MIRA INFORM REPORT

 

 

Report Date :

22.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

W J TOWELL AND CO LLC

 

 

Formerly Known As :

W J TOWELL GROUP

 

 

Registered Office :

Towell Group Building, Exhibition Street, Al Azaiba, 1040, Ruwi 112, 678, Wadi Al Kabir 117, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

22.02.1975

 

 

Com. Reg. No.:

1/00373/9, Muscat

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

·       Consumer Goods Division

·       Building Materials Division

·       Property Division

·       Restaurant & Catering Services Division

 

 

No. of Employees :

1,600

 


 

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

 

Maximum Credit Limit :

 

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 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                                     : W J TOWELL AND CO LLC

Also Known As                                      : W J TOWELL GROUP

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 22nd February 1975

Commercial Registration Number            : 1/00373/9, Muscat

Chamber Membership Number                : 7

Issued Capital                                        : RO 20,000,000

Paid up Capital                                      : RO 20,000,000

Total Workforce                                     : 1,600

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

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Raman Kumar, Finance Manager

 

 

 


COMPANY NAME

 

W J TOWELL AND CO LLC

 

ALSO KNOWN AS: W J TOWELL GROUP

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Towell Group Building

Street               : Exhibition Street

Area                 : Al Azaiba

 

PO Box             : 1040, Ruwi 112

                          678, Wadi Al Kabir 117

 

Town                 : Muscat

Country             : Sultanate of Oman

 

Telephone         : (968) 24526000 / 24526001 / 24526000 / 24526422 / 24708304 / 24708308 / 24526023

Facsimile          : (968) 24526051 / 24793882 / 24794367

Mobile               : (968) 99650522

Email                : general@wjtowell.com

 

Premises

 

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

 

Branch Office (s)

 

Subject operates several branches located throughout Oman, including Salalah, Nizwa, Soha, Buraimi, Sur, and Ibri.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Hussain Jawad Abdul Rasool                                                 Managing Director

 

·       Jamil Ali Sultan                                                                                 Director

 

·       Anwar Ali Sultan                                                                               Director

 

·       Naeem Qamer Sultan                                                                        Director

 

·       Imad Kamal Sultan                                                                            Director

 

·       Mohamed Ali Abdul Amir Sultan                                                         Director

 

·       Murtadha Ahmed Sultan                                                                    Director

 

·       Mostafa Ahmed Sultan                                                                      Director

 

·       Raman Kumar                                                                                   Finance Manager

 

·       Ali Shahan                                                                                        Human Resources Manager

 

·       Jimi John                                                                                          Manager – Building Materials Division

 

·       Nader Khan                                                                                      Manager – Consumer Goods Division

 

·       Ivor Braganza                                                                                    Manager – Property Division

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1866, however it was registered under its current style on

  22nd February 1975

 

History                         : Subject’s operations date back to 1866 when the business was originally established as a

  General Partnership between Mr W J Towell, an American citizen, Archibald McKirdy, and

  L S Maguire. In 1893 Mohamed Fadhel was made a full partner in the business.

 

In the late 1890's when Jack Towell returned to America, he sold his shares of the company to his associates. At the turn of the century McKirdy also retired selling his portion of the enterprise to Maguire and Mohamed Fadhel. When Maguire died in 1914, Mohamed Fadhel became the sole owner and his descendants have directed the company ever since

 

In 1916, Mr Mohamed Fadhel died leaving the business to his son Sultan, who gave the family its surname. In the late 1920's Sultan handed the company over to his son Abdul Redha who later shared the responsibility with his brothers Qamer, Ali, Ahmed and Abdul Amir.

 

In 1975 subject was registered as a Limited Liability Company.

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/00373/9, Muscat

 

Chamber Member No. : 7

 

Issued Capital              : RO 20,000,000

 

Paid up Capital            : RO 20,000,000

 

Name of Shareholder (s)

 

·       Kamal Sultan Family Co LLC

 

·       Hussain Jawad Abdul Rasool

 

·       Jamil Ali Sultan

 

·       Anwar Ali Sultan

 

·       Hassan Qamer Sultan Family Co LLC

 

·       Naeem Qamer Sultan

 

·       Imad Kamal Sultan

 

·       Mohamed Ali Abdul Amir Sultan

 

·       Murtadha Ahmed Sultan

 

·       Mostafa Ahmed Sultan

 

 

AFFILIATED COMPANIES

 

·       Taylor Woodrow - Towell Co. LLC

·       Brown & Root Mid East LLC

·       General Electric & Trading Co. LLC (Genetco)

·       Jotun Paints & Co. LLC

·       Premix LLC

·       Readymix LLC

·       Oman National Dairy Products Co SAOG

·       Oman International Development Co. LLC

·       Cold Storage & Trading Co. LLC

·       Towell Lever LLC

·       Granherne & Co. LLC

·       Housetex Co. Ltd

·       Al Fajer Furnishing Co LLC

·       Towell Auto Centre

·       Middle East Telecommunication Company LLC

·       Towell Construction & Maintenance Co. LLC

·       Environmental Services LLC

·       Matrah Cold Stores LLC

·       Modern Cleaning Services

·       Towell Barwil Co. LLC

·       Mazoon Printing Press

·       Towell Tools & Engineering Co LLC

 

 

OPERATIONS

 

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

 

·       Consumer Goods Division

 

Address:      Bail Al Falaj Street

                               PO Box: 678

                               Al Wadi Al Kabir 117

                               Tel: (968) 247715224 / 247717160 / 247714610

                               Fax: (968) 247713196

                               Email: wjtcpd@omantel.net.om

 

Personnel:    Nadir Yar Khan – Marketing Manager

 

Activities:     This division specialises in the distribution of fast moving consumer goods and has an active client base of more than 3,000 customers.

