MIRA INFORM REPORT

 

 

Report Date :

04.08.2014

 

IDENTIFICATION DETAILS

 

Name :

BAHWAN BUILDING MATERIALS LLC

 

 

Registered Office :

Bayt Al Falaj Street, Al Wadi Al Kabir, PO Box : 169, Muscat 100

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

17.06.1979

 

 

Com. Reg. No.:

1/08739/8

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the import and distribution of building materials, timber, steel and ceramics.

 

 

No. of Employees :

220

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 


 

OMAN - ECONOMIC OVERVIEW

 

Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, will challenge the government's ability to effectively balance its budget if oil revenues decline. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors. In 2012, continued surpluses resulting from sustained high oil prices and increased enhanced oil recovery allowed the government to maintain growth in social subsidies and public sector job creation. However, the Sultan made widely reported statements indicating this would not be sustainable, and called for expanded efforts to support SME development and entrepreneurship. Government agencies and large oligarchic group companies heeded his call, announcing new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8 to 7%, lowered mortgage rates, capped the percentage of consumer loans at 50% of borrower's salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively.

 

Source : CIA

 


SUMMARY

 

Company Name                                     : BAHWAN BUILDING MATERIALS LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 17th June 1979

Commercial Registration Number            : 1/08739/8

Chamber Membership Number                : 206

Issued Capital                                        : RO 150,000

Paid up Capital                                      : RO 150,000

Total Workforce                                     : 220

Activities                                               : Import and distribution of building materials, timber, steel and ceramics.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 


COMPANY NAME

 

BAHWAN BUILDING MATERIALS LLC

 

 

COMPANY ADDRESS

 

Registered & Physical Address

 

Street   : Bayt Al Falaj Street

Area     : Al Wadi Al Kabir

PO Box : 169

Town     : Muscat 100

Country : Sultanate of Oman

 

Telephone         : (968) 24810983 / 24813752 / 23211333 / 24424794

Facsimile          : (968) 24815755

Mobile               : (968) 99216569 / 99412476 / 94030194 / 99377036

Email                : bahwanbm@omantel.net.om

 

Premises

 

Subject operates from a medium sized suite of offices and a warehouse that are owned and located in the Central Business Area of Muscat.

 

Branch Offices

 

Location                                                                                              Description

 

Salalah Industrial Area                                                                            Office premises

Tel: (968) 23211333

Fax: (968) 23210199

 

Subject operates 7 other branches located throughout Oman.

 

 

KEY PRINCIPALS

 

Name                                                               Nationality                   Position

 

Sheikh Suhail Salem Abdullah Bahwan                  Omani                         Chairman

 

Sheikh Ahmed Suhail Salem Abdullah Bahwan       Omani                         Director

 

Ravendhra Gondali                                             -                                   General Manager

 

Manish Kumar                                                      -                                Assistant General Manager

 

Ramesh Babu                                                      -                                 Commercial Manager

 

Ajay Talwar                                                         -                                 Finance Manager

 

Murli Darren                                                       -                                   Administrative Officer

 

Azhurallah Khan                                                -                                   Sales Manager

 

Mohamed Rabee                                                   -                                Collections Manager

 

Hesham Essmat                                                -                                   Salalah Branch Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           17th June 1979

 

Legal Form      :                       Limited Liability Company – LLC

 

Commercial Reg. No.  :           1/08739/8

 

Chamber Member No. :           206

 

Issued Capital              :           RO 150,000

 

Paid up Capital            :           RO 150,000

 

Name of Shareholder (s)

 

Sheikh Suhail Salem Abdullah Bahwan

 

Sheikh Ahmed Suhail Salem Abdullah Bahwan

 

 

AFFILIATED COMPANIES

 

Subject is a member of the well known Suhail & Saud Bahwan group of companies that comprises the following concerns:

 

Al Gaddag Engineering LLC

PO Box: 168

Muscat

Tel: (968) 24712470

 

Suhail & Saud Bahwan Building Materials LLC

PO Box: 169

Muscat

Tel: (968) 24797581

Fax: (968) 24797169

 

Suhail & Saud Bahwan Building Materials LLC

Al Qurum District

PO Box: 3168 / 703, Ruwi 112

Muscat

Tel: (968-24) 700983 / 793741 / 561377

Fax: (968-24) 793755

 

Amiantit Oman SAO

PO Box: 1417

Seeb

Tel: (968-25) 626600

 

Arab Merchants Co LLC

PO Box: 6228

Muscat

Tel: (968-24) 701221

 

Arabian Car Marketing Co LLC

PO Box: 169

Muscat

Tel: (968-24) 793741

Fax: (968-24) 796158

 

