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MIRA INFORM REPORT
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Report No. : |
488257 |
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Report Date : |
30.01.2018 |
IDENTIFICATION DETAILS
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Name : |
P.T. BUSANAREMAJA
AGRACIPTA |
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Registered Office : |
Jalan Aria Jaya
Santika RT. 02/ RW. 01, Desa
Pasir Nangka, Tigaraksa, Tangerang 15720, Banten Province |
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Country : |
Indonesia |
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Date of Incorporation : |
16.06.1993 |
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Com. Reg. No.: |
AHU-AH.01.03-0053020 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Garment
Manufacturing |
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No. of Employees : |
3,500 |
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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Maximum Credit Limit : |
US$ 1,550,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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Indonesia |
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 |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, the largest economy in Southeast Asia, 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. Indonesia’s
annual budget deficit is capped at 3% of GDP, and the Government of Indonesia
lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian
financial crisis in 1999 to 33% today. While Fitch and Moody's Investors
upgraded Indonesia's credit rating to investment grade in December 2011,
Standard & Poor’s has yet to raise Indonesia’s rating to this status amid
several constraints to foreign direct investment in the country, such as a high
level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate
infrastructure, corruption, a complex regulatory environment, and unequal
resource distribution among its regions. President Joko WIDODO - elected in
July 2014 – seeks to develop Indonesia’s maritime resources and pursue other
infrastructure development, including significantly increasing its electrical
power generation capacity. Fuel subsidies were significantly reduced in early
2015, a move which has helped the government redirect its spending to
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 has not yet materialized.
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Source
: CIA |
BASIC
SEARCH
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Name
of Company :
P.T.
BUSANAREMAJA AGRACIPTA
Address
:
Head
Office & Factory I
Jalan Aria Jaya Santika RT. 02/ RW. 01
Desa Pasir Nangka, Tigaraksa
Tangerang 15720
Banten
Province
Indonesia
Phones -
(62-21) 5991401-05
Fax - (62-21) 5993888
E-mail - marketing@bra-indo.com
Website : http://www.bra-indo.com
Land Area - 10,500 sq.
meters
Building Area - 8,500 sq. meters
Region - Industrial
Zone
Status - Rent
Factory
II
Jalan Lingkar Selatan Sarirejo II RT. 03/ RW. 11
Singosaren, Banguntapan
Bantul, 55193
Yogyakarta
Phones - (62-274)
451270-3
Fax - (62-274)
451274
Land Area - 8,500 sq.
meters
Building Area - 5,500 sq. meters
Region - Industrial
Zone
Status - Rent
Date of Incorporation
:
16
June 1993
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Ministry of Law
and Human Rights
- No. C2-14.372.HT.01.01.TH.93
Dated 24 December 1993
- No. AHU-67268.AH.01.02.TH.2008
Dated 22 September 2008
- No. AHU-AH.01.10-33767
Dated 17 September 2012
- No. AHU-15767.AH.01.02.TH.2014
Dated 22 May 2014
- No. AHU-AH.01.03-0053020
Dated 31 May 2016
Company
Status :
National
Private Company
Permit by
the Government Department :
The Department of Finance
NPWP No.
01.601.004.3-451.001
The Department of Industry and Trade
TDP No.
09.05.1.51.39355
Dated 17
July 2003
Related
Company :
A Member
Company of the SELAMA JAYA Group (see attachment)
CAPITAL
AND OWNERSHIP
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Capital
Structure :
Authorized
Capital : Rp.
