MIRA INFORM REPORT

 

 

Report Date :

21.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. UNILEVER OLEOCHEMICAL INDONESIA

 

 

Registered Office :

Graha Unilever Building, Jl. Jend. Gatot Subroto Kav. 15, Jakarta 12930

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.01.2012

 

 

Com. Reg. No.:

No. AHU-AH.01.10-29175

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Engaged as dealing with Palm-based Oleochemical Industry

Subject is the Member Company of the UNILEVER Group

 

 

No of Employees :

1,280 (Planned)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Yet to commenced Operation

 

 

Payment Behaviour :

Unknown 

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

 

 


Name of Company

 

P.T. UNILEVER OLEOCHEMICAL INDONESIA

 

 

company Address

 

Head Office

GRAHA UNILEVER Building

Jl. Jend. Gatot Subroto Kav. 15

Jakarta 12930

Phones             - (021) 526 2112 (hunting)

Fax.                  - (021) 526 2046

Building Area     - 22 storey

Office Space      - 200 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Kawasan Ekonomi Khusus (KEK),

Sei Mangkei, Simalungun,

Medan, North Sumatra

Indonesia

Land Area         - 18 hectares

Region              - Industrial Zone

Status               - Onwed

 

 

Date of Incorporation

 

03 January 2012

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Department of Law and Human Rights

a. No. AHU-00613.AH.01.01.Tahun 2012

    Dated 04 January 2012

b. No. AHU-AH.01.10-29175

    Dated 17 July 2013

Company Status

 

Foreign Investment (PMA) Company

 

 

Permits by the Government Department

 

a.         The Department of Finance

      NPWP No. 03.199.729.9-063.000

 

b.         The Capital Investment Coordinating Board

      No. 3510/1/PPM/I/PMA/2011

      Dated 28 December 2011

 

 

Ultimate Holding Company

 

UNILEVER N.V./PLC (Investment Holding)

 

 

Holding Company

 

MAVIBEL (Maatschappij voor Internationalle Beleggingen) B.V. (Investment Holding)

 

Affiliated/Associated Companies

 

a. P.T. UNILEVER INDONESIA Tbk., (Consumer Goods Manufacturing)

b. P.T. UNILEVER BODY CARE INDONESIA Tbk. (Body Care Product Manufacturing)

c. A member of the UNILEVER Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - Rp. 460,000,000,000.-

Issued Capital                      - Rp. 143,515,000,000.-

Paid up Capital                    - Rp. 143,515,000,000.-

 

Shareholders/Owners :

  a.  MAVIBEL B.V. of the Netherlands        - Rp. 143,371,000,000.- (99.9%)

  b.  MARGA B.V. of the Netherlands          - Rp.        144,000,000.- (  0.1%)

 

BUSINESS ACTIVITIES

 

Lines of Business :

Palm-based Oleochemical Industry

 

Production Capacity :

Palm-based Oleochemicals – 200,000 tons per annum

 

Total Investment (planned) :

  a. Equity Capital                 - Rp.    460.0 billion

  b. Loan Capital                   - Rp. 1,040.0 billion

  c. Total Investment             - Rp. 1,500.0 billion

 

Started Operation :

December 2014 (planned)

 

Brand Name :

UNILEVER OLEOCHEMICAL INDONESIA

 

Technical Assistance :

MAVIBEL B.V., of the Netherlands

 

Number of Employee :

1,280 persons (planned)

 

Marketing Area :

Domestic          - 20.0%

Export               - 80.0%

 

Main Customer :

P.T. UNILEVER INDONESIA Tbk

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. MUSIM SEMI MAS

b. P.T. ECOGREEN OLEOCHEMICALS

c. P.T. SINAR OLEOCHEMICAL

d. P.T. WILMAR NABATI INDONESIA

e. P.T. SALIM IVOMAS PRATAMA

f.  P.T. FLORA SAWITA CHEMINDO

 

Business Trend :

Growing

 

 


BANKER, AUDITOR & LITIGATION

 

Bankers :

a.  ABN-AMRO Bank NV

     Jl. Jend. Sudirman Kav. 52-53

     Jakarta Selatan

b.   P.T. Bank MANDIRI Tbk.

