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TOMC - Final Presentation - Institutions PDF
TOMC - Final Presentation - Institutions PDF
TOMC - Final Presentation - Institutions PDF
0 MILLION
ORDINARY SHARES OF
- to set up an offal processing facility at Korangi for processing of locally collected offal
- to set up an offal production facility at Karachi Export Processing Zone (KEPZ) for processing of
imported offal and re-export to China and Vietnam
- to enhance the output of current product range
Product Offering
Fresh Chilled Mutton Carcass Fresh Chilled Beef Fresh chilled edible
Fresh Chilled Mutton Carcass Fresh Chilled Beef Cuts (Vacuum Frozen edible
(Vacuum Pack) Pack) Raw & Salted
Frozen Mutton Carcass Frozen deboned beef Raw Bones & Hides
Frozen Mutton Cuts deboned Frozen beef with bone
Saudi Arabia
Vietnam
Oman Bahrain
Myanmar
Egypt Kuwait
Myanmar
KSA
Thailand
Bahrain
Eastern Europe
Kuwait
TOMC has the greatest market access within CIS*
Qatar Pakistan’s meat export
Export Destinations
Companies Iraq Kuwait Oman Qatar KSA Afghanistan UAE Bahrain Egypt Malaysia Vietnam Myanmar HK Maldives CIS
TOMC √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
AL SHAHEER CORP X √ √ √ √ √ √ √ X X X X X X X
PK LIVESTOCK X √ √ √ √ √ √ √ X X X X X X X
ZENITH ASSOCIATES X √ √ √ X √ √ √ √ √ X X X X X
TAZIJ MEAT & FOODS X √ √ √ √ √ √ √ X X √ X X X X
KATCO INTERNATIONAL X √ √ √ X √ X X X X X X X X X
SEVEN STAR MEAT CO X √ √ √ X √ √ X √ X √ X X X X
TATA MEAT CO √ √ √ √ X √ √ X √ √ √ X X X X
FAUJI MEAT CO X √ √ √ X √ √ X √ X √ X X X X
The most important aspect of meat export business is the destinations where a Company is allowed to export
TOMCL has the largest market access from Pakistan and is working to add China, Russia and other CIS Countries
Pakistan and Chinese governments are currently finalizing the food protocols
Based on its existing relationships with Chinese meat importers TOMCL expects to become the 1st company from Pakistan to export to China
Upon opening of the Chinese market, TOMC foresees catering to a large portion of demand by capitalizing its existing connections &
infrastructure as well as product base
Being the only sector player providing fresh, chilled, vacuum packed product via sea, it is expected that TOMC’s pricing will be better than
others owing to freight arbitrage
Mr. Hussain has 21 + years of experience in the sheep casings (offal processing) industry and 10 years experience in the meat processing
industry. He is the founder shareholder / director & CEO of TOMCL. Mr. Hussain holds an MBA from Institute of Business Administration
(IBA) and a MBA Finance from Cardiff Business School, University of Wales, UK.
Mr. Hussain is part of the fourth generation in the industry of Animal Offal with processing units in Karachi, Lahore, and Multan. His family
business has been receiving best export performance trophies from the Federation of Pakistan Chambers of Commerce and Industry
(“FPCCI”) for 15 years in the past. He has also been in the business of retail food outlets in Karachi for 09 years.
Faisal Hussain
Chief Executive He entered the meat business in 2009 with a vision to introduce innovations into a extremely traditional business line. He brought new
concepts in the industry of further adding value to the fresh meat by offering boneless Frozen and Fresh Boneless Vacuum Packed meat
by extending shelf life of the same product, to be able to cater to many far off destinations, for which the Company, is one of the very few
in Pakistan having approvals to export. The same experience and vision has led the Company to be the only entity in Pakistan to process
offal of beef animals and have developed an increasingly growing market in the last one year due to his direct access for years with
various offal suppliers and processors in many countries. He has already taken a single product offering company in 2011 to a multi-
product offering Company by 2015/16.
The Organic Meat Company Limited
The Organic Meat Company – Board of Directors Profiles
Mr. Hussain is responsible for Operations and Business Development. He has been part of the management team since inception and
spearheads the plant operations. Mr. Hussain holds a BSc in Economics from Lahore University of Management Sciences (LUMS). He
has been into food business and was handling food services for notable organizations like DHL, ENI, HBL, Reckit & Benckiser, Starcom,
Tetra Pack, German Consulate, etc. He has been instrumental in getting approval for supplies in several countries and has played
important role in expanding operations of TOMC
Ali Hussain
Chief Operating Officer
Mr. Nihal F. Cassim serves as the Chief Executive Officer of Ubiquity Trading Limited. Mr. Cassim was previously responsible for Asian
Stocks Fund Limited. He serves as a Non-Executive Director of Ferozsons Laboratories Ltd. He has been an Independent Director at
Pakistan Oilfields Ltd. since June 20, 2011. He also serves as a Director of Mutual Funds Association of Pakistan. Mr. Cassim holds an
MBA degree in Finance and MIS from McGill University.
