Dairy Products Co — Ninawa (BUS-61e00048)

# 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: State Company for Dairy Products Sector Food Brief Description Manufacturer of milk-based products including yogurt, cream, cheese, butter and sterilized milk. Subsidized Company with limited market share in a competitive market. 40% of revenue from Iraqi army. Revenue in 2002 (Iraqi Dinars '000s) 5000000 # of Employees 1251 Annual Employee Salaries & Bonus 1200000 Headquarters Address Abu Graib, Baghdad 2. Company Highlights Heavily subsidized through government sales at inflated prices, and still only making 3% profit margins (raw material costs equal 70% of revenue). Only 10% market share in non-government sector. Local competitors are in private sector. Most raw materials imported. Limited local supplies. Local demand depressed due to lack of refrigeration and availability of milk through OFF program. Both temporary issues. Iraqi Ministry of Industry management openly concede this Company has no chance of surviving in free market. Allocated $500K USD for 2H 2003 operating budget and provided with zero mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Abu Ghraib Plant Al Anbar Abu Ghraib MB2287 0.03 33 kv Mosul Plant Ninawa Mosul 0.3 1 mw Al Qadisya Plant Al Qadisya Ad Diwaniya 0.25 1 mw Baby Milk Plant Al Anbar Abu Ghraib MB234867 0.3 2 mw Raw Milk Collection Center 0.2 Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items 2435 Million ID.Established 1957, started production 1962, paid caoital 1.5-2.0 Millions. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Yogurt Tons 0 0 2325 Sterilized Milk Tons 48870 13060 903 Cream (1450/kg ID) Tons 3050 2000 914 1325200 Cheese Tons 6436 3000 1498 Butter (2800/kg.ID.) Tons 540 405 207 579600 Baby Milk Tons 3000 1500 0 Description of Importance of Products to Other Iraqi Industries 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Iraqi Army 40% of total No Sold above market rate to help Company. Government Hospitals No Civilian Private Sector No Local Market 169 Million ID. 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Local Dairy Farmers Al Kut Government Dairy Farm 10% of total Imported Dairy Products Current Payment Terms From Suppliers All terms are payment immediately upon receipt. No credit available. 7. Imports & Exports 2002 Import Markets for Raw Materials Denmark, New Zealand Potential Import Markets in Free Market 2002 Export Markets for Finished Products None Potential Export Markets in Free Market 8. Competition Description of Competitive Situation Company operates in highly competitive market. Local competition is from highly fragmented private sector companies. No competitor has more than 5% market share. Market Share Description 10% of the civilian market. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Current Operating Status Most plants operating on limited basis. Current revenue of $30K USD per month. Immediate Property & Equipment Needs To Restart Operations List of items under MOU paid for and approved on file. Includes high temp cookers, refrigerator trucks, ammonia compressors and other items. Also has $20M USD in requests for equipment not yet authorized. Total Cost to Return to Pre-War Condition