MIRA
INFORM REPORT
|
Report Date : |
20.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MECCAIN FOODS INDIA PRIVATE LIMITED |
|
|
|
|
Registered Office : |
C-6, S D A Commercial Complex, New Delhi-110016 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
23.03.1996 |
|
|
|
|
Com. Reg. No.: |
55-77452 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U15139DL1996PTC077452 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELM09231F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACM4861G |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of All Kinds of Food products, including frozen foods, juices
and beverages. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Mccain Group who has operations in 110 countries.
Trade relations are fair. Profit margin is under severe pressure. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
C-6, S D A Commercial Complex, New Delhi-110016, India |
|
Tel. No.: |
91-11-265271781 |
|
Fax No.: |
91-11-26527169 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Anil Rastogi |
|
Designation : |
Dicector |
|
Address : |
6, Peedbles Avenue, Toronto, M3C2NB, Canada |
|
Date of Birth/Age : |
17.03.19.50 |
|
Date of Appointment : |
01.12.2005 |
|
|
|
|
Name : |
Mr. George Carl Bird |
|
Designation : |
Director |
|
Address : |
38, Avenue Street, # 2201, Toronto- M5R2G2, Canada |
|
Date of Birth/Age : |
04.03.1945 |
|
Date of Appointment : |
01.10.1998 |
|
|
|
|
Name : |
Mr. C Terence Bird |
|
Designation : |
Director |
|
Address : |
40, River View Drive, Toronto, Ontario, Canada |
|
Date of Appointment : |
01.01.1998 |
|
|
|
|
Name : |
Mr. B Narolo Durost |
|
Designation : |
Director |
|
Address : |
10613, Bridle Path Court, St Charles, Illisnois-60174, USA |
|
Date of Appointment : |
01.01.1988 |
|
|
|
|
Name : |
Mr. H Robert Thomas |
|
Designation : |
Director |
|
Address : |
1822, Bridle Path Court, St Charles, Illinois-60174, USA |
|
Date of Appointment : |
01.01.1998 |
KEY EXECUTIVES
|
Name : |
Mr. Ashis Jasoria |
|
Designation : |
Secretary |
|
Address : |
½ Ram Kishore Road, Civil Lines, Delhi, India |
|
Date of Appointment : |
07.07.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
|
Names of Shareholders |
|
No. of Shares |
|
Mccaine Foods Limited |
|
31658743 |
|
Carco Investments INC |
|
2 |
|
Total |
|
31658745 |
|
List of Allottees |
|
No. of Shares Allotted |
|
MCAIN Foods Limited |
|
67345500 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Foreign holdings (Foreign institutional investor(s), Foreign
Companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas
corporate bodies or others |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of All Kinds of Food products, including frozen foods,
juices and beverages. |
GENERAL
INFORMATION
|
Bankers : |
Not Available |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewis Chartered Accountant |
|
Address : |
Building 8, 7th and 8th Floor Tower-B, DLF Cyber
City, Gurgaon-122002, Haryana, India |
|
|
|
|
Holding Company : |
MCCAIN Foods Limited |
CAPITAL STRUCTURE
As on 29.10.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
98000000 |
Equity Shares |
Rs. 10/- each |
Rs.980.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
98000000 |
Equity Shares |
Rs. 10/- each |
Rs.980.000 Millions |
||
As on 30.03.2007
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
31658700 |
Equity Shares |
Rs. 10/- each |
Rs.316.587 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
316.587 |
316.587 |
71.563 |
|
|
2] Share Application Money |
640.623 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
15.916 |
16.136 |
|
|
4] (Accumulated Losses) |
[8.810] |
0.000 |
0.000 |
|
|
NETWORTH |
948.400 |
332.503 |
87.699 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.144 |
0.725 |
0.811 |
|
|
|
|
|
|
|
|
TOTAL |
948.544 |
333.228 |
88.510 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
49.455 |
36.718 |
10.044 |
|
|
Capital work-in-progress |
786.410 |
190.103 |
