MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

IDENTIFICATION DETAILS

 

Name :

CHEMADA FINE CHEMICALS COMPANY (1996) LTD.

 

 

Registered Office :

Mobile Post Hanegev, NIR Itzhak 8545500

 

 

Country :

Israel

 

 

Date of Incorporation :

1971

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, exporters and marketers of fine and specialty chemicals based on bromine compounds, for the pharmaceutical and agricultural fields.

 

 

No. of Employees :

93

 

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     

 

CHEMADA FINE CHEMICALS COMPANY (1996) LTD.

Telephone         972 8 998 34 21

Fax                   972 8 998 35 89

Mobile Post Hanegev

NIR ITZHAK 8545500 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established in 1971 as a non-registered business by Kibbutz Nir Itzhak

Converted into a limited partnership, registered as per file No. 55-000225-7 on the 23.07.1973, and operated under the name CHEMADA-NIR ITZHAK SUFA.

 

Converted into a private limited company and registered as such as per file No. 51-237255-8 on the 10.09.1996 (the company was registered under the name TAR – TAL LTD., and was dormant until January 1999).

On the 10.02.1999 changed its name to the present one.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 1,031,300.00 divided into:-

1,031,300 ordinary shares of NIS 1.00 each,

of which 1,028,000 shares amounting to NIS 1,028,000.00 were issued.

 

 

SHAREHOLDERS

 

1.       Kibbutz Nir Itzhak, 51.8% (shares are held by a fully owned subsidiary A.S. YEVULEI HA'NIR and by a trustee company), a co-operative society operating communal agricultural settlement,

2.       Bromine Compunds Ltd., 26%, fully owned by DEAD SEA BROMINE COMPANY LTD. (DSBG), a fully owned subsidiary of ISRAEL CHEMICALS LTD. (ICL), a public limited company whose shares are traded on the Tel Aviv Stock Exchange (TASE); ICL is controlled (51.8%) by The ISRAEL CORPORATION LTD. (TIC), also publicly traded on TASE, controlled (51.5%) by OFER Group, owned by Ofer family, and controlled by Idan Ofer (some 90%) and Udi Angel,

3.       SUFA BUSINESS MANAGEMENT COOPERATIVE, 22.2%, fully owned by Kibbutz Sufa, a co-operative society operating communal agricultural settlement.

 

In August 1999, Bromine Compunds Ltd. signed an agreement to acquire 26% of subject’s shares in consideration of US$ 9 million, according to a company value of US$ 35 million. Deal was finalized in 2000.

 

 


DIRECTORS

 

1.         Ofer Lifshitz, Chairman,

2.         Arieh Gamora,

3.         Amit Sarid,

4.         Zafrir Haimi,

5.         Daniel Horatio Dedrick,

6.         Avi Toyerstein,

7.         Shachar Berglass,

8.         Dan Nestor,

9.         David Husta (Hoter),

10         Ms. Shani Nachshon.

 

 

GENERAL MANAGER

 

Ms. Ronnie Meninger.

 

 

BUSINESS

 

Manufacturers, exporters and marketers of fine and specialty chemicals based on bromine compounds, for the pharmaceutical and agricultural fields.

 

Almost all sales are exports (95%-98%). Subject sales for export are handled by ICL - Industrial Products, a division of ICL.

Export is mainly to Europe, and also to Japan, USA and India.

 

Amongst clients: DSM, UCB (Belgium), SUMITOMO, AJINOMOT (Japan), BAYER (Germany), TEVA PHARMACEUTICALS, PERRIGO ISRAEL PHARMACEUTICALS (AGIS), etc.

 

40% of raw materials purchases are imported, the rest purchased locally.

Amongst local suppliers: GADOT CHEMICALS, BROMINE COMPOUNDS, PACHMAS, MAKHTESHIM CHEMICAL WORKS, ELCON - MAMAB CONTROL INSTRUMENTS, TAGAD CHEMICALS, etc.

Custom agents: RAPHAEL KATS.

 

Operating from large rented premises, in Kibbutz Nir Itzhak (premises owned by the Kibbutz), in the south west of the country.

 

Having 93 employees (similar to previous years).

There are 12,272 employees in ICL Group (of which some 5,500 employees in Israel).

 

 

MEANS

 

Current stock is valued at US$ 8,500,000.

 

Total assets as of 31.12.2012 US$ 22,600,000.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives. In March 1998 The Israeli Investment Centre (IIC) approved an investment plan of US$ 9.5 million in the expansion of subject’s plant. A further investment plan of NIS 14.72 million was approved by IIC in June 2005 for the expansion of subject’s plant.

 

There are 6 charges for unlimited amounts, as well as 3 charges for the total amount of NIS 32,000,000.00, registered on the company’s assets, in favor of the State of Israel and local banks (last charge placed March 2012).

