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MIRA INFORM REPORT
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Report No. : |
483687 |
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Report Date : |
02.01.2018 |
IDENTIFICATION DETAILS
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Name : |
BAHWAN ENGINEERING CO LLC (BEC) |
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Registered Office : |
Bahwan Centre Sultan Qaboos Street Al Ghoubra, Ruwi PO Box 703 Muscat 112 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
19.01.1977 |
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Com. Reg. No.: |
1/04638/1 |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject’s operations are performed through the following
divisions: ·
Oil, Gas
& Power Projects Division 1)
400/220kV Substation Project (1st 400kV Project for BEC) 2)
220kV Substation Project ·
Mechanical
& Electrical Construction Division ·
Instrumentation
Division ·
Water And
Waste Water Treatment Division ·
Civil
Construction Division ·
Elevators
& Escalators Division ·
Diesel
Power Generation Division ·
Mechanical
& Electrical Products Division · BEC
Facilities Management & Maintenance Division |
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No. of Employees : |
13,000 |
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+ |
Low Risk |
Business dealings permissible with low
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 (30.06.2017) |
Current Rating (30.09.2017) |
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Oman |
A2 |
A2 |
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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 |
OMAN - ECONOMIC
OVERVIEW
Oman is heavily dependent on its dwindling oil resources, which generate 84% of government revenue. In 2016, low global oil prices drove Oman’s budget deficit to $11.5 billion, or approximately 19% of GDP. Oman has limited foreign assets and is issuing debt to cover its deficit.
Oman is using enhanced oil recovery techniques to boost production, but has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP from 46% at present to 9% by 2020 in accordance with Oman’s ninth five-year development plan. Tourism and gas-based industries are key components of the government's diversification strategy.
Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits — that had increased in the wake of the 2011 Arab Spring — have challenged the government's ability to effectively balance its budget in light of low export oil prices. In response, Omani officials imposed austerity measures to its gasoline and diesel subsidies in 2016, with further subsidy cuts planned for electricity and liquid petroleum gas. The spending cuts have faced some public opposition, which could hinder their implementation.
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Source
: CIA |
SUMMARY
Company Name : BAHWAN ENGINEERING CO LLC (BEC)
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 19th January 1977
Commercial Registration Number : 1/04638/1, Muscat
Chamber Membership Number : 190
Issued Capital : RO 565,000
Paid up Capital : RO 565,000
Total Workforce : 13,000
Activities : Subject operates several divisions (see below for details)
Financial Condition : Good
Payments : Regular
Operating Trend : Steady
Person Interviewed : Shamseddine Sheikh, Financial Controller
COMPANY
NAME
BAHWAN ENGINEERING CO
LLC (BEC)
ADDRESS
Registered &
Physical Address
Building :
Bahwan Centre
Street :
Sultan Qaboos Street
Area :
Al Ghoubra, Ruwi
PO Box :
703
Town :
Muscat 112
Country : Sultanate of
Oman
Telephone :
(968) 24597510 / 24594702 / 24597515 / 24597527
Facsimile :
(968) 24597511
Mobile :
(968) 99207516
Email : becoman@becoman.com
/ becho@omantel.net.om
/ ananthan.finance@becoman.com
Premises
Subject operates from a large suite of offices that are
owned and located in the Central Business Area of Muscat.
Branch Office (s)
Location Description
· PO
Box: 2896 Office
premises
Salalah
Tel:
(968) 23292692
Fax:
(968) 23292254
· PO Box:
25173 Office
premises
Dubai
United
Arab Emirates
Tel:
(971-4) 3475878
Fax:
(971-4) 3471855
· PO
Box: 31747 Office
premises
Abu
Dhabi
United
Arab Emirates
Tel:
(971-2) 6414316
Fax:
(971-2) 6414317
Subject also operates offices located
in Wadi Kabir, Azaiba, Seeb Souk, Ibri, Nizwa, Barka, Ibra, Sohar and Sur.
