MIRA
INFORM REPORT
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Report Date : |
09.03.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
GULF INDUSTRIAL INVESTMENT CO E.C.J.S.C |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 (Parent Company ) |
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Date of Incorporation : |
17.02.1988 |
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Com. Reg. No.: |
19191 - 1 |
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Legal Form : |
Bahraini Shareholding Company (exempt closed joint stock company) |
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Line of Business : |
Manufacturers and suppliers of direct reduction billets grade iron oxide pellets. |
RATING & COMMENTS
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MIRA’s 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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Maximum Credit Limit : |
BD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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A2 |
A2 |
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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 |
Company NAME
Gulf Industrial Investment Co E.C.J.S.C (Correct)
GULF INDUSTRIAL INVESTMENT CO. (E.C.) (Requested)
company ADDRESS
Building : GIIC
Building No. 250
Street :
Area : Hidd Industrial Area, Block No. 117
P.O. Box : 50177
Town : Al Hidd
Country :
Telephone : (973) 1746 4222
/ 1746 4203 / 1767 1795 / 1735 9323 / 1735 9388 / 1735 9331 / 1767 2872
Fax : (973) 1767 7140 / 1767 5258 / 1767 6161
E-Mail : giicmsd@batelco.com.bh / giic@giic.com.bh
Website : www.giic.com.bh
Shortform Name : GIIC
SENIOR COMPANY PERSONNEL
Name Position
1. Hisham Abdulrazzak Al Razzuqi
Chairman
2. Dr. Ali Basdag
Chief
Executive Officer
3. Khaled A. M. S. Al Qadeeri
Managing
Director
4. Dilip George
Chief
Financial Officer
5. Paul Livel General Manager, Operation
Affairs
6. K Prasat
General
Manager, Commercial and
Marketing
7. Sayed Karam
General
Manager, Share Services
8. Issam Jassem Al Othman Finance Manager
9. Othman M Al Hubaishi
Operations
Support Manager
10.Iman Al Mahfouz
Human
Resources Manager
11.Mohammed Anwar
Information
Technology Manager
Total Employees : 420
PAYMENTS
No complaints have been heard regarding payments from local suppliers
or banks.
Subject is a joint venture 50% owned by Gulf Investment Corporation,
which in turn is owned by six countries comprising the Gulf
Cooperation Council (
the
Qatar Steel Company holds 25%, Mohamed Abdulmohsin Al-Kharafi & Sons
Co. WLL 10%, National Industries Group 10%, and
Company 5%.
Associations inspire added confidence and we consider it is
acceptable to deal with subject for LARGE amounts.
Opinion on maximum credit : BD 500,000 (higher amounts may be considered with assurances from the company)
Trade risk assessment :
SIGNIFICANT CHANGES
Expansion Plan
In 5 June 2007, The Arab Banking Corporation's (ABC) issued a mandate
to underwrite a US$ 555 million financing facility for Gulf
Industrial Investment Company (GIIC). The cash will help finance GIIC
plans to more than double the output of its iron ore pelletising
plant at Hidd Industrial Estate and carry out major infrastructure
work. Consequently, subject changed its status from "active"
to
"under mortgage".
Yamato Kogyo Co. Ltd. Signs Deal with Gulf Industrial Investment
Company E.C.
On 22 May 2008, Yamato Kogyo Co. Ltd. has announced the signing of a
deal for the construction of steel plants in the Hidd industrial area
under a joint venture with Gulf Industrial Investment Company E.C.
The project, once again, proves how business-friendly
reflects the international communities strong belief that
leadership will guide the kingdom to a bright future The project,
which will start operating in 2011, will work at a production
capacity of 1.5 million tonnes annually. It will provide around one
thousand job opportunities.
ABB wins multi million dollar contract in
Kobe Steel Ltd. awards ABB a contract for electrification and control
of Gulf Industrial Investment Company's pellet plant no. 2 expansion
project.
Baden,
automation technology group, has won an order for the delivery of
electrical equipment and control systems to support the expansion of
a plant in
production. The contract was awarded to ABB in the second quarter of
2007.
Expansion of Gulf Industrial Investment Co.'s plant will more than
double production capacity to eleven million tons annually, starting
in late 2009, making the company one of the global leaders for pellet
supply to direct reduction industries. The contract was awarded by
Kobe Steel Ltd. of
with
processing and metals industries. ABB's scope of supply comprises a
broad range of electrical and automation technologies.
ABB will deliver electrical equipment and control systems to support
the expansion of a plant in
in steel production. The automation solution for this project will be
based on System 800xA with 7 AC 800M controllers (PM 864) for 4,000
S800 I/O channels. It will have 4 operator workplaces. Furthermore
ABB's deliveries to the customer include installation supervision and
commissioning of the material as well as customer training.
