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MIRA INFORM REPORT
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Report No. : |
486680 |
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Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
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Name : |
ALEXANDRIA CARBON
BLACK CO SAE |
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Registered Office : |
Suez Canal Tower,
26th Floor, Apartment No. 2, 4 Ibn Khatir Street, Giza, Cairo |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
January, 1993 |
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Com. Reg. No.: |
134021 |
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Legal Form : |
Egyptian Joint
Stock Company |
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Line of Business : |
Manufacturers of
Carbon Black and Carbon Based Materials and Products. |
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No. of Employees : |
350 |
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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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.
Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment, which remains above 10%.
Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and on Gulf allies to help cover the import bill. In 2015-16, higher levels of foreign investment contributed to a slight rebound in GDP growth after a particularly depressed post-revolution period. In 2016, Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts, and floated its currency, which led to a sharp depreciation of the pound and corresponding inflation. In November 2016, the IMF approved a $12 billion, three-year loan for Egypt and disbursed the first $2.75 billion tranche.
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Source
: CIA |
SUMMARY
Company Name : ALEXANDRIA
CARBON BLACK CO SAE
Country of Origin : Egypt
Legal Form : Egyptian
Joint Stock Company
Registration Date : January 1993
Commercial
Registration Number : 134021
Issued Capital : £E
99,500,000
Paid up Capital : £E
99,500,000
Total Workforce :
350
Activities :
Manufacturers of carbon black and carbon based materials
and products
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
Person Interviewed : Moustafa El Kamash, Finance Manager
COMPANY
NAME
ALEXANDRIA CARBON
BLACK CO SAE
ADDRESS
Registered & Physical
Address
Building : Suez Canal Tower, 26th
Floor, Apartment No. 2
Street : 4 Ibn Khatir Street
Area : Giza
Town : Cairo
Country : Egypt
Telephone : (20-2) 33373870 / 33377975 / 33490078
Facsimile : (20-2) 37609174
Mobile : (20-122) 9148411 / (20-128)
1008408
Email : adm@acbc.com.eg / moustafa.elkamash@adityabirla.com
Premises
Subject operates from
a large suite of offices that are rented and located in the Central Business
Area of Cairo.
Branch Office
(s)
Location Description
·
Private
Free Zone Owned
factory premises covering an
Nahda Road area
of 170,000 square metres
Amreya
Alexandria 23511
Tel: (20-3) 4770102 / 4770107
Fax: (20-3) 4770110
KEY
PRINCIPALS
Name Position
·
Mohamed
Adel Ahmed El Danaf Chairman
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Ali
Hussain Al Shareef Director
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Adel El
Danaf Director
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Ayman Attia General
Manager
·
ariq
Farouq Human
Resources Manager
·
Atef El
Ashy Research
& Development Manager
·
Moustafa El Kamash Finance
Manager
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Giresh Abbot Purchasing
Manager
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Mikul Agrawal Technical
Manager
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Khalid Moustafa Export
Manager
·
Jasmin Anis Public
Relations Manager
LEGAL
FORM & OWNERS
Date of Establishment : January 1993
Legal Form :
Egyptian Joint Stock
Company
Commercial Reg. No. : 134021
Issued Capital : £E 99,500,000
Paid up Capital : £E 99,500,000
Name of Shareholder (s) Percentage
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Aditya
Birla Group 67.53%
Industry House, 1st Floor
159 Churchgate Reclamation
Mumbai 400020
India
Tel: (91-22) 2835382
Fax: (91-22) 2832020
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SKI
Investment 15.50%
Singapore
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Saudi
Egyptian for Industrial Investments 8.00%
Saudi Arabia
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Holding
for Engineering Industries 4.97%
Egypt
·
Nasr
Coke & Base Chemicals 4.00%
16 Sherif Street
Cairo
Tel: (20-2) 33924189 / 33921731
Fax: (20-2) 33933790
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 manufacture of carbon black
and carbon based materials and products.
Subject’s manufacturing plant went on stream in 1994 with the technical
participation of Continental Carbon Black of the US. Production capacity was
originally 20,000 tonnes which has now increased to 285,000 tonnes.
Subject was awarded
the ISO 9002 Certificate in 1995.
Production
Capacity: 200,000 tonnes
per annum
Clients:
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Malaya
Group of Companies India
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Goodyear
Tyres United
States of America
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Bridgestone Japan
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Pirelli Italy
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Dunlop
Tyres United
States of America
Import
Countries: United States of
America, Saudi Arabia and India
International
Suppliers:
·
B&A
Multiwall Packaging Ltd India
Export
Countries: Subject exports
approximately 90 percent of its total production to over 50 countries around
the world, particularly the United States of America, the United Kingdom,
France, Italy, Spain, Japan, India and Lebanon
Operating Trend: Steady
Subject has a
workforce of approximately 350 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: United
States Dollars (US$)
Year Sales
Year Ending
31/12/15: US$
180,000,000
Year Ending
31/12/16: US$
200,000,000
Local sources
consider subject’s financial condition to be Good.