14.338 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
63.952
|
21.781 |
14.485 |
|
|
Sundry Debtors |
21.023
|
17.069 |
10.890 |
|
|
Cash & Bank Balances |
95.821
|
107.690 |
48.480 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
18.288
|
13.618 |
6.784 |
|
Total
Current Assets |
199.084
|
160.158 |
80.639 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
85.045
|
52.510 |
15.715 |
|
|
Provisions |
1.360
|
1.241 |
0.864 |
|
Total
Current Liabilities |
86.405
|
53.751 |
16.579 |
|
|
Net Current Assets |
112.679
|
106.407 |
64.060 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.068 |
|
|
|
|
|
|
|
|
TOTAL |
948.544 |
333.228 |
88.510 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
208.357 |
161.359 |
|
|
Other Income |
|
9.552 |
12.726 |
|
|
Total Income |
|
217.909 |
174.085 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
[24.498] |
2.531 |
|
|
Provision for Taxation |
|
0.228 |
2.751 |
|
|
Profit/(Loss) After Tax |
|
[24.726] |
[0.220] |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Depreciation & Amortization |
|
3.183 |
1.834 |
|
|
Other Expenditure |
|
239.224 |
169.720 |
|
Total Expenditure |
|
242.407 |
171.554 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
[11.35]
|
[0.12] |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[11.76]
|
1.56 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[9.86]
|
1.29 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.025
|
0.01 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.09
|
0.16 |
0.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.30
|
2.98 |
1.73 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
·
On May 24, 1956 McCain Foods Limited is incorporated.
·
On February 23, 1957 the first McCain French fry plant officially opens in
Florenceville, New Brunswick, Canada.
·
In 1965 McCain products entered the British market.
·
In 1968 McCain establishes a sales organization in Australia and McCain
International Limited is established in the United Kingdom.
·
In 1969 McCain Foods officially opens its first British French fry
facility in Scarborough, England.
·
In 1969 McCain enters the American market.
·
In 1971 McCain acquires and expands a French fry plant in Daylesford,
Australia. Also McCain begins production at their new Grand Falls, Canada
location.
·
In 1972 production capacity doubles at McCain’s Scarborough, England.
Also McCain buys a French fry plant in Werkendam, Netherlands.
·
In 1973 McCain buys a French fry plant in Lewedorp, Netherlands.
·
McCain Ellios
·
In 1975 production begins at McCain’s new Ballarat, Australia plant.
McCain also purchases a French fry plant in Washburn, USA.
·
In 1976 McCain officially opens its French fry plant in Whittlesey,
England. McCain acquires a French fry plant in Easton, USA. McCain starts pizza
production at Grand Falls, New Brunswick and Daylesford, Australia.
·
In 1978 McCain acquires a French fry plant in Hoofddorp, Netherlands.
McCain completed major expansion of their prepared foods plant in
Florenceville, Canada.
·
In 1979 McCain opens new pizza facility in Scarborough, England and
Ballarat, Australia. McCain completes a new French fry plant in Portage la
Prairie, Canada.
·
In 1980 McCain acquires a Sunny Orange Limited Juice plant in Toronto,
Canada.
·
In 1981 McCain opens a French fry plant in Harnes, France.
·
In 1982 McCain buys a French fry plant in Grantham, England.
·
In 1983 McCain opens a juice processing plant in Grand Falls, Canada.
·
In 1984 McCain purchases a vegetable processing plant in Smithton,
Australia, a Britfish Limited fish processing plant in Hull, England, and a
Tater Meal Inc. potato-based animal foods plant in Presque Isle, USA.
·
In 1986 McCain builds a $13M potato processing plant in Smithton,
Australia. McCain purchases a major frozen food company in Ostend and
Grobbendonk, Belgium.
·
In 1987 McCain officially opens a juice plant in Calgary, Canada and a
French fry manufacturing plant in Bethune, France.
