MIRA INFORM REPORT

 

 

Report Date :           

01.03.2013

 

IDENTIFICATION DETAILS

 

Name :

VISY PAPER PTY. LTD.

 

 

Formerly Known as:

SOUTHERN PAPER CONVERTERS PTY. LIMITED

 

 

Registered Office :

Level 11, 2 Southbank Boulevard, Southbank, Victoria, Zip/postal code 3006

 

 

Country :

Australia

 

 

Date of Incorporation :

07.04.1981

 

 

Com. Reg. No.:

005803234

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing and distribution of paper and provides recycling services.

 

 

No. of Employees :

9,000 employees (Visy Group)

 

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 :

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)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

 

Source : CIA

 


 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name :                          VISY PAPER PTY. LTD.

 

Other style / Business name :     VISY RECYCLING

 

Business address :                    13 Reo Crescent

Town :                                       Campbellfield

Province :                                  Victoria

Zip/postal code :                        3016

Country :                                   Australia

Tel :                                          +61 3 92474602

Fax :                                         +61 3 92474327

Email :                                      info@visy.com.au

Website :                                  www.visy.com.au

 

Registered address :                  Level 11, 2 Southbank Boulevard

Town :                                       Southbank

Province :                                  Victoria

Zip/postal code :                        3006

Country :                                   Australia

 

 

Summary details

 

Executive Summary

Date founded or registered :        07/04/1981

Legal form :                               Australian Proprietary Company

Chief executive :                        Jeanne Pratt

Issued & paid up capital :           AUD 2

Line of business :                       Manufacturing and distribution of paper and provides recycling services.

Staff employed :                         9,000 employees (Visy Group)

 

 

Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is undetermined

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted


Statutory details

 

Registry Data

Registration date :                      07/04/1981

Legal form : Australian                Proprietary Company

Registration no                          Australia Company Number: 005803234

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australian Business Number: 49984541896

Registry status :                        Live/Active

Previous name :                         SOUTHERN PAPER CONVERTERS PTY. LIMITED

LETCHWORTH PROPRIETARY LIMITED (initial)

Change of legal form :                 None reported.

 

 

Management / directors

 

Key Management

Name :                          Jeanne Pratt

Designation :                 Managing Director

 

 

Board of directors / other appointments

 

Appointments

Name :                          Jeanne Pratt

Designation :                 Director

Appointment date :         28/04/81

Address :                      94 Studley Park Road

Kew, VIC 3101

Australia

Biography :                    Born on 01-02-1936 in Lowicz, Poland.

 

Name :                          Anthony Joseph Pratt

Designation :                 Director

Appointment date :         01/02/11

Address :                      94 Studley Park Road

Kew, VIC 3101

Australia

Biography :                    Born on 11-04-1960 in Melbourne, Victoria, Australia.

 

Name :                          Robert Andrew Kaye

Designation :                 Company Secretary

Appointment date :         23/10/95

Address :                      14 Erskine Street

Armadale, VIC 3143

Australia

Biography :                    Born on 10-10-1960 in Melbourne, Victoria, Australia.

Staff employed : 9,000 employees (Visy Group)

Share capital

 

Composition

Authorized Capital :        AUD 2

No of shares :                2 Ordinary Shares

Share par value :            AUD 1

Issued capital :              AUD 2

Paid up capital :             AUD 2

 

 

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :        A.B.L. FINANCE PROPRIETARY LIMITED

Address :                      Level 21, 333 Collins Street

Melbourne, VIC 3000

Australia

No. of shares :               1 Ordinary Share

% of shares :                 50%

 

 

Shareholder name :        APPLEBAY PROPRIETARY LIMITED

Address :                      Level 10, 350 Collins Street

Melbourne, VIC 3000

Australia

No. of shares :               1 Ordinary Share

% of shares :                 50%

 

 

Related companies & corporate Affiliations

 

Structure

Name :                          A.B.L. FINANCE PROPRIETARY LIMITED

Affiliation type :              Shareholder

Address :                      Level 21, 333 Collins Street

Melbourne, VIC 3000

Australia

Name :                          APPLEBAY PROPRIETARY LIMITED

Affiliation type :              Shareholder

Address :                      Level 10, 350 Collins Street

Melbourne, VIC 3000

Australia


Name :                          PRATT CONSOLIDATED HOLDINGS PTY. LTD.

