|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
NILIT LTD. |
|
|
|
|
Registered Office : |
Mauricio Levi Rd., Ramat Gavriel Industrial
Zone, Migdal Haemek 2310201 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
1969 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, exporters and marketers of nylon 6.6
polyamide fibers. |
|
|
|
|
No. of Employees : |
1,500 |
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 – March 31st, 2012
|
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 |
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
NILIT LTD.
Telephone 972
4 654 46 66
Fax 972 4 654 46 03
P.O. Box 276, Migdal Ha'emek
Mauricio Levi Rd.
Ramat Gavriel Industrial Zone
MIGDAL HAEMEK 2310201 ISRAEL
Originally
established in 1969 as a non-registered business by the Late Ennio Levi.
Converted into a private limited company and
registered as such as per file
No. 51-056215-6 on the 07.02.1971.
Commercial
manufacturing begun in 1974.
Converted into a public limited liability company
and registered as such as per file No. 52-003473-7 on the 27.07.1983.
Reconverted into a private limited company and
registered as such as per file
No. 51-135719-6 on the 16.01.1989.
Authorized share
capital NIS 250,000,000.00, divided into - 250,000,000 ordinary shares of NIS
1.00 each, of which 246,500,000 shares amounting to NIS 246,500,000.00 were
issued.
Subject is fully owned by NILIT B.V. of the Netherlands (shares are held
via trust company ACHU FRANK INDUSTRIAL HOLDINGS LTD. by a local Attorney
Office Zellermayer, Pelossof & Co. Adv.).
NILIT B.V. is owned by:
1.
Michael Levi (& family), 80%
2.
MARKSTONE CAPITAL GROUP, 20%, managed by Amir Kess
and Ron Lubash.
In May 2005, the MARKSTONE Investment Fund acquired 20-21% of subject (through
parent company), in consideration of US$ 73 million.
1. Michael Levi, Chairman,
2. Arnon Tiberg,
3. Meir Het,
4. Ronen Melnik,
5. Avi Pelossof, Adv.,
6. Amnon Lipkin-
7. Amir Kess, of the MARKSTONE
Fund.
Arieh Gottlieb.
Manufacturers, exporters and marketers of nylon 6.6 polyamide fibers.
The company, itself and via subsidiaries, operates in two divisions:
1)
Fibers Division: Raw material for own yarns
manufacturing (nylon polymers) of fashion body wear, active wear, legs wear and
intimate apparel.
As part of the Division, subject operates in 3 Joint Ventures:
S.N. FIBRES, 51% (rest 49% held by SARA LEE
of the USA)
U.N.F. INDUSTRIES, 50% (rest 50% held by
UNIFI INC of the USA)
P.N.F. INDUSTRIES, 51% (rest
49% held by GENERAL)
2)
Plastics Division: Resins (polymers and
co-polymers) for the Engineered Plastics industry, designed for the automotive
and electronics industries.
Some 95% of sales are for export, to some 30 countries. Having hundreds
customers.
Amongst local clients: DELTA GALIL INDS., ASIV TEXTILE INDS., POLYRAM RAM-ON
INDS., MARANIT, etc.
Amongst foreign clients: UNIFI, TYCO ELECTRONICS, ROBERT BOSCH, DELPHI
AUTOMOTIVE, etc.
Among local suppliers: CARGAL, PALAS ET REGEV INDS., CAROSTEC, PAZ OIL,
A. ORLAN, INTERMEC BAR-CODE, K.I.T TEX INTERNATIONAL, etc.
Amongst local service providers: FAVARDI STUDIO, of Italy (fashion
design), RIUMAR SHIPPING (forwarders).
Operating from
owned premises (offices, plants, warehouses), on an area of 350,000 sq. meters,
in Mauricio Levi Road, Industrial Zone, Migdal Ha'emek, and from manufacturing
plants in USA, Germany, Italy and China.
Also operates from
owned offices in the Textile House, 2 Kaufman Street, Tel Aviv. Also maintain
offices worldwide.
Having 730 employees in Israel (had 700 employees in 2009, same as in
2008). Having over 1,500 employees in NILIT Group (Israel and abroad).
Until 2007, we are
informed that over US$ 300 million have been invested in subject.
In MARKSTONE
Fund’s statements for the 1st half of 2010, the value of their
investment in subject was US$ 104.8 million (initial investment US$ 72.8
million).
Subject and
several of its subsidiaries are “Approved Enterprises” and as such enjoy tax
benefits and State incentives.
In November 1999,
the Israeli Investment Center (IIC) approved an US$ 2.4 million investment plan
for the expansion of subsidiary S.N. FIBRES plant.
In November 2001 and December 2002, IIC approved US$ 12.8 million and
US$ 30 million investment plans (respectively) for the expansion of subject’s
plant.
In March 2006, it was reported that subject received a 5 year tax
benefit from IIC.
In January 2012 it
was reported that subject is going to make a huge investment of NIS 300 million
in expansion, which will include NIS 100 million in expanding its plants
compound in Migdal Ha'emek, and the reminder of the investment in its plants in
Germany and China. Subject asked the IIC for NIS 20 million grant for the
Migdal Ha'emek plan, in which it employ further tens of new workers.
Other financial
data not forthcoming (as principle, officials do not divulge financial
statements and their content).
