MIRA INFORM REPORT

 

 

Report Date :

05.11.2012

 

IDENTIFICATION DETAILS

 

Name :

DYCOL

 

 

Registered Office :

 

P.O. Box 50377, Tel Aviv (6150301) 2 Kaufman Street TEL AVIV   680129 

 

 

 

 

Country :

Israel

 

 

 

 

Date of Incorporation :

23.08.2000.

 

 

 

 

Legal Form :

General Partnership

 

 

 

 

Line of Business :

Importers and marketers of dyes and chemicals for the textile industry.

 

 

 

 

No. of Employees :

80 employees in AVCO.

 

 

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 :

Satisfactory

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

Source : CIA

Company name and address      

 

DYCOL

(Also known as DYCOL G.P.)

Telephone    972 3 516 38 24

Fax              972 3 516 42 21

P.O. Box 50377, Tel Aviv (6150301)

2 Kaufman Street

TEL AVIV     6801294           ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A general partnership, registered as per file No. 54-020525-9 on the 23.08.2000.

 

Subject is also known as DYCOL G.P., as G.P. stands for “General Partnership”.

 

 

PARTNERS

 

1.         AVCO CHEMICALS LTD., 60%, a private limited company established in 1972, owned (equally, via owned companies) by Avner Cohen and Zeev Lahat,

2.         LIDORR CHEMICALS LTD., 40%, a private limited company, established in 1970, controlled by owned by Vered and Emmanuel Lidorr.

 

 

GENERAL MANAGER

 

Haim Cohen.

 

 

BUSINESS

 

Importers and marketers of dyes and chemicals for the textile industry.

 

Sales are to many companies in the local textile industry.

 

All purchasing is from import.

 

Among clients: TCHELET DYEING & FINISHING WORKS TEXTILE, NEGEV TEXTILE, THE ISRAEL PROCESSING CO., DELTA GALIL INDUSTRIES, ABIR TEXTILE INDUSTRIES, KITAN TEXTILE INDUSTRIES, OFFIS TEXTILE, etc.

 

Operating from AVCO CHEMICALS LTD. headquarters, in 2 Kaufman Street, Textile House, Tel Aviv, and from warehouses, on an area of 3,000 sq. meters, in the Industrial Zone of Beit Shemesh. Both premises are owned by AVCO CHEMICALS shareholders.

 

 

Has no salaried employees (all employees are considered AVCO CHEMICALS LTD. employees).

Having some 80 employees in AVCO.

There are 106 employees serving the AVCO Group and further some 70 employees in LIDORR Group (may be more, exact number unavailable).

 

 

MEANS

 

Current stock is valued at NIS 2,000,000 (was valued at NIS 2,500,000 in the end of 2010).

 

Other financial data not forthcoming.

 

 

REVENUES

 

2005 sales claimed to be NIS 25,000,000.

2006 sales claimed to be NIS 25,000,000.

2007 sales claimed to be NIS 24,000,000.

2008 sales claimed to be NIS 19,000,000.

2009 sales claimed to be NIS 12,619,000.

2010 sales claimed to be NIS 12,800,000.

2011 sales claimed to be NIS 12,696,000.

Sales for the first 9 months of 2012 claimed to be NIS 7,000,000

 

 

OTHER COMPANIES

 

LIDORR CHEMICALS LTD., importers and marketers of chemicals for the agricultural and plant protection fields and for sanitation (agro-chemicals). Sole local agents of, among others, BAYER, DESOWAG, DIAMANT, SYMRISE, LANXESS, DEGUSSA, DIEGEL, POLYMER LATEX, FECKEN KIRFEL, CREANOVA., etc. The LIDORR Group consists also of:

VETMARKET MARKETING LTD., 66.66%, importers, marketers and distributors of veterinary products for veterinarians, such as medicines, animal feed, etc.

LIAD CHEMICALS LTD., 75% manufacturers of chemicals for the plant protection chemical industry.

LICHEM CHEMICALS LTD., 33% by subject and the rest by subject's shareholders, manufacturers and marketers of plant protection chemicals.

CHEMI-DOR MARKETING LTD., local marketers of chemicals.

PROGARO LTD., deal in generic agricultural products and complementary services in the area of chemicals for the agriculture sector.

TREECHEM CHEMICALS LTD., importers and agents handling raw materials, mainly chemicals for the industries, representatives of HULS - of Germany.

LIDORR's shareholders also hold stakes in other companies, including start-ups.

AVCO CHEMICALS LTD., manufacturers, marketers and exporters of chemicals and substances for the textile industry. Consolidated 2010 sales were NIS 170 million. Also holds:

CHEMIPRINT, 70%, a general partnership, importers, manufacturers and marketers of chemicals for printing field.

Also held by AVCO shareholders:

CHEMIART, importers distributors and marketers of chemical raw materials for all sorts of industries.

AVCOLOR LTD.

K.G.N. TRADING LTD.

SINTOCHEM TECHNOLOGIES LTD., manufacturers, exporters and marketers of chemical substances.

AVCO FRANCE Sarl, France

AVCO KIMYEVI MADDELER TICARET LTD. (AVCO SYSTEMAS), Turkey.

AVCO MEX SA DE CV., Mexico, a production plant.

AVCO CHEM SA (PTY) LTD., South Africa, a production plant.

DYE INC., USA,

Also hold some 7% in COLDIS INVESTMENTS LTD., an investment and holding company.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Main Business Center Branch (No. 461), Tel Aviv,
account No. 021468.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject supplies to leading local textile manufacturers.

 

Both subject’s partners are well established and enjoy a favorable business reputation.

 

During 2009 and 2010 sales decreased due to local textile manufacturer K.A.N DYEING AND FINISHING LTD. which ceased activities, after encountering financial difficulties, while another major local textile manufacturer DELTA GALIL INDUSTRIES stopped to dying in Israel (in 2008 DELTA purchased from subject in volume of NIS 6,000,000 and in 2010 volume dropped to NIS 650,000).

 

Sales by local Textile, Clothing and Fashion Industries have been experiencing decrease in sales over the last years. The output by the local Textile and Clothing industries in 2009 fell down by 13% from 2008. Some 60% of the textile industry production is sold in the local market and the rest for export. Most exports were the North American markets (some 50%), and the industries suffered from the global economic crisis, mainly in the USA, as well as the slow-down in local market. In 2010 sales for export of the Textile, Clothing & Leather industries improved just slightly, with 3.5% increase from 2009, however in 2011 fell again by 6.6% (mainly due to global markets weakness) reaching US$ 858.7 million.

The local industry has been in state of crisis during last decade in face of amounting import from foreign competitors with cheaper production costs, forcing streamlining process, plants closure, and mostly resulting in the shift of textile manufacturing to low labor cost countries. There are around 14,000 employed in the textile sector in some 130 plants. In order to deal with the situation, the local textile industry diverted mainly to advanced technologies production, niches and design aspects.

 

According to the Central Bureau of Statistics, import of chemical raw materials for the local industries in 2011 increased by close to 17% from 2010, with value of imported chemical raw materials reaching US$ 4,942 million. This marks a continuing growth trend from 2010, when import rose by 18% from 2009 as the markets recovered from the crisis in 2009 (when import decreased by 18.5% comparing to 2008).

 

 

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.53.66

UK Pound

1

Rs.86.37

Euro

1

Rs.69.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.