MIRA
INFORM REPORT
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Report Date : |
13.12.2011 |
IDENTIFICATION DETAILS
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Name : |
DANGOTE CEMENT PLC. |
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Registered Office : |
Ministry of Commerce & Industry, Lokoja, Kogi State |
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Country : |
Nigeria |
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Date of Incorporation : |
04.11.1992 |
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Com. Reg. No.: |
RC: 208767 |
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Legal Form : |
Public Limited Company (Plc) |
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Line of Business : |
Manufacturing, Production and Packaging of Cement. |
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No. of Employees : |
Over Two Thousand (Over 2,000) |
RATING & COMMENTS
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MIRAs 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 Complaint |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Nigeria |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
OPERATIONS
The Company is engages in the Manufacturing,
Production and Packaging of Cement.
COMPANY LOCATION
Subject is located at Union Marble House, 1
Alfred Rewane Road, Ikoyi, Lagos State, Nigeria.
Credit Risk
RATING ASSESSMENT: A (53)
EXCELLENT Appears
to have a sound financial base with a strong capability to meet trading
commitments; liquidity looks healthy.
CREDIT LINE
AMOUNT: Normal
CREDIT LINE
OPINION: Subject appears to be a credit worthy organization
IDENTIFICATION
COMPANY NAME: DANGOTE CEMENT PLC.
PRE
VIOUS NAME: OBAJANA
CEMENT PLC.
REGISTERED
NAME: DANGOTE CEMENT
PLC.
REGISTERED
ADDRESS Ministry
of Commerce & Industry, Lokoja, Kogi State, Nigeria
HEAD OFFICE ADDRESS: Union Marble House, 1
Alfred Rewane Road, Ikoyi, Lagos State,
Nigeria
POSTAL ADDRESS : P.M.B
40032 Falomo, Ikoyi Lagos State, Nigeria.
TELEPHONE: 234-1-7917363, 4480815-6 (2 Lines)
FAX: 234-1-4630316,
2670117
EMAIL: info@dangote-group.com, dangote@dangote-group.com
WEBSITE: www.dangote-group.com
Currency: All monetary
quoted in this report are in Nigerian Naira, the local currency or unless
otherwise stated. The exchange rate is N148 to 1 US $.
SUMMARY
NATURE OF PREMISES: Owned
space as head office occupying approximately 8,000 square meters
DATE INCORPORATED 4th November, 1992
YEAR BEGAN OPERATION: January, 2007
LEGAL FORM: Public Limited
Company (Plc)
REGISTRATION NO: RC: 208767
SHARE CAPITAL: 10,000,000,000.00
ISSUED CAPITAL: 500,000.00
PAID-UP CAPITAL: 500,000.00
REGISTRAR: Afribank
Registrars
2A Gbagada Expressway, Anthony Village P.M.B 12974,
Lagos State, Nigeria
Tel: 234-1-279 9133-4 (2 Lines)
STAFF
STRENGHT: Over Two Thousand (Over 2,000)
OWNERSHIP/SHAREHOLDING STRUCTURE
- Mr. Dan K. Yunusa
Ministry of Commerce & Industry, Lokoja,
Kogi State, Nigeria
- Mr. A.A. Olagboye
Ministry of Commerce & Industry, Lokoja,
Kogi State, Nigeria
- Alhaji Abubakar G. Usman
Ministry
of Commerce & Industry, Lokoja, Kogi State, Nigeria
- Ignatus A. Amoku
Ministry
of Commerce & Industry, Lokoja, Kogi State, Nigeria
DIRECTORS
1.
Mr. Dan K. Yinusa
2.
Mr. A.A. Olagboye
3.
Alhaji Abubakar G. Usman
4.
Ignatius A. Amoku
MANAGEMENT TEAM
|
S/N |
Name |
Position |
|
1. |
Alhaji Aliko Dangote |
Chairman/CEO, Dangote
Group |
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2. |
Engineer Joseph Makoju |
COO (Industrial
Operations) |
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3. |
Knut Ulymoen |
Managing Director, Cement
Terminals |
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4. |
Monica Musonda |
Legal and Communication
Director |
KEY MANAGEMENT PROFILE
Aliko Dangote - Group President/CEO.
He is a graduate of
Business Studies from the Al-Azahar University, Cairo, Egypt and the
Founder/Chief Executive Officer of the Dangote Group, which he transformed from
a small trading business he started in 1977 to a multi-billion naira
conglomerate spanning the West African sub region.
