business intelligence - ABC Capital Markets LTD
Transcription
business intelligence - ABC Capital Markets LTD
BUSINESS INTELLIGENCE Issue 20, September 2012 Industry News – 2nd Quarter 2012 o Axys Group launches Flexidrive Flexidrive offers fleet management services, very aggressive It also proposes full maintenance leases Services aimed at reducing uncertainties in business operations Trianon Shopping Park Change of ownership, shopping centre has been bought by the Ismael family The Ismael family is based in Madagascar where their major business is plastic recycling and manufacturing Hassen Taher Seafoods Plans to open two additional Fish Shops: One in Grand Baie La Croisette, in partnership with Intermart One in Curepipe This adds to the existing three: Port Louis, Rose Hill, Roche Brunes Mauritius Union – New branch opening and Click & Go Opens new branch in Goodlands Branch located in VIP Commercial Village The company has also launched its Click & Go service whereby customers can purchase motor insurance policies online Euro CRM – 2nd center in Mauritius IBS concassage, a close partner of Gamma plans to build a new Hilton Hotel in Company is planning to set up a second center in Mauritius after 12 years of operations New center will require 225 new operators Meaders Feed – Rs. 120 million invested in new equipment Company has invested Rs. 120 million in new equipment It currently produces some 65,000 tons of animal feed per annum which it sells to clients in Mauritius, Rodrigues, Seychelles, Comoro Islands, Madagascar and Mayotte It has some of the most modern facilities in the Indian Ocean and is certified ISO 9001:2008 and ISO 22000:2005 The company's turnover hovers around Rs. 70 million and makes profit of Rs. 30 million. Construction industry: Salaries on the hike The average salary for workers in the construction industry has risen by 137% from its level in 2000 This compares with total price inflation of 86.5% over the period Other sectors have seen lower increments From 2006 to 2011, the mean salaries in the country has gone up by 44.5% as compared to 34.2% for rise in CPI Subana: Relocating some of its production to India Subana, one of the local leaders in biscuit manufacturing is relocating some of its production in India According to its medium term plans, 40% of its total production will come from India Bramer Banking Corporation: Opens a new bank in Riviere du Rempart MPCB: New branch opening in Grand Baie ENL Property – La Balise Marina IRS project with expected 55 villas in first phase At end of June, promoters claim that 48 out of 55 villas had been sold The project is expected to create some 600 jobs Total investment in the project amounted to Rs. 4.7 billion Reunion Island, Madagascar, Comoros, Mayotte, Kenya and South Africa. Harrel Mallac (HM) o Present in numerous countries namely Zambia, Burundi, Rwanda, Madagascar, Mayotte, Tanzania Terra Group o 25% stake in Sucrivoire FAIL/Omicane o Kwale International Morrocco: NMH Mozambique: GML, BAI, Innodis, FAIL, Rogers, MCB, Ramphul Group Madagascar: UBP, Ciel, Rogers, Gamma, FAIL, GML, BAI, HM Rawat, MT, HM, MCB, SBM, BankOne, Banque des Mascareignes Tanzania: Ciel, HM, GML Kenya: Omnicane, BAI, Rogers Burundi: HM Rwanda: HM Mayotte: Rogers, HM, MCB Comoro Islands: Rogers South Africa: Rogers, GML, BAI, NMH, Currimjee, MCB, Afrasia Ivory Coast: Terra Zambia: ENL, HM Reunion: Rogers, Lux, GML, Phoenix Beverages, HM Rawat, Leal, MCB Zimbabwe: Afrasia Innodis – Focusing on opportunities in Africa Company currently seeking new opportunities in regional markets In Mauritius alone, it has more than 1,200 employees Its operations in Mozambique bode well. Some USD 6 million was invested 5 years ago. The factory currently produces 20,000 chickens per week. Plans are increase capacity to 30,000 per week by Q1 2013 and to 40,000 per week by end of 2013. The company has also launched consultancy/management services with food conglomerates in other countries on the continent; namely Nigeria where it provides services to Food Concepts, a leading food conglomerate and Angola. Retail chain stores and