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MIRA INFORM REPORT
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Report No. : |
502274 |
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Report Date : |
11.04.2018 |
IDENTIFICATION DETAILS
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Name : |
NERHADOU INTERNATIONAL FOR PHARMACEUTICALS & NUTRACEUTICALS |
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Registered Office : |
Land No. 23-24-25, Extension of 6th Industrial Zone, 6th of
October City, Cairo |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
25.03.1996 |
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Com. Reg. No.: |
107738 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject Engaged in the production and distribution of vitamins,
hormones, hair and skin care products |
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No. of Employees : |
300 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Egypt |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EGYPT - ECONOMIC OVERVIEW
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity.
Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.
In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will need to make a sustained effort to implement a range of business reforms, however, to induce foreign and local investment in manufacturing and other labor-intensive sectors.
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Source
: CIA |
SUMMARY
Company
Name :
NERHADOU INTERNATIONAL FOR PHARMACEUTICALS &
NUTRACEUTICALS
Also
Known As :
NERHADOU INTERNATIONAL MOHSEN SHALABY AND PARTNERS
Country
of Origin :
Egypt
Legal
Form :
Egyptian Joint Stock Company
Registration
Date : 25th March 1996
Commercial
Registration Number : 107738
Issued
Capital :
£E 2,500,000
Paid
up Capital :
£E 2,500,000
Total
Workforce :
300
Activities :
Production and distribution of vitamins, hormones, hair and skin care
products
Financial
Condition :
Fair
Payments :
Regular
COMPANY
NAME
COMPANY
NAME:
NERHADOU INTERNATIONAL FOR PHARMACEUTICALS & NUTRACEUTICALS
ALSO KNOWN AS: NERHADOU INTERNATIONAL
MOHSEN SHALABY AND PARTNERS
ADDRESS
Registered
& Physical Address
Location : Land No. 23-24-25, Extension of 6th
Industrial Zone, 6th of October City
Town : Cairo
Country : Egypt
Telephone : (20-2) 38381702 / 38381703 / 38381705
/ 38381706 / 38243180
Facsimile : (20-2) 38361708
Mobile :
(20-127) 5199155 / (20-111) 7663131
Email :
info@nerhadou.com / maged_taher@nerhadu.com / maged_1978@yahoo.com
Please
note that subject’s previous address was, Block 1/15, Building 2, District 11,
West Sumed, 6th of October City, Giza, Cairo.
Premises
Subject
operates from a large suite of offices and a factory that are rented and
located in the Industrial Area of Cairo.
Branch
Office (s)
Location Description
11
Lebanon Street Rented
office and warehouse premises
Mohandessin
Giza
Cairo
9
Amed Samy Street Rented
office and warehouse premises
Mohandessin
Giza
Cairo
4
El Sbahy Street Rented
office and warehouse premises
El
Omranyia
Giza
Cairo
4
Al Yosser Street Rented
office and warehouse premises
Dokki
Giza
Cairo
KEY
PRINCIPALS
Name Position
Mohsen
Mohamed Mahmoud Shalaby Chairman
Reham
Mohsen Mohamed Mahmoud Shalaby Vice
Chairman
Nirvana
Mohsen Mohamed Mahmoud Shalaby Director
Mohamed Mohsen Mohamed Mahmoud Shalaby Director
Mohy
Mohsen Mohamed Mahmoud Shalaby Chief
Executive Officer
Maged
Taher Finance
Manager
Madiha
Mohsen Mohamed Mahmoud Shalaby Human
Resources Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 25th March 1996
Legal
Form : Egyptian Joint Stock Company
Commercial
Reg. No. : 107738
Issued
Capital : £E 2,500,000
Paid
up Capital : £E 2,500,000
Name
of Shareholder (s)
Mohsen
Mohamed Mahmoud Shalaby
Reham
Mohsen Mohamed Mahmoud Shalaby
Nirvana
Mohsen Mohamed Mahmoud Shalaby
Mohy
Mohsen Mohamed Mahmoud Shalaby
Mohamed Mohsen Mohamed Mahmoud Shalaby
Local
businessmen and private investors
Notes to the legal Form A Joint Stock Company (SAE) can be both a
public or private company the capital of which is divided into shares of equal
value; the liability of the shareholder is confined to the value of the shares
to which he subscribes, and he is not liable for the debts of the company
except within the limit of those shares. A JSC may be 100% owned by foreign
investors and there should be at least three shareholders. The minimum capital
of JSC companies is EGP 250,000 or EGP 500,000 if it is a public company.
