MIRA INFORM REPORT

 

 

Report Date :

18.01.2013

 

IDENTIFICATION DETAILS

 

Name :

PROCTER & GAMBLE INDUSTRIAL S.A.

 

 

Registered Office :

alle Altagracia, Edif. Procter & Gamble, Sector Sorokaima, Urb. La Trinidad Caracas Distrito Capital

 

 

Country :

Venezuela

 

 

Date of Incorporation :

19.06.1991

 

 

Legal Form :

Limited Partnership by Shares

 

 

Line of Business :

Production, commercialization, importation, purchase, sale of home cleaners, personal hygiene products, toiletries, over-the-counter medicines, chemicals, foodstuffs and industrial products in general.

 

 

No. of Employees :

About 1,500

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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)

Venezuela

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

VENEZUELA - ECONOMIC OVERVIEW

 

Venezuela remains highly dependent on oil revenues, which account for roughly 95% of export earnings, about 40% of federal budget revenues, and around 12% of GDP. Fueled by high oil prices, record government spending helped to boost GDP growth by 4.2% in 2011, after a sharp drop in oil prices caused an economic contraction in 2009-10. Government spending, minimum wage hikes, and improved access to domestic credit created an increase in consumption which combined with supply problems to cause higher inflation - roughly 28% in 2011. President Hugo CHAVEZ's efforts to increase the government's control of the economy by nationalizing firms in the agribusiness, financial, construction, oil, and steel sectors have hurt the private investment environment, reduced productive capacity, and slowed non-petroleum exports. In the first half of 2010 Venezuela faced the prospect of lengthy nationwide blackouts when its main hydroelectric power plant - which provides more than 35% of the country's electricity - nearly shut down. In May 2010, CHAVEZ closed the unofficial foreign exchange market - the "parallel market" - in an effort to stem inflation and slow the currency's depreciation. In June 2010, the government created the "Transaction System for Foreign Currency Denominated Securities" to replace the "parallel" market. In December 2010, CHAVEZ eliminated the dual exchange rate system and unified the exchange rate at 4.3 bolivars per dollar. In January 2011, CHAVEZ announced the second devaluation of the bolivar within twelve months. In December 2010, the National Assembly passed a package of five organic laws designed to complete the transformation of the Venezuelan economy in line with CHAVEZ's vision of 21st century socialism. In 2011, Venezuela continued to wrestle with a housing crisis, higher inflation, an electricity crisis, and rolling food and goods shortages - all of which were fallout from the government's unorthodox economic policies. The budget deficit reached around 5.2% of GDP in 2011, and public debt as a percent of GDP climbed steeply, despite record oil prices.

Source : CIA

 


IDENTIFICATION

 

CORRECT COMPANY NAME

PROCTER & GAMBLE INDUSTRIAL S.A.

TAXPAYER REGISTRATION

RIF J308109860

MAIN ADDRESS

Calle Altagracia, Edif. Procter & Gamble, Sector Sorokaima, Urb. La Trinidad

PROVINCE / DEPARTAMENT

Caracas

STATE / REGION

Distrito Capital

COUNTRY

VENEZUELA

TELEPHONE

(58212) 9036555 - 9036111

E-MAIL

andreazzi.m@pg.com

WEB

www.proctergamble.com

COMMENTS

At present the Company legal status is a Joint-Stock Company.

 

 

SUMMARY

 

Date of foundation

1991

Capital stock

Bs.F.2,701,390.= Bolivares Fuertes

Shareholders' equity

1,000,608,180.00 Bolívares Fuertes (30/062010)

Annual revenues

US$ 109,268,677.67 Bolívares Fuertes (30/062010)

Profits (loss)

-11,346,162.00 Bolívares Fuertes (30/062010)

permanent employees

About 1,500

Chief Executive

DUEŃAS VANIN, ALBERTO

Disposition

Report totally prepared by outside sources.

Payments policy

Without rating (No payment experience traced)

Credit (**)

Risk is Moderate. Within Average. Lightly Fair Situation.