Nihal F. Cassim
Independent Director
Mr. Salman Hussain is the Director and CEO Lucky Foods Pvt Ltd. He established this dairy company in 2015 with Younus Brothers
Group. He has a strong vision on Food related businesses in Pakistan, both for exports and local markets. Besides dairy farming,
backward integration in agriculture and animal husbandry is a major focus areas at Lucky Foods.
Salman Hussain worked for Citibank N. A for 15 years and left Citibank Pakistan in 2014 as Director and Country Head Global
Transaction Services for Pakistan and Afghanistan.
Salman Hussain Salman started his career with the consumer bank as a relationship manager. He rose through the ranks and served as branch manager,
Independent Director area manager, product head and branch banking head for Citi in Pakistan. Before moving to the corporate bank in 2011, Salman looked
after consumer bank as a Retail Bank Head.
As his first job Salman was associated with the Automobile industry. For 3 years he worked for Ghandhara Nissan Ltd as a product
manager. Salman is an IBA graduate and graduated from IBA in 1996.
The Organic Meat Company Limited
The Organic Meat Company – Board of Directors Profiles
Mr. Punjwani is a Chartered Accountant and holds around 25 years of working experience. Currently he is a Fund Manager at RAY
Securities and is also on TOMC’s board as an Independent Director. Prior to that he was Director and Chief Operating Officer at Sindh
Gas where he was primarily responsible to implement projects.
Previously, Mr. Punjwani has led the Investment Banking department of one of the Largest Bank of Pakistan – National Bank of Pakistan
(NBP) where he gained rich experience of handling debt and equity transaction of large ticket size.
Rizwan A. Punjwani
Director
Mr. Owais Zaidi is on board of TOMC as an Independent Director. He holds a BBA (Honors) in Finance and also an MBA degree from
Institute of Business Administration (IBA), Karachi. He has a diversified exposure to various industry verticals and business domains. He
is Founder & CEO at Credit Fix – Pakistan’s first credit market place, Co- Founder & Principal Consultant at Infinitum Innovations,
Charter Member at Open Islamabad – an NGO and also a board member of Pakistan Innovation Foundation. Prior to that Mr. Zaidi has
been associated with several tech companies playing key management roles.
Owais Zaidi
Independent Director
Ms. Sehrish holds a BSc in Philosophy and Economics from London School of Economics. Her experience includes Valuation of different
companies through different valuation techniques like discounted cash flow techniques, comparable and other approaches. She has
good understanding of the business models and also strategically involves in various parts for running the business successfully. She
also worked on various growth advisory reports.
Sehrish Hafeez
Independent Director
Offal Business – No Competition Hedge against devaluation of PKR Greatest Market Access
TOMCL is the only Company to include Being export based, the business is TOMCL has the greatest market access
offal in it’s product portfolio. This is a high conducted in US$, hence providing a within the Pakistani meat exporters.
margin product in this industry and natural hedge against PKR devaluation Pakistan’s meat industry is
TOMCL has an established customer- predominantly focused towards the ME
base with unfulfilled demand. Eyeing while TOMCL has targeted not only Far
this, sponsors are setting up 2 offal East but also Eastern European
processing facilities in Karachi countries
Largest product range Alternative Transport Channel Sponsors’ Expertise & Network
TOMCL can supply a wide variety of TOMCL is the only sector player allowed TOMCL sponsors are 4th generation into
products to suit the client needs. to export to UAE and KSA via sea. This this business, having first started back in
significantly lowers the cost of 1932. This provides the Company with
For the offal product, TOMCL is the only transportation in comparison to an unparalleled outreach in the
player in Pakistan and is also purchasing competitors and also enables greater international market since the sponsors
from European market for re-export to far market access maintain decades old relationships with
eastern countries major players internationally
TOMC
AL SHAHEER CORP x x x x x x x x
PK LIVESTOCK x x x x x x x x
ZENITH ASSOCIATES x x x x x x
KATCO INTERNATIONAL x x x x x x x x
TATA MEAT CO x x x x x
FAUJI MEAT CO x x x x
Largest product line in Pakistan allowing greater market access as well as flexibility in procurement
The largest active frozen, deboned facility, enabling greater market access since most destinations do not allow boned meat due to Foot to
Mouth Disease (“FMD”) in Pakistani cattle
TOMCL is also an approved supplier to Americana, one of the largest meat processors in the region and several other food processors
In Europe beef offal sold by slaughter houses goes through a process which is proven to
be inefficient due to post processing weight reduction Offal Exports to Vietnam & China
On the contrary, TOMC plans to use a process which will not only retain the actual Import EXPORT
weight of beef offal but also will meet the requirement of customers, thereby will
PROCESSING ZONE
generate higher yield