 

 

REVENUES

 

2006 sales claimed to be US$ 18,000,000, of which 96% were for export.

2007 sales claimed to be US$ 19,000,000, of which 96% were for export.

2008 sales claimed to be US$ 20,000,000, of which 96% were for export.

2009 sales claimed to be US$ 14,000,000, of which 95% were for export.

2010 sales claimed to be US$ 17,000,000, of which 95% were for export.

2011 sales claimed to be US$ 22,500,000, of which 98% were for export.

2012 sales claimed to be US$ 20,500,000, of which 97% were for export.

2013 projected sales are US$ 19,000,000, of which 95% were for export.

 

 

OTHER COMPANIES

 

Kibbutz Nir Itzhak also controls:

BacSoft, operating in the field of wireless and automation control for industrial systems and production lines.

 

BROMINE COMPOUNDS LTD., part of the ICL Concern, manufacturers, exporters and marketers of Bromine compounds, elementary Bromine and other industrial chemicals based on minerals extracted from the Dead Sea.

And many more in the DSBG Group and its parent's ISRAEL CHEMICALS LTD. (ICL) Group.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Beer Sheva Business Branch (No. 426), Beer Sheva,

account No. 062307.

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

 

Bank Hapoalim Ltd., Beer Sheva Business Branch (No. 177), Beer Sheva.

Bank Leumi Le'Israel Ltd., Hahashmonaim Business Branch (No. 817), Tel Aviv.

Israel Discount Bank Ltd., Beer Sheva Branch (No. 094), Beer Sheva.

 

 


CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is a long established company.

 

In recent years we received favorable opinion on subject from its suppliers.

 

Subject is ISO 9001:2000 and ISO 14001:2004 certified.

 

BROMINE COMPOUNDS is part of ICL Industrial Products (ICL-IP), headed by the DEAD SEA BROMINE GROUP (known as “DSBG”). ICL-IP sales comprised 21.5% of ICL in 2012. ICL 2012 sales were US$ 6,672.2 million.

 

DSBG extracts bromine from the Dead Sea, the world’s largest bromine source, and is considered of the world’s leading company in the bromine market, with estimated production capacity of 40% of the total bromine production in the world and lead in the bromine-based flame retardant products market. Imports amount to US$ 100 million per annum. In addition, it is a world’s leading producer of specialty phosphates based on purified phosphoric acid.

ICL is a multi-national concern, among the world's leading suppliers of minerals and one of the largest industrial concerns in Israel. It is ranked as the world's 6th largest potash manufacturer (9% market share in 2011), the world's largest producer of PK fertilizers (compound of potash and phosphate fertilizers), and leading producer of specialty phosphates based on purified phosphoric acid.

Current market value of ICL – US$ 10,532.8 million.

 

Kibbutz Nir Itzhak was established in 1949. There are some 380 members and a total population of 600. They cultivate agricultural grounds of over 25,000,000 sq. meters (mainly vegetables) and breed livestock (cattle and poultry).

 

Kibbutz Sufa was established in 1977. There are some 100 members.

The Kibbutz specializes in field crop, citrus plantations and poultry.

 

ISRAEL CORP. (TIC), current market value US$ 4,145.3 million, part of OFER Group, is Israel’s largest holding company, one the largest and most influential groups in the Israeli market, operating worldwide also in the fields of energy, shipping, high tech & electronics and real estate.

 

The local Chemical industry is considered one of the strongest in the market, with impressive growth trend in recent years. The chemical industry includes minerals extracted, refinery and petrochemical industry, manufacturing of pesticides for agriculture, pharmaceuticals and bio-technology industries, as well as other consumer products related industries, including paints, cosmetics, cleaning materials and others. The industry employs over 30,000 employees.

 

Total turnover of the local Chemical Industry in 2008 amounted to US$ 26 billion, comprising some 30% of Israel’s total industrial turnover. Sales for export recorded US$ 14 billion, comprising some 35% of Israel’s total export, continuing years of constant growth. Growth trend reversed in 2009, due to the economic crisis in the global markets.

The Chemical sector recovered in 2010, where export of Industrial Chemicals rose by 34.3% from 2009, kept rising in 2011(by 18.6%), but fell by 9% in 2012. Sales for export in 2012 reached US$ 15.1 billion (of which US$ 6.85 billion were of pharmaceuticals).

 

According to Central Bureau of Statistics data, investments in imported machinery & equipment from for the Chemical Industries (incl. Pharmaceuticals, excl. oil refinery) in 2012 summed up to NIS 891 million, a sharp decrease of 20.8% from 2011 (after witnessing 50.7% increase in real terms in 2011, which came after couple of years the trend was negative).

 

 

SUMMARY

 

Good for trade engagements.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

 

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.