MIRA
INFORM REPORT
|
Report Date : |
11.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
W.J. TOWELL AND CO LLC |
|
|
|
|
Registered Office : |
W J Towell Building, Bank Al Marakzi Street, Muttrah Business
District, PO Box 1040, Ruwi 112, Muscat |
|
|
|
|
Country : |
Sultanate of Oman |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
1866 |
|
|
|
|
Com. Reg. No.: |
373, Muscat |
|
|
|
|
Legal Form : |
Limited Liability Company - LLC |
|
|
|
|
Line of Business : |
Subject’s activities are performed through the following divisions: Consumer Goods Division, Building Materials Division, Property
Division, Computer Services Division, Engineering & Supplies Division,
Insurance Division, Restaurant & Catering Services Division |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 1,500,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name :
W.J. TOWELL AND CO LLC
Country of Origin :
Sultanate of Oman
Legal Form :
Limited Liability Company - LLC
Start Date :
1866
Registration Date :
1974
Commercial Registration Number :
373, Muscat
Issued Capital :
RO 10,000,000
Paid up Capital :
RO 10,000,000
Total Workforce :
1,000
Line of Business :
Subject operates several divisions (see below for details).
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY NAME
W.J. TOWELL AND CO LLC
ADDRESS
Registered & Physical Address
Building : W J Towell
Building
Street : Bank Al
Marakzi Street
Area : Muttrah
Business District
PO Box : 1040, Ruwi 112
Town : Muscat
Country : Sultanate of
Oman
Telephone : (968) 24526422
/ 24708304 / 24708308
Facsimile : (968) 24793882
/ 24794367
Email : general@wjtowell.com
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Muscat.
Branch Office (s)
Subject operates several branches located
throughout Oman, including Salalah, Nizwa, Soha, Buraimi, Sur, and Ibri.
KEY PRINCIPALS
· Kamal Abdul Redha
Sultan Chairman
· Hussain Jawad Managing
Director
· Tawiq Ahmed Sultan Deputy
Managing Director
· Anwar Ali Sultan Director
· Jamil Ali Sultan Director
· Hassan Qamer
Sultan Director
· Murtadha Ahmed
Sultan Director
· Mushtaq Qamer
Sultan Director
· Mohamed Ali Abdulamir
Sultan Director
· Imad Kamal Sultan Director
· Reza Qamer Sultan General
Manager
· Naeem Qamer Sultan Marketing
Manager
· Mustafa Ahmed
Sultan Sales
Manager
· Iqbal Abdul Redha
Sultan Business
Development Manager
· Riyad Ali Sultan Manager
– Building Materials Division
LEGAL FORM & OWNERS
Date of
Establishment : Subject’s
operations date back to 1866, however it was registered
under its current
style in 1974.
History : Subject’s
operations date back to 1866 when the business was
originally
established as a General Partnership between Mr W.J.
Towell, an American citizen, Archibald McKirdy, and L.S. Maguire.
In
1893 Mohamed Fadhel was made a full partner in the business.
In the late 1890's when Jack Towell returned
to America, he sold his shares of the company to his associates. At the turn of
the century McKirdy also retired selling his portion of the enterprise to
Maguire and Mohamed Fadhel. When Maguire died in 1914, Mohamed Fadhel became
the sole owner and his descendants have directed the company ever since
In 1916, Mr Mohamed Fadhel died leaving the
business to his son Sultan, who gave the family its surname. In the late 1920's
Sultan handed the company over to his son Abdul Redha who later shared the
responsibility with his brothers Qamer, Ali, Ahmed and Abdul Amir.
In 1974 subject
was registered as a Limited Liability Company.
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company –
LLC)
Commercial Reg.
No. : 373, Muscat
Issued Capital : RO 10,000,000
Paid up Capital : RO 10,000,000
Name of Shareholder (s)
· Kamal Abdul Redha
Sultan
· Hussain Jawad
· Tawiq Ahmed Sultan
· Anwar Ali Sultan
· Jamil Ali Sultan
· Hassan Qamer
Sultan
· Murtadha Ahmed
Sultan
· Mushtaq Qamer
Sultan
· Mohamed Ali
Abdulamir Sultan
· Imad Kamal Sultan
Non Omani
Participation
The participation of non-Omani nationals in a trade or business in Oman is governed by the Foreign Business Investment Law, which sets capital requirements and requires 35 % Omani participation in capital and profits.
Note to the Legal Form
The Limited Liability Company (LLC), or private company, is the form of business entity usually chosen by foreign investors. It may be formed by a minimum of 2 and a maximum of 30 natural or legal persons, whose liability is limited to their shares in the company’s capital. The minimum capital of a Limited Liability Company with foreign ownership should be RO 150,000, although this may be reduced to a minimum of RO 30,000 with the approval of the Minister of Commerce and Industry. For a company wholly owned by Omani nationals, the minimum capital is RO 10,000.
