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Report Date : |
19.04.2013 |
IDENTIFICATION DETAILS
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Name : |
C.L.P. INDUSTRIES
LTD. |
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Formerly Known As : |
C.L.P. GAL INDUSTRIES LTD., |
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Registered Office : |
Mobile Post Lachish Darom Negba 7985600 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.05.1991 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
printers, marketers and exporters of packaging, including aluminum packaging,
sophisticated, flexible plastic packaging and packaging materials from multi
layer sheets. Products are targeted for the food and medical sectors. Also manufacturers
of plastic sheets, which serve as raw materials for NBC kits and for
isolation and shedding of structures and agriculture crops. |
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No. of Employees : |
290 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. 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, and production from the Tama field is expected to
meet all of Israel's natural gas demand beginning mid-2013. 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
C.L.P. INDUSTRIES LTD.
Telephone 972 8 679 03 00
Fax 972 8 675 40 61
Mobile Post Lachish Darom
NEGBA 7985600 ISRAEL
A private limited company, incorporated as per
file No. 51-157149-9 on the 21.05.1991, under the name C.L.P. GAL INDUSTRIES
LTD., which changed to the present name on the 14.06.1999.
Subject was established in view of continuing
all the business activities of a limited partnership C.L.P. COATING LAMINATING AND
POLYPROPHYLENE, established in 1973 by Kibbutz Negba and Kibbutz Sde Yoav, also
continuing business activities originally founded in 1971.
Authorized share capital NIS 40,000,009.00,
divided into -
40,000,009
ordinary shares of NIS 1.00 each,
of which 35,000,009 shares amounting to NIS 35,000,009.00 were issued.
Subject is fully owned by TADBIK-PACK LTD., owned by:
1. TADBIK LTD., 91.2%, a public limited
company (bonds are publicly traded), controlled by: Ilan Drory (50.5%), and I. E. L. ISRAEL EQUITY LTD. (40.54%, owned (80%)
by Mendl Bros. of the U.S.A. and (20%) by Moshe Wexler),
2. ORIGO Fund, 4.8%
(via 2 funds: MANOF ORIGO 1 LIMITED PARTNERSHIP and MANOF ORIGO 2
LIMITED PARTNERSHIP), controlled and managed by CPA Gabi Trabelsi, Guy Vaadiya
and Dave Gal,
3. Meron Greenberg, 4% (holds directly 1.2% of TADBIK LTD.).
In mid 1999 TADBIK-PACK acquired shares in
subject from former shareholder, DELEK INVESTMENTS AND PROPERTY LTD., for NIS
17.1 million.
During 2004, Kibbutz Negba acquired Kibbutz Sde
Yoav shares (15%) in subject.
By June 2007 TADBIK-PACK completed a
transaction acquiring all Kibbutz Negba's share (50%) in
subject, in consideration of NIS 42.8 million.
In November 2011 ORIGO Leverage Fund invested NIS 10 million in exchange for 4.8% of TADBIK-PACK's shares (see more below).
1. Ilan
Drori, Chairman, Managing Director of TADBIK Group,
2. Eli
Meiron,
3. Ms.
Smadar Noy.
Shaul Shelach.
Manufacturers, printers, marketers and exporters
of packaging, including aluminum packaging, sophisticated, flexible plastic
packaging and packaging materials from multi layer sheets. Products are
targeted for the food and medical sectors.
Also manufacturers of plastic sheets, which
serve as raw materials for NBC kits and for isolation and shedding of
structures and agriculture crops.
58% of TADBIK Group sales are for export, to 132
clients.
Sales are to leading local and foreign
companies, such as: OSEM, TNUVA, VERED HAGALIL, MATA, , VITA, TARA,
STRAUSS-ELITE, AL-BAAD, ZAN LAKOL, SUNFROST, COCA COLA ISRAEL, NESTLE, UNILEVER
ISRAEL, PEPSICO, WALCAN, J.M. PACKAGING, ZER HITECH, etc.
Among suppliers: PLASTO SAC, GADOT CHEMICALS,
POLYON BARKAI INDS., BLUE COLOR, etc.
