MIRA INFORM REPORT

 

 

Report Date :

10.07.2014

 

IDENTIFICATION DETAILS

 

Name :

EL MOHANDES JOTUN FOR PAINTS SAE

 

 

Registered Office :

Florida Mall, Sheikh Ali Gad El Haq Street, Heliopolis, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1984

 

 

Com. Reg. No.:

13335

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture and export of paints for use in the construction, maritime and decoration industries, under licence from Jotun, Norway

 

 

No of Employees :

300

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Egypt

B1

B1

 

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

 


 

EGYPT ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency

 

Source : CIA

 

 


SUMMARY

 

Company Name                                     : EL MOHANDES JOTUN FOR PAINTS SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1984

Commercial Registration Number            : 13335, Ismailia

Industrial Registration Number                 : 9751

Issued Capital                                        : £E 20,000,000

Paid up Capital                                      : £E 20,000,000

Total Workforce                                     : 300

Activities                                               : Manufacturers of paint.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 
COMPANY NAME

 

EL MOHANDES JOTUN FOR PAINTS SAE

 

 

company ADDRESS

 

Registered & Physical Address

 

Building             : Florida Mall

Street               : Sheikh Ali Gad El Haq Street

Area                 : Heliopolis

 

Town                 : Cairo

Country             : Egypt

 

Telephone         : (20-2) 22651800 / 22651852 / 22651856 / 22651810

Facsimile          : (20-2) 22651801 / 22651803

Email                : jotun@jotun.com.eg / ram.ramnath@jotun.ae

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Industrial Zone                                                                                  Factory premises

PO Box: 203

Ismailia

     Tel: (20-64) 3481030 / 3481031 / 3481032

     Fax: (20-64) 3320946

 

·       67 Armed Forces Buildings                                                                Office premises

Moustafa Kamel

       Alexandria

       Tel: (20-3) 5467442

       Fax: (20-3) 5457616

 

·       14 Ahmed Hosny Street                                                                     Warehouse premises

Nasr City

Cairo

Tel: (20-2) 24010006

Fax: (20-2) 24010005

 

·       Baya Centre                                                                                     Office premises

45 El Nasr Street

El Gazayer Square

Maadi

Cairo

Tel: (20-2) 27548736

 

·       Tiba Centre                                                                                       Office premises

112 Sudan Street

Mohandessin

Giza

Cairo

Tel: (20-2) 33368608

Fax: (20-2) 33380599

 

·       30C El Nour Tower                                                                            Office premises

151/153 In Front of Toun Centre

Maadi

Cairo

Tel: (20-2) 23780912

Fax: (20-2) 23596366

 

·       137 Abd El Aziz Al Seoud Street                                                        Office premises

Manial

Cairo

Tel: (20-2) 25324707

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Knut Almestrand                                                                               Chairman

 

·       Mohamed Ahmed Wasfy                                                                    Director

 

·       Rady Abdel Hamid Rady                                                                    Director

 

·       Samy Mekheimar                                                                              Director

 

·       Oystein Rismyhr                                                                               Director

 

·       Teor Johansen                                                                                  General Manager

 

·       Saad Fathi                                                                                        Finance Manager

 

·       Ashraf Maged                                                                                   Sales Manager

 

·       Khaled Atta                                                                                      Factory Manager

 

·       Adel Tawakol                                                                                    Administration Manager

 

·       Sabry Sherine                                                                                   Human Resources Manager

 

·       Yasser Gabr                                                                                     IT Manager

 

·       Hassan Yasser                                                                                 Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1984

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 13335, Ismailia

 

Industrial Reg. No.       : 9751

 

Issued Capital              : £E 20,000,000

 

Paid up Capital            : £E 20,000,000

 

Name of Shareholder (s)                                               Percentage

 

·       Jotun Paints A/S                                                            65%

PO Box: 2021

Hasle

N-3235 Sandefjord

Norway

Tel: (47-33) 457000

Fax: (47-33) 464613

 

·       Suez Canal Authority                                     ]

                                                                                    ]

·       Al Watany Bank                                                        ]

                                                                                    ]    35%

·       Engineers Syndicate                                                 ]

                                                                                    ]

·       Egyptian businessmen and private investors                ]

 

 

AFFILIATED COMPANIES

 

Mohandes Jotun For Paints SAE is a member of the well known Jotun A/S of Norway, which is one of the world’s leading industrial and heavy duty marine paints and coatings manufacturers and suppliers. The group operates in 5 continents and in over 40 countries.

