MIRA
INFORM REPORT
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Report Date : |
24.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
DANA PHARMACEUTICAL LIMITED |
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Registered Office : |
47/57, Martins Street, Lagos Island, Lagos |
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Country : |
Nigeria |
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Date of Incorporation : |
25.04.1996 |
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Com. Reg. No.: |
RC: 292251 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Pharmaceutical / Healthcare Products |
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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
OPERATIONS
Subject is into manufacturing of
pharmaceutical / healthcare products
In Nigeria, subject is considered to be a major concern in this sector
Subject is located in a commercial area Dana House, Shiroro-Dam Road,
Maitumbi Minna
Niger State, Nigeria.
RISK FACTORS
Credit Risk
RISK RATING ASSESSMENT:
Apparently healthy, with adequate working capital to meet normal commitments
CREDIT LINE AMOUNT: Normal
CREDIT LINE OPINION: Subject
appears to be a credit worthy organization
External
Constraints:
Subject operates in a sector where fluctuation in prices of
raw materials, Transportation and Logistics poses great challenges. Some other
challenges include bad roads, other road users’ carelessness, and substandard
drugs used in treating patients in various health institutions.
Fluctuation of prices in Foreign Exchange also poses a great challenge.
Similarly, activities of drug dealers and bureaucracy of Government Regulatory
Agencies in this sector has also slow down the pace at which business
activities are being conducted.
Internal
Constraints:
The company is not under any major constraints internally, whether
management or space.
However, the only challenge encountered by the company is in the
unfaithfulness of drivers and lack of expertise in some technicalities of
vehicle repairs.
IDENTIFICATION
COMPANY NAME: DANA PHARMACEUTICALS LIMITED
REGISTERED NAME: DANA
PHARMACEUTICAL LIMITED
REGISTERED ADDRESS: 47/57, Martins Street, Lagos
Island, Lagos-Nigeria
HEAD OFFICE ADDRESS: Dana House,
Shiroro-Dam Road, Maitumbi Minna
Niger State, Nigeria.
TELEPHONE(S): 234-66-222786
MOBILE: 234-1-7754190,8037769999
FAX: 234-66-220165
E-MAIL: contact@danagroup.com, pharma@danagroup.com
WEBSITE: www.danagroup.com
PRIMARY CONTACT: Mr. Mahendra B. Tilwani (Mike) (Manager, Lagos Office,
Isolo)
234-8059998190
Currency: All monetary quoted in this report are in Nigerian Naira, the
local currency or unless otherwise stated. The exchange rate is N118 to
1 US $.
SUMMARY
NATURE
OF PREMISES: Owned, office space at head office occupying
approximately 1,800 square metres.
DATE INCORPORATED: 25th
April, 1996
YEAR BEGAN OPERATION:
1996
LEGAL FORM: Private
Limited Company
REGISTRATION NO:
RC: 292251
SHARE CAPITAL: 20,
000, 000.00
ALLOTTED SHARE CAPITAL: 20,
000, 000.00
PAID-UP CAPITAL 20,
000, 000.00
STAFF STRENGHT: about
200
TRADING STYE: DANA
DIRECTOR
Ramesh Hathiramani
Jacky Hathiramani
Gautam Hathiramani
MANAGEMENT
Ramesh Hathiramani – Group Chairman
Jacky Hathiramani – Group Managing Director
Gautam Hathiramani – Group Executive Director
Mr. Mahendra B. Tilwani
(Mike) (Manager, Lagos
Office)
BACKGROUND
Dana Pharmaceuticals Limited commenced manufacturing of intravenous
fluids in 1996. The factory has been
expanded with the setting up of a formulation plant for the manufacture of a
wide range of pharmaceutical formulations. With her motto "a Commitment to
Healthcare" in mind and one of the
best technologies in hand, they are devoted to the production of quality and
genuine products that are offered at the most affordable prices nationwide.
About the Group: Dana Group of
Companies - buoyant, flourishing and diversified units, owing its foundation to
the vision of the Hathiramani family. From its maiden advent in Pharmaceuticals
Manufacturing in the mid-80's, the Group has diversified into bulk importation of
Industrial Chemicals, affordable Pharmaceuticals and Surgicals, Commodities,
Polyethylenes, Automobiles. In continuing with the Group Philosophy of leading
by example, the successful installation and commissioning of a plastic
household plant in the year 2000 is now followed by the setting up of a
Formulation Plant and a Table Water Bottling Plant in 2003. The Group is
shortly intending to establish a Rice Mill in Nigeria and also assembly units
for motorcycles and vehicles. Taking a further stride into the future, a milk
plant under the banner of Danaco Milk , a noodle plant under the banner of Sun
Yum and the recently acquired Steel Rolling Mill in Katsina to produce debars
and wire rods is a high point in year 2006.