·
In 1988 McCain acquires potato processing plants in Othello and Clark, USA.
McCain announces a $33M project to double production at the potato processing
plant in Harnes, France. McCain also purchases assets Ellio’s Pizza in the US
·
In 1989 McCain announces a $35M expansion for the potato processing
plant in Othello, Washington, USA.
·
In 1990 McCain acquires New Zealand Alpine Foods Limited, a vegetable
processor, in Timaru, New Zealand. A fire damages facilities in Florenceville,
Canada and a $25M reconstruction plan immediately initiates. McCain begins
construction of a $2.4M Group Data Centre in Florenceville, Canada.
·
In 1991 McCain officially opens a potato processing plant in
Borden-Carleton, PEI, Canada. McCain acquires the assets of Polder Food
Products in Lelystad, Netherlands.
·
In 1992 McCain acquires Safries Pty. Limited in Penola, Australia.
·
In 1996 McCain opens a French fry plant in Balcarce, Argentina, the
first fully automated French fry facility in South America. Everest Foods PLC
of Wombourne, England and Growers Food Limited of Hastings, Australia is
acquired by McCain.
·
In 1997 McCain purchases Ore-Ida Foods for $500M in the US, which
includes five production facilities.
·
In 1998 McCain announces the construction of a $78.6M French fry plant
in Wrocław, Poland. McCain officially opens a $41M expansion of its Lelystad,
Netherlands French fry facility. McCain announces the construction of a $93.9M
potato processing plant in Alberta, Canada.
·
In 1999 McCain purchases the assets of Fraîcheur d’Europe of
Vic-sur-Aisne, France. McCain announces it will double the production at
Balcarce, Argentina in a $68.4M expansion.
·
In 2000 McCain doubles production at its Easton, USA facility in a
$70.8M expansion. McCain purchases a modern French fry plant and two frozen
vegetable plants in South Africa. McCain purchases Aloro Foods Inc., a frozen
pizza manufacturer, of Mississauga, Canada. McCain officially opens its new
state-of-the-art French fry plant in Coaldale, Alberta, Canada. McCain
announces the construction of a $7.2M Potato Processing Technology Centre in
Florenceville, Canada. McCain sells its citrus division to Pasco Beverage Group, Inc. of Tampa, Florida.
·
In 2001 McCain acquires Heinz Frozen Foods (SA) (Pty.) Limited of
Viljoenskroon, South Africa, Anchor Food Products in the U.S., and the
Feilding, New Zealand site and related frozen food service business from Heinz
Wattie’s Australasia for $33M.
·
In 2002 McCain acquires Goodman Fielder International (Taiwan) Limited,
an ethnic Chinese frozen food company and Wong Wing Foods of Montreal, Canada,
the largest Canadian manufacturer of Chinese entrées, egg rolls, and dim sum.
·
In 2003 McCain acquires Belleisle Foods Limited of New Brunswick,
Canada, a manufacturer of egg rolls and other Chinese frozen foods.
·
In 2004 McCain upgrades its Grand Falls, Canada pizza plant in a $29M
expansion. McCain begins construction of a $43M French fry facility in Harbin,
China. McCain acquires Midwest Food Products Inc. of Manitoba, Canada.
AS PER WEBSITE
Business:
McCain Foods isn't a small-fry company: It's the #1 French fry maker in
the world, processing about one million pounds of French fries and other potato
products per hour. In addition to its own brands, it owns the Ore-Ida
foodservice business (H.J. Heinz still owns the retail brand). The company also
produces frozen vegetables, juices, pizza, entrees, and desserts. The McCain
family began producing French fries in 1957 and still owns the company. A power
struggle in the mid-1990s split family loyalties, and some of the clan went off
to run Maple Leaf Foods, one of Canada's largest food processors.
