Marel company profile - Hosiery / Socks Manufacturer (Pabrik Kaos Kaki-Yogyakarta)

www.marelsp.com

UNGGUL GROUP

Supported by PT. Unggulrejo Wasono (since 1976), PT. Usmanjaya Mekar Textile (since 1990) and PT. Krishna Jaya (since 1980) in our group, we have

confidence to be leading socks industry partner with international reputation.

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Weaving Activity (Greige Cloth) Occupying the place 5.7 ha, 2300 employees, best weaving machinery from

Europe, and dyeing cone for dyeing yarn, Unggul Group produces best quality product 4,000,000 meters/month and increasing.

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PT. Unggulrejo Wasono and PT. Usmanjaya Mekar Textile deliver

their product to international and domestic market area such Japan, Turkey,

Solo, Pekalongan, Bandung, Jakarta, Surabaya and Bali.

Socks Machines

We supported by Sangiacomo socks machines from Italy to produce socks product for many great brands, such as Adidas, Reebok, Converse, etc.

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History

2002 Started with 3 units of Sangiacomo socks machines

Production capacity = 13,500 pairs/month

2003 - 2007 20 units of Sangiacomo socks machines


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2008

We have prepared 30 units of Sangiacomo socks machines


to start support Adidas SEA (South East Asia) project.

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2009

33 units of Sangiacomo socks machines

Production capacity = 148,500 pairs/month.

Finally at FW 2009, we started to provide Adidas socks,

direct to 6 countries, i.e. Indonesia, Singapore, Malaysia, Philippines, Thailand

and Vietnam under Adidas SEA project.

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2010

Since built a mutually business relationship with SEA, we have explore our capability and technology.

We started to learn and produce for technical socks with special yarn, coolmax yarn and nylon 6.6 yarn as Adidas SEA requested and increased the number of socks machines become 40 units of

Sangiacomo socks machines with production capacity = 180,000 pairs/month.

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2011

We also learn and produce for technical socks with special design,

for an example 5 toe socks design as Adidas SEA requested and

increased the number of socks machines become 45 units of


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2012

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We produce for technical socks with special yarn,

polypropylen yarn for making adiZero technology and

increased the number of socks machines become 50 units of


2013

We learn and produce for technical 3D socks design as Adidas SEA requested

and increased the number of socks machines become 70 units of


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2014

We increase the number of socks machines become 76 units of Sangiacomo socks machines with production capacity = 342,000 pairs/month

Finally at FW 2014, Adidas PAC trust us to provide Adidas socks, direct to 2 countries, i.e. Australia and New Zealand.

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2015

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We complete our production line with Lonati socks machines with Automatic Stitch by Stitch Linking Device.

The number of socks machines become 86 units with production capacity = 387,000 pairs/month.

Organization Chart

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Lanny

Commissioner

Martin Lukas

HS

Director

Aria Wahyu E.Y

General Manager

Oktavianus S.N

QMR

Waldiyono

Security

Tanti W

HRD Manager

Tugiya Production Mgr

Dody R

Marketing Manager

Lusiana D.A

Office Manager

Juhadi

WH Manager

Sisilia

Quality Control Development

Suhadi Lina

Doc. Controller

Sukiyana

Ass.GM

Business Plan

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Month Year Investment Quantity

(Unit)

Total

(Unit)

Capacity Production/Month

(Pair)

January 2016 Conti Complette Machine 2 3 337,500

April 2016 Socks Machine from Italy 14 100 450,000

May 2016 New Packing & WH Building 1 N/A N/A

June 2016 Socks Machine from Italy 15 115 517,500

December 2016 Socks Machine from Italy 15 130 585,000





Starting with company business value US$ 125,000 on 2002, we growing up become US$ 2,000,000 on this 2016 and will continue to increase with our

business plan as below:

Summary Order

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YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ADIDAS 18000 42655 617664 1039563 1192370 1287498 1331827 1261971 1027294

OTHER

BRANDS 117000 160200 217200 430800 1054800 1059600 1090145 1149936 1119237 1228030 1495007 865163 1192301 1184838

TOTAL 117000 160200 217200 430800 1054800 1077600 1132800 1767600 2158800 2420400 2782505 2196990 2454272 2212132

0

500000

1000000

1500000

2000000

2500000

3000000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

ADIDAS

OTHER BRANDS

TOTAL

Socks Machines Type

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We have 8 different variants on needle number of socks machine with various function to produce variety of socks construction

depend on buyer requirement. We able to produce all categories of socks, such as training, technical,

football, men casual and kids socks. We have 96 N, 108 N, 120 N, 132 N, 156 N, 160 N, 168 N and 200 N

with details as below: No. Type Qty

(Unit)

