MIRA INFORM REPORT

 

 

Report Date :

29.05.2013

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL FOOD COMPANY

 

 

Registered Office :

Street No. 412, Block F2 (9/7), Jeddah Industrial City, Phase 4, P O Box 51048, Jeddah 21543

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.12.1991

 

 

Com. Reg. No.:

4030084006, Jeddah

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject operates through several divisions includes:-

·         Meat Division

·         Cake Division

·         Restaurant Division

 

 

No. of Employees :

380

 

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 :

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 – 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                                    : NATIONAL FOOD COMPANY

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Joint Stock Company

Registration Date                                  : 16th December 1991

Commercial Registration Number           : 4030084006, Jeddah

Membership Number                             : 39612

Issued Capital                                       : SR 30,000,000

Paid up Capital                                     : SR 30,000,000

Total Workforce                                     : 380

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

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Oraby, Export Manager


COMPANY NAME

 

NATIONAL FOOD COMPANY

 

 

cOMPANY ADDRESS

 

Registered & Physical Address

Street               : Street No. 412, Block F2 (9/7)

Area                 : Jeddah Industrial City, Phase 4

PO Box            : 51048

Town                : Jeddah 21543

Country             : Saudi Arabia

Telephone         : (966-2) 6374747 / 6378115 / 6080684 / 6080669 / 6081220 / 29 / 37

Facsimile          : (966-2) 6371073 / 6081259

Email                : info@americanameat.com / m.oraby@americanafoods.com

 

Premises

Subject operates from a large suite of offices, a factory and storage facilities that are rented and located in the Industrial Area of Jeddah.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Thomson Building                                                                             Office and sales outlet

King Khalid Street, Cross 8/7

PO Box: 2192

Al Khobar 31952

Tel: (966-3) 8645162

Fax: (966-3) 8640351

 

·       Qassim Industrial Area                                                                      Office and sales outlet

Qassim

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

·       Marzouk Al Kharafi                                                                            Chairman

·       Bader Mohamed Al Jouan                                                                 Vice Chairman

·       Hussein Ali Hussein Shoboshki                                                         Director

·       Abdul Rahman Al Modakha                                                               Director

·       Fahad Hussein Shoboshki                                                                 Director

·       Mohamed Mahrous                                                                           General Manager

·       Alan Withal                                                                                       Assistant General Manager

 

·       Faraj Al Sayed                                                                                  Finance Manager

·       Ahmed Samir                                                                                   Marketing Manager

·       Mohamed M Al Najar                                                                        Sales Manager

·       Ahmed Samir                                                                                   Manager – Meat Division

·       Alaa Awara                                                                                       Manager – Cake Division

·       Mohamed Oraby                                                                               Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10/06/1412 Hijri (corresponding to 16th December 1991)

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 4030084006, Jeddah

 

Membership No.           : 39612

 

Issued Capital              : SR 30,000,000

 

Paid up Capital            : SR 30,000,000

 

Name of Shareholder (s)                                                          Percentage

 

·       Kuwait Food Co SAK (AMERICANA)                                          98%

Block 198, Street 71

Shuwaikh Industrial Area

PO Box: 5087

Safat 13051

Kuwait

Tel: (965) 24815900 / 24815134 / 24735476

Fax: (965) 24846925 / 24815914 / 24338464

 

·       United Food Co                                                                           2%

Shobokshi Building

Shobokshi Street

Al Hamra

PO Box: 5470

Jeddah

Saudi Arabia

Tel: (966-2) 6600446

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Americana Group of companies, which consists of the following concerns:

 

·       National Restaurants Company Ltd

PO Box: 4889

Riyadh 11412

Tel: (966-1) 4770206

 

·       National Meat Plant Co

PO Box: 7889

Riyadh 11472

Saudi Arabia

Tel: (966-1) 4770206

Fax: (966-1) 4762090

 

·       Al Ahlia Restaurant Co

PO Box: 8030

Jeddah 21482

     Saudi Arabia

     Tel: (966-2) 6520073

     Fax: (966-2) 6520148

 

·       International Fashion Co

Souk El Souf

PO Box: 11649

     Jeddah 21463

     Saudi Arabia

     Tel: (966-2) 6613108

 

·       Qatar Foodstuff Co

PO Box: 4548

Doha

Qatar

Tel: (974) 44423102

Fax: (974) 44425982

 

·       Kuwait Food Co (Americana)

PO Box: 6844

Sharjah

United Arab Emirates

Tel: (971-6) 5593614

Fax: (971-6) 5594302

 

·       Gulf Mineral Water & Processing Industries Co Ltd

PO Box: 929

Ajman

     United Arab Emirates

     Tel: (971-6) 7421800

     Fax: (971-6) 7446394

 

·       Arab Gulf Co for Food & Supermarkets

Fawamiah

     PO Box: 23828

     Safat

     Kuwait

     Tel: (965) 24340048

     Fax: (965) 24338933

 

·       Hardee’s

PO Box: 6629

Qurum

Oman

Tel: (968) 24564642

Fax: (968) 24564246

 

·       Bahrain & Kuwait Restaurant Co

PO Box: 20464

Manama

     Bahrain

     Tel: (973-17) 262998

     Fax: (973-17) 272883

 

·       Saba Poultry Co

PO Box: 891

Sana’a

     Yemen

     Tel: (967-1) 203695

 

·       Cairo Poultry Co

23 Mourad Street

Giza

Cairo

     Egypt

     Tel: (20-2) 25730859 / 25715905

     Fax: (20-2) 25738548

 

·       Egyptian Co for International Touristic Projects

47 El Batal Ahmed Abdelaziz Street

Mohandessin

Cairo

     Egypt

     Tel: (20-2) 33469719

     Fax: (20-2) 33011578

 

·       Tourist Projects & International Restaurants Co Ltd

PO Box: 950584

Amman 11195

     Jordan

     Tel: (962-6) 5693759

     Fax: (962-6) 5681110

 

·       Kuwait Food Co

Cairo

     Egypt

 

·       Kuwait Food Co

Sana’a

     Yemen

 

 

OPERATIONS

 

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

 

·       Meat Division

 

     Processors and wholesalers of fresh and frozen meat, as well as providing cold storage facilities.

 

·       Cake Division

 

This division specialises in the production of bread and cakes such as fruit cakes and sponge cakes, but also produces biscuits, crackers, crisps, savoury snacks potato powder and fruit juices.

 

·       Restaurant Division

 

Subject also operates a number of restaurants, cafeterias and burger bars throughout Saudi Arabia including the following :

 

     -  KENTUCKY FRIED CHICKEN

     -  CHICKEN TIKKA

     -  HARDEE’S

 

Import Countries: Subject imports products from around the world, particularly from Europe and the United States of America

 

Brand Names: AMERICANA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 380 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 Revenue                           SR 100,000,000             SR 103,750,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

BANKERS

 

·       National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-2) 6434777

Fax: (966-2) 6441686

 

·       Al Bank Al Saudi Al Hollandi

Bamehriz Centre

Al Mina Street

PO Box: 67

Jeddah 21411

Tel: (966-2) 6481222

 

·       Riyad Bank

Prince Fahad Street

PO Box: 9324

Jeddah 21413

Tel: (966-2) 6513333

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

National Food Company is well established in the local business market with operations dating back to 1990. The company operates several divisions, specialising in meat products, cakes and snack food, and restaurant management.

 

The company is 98 percent owned by Kuwait Food Co SAK (AMERICANA) which is financially strong with operations covering many countries in the Middle East region.

 

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.55.74

UK Pound

1

Rs.84.17

Euro

1

Rs.72.03

 

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%)

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.