MIRA INFORM REPORT

 

 

Report Date :

23.04.2013

 

IDENTIFICATION DETAILS

 

Name :

ZAMIL AIRCONDITIONERS & HOME APPLIANCE LTD

 

 

Registered Office :

Dammam – Khobar Highway, 1st Industrial Area, P O Box 14440, Dammam 31424

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.05.1982

 

 

Com. Reg. No.:

2050033719, Dammam

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers of air conditioning equipment and household appliances

 

 

No. of Employees :

3000

 

RATING & COMMENTS

 

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

 

Status :

Good

 

 

Payment Behaviour :

No  Complaints

 

 

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)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SAUDI ARABIA - ECONOMIC OVERVIEW

 

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 17% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Over 5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia's economic development.

Source : CIA


SUMMARY

 

Company Name                         : ZAMIL AIRCONDITIONERS & HOME APPLIANCE LTD

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Company

Registration Date                                   : 27th May 1982

Commercial Registration Number            : 2050033719, Dammam

Chamber Membership Number                : 414

Issued Capital                                        : SR 173,000,000

Paid up Capital                                      : SR 173,000,000

Total Workforce                                     : 3,000

Activities                                               : Manufacturers of air conditioning equipment and household appliances.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Naseem Khan, Assistant Finance Manager

 

 

 


COMPANY NAME

 

ZAMIL AIRCONDITIONERS & HOME APPLIANCE LTD

 

 

Company ADDRESS

 

Registered & Physical Address

Street               : Dammam – Khobar Highway

Area                 : 1st Industrial Area

PO Box             : 14440

Town                 : Dammam 31424

Country             : Saudi Arabia

Telephone         : (966-3) 8473333

Facsimile          : (966-3) 8471304

Mobile               : (966-50) 6269131

Email                : info@zamilac.com

 

Premises

Subject operates from a large suite of offices and a factory that are rented and located in the Industrial Area of Dammam.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Ahmed Abdullah Al Zamil                                                                   Chairman

·       Abdullah Al Zamil                                                                              Chief Executive Officer

·       Osama Abu Nayyan                                                                          Chief Operating Officer

·       Abdul Mohsin Al Ghamdi                                                                   General Manager

·       Awad Al Shareef                                                                               Finance Manager

·       Khalid Hashousha                                                                             Marketing Manager

·       Ihab Barakat                                                                                     Sales Manager

·       Abbas Doueik                                                                                   Technical Manager

·       Naseem Khan                                                                                   Assistant Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 27th May 1982

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 2050033719, Dammam

 

Chamber Member No. : 414

 

Issued Capital              : SR 173,000,000

 

Paid up Capital            : SR 173,000,000

 

Name of Shareholder (s)                                                     Percentage

 

·       Al Zamil Industrial Investment Co (ZIIC)                                    95%

First Industrial City

PO Box: 270 & 877, Dhahran Airport 31932

Dammam 31421

Tel: (966-3) 8571840

Fax: (966-3) 8571291

 

·       Zamil Ikhtibar Co Ltd                                                                5%

Dammam

 

 

AFFILIATED COMPANIES

 

Introduction

Throughout the Arabian Gulf and around the world, the Al Zamil Group of Companies, has established itself as a well-known and highly respected name in the wide range of activities in which it operates. From two main centres in Saudi Arabia and Bahrain, the group whose origins date back to the 1930s, continues to go from strength to strength, through a strategy of defined and planned diversification.

 

Continual reinvestment in technology, the utilisation of state-of-the-art equipment, and an experienced management team are all key elements to the group’s success. The entrepreneurial spirit that prevailed throughout the early years continues to be evident as new manufacturing and business opportunities are recognised and implemented, either solely, as a joint venture, or by representing international organisations.

 

Today the group is one of the leading diversified industrial and commercial organisations and one of the most respected and trusted names in the Kingdom of Saudi Arabia and the Gulf States. The group has actively participated in the diversification programme to create a viable industrial base, parallel to the oil industry and in line with the objectives of the economic development plans of Saudi Arabia.

