MIRA INFORM REPORT

 

 

Report Date :

20.12.2013

 

IDENTIFICATION DETAILS

 

Name :

AL WATANIA FOR INDUSTRIES LTD

 

 

Formerly Known As :

SULAIMAN ABDUL AZIZ AL RAJHI EST

 

 

Registered Office :

Al Kharj Road, 2nd Industrial Area, PO Box : 4130 & 7769, Riyadh 11491

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

02.03.2008

 

 

Com. Reg. No.:

1010240366, Riyadh

 

 

Legal Form :

Closed Shareholding Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions :

Al Watania Plastic, National Factory for Foodstuff Production (Waha), Riyadh Carton Factory, Al Watania Blocks, Al Watania Containers

 

 

No. of Employees :

3,500

 

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 :

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 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                                     : AL WATANIA FOR INDUSTRIES LTD

Previously Known As                              : SULAIMAN ABDUL AZIZ AL RAJHI EST

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Closed Shareholding Company

Start Date                                             : 1972

Registration Date                                   : 2nd March 2008

Commercial Registration Number            : 1010240366, Riyadh

Chamber Membership Number                : 195630

Issued Capital                                        : SR 320,000,000

Paid up Capital                                      : SR 320,000,000

Total Workforce                                     : 3,500

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Ali Salayana, Finance Manager

 

 

 


COMPANY NAME

 

AL WATANIA FOR INDUSTRIES LTD

 

PREVIOUSLY KNOWN AS: SULAIMAN ABDUL AZIZ AL RAJHI EST

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : 2nd Industrial Area

PO Box             : 4130 & 7769

Town                 : Riyadh 11491

Country             : Saudi Arabia

 

Telephone         : (966-1) 4470088 / 4489178 / 4481364 / 4466395 / 4980088

Facsimile          : (966-1) 4489256 / 4481364 / 4480089 / 4989595

Mobile               : (966-56) 1494584

Email                : info@wataniaind.com / alwaha@wataniaind.com

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Industrial Area of Riyadh.

 

Branch Office (s)

 

Subject has branches located in Jeddah, Dammam, Buraidah, Madinah, Abha, Al Hasa, Hail, Jizan and Khamis Mushait.

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Sheikh Sulaiman Abdulaziz Al Rajhi                                                        Managing Partner

 

Sheikh Fahd Sulaiman Abdulaziz Al Rajhi                                                Partner

 

Sheikh Abdulallah Sulaiman Abdulaziz Al Rajhi                                        Partner

 

Sheikh Yousef Sulaiman Abdulaziz Al Rajhi                                             Partner

 

Saleh Sulaiman Al Habdan                                                                     Partner

 

Ahmed Saleh Al Khalaf                                                                           Partner

 

Ibrahim El Behirt                                                                                    General Manager

 

Ali Salayana                                                                                          Finance Manager

 

Mohamed Al Louise                                                                               Marketing Manager

 

Mohamed Shahid                                                                                   Export Manager

 

Mustafa Mohamed Ahmed                                                                      Technical Manager

 

Emad Abdul Qader                                                                                 Technology Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1972, however subject was registered on 24/02/1429 Hijri (corresponding to 2nd March 2008)

 

History                          : Subject began in 1972 under the name “Sulaiman Abdul Aziz Al Rajhi Est”. However in 2007 it changed names to “Al Watania for Industries                   Ltd”.

 

 

Legal Form                  : Closed Shareholding Company

 

Commercial Reg. No.  : 1010240366, Riyadh

 

Chamber Member No. : 195630

 

Issued Capital              : SR 320,000,000

 

Paid up Capital            : SR 320,000,000

 

Name of Partner (s)                                                                            Percentage

 

Sheikh Sulaiman Abdulaziz Al Rajhi                                                        99.90%

 

Sheikh Fahd Sulaiman Abdulaziz Al Rajhi                                                  0.02%

 

Sheikh Abdulallah Sulaiman Abdulaziz Al Rajhi                                        0.02%

 

Sheikh Yousef Sulaiman Abdulaziz Al Rajhi                                               0.02%

 

Saleh Sulaiman Al Habdan                                                                       0.02%

 

Ahmed Saleh Al Khalaf                                                                           0.02%

 

 


AFFILIATED COMPANIES

 

Al Rajhi Development Co Ltd

PO Box: 4301

Riyadh 11491

Tel: (966-1) 4761581 / 4769102 / 4777576

Fax: (966-1) 4769775

 

Gulf Packaging System

Industrial City

PO Box: 2143

Jeddah 21451

Tel: (966-2) 6380735 / 6380736

 

Saudi Arabian Amiantit Co Ltd

PO Box: 1029

Riyadh 11431

Tel: (966-1) 4658665

 

Amar Line Maritime Co Ltd

Madinah Road

PO Box: 1689

Jeddah 21441

Tel: (966-2) 6510773

 

Al Rajhi & Al Sedais Co

Madinah Road

PO Box: 1597

Jeddah 21441

Tel: (966-2) 6511173

 

Al Rajhi Banking & Investment Corporation

Al Batha Street

PO Box: 242

Riyadh 11411

Tel: (966-1) 4032473 / 4054244

Fax: (966-1) 4035588

 

Saudi Ceramic Co

PO Box: 3893

Riyadh 11481

Tel: (966-1) 4770715 / 4880379

Fax: (966-1) 4782897

 

