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MIRA INFORM REPORT
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Report No. : |
510766 |
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Report Date : |
23.05.2018 |
IDENTIFICATION DETAILS
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Name : |
UNITED PHARMACEUTICALS MANUFACTURING CO LTD (UPM) |
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Registered Office : |
United Pharmaceutical Building Housing Public Street PO
Box 69 Amman 11591 |
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Country : |
Jordan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
08.06.1989 |
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Com. Reg. No.: |
2161 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the manufacture of pharmaceutical
preparations. |
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No. of Employees : |
2161 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
US$ 1,000,000 |
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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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Jordan |
B1 |
B1 |
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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 |
JORDAN - ECONOMIC
OVERVIEW
Jordan's economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources, underlying the government's heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of poverty, unemployment and underemployment, budget and current account deficits, and government debt.
King ABDALLAH, during the first decade of the 2000s, implemented significant economic reforms, such as expanding foreign trade and privatizing state-owned companies that attracted foreign investment and contributed to average annual economic growth of 8% for 2004 through 2008. The global economic slowdown and regional turmoil contributed to slower growth from 2010 to 2017 - with growth averaging 2.6% per year - and hurt export-oriented sectors, construction, and tourism. Since the onset of the civil war in Syria and resulting refugee crisis, one of Jordan’s most pressing socioeconomic challenges has been managing the influx of 650,000 UN-registered refugees, more than 80% of whom live in Jordan’s urban areas. Jordan’s own official census estimated the refugee number at 1.3 million as of early 2016.
Jordan is nearly completely dependent on imported energy—mostly natural gas—and energy consistently makes up 25-30 percent of Jordan’s imports. To diversify its energy mix, Jordan has secured several contracts for liquefied natural gas and is currently exploring nuclear power generation, exploitation of abundant oil shale reserves and renewable technologies, as well as the import of Israeli offshore gas. In August 2016, Jordan and the IMF agreed to a $723 million Extended Fund Facility that aims to build on the three-year, $2.1 billion IMF program that ended in August 2015 with the goal of helping Jordan correct budgetary and balance of payments imbalances.
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Source
: CIA |
SUMMARY
Company Name : UNITED PHARMACEUTICALS MANUFACTURING CO LTD (UPM)
Country of Origin : Jordan
Legal Form : Limited Liability Company
Registration Date : 8th June 1989
Commercial Registration Number : 2161, Amman
Membership Number : 5950
National ID Number : 200004648
Issued Capital : JD 3,000,000
Paid up Capital : JD 3,000,000
Total Workforce : 450
Activities : Manufacturers of pharmaceutical preparations
Financial Condition : Fair
Payments : Regular
Operating Trend : Steady
Recommended Credit Limit : US$ 1,000,000
COMPANY
NAME
UNITED
PHARMACEUTICALS MANUFACTURING CO LTD (UPM)
ADDRESS
Registered &
Physical Address
Building :
United Pharmaceutical Building
Street :
Housing Public Street
PO Box :
69
Town :
Amman 11591
Country :
Jordan
Telephone :
(962-6) 4640771
Facsimile :
(962-6) 4652386
Mobile :
(962-79) 5699009
Email : info@upm.com.jo
/ khaledom@upm.com.jo / mohammadaj@upm.com.jo
yakoub.abdullhameed@mspharma.com
Please note that subject’s previous address was, Khalidi
Hospital Street, 3rd Circle, Jabal Amman, Amman.
Premises
Subject operates from a medium sized suite of offices that
are owned and located in the Central Business Area of Amman.
Branch Office (s)
Location Description
· King
Abdullah II Industrial Estate, Al Raqeem Factory
premises covering 29,000 sq metres
Nuzhat
Sahab
Tel:
(962-6) 4162901 / 4162906
Fax:
(962-6) 4162905
KEY
PRINCIPALS
Name Position
· Munjid
Munir Sukhtian Chairman
· Ghayyath
Munir Sukhtian Vice
Chairman
· Adel Mishal General
Manager
· Abdul Moniem Al Ali Sales
Manager
· Yakoub
Abdullahmed Finance
Manager
·
Dr Tariq Al Zaher Export
Manager
·
Dr Hassan Foudah Commercial
Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 8th
June 1989
Legal
Form : Limited
Liability Company
Commercial
Reg. No. : 2161,
Amman
Membership
No. : 5950
National
ID No. :
200004648
Issued Capital : JD
3,000,000
Paid up Capital : JD
3,000,000
Name of Shareholder (s) Percentage
· M S
Pharma WLL 100%
Bahrain
Note to the Legal Form The
limited liability company may be composed of two or more shareholders whether
legal or natural persons, each responsible only for the liabilities of the
company to the extent of their share participation in the capital of the
company. The limited liability company may not offer its shares for public
subscription or increase its capital or borrow by subscription. The minimum
capital for foreign investments is fifty thousand Jordanian dinars
(JOD 50,000) for each non-Jordanian Shareholder.
AFFILIATED
COMPANIES
· Arabian
Office Automation Company Ltd
· Beit Jala Pharmaceutical Manufacturing (BJP)
· Exir
LLC
· Households
& Toiletries Manufacturing Co
· Jordan Greenhouses Manufacturing Co Ltd (Rayyan)
· Munir Sukhtian Trading Group Co Ltd
· Sukhtian Industrial Trading (SIT)
· Tabuk Pharmaceutical Manufacturing Company
OPERATIONS
Activities: Engaged in the manufacture of
pharmaceutical preparations.
Subject produces 216 pharmaceutical
products of which 44 are produced under license for multinational companies.