In recognition of his
contributions to the growth of the Nigerian economy and his philanthropy, he
has been conferred with several awards including the prestigious ZIK Award for
professional leadership (1992), the International Award of Sir Ahmadu Bello,
the Cross River State Roll of Honour Award (2002) and the Thisday Newspapers
Award for Chief Executive Officer of the Year (2005). He was conferred with the
national honour of Officer of the Order of the Niger (OON) in 2000 and
Commander of the Order of the Niger (CON) in 2005.
Alhaji Aliko Dangote serves
on the Boards of the National Council of Nigerian Vision, Mohammed Bello
Endowment for Justice and Jurisprudence, Kano Foundation, the Nigerian Economic
Summit Group, African Petroleum Plc, National Investment Promotion Council and
the Heart of Africa (a management group on Nigeria Image Project), among
others.
Knut Ulvmoen - Managing Director, Cement Terminals
He is in charge of cement
operations. Mr. Ulvmoen is a management professional with over 30 years
extensive background in finance and administration of multinational companies.
He possesses extremely diversified capabilities covering pivotal activities
widely spread geographically in Europe, West Africa, USA, Puerto Rico, Jamaica,
United Arab Emirates and the Philippines.
He holds a Masters of
Science degree in Business and is a member of the Norwegian Association of
Authorised Accountants.
Engineer Joseph Makoju - COO (Industrial Operations)
Joseph Makoju joined the
Group as Chief Operating Officer Dangote Cement in May 2008. His experience in
the Cement and Energy Industry spans 37 years. He is a member of several
professional bodies and is currently serving as the Chairman, Cement
Manufacturers Association of Nigeria (CMAN). He is a recipient of the National
Merit Award, Officer of the Order of the Niger (OON) and Special Order of Merit
Commander of the Order of Merit of the Republic of Niger. He holds a B.Sc.
and M.Phil. in Mechanical Engineering from the University of Nottingham.
Monica Musonda - Legal and Communication Director
Monica joined Dangote
Cement from the International Finance Corporation in Washington DC, where she
advised on corporate and project finance transactions in the telecoms and
global manufacturing and services sectors in Central Europe, South Asia
and Sub-Saharan Africa. Previously a partner at Edward Nathan, she headed the
firm's Africa Practice which advised leading South African corporations on
acquisitions across the African continent.
BACKGROUND
Dangote Cement Plc formerly
known as Obajana Cement Plc was incorporated on the 4th November, 1992 as a
Public Limited Liability company under the Companies & Allied Matters
Decree of 1990 (RC: 208767). The Corporate Head Office address is at Union
Marble House, 1 Alfred Rewane Road, Ikoyi, Lagos State, Nigeria while the
factory is located at Obajana, Lokoja, Kogi State. The company is a subsidiary
of Dangote Industries Limited (DIL). In 2009, the operations of Lagos Cement
Terminal, a division of Dangote Industries Limited (DIL) were transferred to
Dangote Cement Plc at net assets value.
Dangote Cement Plc.
is a fully integrated cement company and has projects and operations in Nigeria,
Benin and Ghana; with total existing production and import capacity of 14
million tons per annum and new production projects in development
with 11.1 million tons per annum additional capacity. In December 2009,
the Company acquired 74.77% and 99.90% holdings in Benue Cement Company Plc and
Dangote Bail Limited respectively.
The
Company operates the Obajana Cement Plant (OCP), the largest cement plant in
sub-Saharan Africa. Aggressive growth plans target a strong pan-African
presence as Dangote Cement evolves to become a truly multi-national
corporation. As part of this drive, Dangote Cement Plc. is committed to
making Nigeria a net exporter of cement. The company owns four terminals, two
in Lagos and two in Port Harcourt through which it currently imports cement.
These operations will progressively be replaced and converted into export
terminals as new production capacity comes online in Nigeria.
Dangote Cement Plc emerged as African's best cement
manufacturer company with the presence of its plants in 14 different African
countries. The countries include: Zambia; Tanzania, South Africa, Congo
(Brazzaville), Ethiopia, Cameroun (Grinding), Sierra Leone, Ivory Coast,
Liberia, Ghana, Senegal among others. The move, according to the company was to
ensure that African remains self-sufficient in cement production and making the
products easily available and at highly affordable costs to the end users.