2,750,000,000.-
Issued
Capital :
Rp. 2,750,000,000.-
Paid
up Capital :
Rp. 2,750,000,000.-
Shareholders/Owners
:
a. Mr. Harbindar
Singh -
Rp. 1,375,000,000.-
Address : Jl. Gunung Sahari VII C/4 A, RT. 009 RW. 005
Kelurahan Gunung Sahari Utara, Keca
matan Sawah Besar, Jakarta Pusat
Indonesia
b. Mr. Shyam Lal
Uttam -
Rp. 1,375,000,000.-
Address :
Jl Citra Raya Block M 3 No. 8, RT. 017 RW. 02
Kelurahan Dukuh, Kecamatan Cikupa,
Tangerang, Banten Province
Indonesia
BUSINESS
ACTIVITIES
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Lines
of Business :
Garment
Manufacturing
Production
Capacity :
Lady’s
Underwears (Bra & Panty) - 166,000
dozens per month
Total
Investment :
Owned
Capital -
Rp. 5.0 billion
Started
Operation :
August
1993
Brand
Name :
Mama Bra, Flock Bra, Maternity Bra, etc.
Technical
Assistance :
None
Number of
Employee :
3,500
persons
Marketing
Area :
Export - 100%
Main
Customers :
a. JC,
PENNEY
b. Hennes
& Mauritz (H & M)
c.
Ariella Alpha Int’l LLC
d. Fruit
of The Loom, Secret Treasure Maidenform, Inc.
e. Etc.
Market
Situation :
Very
Competitive
Main
Competitors :
a. P.T.
AARTI JAYA
b. P.T. HILON
INDONESIA
c. P.T.
RAMATEX
d. P.T. SARI RAJUT INDAH
e. Etc.
Business
Trend :
Growing
BANKER,
AUDITOR & LITIGATION
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B
a n k e r s :
a.
P.T. Bank CENTRAL ASIA Tbk
Jalan Roa Malaka
Jakarta Barat
Indonesia
b. STANDARD CHARTERED Bank
Wisma Standard Chartered Bank
Jalan Jend.
Sudirman Kav. 33-A
Jakarta 10220
Indonesia
Auditor
:
Internal
Auditor
Litigation
:
No
litigation record in our database
FINANCIAL
FIGURE
|
Annual
Sales (estimated) :
2015
– Rp. 538.0 billion
2016
– Rp. 545.0 billion
2017 – Rp. 577.7 billion
Net
Profit (estimated) :
2015
– Rp. 37.0 billion
2016
– Rp. 38.5 billion
2017 – Rp. 41.0 billion
Payment
Manner :
Average
Financial
Comments :
Fairly
strong
KEY
EXECUTIVES
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Board of Management :
Director - Mr. Shyam Lal Uttam
General Manager - Mr. Manoj Pasni
Factory Brand Technical Manager - Mr. Sri Nivas
Board of Commissioners :
Commissioner - Mr. Harbindar Singh
Signatories :
Director
(Mr. Shyam Lal Uttam) which must be approved by Board of Commissioner
CAPABILITIES
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Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Maximum Credit Limit :
US$
1,550,000 on 90 days D/A
OVERALL
PERFORMANCE
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P.T. BUSANAREMAJA AGRACIPTA (P.T. BA) was established in
June 1993 with the authorized capital of Rp. 250,000,000 of which Rp.
50,000,000 was issued and fully paid up. The founding shareholders are Mr.
Harbindar Singh, an Indonesian businessman of Indian extraction and Mr.
Budiarta Djakaria, an Indonesian businessman of Chinese extraction. The
articles of association of the company have frequently been revised. In May
1998, into the company entered a new shareholder namely Mr. Shyam Lal Uttam, an
Indonesian businessman of Indian extraction and concurrently the authorized
capital of the company was increased to Rp. 500,000,000 of which Rp.
125,000,000 was issued and fully paid up. In May 2001, the authorized capital
was raised to Rp. 5,500,000,000 entirely issued and paid up. At the same time,
Mr. Budiarta Djakaria withdrew and his whole shares were taken over by Mr.
Herbindar Singh and Mr. Shyam Lal Uttam. Then in August 2008 the authorized
capital was reduced to Rp. 2,750,000,000 wholly issued and paid up. With this
time the composition of its shareholders are Mr. Shyam Lal Uttam (50%) and Mr.
Harbindar Singh (50%). Lastly according to revision of notary deed Mrs. Yuli
Damayanti, SH., no. 08 dated 31 May 2016 the shareholders approved re-elected
the board of director and commissioner of the Company. The amendment was
approved by the Ministry of Law and Human Rights in its decision letter No.
