Market of non-firefroof office metal furnishings.
Non-fireproof metal furnishings for office use such as filing cabinets, cupboards, and mobile files are growing in demand with the expansion of the economy and the business sector.
The markets of metal furnishings include institutional and retail markets. Big producers of the furnishings such as Bostinco and Datascrip are more interested in targeting institutional market, but Lion, Elite and a number of other brands focus more on retail market. Normally institutional market demands higher quality.
Metal furnishings include non-fireproof furnishings such as ordinary filing cabinets, stallenkas (office cupboard) and mobile files (Roll O Pack) and fireproof furnishings such as safes, fireproof filing cabinets, vault doors and deposit safes. The grouping is based on process of production and technical specifications.
There are quite many or more than 13 brands of non-fireproof metal furnishings found on the domestic market. However, only six of them are categorized as major brands in production including Bostinco, Lion, Chubbsafes (Komodo), Elite, Acroe and Datascrip (PT Matahari Alka). Other brands are products of small producers or imported.
Other than Chubbsafes Indonesia and Lion, the producers of the other four brands--Acroe, Elite, Bostinco and Datascrip--have no fireproof products like safes, fireproof filing cabinets and vault doors. Mosler and Cassa specialize themselves in the production of fireproof furnishings including safes, vault doors and fireproof filing cabinets and they do not sell non-fireproof metal furnishings such as ordinary filing cabinets and office cabinets.
Major Brands of non-fireproof metal furnishings
Metal furnishings Bostinco has been known in the market for the past 50 years. It is known as the brand of high quality metal office equipment. Unlike many other producers, the producer of Bostinco produces only 1 grade of product. The market target of Bostinco is B to B (Business to Business).
The producer of Chubbsafes, a major brand of fireproof safes or office equipment also produces other metal furnishings like filing cabinets, stallenkas and mobile file.
Lion has also found in the market for the past 30 years. The products of Lion include various office equipment like filing cabinet, stallenkas, office desk, mobile file, racking system, safes, fireproof filing cabinets, office workstation, multi-file system, etc. Lion consists of two grades 2-standard and economic. The difference lies in the thickness of their steel plates below 7 mm and above 0.7 mm. Marketing of Lion products is mainly (60%) through distributors, the rest directly to users.
Elite has also quite popular in the market of metal furnishings. Elite products are available in various types in thickness of metal furnishings. Its standard thickness however, is 0.7 mm.
Acroe Atmipro products of metal furnishings produced by ATMI Surakarta (Akademi Teknik Mesin Industri) under the Foundation of Karya Bakti have high technical specifications for both the materials and process of production using modern machines. Most of its machines are imported from Germany and other European countries.
Specifications of non-fireproof metal furnishings
Basically, production of non-fireproof metal furnishings like filing cabinets, stallenkas and mobile file, through a simple process begins with cutting, bending, punching/drilling, cast, painting and assembling and installation (particularly for mobile file).
The quality of products depend on the materials used (thickness of steel plates) types of rails used, precision in the process of cutting, bending, punching, etc. Other important factors in the process of production are painting system. Good painting system produces protects the furnishings from rust, pressure and scrapping.
Painting system of epoxy polyester powder coating in PT Bostinco is one of the superiorities of the products of Bostinco as the result of the painting is homogenous as resistant to scrapping and pressure. Painting is preceded with anti rust pretreatment in five phases degreasing, rinsing, treatment with phosphate, rinsing, demineralization.
Producers and distributor
Companies operating in metal furnishings industry generally produce ordinary filing cabinets (non-fireproof), stallen kas and mobile file. Some of them produce fireproof metal furnishings like safes, fireproof filing cabinets, deposit safes or vault doors.
PT Chubbsafes Indonesia with sole agent PT Indolok Bakti Utama produces the post complete sets of metal furnishing products--from filing cabinets, office cabinets, mobile file, safes, and fireproof filing cabinets to vault doors.
PT Bostinco, PT Elite Permai Metal Works and PT Acroe Indonesia (ATMI Surakarta) specially produce steel storage systems. The three company do not produce fireproof filing cabinets, safes and vault doors.
