MIRA INFORM REPORT

 

 

Report Date :

30.01.2013

 

IDENTIFICATION DETAILS

 

Name :

EMZOR PHARMACEUTICAL INDUSTRIES LIMITED

 

 

Registered Office :

8/10A, Broad Street, Lagos Island, Lagos State

 

 

Country :

Nigeria

 

 

Date of Incorporation :

04.04.1984

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing of Pharmaceutical/Healthcare Products.

 

 

No. of Employees :

About 500

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

nigeria - ECONOMIC OVERVIEW

 

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-11 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

 

Source : CIA

OPERATIONS

 

The company is engages in Manufacturing of Pharmaceutical/Healthcare Products.

 

 

COMPANY LOCATION

 

The company is located at Plot 3C, Block A, Aswani Market Road, Oshodi/Apapa Expressway, Oshodi, Lagos State, Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                 EMZOR PHARMACEUTICAL INDUSTRIES LIMITED

REGISTERED NAME:                            EMZOR PHARMACEUTICAL INDUSTRIES LIMITED

SECTOR:                                              PHARMACEUTICALS

LOCAL NAME:                                      EMZOR PHARMACEUTICAL INDUSTRIES LIMITED

REGISTERED ADDRESS:                      8/10A, Broad Street, Lagos Island, Lagos State, Nigeria

HEAD OFFICE ADDRESS:                     Plot 3C, Block A, Aswani Market Road, Oshodi/Apapa

Expressway, Oshodi, Lagos State, Nigeria

POSTAL ADDRESS:                             P.O. Box 1575, Oshodi, Lagos State, Nigeria

TELEPHONE:                                        234-1-7763863, 4523570, 4523724, 4527160, 8105555

FAX:                                                     234-1-4525288, 4525160

MOBILE:                                               234-802-312-7421

E-MAIL:                                                customerservice@emzorpharma.com, info@emzorpharma.com   

WEBSITE:                                            www.emzorpharma.com

PRIMARY CONTACT:                            Mrs. Stella Chinyelu Okoli, MON (Managing Director/CEO)

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N150 to 1 US $.

  

 

 

SUMMARY

 

NATURE OF PREMISES:           Owned office space approximately 1,500 square meters

DATE INCORPORATED:            4th April, 1984

YEAR BEGAN OPERATIONS:    1985

LEGAL FORM:                          Private Limited Company

REGISTRATION NO:                 RC: 61894

SHARE CAPITAL:                     1,000,000,000.00

ISSUED CAPITAL:                    2,605,000.00

PAID-UP CAPITAL:                   2,605,000.00

VAT NUMBER:                          7217061894

STAFF STRENGHT:                  About 500

 

 

OWNERSHIP/SHAREHOLDING STRUCTURE

 

John Agboola Odeyemi                                                                                                  

Plot 10, Block B, Osolo Expressway, Isolo, Lagos State, Nigeria

 

Onyemachi Micah Onyeibor                               

33, Lawrence Daniels Close, Ajao Estate, Lagos State, Nigeria

 

Okoli Stella Chinyelu

1, Fola Agoro Streeet, Abule –Ijesha, Yaba, Lagos State, Nigeria

 

Uzodike Emmanuel

1, Oyewole Oshodi Street, Ilupeju, Lagos State, Nigeria

 

Okoli Christopher Jnr

16, Oketie Eboh Street, Ikoyi, Lagos State, Nigeria

 

Ezeoke Uzoma Gloria

16, Oketie Eboh Street, Ikoyi, Lagos State, Nigeria

 

Okoro Nkeiru

Plot 3C, Block A, Aswani Market Road, Isolo, Lagos State, Nigeria

 

 

DIRECTORS  

                                                                                               

John Agboola Odeyemi

Onyemachi Micah Onyeibor

Okoli Stella Chinyelu

Uzodike Emmanuel

Okoli Christopher Jnr.