AHU-AH.01.03-0053020 dated May 31, 2016.
We observe that Mr. Harbindar Singh and Mr. Shyam Lal Uttam
is also business stakes owner of P.T. BUSANA REJEKI AGUNG engaged in the field
of garment manufacturing which plants located at Jalan Sorosutan No. 11, and
Jalan Klodran Kadirojo, both are in Yogyakarta.
P.T. BA has been in operation since August 1993 dealing
with garment manufacturing. Its plant is located at Jalan Aria Jaya Santika
RT02/RW01, Pasir Nangka Village, Tigaraksa, Tangerang, Banten Province on a
land of 10,500 square meters. In May 2001 the plant has been expansion to
increasing production capacity by manages a new plant at Jalan Lingkar Selatan
Sarirejo II, Singosaren, Bangunpapan, Bantul, Yogyakarta on a land of 8,500
square meters. The above plant produces 166,000 dozens of lady’s underwears
(110,000 dozens of bra & 56,000 dozens of panty) per month. Mrs. Nury, a
chief of export marketing of the company, said that whole products are produced
based on orders from buyers abroad.
Some 90% of the products are exported to the USA,
European Union and Australia meanwhile the rest of 10% is marketed locally
among supermarket management such as SOGO Plaza Indonesia, SOGO Kelapa Gading
and SOGO Plaza Senayan with Vanity Fair brand. Their buyers are HENNES &
MAURITZ (H&M); ARIELA ALPHA INT’L LLC; MAIDENFORM, INC; JC, PENNEY;
VICTORIA’S SECRET; BONPRIX GmbH; DB APPAREL; HANESBRANDS INC; INTL INTIMATES
INC; and others.
P.T. BA markets have predominantly been the USA;
previously this was 95% of total exports but now it is around 80%. The second
biggest market is the EU and less than 3% to Australia, Canada and other Asian
countries. They are 100% export orientated and do not serve the local market.
America is still the biggest consumer market for textiles
and even though combined the European Union is equal in size; it is still a
group of many different economies with varied tastes. Consumers in the USA are
also more liberal and spend more compared to Europeans. Marketing is also much
easier to do in the USA as the players are on a national scale which makes it
easier in terms of quantities as well. P.T. BA began exporting to China through
one of their American buyers and they can see that the potential is growing.
China will therefore be only for the medium term as the country still has a lot
of domestic lingerie and underwear production capacity and the difference in
production cost is still marginal at around 10% whereas their products are only
competitive at a 50% margin. They will also benefit as an Indonesian company
from the ASEAN - China FTA.
The sharp Rupiah depreciation against US$, EUR, Pound,
Yen and other hard foreign currencies has positive impact to the financial
condition of P.T. BA because whole of the products is exported. Besides, the
prolonged global economic crisis followed by fast rising local bank interest
rates has also had a negative impact on the company's finances for having
resulted in a swelling of the company’s debts out of control. Meanwhile, the
local TPT (Textile and Textile Products) industries and other factors causing
the declining competitive ability of the national TPT products are the
increasing production costs, high interest rates, expensive customs office
costs, illegal retributions, textile and garment machinery restructuring costs
and the rising prices of production components (oil fuel prices and electric
base tariffs). We observe the operation of P.T. BA has been growing and
developing well in the last three years.
