business intelligence - ABC Capital Markets LTD

BUSINESS INTELLIGENCE
Issue 20, September 2012
Industry News – 2nd Quarter 2012
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Axys Group launches Flexidrive
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Flexidrive offers fleet management services, very aggressive
It also proposes full maintenance leases
Services aimed at reducing uncertainties in business operations
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Trianon Shopping Park
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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
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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
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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
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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
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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
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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
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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
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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
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Reunion Island, Madagascar, Comoros, Mayotte, Kenya and South
Africa.
Harrel Mallac (HM)
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Present in numerous countries namely Zambia, Burundi, Rwanda,
Madagascar, Mayotte, Tanzania
Terra Group
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25% stake in Sucrivoire
FAIL/Omicane
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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
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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
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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:
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Winner’s – turnover = Rs. 5 billion, over 20 stores
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Shoprite
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Super U
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Jumbo and Spar
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Intermart
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Pick n Pay
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King Savers
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Lolo
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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)
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Way – 12 members (Central Way, City Way, London Mahebourg,
Lodon Vacoas, London Regent, London Riviere Noire, New Grove,
Sik Yuen, Simla, Super Unic, Tangs)
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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
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Ciel Group
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Pioneer in Africa with factories in Madagascar
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Also have operations in Tanzania (TPC) and Kenya (Kibo Fund)
Anglo-Mauritius
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Present in Seychelles
Rogers
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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
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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:
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Cim Finance
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Cim Forex
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Galaxy
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JM Goupille
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Cim Global Business
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Cim Tax
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Other strategic investments:
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MSC
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Lafarge
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Li & Fung
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Numerous properties
Other clusters of Rogers Group are:
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Hotel:
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VLH
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Veranda Resorts
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Veranda Paul et Virginie Hotel & Spa
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Veranda Grand Baie Hotel & Spa
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Veranda Pointe aux Biches Hotel
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Veranda Palmar Beach Hotel
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Heritage Resorts
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Heritage Awali Golf & Spa Resort
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Heritage Le Telfair Gold & Spa Resort
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Heritage The Villas
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C Beach Club
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Heritage Golf Club
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Le Chateau de Bel Ombre
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Seven Colours Spa
Logistics:
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Velogic
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Present in Mauritius, France, India, Bangladesh,
Madagascar and Mozambique
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FOM, Sukpak, PAPOL, R’Frigo, TNT
Real Estate & Agribusiness
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Bel Ombre
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CSBO – Compagnie sucriere de Bel Ombre
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Case Noyale
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Villas Valriche
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Terre des Sept Couleurs
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Frederica Nature Reserve
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Café de Chamarel
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Le Chamarel Restaurant
Travel & Aviation
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Rogers Aviation
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Bluesky: agencies in Mauritius, Mozambique,
Reunion and Mayotte
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Airline representative in several countries of:
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Delta Airline Cargo
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Malaysian Airlines
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Gulf Air
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Air France
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Air Mauritius
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Air Seychelles
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Olympic Airlines
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Airlink
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South African Airways
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Saudi Arabian Airlines
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Kenya Airways
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Air Madagascar
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Jet Airways
Property
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Foresite Property
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Foresite Management
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Ascencia
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G4S
Other strategic investments:
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Air Mauritius
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New Mauritius Hotels
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EIS
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Intendance Holdings
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Anglo Mauritius Holdings
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Mauritian Coal & Allied Services
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Tractor & Equipment
Dossier: Plastic industry
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Players:
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Plaspak:
Performance plastics
Plaspak
Talco Plastics
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Started operations in 1978, managed by Mounesh Mareeachalee
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50% of production destined to the food and agro-business sector
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Good growth prospects in Reunion and Madagascar islands
Jardin Meubles:
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Started operations in 2004 and managed by Mr Sarvesh Maniyar
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Process uses used plastic to produce polypropylene garden
furniture
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Used plastic is purchased at Rs. 15 per kilo
Talco Plastics
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Started operations in 1995 and managed by Mr Jean Pierre Talbot
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It began by producing plastic corks and then turned to produce
bottles
Dossier: Cosmetic products
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IBL Brand Activ:
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Colgate Palmolive: standard, aromatherapy
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Ushuaia
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L’Oreal
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Garnier
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Mixa
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Fructis
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Elseve
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Gemey-Maybelline
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Casting
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Belle Color
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Johnson & Johnson
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DOP
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Narta
Pharmacie Nouvelle:
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Sunsilk, Fair & Lovely
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Nivea: shampoo, conditioner, after-shampoo, body cream etc…
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Vaseline
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Deodorant, shower gel and after-shave: Rexona, Axe, Impulse,
Brut
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Shower gel and soap wash: Timotei, Des Iles
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Eucerin – body cream
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Labello – lip care
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Toothpaste: Signal, Aquafresh, Close-Up
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Hansaplast - condoms
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Bebecalin cosmetics
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Soap: Lux, Lifebuoy
Grays:
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Occitane
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Ulric de Varens
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Bourjois
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Evaflor
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Revlon
Dossier: Sugar industry
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Major restructuring over the last 10 years
Out of 11 factories in operation in 2004, only 5 are still in operation today
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Terra Milling
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FUEL
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Omnicane
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Medine
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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:
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Ciel Agro is present in Tanzania (TPC)
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FUEL in Mozambique (Companhia de Sena)
Factories have been switching to Flexi-factory organization
The viability of the industry depends on numerous factors including:
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Price of petrol
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Access to preferential tariffs
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Increasing competition
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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
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Two of the major sugar players in Mauritius, DRBC and FUEL are
merging their operations
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The new entity will be called Alteo
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Merger came to effect on 20th July
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DRBC:
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Has some 4,000 hectares of land under cultivation
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Produces 165,000 tons of sugar
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Employs 2,780 persons
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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.
