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MIRA
INFORM REPORT
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Report No. : |
505770 |
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Report Date : |
30.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PT. ICI PAINTS |
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Registered Office : |
Bintaro Jaya Sektor 7, Titan Center Lantai 9-11, Jl. Boulevard Bintaro
Blok, B7/B1 No. 05, Kelurahan Pondok Aren, Kecamatan Pondok Aren, Kota
Tangerang Selatan 15224, Banten |
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Country : |
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Financials (as on) : |
2017 [Summarized] |
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Date of Incorporation : |
11.08.1971 |
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Com. Reg. No.: |
No. AHU-AH.01.03-0055761 |
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Legal Form : |
Private Limited Liability Company or Perseroan Terbatas (PT) |
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Line of Business : |
Manufacture of Chemicals and Chemical Products |
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No. of Employees : |
550 [2018 / 2017] |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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Source
: CIA |
COMPANY IDENTIFICATION |
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Company Name |
PT. ICI PAINTS |
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Address |
Bintaro Jaya
Sektor 7, Titan Center Lantai 9-11, Jl. Boulevard Bintaro Blok B7/B1 No. 05 |
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Telephone |
+62217456777 |
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Fax |
+62217456091, +622174869000 |
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Mobile Phone |
N.A. |
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Email |
icipnts@indosat.net.id |
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Web |
www.dulux.co.id |
PROFILE |
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Address |
Bintaro Jaya Sektor 7, Titan Center Lantai
9-11, Jl. Boulevard Bintaro Blok B7/B1 No. 05 |
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Date of Establishment |
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Start Operation |
1972 |
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Legal Status |
Private Limited Liability Company or Perseroan Terbatas (PT) |
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Legalization (historical) |
No. Y.A.5/275/5 |
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Government Permit (s) |
Presiden Republik Indonesia |
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Significant change |
PT. ICI Paints Indonesia (the Company) was established in Jakarta on
August 11, 1971, with the authorized capital of USD 750,000, of which USD
300,000 was issued and paid up by the founding shareholders namely Imperial
Chemical Industries Ltd. of U.K. (90%) and PT Dwi Satria Utama (10%). In 1977, the authorized capital of the Company was increased to USD
1,433,100, of which entirely issued and fully paid up. In 1985, the
authorized capital was increased further to USD 2,006,340, of which entirely
issued and fully paid up. At the same year, shares on behalf of Imperial
Chemical Industries Ltd were taken over by Imperial Chemical Industries Plc,
also from In 1988, the authorized capital of the Company was again increased,
namely to USD 4,012,680, of which entirely issued and fully paid up. In 1990,
a new shareholder namely PT. Finconesia joined in. Notarial act of the Company has changed many times, such as in 1996, when
the Company’s authorized capital was increased to USD 8,407,520, of which
entirely issued and fully paid up. At the same time, PT Finconesia withdrew
from shareholder structure, and its shares were taken over by On November 12, 2008, the Company published a notarial act, yet
without changing its capitalization structure and shareholder
structure. On January 16, 2014 the Company published a notarial act, yet without
changing its capitalization structure. Meanwhile, shareholders of the Company
consisted of PT. Dwi Satrya Utama (45%) and On May 22, 2015, the capitalization structure and shareholder
structure of the Company remain the same. On June 7, 2016, the Company published a notarial act, yet
without changing its capitalization structure and shareholder
structure. As far as we know, there are no more changes in the Company’s notarial
act as published by the Ministry of Justice. |
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Capitalization |
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SHAREHOLDERS & MANAGEMENT |
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Shareholders |
Total No. of Shareholders: 2 |
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Name of Shareholders |
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Management Board |
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Name |
Mr. Manuelito Jose Pacheco De Dios AKA Jun De Dios |
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Position |
President Director |
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Nationality |
Filipino |
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Name |
Mr. Irawan Bahtera |
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Position |
Director |
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Nationality |
Indonesian |
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Name |
Mr. Liem Ricky Limandibrata |
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Position |
Director |
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Nationality |
Indonesian |
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Supervisory Board |
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Name |
Mr. Jeremy Paul Rowe |
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Position |
