MIRA INFORM REPORT

 

 

Report Date :

29.03.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ETERCON PHARMA

 

 

Formerly Known As :

P.T. MERBABU FARMA

 

 

Registered Office :

Jl. Pos Pengumben Raya No. 8, RT.005/O05, Sukabumi Selatan, Kebon Jeruk,

Jakarta Barat 11560

 

 

Country :

Indonesia

 

 

Date of Incorporation :

04.02.1974

 

 

Com. Reg. No.:

No. AHU-AH.01.10-17674

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Pharmaceutical Manufacturing

 

 

No. of Employees :

220

 

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 – 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

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

 

 

 

 


BASIC SEARCH

 

Correct Name of company :

P.T. ETERCON PHARMA

 

A d d r e s s :

Head Office

Jl. Pos Pengumben Raya No. 8, RT.005/O05

Sukabumi Selatan, Kebon Jeruk

Jakarta Barat 11560

Phones             - (62-21) 535 5888, 5366 8600

F a x                 - (62-21) 535 5822

Building Area    - 2 storey

Office Space    - 180 sq. meters

Region  - Commercial

Status   - Rent

 

Factory

Jl. Raya Semarang – Demak Km. 9

Sayung Distrit, Demak Regency

Central Java 12345

Indonesia

Phones             - (62-24) 658 4691, 659 0576, 659 0577

F a x                 - (62-24) 658 2441

Land Area         - 12,500 sq. meters

Office Space    -   8,250 sq. meters

Region  - Commercial

Status   - Owned

 

Date of Incorporation :

a. 04 February 1974 as P.T. MERBABU FARMA

b. 31 December 1985 as P.T. MERBABU FALA

c. 31 October 1994 as P.T. EMBA MEGAFARMA

d. 28 August 2008 as P.T. ETERCON PHARMA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-656.HT.01.01.Th.86

    Dated 28 January 1986

b. No. C2-7023.HT.01.04.Th.95

    Dated 5 June 1995

c. No. AHU-88544.AH.01.02.Tahun 2008

    Dated 20 November 2008

d. No. AHU-AH.01.10-17674

    Dated 09 June 2011

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

a. The Department of Finance

   NPWP No. 01.132.404.3-052.000

 

b. The Capital Investment Coordinating Board

    No. 1724/B.1/A.8/2008

    Dated 22 August 2008

 

Parent Companies :

a. P.T.  ANTARMITA SEMBADA (Investment Holding)

b. OPTIMAX HEALTHCARE Ltd., of Hong Kong (Investment Holding)

 

Related/Affiliated Companies :

a. P.T. NOVELL PHARMACEUTICAL LABORATORIES (Pharmaceutical Manufacturing)

b. P.T. CENTURY FRANCHISINDO UTOMO (Distribution of Pharmaceutical & Medical Products)

c. P.T. IMPAC INDO MITRASEMBADA (Creative Management Engineering)

d. P.T. LAHAN ASPRINDO LESTARI (Sole Agent of Consoled Products for Indonesia)

e. P.T. PHAROS INDONESIA (Pharmaceutical Manufacturing

f.  P.T.  ANTARMITRA SEMBADA Ltd. (Import, Export, Distribution and investment holding)

g. P.T. CENTURY FRANCHISINDO UTOMO (Distribution of Pharmaceutical & Medical Products)

h. P.T. IMPAC INDO MITRASEMBADA (Creative Management Engineering)

i.  P.T. LAHAN ASPRINDO LESTARI (Sole Agent of Consolidate Products for Indonesia)

f.  P.T. ADMORE CORPORATION (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 10,000,000,000.-

Issued Capital               - Rp.   2,500,000,000.-

Paid up Capital             - Rp.   2,500,000,000.-

 

Shareholders/Owners :

a. P.T. ANTARMITRA SEMBADA           - Rp.    625,000,000.- (25%)

    Address : Jl. Pos Pengumben Raya No. 8

                    Sukabumi Selatan, South Jakarta

                    Indonesia

b. OPTIMAX HEALTHCARE Ltd.           - Rp. 1,875,000,000.- (75%)

    Address : 17/F, Hing Yip Commercial Centre

                    Des Voeux Road

                    Hong Kong

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Pharmaceutical Manufacturing

 

Production Capacity :

a. Tablets                      - 1,000,000,000 pcs. p.a.

b. Capsules                  -    500,000,000 pcs. p.a.

c. Syrups                      -        2,500,000 liters p.a.

d. Eye Drops                -           100,000 liters p.a.

e. Creams                     -           100,000 kgs. p.a.

f.  Powders                   -           300,000 kgs. p.a.

 

Total Investment :

a. Owned Capital           - Rp.   2,500 million

b. Loan Capital              - Rp. 18,000 million

c. Total Investment        - Rp. 20,500 million

 

Started Operation :

1 9 7 6

 

Brand Name :

ETERCON PHARMA

 

Technical Assistance :

Optimax Healthcare Ltd., of Hong Kong

 

Number of Employee :

220 persons

 

Marketing Area :

Domestic (Local)    -    100 %

 

Main Customers :

Hospitals, Drugstores, Dispensaries, Retail Shops, etc

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Kalbe Farma

b. P.T. Enseval

c. P.T. Abbot Indonesia

d. P.T. Kimia Farma

e. P.T. Bintang Toejoeh

f.  P.T. Tempo Scan Pacific

g. P.T. Merk Tbk

h. P.T. Sanbe Farma

i.  Etc.