Ezeoke Uzoma Gloria

Okoro Nkeiru

 

 

KEY MANAGEMENT PROFILE

 

MRS. STELLA CHINYELU OKOLI (OON) FOUNDER, MD/CEO     -           FOUNDER

Dr. Okoli has a B. Pharm (Hons.) degree from Bradford University (1969), M.Sc. Biopharmaceutics, University of London – Chelsea College (1971), and attended Executive Management programs of the Harvard Business School, Boston, USA, for owner-managers 1997-1999. She also attended the Chief Executive Management program of the Lagos Business School as well as IESE Barcelona.

 

She has attended numerous strategic management courses both in Nigeria and overseas. Has over 27 years of experience as a practicing/manufacturing pharmacist. She has held several professional leadership positions which include Chairman of the Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria, Member, Economic Summit of Nigeria, and Member, Health Matters Advisory Board of Nigeria.

 

She has received various national and international recognitions, which include Member of the Order of the Niger (MON), Fellow Pharmaceutical Society of Nigeria, Outstanding Service Award, Rotary International 21000, and ECOWAS International Gold Award. She is committed to local manufacturing of pharmaceuticals with her able team of highly trained, competent and motivated managers and staffs. She recently bagged the International Women Entrepreneurial Challenge, IWEC Award. She mentors other local manufacturers and encourages aspiring entrepreneurs to invest in the pharmaceutical industry first, as her contribution to building a healthy nation and second, in pursuit of Nigeria’s quest for self sufficiency

 

 

BACKGROUND

 

Emzor Pharmaceutical Industries Limited was incorporated on 4th April, 1984 with Registration Number (RC: 61894) with 1,000,000,000.00 share capital. The corporate head office/factory is located at Plot 3C, Block A, Aswani Market Road, Oshodi/Apapa Expressway, Oshodi, Lagos State, Nigeria. The premises is located on 2.5 acres of land in the Isolo industrial area of Lagos with facilities to make a wide variety of high quality pharmaceutical products that meet international standards at affordable and competitive prices. The factory is registered with the Federal Ministry of Health under the supervision of Mrs. Stella Okoli, the superintendent pharmacist, Managing Director and Chief Executive Officer.

 

Emzor Pharmaceutical Industries Limited is a wholly private indigenous pharmaceutical manufacturing company incorporated in Nigeria in 1984 for the purpose of manufacturing high quality pharmaceutical products and medical consumables. Its holding company, Emzor Chemists Limited opened for retail business in January 1977 at number 1 Fola Agoro Street, Abule Ijesha, Yaba, Lagos State, Nigeria.

 

The rapid growth of the retail business encouraged Emzor Chemists Limited to venture into the importation and wholesale of assorted pharmaceuticals. The idea to manufacture locally came later and this was predicated on the need to develop local capability, create jobs and provide high quality pharmaceutical products and services to the Nigerian people at prices that are not only affordable but represent value.

 

Emzor Pharmaceutical Industries Limited started pilot production in 1985. By 1988 it had become an established pharmaceutical manufacturing company especially with the introduction of Emzor Paracetamol. The then secretary of Health to the Interim National Government Dr. Christopher Okojie officially commissioned the company in July 1993. The company has since attracted foreign missions, scholars, and students of pharmacy, microbiology and chemistry. In April 1999, Prof. Debo Adeyemi, the Honorable Minister of Health, commissioned the factory extension.  From the humble beginning of four (4) products lines in 1987, they now manufacture in their factory a large range of over fifty (50) products in the analgesic, anti-malaria, vitamin/haematinics/multivitamin supplement, anti-helmintic, antibiotics and therapeutic class.

 

Today, Emzor has become a household name in Nigeria and a leader in the pharmaceutical market known for quality products at prices that offer real value. Emzor Pharma markets a wide range of over-the-counter medicine and generic products, these products are widely distributed throughout Nigeria and the West African coast. The company’s commitment is to produce and deliver flawless products on time and every time.  The company manufactures a range of over fifty (50) products in the analgesic, anti-malaria, vitamin/haematinics/multivitamin supplement, anti-helmintic, antibiotics and therapeutic class and one of the best recognized and well known pharmaceutical company in Nigeria. As the leading indigenous manufacturer in Nigeria, the company continues to expand the Emzor Pharma portfolio through identifying consumer need for innovative products and conducting ongoing research.

