MIRA INFORM REPORT

 

 

Report No. :

341514

Report Date :

25.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. SARI HUSADA

 

 

Registered Office :

Jalan Kusumanegara No. 173 Yogyakarta, 55002

 

 

Country :

Indonesia

 

 

Date of Incorporation :

08.05.1972

 

 

Com. Reg. No.:

AHU-AH.01.10-28234

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Milks and Food Industry

 

 

No. of Employees :

1,000 Persons

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA


BASIC SEARCH

 

Name of Company :

P.T. SARI HUSADA

 

Address :

Head Office & Factory

Jalan Kusumanegara No. 173

Yogyakarta, 55002

Indonesia

Phones             - (62-274) 512 990 (Hunting)

Fax                   - (62-274) 563 328

E-mail               - info@sarihusada.co.id

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

Land Area         - 19,000 sq. meters

Building Space  - 12,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branch Office

Cyber Building 2, 15th Floor

Jalan H.R. Rasuna Said Block X-5 No. 13

Kuningan, Setiabaudi

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 2996 1555 (Hunting)

Fax                   - (62-21) 2996 6150

E-mail               - customerservice@sarihusada.co.id

Building Area    - 30 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

a.   8 May 1972 as P.T. SARI HUSADA

b.   19 June 1997 as P.T. SARI HUSADA Tbk

c.   19 July 2007 as P.T. SARI HUSADA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. C2-6200.HT.01.04.TH.1997

   Dated 4 July 1997

-  No. AHU-42639.AH.01.02.TH.2009

   Dated 31 August 2009

-  No. AHU-AH.01.10-28234

   Dated 6 September 2011

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.140.508.1-092.000

The Directorate General of Food and Drug Control/Department of Health

No. 5773/D/72

Dated 30 June 1972

The Department of Trade and Industry

- No. 411/DJAI/IUT/1986

   Dated 28 October 1988

- No. 178/Industri/1988

   Dated 15 November 1988

 

Related Company :

a.   P.T. DANONE DAIRY INDONESIA (Dairy Milk Processing)

b.   P.T. NUTRICIA INDONESIA SEJAHTERA (Infant Food Processing Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 369,914,104,500.-

Issued Capital                                 : Rp.   93,681,104,500.-

Paid up Capital                               : Rp.   93,681,104,500.-

 

Shareholders/Owners :

a. PTSH HOLDING SINGAPORE PTE., LTD.         - Rp. 93,653,123,500.-

b. Mr. Sung Chun Piu                                         - Rp.          6,157,500.-

c. Public (below 5%)                                           - Rp.        21,823,500.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Milks and Food Industry

 

Production Capacity :

a.   S.G.M.                                      -   8,700,000 cans p.a.

b.   S.N.M. Instant                           -   1,400,000 cans p.a.

c.   L.L.M.                                       -   1,400,000 cans p.a.

d.   Vitalac                                      -   1,700,000 cans p.a.

e.   Quaker Oats                              -      600,000 cans p.a.

f.    Full Creams                               -   2,500,000 cans p.a.

g.   Milco UHT                                 - 22,700,000 cans p.a.

 

 

Total Investment :

Owned Capital         - Rp. 369.9 billion

 

Started Operation :

1974

 

Brand Name :

LACTAMIL, SGM

 

Technical Assistance :

None

 

Number of Employee :

1,000 persons

 

Marketing Area :

Local       - 100%

 

Main Customers :

Distributors, Supermarket, Hypermarket, Dispensary

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. FONTERA INDONESIA

b. P.T. FRISIAN FLAG INDONESIA

c. P.T. NESTLE INDONESIA

d. P.T. ULTRAJAYA MILK INDUSTRY Tbk

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   ABN AMRO Bank N.V.

      Jakarta Stock Exchange Building 11th Floor

      Jalan Jend. Sudirman Kav. 52-53

      Jakarta Selatan

b.   P.T. Bank CENTRAL ASIA Tbk

      Menara BCA Grand Indonesia

      Jalan M.H. Thamrin No. 1

      Jakarta Pusat

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 2,120.0 billion

2013 – Rp. 2,260.0 billion

2014 – Rp. 2,375.0 billion

 

Net Profit (estimated) :

2012 – Rp. 148.4 billion

2013 – Rp. 162.7 billion

2014 – Rp. 178.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Olivier Pierredon