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

    Jalan Permata Hijau Blok D/27

    Jakarta Selatan

b. P.T. Bank NEGARA INDONESIA Tbk

    Jalan Gatot Subroto 95, Kav. 22

    Jakarta Selatan

c. P.T. Bank OCBC NISP Tbk

    Gunung Sahari Branch

    Jalan Gunung Sahari No. 38

    Jakarta Pusat

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp.   38.0 billion

2010 – Rp.   65.0 billion

2011 – Rp.   80.0 billion

2012 – Rp.   98.0 billion

2013 – Rp. 112.0 billion

 

Net Profit (estimated) :

2009 – Rp. 1.8 billion

2010 – Rp. 3.2 billion

2011 – Rp. 4.0 billion

2012 – Rp. 5.2 billion

2013 – Rp. 5.9 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director            - Mr. Roy Rachmat Lembong

 

Board of Commissioner :

Commissioner   - Mrs. Julie

 

Signatories :

The Director (Mr. Roy rachmat Lembong) which must be approved by the Board of Commissioner (Mrs. Julie)

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

Originally named P.T. MERBABU FARMA, the company was established on February 4, 1974 with an authorized capital of Rp 10,000,000.-, of which Rp 4,000,000.- was issued and paid up. The initial founding shareholders are Mr. Albertus Tjahjono (25%), Mr. Robert Nugroho (25%), Miss Gung djatmiko Sutjiningdiah (25%) and PT. Dreswtanto Apiju (25%). On December 31, 1985 the company was renamed to P.T. MERBABU FALA and changed its name again to P.T. EMBA MEGAFARMA on October 31, 1994.  Concurrently, the authorized capital was raised to Rp 10,000,000,000.- of which Rp. 2,000,000,000.- was issued and fully paid up.  Since at the time, the shareholders of the company are Mr. Drs. Hartono Gunawan (51%), Mr. Teddy Handoko (23.4%), Mr. Handojo Sugiarto (15.6%) and PT. Great Mataram (10%).  

 

On August 28, 2008 the Company was renamed again to P.T. ETERCON PHARMA (P.T. EP).  The amendment to Deed has been approved by the Minister Law and Human Rights of the Republic of Indonesia in its Decree No. AHU-88544.AH.01.02.Tahun 2008 dated November 20, 2008.  Since that time, the whole shares of P.T. EP was taken over by PT. ANTARMITRA SEMBADA of Indonesia (a member of PHAROS Group) and OPTIMAX HEALTHCARE Ltd., of Hong Kong.

 

 Most recently by notarial Deed No. 11 dated May 31,  2011 made by Notary Retno Wahyu Ningsih, SH., the issued capital was raised to Rp 2,500,000,000.- and fully paid up.  Since that time, the shareholders of the company are P.T. ANTARMITRA SEMBADA of Indonesia (25%) and OPTIMAX HEALTHCARE Ltd., of Hong Kong (75%). 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.01.10-17674 dated June 9, 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. EP (formerly PT. Merbabu Farma) has been operating since 1976 in pharmaceutical industry with its plant located at Jalan Raya Semarang – Demak Km. 9, Sayung, Demak, Central Java. The plant produces tablet, capsule, syrup, eye drop, creams and powder medicines.  Initially the company's operations running smoothly, but since the 2000s its operations continue to decline and a change of management and shareholders. However, the operation did not go smoothly, and the mid-2007 stopped all production activities. Subsequently in 2008, the entire assets and business activities of the company was taken over by new management. Since that time the company's operations running smoothly again and the company is fully supported by its affiliated companies PT. Pharos Indonesia and PT. Novell Pharmaceutical Laboratories, both pharmaceutical companies. All of its products are marketed for domestic market to hospitals, drugstores, dispensaries, retail Shops, etc.  We observed that P.T. EP is classified as a small-sized company of its kind in the country of which the operation had been running slowly in the last three years.

 

Generally outlook we find the demand for pharmaceutical products had been rising by 6% to 7% per year in line with the development of hospitals, public clinics, dispensaries, drugstores, etc. Business prospect in the long run for pharmaceutical products is quite promising once unstable economic condition starts recovery. But competition is very tight due to a large number of similar companies operating in the country. Business position of P.T. EP is quite well for it has established a wide marketing network at home.

 

Until this time P.T. EP has not been listed in the Indonesian Stock Exchange so that the company shall not obliged to announce its financial statement to the public. We estimate that total sales turnover of P.T. EP in 2011 was estimated at Rp 80.0 billion increased to Rp 98.0 billion in 2012 and rose again to Rp 112.0 billion in 2013.  The operation in 2013 yielded an estimated net profit at Rp 5.9 billion and the company has estimated total assets at around Rp 120.0 billion.  It is projected the total sales turnover in 2014 will be higher by 8%.   We did not hear that the company has been black listed by Central Bank (Bank Indonesia) and detrimental cases were settled in the courts.

 

The Company’s management is headed by Mr. Roy Rachmat Lembong (43), as Director with experience for more than 15 years in pharmaceutical industry and trade.  He is also appointed as Director of PT. Novell Pharmaceutical  Laboratories.  He is a son of Mr. Drs. Eddie Lembong (78) is a leading indigenous businessman in pharmaceutical product industry in Indonesia with experience for more than 40 years. The management has maintained a wide business relation among private businessmen at home and abroad as well as among government sectors. So far, we have never heard that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s relation in banking sector is good enough and P.T. PI has not registered with the black list of Bank of Indonesia.

 

P.T. ETERCON PHARMA is sufficiently fairly good for business transaction. However, in view of the economic slowdown and political situation in the country is warming we recommend to treat prudently in extending a loan to the company.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.99.85

Euro

1

Rs.82.58

 

 

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%)

 

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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.