 

 

LEGAL BACKGROUNDS

 

LEGAL STATUS

Limited Partnership by Shares

DATE OF INCORPORATION

19JUN1991

PLACE OF REGISTRY

Caracas - Registry of Companies II

DURATION

50 years

REGISTRATION

No.42, Volume 141-A. File 339.496

INITIAL CAPITAL

Bs.50,000,000.= Bolivares

CURRENT PAID-IN CAPITAL

Bs.F.2,701,390.= Bolivares Fuertes

LAST CAPITAL INCREASE

03.07.2001 (No.66, Volume 130-A)

SHAREHOLDERS EQUITY

1,000,608,180.00 Bolívares Fuertes (30/062010)

CLASS OF SHARES

Registered

LISTED AT STOCK EXCHANGE

No

SHARE VALUE

Bs.F. 10.= Bolivares Fuertes

CURRENT EXCHANGE RATE (US$)

BsF.4.30.= per USD1.00

COMMENTS

The Company was registered under the name INVERSIONES PROCTER & GAMBLE C.A.; on 02.09.1991, it changed its name to PROCTER & GAMBLE DE VENEZUELA C.A., under No. 67, Volume 115-A.

 

Subsequently, it changed again its name and its legal status from stock company (CA) to limited partnership by shares (S.C.A.)  dated 03.07.2001,under Number 66, Volume 130-A.

 

 

On 30/03/2006, the Company changed again its legal status from  limited partnership by shares (S.C.A. to joint-stock company (S.A.)

 

The capital stock has been increased as follows:

- Bs. 2,171,600,000, in December 1993

- Bs. 2,700,990,000, in January 1995

 

The Board of Directors was appointed on  25/09/2010.

 

In 2008, currency conversion came into effect in Venezuela, under which, three zeros are deleted from the old Bolívar (Bs.).

 

 

 

DIRECTORS - EXECUTIVES – SHAREHOLDERS

 

FULL NAMES / COMPANY NAME

TITLE

%PART.

SINCE

DUEŃAS VANIN, ALBERTO

President

 

 

ALFONZO LARRAIN LANDAEZ, CESAR RAFAEL

Director

 

 

LEON, LUIS ANTONIO

Director

 

 

BARREIDA LARRAURI, ESTIBABALITZ

Director

 

 

DE LLANO GONZALEZ, LUIS MANUEL

Director

 

 

VARELA BARCIA, MARIA VICTORIA

Director

 

 

PROCTER & GAMBLE DE VENEZUELA S.C.A.

Majority Shareholder (Parent Company)

100%

 

 

 

WHO IS WHO?

 

DUEŃAS VANIN, ALBERTO

NATIONALITY

Colombian

ID

CI 82182865

 

 

 

 

ALFONZO LARRAIN LANDAEZ, CESAR RAFAEL

NATIONALITY

Venezuelan

ID

CI 11309867

 

 

 

 

LEON, LUIS ANTONIO

NATIONALITY

Venezuelan

ID

CI 5740779

 

 

 

 

BARREIDA LARRAURI, ESTIBABALITZ

NATIONALITY

Venezuelan

ID

CI 16379451

 

 

 

 

DE LLANO GONZALEZ, LUIS MANUEL

NATIONALITY

Venezuelan

ID

CI 4355741

 

 

 

 

VARELA BARCIA, MARIA VICTORIA

NATIONALITY

Venezuelan

ID

CI 12385142

 

 

 

 

PROCTER & GAMBLE DE VENEZUELA S.C.A.

 

 

BUSINESS BACKGROUND

Limited Company by Shares. Entered in the Registry of Companies V of the City of Caracas, dated

11/05/2001.

 

 

BUSINESS HISTORY

 

Founders: Procter & Gamble de Venezuela C.A. (founded on 31.07.1950, under Nş 789. TAX ID RIF.J-00030031-

 

In December 1994, the Company merged INDUSTRIAS MAMMI C.A., effective as from January 1995.

 

In 1995, in line with strategic alliances plan of the Company, it acquired PRODUCTOS CRUZ VERDE C.A., and its product lines of home cleaners, cloth softeners, including the trademarks..