OPERATIONS
Activities: Engaged in the production
and distribution of vitamins, hormones, hair and skin care products.
Import
Countries:
Germany, China and the United Kingdom
Suppliers:
Alcina
Alpecin
Sigma
Pharmaceutical Industries
Jedco
International Pharmaceutical Co
EIMC
United Pharmaceuticals
Local Clients:
Egyptian
Pharmaceutical Trading Co
Brand
Names:
CALCITRON, FERROTRON, ZINCTRON, HI-POTENCY, TRIB GOLD, ALPECIN and ALCINA
Subject
has a workforce of approximately 300 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
Egyptian Pounds (EGP)
Year sales
Year
Ending 31/12/17: EGP
35,000,000
Local
sources consider subject’s financial condition to be Fair.
Note: According to Egyptian Commercial Law, only
Joint Stock Companies SAE (Listed on the Stock Market) are required to publish
their financial information. Financial information on other legal forms can
only be obtained from the companies / businesses directly
BANKERS
QNB
Al Ahli Bank
30
Lebanon Street
Mohandessin
Giza
Cairo
PAYMENT
HISTORY
No
complaints regarding subject’s payments have been reported.
SANCTION
LIST CHECKS
The
subject and its shareholders have been checked in the following sanctions list
databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of
Financial Institutions (Canada) No
matches
OFAC - Specially Designated Nationals
(SDN) No
matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
GENERAL
COMMENTS
During
the course of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
- Interview with Maged Taher, Finance Manager
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.
COUNTRY
OUTLOOK
Recent Developments
The first quarter of FY17 (July to June) marked a slowdown
in growth recording 3.4 percent compared to 5.1 percent in the same quarter
last year, with annual growth in FY16 registering 4.3 percent. Growth was
constrained by severe shortages in hard currency, an overvalued exchange rate
and sluggish growth in Europe, Egypt’s main trading partner. Key sectors
continue to experience negative growth, particularly tourism and the oil and
gas extractives sector that has been suffering from underinvestment and
arrears.
The annual fiscal deficit in FY16 increased to 12.1
percent of GDP, up from 11 percent the year before. However, in the first half
of FY17 the deficit declined to 5.4 percent of GDP, down from 6.4 percent in
the same period last year. The improvement in the first half is solely driven
by a decline in total expenditures, which compensates for a drop in total
revenues. Lower expenditures were driven by a decrease in subsidies and public
wages as a percentage of GDP.
The most recent data for the first quarter of FY17
show an overall surplus in the balance of payments of 0.5 percent of projected
GDP, compared to a deficit of 1 percent during the same period of the previous
year. The improvement in external accounts was mainly due to the narrowing
trade deficit induced by an increase in merchandise exports (by 11.2 percent)
and a decline in merchandise imports (by 4.8 percent). Meanwhile, Suez Canal
receipts further deteriorated by 4.8 percent and net private transfers also
declined by 21.8 percent. As a result, the current account deficit widened to 1.4
percent of GDP compared to 1.1 percent in the same quarter of the previous
year. More positively, FDI inflows increased to US$1.9 billion over the same
period, up from US$1.4 billion the previous year.
To stimulate growth and address major macroeconomic
imbalances, the government embarked on a major economic reform program. The key
features include (i) the liberalization of the exchange rate regime; (ii)
fiscal consolidation through a combination of expenditure and revenue measures,
notably cuts in fuel subsidies, containment of the wage bill and introduction
of VAT; and (iii) reforms to the business environment and addressing
impediments to industrial activity.