Boston Consulting Group (BCG), a United States-based
rating agency, listed the Dangote Group among the top 40 African Challengers,
which are companies of African origin that have the potential to rival Fortune
500 Companies. Some of the criteria used
in making the selection include size, growth and international expansion.
Dangote Group has 13 subsidiaries spread all over
Nigeria and it operates in over 14 African countries. All these enhanced its
positive rating. While a whopping $400 million was invested in Zambia for the
construction of the plant, Dangote increased its stake in Sephaku Cement (Pty)
Limited, which is based in South Africa, from 19.76 percent to 64 percent, with
an investment of R779 million. The huge investment into Sephaku Cement by
Dangote, is the largest ever foreign direct investment (FDI) by an African
company into South Africa.
During our visit to the company, none of the
personnel was willing to supply any information and all efforts to speak or see
the top management officers proved as we were told that they were in a crucial
meeting.
Note: The Company increased its Share Capital from
N500,000,000.00 to N10,000,000,000.00 0n 19th August 2010, changed its name
from Obajana
Cement Plc. to Dangote Cement Plc. on 14th July, 2010 and also paid its Statutory
Annual Returns till 2010. Though, the company is yet to submit any of its Audited
Account to Nigerian Stock Exchange (NSE) at the time of compiling this report.
Conclusion: Based
on our visit to the company and available information, we are of the opinion
that the company is operating as a legitimate business and more so has a good
market share in the sector. As such, any business relationship with the company
should be mutually beneficial.
PRODUCT DESCRIPTION
·
Cement
PRINCIPAL BANKERS
·
Access Bank Plc.
·
Oceanic Bank Plc
·
Equitorial Trust Bank Plc.
·
First Bank of Nigeria Plc
PARENT COMPANY
Dangote Group i.e. Dangote Industries Limited (DIL)
CONTACT ADDRESSES
Dangote Cement Head Office
Address: Union Marble
House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
PMB 40032 Falomo, Ikoyi
Telephone: 234-1-4480815-6 (2
Lines)
Fax: 234-1-4630316
Dangote BAIL Limited
Address: Federal Ocean
Terminal Drive, Trans Amadi Layout, P.O.Box 2464, Port Harcourt, Rivers State,
Nigeria
Telephone: 234-84-830360 4 (5 Lines)
Dangote Global Services Limited (UK)
Address: 75 Davies Street, London, W1K 5JN
Telephone: +44 207 399 3070
Fax: +44 207 399
3079
Address: PMB 063,
Gboko, Benue State
Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
Contact Person: Barrister
Ityoyila Ukpi
Telephone: 234-807-048-5500
E-mail: ityoyila.ukpi@dangote-group.com
Address: Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
Contact Person: Angela
Selekere
Telephone: 234-807-049-1157
E-mail:
angela.selekere@dangote-group.com
Dangote Cement
Plant
Address: Obajana, Port-Harcourt and Lagos Terminal, Union Marble House, 1,
Alfred Rewane Road, Ikoyi, Lagos State,
Nigeria
Contact Person: Jeremiah Marcus
Telephone: 234-802-501-4997
E-mail: marcus.jeremiah@dangote-group.com
Dangote Flour
Mills
Address: Terminal 'E' Administrative Building, Apapa Port Complex, Lagos State,
Nigeria
Contact Person: Charles Alasholuyi
E-mail: charles.alasholuyi@dangote-group.com
Dangote Pasta
Address: NPA Lighter Terminal, Ikorodu, Lagos State, Nigeria
Contact Person: Erere
Vera-Cruz
Telephone: 234-803-325-3849
E-mail: erere.vera-cruz@dangote-group.com
Dangote
Sugar Refinery
Address: ,Shed 20 Apapa,
Wharf, Lagos State, Nigeria
Head Office: Modandola House,
42/44, Warehouse Road, Apapa, Lagos State, Nigeria
Contact Person: Ngozi Ngene
Telephone: 234-807-149-0714
E-mail: ngozi.ngene@dangote-group.com
Dansa
Foods Limited
Address: Union Marble
House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
Contact Person: Alhaji Kaita
Abdulkareem
Telephone: 234-803-327-7899
Dantrans
Address:
Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
Contact Person: Emmanuel Andem
Telephone: 234-807-198-1164, 803-355-6983
E-mail: andem.emmanuel@dangote-group.com
Contact
Person: Louis Nortier
Telephone: 234-805-840-6420