 

In August 1996 an alliance was attempted with S.C. JOHNSON DE VENEZUELA, for the Cruz Verde product line (floor wax), but which was objected by the Competition Superintendency, alleging the resulting entity would have 7 times more market participation than their nearest competitor.

 

In August 2000, it was agreed to establish a branch in the city of Porlamar, state of Nueva Esparta.

 

In July 2001, INVERSIONES INDUSTRIAS MAMMI S.C.A. transferred its shares to PROCTER & GAMBLE TENEDORA S.A.

 

In November 2002 it was agreed to pay Bs.58,054,739,304.= Bolívares to MAX FACTOR K.K. in virtue of transference of loan contract made by PROCTER & GAMBLE HOLDING S.R.L. to the Company.

 

On 30/06/2006, they agreed to merge the companies: Inversiones Procter & Gamble de Venezuela S.C.A., Inversiones Industrias Mammi S.C.A., Procter & Gamble Tenedora S.A., Procter & Gamble Valores S.A., Procter & Gamble Color 1 S.R.L.,  Inversiones Procter & Gamble de Venezuela 1 S.R.L., Inversiones Mammi 1 S.R.L. and  Procter & Gamble Industrial 1 S.R.L.;  under which the Company took over the assets and equity, chattels and estates, shares, names, trade names, relations, obligations, debts, commitments and rights of the merged companies.  Those companies are not liquidated but continue existing legally.

  

Until September 2007, the only shareholder was Procter & Gamble International Operations S.A. (Switzerland);  as from December 2008, the current shareholder appears.

 

The Company is part of global PROCTER & GAMBLE. In Venezuela, it is related to

                                                                                                                                                                                    

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

 

COMPANY NAME

COUNTRY

RELATION %

 

INVERSIONES INDUSTRIAS MAMMI C.A.

VENEZUELA

 

Related

INVERSIONES PROCTER & GAMBLE DE VENEZUELA S.C.A.

VENEZUELA

 

Related

PROCTER & GAMBLE INTERNATIONAL OPERATIONS LTD.

VENEZUELA

 

Related

PROCTER & GAMBLE SERVICIOS LATINOAMERICA S.C.A

VENEZUELA

 

Related

 

 

 

 

BUSINESS

 

Main activity

Production, commercialization, importation, purchase, sale of home cleaners, personal hygiene products, toiletries, over-the-counter medicines, chemicals, foodstuffs and industrial products in general.

 

The Company produces: Soaps, detergents, shampoo, cleansers, shoe polish,  toothpaste, diapers and women's sanitary pads, deodorants, among other.

It also is engaged in representation and/or distribution of manufacturers.

 

In Venezuela they are producing products such as sanitary napkins and disposable  diapers, while products such as soaps, shampoos, toothpaste they produced before, are now imported.

 

Trademarks: "ACE", "ARIEL", "BOLD 3", "PANTENE", "RINDEX", "HEAD & SHOULDERS", "DRENE", "CREST", "PAMPERS", "ALWAYS", "TESS", "NUTRISTAR", "SECRET", "DOWNY", "CAMAY",   "SAFEGUARD", "LAVA SAN", "MONCLER", "ALWAYS", "CHARMIN", "TAMPAX", "SWIFFER", among other.

Import

Yes

Country

Mexico, Colombia and Chile

Export

Yes

COUNTRY

The Caribbean, Colombia, Brazil, Peru, Mexico

% Credit SALES / Terms

100% 30 days

% Ventas exterior (Paises)

5%

% DOMESTIC PURCHASES

Yes

% FOREIGN PURCHASES

Yes

SELLING TerritorY

Domestic market: 95%

EMPLOYEES

About 1,500

LOCATION

OTHER PREMISES

Headquarters operate at the above address.

Roomy offices in modern facilities situated at commercial industrial area of the City.

 

The building was built in 1997, with an investment of US$46 million dollars.

 

Plant 1: Calle B-2 con Calle Divard, Zona Industrial, Barquisimeto, State of Lara.  Tel: (58 251) 69.2622.

 

Plant 2: Calle La Arenera Parcela Nş 2, Edificio Procter & Gamble, Parcela Nş2, Zona Industrial Las Delicias, Guatire, State of Miranda. Tel: (58 212) 340.3000. Own facilities.

