Holding)
* * *
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.35 |
|
|
1 |
Rs.100.21 |
|
Euro |
1 |
Rs.83.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.