|
Report Date : |
12.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
AL MARAI TRADING COMPANY LTD |
|
|
|
|
Registered Office : |
Al Marai
Building, Exit 7, North Circle Road, Al Izdihar District, P
O Box 8524, Riyadh 11492 |
|
|
|
|
Country : |
Saudi Arabia |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Year of Establishments: |
1975 |
|
|
|
|
Com. Reg. No.: |
1010084223, Riyadh |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
production and marketing of dairy products, butter, cheese,
milk, fruit juices, cream, UHT milk and evaporated milk |
|
|
|
|
No. of Employees : |
4,000 |
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 |
Company Name : AL MARAI TRADING COMPANY LTD
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 1975
Commercial Registration Number : 1010084223, Riyadh
Chamber Membership Number : 23077
Issued Capital : SR 4,000,000,000
Paid up Capital : SR 4,000,000,000
Total Workforce : 4,000
Activities : Integrated dairy foods company
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
AL MARAI TRADING
COMPANY LTD
Registered &
Physical Address
Building : Al Marai Building
Street : Exit 7, North Circle Road
Area : Al Izdihar
District
PO Box : 8524
Town : Riyadh 11492
Country : Saudi Arabia
Telephone : (966-1) 4700005 / 4620088 / 4781216
Facsimile : (966-1) 4701555 / 4701926 / 4701931
Mobile : (966-50) 0548504
Email : marketing@almarai.com
Premises
Subject operates
from a suite of offices, a warehouse, cold storage facilities and a factory covering
an area of 45,000 square metres that are owned and located in the Industrial
Area of Jeddah.
Branch Office
(s)
Location Description
·
PO Box:
22306 Distribution
centre
Jeddah 21463
Tel: (966-2) 6836068
Fax: (966-2) 6836624
·
PO Box:
5017 Distribution
centre
Dammam 31422
Tel: (966-3) 8577511
Fax: (966-3) 8577987
·
PO Box:
1493 Distribution
centre
Khamis Mushait 11451
Tel: (966-7) 2230764
Fax: (966-7) 2236739
Subject operates 28
distribution depots throughout the GCC that are serviced by a fleet of 500
chilled sales vans.
Name Position
·
HH Prince Sultan Bin Mohamed Bin
Saud Al Kabeer Chairman
·
Abdulrahman Bin Abdulaziz Al
Muhanna Managing
Director
·
Ibrahim Bin Mohammed Bin Ibrahim
Alissa Director
·
Dr Ibrahim Bin Hassan Mohammed Al
Madhoun Director
·
Nasser Bin Mohammed Humoud Al
Muttawa Director
·
Mosa Omran Al Omran Director
·
Dr Abdulraouf Bin Mohammed Abdullah
Mana’a Director
·
HH Prince Naif Bin Sultan Bin
Mohammed Bin Saud Al Kabeer Director
·
Suliman Bin Abdulgader Al Muhaideb Director
·
Abdulrahman Al Fadley Chief
Executive Officer
·
Paul Louis Gay Chief
Financial Officer
·
Malcolm Jordan Marketing
Manager
·
Alan van der Nagel Operations
Manager
·
Nicolas Jay Sales
Manager
·
Majed Nofal Procurement
Manager
Date of Establishment : 1975
Legal Form :
Joint Stock Company
Commercial Reg. No. : 1010084223,
Riyadh
Chamber Member No. : 23077
Issued Capital : SR 4,000,000,000
Paid up Capital : SR 4,000,000,000
Name of Partner (s) Percentage
·
Savola Group 36.50%
·
HH Prince Sultan Bin Mohamed Bin
Saud Al Kabeer 28.60%
·
Omran M Al Omran & Partners 5.70%
· Members of the general public 29.20%
Name Percentage Held
·
Al
Marai Company Bahrain SPC 100%
Manama
Bahrain
·
Al Youm
for Food Products Company LLC 100%
Muscat
Oman
·
Al
Marai Investment Company Ltd 100%
Riyadh
·
Al Marai
Baby Food Company Ltd 100%
Riyadh
·
Hail
Agricultural Development Company 100%
Hail
·
Fondomonte
El Descanso SA 100%
Argentina
·
Fondomonte
Inversiones Argentina SA 100%
Argentina
·
Fondomonte
Sandoval SA 100%
Argentina
·
Agro
Terra SA 100%
Argentina
·
Fondomonte
Inversiones SL 100%
Spain
·
Western
Bakeries Company Ltd 100%
Jeddah
·
International
Baking Services Company Ltd 100%
Riyadh
·
Al
Marai International Holding WLL 100%
Manama