 

During our visit to the company, the front desk officer confirmed the company’s line of business but refused to disclose his name. Meanwhile, business activities was ongoing as the company’s products were seen in posters and almanac at the reception, some products were parked in cartons while trucks and other vehicles with the company’s name boldly written on them were also sighted in the premises.

 

Note:    The Company increased its Share Capital from 150,000,000.00 to 1,000,000,000.00 on 28th February, 2007 and paid its Statutory Annual Returns till 2010.

 

Conclusion: Based on our physical visit, available information and brief discussion with the receptionist, we are of the opinion that the company is legitimate in business and a legal entity. As such, any business relationship with the company should be mutually beneficial.

 

 

AWARDS RECEIVED

 

Best Indigenous (Nigeria) Pharmaceutical Manufacturer (Board of Fellows of Pharmaceutical Society of Nigeria).

Pan Africa (PABHA) Best Award Winner on Entrepreneurial Business (Pan African Broadcasting House Association).

Most Admired Nigerian Pharmaceutical Company (Chartered Institute of Marketing in Nigeria).

West African Best Technology Driven Pharmaceutical Company (African Infotechs Award).

Distinguished Florence Nightingale Partnership Award (National Association of Nigeria Nurses and Midwives).

Outstanding Indigenous Entrepreneur (Pharmanews).

Appreciation awards from Handicapped Affairs Association of Nigeria, Pharmaceutical Society of Nigeria and Association of Lady Pharmacists.

 

 

CLIENTS

 

Bonitas Pharm:                        Aba 12 Lock Up Shop Medicine Line Ariaria Market Aba

Eugo Pharm Nig Ltd:               Medicine Line Ariaria Market Aba

Jecco Pharm:                          Medicine Line Ariaria Market Aba

Sterbert Pharm:                       B Line No. 42/43 Ariaria Int'l Mkt Aba.

Ablaze Pharmacy:                   113, Abak Road Uyo Akwa Ibom

New Health Pharm:                 2, Garki - Suleja Rd. Gwagwa. Abuja

Gio Supreme Pharm:               1 Oba Mkt Rd, Benin City

Mentus Pharm:                        8 Ikpoba Hill Oregbeni Benin City

Aguata Pharm:                                    82 Obiagu Rd. Ogui Rd. Enugu.

Cinemec Pharm:                      108,Ogui Road, Opp National Stadium, Enugu

Daisy Pharmacy:                      49, Ziks Avenue, Uwani, Enugu

Fontana Pharmacy:                 83,  Ibadan Rd. Ijebu Ode

Tony Pharm:                            6A, Galadima Road, S/geri, Kano

Atsi Pharm:                              52, James Robertson Street, Surulere, Lagos

Blessing Pharm:                      4, Atin Str. Idumota, Lagos

Caefam Px:                              3, Moses Adebayo Steet, Ojodu, Ikeja.

Charity Nwaizu Commercial Stores: 71, Capitol Road Agege, Lagos

Di Maggio Pharm:                    8, Egbe Road, Ikotun, Lagos.

Frankcy Pharm:                       8, Dele Okuwa Street, Ketu, Lagos

His Grace:                                67, Boundary Road, Shasha , Lagos

Merced Pharm:                                    27, Sadiku Street, Olodi Apapa, Lagos

Royale Pharm & Stores:          Idumota, Lagos

Some Pharmacy & Stores Ltd: Idumota Lagos

Sood And Jin                           190/192, Ikorodu Road, Palmgroove, Lagos

Think Ethernity                        67, Idimu Road, Egbeda Bustop, Lagos.