Directors                                         - a. Mr. Joris Bernard

                                                        b. Mr. Ahmad Hamdani

                                                        c. Mrs. Melly Pandjaitan

                                                        d. Mrs. Oi Po Leong

                                                        e. Mr. Fen Wei Chin

                                                        f. Mr. Helder Abrantes

                                                        g. Mr. Rachmat Suhhapy

                                                        h. Mr. Rahmanto Jatmiko

                                                        i. Mr. Alished Etezadi

                                                        j. Mr. Evan Indrawidjaya

 

Board of Commissioners :

President Commissioner                  - Mr. Pascal Yves De Petrini

Commissioner                                 - Mr. Martin Heinrich Hoelscher

 

Signatories :

President Director (Mr. Olivier Pierredon) or one of the Directors (Mr. Joris Bernard, Mr. Ahmad Hamdani, Mrs. Melly Pandjaitan, Mrs. Oi Po Leong, Mr. Fen Wei Chin, Mr. Helder Abrantes, Mr. Rachmat Suhhapy, Mr. Rahmanto Jatmiko, Mr. Alished Etezadi or Mr. Evan Indrawidjaya) which must be approved by Board of Commissioner.

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. SARI HUSADA (P.T. SH) was established in Yogyakarta on 8 May 1972 with an authorized capital of Rp. 350,000,000 fully issued and paid up. The company was founded by P.T. TIGA RAKSA (a private company) and P.T. KIMIA FARMA (a state-owned pharmacy company) as the original shareholders. Its article of association had been changed a couple of times. In June 1983 P.T. SARI HUSADA went public selling 23.87% of its shares to the Indonesian public. In 1985 P.T. KIMIA FARMA sold its shares to INDOSUEZ ASIA INVESTMENT SERVICES Ltd of Hong Kong, and concurrently the authorized capital was increased to Rp. 35,611,625,000 with the issued capital amounting to Rp. 26,702,575,000. Later in June 1997 the word Tbk (Terbuka) was added behind its name to comply with regulation of public listed company. In the middle of 1998 INDOSUEZ ASIA INVESTMENT SERVICES Ltd. resold its shares to ROYAL NUMICO B.V. of the Netherlands. In March 2000 the shareholder line-up changed again when P.T. TIGA RAKSA sold all its shares to ROYAL NUMICO B.V. (77.68%) with the rest being owned by the public (22.32%). P.T. SARI HUSADA was registered as having an authorized capital of Rp. 115,000,000,000 with an issued and paid up capital of Rp. 91,761,587,000.

 

In November 2005, ROYAL NUMICO B.V. bought again the public shares so the shareholder position of P.T. SH is ROYAL NUMICO B.V. (93.52%) and the public (6.48%). In December 2006, the Capital Investment Coordinating Board (BKPM) and the Capital Investment Supervisory Board (BAPEPAM-LP) approved P.T. SH to go public. Therefore, P.T. SHT would carry out a tender offer of shares to the public at Rp. 6,550 per share from the previous price of Rp. 6,350 per share. Having completely conducted share tender offer, P.T. SH has not been registered in the Jakarta Stock Exchange and Surabaya Stock Exchange anymore.

 

In April 2007, the Indonesia Stock Exchange ceased temporarily the trading of P.T. SH’s shares and since 19 July 2007 the company has formally gone private and its name has been changed to P.T. SARI HUSADA.

 

The latest according to notary documents Mr. Buchari Hanafi, SH., no. 02 dated 6 July 2011 the company authorized capital was raised to Rp. 369,914,104,500 issued capital to Rp. 93,681,104,500 entirely paid up. With this development the composition of its shareholders has been changed to become PTSH HOLDING SINGAPORE PTE., LTD., (99.97%), Mr. Sung Chun Piu (0.01%) and Public (0.02%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-28234 dated September 6, 2011.

 

P.T. SARI HUSADA is the pioneer in the powdered milk and infant food industry in Indonesia. Its plant located on a 1.9 hectare land at Jalan Kusumanegara, Yogyakarta (Central Java) went into commercial production in 1972. P.T. SARI HUSADA also owns a warehouse and a packaging plant in Klaten (Central Java). Beside milk powder, the company also produces instant milk (formula) using lactose still imported from France entirely. Other than lactose, the company also uses Dichetrimatrus and Sucrose imported from the Netherlands. The company's production is marketed in the country under the already well-known brands of SGM, SNM, LLM, Vitalac, Lactamil, VitaPlus, Milco and Quaker Oats.