      Jl. Gatot Subroto Kav. 36-38

      Jakarta SElatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

None

 

Net Profit :

None

 

Payment Manner :

No Comment

 

Financial Comments :

No Comment

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Vikram Agarwal

Directors                                   - a. Mr. Ir. Agung Rianto

                                                  b. Mr. Mandeep Singh Tuli

                                                  c. Mr. Biswaranjan Sen

                                                  d. Mr. Bradley Dam

 

Board of Commissioners :

President Commissioner - Mr. Pradip Menon

Commissioners                          - a. Mr. Sancoyo Antarikso

                                                  b. Mr. Raghuraman Ramakrishnan

 


Signatories :

President Director (Mr. Vikram Agarwal) or one of the Directors (Mr. Ir. Agung Rianto, Mr. Mandeep Singh Tuli, Mr. Biswaranjan Sen or Mr. Bradley Dam) which must be approved by the Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

OVERALL PERFORMANCE

 

P.T. UNILEVER OLEOCHEMICAL INDONESIA (P.T. UOI) was established in Jakarta based on Notarial Deed number 01 dated January 3, 2012 was made by Irma Devita Purnamasari, SH., a notary in Jakarta with the authorized capital of Rp. 460,000,000,000.- of which Rp. 115,000,000,000.- was issued and fully paid up. The founding shareholders of the company are  MAVIBEL (Maatschappij voor Internationale Beleggingen) B.V. (99.9%) and MARGA B.V. (0.01%), both of the Netherlands.  The Deed of establishment has been approved by the Ministery of Law and Human Rights of the Republic of Indonesia through its Decision Letter No. AHU-00613.AH.01.01.Tahun 2012 dated January 4, 2012. 

 

The articles of association of the company have been revised, most recently by notarial deed number 312 dated May 23, 2013 made by Notary Irma Devita Purnamasari, SH., the issued capital was raised to Rp. 143,515,000,000.- and fully paid up.  But, no changes have been effected in term of its shareholding composition to date. The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-29175 dated July 17, 2013. 

 

P.T. UOI is the member company of the UNILEVER Group, a large-sized company group focusing its business on manufacturing and distribution of commercial goods, food and beverage, cosmetic and body care products.

 

In accordance with article 3 (three) of the articles of association contained in the deed of establishment, the scope of activities of the Company is primarily in industry and trading of chemicals. The company’s registered office located at Graha Unilever Jl. Jend. Gatot Subroto Kav. 15, South Jakarta and the company can open branch offices or representative offices at home and abroad.

 

P.T. UOI obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) in December 2011 for dealing with palm-based oleochemical industry with its plant located at Kawasan Ekonomi Khusus (KEK), Sei Mangkei, Simalungun, Medan, North Sumatra, where it stands on 18 hectares landsite. The factory was built since mid-2013 and is expected to begin commercial operation in the end of 2014. Mr. Suncahyo Antarikso, Commissioner P.T. UOI explained that the plant's production capacity reaches 200,000 tons of palm-based oleochemical per year, with an investment of Rp 1.5 trillion. Furthermore, from palm-based oleochemical materials will be recycled into surfactants, soap, noodles and fatty acids. According to the plan most of the results produced by PT UOI will be absorbed by PT. Unilever Indonesia Tbk., and the companies that still have affiliation with the Unilever Group.

 

Generally, the demand for palm-based oleochemical has been growing in the last five years in the country in the line with the growth of consumer goods industries, margarine, soap and cosmetic industries. The solid and steady domestic economy, increased government activity in infrastructure development and improving investment climate in Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.

 

The global economy is expected to grow faster in 2013 than it did in 2012, although it still face risks stemming from the slowing economic growth in developed countries and the on going crisis in Europe.  Despite the slowing global economy, Indonesia’s economy still grew quite briskly in 2012.  Indonesia’s economic growth reached 6.2% in 2012, or slightly below the projection contained in the 2012 Revised State Budget and 2011’s economic growth of 6.5%.