PT Lion Metal Works, one of major producers of metal office equipment, produces ordinary filing cabinets as well as fireproof filing cabinets and safes in limited variations. This company does not produce vault doors and deposit safes.
PT Tjakrindo Mas in Surabaya and PT Matahari Alka with sole agent of PT Datascrip in Jakarta, produce office wooden, plastic and steel furnishings. The two companies have production units for "sheet metal line", wood panel line and plastic line.
PT Tjakrindo in the past three years began to develop fireproof products in the form of steel cabinets with high security system.
Profiles of suppliers
Among seven suppliers of non-fireproof metal furnishings, 3 are trading companies as a sole agents for the products of affiliates. PT Indolok Bakti Utama, for example, is a sole agent for the products of PT Chubbsafes Indonesia, a local unit of the Swedish based multinational company Gunnebo Group.
PT Acroe Indonesia is a sole agent for the product of Acroe-Atmipro for office furnishings and is a business wing of Bakti Karya Foundation which owns the Surakarta Industrial Machine Technique Academy (ATMI).
In the beginning ATMI was financed by a Swiss agency, but later it grew to become self supporting. The ATMI factory stands over a 3.5 hectare plot of land with modern machines highly computerized. Most of its machines are from Europe and a small part from China. The production machines include punching machine (Agostino), bending machines (Megobal), welding machines, etc.
PT Datascrip which is the sole agent for PT Matahari Alka, which is its affiliate, is a trading company with products including office furnishings, office furniture, office machines, camera, etc. PT Datascrip has branches in 7 large cities in Indonesia.
Companies which deal mainly with projects instead of retailers or distributors, normally have many branches. Fore example, PT Indolok Bakti Utama has branches in 20 cities, PT Bostinco in 6 cities. PT Lion Metal Works and PT Elite Permai which sell their products through agents/distributor, have no many branches. PT Elite does not even have branch.
All producers of metal furnishings have been in operation for more than 20 years excepting PT Acroe Indonesia, which has operated only for 16 years. PT Bostinco is the oldest in operation since 1952. PT Indolok Bakti Utama, PT Lion Metal Works and PT Elite Permai Metal Works have been in operation for more than 30 years.
In Surabaya, a major producer of metal furnishings PT Tjakrindo Mas produces various types of products such as office equipment, office furniture, hospital furnishing, electric panels, PVC pipe, etc. The company has more than 2,000 workers in its production units including 300 in its office metal furnishing division.
PT Tjakrindo Mas is a producer of filing cabinets and stallen kas with the brand of Brother and VIP for middle to lower market segment. Its production capacity is 10,000 units per year for ordinary filing cabinets and 500 units per month for safes. Around 40% of its production is exported. In the past two years PT Tjakrindo through its subsidiary PT Briliant Lancar Jaya produced metal furnishings for higher market segment with the brand of BRILLIANT.
Scale of Companies
Most recommended producers of metal furnishings have 400-700 workers each. PT Acroe, which is a sales agent, has only 20 workers, but its factory (ATMI) employs around 500 workers.
PT Indolok Bakti Utama, a trading company has almost 500 workers mostly in the sales department both in the head office and in branch offices including technicians who offers after sales service.
The production capacity of the companies based on their consumption of steel plates range from 600 to 1,600 tons per year. The capacity is not only for metal furnishings such as filing cabinet, mobile file and office cabinet, but also other furnishings such as steel racking (for warehouse), cable tray (of PT Lion Metal Works), work station etc. PT Elite Permai Metal Works also produces gas cylinders on request of Pertamina, and PT Tjakrindo Mas in Surabaya produces hospital furnishing and electric panels.
The turnover of the suppliers of metal furnishings ranges from Rp 9 billion to Rp 15 billion a month, excepting PT Acroe Indonesia which has a turnover of only around Rp 600 million per month. The turnover, however, includes sales turnover of other metal equipment like steel racking, work station, cable tray, etc. PT Indolok Bakti Utama has income mainly from the sales of fireproof products like safes, vault doors, safety deposit, fire extinguisher etc. The income of PT Acroe Indonesia, all come from the sales of metal office equipment including filing cabinets, cupboards, lockers, etc.