 

            The division specialises in two types of products – food and non-food items, such as confectionery & ice-creams, pasta and sauces, pet foods, cosmetics and perfumes, baby care products, shaving items, and airfreshners.

 

                   Brands: SULTAN, MARS, DOLMIO, PEDIGREE, GUYLIAN, AMUROL, KENT, LESIEUR OILS, CAPRISONNE, MOUSSY, VICENZI PUFF PASTRY, AL-AMEER, SULTAN, and PLUMROSE.

 

Suppliers:     Euro Milk          Germany

                               Super Max        India

 

·       Building Materials Division

 

Address:      Bail Al Falaj Street

                               PO Box: 822

                               Al Wadi Al Kabir 117

                               Tel: (968) 247714789 / 247713478

                               Fax: (968) 247717955

                               Email: towellbm@omantel.net.om

 

     Personnel:    R.S. Vishwanathan        Division General Manager

                        Shyam Nilkund              Division Marketing Manager

 

Activities:     The Building Material Division of W.J. Towell began its operation when it first acquired the Agency for Twyford (UK) Sanitary ware in 1949. This was followed by importation of cement and steel bars for the construction industry.

 

            As business prospered, in 1980's, many agency lines were added, such as Permanite Waterproofing, Snowcem and Sandtex Paints, Mondo Rubber, Salvarani Kitchens, Modulex Signs, Langley Cubicles, Brady Shutters and Allgood Modric Ironmongery.

 

                        The division also supplies a wide range of safety equipment.

 

·       Property Division

 

Address:      Sohar House, 1st Floor, Suite No. 11

                               Madinat Al Sultan Qaboos

                               PO Box: 1040, Ruwi 112

                               Tel: (968) 24600562 / 24603656 / 24601491

                               Fax: (968) 24602657

                               Email: wjtprpty@omantel.net.om

 

Personnel:    Koshy Varghese            Division General Manager

 

Activities:     The Property Division is responsible for the management of all the properties owned by W.J. Towell group of companies. The property portfolio under management consists of both commercial, residential and industrial properties. These include a Commercial Centre and a large residential estate in Medinat Al Sultan Qaboos.

 

                               The division's property activities extend to acquisition, development, construction, selling and leasing. The division is in process of redeveloping its residential and commercial properties in Medinat Al Sultan Qaboos.

 

                               In addition to the customary services of property rentals and sales, the division can provide complete in-house maintenance services round the clock. It also manages properties of selected landlords in various parts of Muscat capital area.

 

·       Restaurant & Catering Services Division

 

Activities:     This division was established in 1993 and operates a Chinese restaurant, called the “Silk Route” as well as providing catering services.

 

Import Countries: Europe, the Far East and the United States of America

 

International Suppliers:

 

·       Burmah Castrol                                 United Kingdom

·       Twyfords Limited                               United Kingdom

·       Mars Ltd                                           United Kingdom

·       Unilever Exports Ltd                          United Kingdom

·       Securicor International                       United Kingdom

·       Mazda Motor Corp                             Japan

·       Lesieur Alimentaire International         France

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,600 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 43,609,000                          RO 48,058,000

 

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

 

The above figures were provided by Mr Raman Kumar, Finance Manager

 

 

BANKERS

 

·       Bank Muscat SAOG

1073, Muttrah Commercial District

Greater Muttrah

     PO Box: 3134, Ruwi

     Muscat 112

     Tel: (968) 24703044 / 24703137 / 24707015

     Fax: (968) 24793536

 

·       The Commercial Bank of Oman SAOG

Muttrah Business District

PO Box: 1696, Ruwi 112

Muscat

Tel: (968) 26793225 / 26793226 / 26793228

Fax: (968) 26793229

 

·       Bank of Oman, Bahrain & Kuwait

     BOBK House

     Al Burj Street

     PO Box: 4708, Ruwi 112

     Muscat

     Tel: (968) 24701528 / 24701532 / 24701788

     Fax: (968) 24705607 / 24793536

 

·       Standard Chartered Bank

PO Box: 2353

Ruwi 112

Tel: (968) 25703999 / 25703796 / 25703574

Fax: (968) 25796864

 

·       National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  June 2003                    December 2008            January 2014

Credit amount                            100,000             150,000             20,000

Amount overdue             0                                  0                                  0

Payment terms                          60 days                         60 days                         30 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   US Dollars                     US Dollars                     Euros

 

 

GENERAL COMMENTS

 

W J Towell and Co LLC is very well established in the local business market with operations dating back to 1866. It enjoys and excellent reputation for the quality of its products and services with interests in consumer goods, computers, building materials, catering, insurance and property.

 

The Consumer Goods Division specialises in the distribution of fast moving consumer goods and has an active client base of more than 3,000 customers. It deals with a host of leading international suppliers and stocks many well-known brands of foodstuff, household and personal hygiene products.

 

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.60.76

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.