Company Perspectives
Today McCain Foods is a global leader among
food processors. It makes nearly one-third of the French fried potatoes
produced internationally and is known for appetizers, pizza, vegetables,
desserts, entrees, oven meals, and other quality frozen foods on six
continents. The remarkable success of McCain Foods is built on cutting edge
agronomy, superior technology and a global workforce sharing a unique culture
and vision.
Key Dates
·
1956: McCain Foods is incorporated.
·
1965: McCain enters
the British market.
·
1968: Company begins
marketing in Australia.
·
1969: Company opens
U.K. facility in Scarborough.
·
1971: Company enters
U.S. market.
·
1976: McCain begins
producing frozen pizzas.
·
1997: McCain purchases
Ore-Ida Food Service business.
·
2000: McCain Foods
builds $7.2 million potato processing technology center.
·
2002: Wong Wing Foods
is acquired by McCain.
·
2005: McCain builds
$18 million processing plant in India.
Incorporated: 1956
NAIC: 424420 Packaged Frozen Food Merchant
Wholesalers; 311412 Frozen Specialty Food Manufacturing; 311411 Frozen Fruit,
Juice and Vegetable Manufacturing; 311423 Dried and Dehydrated Food
Manufacturing
SIC: 5142 Packaged Frozen Foods; 2038 Frozen
Specialties Nec; 2037 Frozen Fruits and Vegetables; 2034 Dehydrated Fruits,
Vegetables and Soups; 2099 Food Preparations Nec
McCain Foods Limited is the largest processor of frozen potatoes in the
world. McCain has a business presence in 110 countries on six continents and
has been expanding its empire steadily over the past 50 years. In addition to
its French fry production, McCain has diversified its product lines to include
frozen pizzas, juice, and an array of gourmet/ethnic frozen appetizers and
entrees.
1956-69: The Beginning of a French Fry Empire
Frozen foods were a relatively new concept in 1956 when Allison and
Wallace McCain introduced their new business in their native Florenceville, New
Brunswick, Canada. The two set up shop on some old pasture land but it was only
a short time before their frozen potatoes and other products were found in many
freezers throughout the world.
The company's beginnings were modest. McCain Foods employed 30 locals to
process, freeze, distribute, and sell its goods. The 1950s saw a surge of
growth in partially processed convenience foods. Space-aged technology
influenced the modern household. Frozen vegetables, canned soups, instant
breakfast drinks, and ready-made meal options with their efficiency and modern
panache held wide consumer appeal.
In a few short years steady growth led to expanded market options and
the Canadian company looked to its British allies overseas to buy its products.
McCain's "chips" gained a foothold in the United Kingdom in 1965. The
British campaign was accompanied by a quirky advertising plan that made McCain
fries a household name.
By 1968 the company was ready to expand to another English-speaking
member of the commonwealth and McCain Foods set its sites down under on
Australia. McCain also created subsidiary McCain Great Britain Limited in 1968.
The following year, McCain opened its first British French fry production
facility in Scarborough, England.
McCain Foods forged its way south in 1971 when it entered the U.S. market.
The 1970s brought about significant changes in the American workplace and
record numbers of women went to work outside the home for the first time.
Convenience foods were not only sought after for their modern appeal but for
their time-saving functions as well. McCain was well poised and capitalized on
this newly emerging market.
Continuing to grow in the southern hemisphere in 1971 McCain Foods
acquired an existing French fry processing plant in Doylesfood, Australia. The
newly acquired plant allowed the company to produce and sell its product
without overseas shipping. The same year McCain built a new plant on site at
Florenceville and added an additional plant in Grand Falls, New Brunswick.
Demand in Britain led the company to double the capacity of its
operation in Scarborough and growth in its European sector brought company
leaders to the Netherlands soon after. Belgium, France, and the Netherlands had
long established themselves as countries where "Frites" were
traditional foods. Fried potato stands were a common sight throughout Belgian
city streets where tourists and locals could purchase paper cones full of crisp
fries smothered in mayonnaise. Within two years, from 1972 to 1973, McCain
Foods added to its holdings and purchased plants in Werkendam and Lewedorp, the
Netherlands.
