MIRA INFORM REPORT

 

 

Report Date :

23.06.2014

 

IDENTIFICATION DETAILS

 

Name :

AL AUJAN INDUSTRIES CO

 

 

Registered Office :

Dammam – Al Khobar Highway, Bridge Street, Al Rakah, 2nd Industrial Area, PO Box : 990, Dammam 31421

 

 

Country :

Saudi Arabia 

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

27.12.1981

 

 

Com. Reg. No.:

2050002697, Dammam

 

 

Legal Form :

Saudi Joint Stock Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions :

·         Al Aujan Soft Drinks Industry Division

·         General Trading Division

 

 

No. of Employees :

1,500

 

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)

Saudi Arabia 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

SAUDI ARABIA - ECONOMIC OVERVIEW

 

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% 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 6 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 AUJAN INDUSTRIES CO

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Saudi Joint Stock Company

Registration Date                                  : 27th December 1981

Commercial Registration Number           : 2050002697, Dammam

Chamber Membership Number               : 800

Issued Capital                                       : SR 300,000,000

Paid up Capital                                     : SR 300,000,000

Total Workforce                                     : 1,500

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

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Hussain Abdin, Financial Controller

 


COMPANY NAME

 

AL AUJAN INDUSTRIES CO

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Dammam – Al Khobar Highway, Bridge Street

Area                 : Al Rakah, 2nd Industrial Area

PO Box                        : 990

Town                : Dammam 31421

Country : Saudi Arabia

 

Telephone         : (966-3) 8570777 / 8570666

Facsimile          : (966-3) 8577923 / 8573226

Email                : aujan@aujan.com.sa / saleem.yahya@aujan.com.sa

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Industrial Area of Dammam.

 

Branch Office (s)

 

Location                                                                                               Description

 

PO Box: 16458                                                                                      Sales Office & Distribution Centre

Riyadh 11464

Tel: (966-1) 2436120 / 2436047

Fax: (966-1) 2436051

 

PO Box: 6332                                                                                       Sales Office & Distribution Centre

Jeddah 21442

Tel: (966-2) 2270088 / 2270065 / 2270049

Fax: (966-2) 2271035

 

PO Box: 147                                                                                         Sales Office & Distribution Centre

Khamis Mushait

Tel: (966-7) 2330003 / 2330576

Fax: (966-7) 2330589

 

Subject also operates distribution centres in the following cities; Al Khobar, Mecca, Madinah, Tabuk, Abhar, Jizan, Buraidah and Najan.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Adel Abdul Rahman Abdulatif Al Aujan                                       Chairman

 

Adnan Abdul Rahman Abdulatif Al Aujan                                                Vice Chairman

 

Telal Adel Abdul Rahman Abdulatif Al Aujan                               Director

 

Ms Fareeda Abdul Rahman Abdulatif Al Aujan                            Director

 

Misheal Al Kadeeb                                                                    General Manager

 

Hussain Abdin                                                                           Financial Controller

 

Hussain Ba Hussain                                                                   Factory Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           30/02/1402 Hijri (corresponding to 27th December 1981)

 

History :                                   Subject’s operations date back to 1905, however it was registered in 1981 under the name of “Abdul Wahab Aujan & Brothers Co”.

 

In January 2000 subject changed its name to the current style of “Al Aujan Industries Co”

 

Legal Form      :                       Saudi Joint Stock Company

 

Commercial Reg. No.   :           2050002697, Dammam

 

Chamber Member No.  :           800

 

Issued Capital              :           SR 300,000,000

 

Paid up Capital            :           SR 300,000,000

 

Name of Shareholder (s)                                                           Percentage

                       

Adel Abdul Rahman Abdulatif Al Aujan                                       25%

 

Adnan Abdul Rahman Abdulatif Al Aujan                                                25%

 

Telal Adel Abdul Rahman Abdulatif Al Aujan                               25%

 

Fareeda Abdul Rahman Abdulatif Al Aujan                                  25%

AFFILIATED COMPANIES

 

Aujan Industries Co JSC

PO Box: 116495

Dubai

United Arab Emirates

Tel: (971-4) 8853555

Fax: (971-4) 8853377

 

