MIRA INFORM REPORT

 

 

Report Date :

22.02.2014

 

IDENTIFICATION DETAILS

 

Name :

AL HAYAT BUILDING MATERIALS CO LTD

 

 

Registered Office :

Mecca Medina Express Highway, PO Box : 18053, Jeddah 21415

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

29.11.1985

 

 

Com. Reg. No.:

4030041450, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject is engaged as distributors of building materials, hardware, power tools, decorative materials and sanitary ware products.

 

 

No. of Employees :

550

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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                                    : AL HAYAT BUILDING MATERIALS CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 29th November 1985

Commercial Registration Number           : 4030041450, Jeddah

Chamber Membership Number               : 17875

Issued Capital                                       : SR 10,000,000

Paid up Capital                                     : SR 10,000,000

Total Workforce                                     : 550

Activities                                               : Distributors of building materials, hardware, power tools, decorative

                                                              materials and sanitary ware products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Ahmed Medhat, Financial Controller

 

 

 


COMPANY NAME

 

AL HAYAT BUILDING MATERIALS CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Mecca Medina Express Highway

PO Box            : 18053

Town                : Jeddah 21415

Country             : Saudi Arabia

 

Telephone         : (966-12) 6407777 / 6732322 / 6736327 / 6712380

Facsimile          : (966-12) 2272727 / 6712380

Email                : info@hayatbmc.com / hayatbma@ogertel.com

 

Premises

 

Subject operates from a large suite of offices and a warehouse that are rented and located in the Central Business Area of Jeddah.

 

Branch Office (s)

 

Subject operates a network of 20 branches located throughout the Kingdom, including the following:

 

Location                                                                                   Description

 

Riyadh                                                                                      Office & warehouse premises

Tel: (966-1) 2410939

 

Dammam                                                                                  Office & warehouse premises

Tel: (966-3) 8571688

 

Khamis Mushait                                                                         Office & warehouse premises

Tel: (966-7) 2237937

 

Al Hasa                                                                                     Office & warehouse premises

Tel: (966-3) 5861311

 

Jizan                                                                                         Office & warehouse premises

 

 


KEY PRINCIPALS

           

Name                                                                                                   Position

 

Issam Mohamed Khairy Al Kabbani                                                        Managing Partner

 

Zayad Zain Al Abdin                                                                              Partner

 

Fawaz Hajjar                                                                                          General Manager

 

Bassam Dalaoua                                                                                   Finance Manager

 

Ahmed Medhat                                                                                      Financial Controller

 

Nedal Al Obaid                                                                                      Sales Manager

 

Basheer Mohamed Bashir                                                                      Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           16/03/1406 (corresponding to 29th November 1985)

 

Legal Form      :                       Limited Liability Partnership

 

Commercial Reg. No.   :           4030041450, Jeddah

 

Chamber Member No.  :           17875

 

Issued Capital              :           SR 10,000,000

 

Paid up Capital            :           SR 10,000,000

 

Name of Partner (s)

 

Issam Mohamed Khairy Al Kabbani

 

Zayad Zain Al Abdin

 

 

AFFILIATED COMPANIES

 

National Marketing Est

Port Road

PO Box: 16375 / 17931

Jeddah 21464

Tel: (966-12) 6475010 / 6473381

Fax: (966-12) 6474503

Commercial Registration Number: 4030006734

Engaged as wholesalers of UPVC pipes and fittings and a wide range of items and products related to water, drainage and conduit installation projects. Subject is also engaged in the distribution and installation of decorative materials.

 

United Building Materials Co Ltd (UNITECH)

Also Known As: Issam Kabbani & Partners for Prefabricated Building & Trading Co

Al Amin Al Aam Street

Al Azizeyyah District

PO Box: 5338

Jeddah 21422

Tel: (966-12) 6659096

Fax: (966-12) 6658079

Commercial Registration Number: 4030032842

Engaged as wholesalers and distributors of building materials, sealants, adhesives, bitumen coatings, hardware and tools.

 

Issam Kabbani & Partners for Waterproofing Materials Co (BMC)

PO Box: 5338

Jeddah 21422

Tel: (966-12) 6673180

Fax: (966-12) 6658079

            Commercial Registration Number: 4030032844

BMC is an engineering and contracting company specialising in waterproofing, damp-proofing, heat insulation and concrete repair.

 

Al Kabbani Co for Electric Trading

PO Box: 18033

Jeddah 21415

Tel: (966-12) 6481713

Fax: (966-12) 6478065

Distributors of electrical fittings, switchgear boards and cables.

 

Al Hayat Supermarket

PO Box: 16375

Jeddah 21464

 

Marketing Fittings Sanitary & Plumbing Co

PO Box: 16375

Jeddah

Retailers of sanitary fittings.

 

Issam Kabbani Co

PO Box: 16375

Jeddah 21464

Wholesalers of foodstuff.

 


Emam Distribution Co Ltd

PO Box: 1716

Jeddah 21441

Tel: (966-12) 6824294

Fax: (966-12) 6918227

 

Specialist International Marketing Group Co

PO Box: 6338

Jeddah 21422

Tel: (966-12) 6672000

Fax: (966-12) 6658079

 

Saudi Turkish Marine & Construction Contracting Co Ltd

PO Box: 7371

Jeddah 21462

Tel: (966-12) 6670457

Fax: (966-12) 6652473

 

Mahmoud Adada & Issam Kabbani & Partners Ltd

PO Box: 520

Makkah

Tel: (966-12) 5205555 / 5803056

 

Engaged in the production of wooden and metal furniture and kitchen units, as well as door, windows and decorative wood.

 

 

OPERATIONS

 

Activities:                     Engaged as distributors of building materials, hardware, power tools, decorative materials and sanitary ware products.

 

Import Countries:         United Kingdom, Germany, Italy, Spain, Belgium and South Korea

 

International Suppliers:

 

Kludi                                                     Germany

Grohe                                                   Germany

AEG Electrowerkezeug GmbH                Germany

Ge Plastics Europe                               Germany

Hawera Probst GmbH & Co                   Germany

Weiser                                                  United Kingdom

Tremco Sealants                                   United Kingdom

Pigler                                                    United Kingdom

Saviel                                                   Italy

Fischer Italia Srl                                     Italy

Sangra                                                  Spain

Carlisle Syntec Systems                                    Belgium

Seo Young                                           South Korea

Operating Trend:          Steady

 

Subject has a workforce of approximately 550 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

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

 

Total Sales                                SR 120,000,000                         SR 124,700,000

 

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

 

The above figures were provided by Mr Ahmed Medhat, Financial Controller

 

 

BANKERS

 

National Commercial Bank

Palestine Square

PO Box: 7161

Jeddah 21462

Tel: (966-12) 6697384

Fax: (966-12) 6697388

 

Al Bank Al Saudi Al Fransi

Al Sharafiya Branch

Madinah Road

PO Box: 7888

Jeddah 21472

Tel: (966-12) 6605863

 

 

PAYMENT HISTORY

           

No complaints regarding subject’s payments have been reported.

 

 


GENERAL COMMENTS

 

Al Hayat Building Materials Co Ltd has operations dating back to 1984 and is engaged in the distribution of building materials, hardware and sanitary ware products. It enjoys a good reputation for the quality of its products and deals with a host of reputable international suppliers.

 

Subject is owned by members of the Kabbani family who have many years experience in the building materials industry.

 

According to local sources subject’s operating history is clear with nothing detrimental uncovered regarding the manner in payment obligations are met. The financial position is considered to be satisfactory and the business is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.103.44

Euro

1

Rs.85.27

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.