President Commissioner |
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Nationality |
Singaporean |
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Name |
Mr. Maurits Daniel Rudolf Lalisang |
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Position |
Commissioner |
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Nationality |
Indonesian |
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Name |
Mr. Lee Boon How |
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Position |
Commissioner |
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Nationality |
Singaporean |
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Management Assessment |
The management is deemed to have sufficient experience and industry
expertise to manage subject properly. |
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Authorized Signatories |
Mr. Manuelito Jose Pacheco De Dios AKA Jun De Dios as President
Director and Mr. Liem Ricky Limandibrata and Mr. Irawan Bahtera as Directors
which must be approved by shareholders meeting. |
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Affiliate (s) / Associate (s) |
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KEY DATA ON OPERATIONS |
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Registered Activities |
SIC Code 20 : Manufacture of chemicals and chemical products |
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Employee |
Per 2017 |
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Business Category |
SIC Code 20.3 : Manufacture of paints, varnishes and similar coatings,
printing ink and mastics |
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Line of Business |
SIC Code 20.30 : Manufacture of paints, varnishes and similar
coatings, printing ink and mastics |
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Product & Capacity |
- Decorative Paints - 56,000 tons p.a. |
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Status of Investment |
Foreign-invested Company |
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Sales Territory |
Local |
80% |
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International |
20% |
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Main Items Imported |
Chemicals and Machineries |
Netherlands |
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Main Items Exported |
Paints and Resins |
Asian |
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Major Customers |
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Major Supplier |
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Terms of Payment |
Purchase Payment |
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Activity Comment |
Began the operation in 1972, PT.
ICI Paints Indonesia (the Company) is
a foreign invested company that is engaged in paint industry. Currently,
head office and registered address of the Company are located in a
commercial area, precisely at Titan Center Lantai 9-11, Jl. Boulevard Bintaro
Blok B7/B1 No. 05, Bintaro Jaya Sektor 7, Kelurahan Pondok Aren,
Kecamatan Pondok Aren, Kota Tangerang Selatan, 15224, Banten,
Indonesia. We believe it is leased for a long-term period. Previously, the Company was located at Plaza DM, Lantai 5, Jl Jend.
Sudirman Kav. 25, Kelurahan Karet, Kecamatan Setiabudi, Jakarta Selatan,
12920, DKI Jakarta, Indonesia. Moreover, the Company’s head office is also supported by a factory,
which is located at Jl. Jababeka IV, Block V No. 64,
Kelurahan Karang Baru, Kecamatan Cikarang Utara, Kab. Bekasi,
17530, Jawa Barat, Indonesia, and by a warehouse that is located at Jl.
Raya Bogor Km 35.8, Kelurahan Mekarsari, Kecamatan Cimanggis, Depok, 16452,
Jawa Barat, Indonesia. The Company is now part of business of Akzo Nobel Decorative. Akzo
Nobel is one of companies operating under the Global Fortune 500, and
consistently taking the top rank on Dow Jones Sustainability Indexes. It
operates in more than 80 countries, with 55,000 employees throughout the
world. Meanwhile, based on information from the Capital Investment
Coordinating Board (BKPM), the Company has planted a total investment of USD
20,000,000, which came from Equity Capital (50%) and Loan Capital (50%). Based on our investigation, the Company is a manufacturer of paints
and decorative paints for houses, walls, and buildings. The Company
produces paint products with various types, colors and purposes. Trade brand
of the products is “DULUX”. Currently, there are three types of superpremium
Dulux produced by the Company, namely Dulux Weathershield Max, Pearl Go, and
Dulux Light and Space. The Company also produces premium type, namely Dulux
Easy Clean, and Pentalite. As we learned, the Company still a market leader in premium paint
market through its Dulux Catylac and Maxilite, which are relatively more
affordable for the market. Some of other variants of DULUX products are,
among other: Dulux Pearl Glo, Dulux EasyClean, Dulux
Pentalite, Dulux Light & Space, Dulux Pentalite
Ceiling, Dulux Catylac Interior, Dulux V-Gloss and Dulux
V-Gloss doff. Based on the permit issued from the Coordination Board of Investment,
the Company has annually production capacity of 30,000 tons (Paints), 850
tons (Resins), and 56,000 tons (Decorative Paints). For now the Company's
production capacity has reached 100 million tons per year divided into
various segments such as decorative buildings, vehicles, and shipping. For producing its products, the Company obtains supplies of chemical
materials directly from ICI Omicron B.V., of Netherlands It is also supported
by several local companies, such as PT. BASF Indonesia, PT. Pintu Mas Mulia
Kimia, PT. Tansri Gani and PT. Nuplex Raung Resins. In its marketing, the Company’s products are 80% absorbed by local
market in Indonesia through its sole distributor, namely PT. Dwi Satria
Utama. Meanwhile, the other 20% products are exported to international market
in Asian countries. Some of the Company's other customers are, such as PT.