Al Ansari & Aujan Company WLL

PO Box: 5721

Doha

Qatar

Tel: (974) 44601230

Fax: (974) 44602026

 

Saleh & Aujan Trading Co Ltd

PO Box: 912

Aden

Yemen

Tel: (967-2) 356991

Fax: (967-2) 356994

 

Al Aujan & Oasis

PO Box: 25450

Dubai

United Arab Emirates

Tel: (971-4) 8853444

Fax: (971-4) 8853300

 

Aujan Beverages Co WLL

PO Box: 29

Safat 13001

Kuwait

Tel: (965) 24334460

Fax: (965) 24334470

 

Aujan Trading Co WLL

PO Box: 59

Manama

Bahrain

Tel: (973-17) 700940 / 700941

Fax: (973-17) 700974

 

Teejan & Aujan Marketing Co LLC

Teejan House

PO Box: 1829, Ruwi 112

Muscat

Oman

Tel: (968) 24594641

Fax: (968) 24501752

 

National Fruit Juice Co Ltd

Street No. 8

Sahab Industrial City

PO Box: 70

Amman 11512

Jordan

Tel: (962-6) 4029950

Fax: (962-6) 4029102

 

Rani Company for Imports

Al Sarag Mall, No. 2, 11th Floor

Makram Obeid Street

Nasr City

Cairo

Egypt

Tel: (20-2) 26708692 / 22723004

Fax: (20-2) 35365710 / 22757952

 

Rani for Trading & Industry SAE

Al Sarag Mall, No. 2, 11th Floor

Makram Obeid Street

Nasr City

Cairo

Egypt

Tel: (20-2) 26708692 / 22723004

Fax: (20-2) 35365710 / 22757952

 

 

OPERATIONS

 

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

 

Al Aujan Soft Drinks Industry Division

 

            Location:          2nd Industrial City

                                    PO Box: 990

                                    Dammam 31421

                                    Tel: (966-3) 8121079 / 8121515 / 8430900

                                    Fax: (966-3) 8122228 / 8432612

 

Activity:            Production of soft drinks and fruit juices, such as apple and mango under the brand name of “Rani”. Subject currently has a production capacity of 250 million litres per annum. The production facilities cover an area of 70,000 square metres.

 

The division also operates a fleet of 300 vehicles that call on more than 27,000 outlets a week, including 100% coverage of supermarkets and wholesalers and 70% coverage of all retail outlets in GCC countries. Company-owned coolers are placed in 80% of all outlets.

 

General Trading Division

 

Engaged in the import and distribution of the raw materials necessary for the production of soft and fizzy

drinks, as well as distributing bottled fizzy drinks.

 

Import Countries:         United Kingdom and Switzerland

 

International Suppliers:

 

Vimto                           United Kingdom

Britvic                           United Kingdom

Tetra Pak Plastics          Switzerland

United Arab Can Manufacturing Co Ltd (Uacan)   Saudi Arabia

 

Export Countries:         Kuwait, Bahrain, Qatar, United Arab Emirates and Oman

 

Brand Names:              VIMTO, LIPTON ICE TEA, HANI, BARBICAN & RANI

 

Operating Trend:          Steady

 

Subject has a workforce of approximately 1,500 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 2,710,000,000                      SR 2,935,000,000

 

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

 

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

 

 

BANKERS

 

Saudi British Bank

PO Box: 1618

Dammam 31411

Tel: (966-3) 8331553

Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-3) 8337171

 

National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

Arab National Bank (ANB)

King Street

PO Box: 18

Dammam 31411

Tel: (966-3) 8323440

Fax: (966-3) 8337829

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Al Aujan Industries Co is an old and well-established business, trading since 1905 with nothing detrimental heard regarding the manner in which payment obligations are conducted.

 

Subject is the largest producer and distributor of soft drinks and fruit juices in Saudi Arabia with a production capacity of 250 million litres per annum supplying more than 27,000 outlets.

 

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.60.28

UK Pound

1

Rs.102.77

Euro

1

Rs.82.12

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.