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Report Date : |
01.04.2013 |
IDENTIFICATION DETAILS
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Name : |
SEARLE PAKISTAN LIMITED |
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|
|
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Registered Office : |
1st Floor, N.I.C.
Building, Abbasi Shaheed Road, Karachi |
|
|
|
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Country : |
Pakistan |
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|
|
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Financials (as on) : |
30.06.2012 (Unconsolidated) |
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Year of Establishments: |
1965 |
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Com. Reg. No.: |
0002161 |
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Legal Form : |
Public Limited Company |
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|
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Line of Business : |
Manufacturing of
Pharmaceutical Products and a low calorie sweetener and also engaged in the
sale of foods and consumer items. The Company also provides services relating
to manufacturing of Pharmaceutical Products for other Companies |
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|
|
|
No. of Employees : |
530 |
RATING & COMMENTS
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Pakistan |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
pakistan - ECONOMIC OVERVIEW
Decades of
internal political disputes and low levels of foreign investment have led to
slow growth and underdevelopment in Pakistan. Agriculture accounts for more
than one-fifth of output and two-fifths of employment. Textiles account for
most of Pakistan's export earnings, and Pakistan's failure to expand a viable
export base for other manufactures has left the country vulnerable to shifts in
world demand. Official unemployment is 6%, but this fails to capture the true picture,
because much of the economy is informal and underemployment remains high. Over
the past few years, low growth and high inflation, led by a spurt in food
prices, have increased the amount of poverty - the UN Human Development Report
estimated poverty in 2011 at almost 50% of the population. Inflation has
worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011,
before declining to 9.3% at year-end. As a result of political and economic
instability, the Pakistani rupee has depreciated more than 40% since 2007. The
government agreed to an International Monetary Fund Standby Arrangement in
November 2008 in response to a balance of payments crisis. Although the economy
has stabilized since the crisis, it has failed to recover. Foreign investment
has not returned, due to investor concerns related to governance, energy,
security, and a slow-down in the global economy. Remittances from overseas
workers, averaging about $1 billion a month since March 2011, remain a bright
spot for Pakistan. However, after a small current account surplus in fiscal
year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit
in the second half of 2011, spurred by higher prices for imported oil and lower
prices for exported cotton. Pakistan remains stuck in a low-income, low-growth
trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must
address long standing issues related to government saless and energy production
in order to spur the amount of economic growth that will be necessary to employ
its growing population. Other long term challenges include expanding investment
in education and healthcare, and reducing dependence on foreign donors.
|
Source : CIA |
SEARLE PAKISTAN LIMITED
|
Registered Address |
|
1st Floor, N.I.C.
Building, Abbasi Shaheed Road, Karachi, Pakistan |
|
Tel # |
92
(21) 35674321 - 35674328 (8 Lines) |
|
Fax # |
92
(21) 35687693 |
|
a. |
Nature of Business |
Manufacturing of Pharmaceutical Products and a low calorie sweetener
and also engaged in the sale of foods and consumer items. The Company also
provides services relating to manufacturing of Pharmaceutical Products for
other Companies |
|
b. |
Year Established |
1965 |
|
c. |
Registration # |
0002161 |
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Address |
F-319, S.I.T.E., Karachi, Pakistan |
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Tel # |
92 (21) 32578001 - 32578007 (7
Lines) |
|
Fax # |
92 (21) 32564667 |
Grant Thornton Anjum Asim Shahid Rahman
(Chartered
Accountants)
Searle Pakistan Limited (the Company) was incorporated in Pakistan as a
private limited company in October 1965. In November 1993, the Company was
converted to a public limited company. Its shares are quoted on the Karachi and
Islamabad stock exchanges.
|
Names |
Designation |
|
Mr.
Rashid Abdulla Mr.
S. Nadeem Ahmed Mr.
Zubair Palwala Mr.
Munis Abdullah Mr.
Asad Abdulla Mr.
Ayaz Abdulla Mr.
Adnan Asdar Ali |
Chairman CEO & Managing Director Director Director Director Director Director |
|
Categories |
Shareholding (%) |
|
Directors,
CEO and their spouse and minor children Associated Companies,
undertakings and related parties NIT & ICP Public
Sector Companies Banks, DFIs
and NBFIs Insurance
Companies Modarabas Mutual
Funds General
Public Others |
0.06 55.96 2.95 4.53 0.10 3.23 2.60 7.41 21.38 1.77 |
A. Subsidiary
· IBL HealthCare (Private) Limited, Pakistan
B. Associated
Companies
·
International
Brands Limited, Pakistan.
First IBL Modaraba, Pakistan.
First UDL Modaraba, Pakistan.