At first the company's production was marketed by P.T. TIGA HUSADA EKATAMA, but in June 1996 the distribution of P.T. SARI HUSADAs production has entirely been handled by P.T. TIGA RAKSA SATRIA Tbk. Other than sold in the domestic market, some 10% of the company's production is exported to Iran and several Middle East and South Asian countries. In early September 2007, P.T. SARI HUSADA launched a new product namely SGM 1,2 and 3 equipped with prebiotic content such as frukto-oligosakrida (FOS) and Galakto-oligosakrida (GOS) for supporting the growth and activity of  less harmful bacteria. Mrs. Jenny Go, the marketing director of P.T. SARI HUSADA, said that prebiotic contents (FOS and GOS) are foods that can-not be dissolved but if they are consumed, they can increase the growth and activity of microflora (bacteria) in digestion system selectively and give positive impact to the healthiness. Up to present, SGM products are the largest contributor in milk sales produced by P.T. SARI HUSADA with production volume of 50,000 tons per annum. Some 75% of which is the SGM production.

 

Currently Sarihusada has over 1,000 employees all over in Indonesia and operates production facilities in the region of Yogyakarta and Klaten, Central Java to produce a variety of products such as SGM Bunda, SGM 3, SGM 4, SGM 5, Vitalac, and Lactamil. In their product marketing practice, P.T. SH had comply with Danone Baby Nutrition Charter's internal ethical marketing guidelines. The code refers to the ethics and principles of the World Health Organization's International Code of Marketing of Breast-Milk Substitutes (WHO Code), and has a goal common with the World Health Assembly's resolution. P.T. SH also actively interacts and partners with healthcare practitioners, nutrition activists, policy makers and other stakeholders to provide education materials that are required to progress towards a healthy generation of Indonesian.

 

The increase in the welfare of the Indonesian people and the increase in Indonesian population from year to year is a tremendous opportunity for the Company to further expand its business. The Company has production facilities in the form of advanced machinery and production equipment to improve efficiency and maintain the product quality to ensure maximum profit. The Indonesian population now has more than 230 million people with a growth rate of 1-1.5% per year, and there is a big hope that income and purchasing power of Indonesian people will continue to increase. With the conditions as described above, it is expected that milk consumption among Indonesian people will increase, so the milk market in the coming years is expected to continue to grow and the UHT milk market, which is a part of it, will grow more than 15% for the next 5 years.

 

Another factor that supports the company beliefs about the optimistic market prospect for liquid dairy products is the low level of milk consumption among people in Indonesia, which in 2014 is estimated to be in the range of 12.5 liters per capita per year whereas milk consumption per capita in the neighbor countries such as Singapore, Malaysia, and Thailand is more than 3-4 times as much. With these assumptions and with the hard work of all parties, the Company is confident to achieve growth of at least 15% in 2015.

 

Until this time P.T. SH has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. On 19 July 2007 P.T. HS has go private so they did not obliged to announce its financial statement. The management of P.T. SH is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 2,120.0 billion increased to Rp. 2,260.0 billion in 2013 rose to Rp. 2,375.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 178.1 billion and the company has an estimated total networth of at least Rp. 500.0 billion. We observe that P.T. SH 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.

 

 

LOCAL COURTS & MEDIA CHECKS

 

a.   Criminal Check

 

Based information from Jakarta District Police that, P.T. SARI HUSADA has never involved in criminal report. Therefore there is no criminal report that registered on the name of P.T. SARI HUSADA.

 

b.   Bankruptcy Check

 

We have observed to the Commercial Court in Indonesia, there is no bankruptcy report that registered on the name of P.T. SARI HUSADA. No found nationwide for the previous several years.

 

c.   Litigation Checks

 

We have observed to the Court in Indonesia, there is no litigation report that registered on the name of the Subject. P.T. SARI HUSADA and his companies are not engaged in any material litigation, claims and/or arbitration, either as plaintiff or defendant and have no knowledge of any proceedings, pending or threatened, or of any facts likely to give rise to any proceedings which might materially and adversely affect the financial position business of the companies.

 

No detrimental were found with the applicant involved during the investigation. Based on some information from some reliable sources, no detrimental records were found with the applicant involved during the investigation.

 

d.   Local Media Checks

 

We have checked several local media such as, among others: Kompas, Bisnis Indonesia, Koran Tempo, Media Indonesia, Republika, Koran Neraca, Merdeka, the Jakarta Post, Warta Ekonomi Magazine, SWA Magazine and others. From the mentioned above media, there is no local media reported article on P.T. SARI HUSADA.

 

The management of P.T. SH is led by Mr. Olivier Pierredon (51) a professional manager of France with experience in milk processing industry. 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. SARI HUSADA is sufficiently fairly good for business cooperation.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.10

UK Pound

1

Rs.100.89

Euro

1

Rs.73.96

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.