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Report Date : |
16.10.2012 |
IDENTIFICATION DETAILS
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Name : |
C.T.S. CHEMICAL INDUSTRIES LTD |
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Formerly Known As : |
C.T.S. CHEMICAL INDUSTRIES 1974 LTD |
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Registered Office : |
P.O. Box 7169, Hod Hasharon, 4 Hacharash Street, Nve Neeman Industrial Zone, Hod Hasharon 4524075 |
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Country : |
Israel |
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Date of Incorporation : |
13.10.1974 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, marketers and
exporters of pharmaceutics own Rx and OTC and know-how products, including
dry solid dosage forms |
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No. of Employees : |
270 employees |
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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
C.T.S. CHEMICAL INDUSTRIES LTD.
Telephone 972 9 762 63 33
Fax 972 9 762 63 00
P.O. Box 7169, Hod Hasharon
4 Hacharash Street
Nve Neeman Industrial Zone
HOD HASHARON 4524075
ISRAEL
A private limited company, incorporated as per file No. 51-069568-7 on the
13.10.1974, succeeding private limited company, which was established in 1960
under the name NOVI SL LTD., which operated in the same line.
Although the company was registered on the 13.10.1974, actual business
activities only started on the 01.01.1983.
Originally registered under the name of C.T.S. CHEMICAL INDUSTRIES 1974
LTD., which changed to the present name on the 20.4.1982.
Authorized share capital NIS 29,000,000.00, divided into -
29,000,000
ordinary shares of NIS 1.00 each,
of which 22,000,000 shares amounting to NIS 22,000,000.00 were issued.
1. C.T.S. LTD., 94%, controlled by
Ms. Sigal First,
2. Meir Zussman Cohen, 3%, father
of Ms. Sigal First,
3. Ms. Dana Gior, 1.5%,
4. Ms. Sigal First, 1.5%.
1. Meir Zussman-Cohen, Chairman,
born 1930, founder of subject,
2. Ms.
Sigal First, General Manager (Meir Zussman Cohen’s daughter),
Developers, manufacturers, marketers and exporters of pharmaceutics own Rx
and OTC and know-how products, including dry solid dosage forms: pellets,
capsules, tablets and lozenges; oral solutions and drops.
Subject manufactures over 100 products, including own generic drugs, branded
generics and products manufactured in Israel under international know-how agreements
with Sanofi-Aventis, Vifor, Ethypharm, Mitsubishi Pharma and more.
Exports are to Russia, Ukraine, Turkey, South America, Far East, etc.
Local Marketing is via parent company – C.T.S. LTD., which markets to
hospitals, private pharmacies, drugstore chains and healthcare
funds.
Most of subject’s suppliers are foreign.
Among
local suppliers (for the C.T.S. Group): CHEMITCH, YES PHARMA.
Operating from owned headquarters premises, on an area of 2,100 sq. meters, in 4
Hacharash Street, Nve Neeman Industrial Zone, Hod Hasharon, and
from an owned plant, on a built area of 10,000 sq. meters
(on a plot of 12,000 sq. meters), in 3 Hakidma Street, Industrial Zone, Kiryat
Malachi.
CTS Group also operates from another plant in Haifa and from several logistic
centers nationwide.
Having 270 employees in C.T.S. Group, of which 110 employees in subject (as
of the beginning of 2012).
Owned
property (where subject is operating from, in Kiryat Malachi) was valued at US$
Other
financial data, including B/S data, not forthcoming, however the C.T.S. Group
is known to be financially solid.
Subject
is an “Approved Enterprise” and as such enjoys tax benefits and State
incentives.
In
August 2000 the Israeli Investment Center approved US$ 4.3 million investment
plan for the expansion of subject’s plant in Kiryat Malachi.
There
C.T.S. Group consolidated
sales:
2006 sales claimed
to be NIS 317,000,000, NIS 11,500,000 for export.
2007 sales claimed
to be NIS 335,000,000, NIS 9,500,000 for export.
2008 sales claimed
to be NIS 343,000,000, NIS 10,000,000 for export.
2009 sales claimed
to be NIS 330,000,000, NIS 10,000,000 for export.
Later sales
figures not forthcoming, estimated to be similar or even higher.
C.T.S. LTD., heading C.S.T. Group, who directly and via subsidiaries operate as
importers, exporters, manufacturers and agents of proprietary medicines and
pharmaceuticals for human and animal consumption, handling scientific and
hospital equipment, medical and technical supplies, insecticides and fumigation
equipment, agro-chemicals for plant protection (under the name “AGRICA”),
cosmetics, pets food and animal care products, etc. Sole local representatives
of ASTELLAS, DR. PET, CONTINENTAL NUTRITION, MITSUBISHI PHARMA, NYCOMED,
Also controls:
C.T.S.
NOVIS LTD., established 1961, manufacturers and marketers of cosmetic
preparations, importers and marketers of animal care products,
DR.
MERON CHEMICAL WORKS LTD., established 1959, manufacturer of pesticides and
exterminating products, for household or industrial use.
MEDI-CENTRIFUGES
LTD., (75%) established 1992, importers and wholesalers of medical equipment.
FEINGERSH M. &
CO. LTD., established 1968, wholesaler of orthopedic equipment and supplies.
AVSHALOM
CUSTOM SERVICES & TRANSPORT LTD., 48% controlled by subject and 12% by its
owner Mr. Meir Zussman Cohen.
Bank Leumi Le’Israel Ltd., Central Tel Aviv
Branch (No. 800), Tel Aviv,account No. 511100/60.
Bank Hapoalim Ltd., Belinson Branch (No. 552),
Petach Tikva,
account No. 65218.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
Nothing
unfavorable learned on subject.
Despite our
efforts, we were unable to speak with subject's officials, as they were aleways
unavailable. We left messages. In our previous interview in early 2012
officials refused to update financial details.
C.T.S. Group is one of largest pharmaceutical groups in Israel, originally starting
business activities in 1921.
Subject is a very
long established business, enjoying good reputation and considered among the
leading in the local market in their fields.
Subject is ISO 9002 certified.
Sveral years ago C.T.S.
Group also went through a re-organization and structural changes, including
getting rid of activities -in volume of NIS 25 million- that are not part of
its activitiy of pharmaceuticals and veterinary products, including the milk
substitutes and babies' accessories, as well as activities in the toiletries
field.
In early 2011 C.T.S Group
sold its 50% holdings in NOVOLOG, the local leading pharmaceutical logistics
and distribution company (representing top leading multinationals), to their
partners, PHARM-UP Group.
In August 2011 it was
reported that C.T.S. Group chose SALOMON LEVIN
& ELSTEIN LTD. (known as S.L.E - importers and distributors of
pharmaceuticals and allied goods), of the TEVA Group, to logosticly manage
C.T.S inventory, valued at NIS 500 million per year.
The Israeli market
for pharmaceuticals was estimated at US$ 1,600 million in 2008. Medicines for
human consumption comprised US$ 1,124 million of which, including from import
(which is around NIS 4,000). Medicines market in 2011 is estimated to be closer
to NIS 5,000 million.
Exports of
pharmaceuticals in 2011 reached US$ 7,275.1 million, representing 10% increase
from 2010 (rose 41.5% from 2009).
Sales for export
are to over 120 countries. Products included drugs, raw materials for medicine
production, veterinary medication.
There are some 13
generic pharmaceutics production companies in Israel and the industry employs
9,000 employees.
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).
Notwithstanding
the refusal to update financial details, considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.12 |
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UK Pound |
1 |
Rs.85.15 |
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Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.