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Has joint venture with Tereos in Tanzania
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Has some 8,000 hectares of land under cultivation
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Produces 94,000 tons of sugar
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Employs 1,250 persons
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Has a turnover of Rs. 3 billion
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Has recently invested in a new sugar refinery
Terra Group: Investing in Ivory Coast
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The Group already holds a 50% stake in Sucrivoire, located in
Ivory Coast
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Following marked improvements in economic climate, it wants to
consolidate its stake
Innodis
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FUEL:
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Distributes several brands of cheese: Babybel, Boursin,
Leerdamer, Regal Picon, La Vache qui rit, Kiri
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For milk brands: Twin Cows
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For milk drinks and yoghurt: Ole, DairyVale, Kick Start
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Ice cream: Dairymaid
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Also distributes Nestle dessert creams and country fresh ice
creams
IBL Brand Activ
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Powdered milk: Regilait
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Butter: Philadelphia
Dossier: Logistics sector
Dossier: Food Industry
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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:
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2,000 tons of fresh meat are consumed per annum
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The market leader is Socovia
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Meat is imported mostly from South Africa and Australia
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Runners-up are Agromaster and Cattle Co. Ltd
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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:
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Total annual consumption ranges from 20,000 to 30,000 tons
Fish produce:
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Local fish production hovers around 5,411 tons per annum
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Total revenue for the industry is around Rs. 20 billion
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Tuna exports account for most of the turnover
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Production has been falling over the last years mainly due to
inappropriate fishing techniques and lack of equipment
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There state is having talks with potential partners from Japan and
Malaysia
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Following talks, there has emerged an agreement to set up a hub
in Mauritius for Japanese fishing vessels
Milk segment:
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Local demand for fresh milk is between 25,000 to 30,000 litres
per day
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The only local producer of fresh milk, SKC Dairy Fresh is only
supplying 2,000 litres per day
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The rest of the demand is satisfied through powdered and UHT
milk
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SKC aims to increase production to 5,000 litres per day in 2013
Import figures in 2011 are as follows:
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Meat:
Rs. 1.95 Bn
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Dairy products and eggs:
Rs. 3.28 Bn
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Fish:
Rs. 9.21 Bn
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Wheat:
Rs. 1.17 Bn
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Rice:
Rs. 1.47 Bn
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Cereals:
Rs. 1.69 Bn
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Fruits and vegetables:
Rs. 2.51 Bn
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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.
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Recent developments in the port have increased capacity:
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The port currently has two terminals
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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
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Significant investment in equipment
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Currently operating at a capacity of 450,000 containers per
annum
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It has capacity to handle 550,000 containers per annum
Pacific World Shipping
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Agent for Pacific International Line since 1998
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Activities mainly in Asian region: China, India, Australia via
Singapore
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Destinations include: Reunion, Mozambique
France Maritime Agency
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Agent for CMA CGM and Delma since 1978
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CMA CGM is 3rd in the world and 1st in France
Maersk
Southern Marine
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Agent for Hoegh Line
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It is the only line that provides roll on-roll off
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Previously known as FTL Shipping
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Joint venture between FAIL, Mechanical Transport Limited and
GML Group
MC Easyfreight
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Company launched in 2000 by Clarel Michaud with an initial
capital of Rs. 25,000
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It currently has 60 employees
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Company is affiliated to World Air Cargo
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Its portfolio of clients has reached more than 600 clients including
several in the Top 100 companies in the country and PMEs
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The company also has a strong portfolio of clients from Reunion
Island. They use Mauritius as a hub for imports from China and
India.
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It also acts as commissioning agent for these markets.
Dossier: Dairy products
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Product range: cheese, liquid milk, powdered milk, yoghurt, butter, margarine
Above 6.2% growth in consumption in 2011
Annual consumption hovers around:
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8,000 tons for powdered milk
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700 tons for butter
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3,000 for cheese
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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
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Brand present in Mauritius for more than 25 years
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Distributed by Tea Blenders
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The produce comes from all over France and its main product is
UHT milk
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Its UHT milk sold in Mauritius is 100% fresh milk, with no addition
of reconstructed milk
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Other products include:
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Butter: sweet, salted, light
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Cooking creams
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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.