|
Report Date : |
14.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDO-BHARAT RAYON |
|
|
|
|
Registered Office : |
Menara
Batavia, 16th Floor, Jalan K.H. Mas Mansyur
Kav. 126, Jakarta
10220 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
05.09.1980 |
|
|
|
|
Com. Reg. No.: |
AHU-AH.01.10-12520 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is engaged in viscose rayon staple fibre, acrylic fibre industry and side-product of chemicals like anhydrous sodium suphates, carbon bi-sulphates and sulphuric acids. |
|
|
|
|
No of Employees : |
1,230 |
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 |
A2 |
|
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 |
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 |
P.T. INDO-BHARAT RAYON
Head
Office
Menara
Batavia, 16th Floor
Jalan K.H. Mas Mansyur Kav. 126
Jakarta
10220
Indonesia
Phones -
(62-21) 5722452 (Hunting)
Fax - (62-21) 5722417
E-mail - jktoff@adityabirla.com
Building Area - 25 storey
Office Space - 230 sq. meters
Region - Commercial
Status - Rent
Factory
Desa
Cilangkap
Purwakarta
West
Java
Indonesia
Phones -
(62-22) 202041-44
Fax - (62-22) 201349
E-mail - arun.khosla@adityabirla.com
Land Area - 600,000 sq.
meters
Building Area - 230,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
5
September 1980
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The
Ministry of Law and Human Rights
- No. AHU-AH.01.10-12520
Dated 7 August 2009
- No. AHU-AH.01.10-19117
Dated 28 July 2010
- No. AHU-AH.01.10-23948
Dated 26 July 2011
- No. AHU-59453.AH.01.02.TH.2013
Dated 19 November 2013
- No. AHU-AH.01.10-51262
Dated 28 November 2013
Company Status :
Foreign Investment
(PMA) Company
Permit by the
Government Department :
a. The
President of the Republic of Indonesia
No.
B-22/Pres/6/1980
Dated 3 June 1980
b. The Capital
Investment Coordinating Board
- No.
16/I/PMA/1983
Dated 24 June 1983
- No. 39/II/PMA/1983
Dated 8 December 1983
- No.
415/III/PMA/1991
Dated 1 July 1991
- No.
207/III/PMA/1992
Dated 16 March 1992
- No.
95/II/PMA/1993
Dated 21 September 1993
- No.
227/II/PMA/2002
Dated 22 October 2002
- No.
129/II/PMA/2004
Dated 11 August 2004
- No.
80/II/PMA/2005
Dated 31 March 2005
- No.
25/II/PMA/2007
Dated 25 January 2007
c. The
Department of Industry
No.
427/Sk/X/1977
Dated 24 October 1977
d. The
Department of Finance (Directorate General of Tax)
NPWP No. 01.002.087.3-092.000
Related Company :
A Member Company of
the ADITYA BIRLA Group (see attachment)
CAPITAL
AND OWNERSHIP
|
Capital
Structure :
Authorized
Capital : US$
13,000,000
Issued
Capital : US$ 10,000,000
Paid
up Capital : US$ 10,000,000
Shareholders/Owners
:
a. LONDON EUROPEAN ASSOCIATES Ltd., of
Mauritius - US$ 4,500,000.-
b. HART GLOBAL Ltd., of Mauritius - US$
4,220,000.-
c. GRASIM INDUSTRIES Ltd. of India -
US$ 500,000.-
d. CHARMNOX Ltd., of Hong Kong - US$ 380,000.-
e. GRAND ISLAND Ltd., of Mauritius -
US$ 300,000.-
f. MAHASMUTH INVESTMENT Pte., Ltd.,
Singapore - US 100,000.-
BUSINESS
ACTIVITIES
|
Lines of Business :
a. Viscose Rayon
Staple Fibre and Acrylic Fibre Industry
b. Investment Holding
Production Capacity :
a. Viscose Rayon
Staple Fibres - 150,000 tons p.a.
b. Anhydrous Sodium
Sulphates - 100,720 tons p.a.
c. Carbon
Di-Sulphates - 25,400 tons p.a.
d. Sulphuric
Acids -
87,050 tons p.a.
e. Acrylic
Fibres -
12,000 tons p.a.
