OJSC "Almaty Kus" (Kazakhstan): brief description

/KASE, Apr.5, 00, Galina Tsalyuk, published due to the company shares were entered into "A" listing/ - OJSC "Almaty Kus" began in March 1998. The company was founded by uniting the assets of four poultry farms of Almaty region: JSCOT "Altyn Kus" ("Chapaevskaya"), JSCOT "Fenix" ("Kaskelenskaya"), JSCOT "Abai" ("Abaiskaya") and OJSC "Avatskaya prtitsefabrika" ("Avatskaya"). Prior to the registration of the company these poultry farms were under the trust management, and then they went under the control of "Concern Seimar". In 1996 JSCOT "Concern Seimar" becomes the winner of the tender on management of state block of shares equal to 65.1% of JSCOT "Altyn Kus". In August 1997 state block of shares were given to the concern on gratuitous basis because it meets its obligations under trust management. The remaining 34.9% of shares were owned by the employees. In October 1996 and in February 1997 JSCOT "Concern Seimar" wins the tender on management of state block of shares of another two poultry farms: JSCOT "Abai" and JSCOT "Fenix". In November 1997 JSCOT "Concern Seimar" receives on gratuitous basis 72.1% of JSCOT "Abai" shares and 48.0% of JSCOT "Fenix" shares after it meets its trust management obligations. 27.9% of JSCOT "Abai" and 52.0% of JSCOT "Abai" shares remain under the ownership of their employees. In early 1998 JSC "Altyn Dirmen" transfers 66.0% of OJSC "Avatskaya ptitsefabrika" shares to "Concern Seimar" as a payment to one of Concern's divisions. Remaining 34.0% of OJSC "Avatstkaya ptitsefabrika" shares remain under the ownership of their employees. In spring 1998 a decision was made to consolidate the assets of four poultry farms into one company, and on March 13, 1998 open joint stock company "ALMATY KUS" was registered. Authorized capital of the company was formed by joining the assets of four poultry farms of "Concern Seimar". The concern has also added a trade mark "Seimar" into the authorized capital. In September 1998 JSCOT "Concern Seimar" exchanges the shares of JSCOT "Altyn Kus", JSCOT "Abai", JSCOT "Fenix" and OJSC "Avatskaya ptitsefabrika" owned by private persons - the employees of the farms into the shares of OJSC "Almaty Kus". As a result of the exchange of 2,116 shares, private shareholders became direct owners of the shares of OJSC "Almaty Kus". Thus, the company was formed as one of the main business segments of "Concern Seimar", which is the leader in food market of Kazakhstan in production of flour, eggs, rice, cereals, forages and achieved a constant growth in the market share for its products. From the time "Concern Seimar" took the trust management four poultry farms underwent reconstruction of their buildings, equipment and poultry cells. The number of poultry was restored and the egg powder workshop was put into operation at JSCOT "Abai". At JSCOT "Altyn Kus" the number of poultry was doubled and new technological line - forage and mixing workshop was put into operation that will supply the farm with the foodstuff with balanced microelements and vitamins. Four poultry farms (Chapaevskaya, Kaskelenskaya, Abaiskaya and Avatskaya) had debts at the end of 1997. In 1998 the company was able to strengthen its positions on the market by increasing the intensity of the production, as well as by attaining the high quality of products while keeping the costs low. Presently, the company is the leader on the national market among the producers of eggs, with almost monopoly position in Almaty and Almaty region (more than 80% of the market), and produces more than a third (33%) of the eggs consumed in the country. OJSC "Almaty Kus" is a coordinating and controlling body (it analyzes the prices of the distributors, competitors' prices and purchasing power of each region) in general structure of the production and sales, and the other segments depend on it. The company does not produce eggs and poultry meat, but it controls the production process and the lessors to whom it leases the property of three farms: Chapaevskaya, Kaskelenskaya and Abayskii and trade mark "Seimar". The relationships between the company and three lessors (LLP "Ak kanat", LLP "Karasaiskaya ptitsefabrika", LLP "Alatau") are regulated by the contracts. The lessor are responsible for purchasing and production of foodstuff, eggs on the farms and selling them only to distributors. The lease (franchise) of the trade mark "Seimar" means the transfer of rights to use it on a contractual basis to twenty four independent distributors. The distributors are responsible to purchase, sort, packing, transportation and sales of the lessors' products. Distributors can buy the products only from the lessors and only at prices set by the company. Each distributor has an exclusive right to distribute the products of "Seimar" by presenting this trade mark in a certain region, where it can set its own sales prices, sign contracts with retail sellers and specify its own sales policy. The company, in its turn, strictly monitors the quality of the products offered by the distributors on the market. The company is a member of the International Egg Commission, which represents the interests of egg producers throughout the world. The members of the committee are the companies from the countries that produce eggs. From 1998 the company is a member of Article Numbering Association, which is meant to unify international goods numbering system and bar codes. As of October 31, 1999 the company had 12 employees. It has no branches.