MIRA INFORM REPORT

 

 

Report Date :

22.08.2013

 

IDENTIFICATION DETAILS

 

Name :

UNITED PLASTIC PRODUCTS CO LTD (UPPC)

 

 

Registered Office :

Jeddah Industrial City, Phase 4, Road No. 404, Street No. 405, 32859, Jeddah 21438

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15th November 1992

 

 

Com. Reg. No.:

4030091307, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Manufacturers of polyethylene film.

 

 

No. of Employees :

400

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 arebia - 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                         : UNITED PLASTIC PRODUCTS CO LTD (UPPC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 15th November 1992

Commercial Registration Number            : 4030091307, Jeddah

Chamber Membership Number                : 45323

Issued Capital                                        : SR 18,000,000

Paid up Capital                                      : SR 18,000,000

Total Workforce                                     : 400

Activities                                               : Manufacturers of polyethylene film.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Maroon Assi, Finance Manager


COMPANY NAME

 

UNITED PLASTIC PRODUCTS CO LTD (UPPC)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Jeddah Industrial City, Phase 4, Road No. 404, Street No. 405

 

PO Box             : 32859

 

Town                 : Jeddah 21438

Country             : Saudi Arabia

 

Telephone         : (966-2) 6081477 / 6380885 / 6370757 / 6658139 / 6080704

Facsimile          : (966-2) 6380825 / 6658140

Email                : info@napcounited.com / uppc@zajil.net / maroon.assi@napcogroup.com

 

Premises

 

Subject operates from a suite of offices and a factory covering an area of 25,000 square meters that are owned and located in the Industrial Area of Jeddah.

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Mohamed Walid Yassin                                                                          Commercial Manager

 

Murali Thachanghot                                                                                Purchasing Manager

 

Maroon Assi                                                                                          Finance Manager

 

Cherbel Bechara                                                                                    Quality Control Manager

 

Ronin Dhagher                                                                                       Factory Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20/05/1413 Hijri (corresponding to 15th November 1992)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 4030091307, Jeddah

 

Chamber Member No. : 45323

 

Issued Capital              : SR 18,000,000

 

Paid up Capital            : SR 18,000,000

 

Name of Partner (s)

 

Jamal Abdul Rahman Abdulaziz Al Muaibed

 

United Commercial Investments Company

PO Box: 7170

Riyadh 11462

Saudi Arabia

 

Frem Industrial Group

 

Abdul Muhsen Abdullah Al Mutlaq

 

Mutlaq Abdullah Al Mutlaq

 

Fawzi Tarsa Saif

 

Marwan Hussain Abdullatif

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Napco Group of Companies, which began activities in 1956 and has since grown into a SR1 billion operation.

 

The Napco Group of Companies consists of the following concerns:

 

·       Napco Riyadh Paper Products Company Ltd (NRPC)

Prince Salman Street (Street No. 305), Exit 17

Riyadh Industrial Area, Phase III

PO Box: 827

Riyadh 11421

Tel: (966-1) 2650155 / 2412087 / 2415283

Fax: (966-1) 2650223 / 2412098

Email: napcoriyadh@napcogroup.com

 

·       Easternpak

       2nd Industrial City, Street No. 135

PO Box: 9942

Dammam 31423

Tel: (966-3) 8121341

Fax: (966-3) 8121305

E-mail: info@napcoeasternpak.com

 

·       Multipak

       Industrial Area Phase 4, Street 407

PO Box: 32826

Jeddah 21438

Tel: (966-2) 6081118

Fax: (966-2) 6081063

E-mail: info@napcomultipak.com

 

·       Napco Composite Packaging Technology (Compact)

       2nd Industrial City, Street 133

PO Box: 31646

Al Khobar 31952

Tel: (966-3) 8121244

Fax: (966-3) 8121322

Email: info@napcocompact.com

 

·       National Consumer Products Company (NCPC)

First Industrial City, 6th Street

PO Box: 214

Dammam 31421

Tel: (966-3) 8471914 / 8473111

Fax: (966-3) 8471918

Email: info@napcoconsumer.com

 

·       Napco Modern Plastic Products Company (NMPPC)

     Dammam-Al Khobar Road

     First Industrial City

     PO Box: 206

     Dammam 31411

     Saudi Arabia

     Tel: (966-3) 8473040

     Fax: (966-3) 8471484

     Email: info@napcomodern.com

 

·       National Paper Company Ltd (NPCL)
Industrial City Phase 4, Street 404
PO Box: 30263
Jeddah 21477
Tel: (966-2) 6370757
Fax: (966-2) 6374886
Email: info@napcoconsumer.com

 

·       National Paper Products Company (NPPC)

Ibn Sina Road

1st Industrial City

PO Box: 538

Dammam 31421

Tel: (966-3) 8473111 / 8471617

     Fax: (966-3) 8471435

     Email: info@napcopaper.com

 

·       Saudi Paper Cups & Containers Co Ltd (SPCC)
Jeddah Industrial Area, Street 413

PO Box: 12175

Jeddah 21473

Tel: (966-2) 6370918 / 6512381 / 6370447 / 6378357

Fax: (966-2) 6518557 / 6379842

Email: wdaher@saudipapercups.com

 

 

OPERATIONS

 

Activities: Subject is one of the largest polyethylene film manufacturers in the Middle East, producing plain and

printed LDPE, LLDPE, PA/PE co-extruded, mono-layer, and composite films. The company also supplies flexible packaging film and finished products to medical, hygiene, industrial, and agricultural customers throughout the region.

 

UPPC also offers flexographic printing services.

 

Subject was ISO 9002 accredited in August 1998.

 

Production Capacity: 45,000 tonnes per annum

 

Import Countries: The Netherlands, Belgium and the United States of America

 

Operating Trend: Steady

 

Subject has a workforce of approximately 400 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 Sales                                  SR 113,000,000                         SR 115,600,000

 

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

 

 


BANKERS

 

Saudi Investment Bank (SAIB)

PO Box: 5577

Jeddah 21432

Tel: (966-2) 6531010

Fax: (966-2) 6532333

 

National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-2) 6434777

Fax: (966-2) 6441686

 

Arab National Bank (ANB)

Madinah Road

PO Box: 9463

Jeddah 21413

Tel: (966-2) 6600272

Fax: (966-2) 6650202

 

Al Bank Al Saudi Al Fransi

Al Sharafiya Branch

Madinah Road

PO Box: 7888

Jeddah 21472

Tel: (966-2) 6605863

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 July 2008                                  July 2009

Credit amount                                        600,000                         600,000

Amount overdue                         0                                              0

Payment terms                                      90 days                                     90 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        Regular                                     Regular

Currency                                               Euros                                        Euros

 

 


GENERAL COMMENTS

 

United Plastic Products Co Ltd (UPPC) was established in 1993 and is one of the largest polyethylene film manufacturers in the Middle East, producing plain and printed LDPE, LLDPE, PA/PE co-extruded, mono-layer, and composite films.

 

The company is a member of the Napco Group of Companies, which began activities in 1956 and has since grown into a SR1 billion operation.

 

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.63.46

UK Pound

1

Rs.99.42

Euro

1

Rs.85.12

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

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.