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Report Date : |
03.03.2012 |
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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Year of Establishment : |
2000 |
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Legal Form : |
General Partnership |
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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, as well as executing agricultural projects.. |
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No. of Employees : |
360 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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
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 01.07.2001, 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.
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).
Media report from February 2012 indicates that JAIN is interested in
acquiring Kibbutz Naan 50% share in subject (realizing its option) – see
CHARACTER.
1. Itzhak Gat, Joint Chairman,
2. Anil Jain, Joint Chairman,
3. Avner Hermoni, General Manager.
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, as well as executing
agricultural projects..
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 (owned by the kibbutz), from a plant in Kibbutz Dan, and from plants in
Mexico, Spain and Chile.
Note: "Kibbutz" is a typical local cooperative agricultural
settlement/ village.
Having 360 employees in Israel and 450 in the Group, including abroad.
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.
Subject's current stock is valued at NIS 50,000,000, and consolidated stock
is valued at NIS 130,000,000.
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.
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.
2008 sales claimed to be NIS 350,000,000, 80% for export.
2009 sales claimed to be NIS 400,000,000, 80% for export.
2010 sales claimed to be NIS 500,000,000, 80% for export.
2011 sales claimed to be NIS 500,000,000, 80% for export.
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 (partnership), non active.
NAAN MINING & QUARRYING ACS LTD.
JAIN Concern, a multinational corporation with multi product industrial
profile and manufacturers of drip and sprinkler irrigation systems and
components. Has 22 plants worldwide, trading in the India (BSE, NSE), markets,
current market value INR 40.69 billion, 2011 sales INR 33.48 billion.
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.
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
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.
In 2007, 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.
As part of a re-organization facing the world economic crises which erupted
in the end of 2008, it was reported in January 2009 that subject laid off 25 of
its employees in Israel.
In February 2009 it was reported that subject launched 2 production lines
with an investment of NIS 10 million.
In June 2011 it was reported that subject launched a production line in
India with an investment of NIS 15 million, of a total of NIS 100 million in
the Indian production plant. It was further reported that subject's expects
that this production line will increase subject's world market share to 15%.
Also subject invested € 5 million in a production line in Spain.
In February 2012 it was reported that JAIN is interested in realizing its
"call" option and acquire the additional 50% of subject shares. Price
not forthcoming, however according to the report, it will be higher than of the
original 50% purchase. Activities will remain in Israel.
Good for trade engagements.
Maximum unsecured credit recommended several US$ millions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.35 |
|
|
1 |
Rs.78.68 |
|
Euro |
1 |
Rs.65.63 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.