PRINCIPAL BANKERS
NAME : BANK OF
Branch :
PO Box : 4207
Town :
Telephone : (973) 1722 3388
Fax : (973) 1722 9822
AUDITORS
Bader Al Bazie & Co
FINANCIAL INFORMATION
Private companies in
balance sheets. Balance sheets are not available from other sources,
and the subject interviewed declined to give any financial
information, which the company regards as strictly confidential.
The following consolidated balance sheets as at 31 December 2009
applies to subject’s parent company Gulf Investment Corporation GIC,
2009 2008
(in millions
of US DLRS)
Consolidated Statement of Financial Position
ASSETS
Cash and cash equivalents 35 34
Placements with banks and other
financial institutions 1,030 1,030
Financial assets at fair value
through statement of income 601 1,093
Financial assets available for sale 3,127 3,850
Financial assets held to maturity 2 39
Investments in associates 1,009 808
Loans and advances 85 110
Other assets 224 247
Total assets 6,113 7,211
LIABILITIES AND EQUITY
Liabilities
Deposits from banks and other
financial institutions 1,360 2,896
Securities sold under repurchase agreements 1,211 1,270
Term finance 1,587 2,071
Other liabilities 205 312
Total liabilities 4,363 6,549
EQUITY
Share capital 2,100 1,550
Reserves
336 (132)
Accumulated losses (686) (756)
Total equity 1,750 662
Total liabilities and equity 6,113 7,211
INCOME STATEMENT
Interest income 84 249
Net gains / (losses) from investments 108 (139)
Dividend income 17 23
Share of results of associates 5 118
Net fees and commissions 22 17
Foreign exchange loss (3) (2)
Total Income 233 266
Interest expense (85) (262)
Other operating income 5 5
Net operating income 153 9
Staff cost
(33) (27)
Premises cost (2) (2)
Other operating expense (11) (19)
Operating profit (loss) 107 (39)
Income from recovery of debt - 1
Provision for impairment losses (16) (958)
Net profit (loss) for the year 91 (996)
STATEMENT OF COMPREHENSIVE INCOME
Profits (loss) for the year 91 (996)
Other comprehensive income:
Financial assets available for sale:
- Net unrealised gain (loss) arising
during the year 404 (1,334)
- Transferred to consolidated
statement of income on sale (34) (68)
- Transferred to consolidated
statement of income on impairment 15 753
Share of other comprehensive income of associates 62
(140)
Other comprehensive income (loss) for the year 447
(789)
Total comprehensive income (loss) for the year 538
(1,785)
Financial year ends 31 December.
US$500 million EMTN
On 8 June 2005 Gulf Investment Corporation (GIC) issued US$500
million 5 year euro medium term note (EMTN); managed by Barclays
Capital and BNP Paribas. It was priced at 50 basis points (bp) and
sold 51% in Europe, 25% to
drawdown was also for five years and US$500 million, and was priced
at 55 bp.
LEGAL STATUS AND HISTORY
Date Started : 17 February 1988
History : The subject company was established in
February 1988 by Kuwait
Petroleum Corporation,
state-owned oil company,
to acquire the assets of Arab Iron
and Steel Company AISCO.
On 6 October 2000,
Kuwait Petroleum Corporation (KPC), Gulf
Investment Corporation
(GIC), and Itabira Rio Doce Company
Limited, a wholly-owned
subsidiary of
Vale do Rio Doce (CVRD),
announced jointly that they had
signed an agreement
whereby KPC and its subsidiaries agreed
to sell, and GIC and
CVRD agreed to purchase all issued and
outstanding shares of
Gulf Industrial Investment Company
E.C. (GIIC). Under the
terms of the deal, GIC and CVRD
would each own 50% of
the shares of GIIC, and would pay KPC
and its subsidiaries an
acquisition price of US$ 183
million.
In September 2002
had arranged, syndicated and underwritten
a US$ 40 million
medium-term loan for the
subject.
In early 2004, subject
signed a US$ 250 million contract
with Qatar Iron and
Steel Company to supply it with 5
million tonnes of iron ore pellets over a
five-year period.
The contract involves
the supply of 600,000 tonnes a year
(t/y) in 2004 and 2005,
rising to 840,000 t/y in 2006 and
1.5 million t/y in the
final two years.
In the beginning of 2005
subject changed its legal form
from
Shareholding Company
(closed joint stock company) in line
with the legislative
requirements.