f. Electric Power - 28 MW
g. Export Import of
Viscose Staple Fiber and others
Total Investment :
a. Equity
Capital - US$
10.0 million
b. Reinvested Profit - US$ 38.0 million
c. Loan
Capital -
US$ 267.3 million
d. Total
Investment - US$ 315.3 million
Started Operation :
1982
Brand Name :
IBR
Technical Assistance
:
ADITYA BIRLA of India
Number of Employee :
1,230 persons
Marketing Area :
Export - 80%
Local - 20%
Main Customer :
Buyers in Sri Lanka,
India, Bangladesh, Australia, South Korea, Japan etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. INDONESIA
TORAY SYNTHETICS
b. P.T. SOUTH PACIFIC VISCOSE
c. P.T. SUSILA INDAH SYNTHETIC FIBERS
d. P.T. POLYSINDO EKA PERKASA Tbk
Business Trend :
Growing
BANKER,
AUDITOR & LITIGATION
|
Bankers :
a. P.T. Bank MANDIRI Tbk
Jalan M.H.
Thamrin No. 5
Jakarta Pusat
Indonesia
b. CITIBANK, Jakarta Branch
Landmark Building
Jalan Jend. Sudirman No. 1
Jakarta 12910
Indonesia
c. Hongkong and Shanghai Banking Corp., Ltd.
World Trade Center, 3rd Floor
Jalan
Jend. Sudirman Kav. 29-31
Jakarta Selatan
Indonesia
Auditor :
Internal Auditor
Litigation
:
No
litigation record in our database
FINANCIAL
FIGURE
|
Annual
Sales (estimated) :
2011
– Rp. 3,585.0 billion
2012
– Rp. 3.612.0 billion
2013
– Rp. 3,710.0 billion
2014
– Rp. 1,905.0 billion (January – June)
Net
Profit (estimated) :
2011
– Rp. 378.0 billion
2012
– Rp. 382.0 billion
2013
– Rp. 396.9 billion
2014
– Rp. 214.0 billion (January – June)
Payment
Manner :
Almost
Promptly
Financial
Comments :
Satisfactory
KEY
EXECUTIVES
|
Board of Management :
President Director - Mr.
Sunay Bhagwant Kamat
Directors - a.
Mr. Halim Setiono
b. Mr. Ajay Kumar Gupta
c. Mr. Chaplendu Kumar Dutta
d. Mr. Arun Khosla
e. Mr. Ashok Saboo
f. Mr. Subhas Kumar Sharma
g. Mr. Shibnath Agarwalla
Board of Commissioners :
President Commissioner - Mr. Krishna Kishore
Maheshwari
Vice
President Director -
Mr. Chandru Hassaram Mahtani
Commissioners - a. Mr.
Shailendra Kumar Jain
b. Mr. Kumar Mangalam Birla
c. Mr. Rajashree Birla
d. Mr. Neerja Birla
e. Mr. Askaran Agarwala
f. Mr. Hari Krishna Agarwal
Signatories :
President Director (Mr. Sunay Bhagwant Kamat)
or one of Directors (Mr. Halim Setiono, Mr. Ajay Kumar Gupta, Mr. Chaplendu
Kumar Dutta, Mr. Arun Khosla, Mr. Ashok Saboo or Mr. Subhas Kumar Sharma or Mr.
Shibnath Agarwalla) which must be approved by Board of Commissioners.
CAPABILITIES
|
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
OVERALL
PERFORMANCE
|
P.T. INDO-BHARAT RAYON (P.T. IBR) was incorporated in
September 1980 with an authorized capital of US$ 8,422,000 entirely was issued
and paid up. Initially the founding shareholders of the company were Birla AG
of Switzerland, International Industrial Management and Investment Corporation
of Panama, Mirapa Ltd., of Liechtenstein, Thakral Holdings (HK) Ltd., of Hong
Kong, The Gwalior Rayon Silk Mfg. Co. Ltd., of India, Hong Kong Indonesia Group
Inc., of Hong Kong, Charmnox Ltd., Hong Kong, A.T.E. Maskapai Private Ltd., of
Singapore (all companies are the members of the BIRLA Group based in India) and
P.T. BEKLANI. In 1983, its authorized capital was raised to US$ 32,000,000
wholly was issued and paid up. In May 2001 the authorized capital was decreased
to US$ 13,000,000 issued capital of US$ 10,000,000 entirely paid up. The latest
shareholders of the company are LONDON EUROPEAN ASSOCIATES Ltd., of Mauritius
(45%), HART GLOBAL Ltd., of Mauritius (42.2%), GRASIM INDUSTRIES Ltd., of India
(5%), CHARMNOX Ltd., of Hong Kong (3.8%), GRAND ISLAND Ltd., of Mauritius (3%)
and MAHASMUTH INVESTMENT Pte., Ltd., Singapore (1%).
The latest according to the revision of notary deed Mr.
