Profile of PT Charoen Pokphand Indonesia Tbk.PT Charoen Pokphand The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its chief subsidiary is Charoen Pokphand Foods, which did 116.5 billion baht in revenue in 2005, earning a profit of 6.747 billion baht. Indonesia Tbk was established with the name of PT Charoen Pokphand Indonesia Animal Feedmill Co. Limited on 6 January 1972, operating in production and trading of animal feed, processed chicken meat, livestock raising tools and fish feed, and in share participation in other companies.The main activities of PT Charoen Pokphand Indonesia Tbk (CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I ) are in agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. , especially in feed production and production of DOC (day old chickens). Its sales of animal feed in 2007 made up 72.71% of its total sales with net value of Rp 6.31 trillion, from the sales of 2 million tons of animal feed. The figure rose 36.31% from 2006's sales of Rp4.63 trillion. In addition to animal feed, breeding of DOCs is another important business of PT CPI. The two business areas support each other. In 2007, PT CPI produced 479.7 million DOCs, up 11.20% from 2006's production. The company also has major business in chicken meat processing industry Business facility PT CPI has production facilities in a number of areas in Indonesia, including six animal feed factories, 1 fish feed factory, 2 chicken meat processing plants, 1 factory producing animal husbandry animal husbandry, aspect of agriculture concerned with the care and breeding of domestic animals such as cattle, goats, sheep, hogs, and horses. Domestication of wild animal species was a crucial achievement in the prehistoric transition of human civilization from equipment and corn drying storage facilities. Its animal feed factories are located in various areas including one at Jalan Raya Serang Se`rang´ n. 1. The boatswain of a Lascar or East Ondian crew. , Balaraja subsdistrict, Tangerang, Banten having a production capacity of 1.2 million ton per year, with a corn drying and storage facility with cacapcity of 47,000 tons. One factory is located in Sidoarjo, East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. , having a production capacity of 900,000 tons per year. The factory has corn drying and storage facility with a capacity of 65,000 tons. PT CPI has another animal feed factory in this city with a capacity of 500,000 tons, it also has a corn drying and storage facility with a capacity of 15,000 tons. PT CPI has other facilities including a chicken meat processing plant in the Industrial Estate of Modern Cikande, in Cikande, Serang, Banten, a factory producing animal husbandry equipment in Tangerang, Banten, and a corn drying and storage facility Bandar Lampung Bandar Lampung is the capital province of Lampung, Indonesia. It was formerly called Tanjungkarang-Telukbetung, the names of the two major sections of the city, before being renamed in 1983. , Lampung. Shareholders In 2008, PT Charoen Pokphand was 55.45% owned by PT Central Agromina, 11.14% by RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West, (Asia) Ltd Singapore and 7.36% by UBS AG UBS AG (NYSE: UBS; SWX: UBSN; TYO: 8657 ) is a diversified global financial services company, with its main headquarters in London and New York. It is the world's largest manager of private wealth assets,, "the world's biggest manager of other people's money"[1] Singapore. Subsidiaries PT CPI has a number of subsidiaries, operating in various business areas but generally related to its core business of animal feed industry. Among the subsidiaries are PT Vista Grain, operating in production and trade of animal feed, which