Year Toe Closing

1 Sangiacomo Fantasia 2C 3 2002 Lin Toe

2 Sangiacomo Fantasia 1C 24 2004 Classic Linking

3 Sangiacomo Fantasia 2C 6 2005 Classic Linking

4 Sangiacomo Hi-Tech 7 2005 Hand Linking

5 Sangiacomo Hi-Tech 6 2006 Classic Linking


7 Sangiacomo HT-1 6 2008 Classic Linking

8 Sangiacomo STAR 4 2008 Classic Linking


10 Sangiacomo Hi-Tech 5 2010 Hand Linking

11 Sangiacomo STAR 2 2010 Hand Linking

12 Lonati GL-615 10 2015 S by S Linking

TOTAL 86

Linking Machines

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Conti Complete Machine Type 232 for Training Socks

Manual Linking Machine Stitch by Stitch

Classic Linking Device for Technical Socks

We also have 3 different variants on toe closing to produce variety toe closing of socks construction

depend on buyer requirement.

Differences with Other

Other’s Product

Inside Sock

Outside Sock

Marel’s Product

Both inside and outside of socks which

sewn by

Classic Linking Device

Reinforcement Technology

It give more neat and comfortable to use

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Colors

Our machines can produce socks with

15 different colors on it.

It give more attractive look and beautiful

design of socks.

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Sculpture terry

3 units of our machines can make socks with sculpture

terry design, so we can make terry design as simple as

we make regular pattern.

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STAR HT Machine

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6 units of our Sangiacomo machines build specially for make football socks.

Supporting Machines

We complete the production line with 5 units of embroidery machines from Tajima, Japan.

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Development Process

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Once we have received complete tech package from buyer, we can start the process as below:

DEPARTMENT

Final

FOB

Proto Samples,

New HC &

Lab Dip Color

Confirmation Samples

& Final HC

Marketing 3 days

Development 30 days 30 days

DEPARTMENT

PO

Record

Production

Planning

Yarn

Purchase

Bulk

Production Ex-Fty Shipment

Marketing 1 day

PPIC 1 day

Purchasing 30 - 60 days

Production 15 - 30 days

Warehouse 1 day

Forwarder 3 - 10 days

Tech package should contains Socks Line list, Article Description, Reference Socks Sample, and Inline Price or Target FOB Price.

Production Process

Operational Detail

AVERAGE WORKING HOURS /WEEK : 40 HOURS

AVERAGE OVERTIME/WEEK : 2 HOURS

OPERATOR PAYMENT WAGE : LEGAL/DAY/PERSON MINIMUM

LABOR INSURANCE : BPJS (Government Assurance)

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Our company are fully SEA compliance and follow the government rules.

We are 3C comply with Adidas SEA code of conduct, Bronze comply with Nike COC,

and 95% comply with New Balance COC. We are targeting to achieve 4C grade and

Silver grade in 2016.

Staff and Labour With total 200 employees, we have clear rule and responsibility for every staff and labour in management system with detail as below: MANAGER & STAFF 30 SHIFT LEADER 3 (SOCKS) 3 (EMBROIDERY) 1 (SEAMLESS) ASSISTANT LEADER 3 (SOCKS) INPUT DATA 1 (SOCKS) OPERATOR 32 (SOCKS) 12 (EMBROIDERY) 1 (SEAMLESS) MAINTENANCE 8 (SOCKS) TECHNICIAN 12 (SOCKS) 1 (EMBROIDERY) QUALITY CONTROL 21 (SOCKS) 1 (EMBROIDERY) REPAIR 6 (SOCKS) STEAM 9 (SOCKS) HANDLINKING & CONTI 9 (SOCKS) FINISHING 1 (EMBROIDERY) PACKING 21 (SOCKS) DEVELOPMENT SAMPLE 7 (SOCKS) 1 (EMBROIDERY) WAREHOUSE 7 HSE 1 SECURITY 9

With composition 15% of Manager & Staff from total employees, we have strong management team to drive the company vision,

mission and future development.

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Physical Plant A: MAIN GATE

B: SECURITY POST = 9 m2

C: REST AREA = 22 m2

D: EMPLOYEES PARKING AREA = 200 m2

E: LIVING ROOM = 40 m2

F: UPSTAIR: OFFICE

DOWNSTAIRS: FINISHED GOODS AREA = 522 m2

G: SOCKS WORKING AREA = 264 m2

H: EMBROIDERY WORKING AREA = 108 m2

I: QUALITY CONTROL = 36 m2

J: FINISHING = 36 m2

K: STEAM = 36 m2

L: PACKING = 50 m2

M: ELECTRICAL PANEL & GENERATOR SET = 100 m2

N: RAW MATERIAL WAREHOUSE = 400 m2

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We still have 6,600 m2 free space to double

our production capacity to absorb global

market demand and we are ready for this

challenge anytime.

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