MIRA
INFORM REPORT
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Report Date : |
07.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
DANSA FOOD LIMITED |
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Registered Office : |
9th Floor, Union Marble House, 1, Alfred Rewane Road,
Ikoyi, Lagos |
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Country : |
Nigeria |
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Date of Incorporation : |
4th June 1985 |
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Com. Reg. No.: |
RC: 72491 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Food processing, production / marketing. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
IDENTIFICATION
COMPANY NAME: DANSA FOOD LIMITED
REGISTERED
NAME: DANSA FOOD PROCESSING COMPANY LIMITED
REGISTERED
ADDRESS: 1A, Ungogo Road, Kano State
HEAD OFFICE
ADDRESS: 9th Floor, Union
Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos
TELEPHONE(S): 234-1-5873971-3,
8522552, 8765998, 8522542
PH –
07028201995, Abuja – 08065766402, Kano
- 07028003746
Ibadan – 018522543,
Maiduguri – 07028199944, Onitsha & Asaba –
08056045144
FAX: 234-1-5873976
MOBILE: Nil
E-MAIL: dansa_foods@yahoo.com
WEBSITE: www.dansa-foods.com
POSTAL ADDRESS: P.M.B. 1159, Apapa, Lagos
Subject is into food processing, production / marketing
In Nigeria subject is considered to be a medium scale concern in this
sector.
Currency: All
monetary values in this report are in Nigerian Naira, the local currency,
except otherwise stated. The exchange rate is N128 to 1 US $.
SUMMARY
NATURE OF PREMISES: Leased,
office space at head office occupying approximately 250 square metres.
DATE INCORPORATED: 4th
June 1985
YEAR BEGAN
OPERATION: 1985
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
72491
SHARE CAPITAL: N100,
000.00
ALLOTTED SHARE
CAPITAL: N100, 000.00
PAID-UP CAPITAL N100, 000.00
AUDITORS: Nil
SOLICITORS: Nil
COMPANY SECRETARY: Nil
STAFF
STRENGHT: about 110
OWNERSHIP/SHAREHOLDING
STRUCTURE
Name
Aliko Dangote
1A, Ungogo Road,
Kano
Saminu Dangote
2A, Independence Road,
Kano.
Bello Dangote
8, Chilaku Close,
Surulere, Lagos
Al-Yacoub Baba
4A, Koki Quts,
Kano
SHARE HOLDERS (PREVIOUS)
Nil
DIRECTORS
Aliko Dangote
Saminu Dangote
Bello Dangote
Al-Yacoub Baba
MANAGEMENT PROFILE
Alhaji Sani Dangote Chairman/CEO
Mr. Emmanuel Obi Marketing
Manager
ASSOCIATE COMPANIES
Benue Cement Co. Plc
Blue Star Shipping Ltd.
Dangote Bonny Allied Industries Ltd.
Dangote Flour Mils Plc.
Dangote Ginnery
Dangote Salt Plc.
Dangote Sugar plc.
Gata Trading Ltd.
Dangote Agrosacks/A.D. Star
Obajana Cement Plc
Dangote Pasta Plc
Greenview Nigeria Ltd
Portland Cement
Sugar Company Ltd.
PARENT COMPANY
Dangote Group of Companies
BRANCHES
13B, Jigawa Road, Kano
3, Unguwar Shanu Road, Kaduna
50, Uga Street, Onitsha
157, Trans-Amadi Industrial Layout, near Michelin Warehouse, Port
Harcourt
Km 4, Sapele Road, Santana Market Area, by Sapele Motor Park, Benin City
40, Gwani Road, New Commercial Area, Gombe
6, Beach Road, Opposite Post Office, Jos
Kalin Daji Area, Gusau
Dan Fodio Road, near DHL Office, Sokoto
FACTORY ADDRESS: Pan Warehouse, Abule Oshun, Lagos
, Nigeria .
BANKER
UBA, First Bank, Zenith Bank, Oceanic Bank, GT Bank, Fidelity Bank and
Intercontinental Bank PLC.
TRADE REFERENCES
Subject has Trade Reference both in Nigeria and Abroad.
PAYMENT REFERENCES
Subject has Payment Reference both in Nigeria and Abroad.
PRODUCT DESCRIPTION
*Production of Foods Items
PERFORMANCE RANKING
* Quality of Management:
GOOD
* Ethics & Integrity: GOOD
* Ownership Structure:
GOOD
OPERATIONS
Subject is into food processing, production / marketing
Subject is located in a central business area at 9th Floor, Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos
TYPES OF
CUSTOMERS: General Public, Group of Companies and Government Agencies
BACKGROUND
Dansa Foods is a wholly
owned Nigerian Company incorporated on June 4, 1985 as Dansa Food Processing
Company Limited. It is a member of Dangote Group, the largest Manufacturing
Conglomerate in Nigeria.
The company was initially established to carry on the business of
trading, sales and distribution of general goods. However, based on the survey
conducted in the year 2003, it was discovered that there was an increasing
demand in the Nigerian market for fruit juice and drinks. This had a boost with
the ban imposed by Federal Government on Importation of packed Juices and
Beverages in retail forms into the country.
The above factors led to the entry of the company into the production of
fruit juices and beverage sector of the economy. The company's factory is
located at Former PAN Warehouse, Abule Oshun, Lagos and has also acquired about
four (4) Hectres of land at Agbara from OPIC for future expansion.
According to recent release, Dansa Foods Limited is one of the
subsidiary arm of Dangote Group. The Company is to gulp N8bn by 2009 when it
commences full operation. As one of the leading conglomerates, last weekend,
formally announced the introduction of its new 500ml VIP pack, the first of its
kind into the Nigerian market.