 

 Indonesian Economic Indicators

  2009

  2010

  2011

  2012

  2013

Gross Domestic Product
   (annual percentage change)

   4.6

   6.1

   6.5

   6.2

   5.8

Consumer Price Index
   (annual percentage change)

   4.8

   5.1

   5.4

   4.3

   8.4

Government Debt  (percentage of GDP)

  28.6

  27.4

  26.6

  27.3

  28.7

Exchange Rate  (GBP / USD)

10,389

 9,074

 8,773

 9,419

11,500

Population  (in millions)

     -

 237.6

     -

     -

     -

Poverty  (percentage of population)

  14.2

  13.3

  12.5

  11.7

  11.5¹

Unemployment  (percentage of labor force)

   7.9

   7.1

   6.6

   6.1

   6.3

Reserves  (in billion USD)

  66.1

  96.2

 110.1

 112.8

  99.4

Source: Central Bureau of Statistics and bank of Indonesia

 

P.T. UOI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   We are difficult to assess the company's finances, because since the company establishment up to now the company it has never conducted any business activities.   But, the financial strength of this company was only Rp. 143,515,000,000.- which was a paid-up capital according to its notary deed.   So far we have never heard that the company registered with the black list of Bank of Indonesia (Central Bank) or involved in the civil case that settled through the country court.

 

The management of P.T. UOI is led by Mr. Vikram Agarwal (50) as president director.  He is a professional manager of India.  In daily activities he is assisted by four directors namely Mr. Ir. Agung Rianto (51), Mr. Mandeep Singh Tuli (41), Mr. Biswaranjan Sen (46) and Mr. Bradley Dam (42).  Looks like, the company is managed by a number of experts in the field of palm-based oleochemical industry. They have extensive relationships with many private companies at home and overseas.  Their relationship with the government sector is quite good.  So far we have never heard that the board of directors and commissioners of the company involved in business malpractices or detrimental cases that settled through the court. The company’s litigation record is clean and they have never involved in civil or criminal cases or politics in the country.

 

Considering P.T. UNILEVER OLEOCHEMICAL INDONESIA (P.T. UOI) has yet been commercial operation we recommend to treat prudently in extending a loan to the company.

 

Attachment:

 

Unilever to Begin Operation of North Sumatra Palm Oil Plant By End of 2014

By Vanesha Manuturi on 05:21 pm Jun 05, 2014

Jakarta. Unilever Oleochemical Indonesia, a sister company of Unilever Indonesia, plans to begin commercial operation of its palm oil processing plant in North Sumatra by the end of this year.

The plant, wholly owned by Unilever, will process oleochemicals — chemicals derived from plant and animal fats — such as fatty acids and glycerols, which are commonly used in various domestic products, including soaps and detergents.

Unilever is a global domestic goods company, co-headquartered in Britain and the Netherlands, with products distributed across 170 countries.

“Globally, Unilever is the biggest palm oil consumer in the world… We make an  effort to trace our products as we strive towards environmental sustainability,” said Sancoyo Antarikso, director and corporate secretary of Unilever Indonesia, during the company’s public presentation in Jakarta on Wednesday.

The oleochemical plant, estimated to cost approximately Rp 1.5 trillion ($126 million), is located in the Sei Mangkei Special Economic Zone in Simalungun, North Sumatra. According to Sancoyo, the project has absorbed roughly half of the estimated cost, or around Rp 750 billion.

Up to 20 percent of the plant’s production will be allocated to Indonesia, while the remainder will be exported around the world, according to Sancoyo.

“We also hope that this plant will accelerate growth in that economic corridor… There will be indirect growth in the area alongside this plant, from transportation to even catering,” said Sancoyo, alluding to Sei Mangkei’s status in the government’s 15-year infrastructure development plan that is aimed to spur economic growth in less-urbanized areas.

He added that Unilever Oleochemical Indonesia (UOI) received a 5-year tax holiday from the Indonesian government, which will kick in after the company has made commercial sales, along with a 2-year extension, after the first five years.

Unilever Indonesia recently handed out Rp 5.3 trillion — equivalent to its entire net income last year — as dividends to its shareholders.

Shares of Unilever Indonesia rose 0.75 percent to Rp 30,275 on the Indonesia Stock Exchange (IDX) on Wednesday.

The listed consumer goods giant operates eight factories — six in Tangerang and two in Surabaya, East Java — which produce the 40 different brands it sells throughout Indonesia.

Unilever Indonesia announced it has set aside roughly Rp 1.4 trillion for its capital expenditure this year, which will be used to increase production capacity and improve the distribution of its ice cream products, according to Sancoyo

Source: http://www.thejakartaglobe.com/business/unilever-begin-operation-north-sumatra-palm-oil-plant-end-2014/

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.