Bahrain
·
Al Marai
Emirates Company LLC 100%
United Arab Emirates
·
Markley
Holdings Ltd 100%
Jersey
United Kingdom
·
Al
Marai Investment Holding WLL
100%
Manama
Bahrain
·
Arabian
Planets for Trade and Marketing LLC 90%
Muscat
Oman
·
Modern
Food Industries Ltd 60%
Riyadh
·
Agricultural
Input Company Ltd 52%
Riyadh
·
International
Dairy & Juice Ltd 52%
United Arab Emirates
·
Teeba
Investment for Developed Food Processing 39%
Jordan
·
Al Rawabi
for Juice and UHT Milk Manufacturing
39%
Jordan
·
Al
Muthedoon for Dairy Production 39%
Jordan
·
Al
Atheer Agricultural Company 39%
Jordan
·
Al
Namouthjya for Plastic Production
39%
Jordan
Activities: Engaged in the production and marketing of
dairy products, butter, cheese, milk, fruit juices, cream, UHT milk and
evaporated milk. The company’s operations are performed through the following
divisions:
Al Marai Feed Factory
PO Box: 8524
Riyadh 11492
Tel: (966-1) 4700005
The Farming Division is engaged in the operation of a number of farms
supporting a herd of 45,000 Holstein Friesian cows that are used to produce the
milk necessary for the processing division.
It was the first dairy farm in the world to gain ISO 9002 accreditation.
It is also involved in the manufacture of animal feeds.
The
Processing Division is responsible for the assembly of raw milk from farms, the
processing of milk and cheese, the importation of a range of long life products
and the subsequent distribution of all product from the cold stores and factory
to 28 depots.
Prior to 1996 the company operated four fresh dairy processing plants
and a cheese blending plant with an additional 70,000 litre per day pilot
project plant used for new product development. The plants were located at
Jeddah on the Red Sea coast, Khamis Mushayt in the South West highland region,
at Al Kharj approximately 100 kilometres south of Riyadh in the Central Province
and one farm-based plant approximately 150 kilometres from Dammam on the
Arabian Gulf.
In order to achieve anticipated sales growth, product expansion and to
maintain high quality standards, increased and enhanced processing capacity was
identified as a key strategic requirement. Accordingly in 1994, the company
commenced the construction of a state of the art 45,000 square meter processing
facility, which more than doubled production capacity and significantly
strengthened the company’s ability to expand the product range and also to
rationalize existing sites. The plant commenced production in August 1996 and
has a capacity of 1.5m litres per day.
Currently, over 60% of all milk is fermented into a product called “Laban”, a traditional Middle Eastern drink akin to
a natural drinking yoghurt and approximately 25% is processed as fresh milk.
Other products include a set yoghurt called “Zabadi”, a thick spooning cream called “Ghiste”, a fermented fat product called “Labneh”, UHT milk, and a wide range of fruited
products including stirred and set yoghurts and fruit laban. Milk and Laban are
produced in full fat (3%) and low fat forms and all products are packaged in a
variety of sizes and conventional formats.
The cheese blending factory is dedicated to the processing of a cream
cheese, which is packed in glass jars, cans and plastic pots. In 1993, the
company commenced production of full fat recombined milk and a range of
flavoured recombined milks.
The new processing plant was voted "World’s Food Plant of the Year
1998" by US-based Food International Magazine.
Processing
Capacity: 1.5 million
litres of milk per day
Import
Countries: Europe and the
United States of America.
Export
Countries: Kuwait, Bahrain,
Qatar, the United Arab Emirates, Oman, Yemen and
Lebanon.
Brand Names: ALMARAI
Subject has a
workforce of approximately 4,000 employees.