Most producers of metal furnishings are domestic market oriented. Among the producers already exported part of their production include PT Lion Metal Works, PT Bostinco, PT Elite Permai, PT Tjakrindo Mas and PT Indolok
PT Bostinco and PT Indolok Bakti Utama (Chubbsafes) more than other producers sell their products directly mainly to institutional buyers. Metal furnishings are produced by PT Bostinco mostly on requests
PT Lion Metal Works, PT Elite Permai and PT Tjakrindo Mas distribute their products mainly to retail companies. The three companies rely more on distributors and retailer rather than on branches in expanding their sales. PT Lion Metal Work does not have a branch.
After Sales Service
After sales services in the form of guarantee or repair in case of any damage, are important to determine success in sales of metal furnishings. Big producer offer after sales services as follows:
Normally for 1 year and afterward contract is offered for maintenance or repair service which is available any time needed.
* Service/repairs (maintenance contract)
Indolok (Chubbsafe) has 131 technicians in 20 branches for maintenance service.
* Customer service (response time to complaint)
Those based in Jakarta all offer to respond to any call for maintenance within a day.
PT. INDOLOK BAKTI UTAMA has Corrective and Preventive Action for any complaints from customers. It has Hotline Communications Facility in the form of facsimile, e-mail, telephone working round the clock.
Characteristics of Users
Brands of products being used
There are at least 14 brands of ordinary metal furnishings (non-fireproof) used by major banks both state and private banks in the country.
A survey shows:
* Brands of ordinary filing cabinets vary widely from those categorized in a classification such as Bostinco, Datascrip, to lower class such as Lion and Elite.
* Lion brand of filing cabinets has widest market coverage. The survey shows that Lion is used by 70% bank offices surveyed.
* Ordinary filing cabinet product of Bostinco is quite dominant in big banks in Jakarta, but this brand was not known in Semarang, Medan, Surabaya, Banjarmasin and Makasar. Like Bostinco, filing cabinets of Chubbsafes are widely used by big banks in Jakarta, but almost none of banks in the region use that brand with only BNI of Medan branch uses the brands.
* Ordinary filing cabinets of Datascrip have good reputation in quality in the eastern part of the country, but the price is quite expensive. Lion, however, is used more as additional filing cabinet.
* There are also local brands like Mustang and Mitsui in Medan, Lu-Fo in Semarang. In eastern part of the country including Surabaya, Banjarmasin and Makasar, Brother and Super VIP are quite popular among banks with prices much cheaper than those of Lion and Datascrip
* The brand of Bostinco is most popular for mobile file (Roll O Pack) and is used widely both in Jakarta and in the regions. Datascrip, Lion and Mosler are not very popular. Not all banks have mobile file.
There are few brands of mobile file (Roll O pack) used by banks. The most popular is Bostinco, followed by Datascrip.
Criteria of products selected
Criteria set by banks in selecting metal furnishings are as follows.
* Almost all branches of big banks put quality at the top of the criteria to select metal furnishings, with only CIMB Niaga and BII put quality second below prices.
* Price is the second factor although BCA placed price the fourth after quality, service, and brand.
* After sales service is also an important factor especially for safes, vault doors, and other fireproof metal furnishings. After sales services include for lost keys, code being forgotten and for other emergency.