Sole local representatives of WOLF, of Germany.
Operating from rented plant and offices, on an
area of 25,300 sq. meters (on which 12,000 sq. meters built) in Kibbutz Negba
(which is also the registered address of subject).
Also operating from a plant in Russia and from
marketing offices in South Africa, Spain and the USA. Also working with agents
worldwide.
Having some 290 employees (had 280 employees in
beginning of 2011, had 265 employees in 2009). This is before the acquisition
of POLYON BARKAI activities, which took place in August 2012, including some 80
employees (see more below).
Having 901 employees serving TADBIK Group.
Subject's consolidated B/S shows (last
obtainable):
NIS
(thousands)
31.12.2010 31.12.2009
ASSETS
Current assets:
Cash
and cash equivalents 14,911 996
Customers 74,932 79,456
Other
debtors 3,012 2,082
3rd
parties 966 1,249
Stock 45,165 36,698
138,986 120,481
Non-current assets
Financial assets 213 104
Fixed assets 62,766 68,397
Intangible assets 564 687
63,543 69,188
202,529 189,669
======= =======
LIABILITIES
Current liabilities 115,301 93,574
Non-current liabilities 30,027 43,121
Equity 57,201 52,974
202,529 189,669
======= =======
Total assets
attributed to the Flexible Packaging Segment in the 2012 annual financial
statements of TADBIK LTD. (practically subject and its subsidiaries) were: NIS
264,772,000 (was NIS 211,661,000 on the 31.12.2011).
Stock was valued at NIS 36,000,000 in February
2012.
Subject is an “Approved Enterprise” and as such
enjoys tax benefits and State incentives. In August 2001 the Israeli investment
Center (IIC) approved a US$ 8.2 million investment plan to expand subject’s
plant in Negba.
In February 2004, the IIC approved a further US$
2.4 million investment for the expansion of subject’s plant.
"Grandparent" company TADBIK LTD. B/S
shows (NIS thousands):
31.12.2011 31.12.2012
Total assets 529,817 570,506
(of which current assets) 326,034 330,443
Equity 105,290 118,419
In January 2008, TADBIK raised NIS 55 million
from institutional investors, in bonds issuance through the Stock Exchange.
In October 2011 parent TADBIK LTD. signed an
agreement with ORIGO Leverage Fund, in which ORIGO will provide subject NIS 10 million in
exchange for 4.76% of subject's shares, plus a NIS 40 million loan and an option to
increase stake by further 8.7%), reflecting a company value of NIS 210 million
for TADBIK PACK. The deal was completed in November 2011.
There are 13 charges for unlimited sums, as well
as 2 charge for the sums of NIS 2,000,000.00 and US$ 2,500,000 registered on
the company’s assets (on equipment & machinery), in favor of the State of
Israel, Mercantile Discount Bank Ltd., Bank Hapoalim Ltd., The First
International Bank of Israel Ltd., Mizrahi Tefahot Bank Ltd. and Bank Leumi
Le’Israel Ltd. (last charge placed in February 2013).
Subject’s consolidated Statements of Income:
NIS
(thousands)
Year
ended December 31.12
2007 2008 2009
Sales 251,351 232,888 227,981
Gross profit 52,736 40,763 38,359
Operating income 16,383 4,988 5,938
Profit before taxes on income 11,810 1,075 1,739
Net income 9,107 1,081 1,729
======= ======= =======
2010 sales were around
NIS 250,000,000.
2011 sales were
NIS 304,000,000, over 50% of which for export.
Sales by the
Flexible Packaging Segment in the financial statements of TADBIK LTD. (which is
practically subject and its subsidiaries) were:
2010 sales were
NIS 270,200,000, making an operating profit of NIS 9,800,000.
2011 sales were
NIS 314,375,000, making an operating profit of NIS 16,586,000.
2012 sales were
NIS 353,265,000, making an operating profit of NIS 17,316,000.
Grand parent
company TADBIK LTD. consolidated results:
2011 sales were NIS 626,217,000, making an operating profit of NIS
33,156,000 and net profit of NIS 14,363,000.