Manufacturing of Pharmaceutical Products and a low calorie
sweetener and also engaged in the sale of foods and consumer items. The Company
also provides services relating to manufacturing of Pharmaceutical Products for
other Companies
530
Installed
capacity
Actual Actual
per
annum Production Production
(Based
on Eight hours) 2012 2011
(‘000) (‘000) (‘000)
Liquid (Bottles)
8,000 45,078
39,037
Tablets (numbers) 440,000 1,653,198 1,203,334
Capsules
(numbers) 45,000 52,133 58,750
Sachets
(numbers) 19,200 28,024 21,467
Pouches
(numbers) - 734 -
Injectibles
(numbers) 5,280 15,600 8,490
Jars (numbers) - 1,179 -
The
current actual production capacity of Capsules and Sachets was under utilized
on account of lower demand.
|
Years |
In Pak Rupees |
|
2011 2012 |
4,238,840,000/- 4,936,049,000/- |
(Foreign)
· GD SEARLE, U.S.A.
SANOFI
AVENTIS, U.S.A.
GRUNENTHAL,
GERMANY.
3M
PHARMACEUTICALS, U.S.A.
FOREST
LABORATORIES UK LIMITED. U.K.
ORION,
FINLAND.
LISA
PHARMA, ITALY.
MEAD JOHNSON & COMPANY, U.S.A.
INTERSURGICAL
LIMITED, U.K.
Mainly exist at major
cities of Pakistan
Mainly to Sri
Lanka, Sudan, Ethiopia, Kenya, Uganda, Yemen, Bangladesh, Myanmar, Tanzania
(1) Habib Bank Limited,
Pakistan.
(2) National Bank of
Pakistan.
(3) Standard Chartered
Bank, Pakistan.
(4) Citibank N.A.,
Pakistan.
(5) Habib Metropolitan
Bank Limited, Pakistan.
(6) Soneri Bank Limited,
Pakistan.
(7) United Bank Limited,
Pakistan.
(8) Allied Bank Limited,
Pakistan.
Company has been able to grow saless from 4.2 billion to 4.9 billion, an
increase of 16.4%. This is particularly pleasing given the adverse state of the
global economy and the law and order situation prevailing in Pakistan. In 2012,
we experienced positive growth in almost every category of our product base,
including Solid (30%), Liquid (26%) and Consumer (60%) as compared to last
year. This tremendous growth was driven by strong performances from a number of
our key brands, including Hydryllin (+43%), Nuberol Forte (+51%),Gravinate
(+175%), Peditral (+110%), and Rotec (+63%). New products launched during last
three years grew 31% over last year and contributed 25% of 2012 sales
(excluding toll sales). As the Company relies heavily on imported raw materials
for production, the increase in international prices of raw material along with
further devaluation of the Pak Rupee has resulted in higher material costs. In
addition to increase in imported material cost, increased cost of utilities and
domestic inflation has also contributed towards increase in Cost of Sales
percentage to Net Sales. However, the company has been able to reduce the
percentage of sales devoted to operating expenses from 26.5%. to 25.4%
Searle is working diligently to overcome challenges and achieve its
medium and long term goals. The medium term objectives include continued focus
on producing high quality pharmaceutical products that meet the demand of
health care professionals and patients. We are committed to provide accurate
health information, safety and protection, clean environment, medical education
and health care to the nation of Pakistan and Global Markets. Searle is also
continuously developing its high quality sales force that will enhance the
sales volume of its existing products portfolio. Support to different NGOs and
contribution in unforeseen calamities will continue as a regular commitment to
the nation of Pakistan. Our medium term objectives also include focusing on
different operational activities that will help in optimizing the cost of
product at different levels. To maximize Searle’s comprehensive capabilities
and expedite implementation of its growth strategies, Searle has taken great
strides towards revamping and restructuring the organization. We believe these
positive steps will lead to realizing our goals in the medium and long term. In
the long term, Searle is planning to align with global trends including an
ongoing population growth, rising demand of generic branded pharmaceuticals and
nutritional products. Searle will aggressively focus on the global market and
will primarily focus to expand the business operation in existing export
countries while looking to penetrate into new countries as well.
Searle Pakistan
Limited (SPL) was incorporated in Pakistan as a Private Limited Company on
October 5, 1965 as a subsidiary of G.D. Searle & Co., U.S.A. Today, Searle
is one of the leading pharmaceutical companies in Pakistan having two
state-of-the art manufacturing facilities in Lahore, and Karachi, Pakistan. The
manufacturing plant based in Karachi is one of the most modern in the country.
We have consistently invested heavily in new technologies and the latest
production & quality control equipment, which is the driving force behind
the consistently high quality of Searle products.
· Pakistan Pharmaceutical Manufacturers Association.
Karachi
Chamber of Commerce & Industry.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 98.80 |
|
UK Pound |
1 |
Rs. 149.00 |
|
Euro |
1 |
Rs. 127.50 |
Subject Company enjoys good reputation in Pakistan. All the directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are usually correct and as per commitments. Company can be considered for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 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.