 

The Al Zamil Group of Companies’ operations range from air conditioning manufacture to food processing, plastics to steel fabrication and stained glass production to travel services. In addition, the group’s affiliation with a number of international external organisations has led to their involvement in numerous other areas including banking and industrial investment, petrochemicals and paint, vegetable oil production, fencing systems and packaging.

 

Background

The origins of the Al Zamil Group of Companies can be traced back to the 1930s when Abdulla Hamad Al Zamil began commercial trading operations in the seaport of Dammam in the Eastern Province of Saudi Arabia and the island of Bahrain, less than 30 kilometres away. The company of Abdulla Hamad Al Zamil grew and today represents one of the leading private organisations of the region.

 

The company’s growth accelerated in the early 1970s keeping pace with the region’s rapid development. In expanding, the Al Zamil Group, aware of the need for the Gulf economies to diversify their earnings from total reliance on oil, followed the path of industrialisation.

 

With a foot on the export ladder, the group is now looking to the top rung. Major contracts have been signed to supply air conditioners to the Far East and Europe, mirrors for Australia and Asia, plastic goods for South Asia, Japan and Europe and pre-engineered steel buildings for South East Asia.

 

In the neighbouring countries of the Middle East, the name Al Zamil is highly regarded. Now, in the international arena, the group is showing that Arabian Gulf manufacturers can compete on quality, on price and on service. Many Arab companies are today following the Al Zamil Group.

 

In the strongest endorsement to date of the group’s leading position, a major trading agreement was reached with the Machinery and Electronics Industry of the People’s Republic of China. The Chinese party is the export arm of the Ministry of Machinery & Electronics, and grants the group exclusive rights to all machines made by the companies owned by the Ministry.

 

Subsidiaries and Affiliated Companies

 

The Al Zamil Group of Companies, includes the following concerns:

 

·       Abdullah Bin Hamad Al Zamil & Brothers

Al Zamil Building

Prince Talal Avenue

PO Box : 9

Al Khobar 31952

Tel : (966-3) 8945219

Fax : (966-3) 8949336

CR No : 2051002758

 

The following concerns are registered as trading divisions, operating under the umbrella of Abdullah Bin Hamad Al Zamil & Brothers. The trading divisions below all bear the same C.R.No. 2051002758, plus an additional 3 digit number, which is referred to as the branch/division serial number.

 

       A.         Zamil Automatic Doors

                   PO Box : 1633

                   Dammam 31441

                   Tel : (966-3) 8570985

                   Fax : (966-3) 8572193

                   C.R.No : 2051002758/020

 

Zamil Automatic Doors combines existing group expertise and products with a licence from an Australian manufacturer of infrared and machinery equipment. As a consequence a wide range of products, automatic sliding and security doors, revolving heavy duty automatic and intelligent and heavy duty swing automatic doors, sliding and swing gates, traffic barriers and roller shutters are produced.

 

     B.    Zamil Partition Industries

            PO Box : 1633

                   Dammam 31441

                   Tel : (966-3) 8571840

                   Fax : (966-3) 8572180

                   C.R.No : 2051002758/021

 

In response to demands for flexible office space, through the installation of moveable partitions, Zamil Partition Industries was established in 1984. In conjunction with an aluminium frame, materials, including fire rated gypsum board, aluminium ceiling runners, metal studs, fibreglass insulation, annealed or tempered glass and wooden doors are used to provide an aesthetic and functional solution.

 

     C.    Zamil Ladders

            PO Box : 1633

                   Dammam 31441

                   Tel : (966-3) 8570985

                   Fax : (966-3) 8572193

                   C.R.No : 2051002758/003

 

Zamil Ladders’ manufacturing plant in Dammam produces a wide selection of different size style profile and tubing ladders, for local and export markets. Extra lightweight models are produced for home use, while heavy duty models are available for industry, in addition to custom made orders.

