3decades

MIRA INFORM REPORT

Report No. :	485164
Report Date :	11.01.2018

IDENTIFICATION DETAILS

Name :	PRODALAM SA

Registered Office :	Alberto Pepper No. 1610, Renca, Santiago

Country :	Chile

Date of Incorporation :	02.02.1978

Legal Form :	Stock Company

Line of Business :	Import, purchase and sale of products, solutions and inputs for agriculture, construction, industry, distribution and mining. Main products include wires, steel, fences, concrete reinforcement and inputs for agriculture and industry.

No. of Employees :	300 Approx.

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Chile

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

CHILE - ECONOMIC OVERVIEW

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some 60% of total exports. Copper is Chile’s top export and provides 20% of government revenue.

From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to an estimated 1.7% in 2016. A continued drop in copper prices prompted Chile to experience its second consecutive year of slow growth, elevated inflation, and a depreciating currency.

Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, effective 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the EU, Mercosur, China, India, South Korea, and Mexico. In May 2010, Chile signed the OECD Convention, becoming the first South American country to join the OECD. In October 2015, Chile signed the Trans-Pacific Partnership trade agreement.

The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 October 2016, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $23.5 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn.

In 2014, President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile’s GDP, mostly by increasing corporate tax rates to OECD averages.

Source : CIA

CONFIDENTIAL REPORT

COMPANY NAME	PRODALAM SA
TAX ID. TYPE	RUT
TAX ID. NUMBER	93.772.000-9
CURRENT STATUS	Active
MAIN ADDRESS	Alberto Pepper No. 1610, Renca
CITY/PROVINCE/STATE	Santiago
PHONE NUMBER(S)	(56-2) 2685.1000
EMAIL	mnoranbuena@prodalam.cl
REMARKS OF IDENTIFICATION	No website was found. This report was requested address: Grajales 2550 Santiago Centro. Santiago, Chile. Please notice that the correct address is shown above.

CREDIT OPINION

Commercial company that is part of a renowned Belgian group. It seems to operate satisfactorily in a competitive market. No detrimental were found.

PAYMENT RECORDS

Regular

LEGAL INFORMATION

TYPE OF COMPANY	Stock Company
INCORPORATION DATE	02/02/1978
CITY OF REGISTRATION	Santiago
REGISTRY NUMBER	Page 1290, No. 651 of the Business Registry of Santiago (1978)
TERM	Unlimited
INITIAL CAPITAL	Ps$8,174,800.00 Chilean Pesos
PAID-UP CAPITAL	Ps$1,981,157,858.00 Chilean Pesos
LAST CAPITAL INCREASE	12/03/2012 (Notary Antonieta Mendoza E.)
LISTED AT STOCK EXCHANGE	NO

BACKGROUND.-

The company was initially established as PRODUCTOS DE ALAMBRE PRODALAM SA. Then, by Deed dated January 28^th, 2003 the company name was modified to the current one.

COMMENTS ON RELATED COMPANIES.-

The company is part of the Belgian group BEKAERT, which is composed of the following firms:

RELATED COMPANIES
COMPANY NAME	TAX ID. NUMBER	COUNTRY
BEKAERT CORPORATION		USA
BEKAERT GUATEMALA SA	NIT 6982619-6	GUATEMALA
IDEAL ALAMBREC SA	RUC 1790050947001	ECUADOR
INDUSTRIAS CHILENAS DE ALAMBRE INCHALAM SA	RUT 91.868.000-4	CHILE
N.V. BEKAERT SA		BELGIUM
PROCEROS SA		CHILE
PRODUCTORA DE ALAMBRES COLOMBIANOS SA – PROALCO SA		COLOMBIA
PRODUCTOS DE ACERO CASSADÓ SA	RUC 20254053822	PERU

BOARD OF DIRECTORS, SENIOR EXECUTIVES AND SHAREHOLDERS

NAME	JOB TITLE	STAKE
MONCADA MELET, RODRIGO E.	General Manager
CARDENES ESPINOZA, PABLO	Proxy
AGUAYO MUÑOZ, VICTOR A.	Proxy
NORANBUENA, MANUEL	Chief of Credits

OPERATIONS

SECTOR	G- Wholesale and Retail; Repair of Motor Vehicles and Motorcycles
ACTIVITY	Sale of products, solutions and inputs
ISIC CATEGORY	46- Wholesale, except for motor vehicles and motorcycles
ISIC CLASS	4690- Non-specialized wholesale
MAIN ACTIVITY	Import, purchase and sale of products, solutions and inputs for agriculture, construction, industry, distribution and mining. Main products include wires, steel, fences, concrete reinforcement and inputs for agriculture and industry. Brands it trades: “PRO”, “COMBIARIALDO”, “LOCINOX”, “DURABOARD”, “VOLCAN”, “SHELL”, “TYROLIT”, “JET” (thinners), “GRIPPLE”, “INCHALAM”, “MACCAFERRI”, “DEWAL”.
% SALES IN CASH	20%
% SALES ON CREDIT	80% (terms at 30, 60 days)
% TERRITORY OF SALES	98% (nationwide)
% FOREIGN SALES	2%
% DOMESTIC PURCHASES	30%
% FOREIGN PURCHASES	70%
N. OF EMPLOYEES	300 Approx.

LOCATION.-

ADMINISTRATIVE & SALES OFFICES: Located at the heading address, in semi-industrial zone of the city. Three-story premises in good condition.

It has a network of 31 branches from Iquique to Punta Arenas. Some of them are situated in:

- Vicuña Mackenna No. 797, Arica.

- Avenida Sotomayor No. 2273, Iquique.