Contributions to capital may be made in cash of kind. Capital may not be increased by public subscription. The full amount of the share value must be paid in on subscription. Shares may not be assigned to a non-member, unless the other existing members are granted a pre-emptive right to purchase the shares.
AFFILIATED COMPANIES
· Taylor Woodrow -
Towell Co. LLC
· Brown & Root
Mid East LLC
· General Electric
& Trading Co. LLC (Genetco)
· Jotun Paints &
Co. LLC
· Premix LLC
· Readymix LLC
· Oman National
Dairy Products Co SAOG
· Oman International
Development Co. LLC
· Cold Storage &
Trading Co. LLC
· Towell
Lever LLC
· Granherne &
Co. LLC
· Housetex Co. Ltd
· Al Fajer
Furnishing Co LLC
· Towell Auto Centre
· Middle East
Telecommunication Company LLC
· Towell
Construction & Maintenance Co. LLC
· Environmental
Services LLC
· Matrah Cold Stores
LLC
· Modern Cleaning
Services
· Towell Barwil Co.
LLC
· Mazoon Printing
Press
· Towell Tools &
Engineering Co LLC
LINE OF BUSINESS
Operations : Subject’s activities are performed through the
following divisions:
·
Consumer Goods Division
Address: Bail Al Falaj Street
PO Box: 678
Al Wadi Al Kabir
117
Tel: (968)
7715224 / 7717160 / 7714610
Fax: (968)
7713196
Email: wjtcpd@omantel.net.om
Personnel: Nadir Yar Khan – Marketing Manager
Activities: This division specialises in the
distribution of fast moving consumer goods and has an active client base of
more than 3,000 customers.
The division specialises in two
types of products – food and non-food items, such as confectionery &
ice-creams, pasta and sauces, pet foods, cosmetics and perfumes, baby care
products, shaving items, and airfreshners.
Brands: SULTAN, MARS, DOLMIO, PEDIGREE, GUYLIAN,
AMUROL, KENT, LESIEUR OILS, CAPRISONNE, MOUSSY, VICENZI PUFF PASTRY, AL-AMEER,
SULTAN, and PLUMROSE.
Suppliers: Euro Milk Germany
Super Max India
·
Building Materials Division
Address: Bail Al Falaj Street
PO Box: 822
Al Wadi Al Kabir
117
Tel: (968)
7714789 / 7713478
Fax: (968)
7717955
Email: towellbm@omantel.net.om
Personnel: R.S. Vishwanathan Division General Manager
Shyam
Nilkund Division Marketing
Manager
Activities: The Building Material Division of W.J.
Towell began its operation when it first acquired the Agency for Twyford (UK)
Sanitary ware in 1949. This was followed by importation of cement and steel
bars for the construction industry.
As business prospered, in 1980's,
many agency lines were added, such as Permanite Waterproofing, Snowcem and
Sandtex Paints, Mondo Rubber, Salvarani Kitchens, Modulex Signs, Langley
Cubicles, Brady Shutters and Allgood Modric Ironmongery.
The
division also supplies a wide range of safety equipment.
·
Property Division
Address: Sohar House, 1st Floor, Suite
No. 11
Madinat Al Sultan
Qaboos
PO Box: 1040,
Ruwi 112
Tel: (968) 600562
/ 603656 / 601491
Fax: (968) 602657
Email: wjtprpty@omantel.net.om
Personnel: Koshy Varghese Division General Manager
Activities: The Property Division is responsible for
the management of all the properties owned by W.J. Towell group of
companies. The property portfolio under management consists of both commercial,
residential and industrial properties. These include a Commercial Centre and a
large residential estate in Medinat Al Sultan Qaboos.
The division's
property activities extend to acquisition, development, construction, selling
and leasing. The division is in process of redeveloping its residential and
commercial properties in Medinat Al Sultan Qaboos.
In addition to
the customary services of property rentals and sales, the division can provide
complete in-house maintenance services round the clock. It also manages
properties of selected landlords in various parts of Muscat capital area.
·
Computer Services Division
Activities: The division is engaged in the design,
development and implementation of integrated solutions on a turnkey basis, the
Division has completed many projects both in private and public sector.
It is also a
major supplier of quality software and hardware products.
Brands: TIMICS, LOTUS, FRONT RANGE, ACER,
BROTHER, SAKHR, IDENTIX, SPICA, PROXIMA, IBM, BRIO, and AUTOCAD.
·
Engineering & Supplies Division
Address: New Bridgestone Building
Al Wadi Al Kabir
PO Box: 1040,
Ruwi 112
Tel: (968)
7713719
Fax: (968)
7715470
Email: wjttsd@omantel.net.om
Personnel: Mohd Iqbal Dupare Manager – Supplies Department
Activities: The supply Department, with the Engineering and Supplies Division, is extensively active in tenders, providing general supplies for various government departments, particularly the Ministry of Defence, Civil Aviation, Ministry of Health and Petroleum Development of Oman. It is listed on the Approved List of Suppliers in other Ministries, such as the Royal Oman Police and the Royal Guard of Oman.
