MIRA INFORM REPORT

 

 

Report No. :

305208

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. KEWALRAM INDONESIA

 

 

Registered Office :

Jl. Raya Rancaekek Km. 25, Kab. Sumedang 40, Bandung 40010, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.10.1971

 

 

Com. Reg. No.:

No. AHU-AH.01.10-29109

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Engaged as suppliers of M&S for the embroidered products for the lingerie end uses & are also catering to other leading garment labels like BHS, DUNNES STORES, PLYATEX, GAP, VIVES VIDAL, WOLF, ERRECI & KOOKAI. 

 

·         Engaged in producing embroidered allovers and laces for the garment industry which serve the leading brands like M&S, GAP, WALMART, MAST INDUSTRIES & LIZ CLAIBORNE

 

·         Subject also manufactures and supply exclusive home textile to leading international brands and retailers like SHERIDAN, SANDERSON, SEARS, WALMART, BEDMAKER, HELENE SPRINGFILED (COELIMA), DORMA, M&S, BEDECK & ELCORTE. 

 

 

No of Employees :

2470

 


 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Indonesia

A2

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

 

Name of Company

 

P.T. KEWALRAM INDONESIA

 

 

Company Address

 

Head Office & Factory

Jl. Raya Rancaekek Km. 25

Kab. Sumedang 40

Bandung 40010, West Java

Indonesia

Phones             - (62-22) 7798346, 7795012, 7794312, 7791705

Fax.                  - (62-22) 7797142, 797142, 4315145

PO Box            - 1088 BDG

Email                - marketing@kewalram.co.id

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

Land Area         - 33,150 sq. meters

Building Area    - 12,600 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Jakarta Office

Plaza BII, Menara 2, 12th Floor, Suite No. 1203

Jl. M.H. Thamrin No. 51

Jakarta 10350

Indonesia

Phones             - (62-21) 3199 0250 (hunting)

Fax.                  - (62-21) 3199 0253

Building Area    - 33 storey

Office Space    - 1,200 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

25 October 1971

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C2-9420.HT.01.04.TH.94

  Dated 18 June 1994

- No. C2-8726.HT.01.04.TH.98

  Dated 14 July 1998

- No. AHU-32469.AH.01.02.Tahun 2011

  Dated 28 June 2011

- No. AHU-AH.01.10-29109

  Dated 16 July 2013

 

 

Company Status

 

Foreign Investment Company (PMA)

 

Permits by the Government Department

 

a.   The Department of Finance

      NPWP No. 01.001.743.2-2-424.001

 

b.   The President of the Republic of Indonesia

      No. B-95/Pres/7/1971

      Dated 17 July 1971

 

c.   The Capital Investment Coordinating Board

      - No. 57/III/PMA/1978

        Dated 12 July 1978

      - No. 124/II/PMA/1994

        Dated 29 July 1994

 

 

Holding Company

 

G. KEWALRAM & SONS (hk) Ltd., of Hong Kong (Investment Holding)

 

 

Related/Affiliated Company

 

A member of the KEWALRAM CHANRAI Group of Singapore

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital            - Rp. 39,950,000,000.-

Issued Capital                  - Rp. 39,950,000,000.-

Paid up Capital                - Rp. 39,950,000,000.-

 

Shareholders/Owners :

a. G. KEWALRAM & SONS (HK) Ltd.        - Rp. 39,945,000,000.- (99.99%)

    Address : Nassau Bahamas

                    Hong Kong

                 

b. Mr. Pishu Girdhar Chanrai                  - Rp.          5,000,000.- (  0.01%)

    Address : Jl. Cikini II No. 18

                    Menteng, Central Jakarta

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

·         Engaged as suppliers of M&S for the embroidered products for the lingerie end uses & are also catering to other leading garment labels like BHS, DUNNES STORES, PLYATEX, GAP, VIVES VIDAL, WOLF, ERRECI & KOOKAI. 

 

·         Engaged in producing embroidered allovers and laces for the garment industry which serve the leading brands like M&S, GAP, WALMART, MAST INDUSTRIES & LIZ CLAIBORNE

 

·         Subject also manufactures and supply exclusive home textile to leading international brands and retailers like SHERIDAN, SANDERSON, SEARS, WALMART, BEDMAKER, HELENE SPRINGFILED (COELIMA), DORMA, M&S, BEDECK & ELCORTE. 

