MIRA
INFORM REPORT
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Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
PAKISTAN TOBACCO COMPANY LIMITED |
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Registered Office : |
Evacuee Trust
Complex, Agha Khan Road, Sector F-5/1, P.O. Box 2549 Islamabad – 44000 |
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Country : |
Pakistan |
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Date of Incorporation : |
November 18, 1947 |
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Com. Reg. No.: |
K-242/19471101 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacture &
sale of cigarettes. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
PKR 20,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
PAKISTAN TOBACCO COMPANY LIMITED
Registered Office
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Registered Address |
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Evacuee Trust
Complex, Agha Khan Road, Sector F-5/1, P.O. Box 2549 Islamabad - 44000,
Pakistan. |
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Tel |
92 (51) 20832000,
20832001 |
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Fax |
92 (51) 2278376,
2278377 |
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Website |
Plant Location
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Address |
Plot No. F-2, Mauripur Road, S.I.T.E., Karachi, Pakistan. |
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Tel # |
92 (21) 2570160 |
Short Description Of
Business
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Nature of Business |
Manufacture & sale of cigarettes. |
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Year Established |
November 18, 1947 |
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Registration # |
K-242/19471101 |
Branches
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Address |
F.Block-2,1st Floor,New Garden Town, Lahore, Pakistan. |
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Tel # |
92 (42) 5835648, 5836903 |
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Fax # |
92 (42) 5831932 |
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Address |
National Insurance Corp.Bldg., Abbasi Shaheed Road Karachi, Pakistan. |
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Tel # |
92 (21) 5675114, 5675116 |
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Fax # |
92 (21) 5681537 |
Auditors
A.F. Ferguson & Co.
(Chartered
Accountants)
Legal Status
Pakistan Tobacco Company Limited is incorporated in Pakistan and is listed on the three stock exchanges of Pakistan.
Details of Directors
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Names |
Designation |
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Mr. Aslam Khaliq Mr. William Toh Ah Wah Mr. Fazal Ghafoor Mr. Mubasher Raza Mr. Ahmed Zeb Mr. Feroze Ahmed Lt Gen. (Retd) Ali Kuli Khan Khattak Mr. Brendan James Brady Mr. Fatehali Walimuhammad Vellani Mr. Istaqbal Mehdi Mr. Kunwar Idris Mr. Mueen Afzal |
Chairman Managing Director and CEO Marketing Director Finance Director Production Director IT Director Marketing Director (Non-Executive Director) (Non-Executive Director) (Non-Executive Director) (Non-Executive Director) (Non-Executive Director) |
Categories of
Shareholders
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Names |
Number
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Shares Held
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Percentage (%) |
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Individuals Investment Companies Insurance Companies Joint Stock Companies Financial Institutions Modarabas Government Organisations Foreign Investors Co-operative Societies Charitable Trusts & Others |
3,893 6 9 28 14 3 3 15 2 6 |
5,070,641 1,002,005 1,292,627 258,160 4,883,723 6,122 41 242,596,916 2,189 381,368 |
2.0 0.4 0.5 0.1 1.9 0.0 0.0 95.0 0.0 0.1 |
Holding Company
British American Tobacco (Investments) Limited is the Holding Company and is incorporated in the United Kingdom.
Associates
A. Subsidiary
(1) Phoenix (Private) Limited was incorporated on March 9, 1992 in Azad Kashmir as a wholly owned subsidiary of Pakistan Tobacco Company Limited. The object for which the company has been incorporated is to operate and manage an industrial undertaking in Azad Kashmir to manage and deal in tobacco products.
B. Associated Companies
British American Tobacco - Bangladesh.
British American Tobacco - Uzbekistan.
British American Tobacco - Regional Office Hong Kong.
British American Tobacco - South Korea.
British American Tobacco - Germany.
British American Tobacco - Honduras.
British American Tobacco - Singapore.
British American Tobacco - Croatia.
British American Tobacco - Uganda.
