Environmental & Social Review Summary
Project Number
36586
Company Name
VISION INVESTMENTS LIMITED
Date ESRS Disclosed
Sep 24, 2015
Country
Fiji
Region
East Asia and the Pacific
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Active
Previous Events
Approved : Oct 14, 2015
Signed : Dec 8, 2015
Invested : Feb 16, 2016
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Industry
Tourism, Retail and Property
Department
Regional Industry - MAS Asia & Pac
Project Description
Headquarted in Samabula, Fiji, Vision Investments Limited (formerly Courts (Fiji) Limited; hereinafter “Vision”, “Courts” or the “Company”) is a leading retail company distributing consumer electronics, furniture and durable home goods in Fiji.
The proposed project is an equity investment of FJD10 million in a private placement of Vision Investments Limited, which will acquire and merge operations of three other affiliate companies, namely, Vision Motors Limited (“VM”), Mahogany Industries (Fiji) Limited (“MIF”), and Vision Finance Limited (“VF”) to be used for repayment of bank loans and other business activities (the “Project”).
Courts commenced trading in Fiji in 1971 and currently is one of the Fiji’s largest retailers of electrical goods, furniture, computers, audio-visual equipment, floor coverings, sports goods and other products, with store outlets located in all major cities and towns in Fiji. Courts also provides consumer finance for its clients. Currently Courts operates 25 retail stores and 5 Service Centers in Fiji. Total sales area is 17,100 square meters including three stores of 2,000-3,000 square meters each, one store of 1,100 square meters, and sales area of other stores is less than 1,000 square meters. Courts plans to commence its new store (estimated square area is 1,600 square meters) in Nakasi (Fiji) in 2016.
Vision Motors (“VM”) Limited has developed a diverse portfolio of world renowned motor vehicle franchises including heavy commercial trucks, light commercial trucks, commercial vans, pick – ups, sedans and forklifts. Ancillary merchandise includes range of automotive and industrial lubricants and automotive tires. The industrial division markets a range of industrial products such as lifts and elevators, insulators, pumps, generators, and buggy carts. In addition, the company offers trucks and cars services for its customers in Fiji.
Mahogany Industries (Fiji) Limited (“MIF”) is a furniture manufacturing and joinery business, primarily using mahogany and pine timber from Fiji’s forestry industry. Customers include the hotel sector, high-end dwellings and the export markets. It also retails furniture products to local retail customers through Courts stores. The major production facility of MIF is located in Lautoka, Fiji and comprises a drying kiln, machining, joinery, upholstery and polishing departments. The operational process includes drying of purchased timber, sawing, assembling, and polishing. In addition MIF operates a furniture manufacturing workshop in Suva, Fiji where joining, upholstery and polishing works are performed. The MIF Suva plant is planned to be relocated to Nakasi area.
Vision Finance Limited (“VF”) provides extended warranty on selected durable home goods and debt guarantee to customers of Courts that take consumer finance on their purchases. All activities of VF are performed at Courts premises.
The proposed project is an equity investment of FJD10 million in a private placement of Vision Investments Limited, which will acquire and merge operations of three other affiliate companies, namely, Vision Motors Limited (“VM”), Mahogany Industries (Fiji) Limited (“MIF”), and Vision Finance Limited (“VF”) to be used for repayment of bank loans and other business activities (the “Project”).
Courts commenced trading in Fiji in 1971 and currently is one of the Fiji’s largest retailers of electrical goods, furniture, computers, audio-visual equipment, floor coverings, sports goods and other products, with store outlets located in all major cities and towns in Fiji. Courts also provides consumer finance for its clients. Currently Courts operates 25 retail stores and 5 Service Centers in Fiji. Total sales area is 17,100 square meters including three stores of 2,000-3,000 square meters each, one store of 1,100 square meters, and sales area of other stores is less than 1,000 square meters. Courts plans to commence its new store (estimated square area is 1,600 square meters) in Nakasi (Fiji) in 2016.
Vision Motors (“VM”) Limited has developed a diverse portfolio of world renowned motor vehicle franchises including heavy commercial trucks, light commercial trucks, commercial vans, pick – ups, sedans and forklifts. Ancillary merchandise includes range of automotive and industrial lubricants and automotive tires. The industrial division markets a range of industrial products such as lifts and elevators, insulators, pumps, generators, and buggy carts. In addition, the company offers trucks and cars services for its customers in Fiji.
Mahogany Industries (Fiji) Limited (“MIF”) is a furniture manufacturing and joinery business, primarily using mahogany and pine timber from Fiji’s forestry industry. Customers include the hotel sector, high-end dwellings and the export markets. It also retails furniture products to local retail customers through Courts stores. The major production facility of MIF is located in Lautoka, Fiji and comprises a drying kiln, machining, joinery, upholstery and polishing departments. The operational process includes drying of purchased timber, sawing, assembling, and polishing. In addition MIF operates a furniture manufacturing workshop in Suva, Fiji where joining, upholstery and polishing works are performed. The MIF Suva plant is planned to be relocated to Nakasi area.
Vision Finance Limited (“VF”) provides extended warranty on selected durable home goods and debt guarantee to customers of Courts that take consumer finance on their purchases. All activities of VF are performed at Courts premises.
Overview of IFC's Scope of Review
IFC’s environmental and social review of this project included:
Discussions with the company management (including the Chief Executive Officer, Human Resources (HR) manager);
Discussions with the company’s personnel regarding environmental, health and safety (EHS) performance and labor practices;
Site visits during May 18-19, 2015 to MIF facilities in Lautoka and Suva; six Court stores and two distribution centers in Nadi, Suva, Sigatoka, Nakasi, and Damodar; Vision Motors trade center and service facilities in Suva;
A review of environmental, health and safety (EHS) information provided in response to IFC’s environmental and social questionnaire and information obtained from follow-up discussions. Reviewed documentation includes policies and procedures of VIL e.g., on occupational health and safety, emergency response and planning, examples of internal EHS audits, results of workplace conditions review carried out in 2014 for MIF in Suva;
Discussion with representative of local community residing in the area adjacent to the MIF Lautoka site (Navutu village);
A review of Vision Finance Credit policy including requirements on collection process;
And
A review of labor documentation (e.g., labor statistics, HR policies and procedures).
IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.
Discussions with the company management (including the Chief Executive Officer, Human Resources (HR) manager);
Discussions with the company’s personnel regarding environmental, health and safety (EHS) performance and labor practices;
Site visits during May 18-19, 2015 to MIF facilities in Lautoka and Suva; six Court stores and two distribution centers in Nadi, Suva, Sigatoka, Nakasi, and Damodar; Vision Motors trade center and service facilities in Suva;
A review of environmental, health and safety (EHS) information provided in response to IFC’s environmental and social questionnaire and information obtained from follow-up discussions. Reviewed documentation includes policies and procedures of VIL e.g., on occupational health and safety, emergency response and planning, examples of internal EHS audits, results of workplace conditions review carried out in 2014 for MIF in Suva;
Discussion with representative of local community residing in the area adjacent to the MIF Lautoka site (Navutu village);
A review of Vision Finance Credit policy including requirements on collection process;
And
A review of labor documentation (e.g., labor statistics, HR policies and procedures).
IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Broad Community Support
Environmental & Social Action Plan
Related SII