- Ruta A-16 No. 4550, Alto Hospicio.

- Camino Chiu Chiu, Sitio 35, Sector Puerto Seco, Calama.

- Avenida del Agua No. 15320, Parque Industrial La Portada, Antofagasta.

- Copayapu No. 2976, Copiapó.

- Las Palmeras No. 520, La Serena.

- Calle Cinco No. 1251, Galpón 7 y 8, Barrio Industrial, Coquimbo.

- Calle Antofagasta No. 1135, Barrio Industrial, Ovalle.

Likewise, it has (03) distribution centers in Antofagasta, Santiago and Talcahuano.

COMMENTS AS TO OPERATIONS.-

It operates under B2B modality (Business to Business).

It has a portfolio of almost 1,000 clients.

Main competitors:

- EASY SA

- HOCHSCHILD

- INCHALAM SA

- MOLY-COP CHILE SA, among others.

It imports from nails, points, ropes, manufactures of iron or steel wires, among others. Imports are made against direct credit at 30 and 60 days.

It exports iron or steel manufactures, wires of circular section, piping accessories, among others.

FOREIGN TRADE

	IMPORTS
YEAR	2017 (January – November)
AMOUNT	US$39,831,710.08
COUNTRIES	China, Brazil, Argentina, Italy, Spain, Turkey, USA, South Korea, India, Belgium
NUMBER OF OPERATIONS	490

	IMPORTS
YEAR	2016
AMOUNT	US$19,272,537.95
COUNTRIES	China, Brazil, Argentina, Italy, Spain, Turkey, USA, South Korea, India, Belgium
NUMBER OF OPERATIONS	245

	IMPORTS
YEAR	2015
AMOUNT	US$21,713,674.09
COUNTRIES	China, Brazil, Argentina, Italy, Spain, Turkey, USA, South Korea, India, Belgium
NUMBER OF OPERATIONS	276

	IMPORTS
YEAR	2014
AMOUNT	US$57,000,505.60
COUNTRIES	China, Brazil, Argentina, Italy, Spain, Turkey, USA, South Korea, India, Belgium
NUMBER OF OPERATIONS	519

	IMPORTS
YEAR	2013
AMOUNT	US$53,070,969.08
COUNTRIES	China, Brazil, Argentina, Italy, Spain, Turkey, USA, South Korea, India, Belgium
NUMBER OF OPERATIONS	649

	EXPORTS
YEAR	2017 (January – November)
AMOUNT	US$394,899.00
COUNTRIES	Argentina
NUMBER OF OPERATIONS	2

	EXPORTS
YEAR	2016
AMOUNT	US$112,812.40
COUNTRIES	Argentina, Peru
NUMBER OF OPERATIONS	3

	EXPORTS
YEAR	2013
AMOUNT	US$53,493.26
COUNTRIES	Bolivia, Peru
NUMBER OF OPERATIONS	2

FINANCIAL INFORMATION

In recent interview, Mr. Manuel Noranbuena (Chief of Credits) furnished commercial information about the company, except for financial statements on grounds of confidentiality.

No financial statements were obtained through outside sources.

INSURANCE.-

No insurance policies were reported.

PAYMENTS REFERENCES

SUPPLIER	NATIONAL
START OF THE BUSINESS	Several years ago
CREDIT LIMIT	No current operations limit
CREDIT TERMS	Invoices at 15 days
PRODUCTS/SERVICES	Not specified
RATING	PROMPT
RATING COMMENTS	Good client. Payments through bank transfers. Supplier: CIA. INDUSTRIAL EL VOLCAN SA

SUPPLIER	NATIONAL
START OF THE BUSINESS	Several years ago
CREDIT LIMIT	No current operations limit
CREDIT TERMS	Invoices at 15, 30 days
PRODUCTS/SERVICES	Not specified
RATING	PROMPT
RATING COMMENTS	Good client. Payments through bank transfers. Supplier: CIA. SIDERURGICA HUACHIPATO SA

SUPPLIER	NATIONAL
START OF THE BUSINESS	Several years ago
CREDIT LIMIT	Confidential
CREDIT TERMS	Not specified
PRODUCTS/SERVICES	Not specified
RATING	PROMPT
RATING COMMENTS	Good client. Supplier: INCHALAM SA

LOCAL SUPPLIERS	Phone Number	Contact Name
CIA. INDUSTRIAL EL VOLCAN SA	(56-2) 2483.0500	Luis Arias
CIA. SIDERURGICA HUACHIPATO SA	(56-41) 250.2697	Roberto Canova
FORMAC SA	(56-2) 2484.9000	Dalia Dalindez
INCHALAM SA	(56-41) 226.7602	María Díaz
MACCAFERRI DE CHILE LTDA.	(56-2) 2940.2347	Ricardo Lanz

FOREIGN SUPPLIERS	Country	Phone Number
FAAC SPA	Italy	(39-51) 61724
FORMIPAC AND MINSTER FILMS	Belgium
UAB TRIKDIS	Lithuania	(370-37) 408.040

COMMENTS OF SUPPLIERS.-

Other consulted suppliers do not provide trade references on grounds of confidentiality.

BANKS

Bank Name	Country
BANCO DE CHILE SA	Chile
BANCO DE CREDITO E INVERSIONES SA	Chile
SCOTIABANK CHILE SA	Chile

BANK REFERENCES

Consulted banks do not provide information of their clients on grounds of confidentiality.

LITIGATIONS

No lawsuits were filed against the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.83
UK Pound	1	INR 86.28
Euro	1	INR 76.14
CLP	1	INR 0.10

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI

Report Prepared by :	TPT

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)

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.