MIRA INFORM REPORT

 

 

Report Date :

25.03.2014

 

IDENTIFICATION DETAILS

 

Name :

HAWKARY PHAARMACEUTICAL CO

 

 

Registered Office :

Hawkary Group, 100m Street, Opposite To Bahrka Avenue ,3rd Floor, Erbil

 

 

Country :

Iraq

 

 

Date of Incorporation :

1992

 

 

Legal Form :

Legal Structure Not Ascertained

 

 

Line of Business :

Wholesale of pharmaceutical goods

 

 

No. of Employees :

310

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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)

Iraq

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

IRAQ - ECONOMIC OVERVIEW

 

An improving security environment and foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic development, long-term fiscal health, and sustained improvements in the overall standard of living still depend on the central government passing major policy reforms. Iraq's largely state-run economy is dominated by the oil sector, which provides more than 90% of government revenue and 80% of foreign exchange earnings. Iraq in 2012 boosted oil exports to a 30-year high of 2.6 million barrels per day, a significant increase from Iraq's average of 2.2 million in 2011. Government revenues increased as global oil prices remained persistently high for much of 2012. Iraq's contracts with major oil companies have the potential to further expand oil exports and revenues, but Iraq will need to make significant upgrades to its oil processing, pipeline, and export infrastructure to enable these deals to reach their economic potential. The Iraqi Kurdistan Region's (IKR) autonomous Kurdistan Regional Government (KRG) passed its own oil law in 2007, and has directly signed about 50 contracts to develop IKR energy reserves. The federal government has disputed the legal authority of the KRG to conclude most of these contracts, some of which are also in areas with unresolved administrative boundaries in dispute between the federal and regional government. Iraq is making slow progress enacting laws and developing the institutions needed to implement economic policy, and political reforms are still needed to assuage investors' concerns regarding the uncertain business climate, which may have been harmed by the November 2012 standoff between Baghdad and Erbil and the removal of the Central Bank Governor in October 2012. The government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles including a tenuous political system and concerns about security and societal stability. Rampant corruption, outdated infrastructure, insufficient essential services, skilled labor shortages, and antiquated commercial laws stifle investment and continue to constrain growth of private, nonoil sectors. Iraq is considering a package of laws to establish a modern legal framework for the oil sector and a mechanism to equitably divide oil revenues within the nation, although these reforms are still under contentious and sporadic negotiation. Under the Iraqi Constitution, some competencies relevant to the overall investment climate are either shared by the federal government and the regions or are devolved entirely to the regions. Investment in the IKR operates within the framework of the Kurdistan Region Investment Law (Law 4 of 2006) and the Kurdistan Board of Investment, which is designed to provide incentives to help economic development in areas under the authority of the KRG. Inflation has remained under control since 2006 as security improved. However, Iraqi leaders remain hard pressed to translate macroeconomic gains into an improved standard of living for the Iraqi populace. Unemployment remains a problem throughout the country despite a bloated public sector. Encouraging private enterprise through deregulation would make it easier for Iraqi citizens and foreign investors to start new businesses. Rooting out corruption and implementing reforms - such as restructuring banks and developing the private sector - would be important steps in this direction.

 

Source : CIA

 

 

 


Company name and address

 

Company Name:           HAWKARY PHAARMACEUTICAL CO

Country:                        IQ

Street Name:                 HAWKARY GROUP, 100 METER ST., OPP. BAHARKA

RD,3RDF

City Code:                    ERBIL

Post Code:                   EKHLAS FURNI

Phone Number:             +964 0 662519685 / +9647 504459726

Comments:                   CONTACT PERSON: MOHAMMAD ESMAIL

 

Rating Briefing

Payment Record:          NO COMPLAINTS

 

This rating is based on available data. In the event of additional information a possibility for a different rating applies.

 

Registration Briefing

 

Registration Number:   N/A

Registration Date:         12/7/2006

Legal Form:                 LEGAL STRUCTURE NOT ASCERTAINED

Latest Financials:         N/A

 

Financial Briefing

 

Nominal Capital:          N/A

Issued Capital:             N/A

Turnover:                     N/A

Net Profit:                     N/A

Net Worth:                    N/A

 

 

Original Investigation Details

 

Company Name:           HAWKARY PHAARMACEUTICAL CO

Country:                        HAWKARY GROUP, 100 METER ST., OPP. BAHARKA

RD,3RDF

City Code:                    ERBIL

Post Code:                   EKHLAS FURNI

Phone Number:             +964 0 662519685 / +9647 504459726

Comments:                   CONTACT PERSON: MOHAMMAD ESMAIL

 

 

 

Company Details

 