The Chairman of Dansa Foods Limited, Alhaji Sani Dangote, at a press briefing
heralding the launch of the new pack in Lagos, said "At the moment, we
have invested in excess of N2.9billion and we hope that the investment in this
company will take between N7billion and N8billion in the next one or two years
when it is fully operational.
While answering questions on whether the company would be listed on the Stock
Exchange in the nearest future, he said "Obviously, we can list our shares
on the Stock Exchange in the future, but, for now, we are not thinking along
that line. Our plan is to make sure that we introduce different kinds of
products that will suit consumers.
We have started using our plant in Calabar, even though we are yet to complete
our own farm. You know it takes time for fruits to mature. But, right now, we
are using the local farmers to supply us the needed fruits until we get our
farm ready. The Cross River State people have been very helpful as they have
organized the farmers into co-operatives. We are encouraging other farmers to
join the co-operatives already in place. We have high technology that helps us
to produce quality and well packaged products."
The Senior Brand Manager, Mr. Paul Iraoya, in his speech, said "The new
pack is in line with the company's endeavour to bring products that are
innovative and is targeting especially at the people on the go, cutting across
all age groups."
According to him "christ-ened the Very Individual Pack (VIP), the new
500ml is convenient and trendy. The product comes in a tetrapak with double
seal spill-proof stream cap, which retains the freshness of the juice". He
further stated that Dansa Foods is equipped with the best "in its
class" technology that includes the stream cap tetrapak, cold fill
technology and spill-proof double seal cap, giving the consumer the multiple
benefits of an aseptic carton and bottle.
According to him, "As one of Nigeria's leading fruit juice manufacturing
company, the new pack will soon be introduced into the West African market to
satisfy the juice demands of the consumers in the west coast.
The consumers in the West African market have been expecting Dansa products
since its introduction in February 2006, of the one litre, 200ml fruit juice
and Doy pack." Iraoya further disclosed that the new Dansa 500ml VIP pack
would be availble in six exciting flavours - orange, apple, mango, citrus,
tropical and pineapple.
EXPANSION PLAN
Presently, the GROUP has in its food divisions the following
manufacturing plants:
A sugar refinery in Lagos
Flour mills in Lagos, Kano and Calabar
Spaghetti and Macaroni factory in Lagos
Salt plants in Lagos and Calabar.
PRINCIPAL ANTECEDENT
1. Name: Alhaji Sani
Dangote
Position: Chairman /CEO
Profession: Businessman
Date of Birth: Nil
Place of Birth: Kano
State of Origin: Kano
Nationality: Nigerian
Work History: He has over 20 years working experience. He
is also a Board member of Dangote Group of Companies and other notable
Companies in Nigeria.
PHYSICAL VISIT
Visits were made
to the followings:
COMPANY PREMISES
CORPORATE AFFAIRS COMMISSION.
FINANCES
Subject Audited Account was not available as at the time of our
investigation.
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ASSESSMENT: |
Apparently healthy, with adequate working capital to meet normal
commitments. |
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CREDIT LINE
AMOUNT: |
FAIR |
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CREDIT LINE
OPINION: |
Transaction with subject is considered to be fair trade risk |
DIRECT INTERVIEW
1. Name: Mr. Monday
According to Mr. Monday, the Managing Director was not around; he
collected the questionnaire and refuses to give out any information. According
to public informants, Dansa Food produces around million litres of
juice annually
INDUSTRIAL OVERVIEW / OPERATING
ENVIRONMENT
Nigeria being a country of vast culture and ethnicity in the world of no
doubt has a very wide range of food option than most countries. This further
proves the need for the dynamism that avails in the menu and delicacies present
in Nigerian eateries and Restaurants. The sector is very vibrant. For example,
in Lagos State alone, over 1,000,000,000 naira exchanges hands daily on feeding
alone.
Fast food joints exists in every nooks and crannies, there is an average
of two fast food joints on every street in Nigeria. Of pastries and foreign
delicacies, there are unique restaurants like the Chinese Restaurant, which
sells intercontinental dishes. Other restaurants like Mr. Biggs, Sweet
Sensation, Tasty Fried Chicken, and Mamma Cass are eateries of high reputation
in Nigeria. There are other joints locally refereed to as “Mama put” this
constitute 70% of all eatery joints in Nigeria and is majorly patronized by
people who have taste for real local delicacies.
In general, the Nigerian eateries have not attained to what obtains in
the advance countries. All these professional eateries have and their
association products are monitored by NAFDAC.
Nigeria being a nation endowed with large human resources favoured the
influx of restaurant and eatery business, the fact above remains promising for
further investment in the sector. Therefore, the sector remains lucrative for a
would be investor.
CMT REPORT (Corruption, Money
Laundering & Terrorism)
Public Notice from various sources including but not limited to: The
Courts, Nigerian Prison Service, Economic & Financial Crimes Commission
(EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food
& Drugs administration and Control (NAFDAC), Independent Corrupt Practices
and Other Related Offences Commission (ICPC) Etc.
No negative information on subject from the above agencies as at the
time of compiling this report.
COMPANY LOCATION
The company is located at 9th Floor, Union Marble House 1,
Alfred Rewane Road, Ikoyi, Lagos. It is also located directly opposite falomo round
about by the left. It falls under Dangote Groups of Companies. FACTORY ADDRESS:
Dansa Foods Limited has set up the state-of-the art facility in its factory, Lagos
OFFICIAL REMARKS
Having carried out all necessary research on subjects, our investigations
revealed that, the company, Dansa Foods Limited is duly registered in Nigeria, with a registered address, 1A,
Ungogo Road, Kano. While the operational office address is 9th
Floor, Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos-Nigeria.
All information contained in this reports are from both primary and
secondary sources.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)