The reform program was supported by an IMF Extended
Fund Facility of US$12 billion which contributes to cover Egypt’s financing
needs, the rest of which has been covered through disbursements under the World
Bank, the African Development Bank and a number of bilateral loans, in addition
to a recent issuance of Eurobonds in the amount of US$4 billion. Following the
floatation, the exchange rate displayed strong overshooting (hitting its
lowest rate of 19.5 in December compared to a
pre-float fixed rate of 8.8), but has subsequently strengthened as foreign
investor confidence picked up and backlogs of USD orders to finance imports
eased. Net international reserves reached US$26.4 billion at-end January (6
months’ imports), up from a pre-floatation level of US$19 billion.
Currency weakening has led to a sharp rise in
inflation, which reached its highest recorded level of 30.2 percent in February
2017. Following the currency floatation, the CBE increased interest rates by
300 basis points (bringing the cumulative increase to 550 basis points since
March 2016) to absorb excess liquidity and curb inflation. High inflation has
contributed to the aggravation of social conditions, given the persistently
high unemployment (12.6 percent in 2016). The recently adopted reform program
involves efforts to improve social safety nets, notably through the partial reallocation
of freed up resources from reduced energy and food subsidies; the expansion of
cash transfer programs; and an increase in the general pension budget by 15
percent. Nonetheless, the mitigation of recent adverse
shocks will continue to depend on an effective
targeting mechanism.
Outlook
GDP is expected to grow by 3.9 percent in FY17, and
will be largely driven by public investment and to some extent net exports.
Private investment is expected to pick up only in the second half of FY17,
supported by enhanced competitiveness following the depreciation of the
currency and the gradual implementation of business climate reforms. Tourism is
also expected to steadily recover on the back of a weaker currency. Yet, growth
will likely be undermined by slower growth of private consumption, which is
expected to be negatively affected by record high inflation rates. Prudent
monetary policy is projected to bring inflation down over the forecast horizon
after the one off effects of depreciation, subsidy reforms, and the
introduction of VAT dissipate.
The fiscal deficit is projected to narrow to 10.5
percent in FY17, contingent on the government’s commitment and ability to
sustain its fiscal consolidation plan. With the implementation of the VAT, the
expected increase in the VAT rate to 14 percent from the current 13 percent,
and efforts to improve tax collection, revenues are expected to improve, while
expenditures will continue to be contained.
The current account deficit is expected to start
improving in FY17, supported by a positive exchange rate effect and an increase
in remittances transferred through formal channels.
In the near term high inflation is likely to have
negative short-term effects on households. Current efforts to improve
targeting in the food smart-card program, currently
used to protect the vulnerable population from food price shocks and ensure a
minimum level of food security, could provide additional resources for an
improved safety net.
Risks and
challenges
Policy slippage and absence of real-sector reforms
may negatively impact the anticipated economic recovery. Deteriorating security
risks can adversely affect the recovery of the tourism sector, traditionally a
main source of revenue and foreign currency.
On the social front, resources from fuel subsidy
reform to be allocated to social programs may be lower than expected
due to currency depreciation, but efforts should
continue to improve the efficiency of the safety net system. Sustained high unemployment
may lower households’ ability to improve their living conditions.
Key
Economic Indicators 2014 2015 2016* 2017* 2018 2019
Real
GDP Growth (%) 2.9 4.4 4.3 3.9 4.6 5.3
Inflation
Rate (%)
10.1 10.4 10.2 20.1 14.2 11.3
Current
Account Balance (% of GDP) -0.9 -3.8 -6.1 -5.5
-4.4 -3.8
Fiscal
Balance (% of GDP) -11.5 -11.0 -12.1 -10.5
-9.2 -7.3
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.94 |
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1 |
INR 91.75 |
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Euro |
1 |
INR 79.90 |
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EGP |
1 |
INR 3.69 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.