2012 sales were NIS 676,547,000, making an operating profit
of NIS 38,625,000 and a net profit of NIS 20,792,000.
POLYNUM C.L.P INSULATION LTD., 100%, insulation
products for construction.
C.L.P. PACKAGING SOUTH AFRICA (PTY) LTD., 100%,
marketers of subject’s products in South Africa,
C.L.P. PACKAGING SOLUTIONS INC., 100%, marketers
of subject’s products in the U.S.A,
C. L. P. (RUSSIA) LTD., 100%, holds:
C.L.P. PLASTUPAK LLC, 100%, of Russia,
manufacturers and marketers of packaging products,
IZASLAV LLC, 76.8%, Russia, plastic sacks
manufacturing.
TADBIK-PACK LTD., manufacturers, marketers and exporters of
packaging solutions, shrink sleeves and in-mold/blow-mold labels, using rotary
offset printing. Also holds:
TADBIK-PACK (SA) (Pty) LTD., South Africa, 100%.
TADBIK-PACK ESPANA S.L, 100%.
TADBIK LTD., directly and through its subsidiaries,
operating in the packaging area, self-adhesive labels and automated adhesive
machines for packaging industry. Also holds:
TADBIK ADVANCED TECHNOLOGY LTD. (T.A.T.), 100%,
investing in start-up companies in the anti-fraud labeling field.
LOGOTECH INC. 100%, New Jersey U.S.A., manufactures and pressure sensitive
labels for the U.S. market, as well as, labeling machines made in Israel.
TADBIK REAL ESTATE LTD., 100%, Group’s real estate company.
TADBIK ADHESIVE & MARKING SYSTEMS LTD., 100%, designs and manufacture pressure sensitive and shrink sleeves labeling
equipment.
TADBIK RUSSIA LTD., 60%, holds 100% of DECORPACK LTD. in Russia (not yet
active).
I. E. L. ISRAEL EQUITY LTD.
(IEL), an investment group, also has holding in other Israeli
companies, including 100% in PHOENICIA GLASS WORKS LTD., manufacturers, designers, exporters and marketers of glass bottles and
other glass containers.
Bank Leumi Le’Israel Ltd., Main Branch (No.
876), Haifa.
Mercantile Discount Bank Ltd., Main Branch (No.
654), Tel Aviv.
Mizrahi Tefahot Bank Ltd., Main Business Center
Branch (No. 461), Tel Aviv.
Nothing unfavorable learned.
Subject is veteran
and among the leading local companies in their field.
TADBIK Group is a
leading Group in the packaging field in Israel.
Subject is ISO 9002 certified.
Several years ago, we received positive
suppliers' opinions on subject.
In 2001 subject established a fully owned subsidiary
called C.L.P. PLASTUPAK, for manufacturing and marketing subject’s products in
Russia.
TADBIK RUSSIA LTD. was established in March
2006, 60% held by TADBIK LTD. The company fully owns DEKORPACK, which is
erecting a plant for manufacturing packaging, stickers and allied products and
their marketing in Russia.
Also, as part of the Group’s global expansion
policy, it established (50%, with a local partner) a new plant in South Africa
with €
5 million investment, which started operations in October 2008.
In January 2010
parent company’s (TADBIK LTD.) shares ceased to be traded on the Tel Aviv Stock
Exchange after failing to meet certain tradability rules of the Stock Exchange.
TADBIK LTD. bonds are still traded.
I.E.L is an investment firm, controlled by Moshe Wexler and by the Mendl Bros, Jack, Joseph and Morton Mendl, of the USA. It has other
investments in Israeli companies. Mendl family operates mainly through
PARKWOOD, a family finance services company. The private capital of Morton Mendl is estimated at US$ 4-5 billion.
Since January 2011 there has been a conflict between TADBIK's
shareholders I.E.L. ISRAEL EQUITY (which holds 40.54% of TADBIK LTD.) and majority shareholder Ilan Drori,
including a lawsuit filed by I.E.L against TADBIK LTD. and Mr. Drori concerning the latter
deprives I.E.L, as a minority shareholder, from their rights. The Court
rejected some of the claims, the plaintiffs appealed and the matter is still
pending.