Arabian Caravans Furnishing & Trading Co LLC

PO Box: 169

Muscat

Tel: (968-24) 797596

Fax: (968-24) 562089

 

Auto Parts Centre LLC

PO Box: 2619

Muscat

Tel: (968-24) 564308

Fax: (968-24) 564309

 

Automobile Automotive Centre

PO Box: 6168

Muscat

Tel: (968-24) 561377

Fax: (968-24) 561631

 

Bahwan Contracting Company LLC

PO Box: 4098

Muscat

Tel: (968-24) 591092

Fax: (968-24) 591098

 

Bahwan Foods (Khalijana) Co LLC

PO Box: 3711

Muscat

Tel: (968-24) 592492

 

Bahwan Trading Company LLC

Suhail Bahwan Building

PO Box: 169 & 2

Muscat 113

Tel: (968-24) 793750 / 24793741

Fax: (968-24) 796158

 

Bahwan Travel Agencies LLC

PO Box: 282

Muscat

Tel: (968-24) 740455

Fax: (968-24) 700483

 

Bahwan Engineering Co LLC (BEC)

Bahwan Centre

Sultan Qaboos Street

Al Ghoubra , Ruwi

PO Box: 703

Muscat 112

Tel: (968-24) 597510

Fax: (968-24) 597511

 

Delta Ltd

PO Box: 4537

Muscat

Tel: (968-24) 708483

 

Ebin Rushed Pharmacy Co LLC

PO Box: 169

Muscat

Tel: (968-24) 701557

Fax: (968-24) 701547

 

International Equipment & Contracting Co LLC

PO Box: 169

Muscat

Tel: (968-24) 714482

Fax: (968-24) 793755

 

National Crushers

PO Box: 961

Muscat

Tel: (968-24) 591461

 

Rent-A-Car LLC

PO Box: 282

Muscat

Tel: (968-24) 561427

Fax: (968-24) 700483

 

Utmost Building Materials Co LLC

Al Burj Building, 1st Floor

Deira

PO Box: 55014

Dubai

United Arab Emirates

Tel: (971-4) 3553883

Fax: (971-4) 3553776

 

Gulf Mercantile Trading

Al Burj Building, 1st Floor

Deira

PO Box: 55014

Dubai

United Arab Emirates

Tel: (971-4) 3553883

Fax: (971-4) 3553776

 

Mercantile Information & Telecommunication Technology Est (MITTE)

Sheikha Aisha Building

Al Salam Street

PO Box: 41175

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6458909

Fax: (971-2) 6458907

 

Al Mutawah Trading Co LLC

Al Mutawah Building

Sultan Qaboos Street

Al Ghobra

PO Box: 17, Muttrah 114

Muscat

Tel: (968-24) 591871 / 591872 / 591521

Fax: (968-24) 592370

 

Al Omaniya Automobile Marketing LLC

PO Box: 2619

Seeb

Tel: (968-25) 560925

Fax: (968-25) 564309

 

Arabian Engineering Services LLC

PO Box: 6000

Muscat

Tel: (968-24) 561377

Fax: (968-24) 561631

 

Bilad (Oman) LLC

PO Box: 42006

Rusayl

Tel: (968-24) 626001

Fax: (968-24) 591098

 

Electronics Company LLC

PO Box: 8111

Muttrah

Tel: (968-24) 793741

Fax: (968-24) 796158

 

Inma Company Oman LLC

PO Box: 3760

Muscat

Tel: (968-24) 562100

Fax: (968-24) 562039

 

Port Services Corp SAOG

PO Box: 133

Muscat

Tel: (968) 24714001

Fax: (968) 24714007

 

Qurum Contractors LLC

PO Box: 7003

Muscat

Tel: (968) 24562720

 

Sogex Oman LLC

PO Box: 4739

Muscat

Tel: (968) 24563055

Fax: (968) 24564608

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of building materials, timber, steel and ceramics.

The company is structured into three Strategic Business Units all operating in Oman.

Basic Building Materials Division cater to the requirement of


● Steel – Reinforcement bars ASTM Gr. 60 & BS 4449 Gr. 460 from Sharq Sohar (Oman), Hadeed (KSA),
RAK Steels & Gulf Steels (UAE) & various Turkish Mills
● Special Steel from ThyssenKrupp, Germany
● OPC, SRC & White Cement (Oman & UAE)
● Timber
– White wood (Chille & Austrian)
– Red Wood & Red Miranti (Malaysia)
– Commercial Plywood & Shuttering Plywood from Indonesia.

