MIRA INFORM REPORT

 

 

Report Date :

05.05.2012

 

IDENTIFICATION DETAILS

 

Name :

LUXEMBOURG INDUSTRIES LTD.

 

 

Registered Office :

P.O. Box 13, Tel Aviv (6100010), 27 Hamered Street, Tel Aviv        6812509

 

 

Country :

Israel

 

 

Date of Incorporation :

23.12.1997

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials

 

 

No. of Employees :

170

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

No complaints

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

(31.12.2011)

Current Rating

(31.03.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

LUXEMBOURG INDUSTRIES LTD.

Telephone  972 3 796 43 00

Fax           972 3 510 04 74

P.O. Box 13, Tel Aviv (6100010)

27 Hamered Street

TEL AVIV  6812509 -ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-256854-4 on the 23.12.1997, under the name LIMADELTA LTD., which changed to LIMA DELTA LTD. on 18.6.1998, which changed to the present one on 11.12.2003.

 

Following structural changes, during 2000 subject became dormant for few years (see more below - CHARACTER).

 

As of the 1.1.2004, subject assumed all the industrial and commercial activities from parent LUXEMBOURG PAMOL LTD. (founded in the 1930s and incorporated in 1968), which became a holding company.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 34,300.00, divided into -

            34,300 ordinary shares of NIS 1.00 each,

of which 1,106 shares amounting to NIS 1,106.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by LUXEMBOURG PAMOL LTD., owned by the Luxembourg family.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

David Luxembourg.

 

 

BUSINESS

 

Manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields (mainly of crop protection chemicals).

 

65% of sales are for export.

 

Among clients: AMIR SUPPLY CO., HAGARIN, HAMASHBIR FOR AGRICULTURE, CHEMAGIS, etc.

 

Among local suppliers: PACHMAS METAL & PLASTIC, PLASTIV YAKUM, GADOT CHEMICAL TERMINALS, MAGAL ISRAEL GAS & OIL ENT., CHEMICHLOR (2005) CHEMICAL MARKETING, etc.

Among service providers: LAOR ENGINEERING.

 

Operating from:

1.  Owned a plant (long-term leas-hold from the State), on an area of 50,000 sq. meters (one third is built), in Ramat Hovav Industrial Area.

2.  Owned plant, on an area of 22,000 sq. meters, in Industrial Area, Arad (area code 89101).

3.  Rented warehouses, on an area of 1,250 sq. meters, in the Ashdod Port area.

4.  Main headquarters offices in 27 Hamered Street, Tel Aviv (owned by the Group).

(Note: long-term leas-hold from the State is practically ownership of the property)

International branches in: Brazil, U.S.A, Argentina, Dominica, Cyprus, Costa Rica and Serbia.

 

Having 160 employees (same as in 2011 and 2010, had 170 employees in 2009, 180 in 2008, 160-170 employees during 2007).

 

 

MEANS

 

Group’s current consolidated stock (chiefly held by subject), is valued at

US$ 10,000,000 (was valued at US$ 9,000,000 in mid 2011, US$ 10,000,000 in the beginning of 2010).

 

B/S shows (last obtainable):

                                                                                         NIS (thousands)

                                                                               31.12.2007               31.12.2008

ASSETS

Current assets                                                                 113,000                   109,000

Fixed assets                                                                      62,000                     59,000

Intangible assets                                                                         -                      7,000

                                                                                       175,000                   175,000

                                                                                    =======                =======

 

LIABILITIES

Current liabilities                                                                83,000                     76,000

Capital note – liability for shareholder                                   33,000                     39,000

Equity                                                                               59,000                     59,000

                                                                                       175,000                   175,000

                                                                                    =======                =======

 

Equity to the 31.12.2009 was US$ 15,000,000 (≈NIS 57,000,000).

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives.

In May 2004, the Israeli Investment Center approved a US$ 1.37 million investment plan for the expansion of subject’s plant in Arad.

 

There are 3 charges for unlimited amounts registered on the company’s assets (vehicles, machinery & equipment), in favor of Bank Leumi Le’Israel Ltd., a leasing company and the State of Israel (last charge placed October 2011).

