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Report No. : |
356146 |
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Report Date : |
24.12.2015 |
IDENTIFICATION DETAILS
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Name : |
UNILEVER PAKISTAN LIMITED |
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|
|
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Registered Office : |
Avari Plaza, Fatima Jinnah Road, Karachi - 75530 |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2014 |
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Year of Establishment : |
1948 |
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Com. Reg. No.: |
0000140 |
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Legal Form : |
Public Limited Company (Not listed at any stock exchange of Pakistan) |
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Line of Business : |
Manufactures and markets home and personal
care products, beverages, ice cream and spreads |
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|
|
|
No. of Employees : |
1,829 |
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 |
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|
|
|
Payment Behaviour : |
Regular |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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-fourth of output and two-fifths of employment.
Textiles account for most of Pakistan's export earnings, and Pakistan's failure
to diversify its exports has left the country vulnerable to shifts in world
demand. Official unemployment was 6.9% in 2014, but this fails to capture the
true picture, because much of the economy is informal and underemployment
remains high. Pakistan's human development continues to lag behind most of the
region.. As a result of political and macroeconomic instability, the Pakistani
rupee has depreciated more than 40% since 2007. The government agreed to an
International Monetary Fund Standby Arrangement in November 2008 to preventa
balance of payments crisis, but the IMF ended the Arrangement early because of
Pakistan's failure to implement required reforms. The economy has stabilized,
it continues to underperform and foreign investment has not returned to levels
seen during the mid-2000s, due to investor concerns related to governance,
electricity shortages, , and a slow-down in the global economy. Remittances
from overseas workers, averaging more than$1 billion a month, remain a bright
spot for Pakistan. After a small current account surplus in fiscal year 2011
(July 2010/June 2011), Pakistan's current account turned to a deficit where it
remained through 2014, spurred by higher prices for imported oil and lower
prices for exported cotton. In September 2013, after facing balance of payments
concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund
Facility. The Sharif government has since made modest progress implementing
fiscal and energy reforms, and in December 2014 the IMF described Pakistan's
progress as "broadly on track." Pakistan remains stuck in a low-income,
low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014.
Pakistan must address long standing issues related to government revenues and
the electricity and natural gas sectors 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 |
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Business Name |
UNILEVER PAKISTAN LIMITED |
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Registered
Address |
|
Avari Plaza, Fatima Jinnah Road, Karachi -
75530, Pakistan |
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Tel # |
92 (21) 35660062 – 29 |
|
Fax # |
92 (21) 35681705 |
|
a. |
Nature of Business |
The Company manufactures and markets home
and personal care products, beverages, ice cream and spreads |
|
b. |
Year Established |
1948 |
|
c. |
Registration No. |
0000140 |
|
(1) Laghari Road, Rahim Yar Khan, Pakistan. (2) 46 K.M., Multan Road, Lahore, Pakistan. (3) 32, West Wharf Road, Karachi, Pakistan. (4) Brooke Bond Nagar, Khanewal, Pakistan. |
|
A. F. Ferguson & Co. (Chartered Accountants) |
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Public Limited Company (Not listed at any stock exchange of
Pakistan) |
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Names |
Designation |
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Mr. Ehsan A. Malik Mr. Ali Tariq Mr. Amir R. Paracha Mr. Amar Naseer |
Chairman & Chief Executive Director & CFO Director Director |
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Categories |
Percentage (%) |
|
Associated Companies and related parties Directors, Executives & Spouses Provincial Governments NIT & ICP Banks & Financial Institutions General Public Others Foreign Companies |
98.83 0.00 0.64 0.00 0.00 1.02 0.12 0.03 |
|
Through its
wholly owned subsidiary, Unilever Overseas Holdings Limited (UOHL), UK, Unilever
PLC, a company incorporated in the United Kingdom, is the holding company,
owning 98.92% of the shares in Unilever Pakistan Limited |
|
None |
BLUE BAND MARGARINE, CLOSEUP TOOTH PASTE, LIFE
BOY GOLD SOAP, LUX SOAP, SUNSILK SHAMPOO, FAIR & LOVELY CREAM, SURF EXCEL
WASHING POWDER, TALLO GHEE, WALLS ICE CREAM, LIPTON TEA, BROOKE BOND SUPREME
TEA,
1,829
Annual
Capacity Actual
Production
2014
2013 2014 2013
----------------------------Metric
Tons------------------------
Own manufacture
Home and personal
care 198,000 70,584 165,582 53,150
Beverages 50,979 52,686 32,325 27,134
---------------------------Million Liters------------------------
Ice Cream 60.0 78.0 37.8 34.3
Note:
The current capacity was under utilized on account of lower demand.
|
Year |
In Pak Rupees |
|
2014 |
65,704,906,000/- |
|
Mainly exist at all major cities of
Pakistan |
|
(1) Standard
Chartered Bank, Pakistan. (2) Faysal Bank
Limited, Pakistan. (3) Habib Bank
Limited, Pakistan. (4) Habib
Metropolitan Bank Limited, Pakistan. (5) Bank Alfalah
Limited, Pakistan. (6) NIB Bank Limited,
Pakistan. (7) Soneri Bank
Limited, Pakistan. (8) Allied Bank of
Pakistan. (9) MCB Bank Limited,
Pakistan. (10) Askari Bank
Limited, Pakistan. |
Sales grew by 8.5%
in a challenging economic and operational environment, with significant
commodity deflation headwind. Growth was broad-based and volume led. In the
case of Tea, commodity deflation and the resulting price reductions offset the
strong volume growth. The improvement in gross margin through higher volume,
cost efficiencies and better mix, was offset by restructuring charges. The
business continued to invest strategically behind key brands and increased
spend by 177 bps to 12.1% of Sales. Profit after tax grew by 3%.
All brands are sound and contribute major
share in Pakistan’s market
The Company
contributed billion of rupees of its value added to the national exchequer by
way of import duties, general sales tax, income tax and other government
levies.
Operating
environment remains challenging. Economic conditions, counterfeits and evasion
of taxes, especially in the tea category, continue to pose a threat. Amidst
these challenges, our strength lies in strong brand equities, innovative
products, research and development capability and global expertise. Our aim is
to continue to provide better value to consumers. To achieve this, we will
continue to attract, develop and retain the best talent in the country.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 106.20 |
|
UK Pound |
1 |
Rs. 158.20 |
|
Euro |
1 |
Rs. 115.00 |
Subject Company enjoys good reputation in Pakistan. Directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are usually correct and as per commitments. Subject can be considered good for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
PAK |
1 |
Rs.0.63 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.