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Report Date : |
07.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUNTSMAN TEXTILE
EFFECTS |
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|
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Registered Office : |
H-T-3, Landhi Industrial Area, |
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Country : |
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Date of Incorporation : |
2006 |
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Com. Reg. No.: |
0058475 |
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Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Subject is engaged in manufacture
& marketing of Specialty Chemicals for Textile Industries. |
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|
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No of Employees : |
175 |
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 |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Pakistan |
B2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political
disputes and low levels of foreign investment have led to slow growth and
underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of
output and two-fifths of employment. Textiles account for most of Pakistan's
export earnings, and Pakistan's failure to expand a viable export base for
other manufactures has left the country vulnerable to shifts in world demand.
Official unemployment was 6.6% in 2013, but this fails to capture the true
picture, because much of the economy is informal and underemployment remains
high. Over the past few years, low growth and high inflation, led by a spurt in
food prices, have increased the amount of poverty. As a result of political and
economic instability, the Pakistani rupee has depreciated more than 40% since
2007. The government agreed to an International Monetary Fund Standby
Arrangement in November 2008 in response to a balance of payments crisis.
Although the economy has stabilized since the crisis, it has failed to recover.
Foreign investment has not returned, due to investor concerns related to
governance, energy, security, and a slow-down in the global economy.
Remittances from overseas workers, averaging about $1 billion a month since
March 2011, remain a bright spot for Pakistan. However, after a small current
account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current
account turned to deficit in the following two years, spurred by higher prices
for imported oil and lower prices for exported cotton. Pakistan remains stuck
in a low-income, low-growth trap, with growth averaging about 3.5% per year
from 2008 to 2013. Pakistan must address long standing issues related to
government revenues and energy production in order to spur the amount of
economic growth that will be necessary to employ its growing and rapidly
urbanizing population, more than half of which is under 22. Other long term
challenges include expanding investment in education and healthcare, adapting
to the effects of climate change and natural disasters, and reducing dependence
on foreign donors.
|
Source
: CIA |
HUNTSMAN TEXTILE EFFECTS PAKISTAN (PVT) LIMITED
|
Registered
Address |
|
H-T-3, Landhi Industrial Area, Karachi,
Pakistan |
|
Tel # |
92 (21) 32581516, 32581517 |
|
Fax # |
92 (21) 32561366 |
|
a. |
Nature of Business |
Manufacture & marketing of Specialty
Chemicals for Textile Industries |
|
b. |
Year Established |
2006 |
|
c. |
Registration # |
0058475 |
|
Huntsman (Singapore) Pte Ltd |
|
M. Yousuf Adil Saleem & Co. (Chartered
Accountants) Cavish Court, A-35, Block 7 & 8, KCHSU, Shahrah-e-Faisal, Karachi,
Pakistan |
|
Subject Company was established as a Private Limited Company in 2006 |
|
Authorized Capital |
Rs. 80,000,000/- divided into
8,000,000 shares of Rs. 10/- each |
|
Issued & Paid up Capital |
Rs. 43,700,000/- divided into 4,370,000 shares of Rs. 10/- each |
|
Names |
Designation |
|
Mr. Richard Justin James Phillipson Mr. Paul Graham Hulme Mr. Abraham Arjen Vermeer |
Chief Executive Director Director |
|
Names |
No. of Shares |
|
Huntsman Investments (Netherlands) BV, Rotterdam Huntsman (Netherlands) BV |
4,369,999 1 |
A. Subsidiary
None
B. Associated Companies
Huntsman Advanced Materials (Europe).
Huntsman Textile Effects (Belgium).
Huntsman Advanced Materials (Switzerland).
Huntsman Textile Effects (Germany).
Huntsman Textile Effects (China) Co. Ltd.
Huntsman Textile Effects (Qingdao) Co. Ltd.
Subject Company is engaged in manufacture
& marketing of Specialty Chemicals for Textile Industries.
It purchases raw material on L/C, D/A basis.
It’s mainly import from Korea, European Countries, Taiwan, China,
Singapore, India, Japan, Thailand & U.S.A.
Its’ major customers are Textile Manufacturers, Garment Manufacturers
etc.
Subject operates from caption leased factory premises which is situated
at industrial area of Karachi.
Subject employs about 175
persons in its set up.
|
Year |
In Pak Rupees |
|
2012 |
300,000,000/- (Estimated) |
|
Subject mainly import from Companies belongs to Korea, European Countries, Taiwan, China, Singapore,
India, Japan, Thailand & U.S.A. |
Habib Bank Limited, Pakistan.
Faysal Bank Limited, Pakistan.
Bank Alfalah Limited, Pakistan.
Royal Bank of Scotland, Pakistan.
Standard Chartered Bank, Pakistan.
Singapore – Huntsman Textile Effects (TE) officially
opened its 13th new Formulation and Distribution Center (FDC) in Karachi,
Pakistan. The 4,000 square meter boasts state-of-the-art equipment and new
technology to bolster TE’s competitiveness and presence in the Pakistan market.
The new facility, located at the Landhi Industrial Area, provides a production
platform in one of the pioneer industrial states in Pakistan and gives Huntsman
further competitive advantage through convenient access and modern infrastructure.
Pakistan represents a fast-growing, dynamic market of increasing importance for
Textile Effects, and the launch of this FDC strengthens TE’s committed to this
textile market to provide best-in-class service and innovative solutions to customers
and partners. “With the opening of our new low cost production facility for
formulated chemicals in Karachi to meet increasing local demand, we will
considerably increase our competitiveness and flexibility in textile chemicals
in this key Asian textile market,” said Mr Paul Hulme, President of Huntsman
Textile Effects. “Our well established partner SWISSTEX will continue to
provide enhanced sales activities enabling us to concentrate on all formulation
and production aspects using our cutting edge technology to develop innovative
products and technologies, market solutions with intelligent effects to this
growing market.”In operation since 2007, Huntsman Textile Effects has a
manufacturing presence playing a leading role in supplying auxiliaries. With Swisstex
as its sole distributor, Huntsman Textile Effects has been aggressively
extending its global reach in Pakistan to support the challenges facing the
textile industry and to be the driving force for the 4th largest cotton
producer of the world. Huntsman Textile Effects looks to developing more
competitive locally-sourced formulated products for the local market, and will
work with distributor partner Swisstex in order to maximize growth with key
textile customers, especially in the home textiles and specialty chemicals
areas.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.25 |
|
UK Pound |
1 |
Rs. 164.40 |
|
Euro |
1 |
Rs. 128.65 |
Huntsman is a global manufacturer and marketer of differentiated
chemicals. Our operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation, textiles,
footwear, paints and coatings, construction, technology, agriculture, health
care, detergent, personal care, furniture, appliances and packaging. Originally
known for pioneering innovations in packaging and, later, for rapid and
integrated growth in petrochemicals, Huntsman has approximately 12,000
employees and operates from multiple locations worldwide. The Company had 2010
revenues of over $9 billion.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.