Company Name:           Hawkary

Also trades as:              Hawkary Pharmaceutical Co

Headquarter Address:    HAWKARY GROUP,

100m street, opposite to Bahrka Avenue ,3rd Floor,

Erbil,

Iraq

 

Telephone:                    +9646 62229531

+9646 62519685

+9647 504010248

+9647 504459726

 

E‑Mail:                          info@hawkary.net

Web Site:                      www.hawkary.net

 

Company was originally started on 1992

 

 

Registration & Legal Details

 

Current Legal Form:                               LEGAL STRUCTURE NOT ASCERTAINED

Registration Address:                            Doctors Street,

Erbil

Registration Date:                                 12/7/2006

Year/Date Company Established:           1992

Registration Town:                                 Erbil

Chamber of Commerce Number:            25668

 

 

Capital

 

Capital is NOT disclosed.

 

 

Shareholders / Owners

 

Parent Company:         HAWKARY GROUP,

Erbil,

Iraq

 

 

Shareholders:

 

Name/Other Information Shares Held      % of Voting/Non‑Voting capital

Muhamed Ismail Muhamed Seyan,

Iraq

Khaled Taha Hussain,

Iraq

Ahmed Ismail Seyan,

Iraq

 

 

Principals

 

Name:                                       Mr Muhamed Ismail Seyan

Position within the company:     Chairman

Additional Information:              Authorized Manager

Nationality:                                Iraqi

Can fluently speak:                    English & Arabic

Education:                                Graduate Degree in B.S. degree in Business and Administration

Work Experience and History:    Chairman of the Board of Directors of Hawkary since the company foundation in

1992, has over 20 years of experience in Pharmaceutical sector.

 

He is the executive chairman also for “Team Mart” a huge hypermarket chain which consists of over 30 branches distributed in all over Iraq.

 

And he is a member of the Board of Directors of Investors Union of Kurdistan / Iraq since 2011, and president of the Turkish‑Iraqi Association of Businessmen and investors since 2012.

 

Name:                                       Mr Ahmed Ismail Seyan

Position within the company:     Vice Chairman

Nationality:                                Iraqi

Can fluently speak:                    English & Arabic

Work Experience and History:    Vice‑ chairman of the Board of Directors of Hawkary since the company foundation in 1992, has over 20 years of experience in Pharmaceutical sector. He is the head of branding and promotion department in all Hawkary Group.

 

He is the executive chairman also for “Smile Land” a huge Entertainment city chain in Iraq, and practiced in multiple activities in real estate and commercial sectors inside Iraq.

 

Name:                                       Mr Rida AL‑Ghoul

Position within the company:     Chief executive & Officer

Can fluently speak:                    English & Arabic

Education:                                Degree in B.S. degree in Economics

Other qualifications include:       B.S. degree in Economics

 

 

Work Experience and History:    Chief Executive Officer (CEO) Joined the board of directors of Hawkary in June 2012, has 10 years of experience in banking and over 10 years of experience inpharmaceutical industry.

He was the "General Manager"for many pharmaceutical companies in Jordan, and he was the "vice president" for one of the biggest multinational Pharmaceutical Company in MENA and LEVANT regions; He was also a board member in many pharmaceutical companies in Algeria, Morocco, Lebanon, Egypt, Sudan and Jordan.

 

Name:                                       Mr Abed Alraheem M

Additional Information:              Demand Planning Manger

Education:                                Graduate from Hashemite University

 

Name:                                       Mr Mohammad AlKhawaja

Position within the company:     Production Manager

Can fluently speak:                    English & Arabic

Education:                                Graduate Degree in B.Sc, Pharmacy from University of Jordan

 

Name:                                       Mr Qanih Sulaiman

Position within the company:     Human resources Manager

Can fluently speak:                    English & Arabic

 

Name:                                       Mr Fadi Al_Taamreh

Additional Information:              Financial Analyst

Can fluently speak:                    English & Arabic

Education:                                Graduate University

 

Name:                                       Mr Kak Mahmoud

Position within the company:     Administration Manager

Address:                                   Mobile: 964 750 4991316

Nationality:                                Iraqi

Can fluently speak:                    English & Arabic

Education:                                Graduate University

 

 

Company Activities

 

NACE Codes:   4646     Wholesale of pharmaceutical goods

 

From subject's website:

Hawkary is one of the top five fast growing Local Pharmaceutical Distribution Companies in Iraq and has occupied a significant share in Iraqi market. It engages in the distribution and marketing of pharmaceutical products and has supported this growth by proactively adding right products to its portfolio based on the growing Pharmaceutical market needs.

 

Hawkary Pharmaceuticals was established in 1992 as the first distributor for private market which at that time the

pharmaceutical marketwas controlled by Iraqi ministry of health commercially.