Table--1 Number of brands and medium and large suppliers of metal furnishings Types of goods Number Producers/ Medium of brands Suppliers Large Filing cabinets 2-4 drawers 13 7 6 Stallenkas 13 7 6 Mobile file 8 5 3 Fireproof filing cabinets 9 6 3 (2 &4 ) drawers Safes 9 5 4 Vault doors 5 5 0 Deposit Safe 5 5 0 Source: Data Consult Table--2 Major brands of metal furnishings and types of products Brands FC 2 & 4 Stallenkas Mobile Fireproof File FC 2 &4 Bostinco [check] [check] [check] Chubbsafes [check] [check] [check] [check] Lion [check] [check] [check] [check] Acroe Atmipro [check] [check] [check] Brilliant/Brother [check] [check] Elite [check] [check] Datascrip [check] [check] [check] [check] Mosler [check] Cassa [check] Sargent safe [check] Solingen Brands Safes Vault Deposit doors safes Bostinco Chubbsafes [check] [check] [check] Lion Acroe Atmipro Brilliant/Brother [check] [check] Elite Datascrip Mosler [check] [check] [check] Cassa [check] [check] [check] Sargent safe [check] [check] [check] Solingen [check] [check] [check] Source: Field survey Table--3 Specification of non-fireproof metal furnishings Specifications Filing cabinet Filing cabinet 2 drawers 4 drawers Dimension Height (mm) 680-740 1272-1337 Width (mm) 455-485 455-485 Depth (mm) 620-675 620-675 Materials JIS-G-3141-SPCC JIS-G-3141- SPCC Thickness of body plate 0.7-1.2 mm 0.7-1.2 mm Thickness of frame 0.9-1.2 mm 0.9-1.2 mm plate, foundation Drawers Withdrawn 88-100% Withdrawn 88- 100% Capacity of 35-80 kg 35-80 kg drawers/racks Rail Telescopic with Telescopic with metal ball cushion metal ball cushion Key Central Central Paint Powder coating Powder coating Door Specifications Stalen kas Mobile file Dimension Height (mm) 1825-1840 1860-2200 Width (mm) 880-1000 400(single), 800(double) Depth (mm) 457-500 1000-5000 Materials JIS-G-3141- JIS-G-3141- SPCC SPCC Thickness of body plate 0.7-1.2 mm 0.7-1.2 mm Thickness of frame 0.9-1.5 mm 1.2-2.3 mm plate, foundation Drawers Capacity of 50-100 kg 40-150 kg drawers/racks Rail Key Key on three Central dots Paint Powder Powder coating coating Door Swing door, hinge invisible Source: Data Consult/ICN Table--4 Profiles of suppliers of non-fireproof metal furnishings Suppliers PT Indolok PT Lion Metal Bakti Utama Works Tbk Location of head East office Central Jakarta Jakarta Width of office 4,700 m With (including factory warehouse) Location of factory PT Chubbsafes Cakung, Indonesia (MM East 2100 Industrial Jakarta Estate Cibitung) Width of factory 15,740 37,000 (land & sq.m. building) 19,814 sq.m. buildings) Number of 20 1 branches total (Agent 24) Java 6 1 Outside Java 14 Start-up 1973 1972 Ownership National PMA Line of business Sole agent, Producer Importer, Distributor Type of product (brands) Ordinary filing Chubbsafes Lion cabinet 2 & 4 (Comodo) drawers Office cabinets Chubbsafes Lion (stalenkat) (Reptil) Mobile file Chubbsafes (Secure) Lion Other Fire Works Extinguisher, station, Security chair products warehouse racks Foreign Principal GUNNEBO, Sweden Supply/prod. 1600 tons capacity /month * Workers total 458 470 Salesmen 180 14 Production 131 450 workers Suppliers PT Bostinco PT Acroe Indonesia (TMI) Location of head Cileungsi, Jakarta office Bogor 1,000 Width of office sq.m. (with factory) Location of factory Cileungsi, ATMI, Solo Bogor Width of factory 90,000 35,000 SQ.M. (land & (land & buildings) buildings) Number of 6 3 branches total Java 4 3 Outside Java 2 Start-up 1952 1992 (ATMI 1968) Ownership National National Line of business Producer Sole agent Type of product (brands) Ordinary filing Bostinco Acroe Atmipro cabinet 2 & 4 drawers Office cabinets Bostinco Acroe (stalenkat) Atmipro Mobile file Bostinco Roll O Acroe Pact Atmipro Other