 

The Jotun Group in the Middle East includes the following concerns:

 

·       Jotun (Muscat) LLC

Rusayl Industrial Estate

PO Box: 1672

Muscat

Oman

Tel: (968) 24626100

 

·       Red Sea Paints Co Ltd

PO Box: 34698

Jeddah 21478

Saudi Arabia

Tel: (966-2) 6361271

Fax: (966-2) 6362483

 

·       Ratinjat Saudia Co Ltd

PO Box: 34698

Jeddah 21478

Saudi Arabia

Tel: (966-2) 6361271

Fax: (966-2) 6362483

 

·       Corro-Coat Saudi Arabia Ltd

PO Box: 10830

Dammam 31443

Saudi Arabia

Tel: (966-3) 8121259

Fax: (966-3) 8121226

 

·       Jotun Powder Coatings UAE (LLC)

PO Box: 51033

Dubai

United Arab Emirates

Tel: (971-4) 3472515

Fax: (971-4) 3472815

 

·       Jotun Saudi Arabia Ltd

Al Gosaibi Building

PO Box: 2038

Jeddah 21451

Saudi Arabia

Tel: (966-2) 6532968

 

·       Jotun Polymer Inc

Jebel Ali Free Zone

Dubai

United Arab Emirates

Tel: (971-4) 8835215

Fax: (971-4) 8835887

 

·       Jotun Paints

Al Moayyed Building

Manama

Bahrain

Tel: (973-17) 533944

Fax: (973-17) 533482

 

·       Jotun Abu Dhabi LLC

     Al Salam Street

     PO Box: 3714

     Abu Dhabi

     United Arab Emirates

     Tel: (971-2) 6771697

     Fax: (971-2) 6781710

     Email: jotunadh@emirates.net.ae

 

·       Hepworth Plastic Gulf (HPG)

Al Ramoul Industrial Area

PO Box: 2345

Dubai

United Arab Emirates

Tel: (971-4) 2852670

Fax: (971-4) 2857553

 

·       Bin Ham Hepworth Plastic Gulf

PO Box: 6820

Abu Dhabi

United Arab Emirates

Tel: (971-2) 727585

 

·       Ajay Enterprises-Hepworth Plastic Gulf

PO Box: 1667

Jeddah

Saudi Arabia

Tel: (966-2) 6990890

 

·       Y.K. Al Moayyed & Sons Hepworth Plastic Gulf

PO Box: 143

Manama

Bahrain

Tel: (973-17) 211518

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and export of paints for use in the construction, maritime and decoration

                 industries, under licence from Jotun, Norway.

 

Import Countries: Norway, France, United Kingdom, and Germany

 

Export Countries: Libya and Palestine

 

Brand Names: JOTUN

 

Operating Trend: Steady

 

Subject has a workforce of approximately 300 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

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

 

Total Sales                                £E 305,100,000                         £E 330,000,000

 

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

 

 

BANKERS

 

·       Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 35703043

Fax: (20-2) 35703172 / 35072691

 

·       Suez Canal Bank

PO Box: 2620

Cairo

Tel: (20-2) 35769296

Fax: (20-2) 35322064

 

·       Bank of Alexandria

49 Kasr El Nile Street

     Cairo

     Tel: (20-2) 24824056 / 24836073

     Fax: (20-2) 24837468

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Mohandes Jotun For Paints SAE was established in 1985 and is engaged in the manufacture of paints.

 

The company is the market leader in the protective and marine coating segments. In the decorative paint segment Jotun started in 1995 and has already taken the position as number 4 in the market behind the established companies in the segment. The introduction of Multicolour in shop tinting of colours has given Jotun a flying start, and the company is steadily developing to be one of the leaders in the market segment.

 

Subject is run in a professional manner and is a member of the well known Norwegian Jotun Group, which has operations throughout the world.

 

According to local sources subject’s financial position is healthy and profitable with payment obligations met in a timely manner. As such the company is deemed trustworthy for respecting its financial trade commitments.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.72

UK Pound

1

Rs. 102.35

Euro

1

Rs. 81.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

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.