|
|
|
MIRA
INFORM REPORT
|
Report No. : |
506551 |
|
Report Date : |
03.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
AMRELI STEELS LIMITED |
|
|
|
|
Registered Office : |
A-18, S.I.T.E., Karachi |
|
|
|
|
Country : |
Pakistan |
|
|
|
|
Financials (as on) : |
30.06.2017 |
|
|
|
|
Date of Incorporation : |
1996 |
|
|
|
|
Com. Reg. No.: |
0012534 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject engaged in manufacture & sale of Steel Bars
& Billets |
|
|
|
|
No. of Employees : |
398 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
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 (30.09.2017) |
Current Rating (31.12.2017) |
|
Pakistan |
B1 |
B1 |
|
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 |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political disputes and low levels of foreign investment have led to underdevelopment in Pakistan. Pakistan has a large English-speaking population. A challenging security environment, electricity shortages, and a burdensome investment climate have deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for more than half of Pakistan's export earnings; Pakistan's failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan’s GDP growth has gradually increased since 2012. Official unemployment was 6% in 2017, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.
In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee, after heavy depreciation in 2013, remained relatively stable against the US dollar in 2015-17. Balance of payments concerns have reemerged, however, as a result of increased imports and declining remittances.
Pakistan must continue to address several longstanding issues, including expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, improving the country’s business environment, reducing dependence on foreign donors, and widening the country’s tax base. Given demographic challenges, Pakistan’s leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.
In an effort to boost development, Pakistan and China are implementing the “China-Pakistan Economic Corridor,” with $60 billion in investments targeted towards energy and other infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have raised IMF concern that capital outflows that will begin to increase in 2020.
|
Source
: CIA |
company name
|
Business
Name |
AMRELI
STEELS LIMITED |
Full Address
|
Registered Address |
|
A-18, S.I.T.E., Karachi,
Pakistan |
|
Tel # |
92 (21) 111-267-354, 32587232 - 39 (8 Lines) |
|
Fax # |
92 (21) 32587240 |
|
Website |
Short Description Of Business
|
a. |
Nature of Business |
Engaged in manufacture &
sale of Steel Bars & Billets |
|
b. |
Year Established |
1996 |
|
c. |
Registration # |
0012534 |
Factories Location
|
(1) D/89, S.I.T.E., Shershah
Road, Karachi, Pakistan. (2) Industrial Land Deh Gharo, Tapo Gharo, Taluka
Mirpur Sakro, District Thatta, Sindh, Pakistan. |
Auditors
EY Ford Rhodes
(Chartered Accountants)
Legal Status
|
Subject Company was established
as a Private Limited Company in 1996. In 2009 its legal status was changed to
Non-Listed Public Limited Company. In 2014 its legal status was changed to
Listed Public Limited Company |
Details of Directors
|
Names |
Occupation |
|
Mr. Abbas Akberali Mr. Shayan Akberali Mr. Badar Kazmi Mr. Zafar Ahmed Taji Mr. Teizoon Kisat Ms. Kinza Shayan Ms. Mariam Akberali |
Chairman
Chief
Executive Director Director Director Director Director |
Categories of Shareholders
|
Names |
Shareholding (%) |
|
List of Shareholders are attached in
separate file in PDF format |
|
Associated Companies
(1) Fatemi Wires, Pakistan.
(2) Steel Centre, Pakistan.
Business Activities
Engaged in manufacture & sale of Steel Bars &
Billets
Number of Employees
398
Plant Capacity & Actual Production
2017 2016
(Metric Tons)
Billets
Plant capacity - Estimated 200,000 200,000
Actual Production 163,778 168,852
Bars
Plant capacity - Estimated 180,000 180,000
Actual Production 158,206 148,988
The reason for lower capacity utilization is due to production of
different sizes according to sales mix.
Trade Suppliers (Foreign)
|
Subject import globally from
Companies belongs to Italy, France, U.K., Germany, Japan, Russia, China,
Korea, Taiwan & Singapore. Its global trade suppliers are Companies
related to Machineries, Raw Materials |
Annual Sales Turnover
|
Year |
In Pak Rupees |
|
2015 2016 2017 |
14,413,661,405/- 12,400,191,349/- 13,283,811,229/- |
Customers
|
Major customers are Traders, Dealers, Government Enterprises, Private Companies, Construction Companies deal with cash term basis |
Bankers
|
(1) Meezan Bank Limited, Pakistan. (2) Faysal Bank Limited, Pakistan. (3) Soneri Bank Limited, Pakistan. (4) Bank Alhabib Limited, Pakistan. (5) Habib Metropolitan Bank Limited,
Pakistan. (6) Silk Bank Limited, Pakistan. (7) Askari Bank Limited, Pakistan. (8) Summit Bank Limited, Pakistan. (9) Faysal Bank Limited, Pakistan. (10) Bank Alfalah Limited, Pakistan. |
Corporate Profile
The
Amreli family has been in the business of steel manufacturing for over 50
years. The founders of Amreli Steels came to Karachi in 1946 from a small town
called Amreli in India, and established themselves in Karachi dealing with
nails, screws, files, wires and other hardware items. They then started
manufacturing nails, rivets, screws and wires drawn from wire-rod. During the
70’s, the sponsors established a number of hot rolling mills to produce steel
bars, angles, T-iron and also started ship-breaking operations in 1973 for
using ship plates to roll into bars under the umbrella of Amreliwala Hardware
Industries. From 1973 onwards the younger generation started entering the
business after acquiring higher education and experience from world class
universities & steel companies in various fields of engineering and
management. By the early 80’s and with the advent of strong increase in the
demand for quality steels, the sponsors scrapped all its manual re-rolling
mills and imported a semi-automatic mill from the United Kingdom, manufactured
by Danieli - Italy, one of the world’s top manufacturers of steel equipment. In
1984 the sponsors converted Amreliwala Hardware Industries into a Private
Limited Company. In 1989 Amreliwala Hardware Industries became the first
company to introduce the concept of deformed steel bars in Pakistan, and soon
after the name of the company was changed to Amreli Steels (Pvt) Limited (ASL).