E-mail: louis.nortier@dangote-group.com
Integrated
Steel Rolling Mills Company
Address: Oshogbo, Osun
State, Nigeria
Contact Person: Bishara Abacha
Telephone: 234-803-314-1787
E-mail: bishara.abacha@dangote-group.com
Address: Corporate Head
Office: 15B, Ikosi Road, Oregun Industrial Estate, Oregun, Ikeja,
Lagos State, Nigeria
Contact Person: Yahaya Fufore
Telephone: 234-807-048-0004
E-mail: yahaya.fufore@dangote-group.com
Savannah Sugar
Company Limited
Address: Union Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos State, Nigeria
Contact Person: Zailani Muhammed
Telephone: 234-803-458-2699
E-mail: zailani.muhammed@dangote-group.com
Address: 1st Floor, Terminal "E" Building, Apapa, Wharf, Lagos
State, Nigeria
Contact Person: Seun
Olopade
Telephone: 234-807-048-1933
E-mail: seun.olopade@dangote-group.com
TERMINALS
·
Lagos Terminal
·
Port Harcourt Terminal
·
Ghana Terminal
·
Ibese Cement Plant, Ogun State
(New Project)
TRADE REFERENCES
1. Name of Company: Manufacturers
Association of Nigeria (MAN)
Address: 77 Obafemi Awolowo Way
Ikeja Lagos State, Nigeria.
Telephone: 234 -1-
4974240-1, Fax: 234-1-4974247
Postal Address: P.O. Box 3835 Marine, Lagos
E-mail: man@manaassoc.org
2. Name of Company: Lagos
Chamber of Commerce & Industry (LCCI)
Address: Commerce
House (1st Floor), 1, Idowu Taylor Street, Victoria Island, Lagos
State, Nigeria.
Telephone: 234 -1-
2613917, 7746617, Fax: 234-1-2623665, 2611526
Postal Address: P.O. Box 109 Marina,
Lagos.
E-mail: bsu@lagoschamber.com
GOALS
·
Customer Satisfaction
·
High Quality Products
·
Concern for Staff Well-being
·
Superior Profitability, Earnings
and Growth
·
Market Leadership and Alertness
·
Operational Efficiency via
Knowledge Management
·
Social Responsibility &
Engagement in sound ethical practices
·
International Competitiveness
·
Sustainability
MISSION
To touch the lives of people by providing their basic needs.
VISION
To be a world-class
enterprise that is passionate about the standard of living of the general
populace and high returns to stakeholders.
CORE VALUES
Customer Service: As a
world class organization, the company understands that they exist to serve and
satisfy customers. Accordingly, their customer orientation
reflects intimacy, integrity etc.
TYPES OF CUSTOMERS
·
Group of Companies,
·
General Public
·
Government Parastatals
PERFORMANCE RANKING
* Quality of
Management: VERY GOOD
* Ethics &
Integrity: VERY GOOD
* Ownership Structure: VERY GOOD
PHYSICAL VISIT
- Company Premises
- Corporate Affairs Commission
FINANCES
Subject Audited
Accounts was not available as at the time of compiling this report. The company
is yet to deposit any of its audited account at Nigerian Stock Exchange (NSE)
during our visit to NSE. However, based on the industry the company belongs to
and services rendered, we are of the opinion that estimated turnover of the
company could be put at $2 Billion (Two Billion Dollars).
INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
Subject is operating in an
industry with very great potentials. With the Local Content Initiative
of the supervising agency, Nigerian indigenous companies now have exclusive
rights up-to 30% of all contracts awarded within the manufacturing
industry. In cases where local expertise
is lacking, indigenous companies are encouraged to enter into technical
partnership with foreign firms. With
this innovation, local indigenous companies now have regular access to bids and
can also benefit from the transfer of technology and expertise from their
foreign technical partners.
There are many opportunities
in this sector of the economy. These could be largely achieved through foreign
companies joint ventures with Nigerian companies, as well as providing
adequate Training/Technical Assistance - Provision of training facilities for a
large work force indirectly engaged in the sub-sector of the economy. 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.42 |
|
|
1 |
Rs.81.92 |
|
Euro |
1 |
Rs.69.94 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SCs 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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.