 

     D.    Zamil Travel

            Prince Talal Street

            PO Box : 9

                   Al Khobar 31952

                   Tel : (966-3) 8983350

                   Fax : (966-3) 8983354

                   C.R.No : 2051002758/001

 

     E.    Arabian Gulf Construction

            PO Box : 9

                   Al Khobar

                   Tel : (966-3) 8579568

                   C.R.No : 2051002758/005

 

Arabian Gulf Construction handles civil, mechanical and electrical engineering works right across the Kingdom. Major projects have included factories and industrial plants, housing and recreational complexes, luxurious multi-storied buildings and accommodation camps for several leading companies and government agencies.

 

     F.    Al Zamil Aluminium Industries

            Dammam Industrial Estate

            PO Box : 1633

                   Dammam 31441

                   Tel : (966-3) 8570985

                   Fax : (966-3) 8572193

                   C.R.No : 2051002758

                   Licence No : 214

 

Producers of a fully integrated architectural aluminium. The manufacturing facilities are equipped to design, fabricate and erect profiles and sheets as well as other products, including louvers and aluminium ladders.

 

·       Zamil Heavy Industries Ltd

Al Malek Road

PO Box : 13169

Jeddah 21493

Tel : (966-2) 6992411

Fax : (966-2) 6992420

C.R.No : 4030014831

Licence No : 214

 

Zamil Heavy Industries Ltd is engaged in the fabrication, construction and installation for the instrumentation and engineering industry.

 

·       Zamil Gibbs Art Glass

     PO Box : 1633

       Dammam 31441

       Tel : (966-3) 8577975

       Fax : (966-3) 8572193

       C.R.No : 2050019711

 

Zamil Gibbs Art Glass is a joint venture with Goddard & Gibbs of London, producing decorative glass products for the local market. This company produces a wide range of leaded stained and decorative stained glass matt deep and mould sandblasting, various types of painting and silk screening for palaces, corporate offices and private villas.

 

·       Zamil Schelgel Co Ltd

Dammam – Alkhalidiya

PO Box : 7480

Dammam 31462

Tel : (966-3) 8572703

Fax : (966-3) 8571485

C.R.No : 2050014370

 

This is a joint venture operation with the American Schelgel Company, producing weather-strip sealing for aluminium-framed double glazing.

 

·       Al Zamil Food Industries

Jubail Industrial City

PO Box : 240

Jubail 31951

Tel : (966-3) 3417368 / 3415235

Fax : (966-3) 3418235

C.R.No : 2055000170

Licence No : 83

 

Producers of a range of dairy products under the trade mark of “Blue Ribbon” for the retail market and the catering industry as well as meat products in retail packs under the brand name of “Western Butcher”.

 

·       Zamil Operations and Maintenance Company (Zamil O & M)

King Khalid Street, 14th Cross

PO Box : 1922

Al Khobar 31952

Tel : (966-3) 8949225

Fax : (966-3) 8571485

C.R.No : 2050003290

 

Zamil O & M provides operation and maintenance services for the public and defence sectors.

 

·       Zamil Plastic Industries

PO Box : 1748

Al Khobar 31952

Tel : (966-3) 8572812

Fax : (966-3) 8574322

C.R.No : 2050009176

 

       Zamil Plastic Industries was incorporated in 1980 following the group’s acquisition of the Saudi Plastic Ware Company.

 

·       Saudi Formaldehyde Chemical Company Ltd

Al Moujil Building

Al Dhahran Street

PO Box : 3139

Dammam 31471

Tel : (966-3) 8342397 / 8338831 / 8337317

Fax : (966-3) 8342283

 

·       Zamil Aluminium

Sitra Industrial Area

PO Box : 285

Manama

Bahrain

Tel : (973) 700555 / 700335 / 700337

Fax : (973) 700336

C.R.No : 1380

 

·       Zamil Marble Factory

Mina Salman Industrial Area

PO Box : 285

Manama

Bahrain

Tel : (973) 727046

Fax : (973) 727298

C.R.No : 1380

 

·       Al Zamil Nail and Screw Factory

Mina Salman Industrial Area

PO Box : 285

Manama

Bahrain

Tel : (973) 243367 / 725448

Fax : (973) 727298

C.R.No : 1380

 

·       Al Zamil Coatings

PO Box : 285

Manama

Bahrain

Tel : (973) 700555

Fax : (973) 700336

C.R.No : 1380

 