distribution outlets Number of shopping centers and malls increasing rapidly Chain stores currently rules in the segment and distributors have become followers and vistims Total retail market size is close to Rs. 25 billion Chain stores share hovers around Rs. 15 billion With new trends and increased competition, there is increasing pressure on margins Players include: o Winner’s – turnover = Rs. 5 billion, over 20 stores o Shoprite o Super U o Jumbo and Spar o Intermart o Pick n Pay o King Savers o Lolo o GSR – 12 members (Ibrahim Edoo, Wong Min, Store 2000, Chex Popo, Manory Libre-Service, La Gaulette Store, Sum Foi Store, S F Loyeung & Co, Riambel Supermarket, Sheridan Supermarket, Monoprix) o Way – 12 members (Central Way, City Way, London Mahebourg, Lodon Vacoas, London Regent, London Riviere Noire, New Grove, Sik Yuen, Simla, Super Unic, Tangs) o Dreamprice – 12 stores (Vacoas, Rose Hill, Palma, Port-Louis, St Pierre, Chemin Grenier, Souillac, Rose Belle, Mahabourg, Nouvelle France, Terre Rouge, Camp Diable) Investment in Africa – Mauritian companies seek new opportunities Ciel Group o Pioneer in Africa with factories in Madagascar o Also have operations in Tanzania (TPC) and Kenya (Kibo Fund) Anglo-Mauritius o Present in Seychelles Rogers o Logistics sector ABC CAPITAL MARKETS LTD | RESEARCH Disclaimer: This information sheet has been prepared by ABC Capital Markets Ltd. for information purposes only. Neither the opinion nor any opinion expressed constitutes financial advice nor recommendation to enter any business venture or buy or sell any securities that this document may refer to. Rogers Group - Restructuring and consolidation of its financial services cluster Following change in ownership structure, the company will now consolidate its financial services cluster It also intends to expand in regional markets CIM Financial services will regroup the following SBU’s: o Cim Finance o Cim Forex o Galaxy o JM Goupille o Cim Global Business o Cim Tax o Other strategic investments: MSC Lafarge Li & Fung Numerous properties Other clusters of Rogers Group are: o Hotel: VLH o Veranda Resorts Veranda Paul et Virginie Hotel & Spa Veranda Grand Baie Hotel & Spa Veranda Pointe aux Biches Hotel Veranda Palmar Beach Hotel o Heritage Resorts Heritage Awali Golf & Spa Resort Heritage Le Telfair Gold & Spa Resort Heritage The Villas C Beach Club Heritage Golf Club Le Chateau de Bel Ombre Seven Colours Spa Logistics: o Velogic Present in Mauritius, France, India, Bangladesh, Madagascar and Mozambique o FOM, Sukpak, PAPOL, R’Frigo, TNT Real Estate & Agribusiness o Bel Ombre CSBO – Compagnie sucriere de Bel Ombre Case Noyale Villas Valriche Terre des Sept Couleurs Frederica Nature Reserve Café de Chamarel Le Chamarel Restaurant Travel & Aviation o Rogers Aviation Bluesky: agencies in Mauritius, Mozambique, Reunion and Mayotte Airline representative in several countries of: Delta Airline Cargo Malaysian Airlines Gulf Air Air France Air Mauritius Air Seychelles Olympic Airlines Airlink South African Airways Saudi Arabian Airlines Kenya Airways Air Madagascar Jet Airways Property o Foresite Property Foresite Management Ascencia G4S Other strategic investments: o Air Mauritius o New Mauritius Hotels o EIS o Intendance Holdings o Anglo Mauritius Holdings o Mauritian Coal & Allied Services o Tractor & Equipment Dossier: Plastic industry Players: o o o Plaspak: Performance plastics Plaspak Talco Plastics o Started operations in 1978, managed by Mounesh Mareeachalee o 50% of production destined to the food and agro-business sector o Good growth prospects in Reunion and Madagascar islands Jardin Meubles: o Started operations in 2004 and managed by Mr Sarvesh Maniyar o Process uses used plastic to produce polypropylene garden furniture o Used plastic is purchased at Rs. 15 per kilo Talco Plastics o Started operations in 1995 and managed by Mr Jean Pierre Talbot o It began by producing plastic corks and then turned to produce bottles Dossier: Cosmetic products IBL Brand Activ: o Colgate Palmolive: standard, aromatherapy o Ushuaia o L’Oreal o Garnier o Mixa o Fructis o Elseve o