Affiliation type :              Associate

Address :                      Level 11, 2 Southbank Boulevard

Southbank, VIC 3006

Australia

 

Name :                          VISY PULP & PAPER PTY LTD

Affiliation type :              Associate

Address :                      13 Reo Crescent

Campbellfield, VIC 3061

Australia

Comments :                  Visy Pulp And Paper Pty., Ltd. produces recycled content packaging papers. It

offers recycled content paper and recycled content unbleached kraft paper. The

company was founded in 1980 and is based in Campbellfield, Australia.

 

 

Name :                          VISY INDUSTRIES HOLDINGS PTY LTD

Affiliation type :              Associate

Address :                      Level 11, 2 Southbank Boulevard

Southbank, VIC 3006

Australia

Comments :                  Visy Industries Holdings Pty. Ltd. provides recycling, packaging, and paper

solutions. It recycles papers, cardboards, liquid paper boards, and cartons, as

well as plastic, glass, aluminum, and steel food and beverage containers for

transport and storage, manufacturing, retailing, wholesaling, construction,

services, government, health and community services, and recreation and sports

businesses; and magazines, papers, letters, bottles, jars, tins, cardboards,

plastics, glasses, and steel and aluminum products for households. It offers

recycling services to schools; education tools, including Environmental Detective,

a curriculum based program to help teachers and students understand how each

product is recycled; and fiber board boxes, food and beverage cans, PET plastic

bottles, beverage cartons, food plastics packaging, and printed and plain

packaging solutions and services. It produces virgin kraft and recycled corrugated

papers for packaging and building industries; paper coating products for light

weight laminating applications, paperback book covers, plasterboard liners,

corrugated and folding cardboard boxes, and waxable boxes; paper laminates for

heavy weight boards; and case erectors, compactors, lidders, tray formers, and

packing systems. It offers print, packaging, and point of sale (POS) solutions,

such as specialty print and POS packaging solutions; premium litho and shelf

ready solutions, standard boxes, and specialty products; and temporary POS and

displays, semi permanent and permanent displays, high impact print for

promotion, and signage. It offers consulting, design and build, systems support,

training, project management, warehousing, fulfillment, and distribution services.

It sells and exports its products in Australia and internationally. Visy Industries

Holdings was founded in 1948 and is based in Southbank, Australia with locations

in Australia, New Zealand, North America, and Europe.

 

 

Name :              PRATT INDUSTRIES (USA), INC

Affiliation type : Associate

Address :          1800 C Sarasota Business Parkway NE

Conyers, GA 3001

United States

Comments :      Pratt Industries (USA), Inc. operates as a paper and packaging company in the

United States and Australia. It also operates paper mills, recycling facilities, and

sheet and box plants. In addition, the company offers corrugated products for

durable and non-durable goods, including lighting, electronics, glass,

telecommunications, automotive, pharmaceuticals, toys, sporting goods, wine and

spirits, vegetables, fruits, pizza, poultry, meats, and fish. Further, it offers

custom-made packaging solutions and services, such as protective packaging,

bulk boxes, triple wall, partitions, and technical services. Further more, the

company designs and manufactures display systems and packing machinery.

Pratt Industries (USA), Inc. was founded in 1948 and is headquartered in

Conyers, Georgia. It has additional locations in Conyers and East Point, Georgia;

Duncan, South Carolina; Raleigh and Charlotte, North California; Staten Island,

New York; Memphis, Humboldt, and Nashville, Tennessee; Mason, Springfield,

and Lewisburg, Ohio; Allendale, New Jersey; Grand Rapids, Michigan; Oklahoma

City, Oklahoma; Valparaiso, Indiana; Wichita, Kansas; Dallas, Texas; Kansas

City, Missouri; Wichita, Kansas; Bentonville, Arizona; Bessemer, Alabama; New

Orleans, Louisiana; and Ashland, Virginia.

 

Pratt Industries (USA)is the world's largest privately-owned manufacturer of paper

and packaging materials.

 

The company, which has plants in Australia, Mexico, and 20 states in the US

South, East, and Midwest, was founded in 1948 by Leon Pratt, the grandfather of

current chairman Anthony Pratt. Pratt Industries (USA) is controlled by

Australian-based Pratt family vehicle, Visy Industries.

