MIRA
INFORM REPORT
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Report Date : |
21st
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
GROFIT PLASTICS FACTORY ACS LTD. |
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Registered Office : |
Mobile Post
Eilot, Grofit 88825 Israel |
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Country : |
Israel |
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Date of Incorporation : |
15.01.1989 |
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Com. Reg. No.: |
55-000992-2 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Manufacturers,
exporters and marketers of polyethylene and plastic bags, for the foodstuff
field, electronics and for general industrial applications (flexible,
anti-corrosion - VIC, zipper and slider bags, etc). |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company name & Address
GROFIT
PLASTICS FACTORY ACS LTD.
Telephone 972
8 635 77 12
Fax 972 8 635 77 23
Mobile Post Eilot
GROFIT 88825 ISRAEL
HISTORY
Originally
established as a limited partnership and registered as per file
No.
55-000992-2 on the 15.1.1989 under the style GROFIT PLASTICS.
Converted
into an Agricultural Cooperative Society (ACS) and registered as such as per
file No. 57-004116-0 in 2003.
OWNERSHIP
Subject
is fully owned by Kibbutz Grofit, a cooperative society operating a communal
agricultural settlement.
GENERAL MANAGER
Ami Frucht.
BUSINESS
Manufacturers,
exporters and marketers of polyethylene and plastic bags, for the foodstuff
field, electronics and for general industrial applications (flexible,
anti-corrosion - VIC, zipper and slider bags, etc).
Over
50% of sales are for export.
Among
clients are many farmers, as well as corporations: DELTA GALIL INDS., etc.
Among
local suppliers: A. GELLIS & SONS, CARMEL OLEFINS, GENIGAR PLASTIC PRODUCTS
CO., etc.
Operating
from premises (offices and plant) owned by the shareholders, on an area of
3,000 sq. meters in Grofit, a locality in the South of Israel.
Having
40 employees (same as in 2004 and 2005).
MEANS
Stock
is valued at NIS 3,000,000 (same as in 2005).
Subject
is an “Approved Enterprise” and as such tax benefits and state incentives.
In
February 1999, the Investment Center Administration approved a
US$ 346,000 investment plan for the expansion
of subject’s plant.
ANNUAL SALES
2003
sales claimed to be NIS 21,000,000, 50% for export.
2004
sales claimed to be NIS 24,000,000, 50% for export.
2005
sales claimed to be NIS 28,000,000, 55% for export.
First 10 months of 2006 sales claimed to be NIS
24,000,000, 55% for export.
OTHER
COMPANIES
GROFIT INC., subject’s 100% subsidiary in the U.S.A.,
plastic packaging plant.
Kibbutz
Grofit also controlls:
GROFIT BUSINESS ACS LTD.
GROFIT ATID ACS LTD.
GROFIT SHIKUN ACS LTD.
GROFIT MESHEK HAI – ACS LTD.
BANKERS
Mizrahi
Tefahot Bank Ltd., Eilat Branch (No. 470), account No. 427003.
Bank
Otzar Hahayal Ltd., Eilat Branch (No. 377), account No. 144010.
A check
with the Central Banks' database did not reveal anything detrimental on
subject’s a/m accounts.
CHARACTER AND REPUTATION
In
December 2005, it was reported that the Jewish Agency filed a NIS 2.93 million
lawsuit against Kibbutz Grofit, claiming the Kibbutz was late in its payments
for a loan which it was given in the past.
According
to the report, the remainder of the unpaid loan for the Agency was NIS 62.2
million.
In
February 2006 Kibbutz Grofit, subject's parent, approached the court to allow
them to defend themselves against the lawsuit and to file a counter lawsuit,
claiming the Jewish Agency violated a settlement contract they had, and sold
lands rights to third parties without the Kibbutz consent and without any
reward.
Apart
from that, nothing unfavorable learned.
In 2005
subject established a subsidiary, a plant for plastic
packaging manufacturing in the USA.
Kibbutz
Grofit was established in 1963. There are 200-300 members. Besides subject, the
kibbutz also deals in agricultural activities, specializing in dates
There
are some 120 packaging production plants in Israel, directly employing 9,500
employees.
According to the Chairman of the Packaging
and Design Institute the branch sales in 2006 expected to increase by 4%
comparing to 2005 and reach US$ 1.2 billion, of which US$ 310 million are
exports (a 11% increase).
During the first half of 2006, around US$ 50 million
were invested in the branch in R&D and design .
From the
Plastic and Rubber Manufacturers Association in Israel analysis, the following
figures were reported:
The
branches sales in the first half of 2006 grew by 6% comparing to the parallel
period in 2005, summing up at US$ 1.77 billion. Exports in this period
witnessed a 6.9% rise (reaching US$ 925 million) and 4.9% rise in sales to the
local market, which reached US$ 850 million.
Sales of
the branch in 2005 reached US$ 3.35 billion, 4.3% increase from 2004. The
increase included 8% increase in exports, which amounted to US$ 1.73 billion,
and 0.5% increase in sales to the local market, which reached US$ 1.6 million.
Exports
were to Europe (50%), North America (33%), South America (5%), Australia (5%),
Africa (5%) and the Middle East (2%).
Following
the growth in the branch, 200 new employees joined the industry in 2005, and
the current number of employees in the branch is 21,000.
SUMMARY
Notwithstanding
the lawsuit, considered good for trade engagements.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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