Olex Pharmacy                        Opp Midlad Plaza Maraba, Nassarawa

Austen Ola:                              3, Onitsha Owerri Road, Onitsha

Benox Pharmacy:                    5, Ilorin Street, Fegge, Onitsha

Jerico Pharm Osha:                 9 Ezinifite Street, Omagba ,Onitsha

Junno:                                     Bridge Head ,Onitsha

Kezi Pharm Osha:                    3, Central School Road, Onitsha

Meluchem Pharm Osha:          29,  Oduwanu Street, Fegge, Onitsha

New Camou:                            8, Benjamin Lane ,Onitsha

Selak Pharm:                           101, Onitsha Road, Nnewi

Wisdom King Pharm:               114, Ahmadu Bello Way, Sokoto

Obiak Pharmacy:                     Edewor Shopping Complex, Effurun Sapele Road ,Effurun

 

 

BRANCHES

 

Aba:                                         C/O MDS, #8 Factory Road, Aba State, Nigeria

Abakaliki:                                101, Ogoja Road, Abakalilki, Ebonyi State, Nigeria

Abuja:                                      MDS Abuja Depot, Idu industrial layout, Opposite Julius Berger. Idu, Abuja

Abuja:                                      EMAB plaza, shops 5& 6 , 751, Aminu Kano crescent, Wuse II . Abuja, FCT

Akure:                                      16, Ado Owo Road, Beside Oceanic Bank Akur., Ondo State, Nigeria

Benin:                                      UAC of Nig. Benin Depot, 71, Apkakava Street, Benin City, Edo State, Nigeria

Gombe:                                    New Commercial Area, Beside Pepsi Depot, Gombe State, Nigeria

Ibadan:                                                C/O MDS, 1, Magazine Road, Dugbe, Ibadan, Oyo State, Nigeria

Jalingo:                                   Miyapet plaza, 136, Hammaruwa Way, Opposite Investment Quarters, Jalingo

Jos:                                          C/O MDS 28,Muritala Mohammed way Jos.

Kaduna:                                   1-4, Ahmadu Bello Way, Kaduna State, Nigeria

Kano:                                       C/O MDS 33-34, Niger Street Kano, Kano State, Nigeria

Lagos:                                      8, Egbe Rd. Ikotun, Lagos State, Nigeria

Lagos:                                      57/59, Osolo Way, Isolo, Lagos State, Nigeria

Lagos:                                      9, Victor Fagbemi Street, Iyana Ipaja, Lagos State, Nigeria

Lagos:                                      190/192, Ikorodu Road, Palmgrove, Lagos  State, Nigeria

Maiduguri:                               10, Nta Road, Maiduguri, Borno State, Nigeria

Makurdi:                                  7, New Bridge Road, Beside Diamond Bank, Wukurum, Makurdi, Benue State

Ogun:                                       83, Ibadan Road, Ijebu 0de, Ogun State , Nigeria

Onitsha:                                   C/O MDS Depot, 5, Niger Bridge Road, Industrial Layout, Onitsha, Anambra

State, Nigeria

Owerri:                                    Depot 18, Old Market Road, Off Douglas Road, Owerri, Imo State, Nigeria

Sokoto:                                    57, Aliyu Jodi Road, Sokoto State, Nigeria

Warri:                                      Edewor Shopping Complex, Effurun, Warri, Rivers State, Nigeria

Yola:                                        1, Zaranda Street, Jimeta, Yola, Adamawa State, Nigeria

India:                                       Emzor Exports, A/503, Wall Street, 11 Nr. Gujarat, Collage Ellisbridge

Ahmedabad, 380006, Gujarat, (Tel:+9107926447653 Fax: 30041386, 30041387)

Liberia:                                    Emzor Liberia Ltd, Gurley Street, Off Benson Street, Central Monrovia (Tel:

2316757265)

 

 

HOLDING COMPANY

 

Emzor Chemist Limited

 

 

SUBSIDIARIES

 

Frontwave Limited

Zolon healthcare

Emzor Hesco

 

 

PRODUCTS

 

Vitamins/Dietary Products

Analgesics/anti-inflammatory

Antibiotics

Antimalaria

Haematinics

Cough Syrup

 

VALUES

 

Commitment

Passion

Energy

Excellence

Character

 

 

MISSION

 

Have an unwavering commitment to provide its customers with healthcare products and services of consistently high quality, made readily available at prices which create value for all stakeholders. They continuously develop and reward people of integrity who subscribe to hard work and creativity as a means of achieving individual and corporate excellence.