Dana Group, with its resources, reach and marketing acumen will lead the
field in Industrial Chemicals and Pharmaceuticals for a very long time to come.
The turn of the century has fulfilled its vision of a large conglomerate having
interests in diverse fields of operations, including that in manufacturing and
importation of new varieties of Pharmaceutical products. The Group's
diversification into the Food Sector and Automobile Sector, lends further
credence to its capability and multi-faceted operations. Sound financials and
exemplary business vision have made the group a leader in every area of
operation.
The contribution of Dana Group to the National Economy has been
excellent and beyond doubt. Apart from making well over 2,700 people gainfully
employed either directly or indirectly, it has dutifully established to be a
socially responsible organization. Among others, Dana Group is sponsoring Sri
Sai Vandana Foundation (SSVF), a registered charity since 1995 in Nigeria. SSVF
conducts frequent and regular donations to the under-privileged in Lagos and
its surrounds.
PRINCIPAL ANTECEDENTS
1. Ramesh Hathiramani – Group
Chairman
Born in West Africa in 1950, his career spans over four decades of
fruitful endeavour. As a young graduate, and himself an entrepreneur at heart, he
commenced his own trading operations in the early 70s. Some years later,
breaking away from the tradition of dealing in general merchandise, he laid the
foundations of his first pharmaceutical manufacturing unit. The seed of what
was to become the Dana Group of Companies was sown and over the years he began
diversifying into new fields, specialising in the MNC dominated field of
industrial chemicals. Further expansions into new industries continued
alongside a growing portfolio of trading operations, popularising the Dana
brand as a name synonymous with quality and affordability, and also
representing world-class brands in Nigeria and the Sub-Saharan region. His
business enterprise and acumen have resulted into a well diversified and
financially strong Group of Companies recognised as a foremost business house
in Nigeria with a firm industrial base.
2. Jacky Hathiramani – Group Managing Director
As the Group Managing Director, Jacky has to his credit many business
innovations that have enabled Dana Group to successfully foray into diversified
fields in new product lines. An honours graduate in Business Administration
from European Business School of London, he has, since 1997 been responsible
for strategically directing the Group in building a formidable niche in Nigeria
as conglomerate dealing within several sectors of the economy. He has steered
the Dana Group to its current status as a leading player and his presence has
seen the Group increase its turnover manifold. The drive into Automobiles and
Steel has assured success, which has been further augmented by the recently
established FMCG factory for Milk Powder packaging and Instant Noodles. The
upcoming new Rice Mill and Steel Rolling Mill has been added to his portfolio.
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3. Gautam Hathiramani – Group Executive
Director
With an Honours Degree in Business Administration from the European
Business School and various internships in international trade and the
pharmaceutical manufacturing arena, Gautam Hathiramani joined the Group's
mainstream operations in Nigeria in '99. At first involved with the
pharmaceutical division, he then took charge of Dana Plast and was also
responsible for the Group's initial foray into the FMCG market with the launch
of Aquadana water. Consistent attention to product quality and development has
led to Dana being established as a trusted household name. With this seal of
quality and dynamic management, Dana is set to roll out further expansion plans
to bring more products to its customers.
COMPANY LOCATION
The company is located at Dana House,
Shiroro-Dam Road, Maitumbi Minna Niger
State, Nigeria.
