MIRA INFORM REPORT

 

 

Report No. :

344985

Report Date :

14.10.2015

 

IDENTIFICATION DETAILS

 

Name :

EASTERN COMPANY SAE

 

 

Registered Office :

450 Al Ahram Street, Pyramids, Giza, PO Box : 1543, Cairo

 

 

Country :

Egypt

 

 

Date of Incorporation :

12.07.1920

 

 

Com. Reg. No.:

4884, Giza

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Subject is manufacturers of cigarettes, moassel, pipe tobacco, roll-your-own tobacco, cigars and Toscani.

 

 

No. of Employee :

13,640

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Egypt

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SUMMARY

 

Company Name                                    : EASTERN COMPANY SAE

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 12th July 1920

Commercial Registration Number           : 4884, Giza

Chamber Member Number                     : 0158

Authorised Capital                                 : £E 1,500,000,000

Issued Capital                                       : £E    750,000,000

Paid up Capital                                     : £E    750,000,000

Total Workforce                                     : 13,640

Activities                                               : Manufacturers of cigarettes and tobacco.

Financial Condition                                : Good

Payments                                             : Regular

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

EASTERN COMPANY SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 450 Al Ahram Street

Area                 : Pyramids, Giza

PO Box            : 1543

Town                : Cairo

Country             : Egypt

 

Telephone         : (20-2) 35703326 / 35724711 / 35724965 / 35724424 / 35724945

Facsimile          : (20-2) 35687434 / 35684734

Email                : eastern@easternegypt.com

 

Premises

 

Subject operates from a large suite of offices, a factory and a warehouse that are owned and located in the Suburban Business Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       91 Suez Canal Street                                                                         Owned factory premises

Moharam Bey

Alexandria

Tel: (20-3) 4221427 / 4291426

Fax: (20-3) 4285796

 

·       38 Nabil El Waqad Street                                                                  Owned factory premises

El Rasafa

Moharam Bey

Alexandria

Tel: (20-3) 4911868 / 3934317

Fax: (20-3) 3938518

 

·       Assiut                                                                                              Owned factory premises

AbuTig

Tel: (20-88) 2480361 / 2480828

Fax: (20-88) 2481733

 

·       Menoufeya                                                                                       Owned factory premises

Sers Allian Road

Tel: (20-48) 3661029 / 3660397

Fax: (20-48) 3661229

 

·       Gharbeya                                                                                         Owned factory premises

10 Abd El Aal Bek

Tel: (20-40) 3335709

Fax: (20-40) 3335345

 

·       2 Khatem El Morsaleen Street                                                           Owned factory premises

Talbia

Giza

Tel: (20-2) 35611411

Fax: (20-2) 35612615

 

Subject owns 11 factories in total and has a strong and well-established distribution network spanning the whole of Egypt, totalling in excess of 300 sites.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Nabil Abd El Aziz Abd El Meguid Mohsen                                          Chairman & Managing Director

 

·       Talaat Araby Ismail Mohamed                                                            Director

 

·       Magdy Korany El Sherbini                                                                 Director

 

·       Dr Ali Abdel Rahman Yousef                                                             Director

 

·       Ossama Saad Hassan                                                                      Financial Manager

 

·       Mohamed Osman Haroun                                                                  Marketing Manager

 

·       Zeinab El Samandouny                                                                     Legal Manager

 

·       Abd El Halem Habashy                                                                     Technical Affairs Manager

 

·       Mahmoud Lotfy                                                                                Laboratories Manager

 

·       Ali Saad El Din Ali                                                                            Investor Relations Manager

 

·       Mahmoud Mohamed Gad Allam                                                        Human Resources Manager

 

·       Mohamed Ali Ahmed Abd El Aal                                                       IT Manager

 

·       Naeem Hassan Tawfik                                                                       Public Relations Manager

 

·       Adel Azzam                                                                                      Legal Tobacco Sector Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th July 1920

 

History                         : Subject’s operations date back to 1920, however it was nationalised in 1963. Between 1963 and 1984, when its monopoly over the local cigarette market was established, it was merged with 10 other local tobacco manufacturers, including the merger of El Nasr Tobacco and Eastern Tobacco Company.

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 4884, Giza

 

Chamber Member No.  : 0158

 

Authorised Capital       : £E 1,500,000,000

 

Issued Capital              : £E    750,000,000

 

Paid up Capital            : £E    750,000,000

 

Name of Shareholder (s)                                                                      Percentage

 

·       Holding Co for Chemical Industries Group                                             55.00%

 

·       Private Investors                                                                                  33.38%

 

·       Lazard Emerging Market Equity Portfolio                                                 6.15%

United States of America

 

·       Shareholders Employees Association                                                      5.47%

 

 

OPERATIONS

 

Activities: Manufacturers of cigarettes, moassel, pipe tobacco, roll-your-own tobacco, cigars and Toscani.

 

                 Subject is Egypt’s main cigarette manufacturer. In addition to manufacturing its own brands, which

command a 94 percent market share, the company retails 17 international brands under licence from Philip Morris, BAT, RJ Reynolds and Rothmans.

 

    Subject is ISO 9001 accredited.

 

Production Capacity: 82,711 million cigarettes per day.

 

Import Countries: Brazil, China, Thailand, Mali and Italy.

 

Export Countries: Japan, Saudi Arabia, Kuwait, Libya, Qatar and Georgia.

 

Brand Names: CLEOPATRA FAMILLES, CLEOPATRA GOLDEN KING, CLEOPATRA BOX, CLEOPATRA SUPER,

                         BOSTON, MONDIAL RED, MONDIAL BLUE, BELMONT, LIGHTS, LIGHT, CIGAR, MOASSEL,

                         CIGARILLOS and CAPTAIN

 

Operating Trend: Steady

 

Subject has a workforce of approximately 13,640 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                £E 2,803,713,000                       £E 3,455,346,000

 

Gross Profit                              £E 932,099,000                         £E 571,218,000

 

Net Profit                                  £E 585,778,000                         £E 371,595,000

 

Equity                                       £E 4,866,489,000                       £E 4,283,038,000

 

Reserves                                  £E 3,469,354,000                       £E 3,469,354,000

 

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

 

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

 

 


BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Banque Misr

151 Mohamed Farid Street

Cairo

Tel: (20-2) 33912711 / 33912106

Fax: (20-2) 33919779

 

·       Misr International Bank (MIBANK)

14 Alfy Street

     PO Box: 631

     Cairo

     Tel: (20-2) 35931002

     Fax: (20-2) 35912306

 

·       Scotia Bank

3 Ahmed Nessim Street

Giza

PO Box: 656

Cairo 11511

Tel: (20-2) 33365734 / 33365731

Fax: (20-2) 33365730

 

 

PAYMENT HISTORY

 

Regular

 

 

GENERAL COMMENTS

 

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.65.02

UK Pound

1

Rs.99.89

Euro

1

Rs.73.92

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

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.