On 19 June 2006, Gulf
Investment Corporation (GIC),
announced the
acquisition of the 50% shares held by
venture partner in Gulf
Industrial Investment Company
(GIIC) in the
Gulf Investment
Corporation (GIC) became a sole shareholder
in the subject.
The purpose of this
acquisition was to develop and
restructure subject's
investments in the iron and steel
industry in the region.
The acquired 50% shares were
planned to be sold to
strategic Gulf investors.
In the beginning of
2007, Gulf Investment Corporation
(GIC),
shareholders.
C.R. No. : 19191 - 1 (expiry date : 17 February 2011)
BCCI Membership No.: 4040
Authorised Capital : US DLRS 80,000,000
Paid up Capital : US DLRS 50,000,000
Bahraini Shareholding Company (exempt closed joint stock company)
with the following directors and shareholders :
Directors
1. Hisham A. M. S. Al Razzuqi
(Kuwaiti national)
2. Khaled A. M. S. Al Qadeeri
(Kuwaiti national)
3. Dr. Ali Basdaq
(Turkish national)
Authorised persons :
1. Hisham A. M. S. Al Razzuqi
(Kuwaiti national)
2. Khaled A. M. S. Al Qadeeri
(Kuwaiti national)
Shareholders Percentage
1. Gulf Investment Corporation GSC 50%
Safat 13035
Telephone: (965) 2222 5000
Fax : (965) 2222 5010
2. Qatar Steel Company QSC 25%
Mesaieed
Telephone: (974) 4477 8778
Fax : (974) 4477 1424
3. Mohammed Abdulmohsin Al-Kharafi & Sons For General 10%
Trading, General Contracting
And Industrial
Structures W.L.L.
4. National Industries Group Holding K.S.C. 10%
Safat
Telephone: (965) 4481 5625 /
4483 650
Fax : (965) 4481 3442
5. Kuwait Foundry Co. S.A.K. 5%
Block 1181
Telephone: (965) 4476 6691
Fax : (965) 4476 3033
Affiliated companies of Gulf Industrial Investment Co E.C.J.S.C :
Associates
1. Bitumat Company
2. Gulf Industrial Investment
Company
3. Bahrain Industrial
Pharmaceutical Company
4. National Titanium Dioxide
Company (CRISTAL)
5. A'saffa Poultry Farms
SAOG
6. Al Manar Plastics Product
Company
7.
8. Dhofar Fisheries Industries
Company
9. Celtex Weaving Mills
Company
10. Rawabi Emirates (PJSC)
Equity Participations
1. Gulf Stone Company
2.
3. Advanced Electronics Company
(AEC)
4. National Environmental
Services Company (NESCO)
5. Arab Pesticide Industries
Company (MOBEED)
6. National Petrochemical
Industrialization Company
7. Interplast Company
Limited
8. Arab Qatari Company for Dairy
Products
9. Al Salam Aircraft Company
10. Gulf Ferro Alloys Company (Sabayek)
11. Jarir Marketing Company
12. National Aluminum Products Company
13. Ras Laffan Power Company
14. Zamil Industrial Investment Company (ZIIC)
15. National Pharmaceutical Industries Company
16. Securities & Investment Company (SICO)
17. Al Jubail Chemical Industrial Company (JANA)
18. Gulf Aluminum Rolling Mill Company (GARMCO)
19. Arabian Industrial Fibers Company (Ibn Rushd)
20. International Fish Farming Company
21. United Power Company
22. Oasis International Leasing Company (WAHA)
23. Thuraya Satellite Telecommunications Company
24.
Affiliated companies of Gulf Investment Corporation :
Subsidiaries
1. Bituminous Products Company Limited (Bitumat) 100.0%
(Building material
manufacturing)
2. G.I. Corporation General Trading 100.0%
and Contracting Company W.L.L.
(Holding company)
3. Gulf Denim Limited 100.0%
UAE
(Textile manufacturing)
4. Investel Holdings W.L.L. 100.0%
(Holding company)
5. GIC Financial Services Ltd 100.0%
(Holding company)
6. GIC Investment Holding Ltd 100.0%
(Holding company)
7. Gulf
(Electrical manufacturing)
8. GIC Technology Partnership Co. 80.0%
(Holding company)
9. Gulf Jyoti International 70.0%
UAE
(Electrical manufacturing)
10.Crown Paper Mills Ltd FZC 51.0%
UAE
(Paper manufacturing)
Associated Companies
1. Gulf Re Holdings Ltd. 50.0%
U.A.E
2. Al Dur Power & Water
Co. 50.0%
3. United Stainless Steel Company
B.S.C. (Closed) 50.0%
4. Oman Investment Co. 50.0%
5. Gulf Industrial Investment Co.
(E.C.) 50.0%
6. Gulf Electronic Tawasul
Company K.S.C. (Closed) 47.5%
7. Al Ezzel Power Company
B.S.C. 45.0%
8. Bahrain Industrial
Pharmaceutical Co. 40.0%
9. Orimix Concrete Products
L.L.C 40.0%
U.A.E
10. SGA Marafiq Holding W.L.L. 33.3%
11. A'Saffa Poultry Farms Co. SAOG 33.3%
12. The National Titanium Dioxide Co. Ltd. (CRISTAL) 33.0%
13. Oman Fiber Optic Co. SAOG 25.0%
14. Technical Supplies & Services Co. Ltd. 25.0%
U.A.E
15.