Expansion and acquisition trends continued throughout the decade. In
1975 McCain bought a Washburn, Maine potato processing plant; a year later it
purchased another U.S. plant, in Easton, Maine.
In 1976, McCain turned back to Europe, buying a French fry production
facility in Whittlesey, England. A third Dutch facility would follow in 1978,
this time in the town of Hooffddorys.
McCain took a gamble on a newer frozen food in 1976 when the company
built a frozen pizza production facility at its Grand Falls, New Brunswick
location. The company made frozen pizzas one of its top priorities in the last
part of the 1970s. McCain built pizza production businesses in Doylesfood and
Ballarat, Australia; Scarborough, England; and Manitoba.
1980-2000: Expansion, Acquisition and a Family Feud
McCain bought Sunny Orange Juice Limited based in Toronto, Ontario, and
entered the frozen beverage business in 1980. In subsequent years the company
would increase its frozen juice holdings. In 1983 McCain bought a new juice
processing plant in Grand Falls, and in 1987 the company went on to purchase
another Canadian juice operation in Calgary.
In addition to the company's new interest in juices, McCain diversified
its Australian frozen vegetable business by buying a processing plant for
vegetables other than frozen potatoes. McCain further diversified by investing
in a frozen fish processing plant in England under the Tater Meal label.
McCain opened a French fry potato processing plant in Haines, France, in
1981 and by 1987 the company added another French plant in Betheune. The
decade's additional plant openings included the purchase of a Belgian frozen
food company, Frima Viking, in April 1986. Frima Viking, the frozen foods subsidiary
of Tractionel, operated plants in Ostend and Grobbendank, Belgium. McCain also
developed its operations in South Africa and the United States. McCain bought
an existing potato processor's facilities in Othello, Washington, and Clark,
South Dakota, in 1988.
To keep up with increasing European demand McCain spent $33 million
doubling the production capability of its processing business in Haines,
France. The following year capital improvements were made to its Othello,
Washington, plant at a cost of $35 million.
If the decade of the 1980s was known for acquisition, the 1990s was
highlighted by a series of plant retoolings and expansions. The McCain plant in
Prince Edward Island, known for its specialty potato products, was given $36
million in improvements.
The company bought New Zealand-based Alpine Foods Limited in 1990,
renaming it McCain Foods New Zealand Limited
A fire in 1990 near the company headquarters in Florenceville meant an
additional outlay of $25 million in rebuilding costs but resulted in a
state-of-the-art facility at the headquarters site. In addition to the
production site at Florenceville, McCain added a new $2.4 million data
facility.
A significant rift between joint CEOs and brothers Harrison and Wallace
McCain developed in the early 1990s. The brothers had worked out a plan to
smooth the transition when the two retired at age 75, or in the event that one
or both of the two died. The plan failed when Wallace unilaterally appointed
his son to lead the company's U.S. subsidiary. This action led to a meeting of
the directors and the firing of Wallace as co-CEO and president. A court battle
ensued and the fight over the future of the privately held business turned
ugly. In an article in the Financial Times, Bernard Simon wrote, "Harrison
and Wallace thought they were moving the succession process along by giving
their sons and nephews an increasingly active role. But it is hard to escape
the conclusion that the participation of so many McCain family members in the
business hampered rather than helped the process. Harrison says in an
affidavit, 'an atmosphere of distrust, intrigue, and maneuvering has
existed.'"
The future direction of the company leadership was left up to the courts.
A decision in February 1995 upheld the decision of Harrison McCain and the
directors to remove Wallace McCain from his position as co-chief executive.
Wallace still held a one-third stake in the company and argued for a public
offering of McCain stock. The brothers could not reach an equitable agreement
regarding a buyout of shares. Wallace McCain went on to take a position with
Toronto-based Maple Leaf Foods.