Shopfitting, hospital, fire door workshop equipment Foreign Principal Supply/prod. 600-900 tons 600 tons ( cap capacity /month * ATMI) Workers total 700 20 (500 ATMI) Salesmen 20 5 Production 500 2 workers Suppliers PT Elite Permai PT Data Scrip Metal Works Ltd Location of head North Jakarta Jakarta office 1700 sq.m. Width of office 2,000 sq.m. Location of factory North Jakarta Cikarang (PT Matahari Alka) Width of factory 100,000 sq.m. 62000 SQ.M. (Buildings (land & 15000 sq.m.) buildings) Number of 7 branches total Java 1 Outside Java 6 Start-up 1976 1979 Ownership National National Line of business Produce Importer/ sole agent Type of product (brands) Ordinary filing Elite Datascrip cabinet 2 & 4 drawers Office cabinets Elite Datascrip (stalenkat) Mobile file Elite Other Gas cylinder, chair work station, warehouse rack Foreign Principal Supply/prod. 1500 ton capacity /month * Workers total 406 700 in Jakarta Salesmen 55 9 salesmen for filing cabinet Production 330 12 for FC workers Suppliers PT Tjakrindo Mas Location of head Surabaya office 300 sq.m. Width of office Location of factory Surabaya Width of factory 110500 SQ.M. (9000 sq.m. of office equipment) Number of Agent ::21 branches total Java 14 Outside Java 7 Start-up 1984 Ownership National Line of business Producer Type of product (brands) Ordinary filing Brother, Daito, cabinet 2 & 4 Brilliant drawers Office cabinets Brother, Daito (stalenkat) Mobile file Brilliant Other Hospital equipment, panel electricity , furniture, Foreign Principal fireproof product Supply/prod. FC 10,000 / capacity /month * month Safes 500/month Workers total 2000 (300 of office equipment) Salesmen Production workers Source: Data Consult/ICN Table--5 Scale of producers/suppliers of metal furnishings Description PT Indolok PT Lion PT Bostinco Bakti Utama Metal Works Supply/ prod. capacity 1600 600-900 /month * tons tons Workers total 458 470 700 Salesmen 180 14 20 Production workers 131 450 500 Monthly turnover * 14,000 15,000 9,000 (Rp million) Description PT Acroe PT Elite Permai Indonesia (ATMI) Metal Works Supply/ prod. capacity 600 ton /month * (cap ATMI) 1500 tons 20 Workers total (500 ATMI) 406 Salesmen 5 55 Production workers 2 330 Monthly turnover * 600 (office equipment) 6,000 (Rp million) Description PT Tjakrindo Mas Supply/ prod. capacity 10,000 /month * FC/month 2000 Workers total (300) **) Salesmen Production workers Monthly turnover * 21,000 (Rp million) *) All types of product **) Only office equipment division Source: Data Consult/ICN Table--6 Marketing of metal furnishings from suppliers Description PT Indolok PT Lion Metal Bakti Utama Works Trend of sales Up 10%/year Up 20% in 2007 Marketing orientation Local (%) 30% all over 85% mainly in Indonesia Java & Sumatra (60% via distributor,40% projects) Exports (%) 70% Europe, 15% to Malaysia , Asia, Africa, Middle East, Australia Singapore Bank customers 95 4 State banks 5 2 BPD 19 Indon private banks 36 1 Foreign bank 10 1 Other banks (BPR) 25 Description PT Bostinco PT Acroe Indonesia (ATMI) Trend of sales Up 10/15% / 10-20%/ year Marketing orientation year Local (%) 80% all over Local 100% Indonesia through agents or distributors Exports (%) 20% German, Jepang, Spore Bank customers 14 Sales to banks through an agent State banks 5 BPD Indon private banks 6 Foreign bank 3 Other banks (BPR) Description PT Elite Permai Metal Works Trend of sales Up 10%-15%/year Marketing orientation Local (%) Local 95 % Exports (%) Export - 5 % Bank customers 8 State banks 3 BPD Indon private banks 4 Foreign bank 1 Other banks (BPR) Source: Data Consult/ICN Table--7 After sales services Description PT Indolok Bakti Utama PT Lion Metal Works Guarantee 1 year, ASS no time limit Flexible