MIRA INFORM REPORT

 

 

Report No. :

344201

Report Date :

12.10.2015

 

IDENTIFICATION DETAILS

 

Name :

BERGER PAINTS PAKISTAN LIMITED

 

 

Registered Office :

36, Industrial Estate, Kot Lakhpat, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

25.03.1950

 

 

Com. Reg. No.:

0000358

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Company is engaged in the manufacturing of paints, varnishes and other related items

 

 

No. of Employees :

509

 

 

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 :

Good

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 – 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

Restricted

 

C2

Off-credit

 

D

 

 

 


Business Name

 

BERGER PAINTS PAKISTAN LIMITED

 

 

Full Address       

 

Registered Address

 

36, Industrial Estate, Kot Lakhpat, Lahore, Pakistan

                       

Tel #

92 (42) 111-237-437

Fax #

92 (42) 35151549

Website

www.berger.com.pk

 

 

Short Description Of Business

 

a.

Nature of Business      

Company is engaged in the manufacturing of paints, varnishes and other related items

b.

Year Established

1950

c.

Registration No.

0000358

 

 

Branches

           

In Karachi, Lahore, Islamabad, Peshawar, Multan, Faisalabad & Quetta

 

 

Other Factories Location

 

28 K.M., Multan Road, Lahore, Pakistan

 

 

Auditors

           

KPMG Taseer Hadi & Co.

(Chartered Accountants)

 

 


Legal Status

 

The company was incorporated in Pakistan on March 25, 1950 as a private limited company and was subsequently converted into a public limited company. The company is listed on the Karachi and Islamabad stock exchanges of Pakistan

 

 

Details of Chairman / Directors

 

Names

 

Designation

Mr. Maqbool H.H. Rahimtoola

 

Dr. Mahmood Ahmad

 

Mr. Hamid Masood Sohail

 

Mr. Muhammad Naseem

 

Mr. Ilyas Sharif

 

Mr. Shahzad M. Husain

 

Mr. Zafar A. Osmani

Chairman

 

Chief Executive

 

Director

 

Director

 

Director

 

Director

 

Director

 

 

Categories of Shareholders                 

 

Categories

 

Percentage (%)

Directors, CEO and their spouses

and minor children

 

NIT & ICP

 

Banks, Development Financials

Institutions, Non Banking

Financial Institutions

 

General Public (Local)

 

General Public (Foreign)

 

Others

 

Associated Companies

 

0.011

 

2.248

 

 

 

2.879

 

36,074

 

1.529

 

5.208

 

52.050

 

Holding Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

 

The holding Company of Berger Paints Pakistan Limited is Slotrapid Limited which is Slotrapid Limited which is incorporated in the B.V.I.

 

 

Associates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

 

A.         Subsidiary

 

None

           

 

B.         Associated Companies

 

Berdex Construction Chemicals Private Limited, Pakistan.

Berger Road Safety Private Limited, Pakistan.

(3) Berger DPI Pakistan Limited, Pakistan.

 

 

Products

 

Berger Robbialac Color Bank, Timbercoat and Textured effects are some of Berger’s highly successful products.

 

 

Number of Employees

 

509

 

 

Annual Sales Turnover (Last 2 Years)

 

Years

 

In Pak Rupees

2014

2015

4,509,031,000/-

4,301,830,000/-

 

 

Production Capacity

 

                                                                                                2015                 2014

                                                                                                (Liters in thousand)     

           

            Actual production                                                         28,433               28,783             

 

Note :

 

The capacity of the plant is indeterminable because it is a multi product plant involving varying processes of manufacturing. Actual production includes resin production of 7.09 million liters (2014: 6.64 million liters) which is used in the manufacturing of the final product.