·       Saudi Metal Industries Company Limited

Dammam Industrial Estate

PO Box : 1150

Dammam 31431

Tel : (966-3) 8572190

Fax : (966-3) 8572810

 

·       Saudi Kuwaiti Cement Manufacturing Company

Social Insurance Building

Dhahran Road

PO Box : 4536

Dammam 31412

Tel : (966-3) 8272869

Fax : (966-3) 8271923

 

·       Abdulrahman Al Zamil Company

Corner of King Faisal Street and 9th Street

Al Khalidia Area

PO Box : 2833

Dammam

Tel : (966-3) 8579566

Fax : (966-3) 8579567

 

·       Abdullah Al Zamil Est for Contracting & Trading

Jeddah

Tel : (966-2) 6992411

 

·       Yamama Factories for Red Bricks and Clay Products Company Ltd

Yamama Factories Building

Sitteen

PO Box : 26156

Riyadh 11486

Tel : (966-1) 5231323 / 5230694

Fax : (966-1) 5230997

 

·       National United Supermarkets Limited

Al Rabwa

PO Box : 60931

Riyadh 11555

Tel : (966-1) 4916964

 

·       Saudi Laminco Co Ltd

Industrial City No. 2

PO Box : 43130

Riyadh 11561

Tel : (966-1) 2652325 / 4985275

Fax : (966-1) 2652169 / 4985007

 

·       Lighweight Construction Company Ltd

Chamber of Commerce Building, 6th Floor, Suite 8

Dabbab Street

Malaz

PO Box : 6230

Riyadh 11442

Tel : (966-1) 4035426

Fax : (966-1) 4035486

 

·       Delta Catalytic Saudi Arabia Ltd

PO Box : 270

Dhahran Airport 31932

Tel : (966-3) 8571840

Fax : (966-3) 8571291

 

This company undertakes the construction of structures, as well as the management and maintenance of oil and gas plants and complimentary operations.

 

·       Zamil Birla Technical Services Co Ltd (ZABITS)

PO Box : 9

Al Khobar 31952

Tel : (966-3) 8950980 / 8951240

Fax : (966-3) 8951719

 

·       United Carton Industries Co

PO Box : 31503

Jeddah 21418

Tel : (966-2) 6375909

Fax : (966-2) 6368789

 

·       Gulf Reyrolle Ltd

       PO Box : 9

Al Khobar 31952

     Tel : (966-3) 8593232

     Fax : (966-3) 8588155

 

·       Gulf Packaging Industries Ltd

PO Box : 8556

Dammam 31492

Tel : (966-3) 8576804

Fax : (966-3) 8577345

 

·       Gulf Advanced Chemical Industries Ltd

PO Box : 240

       Al Jubail 31951

Tel : (966-3) 3415235

Fax : (966-3) 3418235

 

·       Al Tawfiq Company for Plastic & Woven Sacks Industries Ltd

Jeddah

     Tel : (966-2) 6380548 / 6369128

     Fax : (966-2) 6380549

 

·       Middle East Battery Co

PO Box : 360

Dhahran Airport 31932

Tel : (966-3) 8121221

Fax : (966-3) 8121246

 

·       Saudi German Co for Nonwoven Products

PO Box : 3319

Al Khobar 31952

Tel : (966-3) 8122111

Fax : (966-3) 8121333

 

·       Universal Metal Coating Co

PO Box : 99

Al Khobar 31952

Tel : (966-3) 3588400

Fax : (966-3) 3588480

 

·       Gulf Stabilizers Company

Dammam

     Saudi Arabia

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of air conditioning equipment and household appliances.

 

                 Subject is ISO 9001:2008 accredited.

 

Production Capacity: 900,000 air conditioners per year.

 

Export Countries: Europe, GCC countries, Africa and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:


 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/11:                Year Ending 31/12/12:

 

Total Revenue                            SR 1,880,000,000                      SR 2,000,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Naseem Khan, Assistant Finance Manager

 

 

BANKERS

 

·       National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.17

UK Pound

1

Rs.82.45

Euro

1

Rs.70.70

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.