16. Jeddah Cable Company 25.0%
17. ALUMCO L.L.C 24.5%
U.A.E.
18. Interplast Company Limited - (L.L.C) 23.5%
U.A.E.
19. Celtex Weaving Mills Co. Ltd. 23.0%
20. Rawabi Emirates (PJSC) 22.5%
U.A.E
21.
22. Shuqaiq Water & Electricity Co. 20.0%
23. Gulf International Pipe Industry Co. 20.0%
24. Gulf Stone Company SAOG 20.0%
25. Tatweer Infrastructure Company (Q.S.C.C.) 13.0%
26. Perella Weinberg Partners 10.3%
U.S.A
27. Rasameel Structured Finance Co. K.S.C. 10.0%
28. Ras Laffan Power Company Limited (Q.S.C.) 10.0%
29. The
U.A.E
30. KGL Logistics Company K.S.C. (Closed) 9.0%
31. Securities and Investment Company B.S.C. 8.0%
32. National Industrialization Co. (NIC) 7.9%
33. Gulf Aluminium Rolling Mill Co. B.S.C. 5.9%
34. United Power Company SAOG 2.3%
35. Al-Razzi Holding Company K.S.C. 2.0%
36. Arabian Industrial Fibers Company (IBN RUSHD) 1.9%
37. Thuraya Satellite Telecommunications Company PJSC 1.7%
U.A.E
38. Yanbu National Petrochemical Co. (Yansab) 0.9%
39. Zamil Industrial Investment Co.
ACTIVITIES
The Company is involved in the following activities :
Manufacturers and suppliers of direct reduction billets grade iron oxide
pellets.
Subject has tested samples of Iranian iron ore for use at its iron
pellet plant in Hidd. The ore comes from new mines recently opened in
GIIC sells approximately 900,000 tonnes/year of iron pellets to
and is investigating the possibility of a barter deal for the supply
of 500,000 tonnes/year of iron ore pellet feed.
In 1995/96 GIIC expanded the capacity of the pellet plant in order to
raise capacity by one third to 4 million tonnes/year in 1996. The
cost of expansion was US $ 15 million.
Imports iron ore from
Production capacity of the iron ore pellets : 11,000,000 tons - 2010
Exports to 59% to Gulf Countries, 15% to
Asia, 11% to Indian Sub-Continent and 2%
Principal overseas suppliers : CVRD, Brasil
MBR
Brasil
LKAB
Kudremuka
IT support :
To meet a rise in demand due to the implementation of Oracle
e-business suite and an increased client range, subject contracted Gulf
Business Machines (GBM), IBM's representative in the GCC excluding
FACILITIES
The Company has the following facilities :
Owned premises comprising administrative offices and a manufacturing
unit with warehousing facilities located at the heading address.
Plants :
1.
near Hidd.
2. The power plant consists of three gas turbine-generator units
having a total installed capacity
of 78 Megawatt.
These provide the necessary electric power for the entire pelletizing
plant complex.
3. Hydrated lime plan, used in the palletizing process, is produced
in a Hydrated lime plant having
a capacity of 135,000 tons per
year. The feed for this plant
is local lime stone from an area
located in the South of
Bahrain.
Subject is using lighterage facility to receive large
East Berth - Unloading
- 300 meters Long
- Trolley Type Grab Unloaders - 1500 t / hour each
-
Western Berth - Loading Pellets
- 260 meters Long
- Tripper Ship Loader - 3,000 t / hour
Draft at Jetty
12.80 meters safe sailing and arrival draft is available along the
approach channel.
Lighterage Point
Located at about 40 miles from the Jetty.
SPECIAL NOTE
You enquired on : GULF INDUSTRIAL INVESTMENT CO. (E.C.). Please note
that subject's correct name is as per heading.
Interviewed: Dilip George
(Chief Financial Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.45.03 |
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|
1 |
Rs.72.98 |
|
Euro |
1 |
Rs.62.94 |
RATING EXPLANATIONS
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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 |
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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 |
|
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 |
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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 |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.