Comments

In 1998, they cancelled the diaper line MAMMI, being replaced by PAMPERS at a cost of US$8 Million Dollars. Such brand accounted for the 60% of the sales of the Guatire plant.

 

 

 

FINANCIAL INFORMATION

 

Disposition

Report totally prepared by outside sources.

Information provided

The information contained in this report has been collected from outside sources as people at the Company were very reluctant to cooperate.

 

Through third-party sources we got main figures of the Balance Sheet for the FY as of June 30, 2010, compared with that of the previous period, latest available.

  

The Company is not entered into CADIVI as such but under the name Procter & Gamble de Venezuela S.C.A. (Parent Company).

  

 

BALANCE SHEET

Balance sheet date

30/062010

30JUN2009

 

 

Type of balance sheet

Annual

Annual

 

 

Period

12 months

12 months

 

 

Currency

Bolívares Fuertes

Bolívares Fuertes

 

 

Exchange rate per US$

4.3

2.15

 

 

A S S E T S

 

 

 

 

Cash/bank

84,912.00

42,440.00

 

 

Receivables

437,714,668.00

296,357,922.00

 

 

Inventory

13,458,028.00

7,289,253.00

 

 

Others

55,671,536.00

44,929,867.00

 

 

Current Assetsd

506,929,144.00

348,619,482.00

 

 

Fixed

809,465,122.00

589,906,931.00

 

 

Others

59,951,788.00

44,723,795.00

 

 

Total Assets

1,376,346,054.00

983,250,208.00

 

 

L I A B I L I T I E S

 

 

 

 

Bank/Suppliers

67,735,179.00

63,844,560.00

 

 

Others

83,835,759.00

27,189,184.00

 

 

Current liabilities

151,570,938.00

91,033,744.00

 

 

Long term

224,166,936.00

116,248,220.00

 

 

TOTAL LIABILITIES

375,737,874.00

207,281,964.00

 

 

S H A R E H O L D E R S'  E Q U I T Y

 

 

 

 

Capital

230,950,626.00

179,763,040.00

 

 

Reserves

23,605,053.00

17,976,537.00

 

 

Profits (Loss)

746,052,501.00

578,228,667.00

 

 

Total shareholders equity

1,000,608,180.00

775,968,244.00

 

 

Total Liab. / Sh. equity

1,376,346,054.00

983,250,208.00

 

 

Sales

469,855,314.00

338,641,673.00

 

 

Profit (Loss)

-11,346,162.00

-24,286,249.00

 

 

 

R A T I O

 

Liquidity ratio

3.34

Current assets / Current liabilities

Debt-to-equity ratio

660.16 %

(Shareholders' equity / Current liabilities %)

Profitability margin

-2.41 %

(Profits / Sales %)

Working capital

355,358,206.00

(Current assets - Current liabilities)

FINANCIAL SITUATION

A+: GOOD

Taking into account the last Financial Statement submitted and/or other factors analyzed, we believe that financial Situation of the Company is SATISFACTORY / GOOD due to the following considerations:

- Liquidity Ratio is higher or similar than industry average

- Positive working capital allows the Company to comply with payments promptly

- Shareholders' equity covers its current liabilities largely

- Though economic and financial results show negative results

 

 

 

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS


(Confidential Information)

TRADE REFERENCES

Supplier

Country

Comment

KATUNGA PRODUCCIONES C.A.

VENEZUELA

 

VENEFOIL

VENEZUELA

 

MEGA EMPAQUES

VENEZUELA

 

MINIGRIP

VENEZUELA

 

 

CREDIT HISTORY

The above suppliers reported to have dealt with Subject Company for 1 - 20 years.

In general, the Company has been granted credit lines between BsF.800,000, and BsF.1,000,000.=  Bolivares Fuertes. Packing and films are sold. PAYMENTS MADE ON TIME at 30 - 45 days in average.

 

BANKERS

Under privacy policy, the above bank refused to give information about the Company.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.64

UK Pound

1

Rs.87.45

Euro

1

Rs.72.65

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.