 

Name :              VISYPAK OPERATIONS PTY. LTD.

Affiliation type : Associate

Address :          Level 11, 2 Southbank Boulevard

Southbank, VIC 3006

Australia

Comments :      Visypak Operations Pty Limited manufactures and markets paper packaging

products such as plastic films and sheets. The company is based in Melbourne,

Australia.

 

Name :              VISY INDUSTRIES AUSTRALIA PTY. LTD.

Affiliation type : Associate

Address :          Level 14, 600 St. Kilda Road

Melbourne, VIC

Australia

Comments :      Visy Industries Australia Pty Ltd. manufactures beverage packaging including

bottles, aluminum cans, and paper carton.

 

Name :              VISYPET (NZ) LIMITED

Affiliation type : Associate

Address :          235 Roscommon Road

Wiri, Manukau 2104

Auckland

New Zealand

 

Name :              PRATT FINANCE PTY LTD

Affiliation type : Associate

Address :          Level 11, 2 Southbank Boulevard

Southbank, VIC 3006

Australia

 

Related companies and corporate affiliations comments

Other companies of the Visy Group should be considered affiliated companies of the Subject.

 

 

Bank & mortgages

 

Bank Details

Name of bank :              National Australia Bank Limited

Address :                      Australia

Account details :            Current Account

 

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                  None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

financial data

 

Description

Comments :                  The Subject is classified as a small proprietary company by the Australian

Securities & Investments Commission hence is not required to disclose their

financial statement.

 

A proprietary company is defined as small for a financial year if it satisfies at least two of the following:

 

- The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million;

 

-The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and

 

-The company and any entities it controls have fewer than 50 employees at the end of the financial year.

 

Operation details

 

Main activities :              The Subject is engaged in manufacturing and distribution of paper.

In addition, the Subject provides of recycling services.

 

The Subject recycles paper and cardboard, glass, steel, aluminum and plastics.

 

Product & services :

- Paper

- Recycling services

- Recycled products such as glass, aluminium and paper packaging products.

 

Purchases

International : Singapore, China, Vietnam, Malaysia

 

 

Sales

Local :                                      Yes

 

International :                             Worldwide

 

Key events :                              24 November 2011

 

Visy Industries has plans for Asian trading company

 

VISY Industries is planning to make its biggest foray into Asia by setting up

a new trading company in the region to source equipment and supplies for

its factories and mills, generating annual savings of more than $100 million.

The $3 billion Visy group, controlled by the Pratt family, spends more than

$2bn each year on capital equipment, spare parts and other products, and

is seeking to import more products from Asia to take advantage of the high

Australian dollar.

 

The new company looks set to be based in Singapore, employing up to 30

local people and 10 expatriates initially to source products from China,

Vietnam, Malaysia and other Asian countries. Visy executive chairman

Anthony Pratt said he believed the trading company could also use Visy's

buying power to source products in Asia for other Australian firms,

especially its local customers.

 

"With the high Australian dollar you can either complain about how much it

is hurting you or get around the other side and start importing more from

overseas, at hopefully a good rate," Mr Pratt told The Australian.

 

"With or without any government incentives, the reason we are doing this is

so we can get among the best purchasing deals for Visy Australia in terms

of buying, and perhaps buying for other companies as well; they can get a

group-buy with us out of Asia."

 

Visy also currently sells 700,000 tonnes of paper overseas each year, so

basing a trading company in Asia will get the company's sales force closer

to its buyers. The move is Visy's biggest venture outside Australia. It has

purchasing and trading offices in Hong Kong and Shenzhen and packaging

operations in Vietnam and Malaysia.

 

But the Singapore move would be its most significant step into the region.

Mr Pratt also owns Pratt Industries, the sixth largest paper and packaging

business in the US, which was run by him for nearly two decades before he

took over as Visy executive chairman in 2009. Visy is also setting up its

own contracting business, called Build Run Repair, which will be an internal

team of at least 40 people charged with maintaining its portfolio of factories

and building its new waste-to-energy plants.

 

Mr Pratt said that by becoming the head contractor for its own projects,

Visy could generate cost savings on construction of as much as 40 per

cent. He said Pratt Industries' most recent paper mill in Shreveport,

Louisiana, cost $US170m to build compared with the same mill built by

Visy's competitor, which cost about $US500m. He hopes the company will also

eventually sell its services to third parties and be an essential part of his

clean-energy vision for Visy.