There is 1 floating charge for an unlimited amount registered on the
company's assets (fixed assets), in favor of the State of Israel (charges
placed in August 2011).
Subject’s 2008
sales claimed to be US$ 200 million.
Consolidated 2008 sales
claimed to be US$ 400 million, 95% for export.
Increase was also
explained in the inclusion of acquisitions and subsidiaries (some of which
apparently were formerly considered as “sister companies”).
Subject’s 2009
sales claimed to be US$ 200 million.
2009 consolidated
sales claimed to be US$ 400 million, 95% for export.
2010 consolidated
sales claimed to be US$ 500 million, 95% for export.
2011 consolidated
sales claimed to be are US$ 550 million, 95% for export.
NILIT PLASTICS EUROPE
S.R.L., Italy,
NILIT PLASTICS
EUROPE GMBH & CO. KG, Germany,
NILIT GERMANY
GMBH, Germany,
NILIT CHINA,
China,
NILIT NYLON
TECHNOLOGIES (SUZHOU) CO., LTD., China,
NILIT (SUZHOU)
PLASTICS ENGINEERING CO., LTD., China,
NILIT AMERICA,
INC., USA
S.N. FIBRES LTD.,
51%, plant in Migdal Ha'emek,
U.N.F. INDUSTRIES
LTD., 50%, plant in Migdal Ha'emek,
P.N.F. INDUSTRIES
LTD., 50%, plant in Migdal Ha'emek.
Also part of the NILIT BV Group:
EURONIL
THERMOPLASTIC COMPOUNDS SpA, Italy.
HANIT FIBERS LTD.
MEDITERRANEAN CAR
AGENCY LTD., controlled by Michael Levi, sole local importers and agents of
vehicles by FIAT, LANCIA and ALPHA ROMEO.
Bank Leumi
Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Bank Hapoalim Ltd.,
Central Business Branch (No. 600), Tel Aviv.
Israel Discount
Bank Ltd., Main Branch (No. 010), Tel Aviv.
Mizrahi Tefahot
Bank Ltd., Main Business Center Branch (No. 461), Tel Aviv.
Nothing unfavorable learned.
Subject is one of the leading companies in
its field in the world.
Subject’s Chairman, Michael Levi, is well-known in the business
community.
Subject is ISO 9001, QEKO-TEX certified.
Subject has business co-operations with leading global textile
companies, including SARALEE, UNIFI and POMPEA SpA.
In May 2000, it was reported that subject and UNIFI of the USA will
invest
US$ 50 million in establishing a new nylon yarn plant in the NILIT
compound.
It was reported that UNIFI will acquire US$ 50 million worth of nylon yarns
per year from subject.
MARKSTONE Fund in Israel is managed by Ron Lubash and Amir Kess, and is
part of the MARKSTONE Capital Group, a private equity fund which specializes in
investments in mature and leading industrial companies and in the capital market.
The fund raised close to US$ 800 million since 2004 for its portfolio
investment, mostly (some 90%) from American institutional investors (e.g. New
York State Pension Fund, California Public Employees'
Retirement System), and has invested some US$ 560 million in several local companies.
In January 2006, it was reported that NILIT Group (NILIT B.V.) acquired
INVISTA, one of Europe leading synthetic fibers company, for US$ 400 million.
In June 2007 it was reported that NILIT Group is acquiring FRISETTA, a
German plastic manufacturer owned by the Rueb family, in consideration of
several tens of US$ millions. According to the reports, based on MARKSTONE
reports, FRISETTA supplies polymers to the automotive industry, with annual
sales of
€ 60 million. It has 180 employees, 2 manufacturing
plants and enjoys good reputation in the German market.
This company joins subject's Italian subsidiary,
which already operates in this field (EURONIL).
In the beginning of
In May 2008 Group
launched a plant in Suzhou, China with an investment of US$ 10 million, with
100 employees. In October 2009 it was reported that an additional investment of
US$ 4 million was made for expansion (including some 50 new employees).
According to a report from February 2010, an additional investment of US$ 3
million is planned during 2011.
In June 2011 it was
reported that subject intends to erect a 3rd plant in China.
Subject –like many other firms in the field- were hit by the effects of
the global economic crisis that erupted in 2008 2nd half. According
to media reports, subject’s profitability was completely eroded during the
crisis. Nevertheless, according to the statements published by the MARKSTONE
Fund for 2009 subject came over the crisis, from which it exited in strength
after the acquisition of NYLSTAR (see below) was
completed during 2009.
In May 2009 it was
reported that subject acquired American Nylon fibers manufacturers NYLSTAR from
J.P. MORGAN CHASE for estimated sum of several US$ millions (US$ 20 million
according to one report). NYLSTAR 2008 sales were circa US$ 53 million and has
some 200 employees. Purchase said to be from NILIT’s own equity, though subject
intends to raise capital from an American bank for the current operations of
the acquired firm.
In February 2010 it
was reported that subject's owners are planning an IPO of subject in the end of
2010 or the beginning of 2011. So far the IPO did not take place.
In September 2011 it
was reported that IT company MATRIX completed the project to upgrade all of
subject's IT storage systems, as part of the expansion move. The value of the
project is estimated at over NIS 600,000.
Sales by local Textile, Clothing and Fashion Industries
experienced decrease in sales over the last couple of 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.
Good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.