MIRA INFORM REPORT

 

 

Report Date :

13.12.2013

 

IDENTIFICATION DETAILS

 

Name :

URDAN METAL & CASTING INDUSTRIES LTD.

 

 

Formerly Known As :

URDAN A.F.V (ARMORED FIGHTING VEHICLE) LTD.

URDAN MATAL INDUSTRIES (HMLP) LTD.

 

 

Registered Office :

P.O. Box 3028 (4213001), 11 Haplada Street , Old Industrial Zone, Netanya 4237821

 

 

Country :

Israel

 

 

Date of Incorporation :

05.05.1978

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Exporters and Marketers of steel elements

 

 

No. of Employees :

240

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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

 


Company name & address

 

URDAN METAL & CASTING INDUSTRIES LTD.

Telephone         972 9 830 44 44

Fax                   972 9 861 15 71

P.O. Box 3028 (4213001)

11 Haplada Street

Old Industrial Zone

NETANYA 4237821 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-078194-1 on the 05.05.1978, continuing activities which began in 1953.

 

Originally registered under the name URDAN A.F.V (ARMORED FIGHTING VEHICLE) LTD., which changed to URDAN MATAL INDUSTRIES (HMLP) LTD., on the 30.12.2007, which changed to the present name on the 21.01.2008.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 1,000,000.00, divided into -

            100,000,000 ordinary shares of NIS 0.01 each,

of which 8,438,412 shares amounting to NIS 84,384.12 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by INROM INVESTMENTS IN INDUSTRY (H.B.) LIMITED PARTNERSHIP, fully owned by INROM INDUSTRIES LTD., owned by FIMI Investment Fund, controlled by Ishay Davidi (in August 2009 Eldad Ben-Moshe acquired 5% of INROM from FIMI).

 

 

DIRECTORS

 

1.         Eldad Ben-Moshe, General Manager of INROM Group,

2.         Noam Schalke.

 

 

GENERAL MANAGER

 

Yaron Davidi.

BUSINESS

 

Metal works, exporters and marketers of steel elements.

 

20% of sales are export.

 

Sales are for commercial markets and military applications.

 

Among clientele: ASHOT ASHKELON INDUSTRIES, Ministry of Defense, DEAD SEA WORKS, ISRAEL MILITARY INDUSTRIES, NESHER ISRAEL CEMENT ENTERPRISES, and more.

 

Operating from rented premises (office and plant), on an area of 54,000 sq. meters, in 11 Haplada Street, Old Industrial Zone, Netanya, and from a rented heavy frame plant, on an area of 12,000 sq. meters, in Mitzpe Ramon.

 

Having 240 employees (had 260 employees in the beginning of 2012).

There are some 1,400 employees serving INROM Group.

 

 

MEANS

 

Current stock is valued at NIS 37 million.

 

INROM Group is known to be financially solid. In FIMI Fund’s reports for 2010, it turns that parent company INROM INDUSTRIES LTD. is valued (fair value) at a company value of US$ 169 million.

 

There are no charges registered on the company's assets.

 

 

REVENUES

 

2010 sales claimed to exceed NIS 100 million, of which 25% were export.

2011 sales claimed to exceed NIS 100 million, of which 25% were export.

2012 sales claimed to be NIS 120 million, of which 20% were export.

Sales for the first 6 months of 2013 claimed to be NIS 62,000,000, of which 20% were export.

 

According to FIMI Fund’s reports for 2010, INROM INDUSTRIES LTD. noted an Ebitda profit of NIS 150 million, in a turnover of NIS 1,100 million.

INROM Group consolidated sales reported to be NIS 900 - 1,000 million.

 

 

OTHER COMPANIES

 

URDAN USA INC., 100%, a US marketing company.

 

INROM INDUSTRIES LTD., holding company, heads the Group and also holds:

INROM INVESTMENTS IN INDUSTRY (H.B.) LP ("FIMI 4"), which holds (100%, unless otherwise mentioned) in the following subsidiaries:

YTONG INDUSTRIES LTD., holding company, owns YTONG LTD., manufacturers and marketers of concrete blocks, building material, etc.

YTONG PAVING LTD.,

CYCLE GROUP LTD.,

 

ORLITE INDUSTRIES (MILLENIUM 2000) LTD., manufacturers and marketers of advanced products made of lightweight composite materials,

CARMIT MISTER FIX LTD., manufacturers and marketers of products and materials for the building field (insulation plasters, bonders, adhesives, supplements for building, etc.).