The textile and apparel product (TTP) industry is one of
the industries that has contrived to with stand the protracted global economic
crisis. Different from the economic situation throughout 2016, the world’s
economic climate in 2017 is estimated to improve. Based on data from IMF,
global economic growth is projected to remain at 3.4% in 2017 or grew higher
than in 2014 and 2015. In line with this positive development, the World Bank
also forecasts a global price hike of several commodities in 2017, one of which
is crude oil, which is estimated to significantly increase after the signing of
agreement between OPEC countries to cut down oil production volume per January
2017. In addition, Indonesia’s economy is also predicted to remain bright in
2017. Several institutions such as the World Bank and Bank Indonesia predict
that Indonesia’s economy will grow by 5.3-5.4%. This estimated figure is higher
than the target set by the government at 5.1% in 2017 State Budget or the
growth rate in 2016 at 5.02%. Indonesia’s textile industry is estimated to grow
robust in 2017. The Indonesian Textile Association (API) believes that textile
industry growth in 2017 will improve compared to the previous year at a range
of 1.6-1.8%. This prediction is supported by several considerations, such as
the EU Comprehensive Economic Partnership Agreement (EUCEPAN) and 2017
investment growth projection, especially for textile industry. Another factor
that accounts for this positive outlook is the 30% reduction of electricity
bill, which is estimated to significantly minimize costs incurred by textile
upstream industry up to 28%.
In addition, the Government has conducted diplomatic
approach to the US government, as one of the largest markets of national
textile industry, to implement customs exemption for textile products exported
from Indonesia. Until recently, referring to the data from the Ministry of
Industry, the textile products from Indonesia that enter the US market are
charged with customs of 12.5%. The implementation of customs exemption for
textile products from Indonesia has high possibility to be realized as the
textile products Vietnam have been granted such exemption.
We believe that Indonesia’s textile products can be
better marketed in the US if such exemption can be implemented. The export
volume and value of the national TPT products in 2010 to 2016 are pictured on
the following table.
Export Volume and
Value of Textile and Apparel Indonesia, 2010 – 2016*
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Year |
Spun Yarns |
Textile Products (Apparel) |
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|
(Thousand Ton) |
(US$ Million) |
(Thousand Ton) |
(US$ Million) |
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|
2010 |
521.0 |
1,600.3 |
374.8 |
5,558.4 |
|
2011 |
475.5 |
1,775.9 |
373.4 |
6,565.2 |
|
2012 |
554.8 |
1,733.0 |
366.3 |
6,106.4 |
|
2013 |
691.4 |
1,948.6 |
363.7 |
6,216.9 |
|
2014 |
733.8 |
2,041.6 |
375.5 |
6,256.0 |
|
2015 |
776.5 |
1,927.6 |
378.6 |
6,410.9 |
|
2016* |
709.0 |
1,695.4 |
337.4 |
5,627.4 |
Until this time P.T. BA has not been registered with
Indonesian Stock Exchange, so that they had not obliged to announce their
financial statement. The management of P.T. BA is very reclusive towards
outsiders and rejected to disclose its financial condition. We observed that
total sales turnover of the company in 2015 amounted to Rp. 538.0 billion
increased to Rp. 545.0 billion in 2016 rose to Rp. 577.7 billion in 2017 and
projected to be increasing by at least 5% in 2018. The operation in 2017
yielded an estimated net profit of at least Rp. 41.0 billion and the company
has an estimated total networth of at least Rp. 45.0 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. BA is led by Mr. Shyam Lal Uttam
(69), a businessman with 33 years of experience in garment manufacturing. The
management of the company is handled by experienced professional managers
having wide relation with private businessmen of home and overseas as well as
with the government sectors. 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. BUSANAREMAJA
AGRACIPTA is sufficiently fairly good for business transaction.
Attachment
List of the SELAMA JAYA Group Members
1.
AMES
INDAH INTERNATIONAL, P.T. (Trading and Export Import Services)
2.
BUSANA
REJEKI AGUNG, P.T. (Garment Manufacturing)
3.
BUSANAREMAJA
AGRACIPTA, P.T. (Garment Manufacturing)
4.
ERHA
DAYA NUSANTARA, P.T. (Investment Holding)
5.
ISTANA
PALAPA INTERNATIONAL, P.T. (Exporter of Agriculture Commodities Products)
6.
SELAMA
JAYA, P.T. (General Trading)
7.
WEARWEL
INTERNATIONAL, P.T. (Garment Manufacturing)
8.
Etc.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.55 |
|
|
1 |
INR 89.82 |
|
Euro |
1 |
INR 78.87 |
|
IDR |
1 |
INR 0.0047 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIY |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
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.