McCain Foods began its South American debut in Argentina. In 1994 the
company presented plans to build a potato processing facility in Balarce,
Argentina. The plant opened its doors two years later.
The company acquired Everest Foods PLC of Womourne, England, and Growers
Foods Limited of Hasting, New Zealand, in 1996. The following year McCain Foods
Holland B.V. spent $41 million on a French fry line expansion project at its
Lelystad plant.
One of McCain's largest acquisitions also occurred in 1997 when the
company bought the Ore-Ida Food Service frozen French fry and appetizer
business for approximately $500 million from the H.J. Heinz Company. The buyout
included a major production facility at Burley, Idaho, and four other U.S.
plants. Several foodservice brands were part of the transaction, including
Ore-Ida and Tator Tots brand potatoes, Rosetto frozen stuffed pasta, and Bagel
Bites frozen bagel snacks.
The company introduced a new line of six varieties of snack strips in
American Tex Mex and Cajun cuisine flavors. The products were designed to be
deep fried and served with dips or as a side dish.
The McCain network expanded into central Europe in 1998 with the
construction of a $78.6 million French fry production plant in Wroclaw, Poland.
In addition, a host of expansions characterized the year. Besides the company's
entry into Central Europe, a third fry plant was built in Matougues, France.
The renovated fry line in the Netherlands opened and a $70.8 million expansion
was slated for the Easton, Maine business. Further growth was added in a $93.9
million facility in southern Alberta.
Towards the end of the decade McCain had become one of the largest
producers of frozen potato products worldwide. The company spent 1999 acquiring
assets of Farscheure d'Europe in Vic-sur-Aisne, France, and expanding
production with a $68.4 million addition to its Argentinean plant.
McCain Foods made a decision to refuse to buy genetically modified
potatoes in November 1999. Harrison McCain commented on the so called
"Franken foods," saying, "We think genetically modified material
is very good science but at the moment, very bad public relations." He
added, "we've got too many people worried about eating the product and
we're in the business of giving the customers what they want, not what we think
they should have."
McCain embraced the new century with entry into South Africa. The
company acquired a French fry plant east of Johannesburg and two frozen
vegetable plants nearby. McCain Foods Canada purchased Aloro Foods Inc. of
Mississauga, Ontario, in order to increase its frozen pizza product division.
The year 2000 also brought plant openings at the newly renovated Easton, Maine
expansion and the state-of-the-art French fry plant in Coaldale, Alberta.
Capping the year, the company built a $7.2 million potato processing technology
center. This research facility illustrated the company's commitment to research
agrarian methods and practices devoted to the potato. The facility grew out of
the company's interest in developing ongoing research to grow better potatoes
with more efficient and economically affordable farming.
In 2001 McCain Foods worked another deal with the H.J. Heinz Company and
acquired its frozen foods company in South Africa. The company also bought
Heinz Watties Australia for $33 million.
The company broadened its inventory of frozen entrees and appetizers in
2002 when it acquired ethnic Chinese frozen food company Goodman, Fielder
International Taiwan from Goodman Fielder Limited of Australia. The company
also bought Wong Wing Foods of Montreal in 2002, adding Chinese entrees, egg rolls,
and dim sum to its Canadian operations.
Business and industry began flooding into China and India in the early
part of the 2000s. McCain broke into the Far East in 2004 when it announced
plans to open a $43.3 million French fry processing facility in Harbin,
Heilongjiang Province, in northeast China.
The following year the company began the process of opening an $18
million plant north of Ahmedagad, Guijarat Province, in India.
McCain Foods Limited stood out as the premier producer of frozen French
fries and a growing competitor of ConAgra and other food giants. Its
diversified product lines and global presence as well as solid business
agreements with McDonald's and various foodservice vendors made it one of the
most profitable privately held businesses to date.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON DESIGNATED
PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.32 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.65.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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%)
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 |
|