Catur Sentosa Adiprana Tbk, PT. Dwi Satria Utama, and others. Related to payment, the Company did not face payment default from
customers, or to suppliers and able to maintain its cash flow until today. The market of Dulux products already covers residential segment, hotel
segment and industrial segments. The products are not sold in retail scheme,
but through order in specific volume. With 21 variants, Dulux Professional
offers complete options for meeting the needs of projects of customers.
Portfolio of Dulux Professional is pan-regional. In performance, apparently, the economy downturn had no impact on
the Company, the Company’s sales increased by 10% in 2015. In 2016,
demand for the Company’s products continued to increase higher than in the
previous year, which triggered also by the launching DULUX PROFESSIONAL
with 21 new variants, which can be used for interior, exterior, wood, iron,
and are 30% more efficient, and resulted an increased in sales in that year. Meanwhile, in 2017 the Company launched a new color for the DULUX,
with the theme of LIFE IN A NEW LIGHT. The Company also aims at
expanding the market to eastern Indonesian region, by using Kota Makassar as
the hub. It is a fact that economic growth and property sector in Kota
Makassar and South Sulawesi were growing very fast. This is a good sign for
the Company to immediately take expansion in the region, since the market of
Dulux is still dominated in Java Island. Our source stated that the Company experienced an increase in its
sales in 2017. Meanwhile, in the first quarter 2018, the volume of demand for
the Company's products has increased in line with the massive number of the
construction of commercial building projects. As we learned, from the analyzing on Top Brand Index 2015 phase 1 in
Indonesia, the Company's products took the second position by TBI (Top Brand
Index) 22.0% for Cat Tembok (wall paint) category, against Avitex at the
first position. Meanwhile, for Cat Kayu Dan Besi (Wood & Metal
Paint) category, the Company's products took the third position by TBI
11.8%, against Avian at the first position and Kuda Terbang at the second
position. On Top Brand Index 2016 phase 1 in Indonesia, the Company's products
took the first position by TBI 22.1% for Cat Tembok category, against Avitex
at the second position. Meanwhile, for Cat Kayu Dan Besi category, the
Company's products took the second position by TBI 14.2%, Avian at the first
position. Next, on Top Brand Index 2017 phase 1 in Indonesia, the Company's
products took the first position by TBI 21.5% for Cat Tembok category,
against Avitex at the first position. Meanwhile, for Cat Kayu Dan
Besi category, the Company's products took the second position by TBI
14.7%, Avian at the first position. From the analyzing shown above, we learned that the Company's DULUX
product has been a market leader for the Cat Tembok category in Indonesia,
which has been seizing the first position in the two consecutive years in
2016 and 2017. Meanwhile, for 2018, based on expert research on consumer trends,
insights and behaviors, the Company introduced "Heart Wood" as
Color of the Year 2018, which is expected to support Dulux's position as one of
the market leaders of paint products in Indonesia until the end of 2018. In 2018, the Company is supported by approximately 550 employees. This
number is the same as last year in 2017. In terms of Corporate Social Responsibility (CSR) activities, it was
reported that in 2018 the Company supported the initiative of the Provincial
Government of DKI Jakarta to organize and clean the environment and to paint
the columns of Non-toll Road Lines (JLNT) at Jalan Antasari Kota Administrasi
Jakarta Selatan. The President Director of the Company hopes that Jakarta
residents, especially those who pass through the road every day, benefit and
feel the positive impact of the power of color transformation by enjoying the
colorful mural painting that tells about the art, culture and development of
Jakarta City and now. |
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Litigation |
At the time of writing this report, this Company has not been involved
in any criminal or civil cases. This statement is based on a result of search
for cases conducted at the State Court in the area where the Company was
established and operates today. |
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Factory Address |
Jl. Jababeka IV, Block V No. 64 |
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Warehouse Address |
Jl. Raya Bogor Km 35.8 |
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Registered Address |
Bintaro Jaya Sektor 7, Titan Center Lantai
9-11, Jl. Boulevard Bintaro Blok B7/B1 No. 05 |
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Previous Address |
Plaza DM, Lantai 5, Jl Jend. Sudirman Kav.