is 99,92 % owned by PT CPI. Other subsidiaries operate in the breeding of commercial DOCs (Day Old Chick chick abbreviation for chicken (1). Final Stock), such as PT Charoen Pokphand Jaya Farm (PT CPIJF), PT Centralavian Pertiwi, PT Cipta Khatulistiwa Mandiri, PT Istana Satwa Borneo, PT Satwa Utama Raya, PT Vista Agung Kencana. PT Charoen pokphand Jaya Farm is the largest DOC breeding subsidiary of PT CPI, with a production capacity of 386 million DOCs and it is a shareholder in a number of other subsidiaries of PT CPI operating in the same line of business. PT CPIJF has business units in Banten, West Java, Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. , East Java, North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca. , Riau, Lampung, North Sulawesi North Sulawesi (Indonesian: Sulawesi Utara) is a province of Indonesia. It is on the island of Sulawesi, and borders the province of Gorontalo to the west (originally a part of North Sulawesi until 2001 when it became its own province). , West Kalimantan West Kalimantan (Indonesian: Kalimantan Barat often abbreviated to Kalbar) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan, the Indonesian part of the island of Borneo. Its capital city Pontianak is located right on the Equator line. and South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. . PT Centralavian Pertiwi is a subsidiary of PT CPI, 99.99 % owned by PT CPIJF. Its business units are located in West Java and Lampung. Its has an annual production capacity of 24 million DOCs. PT Cipta Khatulistiwa Mandiri, which is located in Pontianak, West Kalimantan, is 50% owned by PT CPIJF). PT Istana Satwa Borneo is 99.96 % owned by PT CPIJF. Its business units are located in Balikpapan, East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil and South Kalimantan. Its production capacity totals 33 million DOCs a year. PT Satwa Utama Raya, which is 99.98 % owned by PT CPIJF, has business units in Pasuruan, East Java, and North Sulawesi and South Sulawesi South Sulawesi is a province of Indonesia, located on the western southern peninsula of Sulawesi island. The province is bordered by Central Sulawesi province to the north, South East Sulawesi province to the east and West Sulawesi province to the west (West Sulawesi province was . Its annual production capacity is 44 million DOCs. PT Vista Agung Kencana, which is 99.96 % owned by PT CPIJF, is a producer of DOCs with a production capacity of 25 million DOCs a year. A number of other subsidiaries operate in trading of processed food products, plastic packaging manufacturing and production of animal feed basic materials. Production capacity of CPI's subsidiaries The largest DOC breeding subsidiary of PT CPI is PT Charoen Pokphand Jaya Farm (PT CIPJF), with a capacity of 386 million DOCs a year. PT Vista Grain is the largest in the production capacity for animal feed with an annual production capacity of 200.000 tons. Feed largest contributor to total sales Feed contributed 78.03% to total sales recorded by PT CPI, in 2008. PT CPI produces three types of feeds--animal feed, shrimp feed and fish feed. Sales of DOCs accounted for 13.60 %, in 2008 down slightly from 14.04% in 2007, and manufactured chicken meat accounted for 7.91% of total sales of PT CPI in 2008. Financial performance A fast growth was recorded in the financial performance of PT Charoen Pokphand in 2008 compared to the previous year. In 2007 its net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were valued at Rp 8.680 trillion, up 52.2% to Rp 13.213 trillion in 2008. PT Charoen Pokphand Indonesia Tbk chalked up Rp 959.886 billion in net profit in 2008, up sharply from Rp 479. 747 billion in the previous year.