 

 

REVENUES

 

2005 sales claimed to be US$ 25,000,000, making a net profit of US$ 1,500,000.

2006 sales claimed to be US$ 30,000,000, ending with a net profit (exact figures not forthcoming).

2007 sales claimed to be US$ 37,000,000, making a net profit of US$ 1,300,000.

2008 sales claimed to be US$ 44,000,000, of which 65% were exports.

2009 sales claimed to be US$ 35,000,000, of which 65% were exports.

2010 sales claimed to be US$ 38,000,000, of which 65% were exports.

2011 sales claimed to be US$ 45,000,000, of which 65% were exports.

 

 

OTHER COMPANIES

 

LUXEMBOURG Group includes:

LUXEMBOURG PAMOL LTD., parent company, a holding company,

LUXEMBURG CHEMICALS AND AGRICULTURE LTD., non-active,

LUXEMBOURG HOLDINGS (1955) LTD., real estate holding.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv,
account No. 417400/25.

Bank Hapoalim Ltd., Central Business Branch (No. 600), Tel Aviv, account No. 613803.

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m accounts.

 

The First International Bank of Israel Ltd., Industrialists' House Branch (No. 057), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

In June 2003, it was reported that a group of farmers filed a NIS 2.5 million lawsuit against subject's parent, claiming the products sold damaged their vines.

We have not heard in this regard since, hence we believe it has been resolved.

 

The LUXEMBOURG Group is a long established family business, enjoying good reputation.

 

Subject is ISO 9001:2000 certified.

 

In 1997 parent company established subject with DOW AGROSCIENCE B.V. (HOLLAND), a subsidiary of DOW CHEMICALS (one of the largest corporations in the world in the chemical field). Each party held 50% of the new company (then called LIMA DELTA). The company was established in order to use the technologies and know how of both parent companies to manufacture the pesticide “Chlorapiripus” in a plant in Ramat Hovav and distribute it worldwide.

However, during 2000, subject ceased all its activities and retrenched its 60 employees. Later, in 2004, subject resumed activities (in present form).

 

During 2000, parent LUXEMBOURG PAMOL sold its shares (50%) in LUXEMBURG PHARMACEUTICALS LTD. to the MAKHTESHIM-AGAN Group.

 

Subject is part of the “Arad Initiative”, a group of industrial companies which won in mid 2008 the Chief Scientist Office (Industry & Trade Ministry) tender to establish an industrial Technological Incubator, designed to support and promote technology-based start-up ventures in various industrial areas. The programme is taking place in the Negev Region in the country’s south, and subject is the partner who supports ventures in the chemistry and biology fields.

 

The local Chemical industry is considered one of the strongest in the market, with impressive growth trend in recent years. The chemical industry includes minerals extracted, refinery and petrochemical industry, manufacturing of pesticides for agriculture, pharmaceuticals and bio-technology industries, as well as other consumer products related industries, including paints, cosmetics, cleaning materials and others. The industry employs over 30,000 employees.

 

Total turnover of the local Chemical Industry in 2008 amounted to US$ 26 billion, comprising some 30% of Israel’s total industrial turnover. Sales for export recorded US$ 14 billion, comprising some 35% of Israel’s total export, continuing years of constant growth. Growth trend reversed in 2009, due to the economic crisis in the global markets. The Chemicals (incl. Pharmaceuticals) and Oil Refinery production in 2009 marked 7% decrease from 2008. Export of Industrial Chemicals plunged by 23.5% in 2009 from 2008, totaling US$10.4 billion.

The Chemical sector recovered in 2010, where export of Industrial Chemicals rose by 34.3% from 2009, reflecting the recovery in global markets, and kept the upward trend in 2011, reaching US$ 16.5 billion (of which US$ 7.3 billion were of pharmaceuticals), 18.6% up from 2010.

 

According to Central Bureau of Statistics data, investments in imported machinery and equipment from for the Chemical Industries (incl. Pharmaceuticals) in 2010 summed up to NIS 1,045 million, representing a 24.4% decrease in real terms from 2009 (after 0.5% decrease in 2009 from 2008 and 18.7% increase in 2008 from 2007).

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of 2012).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.72

UK Pound

1

Rs.86.98

Euro

1

Rs.70.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.