25 |
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BANKING INFORMATION |
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Banker (s) |
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Insurance |
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BUSINESS PROSPECTS |
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Business Prospects |
Paint is one of the most promising businesses in Indonesia. The high
growth of the property business is a major triggering factor that is driving
up the demand for paint. One of the factors supporting the paint business is the increasing
number of population, the number of households and the income per capita of
Indonesian society. According to research conducted by MARS Indonesia, in
2010, the consumption of paint in Indonesia reached 772,454 tons. By 2014, the
figure has become 877,459 tons. Market value of paint products in Indonesia
is predicted to reach IDR 10 trillion - IDR 12 trillion each year. As many as 70% of all paint needs to reach 650,000 tons per year can
be met by the industry in the country to date. Nevertheless, Indonesia's
paint trade balance is still in deficit position in the last three years,
where in 2016, the import of paint reached USD 243.67 million and its exports
valued at USD 70.73 million. The national paint market is not too largely depending on new property
or building projects, which factually are of corporation segment. The largest
contribution into the national paint market is actually coming from the
retail segment, which contributes about 60-70%. Meanwhile, the other contributions
come from the corporate segment and new property projects. Based on information shown above, we believe that paint industry in
Indonesia is still quite prospective. |
FINANCIAL STATEMENT |
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Sales Turn Over |
2015 - IDR 3,377,605,000,000 (Estimated) |
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Total Assets |
As the Company is not a publicly listed company, we are unable to give
a detailed picture of the financial condition of the Company. |
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Other Financial Data |
As the Company is not a publicly listed company, we are unable to
provide details on the financial condition of the Company. |
CREDITWORTHINESS |
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Management Capability |
Good |
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Business Morality |
Adequate |
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Payment Manner |
No Complaints |
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Financial Condition |
Sound |
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Operating Trend |
Up |
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Conclusive remarks |
Based on the information shown above, we learned that the Company is
engaged in chemical industry as the manufacturer of paints and decorative
paints for houses, walls, and buildings since 1972. The Company is now part
of business of AkzoNobel Decorative. Trade brand of the Company’s products
is: “DULUX”. As we learned, the Company is managed to maintain its performance amid
the sluggish economy until 2017, as seen from the Company's DULUX product
which has been a market leader for the Cat Tembok category in Indonesia,
which has been seizing the first position in the two consecutive years by
22.1% in 2016 and 21.5% in 2017. Until this early of 2018, the Company
keeps doing product innovations, to support Dulux's position as one of
the market leaders of paint products in Indonesia until the end of 2018. We also learned, regarding to the market value of paint products in
Indonesia, and today, about 70% of all the paint needs, still can be met by
domestic industry. Moreover, the development of national paint industry
relies on the retail industry and construction industry. Outlook for both
industries is predicted to increase this year. This shows that the Company is
still quite prospective in the future. Thus, we classify the Company’s credit
rating at 'Medium to Low' risk. For security reason, we advise those wishing to make cooperation with
and to grant loans to the Company to ask for adequate collateral from the
owners and management. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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IDR |
1 |
INR 0.0048 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.