MIRA INFORM REPORT

 

 

Report Date :

15.11.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. MULTI GARMENJAYA

 

 

Registered Office :

Jalan Karawang No. 1, Kelurahan Batununggal, Kecamatan Batununggal, Bandung, 40272, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.07.1987

 

 

Com. Reg. No.:

AHU-AH.01.10-03014

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing

 

 

No of Employees :

7,000

 

 

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

 

 

BASIC SEARCH

 

Name of Company :

P.T. MULTI GARMENJAYA

 

A d d r e s s :

Head Office & Factory (will be moved)

Jalan Karawang No. 1

Kelurahan Batununggal, Kecamatan Batununggal

Bandung, 40272

West Java

Indonesia

Phones             - (62-22) 727 2221, 727 2222

Fax                   - (62-22) 720 0162

E-mail               - export@multigarmenjaya.co.id

Website            - http://www.multigarmenjaya.co.id

Land Area         - 20,000 sq. meters

Building Space  - 17,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branch Office

Jalan Soekarno Hatta No. 578

Bandung, 40284

West Java

Indonesia

Phones             - (62-22) 756 9808, 756 9789

Fax                   - (62-22) 756 2052

Land Area         - 25,000 sq. meters

Building Space  - 20,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory (New Factory under still completed)

Jalan Moh. Toha Km. 7.3

Cisirung, Pasawahan

Bandung, 40256

West Java

Indonesia

Phones             - (62-22) 5200 433 (Hunting)

Fax                   - (62-22) 522 3628

Land Area         - 27,000 sq. meters

Building Space  - 20,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

15 July 1987

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. AHU-26531.AH.01.02.TH.2011

   Dated 26 May 2011

- No. AHU-AH.01.10-03014

   Dated 29 January 2014

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.455.738.3-441.000

The Department of Industry and Trade

No. 330/32.73.12/AI/6/T2/XI/1987

Dated 14 November 1987

 

Related Company :

P.T. ADHI CHANDRA DWI UTAMA (Printing Industry)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 150,000,000,000.-

Issued Capital                                 : Rp. 103,500,000,000.-

Paid up Capital                               : Rp. 103,500,000,000.-

 

Shareholders/Owners :

a. Mr. Tony Tjahjadi                                                          - Rp. 87,975,000,000.-

    Address : Jl. Dalem Kaum No. 29

                    Kelurahan Bandung Kidul, Kecamatan Lengkong

                    Bandung, West Java

                    Indonesia

b. Mrs. Dra. Ingrid Sutjiadi                                               - Rp. 15,525,000,000.-

    Address : Komplek Lemigas No. 5, RT. 005 RW. 002

                    Kelurahan Cisaat, Kecamatan Sumur

                    Bandung, bandung, West Java

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity :

Garment (T-Shirts, Shirts, Pants, Jeans, etc.)         - 250,000 dozens p.a.

 

Total Investment :

Owned Capital                                 - Rp. 150.0 billion

 

Started Operation :

1990

 

Brand Name :

Cardinal

 

Technical Assistance :

None

 

Number of Employee :

7,000 persons

 

Marketing Area :

Export    - 65%

Local       - 35%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BUSANA RAMA TEXTILE

b. P.T. CITRA BUSANA ADIMAS

c. P.T. DUA SEKAWAN RESPATI

d. P.T. METRO EXIM INDONUSA

e. Etc.

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Asia Afrika 12-124

      Bandung, West Java

      Indonesia

b.   P.T. Bank DANAMON INDONESIA Tbk

      Jalan Asia Afrika 180

      Bandung, West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 270.0 billion

2012 – Rp. 288.0 billion

2013 – Rp. 295.0 billion

2014 – Rp. 153.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 21.6 billion

2012 – Rp. 23.0 billion

2013 – Rp. 25.0 billion

2014 – Rp. 13.8 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Tony Tjahjadi

Director                                          - Mr. Sujanto Gondowidjojo

 

Board of Commissioners :

Commissioner                                 - Mrs. Dra. Ingrid Sutjiadi

 