 

Visy is seeking federal government support to help bankroll a revolutionary

$300m project to turn household garbage into energy. The project would

see construction of a $200m waste-to-energy plant, the first of its type in

Australia, designed to generate 75 megawatts of electricity that would be

sold into the electricity grid or directly to third parties.

 

Mr Pratt also hopes BRR will provide a platform for Visy to employ more

engineers after claiming earlier this year that "climate change can be

solved by engineers". At present the group employs about 800 engineers.

Mr Pratt recently visited Swinburne University in Melbourne to discuss his

plans. He will do the same at Monash University before the end of the year.

"The BRR concept will be exciting. It will give engineers an opportunity," he

said. The combined sales of Visy and Pratt Industries exceed $3.5bn a

year and Mr Pratt wanted to see the group's combined sales rise to $5bn

by 2015. He said that while the high Australian dollar had an impact on the

group's profits in the past year, earnings were still up 20 per cent over the

year. "We have been fortunate that commodity prices have pretty much

gone up in line so to date it has been pretty much in line," Mr Pratt said.

Trading conditions were still "pretty good" despite the downturn in the retail

sector.

 

"Our business is 70 per cent food customers so it has been pretty stable.

We obviously want them to be successful.

 

"So far commodity prices have been pretty good. "I am glad that fortunately

our customers have continued to do well." Earlier this year the group

signed a 10-year, $1.5bn contract with Japanese drinks giant Asahi across

10 years. The contract underpinned Visy's decision in September to

proceed with a $86m beverage can manufacturing plant near Stapylton on

the Gold Coast. It is the first drink canning manufacturing plant to be built in

Australia for 20 years.

 

Visy is also moving into the smaller end of the corrugated box market,

earmarking tens of millions of dollars to expand its product range. This will

pit it against Raphael Geminder, Mr Pratt's brother-in-law, who owns the

 

 

Summarized country risk

 

Central bank                                          :   Reserve Bank of Australia

Reserve of foreign exchange & gold         :   US$ 43.879 billion

Gross domestic product – GDP               :   US$ 1.586 trillion

 

GPP (Purchasing power parity)               :   954.296 billion of International dollars

 

GDP per capita - current prices               :   US$ 68,916

 

GDP - composition by sector                  :   agriculture: 4% industry: 25.6% services: 70.4%

 

Inflation :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

 

Unemployment rate                                2009: 5.6 %

2010: 5.2 %

2011:5.1 %

 

Public debt

(General Government gross

debt as a % GDP)                                  2009:  16.9%

2010:  20.4%

2011:    22.9 %

 

Government bond ratings                        Standard & Poor's: AAA-/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares      US$ 1.258 trillion

 

Largest companies in the country            Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac

Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

 

Total exports                                         US$210.7 billion

 

Exports commodities                             coal, iron ore, gold, meat, wool, alumina, wheat

 

Total imports                                         US$187.2 billion

 

Imports commodities                             machinery and transport equipment, computers and office machines, telecommunication equipment and parts, crude oil and petroleum products

 

Export - major partners                           Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

 

Import - major partners                           China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany

5.2%, UK 4.3%, Thailand 4.2%

 

FDI Inflows                                            2009: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

 

 

 

FDI Outflows                                                                          2008: US$33,604 million

2009: US$ 16,160 million

2010: US$26,431 million

 

 

Best countries for doing business           :   10 out of 183 countries

Global competitiveness ranking               :   20 (ranking by country on a basis of 142, the first is the best)

 

 

Country and Population Overview

Total population                                    : 22.23 million

Total area                                             : 7,692,024 km2

Capital                                                 :  Canberra

Currency                                                                                                      :   Australian Dollars (AUD)

Internet users as % of total population     : 76%

 

 

Payment history

 

Purchase Term

Local :                          Prepayment, Bank transfer, D/P, Credit 30-90 days

International :                 L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-90 days

 

Sales Term

Local :                          Prepayment, Bank transfer, D/P, Credit 30-90 days

International :                 L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-90 days

 

Trade Reference/ Payment Behaviour

Comments :                  As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources :                      Interviews and material provided by the Subject


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.82

UK Pound

1

Rs.82.72

Euro

1

Rs.71.27

 

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%)

 

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