Vegetable Oil Co (1)

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: The General Company for Vegetable Oils Sector Food Brief Description Started in 1970, Company manufactures food, soap, toiletries, cosmetics and laundry detergent. Sold under its own brands to Iraqi consumers. Products are rumored to be of high quality, but packaging is not consumer-marketing oriented. May be heavily subsidized (if initial numbers are accurate). Revenue in 2002 (Iraqi Dinars '000s) 46200000 # of Employees 3750 Annual Employee Salaries & Bonus 7200000 Headquarters Address PO Box 2379, Moasker Street, Baghdad 2. Company Highlights Initial estimate of 2002 MOU subsidies of $50M USD exceeds total Company revenue. Needs verification. If true, Company should be shut down unless those subsidies were truly passed on to customers in comparable below-market prices. Not critical to any other Iraqi industry. All products easily replaced with imports if Company proves to be uncompetitive. Various inquiries to partner with, invest in or lease facilities from this Company. World Bank does not believe this Company is viable in free market (but amount of third party interest seems to indicate otherwise). DG was assassinated in early August 2003. Allocated $2M USD for 2H 2003 operating budget and provided with 4 mw off of grid (2 for Baghdad, 2 for Baji). 3. Facilities Name Province City Grid Damage % Power Needs Headquarters Baghdad 0.4 Rasheed Baghdad MB487839 0.1 4 mw Ma'amoon Baghdad MB491843 0.2 4 mw Al Farabi Baghdad MB497832 0.05 2 mw Al Ameen Za'afaraniayah Mansoor Plant Salah Al-Deen Baji Al Mua'tassem Misan 0.3 Basrah Stores Basrah 0.7 Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items The total value of all plant and equipment before the war was about 40.2 billion Iraqi dinars. No exact data exist on purchase dates and prices, since the company was formed from a merger of many companies in 1970. The first company was established in 1940. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Tooth Paste Tons 850 500 199 See note below. Toilet Soap Tons 25400 7000 3253 Shaving Cream Tons 850 500 80 Shampoo Tons 2700 1000 403 Laundry Soap Tons 17000 14200 524 Liquid Soap Tons 100 100 47 Liquid Detergent Tons 11300 7500 4598 Liquid Oil Tons 16000 12000 3290 Laurel Oil Tons 16900 15400 7054 Ghee Oil Tons 199500 73700 34929 Detergent Powder Tons 59400 45200 12994 Bleacher Tons 800 800 752 Note on Revenue Contribution: Oils contributed 57% of revenue; soaps 18%; detergents 18%; all other 7%. Description of Importance of Products to Other Iraqi Industries None. These are all consumer products. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Ministry of Trade 22 Billion ID Local Private Retailers 10 Billion ID The Military 5 Billion ID 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Land Mark (Russia) 25,241,440 Euro Pacific Inter Link (Malaysia) 2,406,098 Euro Asmidal (Algeria) 4,507,035 Euro 6500 m/t of sodium triply phosphate(STPP) Paradox (Turkey) 7,499,309 Euro STTP and tin plate Sunflower Seed Farmers (Direct) Cotton Seed Farmers (Indirect) Current Payment Terms From Suppliers MOU, or deposit on amount to be paid upon receiving the materials. Local suppliers demand payment upon delivery. 7. Imports & Exports 2002 Import Markets for Raw Materials Europe and Asia Potential Import Markets in Free Market Europe and Asia 2002 Export Markets for Finished Products None Potential Export Markets in Free Market 8. Competition Description of Competitive Situation Heavy competition, both from local manufacturers and imports. Market Share Description Mgmt claimed 15-70%, depending on product, but later statistics show actual market shares in 2002 were below 20% for all products. Due to lack of raw materials, according to mgmt. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Headquarters was looted. Southern storage facilities were destroyed. Most manufacturing facilities experienced only minor looting. Current Operating Status Operating on limited basis. Soap factory has fully resumed operations as of May 25. Currently generating 300M ID per month in revenue. Immediate Property & Equipment Needs To Restart Operations Not immediate, but refinery needs separators to improve quality. Cost unknown. Total Cost to Return to Pre-War Condition Two stages, about 2.5 Billion ID, plus $950K USD For each "USAD".