Flexible Networks of Coverage all Via Dealer/ service point over Indonesia distributor Java-Bali 6 14 Sumatra 7 8 Kalimantan 3 0 Sulawesi 2 2 Other eastern Indon 2 Response time to 1x24 hours 2 x 24 hours any complaint Description PT Bostinco PT Acroe Indonesia (ATMI) Guarantee 1 year 1 year Networks of Coverage all Coverage all service point over Indonesia over Indonesia Java-Bali 4 2 Sumatra 2 Kalimantan Sulawesi Other eastern Indon Response time to 2 x 24 hours any complaint Description PT Elite Permai Metal Works Guarantee 1year Networks of Via dealer/ service point distributor Java-Bali All large cities Sumatra Kalimantan Sulawesi Other eastern Indon Response time to 2 x 24 hours any complaint Source: Data Consult/ICN Table--8 Profile of suppliers of non-fireproof metal furnishings Supplier PT Indolok PT Lion Metal PT DATA-DATA SUPLIER Bakti Utama Works Tbk. Bostinco Width of land & 15,740 37,000 90000 factory (sq.m.) Factory facility Modern- Modern- Modern- complete complete complete Number of branches & 20 1 branch, 24 6 agents agents Prod. Capacity/Supply 1600 600-900 Duration of operation 35 37 56 (year) Sales turnover total 14000 15000 9000 (Rp million/month ) Certification ISO, ISO SNI international certification Bank customers 95 20 14 Networks of ASS 20 2 6 Supplier PT Acroe PT Elite Permai PT Data DATA-DATA SUPLIER Indonesia Metal Works Scrip Width of land & 35000 100000 62000 factory (sq.m.) Factory facility Modern- Modern- Modern- complete complete complete Number of branches & 3 7 agents Prod. Capacity/Supply 600 1500 Duration of operation 16 32 29 (year) Sales turnover total 600 6,000 50,400 (Rp million/month ) Certification ISO ISO ISO Bank customers 5 4 15 Networks of ASS 3 1 7 Supplier PT Tjakrindo DATA-DATA SUPLIER Mas Width of land & 110500 factory (sq.m.) Factory facility Modern- complete Number of branches & 1 agents Prod. Capacity/Supply FC 10000/bln Duration of operation 24 (year) Sales turnover total 21000 (Rp million/month ) Certification ISO Bank customers 10 Networks of ASS 1 Source: Data Consult/ICN Table--9 Use of ordinary filing cabinets in state and private banks Bank Jakarta Medan Semarang Mandiri Bostinco, Mustang, Lion Elite Super VIP BNI Lion, Chubbsafes Lion, Elite Datascrip, Bostinco, BTN Bostinco, Lion Lu-Fo Lion, Elite, Datascrip BCA Lion, Lion, Lion, Elite Bostinco, Mustang, Elite, Datascrip Ichiban, Alba CIMB NIAGA Bostinco, Mustang Brother, Lion, Lu-Fo, VIP, Chubbsafes Daichi Danamon Lion, Lion, Lion Chubbsafes Mustang Mega Datascrip Lion, Mitsui Lion, Datascrip Permata Lion, Datascrip, Bostinco Acroe, Ichiban OCBC NISP Datascrip DKI Elite, Lion, Bostinco ANZ Panin Bostinco, Lion, Elite UOB Buana Datascrip, Ichiban Artha Graha Bostinco, Brother Citibank Bostinco Bank Surabaya Banjarmasin Makasar Mandiri Lion, Elite Lion, Elite Lion BNI Datafile Lion Lion, Datascrip BTN Lion Lion, Lion, brother BCA Lion, Lion, Brother Lion Brother CIMB NIAGA Lion Lion, Brother Lion, Brother Danamon Lion Lion Mega Lion, Lion, Lion Datascrip Datascrip Datascrip Permata Lion, Datascrip OCBC NISP Lion, Datascrip, Brother DKI ANZ Panin UOB Buana Artha Graha Citibank Source: Data Consult Table--10 Use of "Mobile File (Roll O Pack)" in some state and private banks Users among BANKs Brands Mandiri Bostinco CMB Niaga Bostinco BCA Bostinco, Lion BNI Bostinco, Datascrip, Mosler Mega Datascrip, Chubbsafes Permata Lion, Bostinco, Chubbsafes BTN Bostinco, Lion, Datascrip BII Mosler UOB Buana Mosler DKI Datascrip ANZ Panin Chubbsafes Citibank Bostinco Source: Data Consult/ICN
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|Publication:||Indonesian Commercial Newsletter|
|Date:||Jul 1, 2010|
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