Hardware Division cater to requirement of

● Ceramics from RAK Ceramics, UAE.
– Wall & Floor tiles in size range 10x10 to 50x50 with various unique colours & designs to choose.
– Gres Porcellanto homogeneous tiles in size range 30x30 to 60x60
– Gres Porcellanto Slabs upto 1.2 M x 1.8M for Floors, Cladding, Counters, Kitchen tops & Steps & Risers.
– A galaxy of eye catch Listellos & Inserto for Kitchens & Bathrooms
– Swimming Pool tiles for pool interior & Déck
– Water Jet designs as per customer’s requirement.
– Sanitaryware from RAK Ceramics, UAE :
- 25 Suites to choose in 15 different colours
- Oman Ceramics 5 suites in 15 different colours
- Shires Bathroom, United Kingdom
- IFO Sanitar, Sweden.
- Budget suites from Parryware, India
- Value for money sanitaryware from India.
- KLUDI Mixers from RAK, UAE

● Brassware, Tapware, Sanitary fittings from Germany, Italy & India
- Plumbing
– Ferrous –GI Pipes from Oman & India.
– Copper Pipes – Muller, UK & Fittings from United Kingdom.
– Plain Pipe from Oman & Fittings from United Kingdom.
– UPTHERM Pipes from Oman.

● Paints
– Decorative Paints - Oman & UAE (Asian, Berger & Jotun)
– Industrial Paints – Berger, Oman
– Multicolour system from Alchem, UAE.
– Auto Paints from PPG - MAXMAYER/NEXA AUTOCOLOR, UK/ITALY.

● Construction Chemicals from Aspec (Kuwait) & RAK Laticrete.
● PVC Floor Covering from India
● Water heaters from Oman
● Fiberglass Insulation from Kuwait
● Rockwool Insulation from UAE.
● Shuttering Props, China
● HDPE Linear from Taiwan/Europe.
● "Alyaf" Geotextile Membrane, KSA
● Road Marking Paints from KSA
● Skylights from United Kingdom
● Polymer Concrete & SS Channel & Gradings from ACO, UK/Germany
● Drainage Products – FC Frost, UK
● Cast Iron Pipe & Fittings from France
● Woven Geotextile Membranes from Holland.
● Geogrid – Tenax, Italy
● Supply & Apply of Liquid/Torch-on & Self Adhesive Waterproofing.
● Polystyrene (Extruded & Expanded)
● Asbestos Cement Pipes & Fittings.
● GI Refuse Containers, Germany
● DuPont Corean Tops, Belgium
● RADCON Formula #7 Lifetime Waterproofing and Protection for Structural concrete.
● UPTHERM PPR Pipes & Fittings.

Electrical & Special Products Division

● Lighting & Luminaires
– Whitecroft/UK
– Cooper Lighting & Security (Crompton) UK
– Disano/Italy
– Crompton Greaves/India

● Emergency Lighting – Cooper Light & Security (JSB) UK
● Lamps & Tube Lights – Sylvania/Europe
● Fire Alarm System – Edwards International/Canada
● Dimming System – Quantran Systems/UK
● Public Address System – Ahuja/India
● Security System – BPT/Italy
● Fans (Ceiling & Exhaust) – Usha/India
● LV Cables, Conductors & Wires – Oman Cables Industries/Riyadh Cables.
● Galvanised Wire for Cables
● BRC Meshes
● Cast Iron & Ductile Iron Manhole Covers
● Chain Link Fencing
● Blasting Grit (Garnet)
● Steel Straps
● Safety Barrier Beams for Road (Guard Rail)

 

Import Countries:                     Europe, China and GCC countries.

 

International Suppliers:

 

RAK Ceramic                            United Arab Emirates

ACO Systems FZE                    United Arab Emirates

AGA Rangemaster Limited         United Kingdom

NITCO Ceramic Ltd                    China

 

Brand Names:                          AHUJA, ASIAN PAINTS, BERGER, CROMPTON GREAVES, GROHE, KIMMCO and TRIMBLE

 

Operating Trend:                     Steady

 

Subject has a workforce of approximately 220 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                RO 45,200,000                          RO 45,900,000

 

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

 

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

 

 

BANKERS

 

Commercial Bank of Oman SAOG

Muttrah Business District

PO Box: 1696, Ruwi 112

Muscat

Tel: (968) 24793225 / 24793226 / 24793228

Fax: (968) 24793229

 

HSBC Middle East

PO Box: 234

Muscat 113

Tel: (968) 24736041 / 24736042

Fax: (968) 24736043

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 April 2008

Credit amount                                        150,000

Amount overdue                                     0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 


GENERAL COMMENTS

 

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.60.85

UK Pound

1

Rs.102.68

Euro

1

Rs.81.46

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.