Signatories :

President Director (Mr. Tony Tjahjadi) or the Director (Mr. Sujanto Gondowidjojo) which must be approved by Board of Commissioner

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

OVERALL PERFORMANCE

 

P.T. MULTI GARMENTJAYA (P.T. MGJ) was established in Bandung, West Java on 15 July 1987 with an authorized capital of Rp. 500,000,000 issued capital of Rp. 250,000,000 entirely paid up. The founding and shareholders of the company are Mr. Tony Tjahjadi and Mrs. Dra. Ingrid Sutjiadi, both are Indonesian businessmen of Chinese descents. Its article of association had been changed a couple of times. In May 2005 the company authorized capital was increased to Rp. 5,000,000,000 issued capital to Rp. 4,000,000,000 entirely paid up. The latest according to the revision of notary deed Mrs. Jeny Suherman, SH., no. 46 dated 20 November 2013 the company authorized capital was increased to Rp. 150,000,000,000 issued capital to Rp. 103,500,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become Mr. Tony Tjahjadi (85%) and Mrs. Dra. Ingrid Sutjiadi (15%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-03014 dated January 29, 2014.

 

P.T. MGJ has been operating since 1990 engaged in the field of garment manufacturing. Its plant is located at Jalan Karawang No. 1, Batununggal, Bandung, West Java standing on 20,000 sq. meters. Besides, the company also expanded its plant located at Jalan Moh. Toha Km. 7.3, Pasawahan, Bandung, West Java standing on 27,000 sq. meters. According information in the next year 2015 the whole factory will be moved into Jalan Moh. Toha Km. 7.3, West Java. The company has been expanded frequently to increasing production capacity. The company produces of T-shit, Shirt, Pants, Blouses, Jeans, Jackets, and others. According information most of raw materials uses from locals. The produce of garment quality products, the company equipped with 6,000 units of modern sewing machine, cutting machine, and others. According information some 65% of the products exported to USA, Japan, Middle East, Russia while the rest marketed locally through supermarket, department store in Jakarta and others. Besides, some of the products marketed through distributor and groceries in Bandung, Jakarta and other traditional markets. The whole products uses of CARDINAL brand.

 

The global economic slowdown since October 2008 has brought negative impact to the company on account of the increasing production cost and basic material prices. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). We observed that P.T. MGJ is classified as a medium sized company of its kind in the country of which the operation has been fluctuating the last five years.

 

The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis. At a time when the average national industrial utilization rate fell to under 20% in 2008, TTP plants on the other hand were operating at an utilization rate of above 81.6%. This was attributable to the ability of textile and garment producers to maintain the utilization rate of plants at a high level by aggressively stepping up exports. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327,300 tons (US$ 4,351.9 million) in 2004 to 369,500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450,900 ton (US$ 7,801.5 million) in 2011 decline to 450,200 tons (US$ (7,304.8 million) in 2012 and increased to 470,200 tons (7,501.0 million) in 2013.

 

The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (US$ 5,563.3 million) in 2011 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012 increased to 1,633.1 tons (US$ 5,293.6 million) in 2013. The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2013 are pictured on the following table.

 

      Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

7,304.8

7,501.0

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

1,508.5

1,633.1

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

5,278.1

5,293.6

 

Until this time P.T. MGJ has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. MGJ 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 Rp. 270.0 billion rose to Rp. 288.0 billion in 2012 increased to Rp. 295.0 billion in 2013. As from January to June 2014 the sales has reached at least Rp. 153.0 billion with a net profit of at least Rp. 13.8 billion and projected to go on rising by at least 6% in 2015. The company has an estimated total networth of at least Rp. 105.0 billion.

 

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. MGJ is led by Mr. Tony Tjahjadi (61) a businessman with experience in garment manufacturing. Daily activity he is assisted by Mr. Sujanto Gondowidjojo (59) as director. 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. MULTI GARMENJAYA is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.65

UK Pound

1

Rs.96.54

Euro

1

Rs.76.70

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.