Gemey-Maybelline o Casting o Belle Color o Johnson & Johnson o DOP o Narta Pharmacie Nouvelle: o Sunsilk, Fair & Lovely o Nivea: shampoo, conditioner, after-shampoo, body cream etc… o Vaseline o Deodorant, shower gel and after-shave: Rexona, Axe, Impulse, Brut o Shower gel and soap wash: Timotei, Des Iles o Eucerin – body cream o Labello – lip care o Toothpaste: Signal, Aquafresh, Close-Up o Hansaplast - condoms o Bebecalin cosmetics o Soap: Lux, Lifebuoy Grays: o Occitane o Ulric de Varens o Bourjois o Evaflor o Revlon Dossier: Sugar industry Major restructuring over the last 10 years Out of 11 factories in operation in 2004, only 5 are still in operation today o Terra Milling o FUEL o Omnicane o Medine o DRBC In 2012, the industry is expected to produce 410 000 tons of sugar as compared to 435 000 produced in 2011 and 452 000 in 2010 In 2001, the industry employed some 28,000 labourers and currently employs less than 20,000 There have been several closures and mergers, with the latest being the merger between FUEL and DRBC The main players have also invested in operations in regional markets: o Ciel Agro is present in Tanzania (TPC) o FUEL in Mozambique (Companhia de Sena) Factories have been switching to Flexi-factory organization The viability of the industry depends on numerous factors including: o Price of petrol o Access to preferential tariffs o Increasing competition o Price of fertilizers and herbicides Diversification in the manufacture of by-products has also caught attention with factories now producing ethanol for production of spirits and petrol additives Alteo – Fusion of DRBC and FUEL o Two of the major sugar players in Mauritius, DRBC and FUEL are merging their operations o The new entity will be called Alteo o Merger came to effect on 20th July o DRBC: Has some 4,000 hectares of land under cultivation Produces 165,000 tons of sugar Employs 2,780 persons Has a turnover of Rs. 3 billion ABC CAPITAL MARKETS LTD | RESEARCH Disclaimer: This information sheet has been prepared by ABC Capital Markets Ltd. for information purposes only. Neither the opinion nor any opinion expressed constitutes financial advice nor recommendation to enter any business venture or buy or sell any securities that this document may refer to. o Has joint venture with Tereos in Tanzania Has some 8,000 hectares of land under cultivation Produces 94,000 tons of sugar Employs 1,250 persons Has a turnover of Rs. 3 billion Has recently invested in a new sugar refinery Terra Group: Investing in Ivory Coast o The Group already holds a 50% stake in Sucrivoire, located in Ivory Coast o Following marked improvements in economic climate, it wants to consolidate its stake Innodis o FUEL: Distributes several brands of cheese: Babybel, Boursin, Leerdamer, Regal Picon, La Vache qui rit, Kiri o For milk brands: Twin Cows o For milk drinks and yoghurt: Ole, DairyVale, Kick Start o Ice cream: Dairymaid o Also distributes Nestle dessert creams and country fresh ice creams IBL Brand Activ o Powdered milk: Regilait o Butter: Philadelphia Dossier: Logistics sector Dossier: Food Industry Increasing importance given long term concerns on sustainability Mauritius being a net importer sees itself vulnerable to international price fluctuations and exchange rate changes Fresh meat segment: o 2,000 tons of fresh meat are consumed per annum o The market leader is Socovia o Meat is imported mostly from South Africa and Australia o Runners-up are Agromaster and Cattle Co. Ltd o Socovia states that there is little risk for shortage since they have more than 3,500 heads in their farms but admits that Mauritius is still far from self-sufficiency Frozen meat segment: o Total annual consumption ranges from 20,000 to 30,000 tons Fish produce: o Local fish production hovers around 5,411 tons per annum o Total revenue for the industry is around Rs. 20 billion o Tuna exports account for most of the turnover o Production has been falling over the last years mainly due to inappropriate fishing techniques and lack of equipment o There state is having talks with potential partners from Japan and Malaysia o Following