In October 2011 TADBIK LTD. and TADBIK-PACK signed
an agreement with ORIGO "Manof" (Leverage) Fund for the fund investing NIS 50 million in TADBIK PACK,as described above, a
transaction finalized in November 2011.
ORIGO Manof Fund, managing NIS 1.3 billion, is part of the Israeli
Government scheme of joint State and institutional investors to assist local
industrial companies that carried debts from issuing bonds or other debts
arrangements, originally designed to face the consequences of the economic
crisis by providing non-banking credit, though later, as the market conditions
improved, diversified also to assist also debt not in forms of bonds.
It is estimated that the investment by ORIGO is
designed to improve TADBIK's Group ability to face liquidity needs.
In January 2012 subject signed with the controlling shareholders of
EXTRA PLASTIC LTD. (whose shares are publicly traded on TASE) an agreement to
acquire all the sellers shares in EXTRA PLASTIC (42.3% of EXTRA's shares, plus
convertible bonds), in consideration of paying the sellers debts to the banks
on a sum not more than NIS 7.7 million. EXTRA, engaged in a similar area as
subject, has been experiencing financial difficulties. In the end of March 2012
the sides announced the deal is off, due to disagreements.
In 2012 subject established POLYNUM C.L.P INSULATION.
In August 2012 subject completed the acquisition of the activities of
POLYON BARKAI INDUSTRIES (1993) LTD. from Kibbutz Barkai and KATZIR Fund, in
consideration of NIS 10 million plus NIS 4 million for the inventory. POLYON
was incorporated in 1993, continuing partnership activities which were
established by Kibbutz Barkai in 1971. The company operated as manufacturers
and marketers of engineered polyethylene and polypropylene films and lids for
the food and packaging industries, as well as insulation products for the
construction branch. POLYON encountered financial difficulties and entered
freezing procedures in May 2012. The Court accepted subject's bid for POLYON's
activities in June 2012. Subject committed to employ some 80 of POLYON's
employees.
POLYON's current
assets as of 31.12.2011 were NIS 40 million. Its 2011 sales were NIS 107
million, 50% of which for export.
There are some 120
packaging production plants in Israel, directly employing some 9,400 employees
as of 2010.
During the first
half of 2010, packaging in value of US$ 138 million were imported to Israel,
which marks 3% increase comparing to the parallel period in 2009.
The Society of
Israel Plastic & Rubber Industry published data on the sector for 2011: The
sector’s turnover (both local and for export) reached US$ 5,075 million,
representing 15% increase from 2009 (after 4% decrease from 2008, affected by
the global crisis).
Sales for export by the Plastic and Rubber Industry also grew by some 15%
in 2011 up to US$ 1,882 million, after in 2010 exports returned to 2008 levels,
prior to the global economic crisis. The growth trend in export –in US$ terms-
was halted in 2012 with 2.7% decrease from 2011, reaching US$ 1,831 million.
Sales breakdown: 30% of the Plastic & Rubber sector's sales are
Household Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector,
9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).
According to the
Central Bureau of Statistics, import of Plastic and Rubber raw material for the
local industry in 2012 summed up to NIS 9,037 million, 6% increase from 2011,
keeping the growth trend from 2010 and 2009, though in a well lower pace.
Investment in imported machinery and equipment to the Plastic & Rubber
industry climbed 25.6% from 2010 totaling NIS 632.3 million in 2011. This is
after in 2010 it rose by 8.1%, while level of import in 2010 was just
fractionally higher than 2009, far from record 2007 & 2008 years.
Good for trade
engagements.
Notes:
1. See subject's correct address in caption -
M.P. Lachish Darom ('M.P.' stands for 'Mobile Post'); 'Negba' is also referred
to as 'Kibbutz Negba', where 'Kibbutz' is a typical local agricultural
settlement.
2. Since the beginning of February 2013 Israel Post
has started using a new area code method of 7 digits (the old method of 5
digits is no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.