In 1993, ASL produced 50,000 metric tons of steel bars for the first time in
Pakistan’s history using European technology. The company’s conviction in using
the most modern re-rolling technology available in the world resulted in the
company installing a continuous mill train in 2007, which increased the
production capacity of the plant from 75,000 metric tons per annum to 180,000
metric tons per annum. Amreli was once again the first company to have a
capacity of this size. In 2008, ASL introduced Thermo Mechanical Treatment
technology in Pakistan for the first time which resulted in high strength
deformed bars being produced in the country. This was yet another milestone in
the company’s history. Moving ahead with technological advancements and
R&D, in 2009 Amreli added another feather to its cap by introducing earthquake
resistant rebars in Pakistan. Since its inception, Amreli Steels Limited has
managed to build its reputation as one of the most trusted and reliable
manufacturers of steel reinforcement bars in Pakistan. Not only does the
company take pride in it being the largest steel bar manufacturer in the
country, but the Amreli Steel brand has become synonymous with quality,
strength and durability, making it the preferred choice of industry
professionals today. ASL is a dynamic and a mission-driven company that
believes in strict adherence to its corporate values and code of ethics. Today,
ASL is the backbone that supports some of the mega structures of Pakistan
including famous landmarks, airports, infrastructures and other residential
projects. Jinnah International Airport, Allama Iqbal International Airport, Aga
Khan University and Hospital, MCB Tower, Ghazi Barotha Dam and the Northern
Bypass are just a few of many remarkable structures whose foundations were laid
with Amreli Steel’s re-bars and they continue to stand tall with pride as
integral monuments adding value to the skylines of this nation. The product
includes high strength deformed bars as per American and British
specifications. The high degree of automation enables materials to remain
untouched from the input stage of being fed into the reheating furnace upto the
final bundling stage. ASL products were earlier manufactured from prime quality
steel billets which were procured from Pakistan Steel Mills Limited (PSML).
Since procurement from PSML did not fulfill the company’s total raw material
demand, steel billets were also imported from different countries. The
management then decided to install a state-of-the-art Steel Melt Shop (SMS)
enabling continuous supply of raw material and ensuring quality output for its
products. It was with this objective that the management set up a steel melt
shop on 32 acres located in Dhabeji, 20 kms from Port Qasim. It was the first
Melt Shop in Pakistan having a capacity to produce 200,000 tons of high quality
billets. The SMS comprises of two induction furnaces, one Ladle Refining
Furnace and a two-strand continuous billet casting machine. ASL has spent
approximately US$40 Million on the project and commercial production of the
plant commenced on October 1st, 2011. Self-dependency of the company in its raw
material further enhanced its ability to produce the best quality product at an
affordable price. The SMS also provides the flexibility to produce the quality
and lengths of billets as per the rolling mill requirements. The management’s
vision for the future is to produce low alloy steel for the automotive industry
in the future. Being a trail blazer in Pakistan’s steel industry, Amreli Steels
is one of the few vertically integrated steel bars manufacturer, giving it the
liberty to ensure strict compliance with international standards. The company’s
billet manufacturing plant is installed with cutting edge technology and is the
largest in the country in terms of capacity. Continuously upgrading its
manufacturing process, Amreli Steels’ fully automated manufacturing plant is a
pioneer in producing 500 MPA High Strength Deformed Bars Xtreme G-500 and ASTM
Deformed bars – Grade 60, which are the mainstay of worldwide construction
today. ASL is very active in the CSR sphere where it supports (a) a complete
primary school of approximately 150 students in Achar Salaar (a small town near
the steel meltshop); (b) the Hunar Foundation, a state-of-the-art vocational
training institute certified by City and Guilds U.K; (c) the Amreli Foundation
which is running a full fledged ladies tailoring unit in Dhabeji.
Memberships
·
Karachi
Chamber of Commerce & Industry.(KCCI)
·
Federation Pakistan Chamber of Commerce & Industry.(FPCCI)
Comments
Subject Company was established in 1996 and is engaged in manufacture & sale of Steel Bars & Billets. Market reputation is sound. Directors are reported as qualified & experienced businessmen. In view of current disturbed economic and political situation, we would advise to deal with all the business in Pakistan with some caution.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.66 |
|
|
1 |
INR 91.66 |
|
Euro |
1 |
INR 81.01 |
|
PKR |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
KET |
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.