 

 

VISION

 

“To be the leading healthcare company in Africa through the provision of world-class products and services”

 

 

TYPES OF CUSTOMERS

 

General Public

Group of Companies

Chemists

Private hospitals

Government hospitals

Hotels

Pharmaceutical companies

Wholesalers

Retailers among others

 

 

PERFORMANCE RANKING

 

* Quality of Management:          GOOD

* Ethics & Integrity:                     GOOD

* Ownership Structure:               GOOD

 

 

FINANCES

 

The company’s Audited Accounts was not available as at the time of compiling this report. However, we advise that the maximum credit limit to be accorded to the company could be put at 400million US dollars ($400m USD). This opinion is as a result of the company’s performance in the telecommunication industry in Nigeria and also, it is among the top major fast growing companies in Africa.

 

 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

The Pharmaceutical industry is very important to the economy of every country. Pharmaceuticals products, especially drugs, are so priceless that no nation can survive without them and every serious-minded government pays great attention to drugs. Drugs are so important that the World Health organization (WHO) recommends a National Drug Policy for every country. Nigeria’s pharmaceutical market is large, considering the size of the population growth, it is likely to increase speedily in the coming years, because the country has a huge potential. Aside from being Africa’s most populous nation, there is an entrepreneurial ethic in the country, which could help the pharmaceutical sector develop rapidly.

Nevertheless, the national health system still suffers from low level of funding and total per capita healthcare expenditure is well below US$10.

 

Arguably, the key problem facing the sector is the scourge of counterfeit drugs, which account for approximately half of all drug sales in the country. Fake and counterfeit drugs kill thousands of people each year, also undermine the local manufacturing sector, and deter multinationals. However, the National Agency for Food and Drug Administration and Control (NAFDAC) is fighting to stem the illicit trade, also conducted 15, 697 raids between 2001 and 2006. Although this has had an impact, the trade continues unabated, due to high demand for affordable treatments. Nonetheless, the activities of NAFDAC has greatly encouraged more indigenous players in this sector.

 

Despite the apparent growth in the number of indigenous players in the industry, there remains the fact that no company has set up a basic active raw material manufacturing plant in Nigeria, not even for Paracetamol or Aspirin. The Pharmaceutical industry is greatly challenged in this regard.

The amendment of the Essential Drug List (EDL) decree restricting the application only to public health institutions was the first tonic to the industry. With the amendment to this decree, companies were able to expand their product base, resuscitate abandoned product lines, and increase their volume, turnover and profit margins. Industries were able to source their raw materials and equipment, free from encumbrances. This was of great benefit.

The abolition of Value Added Tax (VAT) on pharmaceutical raw materials, coupled with the reduction of tariff on raw materials and equipment by the Nigerian government have greatly encouraged the pharmaceutical industry.

NAFDAC’s differential tariff and its war against fake drugs are now creating a boom for the pharmaceutical industry. Presently, there more than eighty-six (86) local pharmaceutical manufacturing companies producing only about 30% of Nigeria’s drug need.

 

This sector of the economy has great potentials for intending investors.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism)

 

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs Administration and Control (NAFDAC), Independent Corrupt Practices and other related offences Commission (ICPC) Etc.

 

No negative information on subject from the above agencies.

 

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on the company, our investigations revealed that Emzor Pharmaceutical Industries is duly registered in Nigeria with a registered address located at 8/10A, Broad Street, Lagos Island, Lagos State, Nigeria, while its operational address is located at Plot 3C, Block A, Aswani Market Road, Oshodi/Apapa Expressway, Oshodi, Lagos State, Nigeria.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.70

UK Pound

1

Rs.84.35

Euro

1

Rs.72.21

 

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.