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Report Date : |
03.09.2014 |
IDENTIFICATION DETAILS
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Name : |
P.T. INDO-BHARAT RAYON |
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Registered Office : |
Menara Batavia,
16th Floor, Jalan K.H. Mas Mansyur Kav. 126, Jakarta 10220 |
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Country : |
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Date of Incorporation : |
05.09.1980 |
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Com. Reg. No.: |
AHU-AH.01.10-12520 |
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Legal Form : |
Limited Liability Company |
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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. |
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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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ECONOMIC OVERVIEW
|
Source
: CIA |
P.T. INDO-BHARAT RAYON
Head Office
Menara Batavia,
16th Floor
Jalan K.H. Mas Mansyur Kav. 126
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
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.60.61 |
|
UK Pound |
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.79.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SMN |
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.