ALONY MARBLE LTD., importers, manufacturers and marketers of tiles, marble, granite, ceramics, sanitary tools, and K.E.R. PARQUET LTD., parquet floors,

NIRLAT PAINTS LTD., 62.2%, fully owns:

NIRLAT LTD., manufacturers, marketers and exporters of paints, paint powders and additives, lacquers and varnishes, insulating materials and sealants, etc

UNIVERCOL PAINTS LTD., developers, manufacturers, marketers and exporters of industrial electrostatic powder paints (powder coating).

 

FIMI Fund Group has many other holdings (see more CHARACTER).

 

 

BANKERS

 

Bank Leumi Le'Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.

Bank Hapoalim Ltd., Netanya Business Branch (No. 167), Netanya.

Mercantile Discount Bank Ltd., Netanya Branch (No. 647), Netanya.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is a veteran business, among the leading in its field in Israel.

 

Subject is ISO 9001:2008 approved.

 

INROM Group, including YTONG, is a leading player in the local construction inputs market.

 

YTONG was for many years part of URDAN Group, later re-named GREENSTONE Group, part of local SFK Group (later SHREM FUDIM Group). In the framework of a re-organization process in GREENSTONE and SFK, INROM published in mid 2008 a tender offer for YTONG INDUSTRIES' shares held by the public in consideration of NIS 26 million. Following the completion of the tender offer, in September 2008 also YTONG INDUSTRIES shares were de-listed from trade. Later SFK sold the reminder of shares in INROM.

FIMI already purchased 50% of INROM from GREENSTONE in December 2007 for NIS 144 million. At the 2nd phase, in November 2008 FIMI purchased the other 50% for NIS 105 million, reaching full control of INROM Group.

 

Founded in 1997, FIMI Fund (mainly via 5 funds) is a leading local private equity investment fund (mezzanine and buy-out fund), headed by its founder Ishay Davidi. Having a successful track record of 67 major transactions (37 cash exits) in total value of over US$ 1.7 billion. Presently, the Fund has more than US$900 million equity available for new investments. FIMI investors list includes leading US and Israeli institutional investors (mainly ISRAEL DISCOUNT BANK). According to American research firm PREQIN, based on the average annual yield to its investors, FIMI Fund was ranked the 4th best private equity fund in the world.

 

In November 2013 it was reported that FIMI intends to IPO 3 of INROM's companies on the stock market during the first half of 2014. INROM will issue 40%-50% of YTONG INDUSTRIES, NIRLAT PAINTS and CARMIT MISTER FIX according to a total value of NIS 1 billion.

 

According to data by of the Metal, Electrical and Infrastructure Industries Association, representing the local Metal and Electricity Industries, which includes large scale export-oriented industries on one hand and family-owned plants which sell to the local market: 2010 sales (local and export) by the said industries amounted to NIS 70 billion, comprising 25% of Israel's industrial output. Results are similar to 2008 scales, after some 20% drop in 2009 due to the significant slow-down in the local economy, affected by the global financial and economic crisis. Sales for export reached US$ 10 billion in 2010.

Some 90,000 employees serve the said industries (26% of Israel's industrial workforce).

 

Export of products of Basic Metals by the local industry fell 11% in 2012 from 2011, reaching US$2,396 million, after rising by 12.6% in 2011 (continuing the growth trend from 2010 when it rose by 39% from 2009).

Export of Machinery & Equipment also marked 10% increase in 2012 (in value of US$3,317 million), after around 8% yearly rise in both 2011 and 2010.

 

According to the Central Bureau of Statistics (CBS), import of metals raw materials to the local industries in 2012 marked a decreasing trend, after a remarkable recovery in the years 2010 and 2011 from 2009 (a year where the local industry suffered from slow-down in economy). Import of raw materials divided in 2012 as follows: Iron and Steel – fell by 11.5%, reaching US$ 2,177 million (after rising by over 30% per year in 2010 and in 2011); Precious Metals – down 13% (after rising by 2% in 2011 and 22.5% in 2010) and reaching US$ 146 million; Non-ferrous Metals – fell by 13% (after increase by 20% in 2011 and by 41% in 2010), reaching US$ 803 million.

 

CBS data reveals that investments by the local manufacturing industries -both from import and domestic production- in machinery & equipment (M&E) in 2012 fell by 1%, which comes after 41% rise in 2011. The investments originating from import, which comprised 70% of overall investment in M&E, fell 3.8% (after 69% rise in 2011), while investment originating from local production rose by 6.2% in 2012 (fell 5.3% in 2011).

 

According to the CBS, investments by the local industrial branch in imported machinery and other equipment in 2012 witnessed almost 20% (in current prices) decrease from 2011, after climbing by 108% in 2011 from 2010. The fall in 2012 in investment could be explained by the continuing unfavorable business environment, which is also negatively affected by the slow-down in overseas markets.

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since 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.61.62

UK Pound

1

Rs.100.84

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.