MIRA INFORM REPORT

 

 

Report Date :

09.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. GRAND TEXTILE INDUSTRY

 

 

Registered Office :

Wisma Argo Manunggal, 15th Floor, Jl. Jend. Gatot Subroto Kav. 11, Jakarta Selatan 12930

 

 

Country :

Indonesia

 

 

Date of Incorporation :

23.12.1970

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Weaving Industry (Denim and Chambray)

·         Spinning Industry

 

 

No of Employees :

2,860

 

 

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

 

 

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. GRAND TEXTILE INDUSTRY

 

 

Address

 

Head Office

Wisma Argo Manunggal, 15th Floor

Jl. Jend. Gatot Subroto Kav. 11

Jakarta Selatan 12930

Indonesia

Phone               - (62-21) 2523636 (hunting)

Fax.                  - (62-21) 2523737

Email                - grantex.industry@grandtex.co.id

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

Building Area     - 32 storey

Office Space      - 820 sq. meters

Region              - Commercial

Status               - Rented

 

Factory

Jl. Jend. A. Yani Km. 7 No. 127

Cikadut, Bandung

West Java

Phones             - (62-22) 706565 (hunting)

Faxt.                 - (62-22) 705958

Telex                - 28354 GRANTX  BD

Land Area         - 22.5 hectares

Building Space  - 18.0 hectares

Region              - Industrial Zone

Statues             - Owned

 

Date of Incorporation :

23 December 1970

 

Legal Form :

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

 

Company Reg. No. :    

The Ministry of Law and Human Rights

a. No. C2-10229.HT.01.04.TH. 89

    Dated 7 November 1989

b. No. AHU-54390.AH.01.02.Tahun 2008

    Dated 25 August 2008

c. No. AHU-AH.01.10-13370

    Dated 27 March 2014

 

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

  a. The Department of Finance

      NPWP No. 01.118.497.5-063.001

 

  b. The Capital Investment Coordinating Board

      No. 946/Sekr./SP.PMDN/1971

    Dated 24 June 1971

 

  c. The Directorate General of Textile Industry

      No. 306/Dir.D/VIII/1971

      Dated 8 July 1971

 

Related/Affiliated Company :

A member of the ARGO MANUNGGAL Group

 

CAPITAL AND OWNERSHIP

 

 

Capital Structure :

Authorized Capital          - Rp. 280,000,000,000.-

Issued Capital                - Rp. 110,000,000,000.-

Paid up Capital              - Rp. 110,000,000,000.-

 

Shareholders/Owners :

a. P.T. ARGO MANUNGGAL TEXTILE INDUSTRY            - Rp. 107,534,400,000.- (97.40%)

b. Mr. Cheng Sau Kie                                                     - Rp.     1,076,920,000.- (  0.98%)

c. Mr. Karman Widjaja                                                    - Rp.        918,680,000.- (  0.83%)

d. Mr. The Taty                                                              - Rp.        875,000,000.- (  0.79%)

 

BUSINESS ACTIVITIES

 

 

Lines of Business :

a. Weaving Industry (Denim and Chambray)

b. Spinning Industry

 

Production Capacity :

a. Denim Fabrics           - 36,000,000 yards p.a.

b. Woven Yarns             -        32,000 bales p.a.

 

Total Investment (estimated) :

a. Owned Capital           - Rp. 110.0 billion

b. Loan Capital              - Rp. 200.0 billion

c. Total Investment         - Rp. 310.0 billion

 

Started Operation :

1972

 

Brand Name :

GRANDTEX

 

Technical Assistance :

None

 

Number of Employee :

2,860 persons

 

Marketing Area :

Domestic (Local)    - 20%

Export                    - 80% (USA, Asia and Europe)

 

Main Customer :

a. Garment Industries

b. Textile Wholesales/Distributors

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Apac Inti Corpora Tbk

b. P.T. Panasia Indosyntex

c. P.T. Puji Palapa Textile

d. P.T. Chandratex Sejati

e. P.T. Sri Rejeki Isman

f.  P.T.

 

Business Trend :

Growing but only slowly

 

BANKER, AUDITOR & LITIGATION

 

 

Bankers :

a. P.T. Bank MANDIRI Tbk

    - Jl. Lapangan Statisun No. 1

      Jakarta Barat

    - Jl. Asia Afrika No. 92

      Bandung, West Java

 

b. P.T. Bank CENTRAL ASIA Tbk

    Jl. Asia Afrika No. 122-124

    Bandung, West Java

 

c. The Bank of Tokyo – Mitsubishi Ltd

    Midplaza Building 1-3rd Floor

    Jl. Jend. Sudirman Kav. 10-11

    Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

 

Annual Sales (estimated) :

2010 – Rp.    870.0 billion

2011 – Rp.    990.0 billion

2012 – Rp. 1,126.0 billion

2013 – Rp. 1,280.0 billion

 

Net Profit (Loss) :

2010 – Rp. 52.0 billion

2011 – Rp. 59.0 billion

2012 – Rp. 66.8 billion

2013 – Rp. 76.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

 

Board of Management :