Table--1
Production capacity of feed factories of
PT Charoen Pokphand Indonesia Tbk
Corn
drying
and
Production storage
capacity facility
No. Factories Location (tons) (tons)
1 Animal feed Tangerang, Banten 1,200,000 47,000
2 Animal feed Sidoarjo, East Java 900,000 65,000
3 Animal feed Sidoarjo, East Java 500,000 15,000
4 Animal feed Deli Serdang, North Sumatra 600,000 20,000
5 Animal feed Demak, Central Java 300,000 18,000
6 Animal feed Makasar, South Sulawesi 300,000 40,000
7 Fish feed Jakarta 50,000 10,000
Source: PT CPI
Table--2
Production capacity of non animal feed factories of
PT Charoen Pokphand Indonesia Tbk
Production
No. Factories Location capacity
1 Chicken meat Modern Cikande 18,000 tons/year
processing factory Industrial Estate,
Serang, Banten
2 Chicken meat Gunung Anyar, Surabaya, 6,000 tons/year
processing factory East Java
3 Animal husbandry Tangerang, Banten --
equipment
4 Corn drying and Bandar Lampung, Lampung 30,000 tons
storage facility
Source: PT CPI
Number of issued shares Percentage
Shareholders and fully paid of ownership
PT Central Agromina 1,821,277,882 55.45%
RBOC (Asia) Ltd Singapore 365,889,168 11.14%
UBS AG, Singapore 241,616,000 7.36%
Owners of less than 5% 855,779,158 26.05%
stake
Total 3,284,561,408 100%
Source: PT CPI
Table--3
Subsidiaries of PT Charoen Pokphand Indonesia Tbk
Owners and
Companies Location shares (%)
PT Vista Grain Lampung 99.92 (PT CPI)
PT Charoen Pokphand West Java, Central Java, 99.99 (PT CPI)
Jaya Farm (PT CPIJF) East Java, Bali, North
Sumatra, Riau, Lampung,
North Sulawesi, West
Kalimantan, South
Kalimantan
PT Centralavian Pertiwi West Java, Lampung 99.99 (PT CPIJF)
PT Cipta Khatulistiwa West Kalimantan 50.00 (PT CPIJF)
Mandiri
PT Istana Satwa Borneo East Kalimantan, South 99.96 (PT CPIJF)
Kalimantan
PT Satwa Utama Raya East Java, South 99.98 (PT CPIJF)
Sulawesi, North Sulawesi,
PT Vista Agung South Sumatra 99.96 (PT CPIJF)
Kencana
PT Primafood Jakarta, Medan, Bandung, 99.96 (PT CPI)
International Semarang, Salatiga,
Surabaya, Denpasar,
Palembang
PT Poly Packaging Tangerang, Banten 99.99 (PT CPI)
Industry
PT Feprotama Pertiwi Tangerang, Banten 99.32 (PT CPI)
Table--4
Production of capacity subsidiaries of
PT Charoen Pokphand Indonesia Tbk
Production
Subsidiaries Line of business capacity
PT Vista Grain Animal feed production 200,000 tons/year
and trade
PT Charoen Pokphand Breeding of DOCs 386 million DOCs/
Jaya Farm (PT CPIJF) year
PT Centralavian Pertiwi Breeding of DOCs 24 million/year
PT Cipta Khatulistiwa Breeding of DOCs 18 million/year
Mandiri
PT Istana Satwa Borneo Breeding of DOCs 33 million/year
PT Satwa Utama Raya Breeding of DOCs 44 million/year
PT Vista Agung Kencana Breeding of DOCs 25 million/year
PT Primafood Trade of manufactured --
International food products
PT Poly Packaging Production of plastic 26,5 million sheet/
Industry packaging year
PT Feprotama Pertiwi Production of animal 7,000 tons,/year
feed basic materials
Table--5
Sales value of products of PT CPI
(Rp million)
Contribution
Sales value total sales
Products 2008 2007 2008 2007
Feed 10,310,482 6,773,526 78.03% 78.04%
DOC 1,797,600 1,218,593 13.60% 14.04%
Processed chicken meat 1,044,816 648,909 7.91% 7.48%
Animal husband equipment 26,178 20,752 0.20% 0.24%
Packaging 33,932 17,724 0.26% 0.20%
Total 13,212,988 8,679,504 100% 100%
Table--6
Financial report of PT Charoen Pokphand Indonesia Tbk
and subsidiaries, 31 December 2008 and 2007
(Rp million)
Description 2008 2007
Fixed assets 3,109,597 3,099,170
Non current assets 2,068,943 1,661,321
Total assets 5,178,540 4,760,491
Current liabilities 2,380,193 2,517,430
Non current liabilities 1,464,005 1,165,066
Minority rights 14,034 11,664
Equity 1,320,308 1,066,331
Total liabilities and equity 5,178,540 4,760,491
Net sales 13,212,988 8,679,504
Net profit 959,886 479,747
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