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
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National
Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2) 33924175
Fax: (20-2) 33924143
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Commercial
International Bank (CIB)
Nile Tower Building
21-23 Giza Street
PO Box: 2430
Cairo
Tel: (20-2) 35703043
Fax: (20-2) 35703172 / 35072691
·
Banque
Misr
151 Mohamed Farid Street
Cairo
Tel: (20-2) 33912711 / 33912106
Fax: (20-2) 33919779
PAYMENT
HISTORY
Regular
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 Mr Moustafa El Kamash, Finance Manager, on 18/12/17
Alexandria Carbon
Black Co SAE was established in 1992 and is engaged in the manufacture of
carbon black and carbon based materials and products. It is the fastest growing
carbon black company in the world, exporting its products to over 50 countries.
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
Economic growth doubled (to 4.2 %) in FY15, after four years of slow
growth. Yet challenges remain, and were aggravated by the recent foreign
exchange crunch. Growth in FY15
(July 2014/June 2015) was attributed to the restoration of stability and
improved confidence, resilient private consumption, and the government’s public
investments that started to crowd in private investments. The first quarter of
FY16 witnessed subdued growth (of 3 %, from 5.6 % a year earlier), mainly due
to foreign exchange shortages that stifled production. The inadequacy of
foreign exchange along with an overvalued Pound hampered Egypt’s
competitiveness; lowering the volume of exports by 26 % in Q1-FY16.
Unemployment inched downwards (to 12.8 % in the H1-FY15 versus 13.3 % a year earlier),
albeit partially reflecting dropouts from the labour force. The labour force
participation rate dropped to 46 % of the adult population (those above 15
years old) versus 50 % at end-2010. Headline inflation eased slowly in
early-2016, reaching 9 % in February 2016, from an average of 11 % in the
previous three months. The Central Bank of Egypt (CBE) has recently started
tightening monetary policy to curb inflation, especially in light of the recent
exchange rate depreciation.
The CBE allowed the official exchange rate to weaken in mid-March as
pressures on external accounts intensified. Net international reserves (NIR) dropped in FY16, due to large debt
repayments, the unfavourable external environment, the recent crash of the
Russian airplane over Sinai, as well as the CBE’s ongoing injection of foreign
exchange to meet import needs and to clear forex backlogs. Thus, NIR declined
to just below $16.5 billion in October 2015, and has stabilized at this level
through end-February 2016. The CBE left the official exchange rate to weaken by
14.3 % on March 14, 2016, after the parallel market premium had surged to 18 %
above the official rate. The CBE held a later auction at a slightly stronger
exchange rate, but still signalled a move towards more flexibility.
The fiscal stance improved in FY15 due to key consolidation measures, but
the reform momentum has faded in FY16. The budget deficit reached 11.5 % of GDP in FY15 (compared to 12.2 %
of GDP in FY14, and 13 % of GDP in FY13), thanks to the partial streamlining of
energy subsidies, revenue-enhancement measures, and the drop in international
oil prices. This was achieved whilst the government raised allocations to
health, education, and infrastructure, in line with the constitutional mandate.
Yet, the reform pace has slowed down in FY16, as the energy subsidy reform
program was only partially implemented, and the ratification of the VAT and the
mining laws have been delayed.
The outlook is for GDP growth to slow down to 3.3 % in FY16, before rebounding
thereafter. A combination of
unfavourable domestic and external factors is undermining growth in FY16.
Important sectors have been underperforming, notably, the extractives which
continue to suffer from liquidity issues (accumulated arrears were recorded at
$3 billion in end-2015); and tourism, affected by the Russian plane crash last
October. Externally, the sluggish recovery of the Euro zone is expected to
weigh on Egypt’s growth, while the lower oil prices and slowdown in Gulf
countries might negatively impact Egyptians’ remittances; hence private
consumption. The deficit is expected to decline to 11.3 % of GDP in FY16, and
decline further in the medium term, with continued fiscal consolidation effort.
Egypt’s external accounts are likely to worsen in FY16 before recovering
afterwards, provided that monetary authorities continue to ease restrictions on
foreign exchange and re-align the exchange rate.
Key Economic
Indicators 2014 2015 2016* 2017*
Real GDP Growth (%) 2.2 4.2 3.3 4.2
Inflation Rate (%) 10.1 10.9 9.8 9.5
Fiscal Balance (%
of GDP) -12.2 -11.5 -11.3 -9.8
Current Account
Balance (% of GDP) -0.9 -3.7 -4.6 -4.6
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.41 |
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1 |
INR 87.18 |
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Euro |
1 |
INR 77.45 |
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EGP |
1 |
INR 3.61 |
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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VIV |
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Report Prepared
by : |
SYL |
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.