President Director                            - Mr. Ir. Willy Arsyad. Rizal

Directors                                         - a. Mr. Teguh Tjendana

                                                        b. Mrs. Aurelia Wynn Sutedja

 

Board of Commissioner :

President Commissioner                   - Mr. The Nicholas

Commissioners                                - a. Mrs. Marcia Sutedja

                                                        b. Mrs. The Taty

 

Signatories :

President Director (Mr. Ir. Willy Arsyad Rizal) or one of the directors (Mr. Teguh Tjendana or Mrs. Aurelia Wynn Sutedja) which must be approved by the Board of Commissioners (Mr. The Nicholas, Mrs. Marcia Sutedja or Mrs. The Taty)

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

 

OVERALL PERFORMANCE

 

 

P.T. GRAND TEXTILE INDUSTRI abbreviated P.T. GRANDTEX doubling as its trading style, was established in 1970 with an authorized capital of Rp 200,000,000.-, issued and paid up capital of Rp 80,000,000.- The previous founding shareholders are Mr. Utama Yoswara, Mr. Ade Tjahjadi Yoswara, Mr. Iskandar Widyadi AKA Ng Chan Chuan, Mr. Budijono Widjaja AKA Oey Boen Seeng, Mrs. Lanny Widjaja AKA Oey Bie Lan, Mr. Luhur Wibowo Hidajat and Mrs. Suwarty Tanudjaja, they are all Chinese-Indonesian entrepreneurs. The shareholders and capital structure have frequently been revised. Since September 1994 the authorized capital was raised to Rp 27,000,000,000.-, issued and paid up capital to Rp 8,000,000,000.-

 

In 2000, some 95% shares of P.T. GRANDTEX ware taken over by P.T. ARGO MANUNGGAL TEXTILE INDUSTRY, a national private company of which the majority shares are controlled by Mr. The Ning King and his family members.  The amendment to Deed was approved by the Minister of Law and Human Rights through its Decree No. C2-10229.HT.01.04.TH.89, dated November 7, 1989. The latest based on Notarial Deed of Miki Tanumiharja, Sh., in March 2013 the authorized capital was raised again to Rp. 280,000,000,000.- of which Rp. 110,405,000,000.- was issued and fully paid up. The capital structures and shareholder composition of P.T. CAS in details are as shown on page-3 of this report. The latest amendment to Deed was approved by the Minister of Law and Human Rights through its Decree No. AHU-AH.01.10-13370 dated March 27, 2014.

 

P.T. GRANDTEX obtained a domestic investment company (PMDN) facility issued by Investment Coordinating Board (BKPM) in 1971 for dealing with textile industry with production capacity of 36.million yards of denim fabrics and 32,000 bales of woven yarns per annum.  Its’ plant located at Desa Cikadut Jl. Jend. A. Yani Km. 7 No. 127, Bandung, West Java, where it stands on a 22.5 hectares.  The plant has been in operation since 1972 with an installed production capacity of 2,200,000 yards of denim and chambray fabrics per month.  But since 1980 it produced only denim and chambray fabrics, Light to heavy weight (ring and classic, slubs & cross hatch vintage, indigo blue, dark blue, black, stretch and fancy).  Some 80% of the denim products are exported to the USA, Japan, European and Middle East countries and the rest is locally marketed.  Their main customers in USA (Dillard, DKNY, Esprit, GAP, Land’s, Guess, Gymborne, Hush Puppies, Levi’s, Liz Claiborne, May & Co, Polo, Tommy Hilfiger, Vanity Fair Co, and Calvin Kelin), Asia (Lee, Lee Cooper, Wrangler, Lea) and Europe (Next, Zara, Esprit, C&A, H&M, Karstadt, Neckermann, La Redoutte, Marks & Spencer, Naf Naf, Otto Versand, Dickiess, Teddy Smith and Tom Taylor).  We observed that P.T. GRANDTEX is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, demand for textile and textile products such as garment has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) the Indonesian  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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011 rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012 and as of 30 November 2013 amounted to 1,360.7 thousand tons (US$ 4,833.1 million).  The export volume and value of the national TPT products in 2005 to as of 30 November 2013 are pictured on the following table.

 

Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2005

2006

2007

2008

2009

2010

2011

2012

   2013 *

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

398.0

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

7,304.8

6,847.7

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

1,508.5

1,360.7

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

5,278.1

4,833.1

 

Until this time P.T. GRANDTEX has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of the Company is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 990.0 billion increased to Rp. 1,126.0 billion in 2012 rose again to Rp. 1,280.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 76.0 billion and the company has an estimated total net worth of at least Rp. 450.0 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. GRANDTEX is led by Mr. Ir. Willy Arsyad Rizal (62) as president director, a professional manager with 34 years experience in textile industry. In his day-to-day activities, he is assisted by Mr. Teguh Tjendana and Mrs. Aurelia Wynn Sutedja, both as director respectively.  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. GRANDTEX is sufficiently fairly good for business transaction. But owing to economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.26

UK Pound

1

Rs.97.51

Euro

1

Rs.77.94

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.