British American Tobacco - Nigeria.
British American Tobacco - Dubai.
British American Tobacco - West Indies.
British American Tobacco - Hungary.
Ceylon Tobacco Company - Sri Lanka.
Rothmans International.
Products
Gold Flake, Embassy, Benson & Hedges, John Players Gold Leaf, Capstan, Wills International.
Number of Employees
1,818
Capacity and
Production
Against an estimated manufacturing capacity of 33,114 (2004: 28,174) million cigarettes, actual production was 31,758 (2004: 27,001) million cigarettes. There was no production through any outside manufacturing sources as actual production was sufficient to meet market demand.
Customers
Mainly in all cities of Pakistan.
Bankers
ABN – AMRO Bank.
American Express Bank.
Citibank N.A.
Habib Bank.
Hong Kong & Shanghai Banking Corporation.
Muslim Commercial Bank Limited.
National Bank of Pakistan.
Standard Chartered Bank.
Union Bank Limited.
Sales Performance
The Company achieved a record sales volume of 30.6 billion sticks – 14% growth vs. Same Period Last Year (SPLY). The incremental sales volume of 3.8 billion sticks in 2005 is an impressive achievement compared to 2004 especially when the industry’ overall growth is estimated at 3%. The aggressive investment behind the brands over the years, greater emphasis on the understanding of consumer behaviour, use of innovative and effective communication tools and focus on trade support have yielded a consistent and strong growth in our brand portfolio. Gold Flake sales grew at a remarkable rate of 36% vs. SPLY, whereas Gold Leaf further solidified its base with impressive growth of 9% vs. SPLY. Embassy is the only brand in our portfolio that faced volume erosion in the face of stiff competition from the cheap tax evaded offers from the illicit sector.
Contribution to the
National Exchequer
PTC is the largest excise tax payer in private sector of the country. In 2005, the Company contributed Rs. 19.2 billion to the national exchequer in excise duty, sales tax, and custom duties etc. - 18.9% higher than SPLY. Moreover, foreign exchange of Rs 263 million (24% higher than SPLY) was also generated through export of leaf, further reflecting its participation in the national economy.
Financial Position
Very Sound.
Plant Modernisation
The Company continued modernising and automating its manufacturing facilities to deliver products of world class quality and meet the growth in market demand. During the year, the Company invested Rs. 586 million in Plant and Machinery out of a total investment of Rs. 717 million in fixed assets.
History and
background of the company
Pakistan Tobacco Company was incorporated in 1947 immediately after partition when it took over the business of the Imperial Tobacco Company of India operational in the subcontinent since 1926. The company is part of the worldwide British American Tobacco (BAT) group, which employs over 90,000 people with operations in around 180 countries. It is a market leader in more than 50 countries selling over 300 brands. In 2002 the Group sold and produced over 15% share of the world market of cigarettes. Initially a pilot production plant was set up in a warehouse in Karachi Port with a monthly production of 30 million cigarettes, which has now grown to two fully equipped factories manufacturing over 2 billion cigarettes per month. Today, Pakistan Tobacco Company is the largest revenue generator (outside the oil sector) in the country, paying more taxes than the entire textile sector, which is the largest industrial sector in the country.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.68 |
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UK Pound |
1 |
Rs. 117.20 |
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Euro |
1 |
Rs. 80.10 |
Comments
Pakistan Tobacco Company is a world class Company. It is the first Company which was awarded Class A status, as part of the international total business excellence programme MRPII Version 5, audited by the internationally renowned consultant Oliver Wight. Recently in a recertification audit it were again awarded Class A, making it the first company in the world to have achieved a Class A re-certification in MRPII version 5. Recently both the factories and the Leaf areas got ISO 9001 and 14001 certified proving once again the world-class standards of the Company. The company can be considered good for business dealing at usual trade terms and conditions. MAX CREDIT LIMIT: PKR 20,000,000/-.
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/normal. |
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%)