KEY
PRINCIPALS
Name Position
· Sheikh Suhail Salem Abdullah Bahwan Managing
Director
· Omar Suhail Salem Abdullah Bahwan Director
· Othman Suhail Salem Abdullah Bahwan Director
· Ali Suhail Salem Abdullah Bahwan Director
· C K
Khanna General
Manager
· Shamseddine
Sheikh Financial
Controller
· Ajit
Walvakar Chief
Operating Officer
· Padamabhan
Ananthan Chief
Financial Officer
· Santosh
Nair Commercial
Manager
· Goss
Ahmed Legal
Manager
· Chandra Mulay Assistant
Finance Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 19th
January 1977
Legal
Form : Limited
Liability Company – LLC
Commercial
Reg. No. : 1/04638/1, Muscat
Chamber
Member No. : 190
Issued Capital : RO
565,000
Paid up Capital :
RO 565,000
Name of Shareholder (s) Percentage
· Omar Suhail Salem Abdullah Bahwan 34%
· Othman Suhail Salem Abdullah Bahwan 33%
· Ali Suhail Salem Abdullah Bahwan 33%
AFFILIATED
COMPANIES
Subject is a member of the well known
Suhail & Saud Bahwan group of companies that comprises the following
concerns:
· Al
Gaddag Engineering LLC
PO
Box: 168
Muscat
Tel:
(968) 24712470
· Suhail
& Saud Bahwan Building Materials LLC
PO Box: 169
Muscat
Tel: (968) 24797581
Fax: (968) 24797169
· Suhail
& Saud Bahwan Building Materials LLC
Al Qurum District
PO Box: 3168 / 703, Ruwi 112
Muscat
Tel:
(968) 24700983 / 24793741 / 24561377
Fax:
(968) 24793755
· Amiantit
Oman SAO
PO
Box: 1417
Seeb
Tel:
(968) 25626600
· Arab
Merchants Co LLC
PO
Box: 6228
Muscat
Tel:
(968) 24701221
· Arabian
Car Marketing Co LLC
PO
Box: 169
Muscat
Tel:
(968) 24793741
Fax:
(968) 24796158
· Arabian
Caravans Furnishing & Trading Co LLC
PO Box: 169
Muscat
Tel: (968) 24797596
Fax: (968) 24562089
· Auto
Parts Centre LLC
PO
Box: 2619
Muscat
Tel:
(968) 24564308
Fax:
(968) 24564309
· Automobile
Automotive Centre
PO
Box: 6168
Muscat
Tel:
(968) 24561377
Fax:
(968) 24561631
· Bahwan
Contracting Company LLC
PO
Box: 4098
Muscat
Tel: (968)
24591092
Fax:
(968) 24591098
· Bahwan
Foods (Khalijana) Co LLC
PO
Box: 3711
Muscat
Tel:
(968) 24592492
· Bahwan
Travel Agencies LLC
PO
Box: 282
Muscat
Tel:
(968) 24740455
Fax:
(968) 24700483
· Bahwan
Trading Company LLC
Suhail Bahwan Building
Ruwi
PO Box: 169 & 2
Muscat 113
Tel: (968) 24793750 / 24793741
Fax: (968) 24796158
· Delta
Ltd
PO
Box: 4537
Muscat
Tel:
(968) 24708483
· Ebin
Rushed Pharmacy Co LLC
PO
Box: 169
Muscat
Tel:
(968) 24701557
Fax:
(968) 24701547
· International
Equipment & Contracting Co LLC
PO
Box: 169
Muscat
Tel:
(968) 24714482
Fax:
(968) 24793755
· National
Crushers
PO
Box: 961
Muscat
Tel:
(968) 24591461
· Rent-A-Car
LLC
PO
Box: 282
Muscat
Tel:
(968) 24561427
Fax:
(968) 24700483
· Utmost
Building Materials Co LLC
Al Burj
Building, 1st Floor
Deira
PO
Box: 55014
Dubai
United
Arab Emirates
Tel:
(971-4) 3553883
Fax:
(971-4) 3553776
· Gulf
Mercantile Trading
Al
Burj Building, 1st Floor
Deira
PO
Box: 55014
Dubai
United
Arab Emirates
Tel:
(971-4) 3553883
Fax:
(971-4) 3553776
·
Mercantile
Information & Telecommunication Technology Est (MITTE)
Sheikha
Aisha Building
Al
Salam Street
PO
Box: 41175
Abu
Dhabi
United
Arab Emirates
Tel:
(971-2) 6458909
Fax:
(971-2) 6458907
· Al
Mutawah Trading Co LLC
Al Mutawah Building
Sultan Qaboos Street
Al Ghobra
PO Box: 17, Muttrah 114
Muscat
Tel: (968) 24591871 / 591872 /
591521
Fax: (968) 24592370
· Al
Omaniya Automobile Marketing LLC
PO
Box: 2619
Seeb
Tel:
(968) 25560925
Fax:
(968) 25564309
· Arabian
Engineering Services LLC
PO
Box: 6000
Muscat
Tel:
(968) 24561377
