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MIRA INFORM REPORT
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Report No. : |
497011 |
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Report Date : |
14.03.2018 |
IDENTIFICATION DETAILS
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Name : |
ORIENTAL WEAVERS INTERNATIONAL SAE |
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Registered Office : |
Oriental Weavers Building, 8 Zakaria Khalil Street, Heliopolis, Cairo |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
1999 |
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Com. Reg. No.: |
1648 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject engaged in the manufacture and export of carpets, rugs,
polypropylene and polyester yarns |
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No. of Employees : |
4500 |
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 (30.09.2017) |
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, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will need to make a sustained effort to implement a range of business reforms, however, to induce foreign and local investment in manufacturing and other labor-intensive sectors.
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Source
: CIA |
SUMMARY
Company Name :
ORIENTAL WEAVERS INTERNATIONAL SAE
Country of Origin :
Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date :
1999
Commercial Registration Number :
1648
Authorised Capital :
US$ 150,000,000
Issued Capital : US$ 135,752,000
Paid up Capital :
US$ 135,752,000
Total Workforce :
4,500
Activities :
Manufacture and export of carpets, rugs polypropylene
and
polyester yarns
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
ORIENTAL WEAVERS INTERNATIONAL
SAE
ADDRESS
Registered & Physical Address
Building : Oriental
Weavers Building
Street : 8 Zakaria
Khalil Street
Area : Heliopolis
Town : Cairo
Country : Egypt
Telephone : (20-2) 22672121 / 22677515 / 22678226 / 22678225
Facsimile : (20-2)
22672241 / 22678000 / 22678240 / 22931217
Mobile : (20-122) 4299095 / (20-100) 1177722 / 5421111
Email : owi@internetegypt.com / rawmaterials@orientalweavers.com
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Cairo.
Branch Office (s)
Location Description
Plot A1, Third Industrial Zone Owned
factory premises
Private Free Zone
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 410811 / 412582 / 411137 / 411138 / 366666
Fax: (20-15) 411136 / 412081 / 364498
KEY
PRINCIPALS
Name Position
Salah Abd El Aziz Chairman
Mahmoud Fawzy Khamis Director
Farida Mohamed Farid Khamis Director
Yasmine Mohamed Farid Khamis Director
Mohamed Mahmoud Khamis Director
Amr Mamoud Fawzi Khamis Director
Kamal Ali Mahmoud El Raei Director
Mohamed Mohamed Shabaan Farag Director
Mohamed Qatary Director
Mahmoud Reda Abd El Baqi Director
Ahmed Beshr Director
Mohamed Abd El Rahman El Sharkawy Director
Arafat El Mahdy Alewa Director
Mahmoud Amin Saad Director
Wahid Abd El Ghaffar Director
Hassan Hashash Director
Abd El Hamid Fayed General
Manager
Mahmoud Amin Marketing Manager
Mohamed
Qatar Finance
Manager
Mohamed
Yousef Assistant
Finance Manager
Ms Engy El Diwani Investment
Relations Manager
Yousef Abdulaziz Costing
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1999
History : At the end of 2007 subject merged with
“Oriental Weaver Carpet Technology Center”.
Legal Form : Egyptian Joint
Stock Company
Commercial Reg. No. : 1648
Authorised Capital : US$ 150,000,000
Issued Capital : US$ 135,752,000
Paid up Capital : US$ 135,752,000
Name of Shareholder (s) Percentage
Oriental Weavers For Carpets SAE 98.96%
Oriental Weavers Building
8 Zakaria Khalil Street
Heliopolis
Cairo
Tel: (20-2) 22672121 / 22678226 / 22678225
Fax: (20-2) 22672241 / 22678240
Email: info@orientalweavers.com
Oriental Weavers Fibers 0.98%
Osman Moharam Street
First Industrial Zone A1
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 410167 / 410168 / 410169
Fax: (20-15) 410166
Mohamed Farid Khamis 0.05%
Farida Mohamed Farid Khamis 0.01%
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.
AFFILIATED
COMPANIES
Subject is a member of the Oriental Weavers Group, which consists of the
following concerns:
Misr American Carpets Mills (MAC)
28 Sherif Street
PO Box: 3163
Cairo
Tel: (20-2) 33928380 / 33938864
Fax: (20-2) 33931217
Email: intlmktg@maccarpet.com
Oriental Weavers for Urban Development
Oriental Weavers Building
Airport Area, Heliopolis
Cairo
Tel: (20-2) 22671716 / 22671718 / 22675351
Fax: (20-2) 22672248
Safa Industries Group
Industrial Zone B1
El Horreya Street
Sharkeya
PO Box: 69, El Asher
Tenth of Ramadan City
Tel: (20-15) 361969
Fax: (20-15) 363069
Egyptian Fibres EFCO
1st Industrial Zone A1, Area No. IIA
Osman Moharam Street
Sharkeya
PO Box: 188, El Asher
Tenth of Ramadan City
Tel: (20-15) 362287 / 362288
Fax: (20-15) 362286
Tenth of Ramadan Spinning Industries SAE
Industrial Zone A1, Area No. 3/3
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 363748
Fax: (20-15) 363746
Oriental International Trade
El Horreya Street
Industrial Zone B1, Area IXB
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 364703
Fax: (20-15) 364703
Seta Egypt SAE
2 El Bustan Street
Square 1112, Heliopolis
Cairo
Tel: (20-2) 22679122 / 22679133
Fax: (20-2) 22679144
Email: hq@setaegypt.com
Modern Carpet
Industrial Zone B1, Block No. VII
Osman Ibn Afan Street
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 366666
Fax: (20-15) 364498
OPERATIONS
Activities: Engaged in the manufacture and export of carpets, rugs, polypropylene and
polyester yarns.
Production
Capacity: 14.347 million square metres of weavings per year.
Import Countries: Middle East and Europe.
Export Countries: United States of America, Europe and Libya.
Operating Trend: Steady
Subject has a workforce of approximately 4,500 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (EGP)
Year sales
Year Ending 31/12/14: US$
341,604,518
Year Ending 31/12/15: US$
331,720,407
Year Ending 31/12/16: US$
291,386,701
Year Ending 31/12/17: US$
300,000,000
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
Export Development Bank of Egypt
1st District Centre
Group D
Sharkeya
10th of Ramadan City
Tel: (20-15) 367203
Fax: (20-15) 362638 / 362639
National Bank of Egypt
Sharkeya Branch
Tenth of Ramadan City
Tel: (20-15) 360833 / 360744 / 344144
Suez Canal Bank
14 Wadi El Nile Street
Nahda Square
Maadi
PO Box: 249
Cairo
Tel: (20-2) 33582681
Fax: (20-2) 33582274
Egyptian Gulf Bank
9 Abdel Khader Hamza Street
Garden City
Cairo
BNP Paribas Egypt
Bank Area
Senco Centre
10th of Ramadan City
Emirates National Bank of Dubai
Senco Centre
10th of Ramadan City
PAYMENT
HISTORY
Regular
Date of transaction April
2009
Credit amount 1,000,000
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
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 Yousef
Abdulaziz, Costing Manager
Oriental Weavers International is very well established in the local market
specialising in the manufacture and export of carpets, polypropylene and
polyester yarns.
Subject is run in a professional manner and is a member of the Oriental
Weavers Group, which enjoys an excellent reputation for the quality of its
work.
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.
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 64.96 |
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1 |
INR 90.23 |
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Euro |
1 |
INR 80.09 |
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UAE DH |
1 |
INR 17.70 |
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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DIV |
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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.