MIRA
INFORM REPORT
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Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
NAANDAN JAIN IRRIGATION ACS LTD. |
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Registered Office : |
Mobile Post Ayalon
NAAN 76829 |
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Country : |
Israel |
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Date of Incorporation : |
2000 |
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Legal Form : |
Agricultural Cooperative Society |
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Line of Business : |
Developers, manufacturers, marketers and
exporters of irrigation and sprinkling equipment, “Naan-Tif” integrated dip tubing,
die casting, hot stamping, metal foundry, plastic injection moldings, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name
& address
NAANDAN JAIN IRRIGATION ACS LTD.
(ACS stands for Agricultural Cooperative Society)
Telephone 972 8 944 22
33
Fax 972
8 935 06 26
Mobile Post Ayalon
NAAN 76829 ISRAEL
HISTORY AND LEGAL FORMATION
An Agricultural Cooperative Society (ACS), operating since 2000, registered
as per file No. 57-003551-9, succeeding a General Partnership, registered as
per file No. 54-009281-4 on the 29.11.1966 (under the name NAAN IRRIGATION
SYSTEMS).
Partnership was founded with the view to take over the activities of a
non-registered firm, originally established in 1938 as an industrial department
of Kibbutz Naan, under the name of “NAAN MECHANICAL WORKS”.
As of the 1.7.2001, subject took over all the activities of DAN SPRINKLERS
(a limited partnership established by Kibbutz Dan in 1973) and merged it into
its own activities.
As a result of this move, subject changed its name to NAANDAN IRRIGATION
AGRICULTURAL COOPERATIVE SOCIETY LTD.
Following the entrance of the JAIN Concern as a 50% shareholder in subject
in June 2007, name was changed again to the present one.
OWNERSHIP
1. Kibbutz
Naan, 50%, a cooperative society, operating a communal agricultural settlement,
2. JAIN
Concern, of India, 50% a public limited company, whose shares are traded on
the Bombay Stock Exchange.
In April-May 2007 Kibbutz Naan acquired from Kibbutz Dan its 31% holdings
in subject. According to reports, Kibbutz Naan paid Kibbutz Dan NIS 30 million
for their stakes, following which it reached 100% in subject.
In June 2007 the JAIN Concern of India acquire from Kibbutz Naan 50% of
subject, reportedly according to a company value of US$ 45 million (after the
money).
MANAGEMENT
1. Itzhak Gat - Chairman,
2. Avner Hermoni - General Manager (since 1.1.08).
BUSINESS
Developers, manufacturers, marketers and exporters of irrigation and
sprinkling equipment, “Naan-Tif” integrated dip tubing, die casting, hot
stamping, metal foundry, plastic injection moldings, etc.
80% of sales are exports.
Subject’s sales are to 80 countries worldwide.
Among local clients are municipalities, agricultural societies, HAMASHBIR
LAHAKLAI, AMIR SUPPLY CO., etc.
Most purchasing is from import.
Among local suppliers: CARMEL OLEFINS, BERMAD, ODIS IRRIGATION EQUIPMENT,
BANIAS, NORDIA SPRINGS, PLASSIM FITTINGS, etc.
Operating from an owned plant, on an area of 25,000 sq. meters, in Kibbutz
Naan, from a plant in Kibbutz Dan, and from plants in Australia (Melbourne),
USA (California), Brazil, Spain and Chile.
Having 350 employees in Israel (same as in 2006) and 500 in the Group,
including abroad.
MEANS
According to reports on the transaction in mid 2007, JAIN acquired 50% in
subject in a deal reflecting a company value of US$ 45 million for subject.
Current stock is valued at NIS 70,000,000 (was valued at NIS 65,000,000 in
2007, same as in 2006).
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives.
In November 2003, the Israeli Investment Center approved US$ 3 million
investment plan for the expansion of subject’s plant.
ANNUAL
SALES
2004 sales claimed to be NIS 300,000,000, 80% for export.
2005 sales claimed to be NIS 310,000,000, 80% for export.