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR 000’s)
Balance Sheet 31/12/12 31/12/11 31/12/10
ASSETS
Current Assets
Cash and Cash
Equivalents 417,304 271,979 240,750
Derivative
Financial Instruments 34,934 109 6,529
Receivables and
Prepayments 791,688 617,431 613,756
Inventories 2,317,097 1,696,785 1,299,337
Total Current Assets 3,561,023 2,586,304 2,160,372
Non-Current Assets
Investments and
Financial Assets 244,327 852,746 957,683
Property, Plant
and Equipment 13,415,836 10,508,107 7,866,639
Biological Assets
901,029 817,618 769,505
Intangible Assets
- Goodwill 1,335,455 826,576 793,468
Deferred Charges 50,756 53,836 23,550
Deferred Tax
Asset 10,222 8,630 -
Total Non-Current Assets 15,957,625 13,067,513 10,410,845
TOTAL ASSETS 19,518,648 15,653,817 12,571,217
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities
Short Term Loans 1,399,818 1,208,501 545,902
Payables and
Accruals 2,176,575 1,513,163 1,253,424
Derivative
Financial Instruments 102,977 96,374 79,120
Total Current Liabilities 3,679,370 2,818,038 1,878,446
Non-Current Liabilities
Long Term Loans 7,254,743 5,716,663 4,301,301
Employees'
Termination Benefits 287,056 243,481 206,088
Deferred Tax
Liability 126,489 97,983 -
Total Non-Current Liabilities 7,668,288 6,058,127 4,507,389
TOTAL LIABILITIES 11,347,658 8,876,165 6,385,835
EQUITY
Shareholders' Equity
Share Capital 4,000,000 2,300,000 2,300,000
Share Premium - 1,600,500 1,600,500
Statutory Reserve
912,917 654,903 654,903
Other Reserves (189,861) (255,475) (155,828)
Treasury Shares (95,282) (97,757) -
Retained Earnings
2,921,667 2,516,290 1,734,039
Total Shareholders' Equity 7,549,441 6,718,461 6,133,614
Minority Interest 621,549 59,191 51,768
TOTAL EQUITY 8,170,990 6,777,652 6,185,382
TOTAL LIABILITIES AND EQUITY 19,518,648 15,653,817 12,571,217
Statement of
Income
Sales 9,882,996
7,950,989 6,930,910
Cost of Sales (6,371,919)
(4,954,469) (4,194,989)
Gross Profit 3,511,077 2,996,520 2,735,921
Selling and
Distribution Expenses (1,616,749) (1,213,232) (1,045,973
General and
Administration Expenses
(221,402) (265,678) (229,241)
Net Operating Income 1,672,926 1,517,610 1,460,707
Share of Results
of Associates and
Joint Ventures (24,583) (42,298) (5,913)
Bank Charges (157,487) (134,965) (120,621)
Income from Main and Continuing Operations 1,490,856 1,340,347 1,334,173
Zakat &
Income Tax (50,946) (33,173) (27,203)
Income before Minority Interest 1,439,910 1,307,174 1,306,970
Minority Interest
718 (7,423) (21,553)
Net Income for the Period / Year 1,440,628 1,299,751 1,285,417
Local sources
consider subject’s financial condition to be Good.
·
National
Commercial Bank
Naseria Branch
PO Box: 17248
Riyadh 11484
Tel: (966-1) 4036500
·
Riyad
Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-1) 4122243
Fax: (966-1) 4013030
·
Arab
National Bank (ANB)
King Faisal Street
North Morabbaa
PO Box: 56921
Riyadh 11564
Tel: (966-1) 4029000
Fax: (966-1) 4027747
·
Saudi
British Bank
PO Box: 2907
Riyadh 11462
Tel: (966-1) 4794400
No complaints regarding
subject’s payments have been reported.
Al Marai Trading
Company Ltd is the largest integrated dairy foods company in the world with a
herd of 45,000 livestock and a market share of 40-50% of the fresh dairy
markets in the GCC. Over 20,000 customers are serviced on a daily basis through
the company’s network of 28 distribution depots that are located throughout the
GCC.
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.61.16 |
|
|
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.