The wide range of
products includes: Military /Police/Special Forces (Uniform, Uniform
Accessories, Artillery, Arms & Ammunitions, Badge (Woven, Metal
Embroidered) Cap, Hat, Ceremonial uniforms and accessories Bands Equipment,
Household Equipment, Hotel supplies, General supplies Chemical, Stationery
paper products, Textile camouflage Net, Webbing Equipment, Glassware and
crockery, Tableware, Bed Linen, Bedsheet, Blanket, Tent, Tarpaulin, Camouflage
material, Poly /Woollen material.
The Engineering
Department is a major player for supply/services pertaining to the Power,
Oilfield and Gas, and Wastewater Industry. The department is actively involved
in the field of Gas Turbines, Diesel Generators, Sewage Treatment Plants,
Desalination Plants, Filtration technology and various Oilfield products such
as Beam pumps, Plunger pumps, and Cementing units.
·
Insurance Division
Address: PO Box: 2899, Ruwi 112
Tel: (968) 797536
Fax: (968) 797539
Email: wjtins@omantel.net.om
Activities: The Insurance
Division commenced its operations as the sole Agents of Guardian Royal Exchange
Assurance plc (renamed as AXA Insurance plc in 1999) for Sultanate of Oman in
the year 1973.
Following the strategic decision of
AXA to discontinue their underwriting operation in Oman, Bahrain and Kuwait,
their agency arrangement with WJT ended effective 28.12.2001. The Insurance
Division is now appointed as Run-off Administrator and Claims Settlers for AXA
and will continue to service existing policies and all present and future
claims.
The Insurance Division has now
entered into an agency arrangement with Norwich Union Insurance (Gulf)
B.S.C.(c) and offer Norwich products to its clients as a replacement to their
existing AXA cover as and when they come up for renewal and also to cater to
their new insurance requirements.
·
Restaurant & Catering Services Division
Activities: This division was established in 1993 and
operates a Chinese restaurant, called the “Silk Route” as well as providing
catering services.
Import Countries : Europe, the Far East and the United States of
America.
International Suppliers :
· Burmah Castrol United Kingdom
· Twyfords Limited United Kingdom
· Mars Ltd United
Kingdom
· Unilever Exports
Ltd United
Kingdom
· Securicor
International United
Kingdom
· Mazda Motor Corp Japan
· Lesieur
Alimentaire International France
Operating Trend : Steady
Subject has a workforce of approximately 1,000 employees.
FINANCIAL HIGHLIGHTS
Financial highlights provided by outside sources are given below :
Currency : Riyal Omani (RO)
Year
Ending 31/12/06: Year
Ending 31/12/07:
Sales RO
69,350,000 RO
72,490,000
Local sources consider subject’s financial condition to be Good.
Legal Reserve
Requirement
A Limited Liability
Company (LLC) is required each year to set aside 10% of its net profits as a
legal reserve until the reserve reaches one-third of the company’s capital.
This legal reserve is not available for distribution.
BANKERS
·
Bank Muscat SAOG
1073, Muttrah Commercial
District
Greater Muttrah
P.O.Box :
3134, Ruwi
Muscat
112
Tel:
(968) 24703044 / 24703137 / 24707015
Fax:
(968) 24793536
· The Commercial Bank of Oman SAOG
Muttrah
Business District
PO Box :
1696, Ruwi 112
Muscat
Tel :
(968) 793225 / 793226 / 793228
Fax :
(968) 793229
·
Bank of Oman, Bahrain & Kuwait
BOBK
House
Al Burj
Street
PO Box :
4708, Ruwi 112
Muscat
Tel :
(968) 701528 / 701532 / 701788
Fax :
(968) 705607 / 793536
·
Standard Chartered Bank
PO Box : 2353
Ruwi 112
Tel : (968) 703999
/ 703796 / 703574
Fax : (968) 796864
PAYMENT HISTORY
Subject’s payment record is reported to be met in a regular and timely
manner.
Date of transaction September
2000 June 2003
Credit amount 189,000 100,000
Amount overdue 0 0
Payment terms 60
days 60
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Deutsch
Marks US Dollars
GENERAL COMMENTS
W.J. Towell and Co LLC is very well established in the local business
market with operations dating back to 1866. It enjoys and excellent reputation
for the quality of its products and services with interests in consumer goods,
computers, building materials, catering, insurance and property.
During the course of this investigation nothing detrimental was
uncovered regarding the manner in which payment obligations are fulfilled. The
operating history is clear and the financial situation is satisfactory. As such
we are of the opinion that the subject is a fair trade risk.
Maximum suggested credit figure: US$ 1,500,000
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)