2006 sales claimed to be NIS 310,000,000, 80% for export.
2007 sales claimed to be NIS 350,000,000, 80% for export.
Subject is profitable.
OTHER
COMPANIES
Subsidiaries:
NAANDAN BRAZIL, 100%,
NAANDAN PLASTICA, Spain, 100%,
NAANDAN AUSTRALIA,
NAANDAN CHILE,
NAANDAN MEXICO,
NAANDAN FRANCE,
NAANDAN ITALY,
NAANDAN AGRO PERU LTD.,
POINT SOURCE IRRIGATION LTD.
NAANDAN AGRO-PRO LTD., 100%, large-scale agricultural projects worldwide,
focusing on indoor production and post-harvest technologies.
Kibbutz Naan also controls:
VIDEO NAAN, NANA JEWELRY, as well as a festive hall.
NAAN IRRIGATION SYSTEMS LTD., non-active.
NAAN IRRIGATION SYSTEMS (partnership), non active.
BANKERS
Bank Hapoalim Ltd., Rehovot Branch (No. 615), Rehovot, account No. 120400.
A check with the Central Banks’ database did not reveal any negative
information regarding subject’s a/m account.
Bank Leumi Le'Israel Ltd., Rehovot Business Branch (No. 978), Rehovot.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject is ISO 9001:2000 certified.
On the 1.7.2001, subject, until then fully owned by Kibbutz Naan, took over
all activities of DAN SPRINKLERS, in consideration allocating Kibbutz Dan 31%
of its shares.
Kibbutz Naan is well established. Kibbutz Naan also cultivates a large area
of agricultural land, including fruit plantation, operate dairy farming,
poultry etc.
In January 2004,
it was reported that subject will manage a US$ 40 million agricultral project
in Mexico.
In September 2004,
it was reported that subject will erect a plant in Spain, in an investment of €1
million (partnered with GRUPO TPM).
In November 2004,
it was reported that subject will erect a 4,000 sq. meters plant in Australia,
with an investment of US$ 1.3 million.
In April 2005, it
was reported that subject signed a US$ 2 million deal to provide sprinklers to
a vineyard in Chile.
In December 2005,
it was reported that subject signed a NIS 3 million deal in Italy.
In January 2006, it
was reported that subject signed a US$ 2.5 millon contract in Chile.
In July 2006, it
was reported that subject will supply irrigation equipment in volume of US$ 1.5
millon to a national forest project in Turkmenistan. The deal was won via an
Israeli project firm called JOKAS.
In October 2006,
it was reported that subject launched a new logistics center in Mexico, of
1,500 sq. meters.
As part of its expansion efforts, subject was seeking a strategic investor,
which will fuel capital to finance the plans. The global irrigation market was
valued (2006) at US$ 1 billion annually, and is keep growing, due to the
diminishing water resources problem. Subject's main local (and global)
competitors are NETAFIM and PLASTRO GVAT.
In March 2007, subject began negotiations with Indian concern JAIN, the
world's 2nd largest (after NETAFIM) manufacturers of irrigation
systems and agricultural inputs. The deal was concluded according to reports in
mid May, where JAIN acquired 50% in subject according to a company value of US$
45 million (paying NAAN NIS 90 million which was equal to circa US$ 22.5
million).
In parallel, subject announced a US$ 2 million supply contact to tea
plantations in India, and projected US$ 1.8 million contract in Japan.
In July 2007, it was reported that subject is in the move of gaining
control in its international subsidiaries, with total investment of US$ 10
million.
In June 2008 reported it has recently opened a subsidiary in Lima, Peru, to
reply to the growing technology demands of Peru’s agriculture.
SUMMARY
Good for trade engagements.
NOTE
Please take note to the correct address of subject. As reported above,
subject also operates from Kibbutz Dan, however it is not the main address.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.30 |
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UK Pound |
1 |
Rs.84.03 |
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Euro |
1 |
Rs.66.42 |
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. |
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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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)