talks, there has emerged an agreement to set up a hub in Mauritius for Japanese fishing vessels Milk segment: o Local demand for fresh milk is between 25,000 to 30,000 litres per day o The only local producer of fresh milk, SKC Dairy Fresh is only supplying 2,000 litres per day o The rest of the demand is satisfied through powdered and UHT milk o SKC aims to increase production to 5,000 litres per day in 2013 Import figures in 2011 are as follows: o Meat: Rs. 1.95 Bn o Dairy products and eggs: Rs. 3.28 Bn o Fish: Rs. 9.21 Bn o Wheat: Rs. 1.17 Bn o Rice: Rs. 1.47 Bn o Cereals: Rs. 1.69 Bn o Fruits and vegetables: Rs. 2.51 Bn o Others: Rs. 6.25 Bn Local production has not made any progress over the last 2 years The only sub-segment that bodes well is the production of potatoes. The country is close to reach self-sufficiency. Recent developments in the port have increased capacity: o The port currently has two terminals o The total number of cranes is 7 Operators still complain on the efficiency and effectiveness of the terminals. There are significant delays resulting in unnecessary charges There is also the view that the industry need to attract greater volumes in order to benefit from economies of scale Service delivery uncertainties create stressful client relationships and penalize local players. Players note however that there has been significant progress, with the port gaining several places in global and regional rankings. They all welcome the arrival of a strategic partner Key players: Cargo Handling Corporation o Significant investment in equipment o Currently operating at a capacity of 450,000 containers per annum o It has capacity to handle 550,000 containers per annum Pacific World Shipping o Agent for Pacific International Line since 1998 o Activities mainly in Asian region: China, India, Australia via Singapore o Destinations include: Reunion, Mozambique France Maritime Agency o Agent for CMA CGM and Delma since 1978 o CMA CGM is 3rd in the world and 1st in France Maersk Southern Marine o Agent for Hoegh Line o It is the only line that provides roll on-roll off o Previously known as FTL Shipping o Joint venture between FAIL, Mechanical Transport Limited and GML Group MC Easyfreight o Company launched in 2000 by Clarel Michaud with an initial capital of Rs. 25,000 o It currently has 60 employees o Company is affiliated to World Air Cargo o Its portfolio of clients has reached more than 600 clients including several in the Top 100 companies in the country and PMEs o The company also has a strong portfolio of clients from Reunion Island. They use Mauritius as a hub for imports from China and India. o It also acts as commissioning agent for these markets. Dossier: Dairy products Product range: cheese, liquid milk, powdered milk, yoghurt, butter, margarine Above 6.2% growth in consumption in 2011 Annual consumption hovers around: o 8,000 tons for powdered milk o 700 tons for butter o 3,000 for cheese o 1,850 tons for margarine Attractiveness of powdered milk depends on the country of origin, milk from New Zealand has had better success than the one coming from Brazil Market statistics show that consumers stick to their preferred brands Trends also indicate that an increasing number of consumers are switching to liquid UHT milk In the soft cheese segment, two new brands Bega and Melbourne were introduced last year. There are currently four brands including Kraft and Chesdale. Elle & Vire o Brand present in Mauritius for more than 25 years o Distributed by Tea Blenders o The produce comes from all over France and its main product is UHT milk o Its UHT milk sold in Mauritius is 100% fresh milk, with no addition of reconstructed milk o Other products include: o Butter: sweet, salted, light o Cooking creams o Dessert creams ABC CAPITAL MARKETS LTD | RESEARCH Disclaimer: This information sheet has been prepared by ABC Capital Markets Ltd. for information purposes only. Neither the opinion nor any opinion expressed constitutes financial advice nor recommendation to enter any business venture or buy or sell any securities that this document may refer to.