Post IPO, TOMC will be able to import beef offal from Europe to Export Processing Process &
Zone, Pakistan “EPZ” having them specifically treated as per TOMC’s requirement in Re-Export
order to effectively run its process
The beef offal will then undergo a process and will be re-exported to Vietnam
In Pakistan, TOMC will also purchase beef offal from local slaughter houses/meat Various Local
processing companies and run their specialized process to export it to Vietnam TOMC – Korangi
Slaughter Import Unit
TOMC has lined up 8 suppliers of beef offal for future import from Romania, Austria, Italy Houses
France and Germany
Once Government of Pakistan establishes food protocols with China, TOMCL will also
supply offal products directly to China
Process &
Export
WACC
Risk free rate 10.00%
Risk premium 6%
Equity Beta 1
FLOOR PRICE: PkR 18 Per Share
Cost of equity 16.00%
FLOOR PRICE AT
KIBOR 11.88% TERMINAL GROWTH
DISCOUNT OF
Average Mark-up (Long +Short) 2.25%
4% 50.2%
Effective Tax 11.36%
Cost of Debt (After Tax) 12.52%
NP Margins
9.00% 8.46%
8.03%
8.00% 7.40%
6.98% Owing to a diversified product line and multiple export
7.00%
6.00%
5.81% destinations, TOMCL has maintained a higher than industry net
5.00%
4.71% margin
4.00%
3.00%
2.00%
1.00%
0.00%
2015A 2016A 2017A 2018A 2019A 9MFY2020
The Company has appointed Topline Securities Limited (“TSL”) and Intermarket Securities Limited to act as Joint Consultants to the Issue (“Joint Consultants”) while AKD Securities Limited (“AKD”) has been appointed as
Book Runner (“BR”) for the above mentioned Transaction.
The information contained in this Presentation / Document / Investment Document / Financial Model has been provided by The Organic Meat Company Limited to assist prospective investors in proceeding with further
analysis of the IPO opportunity. Whilst all attempts have been made to verify the information contained therein and to ensure that the information is accurate and complete in all material respects, the Joint Consultants, or any
of its affiliates or subsidiaries do not make any representations or warranties, express or implied as to the accuracy, adequacy, reasonableness or completeness of such information. Nothing contained in this Presentation /
Document / Investment Document / Financial Model is, or should be relied upon as, a promise, guarantee or representation of the future outlook of the Company or the financial and/or economic climate of Pakistan. The Joint
Consultants shall not bear liability for any statement, opinion, information, statistics, representations or matters expressed or implied arising out of, contained in, or derived from, or for any omissions in, this Presentation /
Document / Investment Document or any other written or oral communications transmitted to any participant or any other recipient in relation to the Company or the Transaction (detailed in this Presentation / Document /
Investment Document/ Financial Model).
The Joint Consultants expressly disclaims any and all the liability that may be based on any inadvertent errors or omissions from, or mistakes in assumptions with respect to any information, estimates or projections contained
in this Presentation / Document / Investment Document / Financial Model or any other written or oral communication transmitted to any prospective participant in the course of its evaluation of the possible investment
opportunity.
Each potential investor is responsible for obtaining its own independent professional advice in relation to the Transaction and for conducting their own independent due diligence and appraisal of the financial condition, affairs
or credit worthiness of the Company. The Joint Consultants expressly do not undertake to review the financial condition, affairs or credit worthiness of the Company during the life of the Transaction.
The information contained herein is submitted to the participants on a strictly and permanently confidential basis. By accepting a copy of this Presentation / Document / Investment Document / Financial Model, the participants
agree that neither it nor any of its employees nor its advisors shall use the information for any purpose other than deciding whether to proceed with further analysis of this Transaction and shall not divulge such information to
any other party. The participant shall ensure that their associated or affiliated companies, employees, servants, agents, and advisors keep confidential all information, data or documents pertaining to the Company and the
Transaction which is disclosed to it or which comes within its knowledge. This Presentation / Document / Investment Document / Financial Model may not be photocopied, reproduced, shown, copied in any manner,
whatsoever, used, permitted to be used or distributed, whether directly or indirectly, to others without the prior written consent of the Joint Consultants.
Prospective participants should not construe this Presentation / Document / Investment Document / Financial Model as legal or tax advice and should be aware that the Company and the Joint Consultants cannot and will not
provide legal or tax advice. Prospective participants should conduct their own due diligence and analysis of the business, data and transactions described herein. Additional detailed information can only be made available
upon request and execution of a Non-Disclosure Agreement.