The company has also a manufacturing contract for 20 products to other
companies.
Production
Capacities:
|
Dosage
Form |
Annum |
|
Capsule (Powder & Hard Gelatine) |
135,000,000 Cap |
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Capsule (Pellets) |
50,000,000 Cap |
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Semisolid Line (Cream, Gel,
Ointment) |
1,800,000 Tube |
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Suspension & Dry Suspension |
500,000 Bottle |
|
Shampoo |
750,000 Bottle |
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Soft Gelatin Capsule |
18,000,000 Cap |
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Liquid Line (Syrup) |
2,500,000 Bottle |
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Suppository |
1,200,000 Supp. |
|
Tablet |
180,000,000 Tab |
Import Countries: Germany, Belgium, France, Italy
and the United Kingdom
International Suppliers:
· Astra Romania
· Hiba
Drugstore Sudan
· U
Carbon Austria
Export Countries: Iraq, Saudi Arabia, United Arab
Emirates, Qatar, Bahrain, Oman, Kuwait, Yemen, Lebanon, Libya,
Algeria, Egypt, Sudan, Ethiopia, Germany,
Romania, Kazakhstan, Hong Kong, Malaysia and the Philippines
Operating Trend: Steady
Subject has a workforce of approximately 450 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given
below:
Currency: Jordanian Dinar (JD)
Year Sales
Year Ending 31/12/14: JD
17,400,000
Year Ending 31/12/15: JD
18,000,000
Year Ending 31/12/16: JD
22,000,000
Year Ending 31/12/17: JD
25,500,000
Local sources consider subject’s financial condition to be
Fair.
Note: According to
Jordanian Commercial Law, only Public Shareholding Companies (Listed on the
Amman 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
·
Arab Bank Plc
Shmeisani
Branch
PO
Box: 950545 & 950544
Amman
11195
Tel:
(962-6) 5607231 / 5607115
Fax:
(962-6) 5606793 / 5606830
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
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.
Local sources report that payment obligations are met in a
generally timely manner and the operating history is clear. As such the company
is deemed a fair trade risk.
COUNTRY
OUTLOOK
GDP
growth moderated during 2015 to an estimated 2.4 %, the slowest pace in four
years, magnifying already-high unemployment.
Security spill overs from regional conflict worsened, negatively impacting
tourism, construction, investment and trade. However, growth in a number of
sectors held up well through the third quarter of 2015, including in finance
and insurance services, transport, storage and communications, electricity and
water, and mining and quarrying. Unemployment rose to 13.0 % in 2015, an
increase of 1.1 % age points relative to 2014. There was a mild deflation for
most of 2015 due to further falls in global oil prices, a weakened Euro, a
negative output gap, and easing of supply side pressures experienced in
previous years (notably on housing prices, due to the large influx of refugees
in 2012-13). Monetary policy remained expansionary with the central bank
reducing the key policy lending rate by 125 basis points during the course of
2015. International reserves slightly rose to $ 14.2 billion (7.5 months of
imports) by end-2015.
The
fiscal deficit was narrower in 2015 thanks to lower expenditures and lower
transfers to the National Electric Power Company (NEPCO), which outweighed the fall in domestic revenues
and grants. NEPCO resorted to borrowing from commercial banks instead of the
government in 2015 providing a 7.0 % of GDP relief to the fiscal balance,
without which the fiscal deficit would have widened. NEPCO’s debt continues to
be government guaranteed and combined with the fiscal deficit and slowing GDP
growth contributed to pushing the gross debt to GDP ratio to an estimated 93 %
at end-2015.
The
current account deficit is expected to have widened in 2015, mainly due to
lower public transfers and a 7.1 % fall in tourism receipts, and despite a
narrowing trade deficit. The
merchandise trade balance narrowed by 14 % on account of a 40.4 % fall in
energy imports. These outweighed a 7.1 % contraction of direct exports
(themselves buttressed by 10.9 % growth in phosphate exports) affected by land
trade route closures with Syria and Iraq, traditionally Jordan’s largest export
partner. Remittances are slowing, growing by only 1.5 % during 2015.
Growth is
expected to improve to 3.0 % in 2016, assuming no further worsening in the
regional security situation and associated spill overs. This is driven by an expansion in mining and
quarrying sector and positive base effect of tourism and construction sectors.
Jordan is working towards an Extended Fund Facility (EFF) with the IMF. The EFF
is anticipated to support further fiscal consolidation efforts in parallel with
growth-enhancing and job-creating structural reforms. The baseline growth
forecasts assume agreement on an EFF leading to a fiscal adjustment and a lower
debt-to-GDP level. The balance of risks is on the downside. Managing
repercussions from the regional security and political situation is a key risk
in addition to the challenges of hosting a substantial number of Syrian
refugees. Additionally, persistently low oil prices are a risk this year and in
the medium term, given their potential impact on remittances, exports, FDI and
grants from the GCC. Fiscal adjustment measures are likely to be difficult.
Furthermore, the willingness and speed of reform implementation particularly to
improve the business climate will be crucial to meet the country’s investment
aspirations.
Key Economic Indicators 2014 2015 2016* 2017*
Real GDP Growth (%)
3.1 2.4 3.0 3.3
Inflation Rate (%)
2.9 -0.9 1.3 2.7
Fiscal Balance (% of GDP) -9.1 -3.4 -2.1 -1.3
Current Account Balance (% of GDP) -1.0 -9.1 -6.6 -6.0
* forecast
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
INR 68.02 |
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|
1 |
INR 91.25 |
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Euro |
1 |
INR 80.07 |
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JOD |
1 |
INR 96.39 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
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.