 

 

Trade Suppliers (Foreign)

 

Subject import / purchases globally from China, Taiwan, Korea & European

Countries. Its current global trade suppliers are Companies related to Paint’s Raw

Material & Chemicals

 

 

Clientele (Pakistan Based)

 

Mainly Automobile Assemblers, Distribution Companies, Government Corporations, Trading Companies

 

 

Bankers

           

(1) Al-Baraka Bank Pakistan Limited.

(2) Bank Al-Habib Limited, Pakistan.

(3) Faysal Bank Limited, Pakistan.

(4) Habib Bank Limited, Pakistan.

(5) Habib Metropolitan Bank Limited, Pakistan.

(6) JS Bank Limited, Pakistan.

(7) MCB Bank Limited, Pakistan.

(8) Summit Bank Limited, Pakistan.

(9) United Bank Limited, Pakistan.

 

 

Financial Position

 

Sound

 

 

Company Profile

           

Berger was established two centuries ago and now it has grown to become one of the world’s largest paints manufacturer. In Pakistan, history of Berger is as old as history of Pakistan. Berger started its operations in Pakistan in 1950 and was the first organized Paint Company to offer premium products through import from the United Kingdom. BERGER PAINTS PAKISTAN LTD. became a public limited company in 1974, when 49.38% of its shares were acquired by Pakistani investors, while the remaining 50.62% were held by U.K. parent company, Jenson & Nicholson Limited. In 1991 Slotrapid Limited, a U.K. based company with diversified business interests, acquiring control of Berger Paints Pakistan Limited by gaining 50.62% shares of the company. Berger established its first local manufacturing facility in Karachi in 1955. As the country’s economic and industrial sector expanded the demand for quality paints also grew and Berger continued to make extensions in its product range to meet these requirements.In 2006, Berger established state of the art manufacturing facility in Lahore. This plant has provided Berger an edge over its competition through enhanced production. It has enabled Berger to meet the growing demands of its valued customers across Pakistan. Berger Paints Head office is located in Lahore. Consistent quality has always been Berger’s trait. This has been the driving force in making it the leading brand name backed by premium quality across Pakistan. Berger has the most comprehensive product range for various paint market segments at different price points. Berger has earned the admiration and trust of customers by virtue of its superior technology, product quality and a very high level of customized services. Berger has entered into a number of technical collaboration arrangements with leading international manufacturers. These include the largest paint company in Japan, which enables Berger to develop Automotive, Vehicle Refinishes and Industrial Paints conforming to international standards; a Japanese chemical company, for Bumper Paints; PCS Powders, UK for Powder Coatings; DPI Sendirian Berhad, Malaysia for Road & Runway Markings; Cerachem for Construction Chemicals and Asian Paints for Decorative Paints. Recently, Berger acquired distribution rights of DuPont for Pakistan’s vehicle refinish paint segment. Berger is also operating Resin manufacturing facility at its Lahore factory. The resin plant has high production capacity and has enabled Berger to meet its entire resin needs for the manufacturing of a wide range of quality paints. Berger was the first paint company in Pakistan to set up its own resin production facility. The company has regional offices in Karachi, Lahore, Islamabad and Territorial Offices in Gujranwala, Multan, Faisalabad, Peshawar and Hyderabad. A large team of sales personnel and a wide network of dealers and distributors serve customers in all urban centers across the country.

 

 

Memberships

 

Karachi Chamber of Commerce & Industry.(KCCI)

Federation Pakistan Chamber of Commerce & Industry.(FPCCI)  

 

 

Foreign Exchange Rates

 

Currency

 

Unit

Pakistani Rupee

US Dollar

1

         Rs. 104.40

UK Pound

1

         Rs. 159.50

Euro

1

         Rs. 117.75

 

 

Comments

 

Subject Company enjoys excellent credibility in the International Business Community, Worldwide. Company is primarily engaged in manufacturing of   paints, varnishes and other related items. Payments to creditors etc are reported as normal. Subject can be considered for normal business dealings at usual trade terms and conditions.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.78

UK Pound

1

Rs.99.54

Euro

1

Rs.73.08

 

 

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%)

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.