 

Production Capacity :

A. Initial Units

    - Spinning Yarns                       -       38,600 bales p.a.

    - Embroidery                            -  1,000,000 meters p.a.

    - Dyeing Fabrics                       -  3,360,000 meters p.a.

    - Synthetic Yarns                      -        17,912 bales

    - Grey Fabrics                          - 15,550,000 meters p.a.

    - Knitting Fabrics                      -   1,800,000 meters p.a.

 

B. Expansion Units

    - Knitting Fabrics                      -   1,200,000 meters p.a.

    - Dyeing Fabrics                       -   1,200,000 meters p.a.

    - Woven Fabrics                       - 15,000,000 meters p.a.

 

Total Investment :

A. Initial Units

a. Equity Capital         - US$.   3.0 million

b. Reinvested Profit   - US$. 19.0 million

c. Loan Capital           - US$.   5.0 million

d. Total Investment     - US$. 27.0 million

 

B. Expansion Units

a. Equity Capital         - US$.  none

b. Reinvested Profit   - US$.   21.8 million

b. Loan Capital           - US$. 108.1 billion

c. Total Investment     - US$. 129.9 billion

 

Started Operation :

1 9 7 6

 

Brand Name :

KEWALRAM INDONESIA

 

Technical Assistance :

G. KEWALRAM & SONS (HK) Ltd., of Hong Kong

 

Number of Employee :

2,470 persons

 

Marketing Area :

a. Local      - 30%

b. Export    - 70%

 

Main Customers :

Oversea buyers in Norway, Denmark, England, Austria, the Netherlands, Spain, India and USA


Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDORAMA SYNTHETICS

b. P.T. KONDOBO TEXTINDO

c. P.T. UNILON TEXTILE INDUSTRIES

d. P.T. VONEX INDONESIA

e. P.T. KUKUH MANUNGGAL FIBER INDUSTRY

f.  P.T. NATATEX PRIMA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. The Hongkong and Shanghai Bank Corp

    Jl. Asia Afrika No. 141-147

    Bandung, West Java

    Indonesia

b. P.T. Bank PERMATA Tbk

    Jl. Sawunggaling No. 1

    Bandung, West Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 1,860.0 billion

2012 – Rp. 2,008.0 billion

2013 – Rp. 2,180.0 billion

2014 – Rp. 2,360.0 billion

 

Net Profit (estimated):

2011 – Rp. 66.0 billion

2012 – Rp. 72.0 billion

2013 – Rp. 78.0 billion

2014 – Rp. 84.0 billion

 

Payment Manner :

Fairly good

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                     - Mr. Masuvathi Ramier Krishnamurthy

Director                                                - Mr. Jagdish Murli Chanrai

 

Board of Commissioners :

President Commissioner            - Mr. Pishu Girdhar Chanrai

Commissioner                           - Mr. Narain Girdhar Chanrai

 

Signatories :

President Director (Mr. Masuvathi Ramier Krishnamurthy)  or Director (Mr. Jagdish Murli Chanrai) which must be approved by Board of Commissioners (Mr. Pishu Girdhar Chanrai and Mr. narain Girdhar Chanrai)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. KEWALRAM INDONESIA (P.T. KI) was established in Indonesia based on Notarial Deed of Soelaiman Arjasmita, SH. No. 36 dated 25 October 1971 with an authorized capital of US$ 3,000,000.-, issued and paid up capital of US$ 600,000.- The founding shareholders are G. KEWALRAM & SONS (HK) Ltd., of Hong Kong, COMMENWEALTH DEVELOPMENT CORPORATION of England, Mr. Sitai Roesminen and Mrs. Mary Gultom Advani, both of Indonesia. The company's notarial act has frequently been revised and its capital was converted into Rupiah. In August 1991 the authorized capital was Rp 6,000,000,000.-, entirely was issued and paid up.  In March 1998 the authorized capital was raised to Rp 15,720,000,000.-, entirely issued and paid up. By the same time COMMENWEALTH DEVELOPMENT CORPORATION of England pulled out and replaced by other shareholder namely G. KEWALRAM & SONS (HK) Ltd., of Hong Kong.