Arabian Gulf Manufacturers Limited (Gulfmaid)

Makkah Road, Kilo-7

Industrial City, Phase 5

PO Box: 2143

Jeddah 21451

Tel: (966-2) 6377944 / 6801416

Fax: (966-2) 6365445 / 6380540

 

Al Rajhi Commercial Foreign Exchange

Palestine Street

PO Box: 4514

Riyadh 21412

Tel: (966-1) 6700260

Fax: (966-1) 6716387

 

Al Rajhi Company for Industry & Trading

First Industrial Area

PO Box: 34138

Riyadh 11491

Tel: (966-1) 4470088 / 4466395

Fax: (966-1) 4489256

 

Al Rajhi Company for Agriculture Ltd

Prince Abdullah Street

Malaz

PO Box: 51764

Riyadh 11553

Tel: (966-1) 4763313 / 4768368

Fax: (966-1) 4768370

 

Gulf Packaging Industries Company Ltd

First Industrial City

PO Box: 8556

Dammam

Tel: (966-3) 8570044 / 8576063

Fax: (966-3) 8577345 / 8572903

 

Yanbu Cement Company

Madinah Road

PO Box: 5330

Jeddah 21422

Tel: (966-2) 6534588 / 6534584

 

International Spare Parts Trading & Manufacturing Co Ltd (Alaman)

Khorais Road

First Industrial City

PO Box: 51482

Riyadh

Tel: (966-1) 4486394 / 2318882

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 


Al Watania Plastic - 1010057929

 

Address:           Hail Street

Industrial Area No. II

PO Box: 10554

                        Riyadh 11443

                        Tel: (966-1) 2650054 / 2650036

                        Fax: (966-1) 2650905

                        Email: pla-mkt@wataniaind.com

 

Activities:          Al Watania Plastic operates a factory using local raw materials from Sabic to produce more than 55,000 tons of plastic products annually. The division specialises in the manufacture of plastic injection moulding and thermo forming products.

 

Management:    Shaker Aqil – Division Manager

                        Mostafa Hamdy – Commercial Manager

                        Ashook Kol – Purchasing Manager

 

National Factory for Foodstuff Production (Waha) - 1010148525

 

Address :          PO Box: 7769 & 4130

                        2nd Industrial Area

                        Riyadh 11491

                        Tel: (966-1) 4470088 / 2651525

                        Fax: (966-1) 4489256 / 2657489

                        Email: exp@wataniaind.com / alwaha@wataniaind.com

 

Activities :         This division was established in 1972 and has become one of the most important and productive factories for Al Watania. The factory is engaged in the production of assorted fruit juices and tomato paste.

 

Packaging is done using cans (170 ml, 190 ml, and 245 ml), bottles (200ml), and tetra pack (125 ml, 250 ml, and 1 litre).

 

Production capacity :   Fruit Juice - 40,000 cartons dai

                                 Tomato paste – 2,000,000 cartons per annum

 

Around 70% of production is absorbed by the local Saudi market, the remainder being exported to international markets.

 

The National Factory for Foodstuff Production became the first Saudi food-manufacturing factory to obtain the SASO quality mark because of the high quality of its products and its adherence to international specifications and hygiene standards.

 

Brand Names :  AL-WAHA and LOB

 

Riyadh Carton Factory - 1010148527

 

Address :          PO Box: 4130

                        Riyadh 11491

                        Tel: (966-1) 4463947 / 4470088

                        Fax: (966-1) 4481364 / 4489256

                        Email: exp@wataniaind.com

 

Activities :         A specialized packaging factory that supplies corrugated cartons to many engineering, food, agricultural and petrochemical industries.

 

Al Watania Blocks - 1010016690

 

Address :          PO Box: 10554

                        Riyadh 11443

                        Tel: (966-1) 4774244

                        Fax: (966-1) 4489256

 

Activities :         Was established in 1396H (1975) to serve many of the construction phases within the Kingdom and to supply the local market with high standard products.

 

Al Watania Containers – 1010148526

 

Address :          Old Industrial Area

                        Riyadh

                        Tel: (966-1) 4470088

                        Fax: (966-1) 4475028

 

Activities :         This division specialises in the manufacture of cans and containers.

 

Import Countries: Europe and the United States of America

 

Brand Names: CMC, WAHA, RCF and POPEYE

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,500 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 1,500,000,000                      SR 1,750,000,000

 

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

 

The above figures were provided by Mr Ali Salayana, Finance Manager

 

 


BANKERS

 

Al Rajhi Banking & Investment Corporation

PO Box: 28

Sitteen Street

Malaz District

Riyadh 11411

Tel: (966-1) 4054647 / 4054244

Fax: (966-1) 4044753 / 4052950 / 4037156

 

Arab National Bank (ANB)

King Faisal Street

North Morabbaa

PO Box: 56921

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027747

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     May 2002                      June 2004                     February 2008

Credit amount                            70,000                          100,000                         1,500,000

Amount overdue                         0                                  0                                  0

Payment terms                          30 days                         60 days                         120 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Euros                            US Dollars                     Euros

 

 

GENERAL COMMENTS

 

Al Watania For Industries Ltd has operations dating back to 1972 and is very well established in the local market. It operates through several divisions and all of subject’s factories are ISO 9002 certified.

 

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.62.38

UK Pound

1

Rs.102.15

Euro

1

Rs.85.29

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.