Fax:
(968) 24561631
· Bilad
(Oman) LLC
PO
Box: 42006
Rusayl
Tel:
(968) 24626001
Fax:
(968) 24591098
· Electronics
Company LLC
PO
Box: 8111
Muttrah
Tel:
(968) 24793741
Fax:
(968) 24796158
· Inma
Company Oman LLC
PO
Box: 3760
Muscat
Tel:
(968) 24562100
Fax:
(968) 24562039
· Port
Services Corp SAOG
PO
Box: 133
Muscat
Tel:
(968) 24714001
Fax:
(968) 24714007
· Qurum
Contractors LLC
PO
Box: 7003
Muscat
Tel:
(968) 24562720
· Sogex
Oman LLC
PO
Box: 4739
Muscat
Tel:
(968) 24563055
Fax: (968)
24564608
· Universal
Engineering Services LLC
PO
Box: 2688
Muscat
Tel:
(968) 24597531
Fax:
(968) 24597514
· Bahwan
Contracting Company LLC
PO
Box: 1098
Muscat
Tel:
(968) 24591092
Fax:
(968) 24591098
· Multitech
LLC
Muscat
OPERATIONS
Activities: Subject’s operations are performed
through the following divisions:
·
Oil, Gas & Power Projects Division
These operations
encompass several aspects of engineering construction on a turnkey basis
comprising Design, Supply, Installation, Testing, Commissioning and
Maintenance. Projects include installations related to large power houses
comprising 132KV Transmission Lines, Indoor and Outdoor Gas Insulated
Switchgears and 132KV live line washing.
In September 2015, OETC Awards Electrical Projects Division
2 High Value Projects on the same day:
1)
400/220kV Substation
Project (1st 400kV Project for BEC)
This design and build project for major 400/220kV substation
will be evacuating total power of upcoming 400kV Ibri IPP.
This is strategically important to BEC as with this project
BEC has entered into the elite league of international EPC contractors capable
of executing 400kV substation projects and will notch up our credentials and
reputation locally and internationally.
Project involves high end equipment like 400kV and 220kV Gas
Insulated switchgears, 500MVA transformers and all other aux., control and
automation systems.
2)
220kV Substation Project
This design and build project for 220kV substation at
Mabella will be connecting 220kV and 132kV grids of OETC.
In August 2016, PDO awarded the subject a large EPC Contract
for the Saih Rawl Power Station Project. This project comprises conversion of
existing Open Cycle Power Plant to Combined Cycle Power Plant on Engineering,
Procurement, Construction, Commissioning and Initial Operation Basis. It
involves Heat Recovery Steam Generator, Steam Turbine Generator, Integration
with existing Gas Turbine Generator and the Balance of Plant.
·
Mechanical & Electrical
Construction Division
Building
Services Division has diverse experience in executing Mechanical &
Electrical installations for Hotels, Hospitals, Airports, Palaces, Ministry
& Bank Headquarters, Commercial Complexes and Industrial Projects. The
division is geared to execute installation of Central Air Conditioning Systems,
Plumbing & Sanitation, Electrical and specialised systems like Medical
Gases, Nurse Call, Incinerators, Surgical Panels, Operation Theatre Lighting,
Fire Alarm, Vaccum & Compressed Air, Boilers, Kitchen & Laundry
equipment, Building Management Systems
·
Instrumentation Division
Engaged
in planning, Installation, Testing and pre-commissioning of industrial projects
in Control, Automation and Instrumentation construction projects. It also undertakes
small / medium projects on Engineering, Procurement and Construction basis (
EPC ) to construction of large projects of 10,000 and more loops in Oil&
Gas, Power, Water sector.