Ashoya Ratam, SH., no. 117 dated 22 July 2013 the company board of director and
the board of commissioner was 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.01.10-51262 dated July 22, 2013.
P.T IBR is a member of the BIRLA INDONESIA Group, a large
business group based in India, and in Indonesia the Group set up several
companies like P.T. SUNRISE BUMI TEXTILES, P.T. ELEGANT TEXTILE INDUSTRY both
engaged in spinning mills, P.T. INDO-BHARAT RAYON in viscose rayon fiber and acrylic
fiber industry and P.T. INDO RAYA KIMIA in carbon disulfhide manufacturing.
P.T. IBR is a Foreign Capital Investment (PMA) company,
engaged in viscose rayon staple fibre, acrylic fibre industry and side-product
of chemicals like anhydrous sodium suphates, carbon bi-sulphates and sulphuric
acids. Its plant is located at Desa Cilangkap, Purwakarta, West Java, on a land
of some 60.0 hectares. The plant commenced production in 1982 and its operation
has kept on expanding and its production capacity has been increasing for a
couple of times. The plant produces some 150,000 tons of viscose rayon staple
fibers, 10,720 tons of anhydrous sodium sulphates, 25,400 tons of carbon
bi-sulphates, 87,050 tons of sulphuric acids and 12,000 tons of acrylic fibers
respectively per annum. Besides, the company also owned and manages a power
plant by producing 28 MW of power plant. The plant has absorbed a total
investment of US$ 315.3 million, coming from own capital of US$ 10.0 million,
reinvested profit of US$ 36.5 million and rest from loans.
At present P.T. IBR has production capacity of 192,000
tons of viscose staple fibre per annum. Mostly of basic material like pulp
supplied through its subsidiary ADITYA BIRLA which operates in Canada and South
Africa. Meanwhile, carbon di-sulphide supplied by sister company P.T. INDO RAYA
KIMIA. P.T. IBR pioneered and has become the leading manufacture of viscose
rayon staple fibre in Indonesia. Employing state of the art machinery and
technology, rayon fibre production has stead increased from the initial annual
capacity of 16,500 metric tons to 89,500 metric tons per days.
In addition, it’s produce Sulphuric Acid and Carbon
di-Sulphide for captive use in the rayon fibre production process. This
chemical production is vital to safeguarding consistency in both quality and
production from supply fluctuation.
P.T. IBR Rayon Fibre Uses:
§ Apparel (accessories,
blouses, dresses, jackets, lingeric, linings, millinery)
§ Home Furnishing (bedspreads,
blankets, curtains, draperies, sheets, slipcovers, tablecloths, upholstery)
§ Industrial Uses
(industrial products, medical surgical products, non woven products, tire
cords)
§ Other Uses (feminine
hygiene products)
The company's products are 20% sold locally to P.T. INDO
LIBERTY TEXTILE, P.T. SUNRISE BUMI TEXTILE, and P.T. ELEGAN TEXTILE INDUSTRI.
Besides, the products is also supplied to paper industries and detergent
industries and also distributed through distributor P.T. AKR CORPINDO Tbk. Some
80% exported to India, China, Pakistan, Srilanka, Bangladesh, Australia, South
Korea, Philippine, Iran, New Zealand, Japan, Singapore and other countries.
Besides, P.T. IBR also engaged in investment holding by controlling some 40%
shares of P.T. INDO RAYA KIMIA engaged in carbon disulphide manufacturing. We
see that P.T. IBR operation has been growing in the last five years.
Year 2013 was a very challenging for the trade and
business in general and for Polyester sector in particular where it undergone very
turbulent period. The Global economic slowdown had an impending and prolonged
impact on the demand that has been further exacerbated by the excessive supply
due to over capacity of PTA, Polyester Fiber and Filament yarn in Asia, mainly
led by China. This has triggered a global down-cycle in the polyester chain,
which has been lasting for an abnormally longer period and where many of the
Asian and Global manufacturers suffered considerably. The product spreads
across the polyester value chain continued to remain depressed due to stiff
competition and the softening trend in cotton and Rayon prices during the year.
Polyester and Raw material chain apparently reflect the current uncertainty and
slow down of the global economy and the overall growth of polyester production
has slowed down in the past two years 2012 and 2013. With the effective
capacity of about 17 million tons added in the last two years, PTA operating
dropped to 76% in 2013 from 90.2% and likely to fall below 74% in 2014 with
rationalization of the regional capacities. Polyester polymer production
reaching 61.68 million tons, a growth of 3.2 million tons or 5.5% in the year
2013, marginally improved from4.6% in 2012 as the global economy recovered in
the second half of 2013. Longer-term growth rates are trending better with over
6% look impressive compared with other major petrochemical related business
sectors.