 

Hawkary considered number one inside Iraq in infrastructure size in pharmaceutical distribution business. Our total storage capacity of warehouses in all parts of Iraq is about 20.000 ballets.

The largest arm that distributes products in the market by sub‑distributers who owned by Hawkary group

 

Hawkary is adopting an Enterprise Resource Planning system (ERP system) to make the functional units perform better by integrating all the functions of the businesses into a single database.

 

ERP facilitates information flow between all business functions inside the organization, and manages to integrate it regional offices with its branches,in order to serve its customers with good quality products, good services, on time delivery and to keep track of all delivery points.

 

Subject is working to become the first company in Iraq working under GDP (Good Distribution Practices) match the European standards and US‑FDA regulations in pharmaceutical industry, high quality of products and services are provided and an excellent customer relationship is maintained.

 

Some of Subject's Clients:

Al‑ Anhar drug store – Al Falojah

Ibn Sina drug store ‑ Karbala

Al‑Madar drug store ‑ Mousel

Ibn Al‑Haitham drug store ‑ Basra

Al‑Ya’asob – Baghdad

 

 

Operations

 

Employees                                           Group employs: 305 staff

Comments: General & Administrative:     70 employees

Sales and Marketing:                             50 employees

Commercial department :                       60 employees

Inventory and logistic:                          70 employees

Finance and Information Technology:     40 employees

Regulatory Affairs & Quality Assurance:             15 employees

 

HQ Premises    Operates from:  Office

Location:          Central Business Area

 

Branches          Erbil,

Erbil,

Iraq

Description of branch: Warehouse

These premises operate as: 9 warehouses

 

Other Branches

 

Subject has numerous other branches nationally.

Number of Branches:     7

Additional Information:  5 warehouses: 1 in north region, 1 in

Mosul, 1 in Kirkuk, 1 in Baghdad, 2 in

Karbala, 1 in Basra

Imports

 

Imports Finished Goods

Imports From:   Europe, Middle East, Far East, USA

 

Agencies:

Ajanta   India     pharmaceuticals

MICRO LABS LIMITED   India     pharmaceuticals

Ranbaxy Laboratories Limited    India     pharmaceuticals

Mylan Laboratories Inc.  USA     pharmaceuticals

Mera Pharma     pharmaceuticals

MEC     pharmaceuticals

Desma Pharma Switzerland       pharmaceuticals

Philadelphia      Jordan  pharmaceuticals

 

 

Exports

 

Export % and type of product:  Subject does not export

 

 

Trading & Selling

 

Territory:                       100% Nationally

Type of Customer:        Local Authorities, wholesalers, drug stores and pharmacies

 

 

 

Related Companies

 

Subsidiaries

Affiliates

Information on Related Companies is not available/applicable

 

 

Bankers

 

Information on Bankers is not available/applicable

 

 

Payments

 

Subject's payments reported to be:        NO COMPLAINTS

Interview & Reporter Comments

 

Name/Title:                    Mr. Kak Mahmoud Administration Manager

Comment:                     We have sent a fax/e‑mail/questionnaire however no reply has been received as of yet.

 

Reporter Comment:       Subject was found registered with Erbil Chamber of Commerce, which is publicly available.

Information obtained was Registered name, Chamber Registration No. & Date, shareholders name, registered address.

 

In the interview conducted with Mr. Kak Mahmoud, Admin Manager, he confirmed subject's name, address, and activity and asked us to send them a written request for the information in order to show it to the management team and then come back to us with their reply.

 

Other information shown in report was obtained from subject’s website, internet business

directories and contact with the company.

 

In case any additional information is obtained, we shall send it to you at once.

 

 

Conclusions

 

Local Reputation:                                  The company being investigated is considered by local reporters to be a Fair / Normal Trade Risk.

 

General Conclusion:                              Local informants consider granting of credit to be a fair trade risk.

 

Owner/Shareholders Comments:            Some of the owners / shareholders have an active participation in the running of the business.

 

Age of Business:                                  The company is long established in the local market.

 

 

Clippings

 

Date:                14/1/2014

Source:             http://www.hawkary.net/news.aspxid=1753&group_key=news&lang=en

On Saturday Dec. 14, 2013, annual management meeting took place in Erbil Rotana Hotel, Erbil. The meeting was initiated by words from the Board of Directors, our Chairman Mr. Mohammed Ismail, the Vice Chairman Mr. Ahmed Ismail, and the CEO Mr. Rida Alghol.

 

During the meeting, Mr. Alghol reviewed 2013 achievements and projects statuses. After that, he announced the official kick‑off of the 2014 budget.  Then, there was a session about Strategic Thinking.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.70

UK Pound

1

Rs.100.10

Euro

1

Rs.83.81

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.