 

On June 2011, the authorized caital was raised to Rp 39,950,000,000.- entirely was isseud and paid up.  Since then, the shareholders of the company are G. KEWALRAM & SONS (HK) Ltd., of Hong Kong (90%), GRANDPRO INVESTMENTS Ltd., of British Virgin Island (5%) and Mrs. Mary Gultom Advani of Indonesia (5%). The amendment to deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-32469.AH.01.02.Tahun 2011 dated June 28, 2011.

 

The most recently by notarial Deed No. 3 dated 2 May 2013 was made by Notary Aryanti Artisari, SH., GRANDPRO INVESTMENTS Ltd., and Mrs. Mary Gultom Advani withdrew and the whole shares are sold to Mr. Pishu Girdhar Chanrai of United Kingdom.  Since then, the shareholders of the company are G. KEWALRAM & SONS (HK) Ltd., (99.99%) and Mr. Pishu Girdhar Chanrai (0.01%). The amendment to deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-29109 dated 16 July 2013.

 

P.T. KEWALRAM INDONESIA (P.T. KI) had been operating since 1976 in integrated textile industry.  Its plant is located at Jalan Raya Rancaekek Km.25, Bandung, West Java.  The plant has frequently been expanded.  The company has grown to become a large textiles and embroidery production facility with state-of-the art equipment and fully integrated manufacturing and finishing lines in a single location.  It also has an installed capacity of 60,000 spindles.  Today, it has more 2,200 employees, producing more than 24,000 tons of yarns annually.  Mrs. Kiwa, a marketing staff of P.T. KI explained that about 30% of the company's production is sold on the domestic market and the remaining 70% being exported to Norway, Denmark, England, Austria, the Netherlands, Spain, India and USA.

 

We observed that P.T. KI is one of the leading suppliers of M&S for the embroidered products for the lingerie end uses.  They are also catering to other leading garment labels like BHS, DUNNES STORES, PLYATEX, GAP, VIVES VIDAL, WOLF, ERRECI & KOOKAI.  Besides the company produces embroidered allovers and laces for the garment industry which in turn helps to serve leading brands like M&S, GAP, WALMART, MAST INDUSTRIES, LIZ CLAIBORNE and others.  P.T. KI also manufactures and supply exclusive home textile to leading international brands and retailers like SHERIDAN, SANDERSON, SEARS, WALMART, BEDMAKER, HELENE SPRINGFILED (COELIMA), DORMA, M&S, BEDECK &ELCORTE.  We observed that P.T. KI 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, the demand for specialty chemicals such as; textile chemicals, auxiliary, dyestuff and textile raw materials tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general.  According to the Central Bureau of Statistics (BPS) 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 1,477.800 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 rose again to 1,633.1 thousand tons (US$ 5,293.6 million) in 2013.  The export volume and value of the national TPT products and garment in 2002 to 2013 are pictured on the following table.

 

 

Year

Textile Products

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

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

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

Source:  Central Bureau of Statistic

 

Until this time P.T.  KI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  We estimated that total sales turnover of the company in 2011 amounted to Rp. 1,860.0 billion increased to Rp. 2,008.0 billion in 2012 to Rp. 2,180.0 billion in 2013 and rose again to Rp. 2,360.0 billion in 2014.  The operation in 2014 yielded a net profit at least Rp. 84.0 billion and the company has a total net worth of Rp. 830.0 billion.  P.T. KI is supported by a financially strong and healthy foreign partner.  So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia).  The company usually pays its debts punctually to suppliers.

 

The management of the company is headed by Mr. Masuvathi Ramier Krishnamurthy (68), a professional manager of India citizen, with experience for more than 30 years in textile and textile products industry and trade.  In daily activities, he is assisted by a director namely Mr. Jagdish Murli Chanrai (55), a professional manager of UK citizen.  The management is also handled by a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. KEWALRAM INDONESIA is appraised to be good for business transaction.  However, in view of the 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.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.