Global economy is expected to grow by 3.7% in 2014 and
3.9% in 2015, primarily due to recovery in advanced economies and the emerging
economies to expand by 5.10% and 5.4% respectively. Indonesian economy is
projected to grow moderately at 5.3% - 5.5% in 2014 and 2015 and the growth
will be primarily driven by strong domestic consumptions and modest increase in
exports to its major trading partners. The Indonesian rupiah (IDR) is likely to
remain under pressure in early 2014 amid uncertainty over the election results
and U.S. Fed tapering. Domestic environment for manufacturing sectors expect to
pass through a tough phase with the proposed hike in energy and manpower costs.
Both Gas prices and Electricity tariff are slated for a significant
increase in 2014 putting pressure on cost competitiveness
of the domestic manufacturers.
Industry is taking up the matter with the ministry for
phasing out the hike over a period of time instead at one go. With regard to
polyester upstream sector, with the additional capacity of Fiber and Filament
yarn going on stream, domestic market is expected to face a stiff price
competition for commodity products. However, the Company with its strong
customer base and with a diversified product mix is firmly placed to remain
competitive and maintain its leadership position. The delay in finding a
solution to its long pending secured debt restructuring continues to remain a
setback to carry out its growth plans. To expedite the process, the Company has
recently submitted an updated restructuring plan with alternate option to its
secured creditors that are under active consideration. Post restructure, the
Company will have a sound and healthy financial base with its debts brought
down to sustainable levels. This would in turn enable the company to raise
finance from market to meet its short and long terms investments to fund its
growth plans. All of these efforts will improve the performance of the Company
significantly, and to reposition it to the forefront of the polyester industry
and retain its strategic and leadership position.
According to the Department of Industry, the Indonesian
viscose rayon staple fiber production in 2006 amounted to 835,904 tons
increased to 976,000 tons in 2007 and rose again to 1,008,106 tons in 2008.
Meanwhile production viscose rayon in 2009 1,008,106 tons drop to 600,000 tons
in 2010 and higher to 640,000 tons in 2011 to 680,000 tons in 2012 and
increased to 712,000 tons in 2013. It is projected the production of viscose
rayon will be increase in 2013 due to amelioration of the economic in the
country. The capacity, production and utility of the national viscose rayon
staple fiber are picture on the following table.
|
Description |
2009 |
2010 |
2011 |
20012 |
2013 |
|
Capacity (tons) |
1,218,765 |
1,218,765 |
1,218,765 |
1,218,765 |
1,218,765 |
|
Production (tons) |
1,008,106 |
600,000 |
640,000 |
680,000 |
712,000 |
|
Utility (%) |
82.71 |
49.23 |
52.51 |
55.79 |
58.42 |
Until this time P.T. IBR has not been registered with
Indonesian Stock Exchange, so that they had not obliged to announce their
financial statement. The management of P.T. IBR 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. 3,585.0 billion rose to Rp.
3,612.0 billion in 2012 increased to Rp. 3,710.0 billion in 2013. As per 30
June 2014 the sales turnover has amounted at Rp. 1,905.0 billion with a net
profit of Rp. 214.0 billion. Its projected the sales turnover will be higher by
at least 6% in 2015. The company has an estimated total networth of at least
Rp. 495.0 billion. We observe that P.T. IBR 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. IBR is led by Mr. Sunay Bhagwant
Kamat (58), a professional manager with 28 years experience in viscose rayon
staple fiber and acrylic fiber manufacturing and distribution. The management
is well experienced and handled by professional managers in the above business.
They have wide relation with home and overseas private businessmen as well as
with the government sector. 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 fraudulent dealings. We observed that management’s reputation in said
business is sufficiently fairly good. P.T. INDO-BHARAT RAYON is sufficiently
fairly good for business transaction.
List
of the BIRLA INDONESIA Group Members
1.
ELEGANT
TEXTILE INDUSTRY, P.T. (Spinning Mills)
2.
INDO-BHARAT
RAYON, P.T. (Viscose Rayon Staple Fiber and Acrylic Fiber Industry and
Investment Holding)
3.
INDO
LIBERTY TEXTILE, P.T. (Spinning Mills)
4.
INDO
RAYA KIMIA, P.T. (Specialty Chemical Manufacturing)
5.
SUNRISE
BUMI TEXTILE, P.T. (Spinning Mills)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.24 |
|
UK Pound |
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.77.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIS |
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.