·
Water And Waste Water Treatment
Division
Water
and waste water treatment operations offer construction solutions &
maintenance for Desalination Plants & Sewage Treatment Plants. The division
also executes indoor and outdoor Reverse Osmosis Plants for specialised uses
such as hospitals & Industrial Projects
·
Civil Construction Division
Established
in 1975, this division specialises in total project management of Industrial
Projects, Commercial Buildings, Residential Buildings, Schools and Mosques.
·
Elevators & Escalators Division
This
division undertakes projects involving supply, installation and maintenance of
elevators and escalators on turnkey basis. The division is also involved in
installing equipment such as Dock lavelers, Lifting Platforms, Special Freight
Platforms, Scissor Lift Platforms for Airports and EOT Cranes. Some of the
large projects include installation of Trav-O-lator, the longest inclined
walkway in the Gulf; 13 hospital elevators and 5 passenger elevators with VVVF
Drive for Sohar Hospital, Oman and fastest moving (2.5 meters per second)
Elevators for National bank of Oman headquarters.
·
Diesel Power Generation Division
This
operation integrates supply, installation, commissioning and maintenance of
diesel power generation projects.
·
Mechanical & Electrical Products
Division
The mechanical
products division's portfolio encompasses trading in products covering the
broad spectrum of the Building Services Industry. From Air-conditioning to
Heating, Ventilation, Filtration, Building Management Systems, Piping &
Valves, to Air Distribution, the Division represents more than 30 Principals
worldwide.
· BEC Facilities Management &
Maintenance Division
BEC
ensures satisfactory performance of the installations with Planned Preventive
Maintenance schedules, which reduces the Down Time to the minimum. This
division employs 900 people.
In December 2015, Oman Airport Management Company
(OAMC) awards BEC Facilities Management & Maintenance Division a contract
for Salalah Airport.
The Significant Project includes Operation &
Maintenance Services of
BEC is already carrying out the Operation &
Maintenance of Muscat International Airport and this repeated order from OAMC
demonstrates their trust and BEC’s strength & capability in this sector.
Import Countries: Europe, Asia and the United
States of America
Operating Trend: Steady
Subject has a workforce of approximately 13,000 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given
below:
Currency: Riyal Omani (RO)
Year
Ending 31/12/15: Year Ending
31/12/16:
Total
Sales RO
298,000,000 RO 305,000,000
Local sources consider subject’s financial condition to be
Good.
The above financial figures are based
on estimations by our local sources.
BANKERS
·
Oman Arab Bank
Muttrah
Business District
PO
Box: 2010, Ruwi 112
Muscat
Tel:
(968) 24700161 / 24706265 / 24706267
Fax:
(968) 24797736
·
Oman International Bank
Al
Jaame Street
PO
Box: 4216
Muscat
Tel:
(968) 24703614 / 24707328 / 24793450
·
HSBC Bank Middle East
Muttrah
Business District
PO
Box: 240, Ruwi 112
Muscat
Tel:
(968) 24700810 / 24799920 / 24799927
Fax:
(968) 24704241
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
Please note that the correct name of the subject is “Bahwan Engineering
Co LLC (BEC)” and not “Bhawan Engineering Company Ltd”.
Bahwan Engineering Co LLC (BEC) is a leading concern in Oman
and a member of the Suhail & Saud Bahwan group of companies, which is a
major player in the Omani economy with over 30 diversified concerns.
The subject and its shareholders/owners have been searched
in the following databases; Office of Foreign Assets Control (OFAC), United
Nations Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
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 |
INR 63.67 |
|
|
1 |
INR 85.90 |
|
Euro |
1 |
INR 75.47 |
|
OMR |
1 |
INR 164.98 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.