BRANCHES
Dana Contacts in Nigeria
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DANA GROUP OF COMPANIES LIMITED Wema Towers |
DANA PLAST LIMITED 8A, Ilasamaja Industrial Estate |
Dana Airlines Limited 37, Sobo Arobiodu Street, |
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Dana Drugs Limited KM 4, Apapa-Oshodi Expressway |
DANA MOTORS LIMITED Kia Plaza |
ASHMINA LIMITED Dana House |
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Dana Electronics Limited Philips Showroom 33 Akin Adesola Street V/I Dana House 116-120 Isolo Expressway |
Dana Services Limited 1st Floor, Feyide House |
Dana Industries Limited 8A, Ilasamaja Industrial Estate |
Dana Contacts in Overseas
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DANA pharmaceuticals pvt. LIMITED Plot 34, M.I.D.C, Morivali, Ambernath
Mumbai, India. |
vandana (uk) LIMITED 11A Canfield place London NW6 3BT, UK Fax: +44-20-7328-9977 |
Dana overseas PVT. Limited 209,Bhaveshwar complex Vidyavihar (west)
Mumbai -85, India |
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vanDana fzco Dubai Airport free Zone 4th
East Wing A, Ground Floor G-02 P.O. Box 54750 Dubai, U.A.E. |
DANA LIMITED Plot No 3 Near Odaw Railway Station Ring
Road South Accra-Ghana |
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PARENT COMPANIES
DANA Group of Companies
RELATED COMPANIES
1. DANA PLAST LIMITED
2. Dana Airlines
Limited
3. Dana Drugs Limited
4. DANA MOTORS
LIMITED
5. ASHMINA LIMITED
6. Dana Electronics
Limited
7. Dana Services
Limited
8. Dana Industries
Limited
TRADE REFERENCES
Subject has both local and international payment references
PAYMENT REFERENCES
Subject has both local and international payment references
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
PRODUCT DESCRIPTION
Amaxin, Amebanil,
Danacillin, Danaclox,
Danacyclin, Dana
CPM, Danacid, Ferrodan,
Paradana.
COUNTRY OF IMPORT/EXPORT
Many countries
TYPES OF CUSTOMERS
*Group of Companies*
Local Authorities, Foreign Companies*
PHYSICAL VISIT
Company Premises
Corporate Affairs Commission
Branch office in Lagos
DIRECT INTERVIEW
1. Name: Mr. Mahendra B. Tilwani (Mike)
Position Manager,
Lagos Office (Isolo)
He declined further information
FINANCES
Subject Audited Accounts was not available as the time of compiling this
report.
INDUSTRIAL OVERVIEW/ OPERATING
ENVIRONMENT
Subject is operating in an industry with very great potentials. The
pharmaceutical industry is very important to the economy of every country.
Pharmaceuticals, especially drugs, are so priceless that no nation can survive
without them and every serious-minded government pays great attention to drugs.
Drugs are so important that the World Health organization (WHO) recommends a
National Drug Policy for every country. Nigeria’s pharmaceutical market is
large, considering the size of the population growth it is likely to increase
speedily in the coming years, because the country has a huge potential. Aside
from being Africa’s most populous nation, there is an entrepreneurial ethic in
the country, which could help the pharmaceutical sector develop rapidly.
Nevertheless, the national health system still suffers from low levels
of funding and total per capita healthcare expenditure which is well below
US$10.
Arguably, the key problem facing the sector is the scourge of
counterfeit drugs, which account for approximately half of all drug sales in
the country. Unsafe medicines kill thousands of people each year, also
undermine the local manufacturing sector, and deter multinationals. However,
the National Agency for Food and Drug Administration and Control (NAFDAC) is
fighting to stem the illicit trade, conducting 15, 697 raids between 2001 and
2006. Although this had had an impact, the trade continues unabated, due to
high demand for affordable treatments. Nonetheless, the activity of NAFDAC has
greatly encouraged more indigenous players in this sector.
Despite the apparent growth in the number of indigenous players in the
industry, there remains the fact that no company has set up a basic active raw
material manufacturing plant in Nigeria, not even for Paracetamol or Aspirin.
The pharmaceutical industry is greatly challenged in this regard.
The amendment of the Essential Drug List (EDL) decree restricting the
application only to public health institutions was the first tonic to the
industry. With the amendment to this decree, companies were able to expand
their product base, resuscitate abandoned product lines, and increase their
volume, turnover and profit margins. Industries were able to source their raw
materials and equipment, free from encumbrances. This was of great benefit.
The abolition of Value Added Tax (VAT) on pharmaceutical raw materials,
coupled with the reduction of tariff on raw materials and equipment by the
Nigerian government have greatly encouraged the pharmaceutical industry.
NAFDAC’s differential tariff and its war against fake drugs are now
creating a boom for the pharmaceutical industry. Presently, there are
eighty-six (86) local pharmaceutical manufacturing companies producing only
about 30% of Nigeria’s drug need.
This sector of the economy has great potentials for intending investors.
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.
OFFICIAL REMARKS
Having carried out all necessary research on subjects, our
investigations revealed that, the company, Dana Pharmaceutical Limited is
duly registered in Nigeria, with a registered address, 47/57, Martins Street, Lagos Island, Lagos. While the operational office
address is at Dana House, Shiroro-Dam Road, Maitumbi Minna, Niger State,
Nigeria.
Subject is into genuine business transactions. Subject is an ongoing concern.
All information contained in this report is 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%)