|
Report Date : |
06.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUGAT INDUSTRIES LTD. |
|
|
|
|
Formerly Known As : |
SUGAT (1967) LTD. |
|
|
|
|
Registered Office : |
16 McDoland Street Tel Binyamin Ramat Gan 5251428 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
10.02.1967. |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufactures, exporters and marketers of sugar. |
|
|
|
|
No. of Employees : |
300 employees |
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 – 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 |
|
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
SUGAT INDUSTRIES LTD.
Office:
Telephone 972 3 753 19 19
Fax 972 3 753 19
00
16 McDoland Street
Tel Binyamin
RAMAT GAN 5251428-ISRAEL
Plant:
Telephone 972 8 687 57 77
Fax 972 8 687 57
70
P.O. Box 55 (8210001)
5 Shvat Street
Industrial Zone
KIRYAT GAT 8202291 ISRAEL
A private limited company,
incorporated as per file No. 51-048146-8 on the 10.02.1967.
Originally
registered under the name of SUGAT PACKAGING LTD., which was changed to SUGAT
(1967) LTD. on the 30.07.1992, which changed to the present name on the
25.10.2006.
Authorized share
capital NIS 500.00, divided into: -
200,000
ordinary "A" shares of NIS 0.0001 each (issued),
480,000
ordinary "B" shares of NIS 0.001 each (450,001 share issued),
of which shares
amounting to NIS 470.001 were issued.
Subject is fully
owned by CONSOLINVEST B.V., a fully owned subsidiary of E.D. & F. MANN
LTD., of London, England.
1. Jill Michel Gamone, General Manager,
2. Ofer Kalai,
3. Adiel Mizrahi,
4. Massimiliano Bonezo,
5. Tom William Cellak,
6. Paul Cheterton,
7. Eduardo Carmona,
8. Christopher Dumas, latter 4 are foreign
nationals.
Manufactures,
exporters and marketers of sugar.
Also importers,
packers, exporters and marketers of other food commodities (head rice, lentils,
natural and organic foods, teabags, food preparations, canned fruit, nuts,
almonds, health products).
During 2010
subject started to manufacture and market flour.
Export is mainly
of sugar, rice and lentils.
Local sales are
mainly to all local marketing chains, among them SHUFERSAL, MEGA BOOL, TIV
TAAM, RAMI LEVI HASHIKMA MARK., and many more.
Among suppliers:
RONOPOLIDAN, HAMAMA, etc.
Operating from a
large owned plant (some 100,000 sq. meters), in 5 Shvat Street, the Industrial
Zone, Kiryat Gat, and SUGAT headquarters offices, rented, in 16 McDonald
Street, Ramat Gan.
Having some 300
employees serving SUGAT Group.
Investments in
subsidiary's refinery plant were estimated (during 2007) at NIS 250 million.
In November 2009 it was reported that subject purchased a plot of 18,000
sq. meters to enlarge its plant in Kiryat Gat, investing NIS 10 million.
According to a
report in December 2009, Group's digital advertising budget is NIS 2 million.
Other financial
data not forthcoming.
There are 3
charges for unlimited amounts registered on the company's assets (computer
equipment), in favor of I.B.M. ISRAEL LTD. (last charge placed March 2010).
According to
reports 2008 consolidated sales were over US$ 100 million.
According to a
report from May 2011, 2010 consolidated sales were over
US$ 200 million,
of which 10% were for export.
According to a
report from June 2012 consolidated annual sales are NIS 1 billion.
SUGAT SUGER
REFINERIES LTD., 100%, a sugar refining plant (from raw to white sugar),
designed to produce 350 tons of sugar per annum.
SUGAT
INTERNATIONAL LTD.
Mizrahi Tefahot
Bank Ltd., Kikar Hamedina Branch (No. 410), Tel Aviv, account No. 523944.
A check with the Central
Banks’ database did not reveal anything detrimental on subject’s a/m account.
Bank Hapoalim
Ltd., branch data not forthcoming.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is a
veteran leading company in the sugar field in Israel, as well as in other
commodities (67% of the share market in packed rice according to reports from
2008).
SUGAT is part of
the ED&F MANN concern, established in
Subject is ISO
9002 certified.
Subject used to
refine sugar itself but activities were stopped in the beginning of the 1980's
due to uneconomical motives and imports from Europe initiated.
After the EU,
largest refined sugar exporter, lost in the WTO lawsuit for subsidizing refined
sugar in Europe several years ago, subject decided to re-establish the refining
plant, realizing it will become competitive.
In June 2009 it
was reported that subject will start marketing 9 types of nuts and seeds,
investing NIS 1 million, and a variety of salts, investing NIS 2 million.
In January 2010 it was reported that subject will export 100 tons of
sugar to Morocco (valued at US$ 80,000).
In December 2010
it was reported that subject is making a massive entrance to the considered
highly profitable flour market, and will launch a line of 8 types of flour with
vitamins. According to the report, subject faced an obstacle in form of an
injunction issued by the court based on the request of a local flour
manufacturer ISRAELI FLOUR MILLS which binds subject to purchase flour only
from ISRAELI FLOUR MILLS.
The local flour
market According to Nilsen survey in 2010 was valued at NIS 137.3 million.
In March 2011 it was
reported that DOR ALON is erecting a natural gas based power plant which will
supply subject's plant electricity needs (some 4 – 5 MV per year, out of 110MW
that will be produced in the new power plant).
In May 2011 it was
reported that subject will export some 15 thousand tons of sugar to Europe,
valued at US$ 12 million (mainly to Italy, Spain, Switzerland and Holland).
Subject's General Manager informed that subject is negotiating the export of
sugar to several other European countries (including Germany and Greece), which
may increase subject's export to US$ 100 million.
In the end of 2011
David Franklin who served as Chairman and General Manager, resigned his
position, after being in SUGAT for 23 years. He will continue to serve Group as
a local consultant for Group as well as for ED&F MANN.
In June 2012 it was reported that subject is entering the organic food
market, and will market organic lentils. Subject will invest NIS 500,000 in
development of products, and will also market organic sugar.
In August 2012 it was reported that subject is launching rice spicing
blends, investing NIS 350,000 in the development of products.
Average white
sugar consumption (in Israel and Palestinian Authority) is estimated at 500,000
tons per annum. According to a report from January 2010, the sugar market is
valued at US$ 350 million, of which subject has (as of 2009) a 77% market
share.
According to Central Bureau of Statistics (CBS) data,
investments in machinery & equipment from import for the food industry in
2011 summed up to NIS 929.5 million, 47.7% rise from 2010 (after 15.4% increase
in 2010), while investments in machinery & equipment from import for the
beverage & tobacco industries rose by 2% to NIS 379.7 million (rose 9.7% in
2010).
The
Central Bureau of Statistics data shows that import of raw food
products to Israel in 2012 summed up to NIS 9,135.6 million, 2.7% decrease from
2011 (marked a 9.8% decrease in $ terms). This represents a reverse trend from
the previous couple of years, when it rose in both years in around 20%.
Over 50% of import is from the EU.
From CBS preliminary National Accounts for
2012, it turns that in 2012 expenditure on private consumption grew by 2.8%
from 2011, after rising by 3.8% in 2011. Per-capita expenditure increased by
0.9% (1.9% rise in 2011).
Per capita expenditure for private consumption on non-durable goods
rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects
increases by 1.3% in expenditure on food,
beverage and tobacco and 4.5% expenditure
on clothing, footwear and personal effects.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Note: Since the beginning of 2012 Israel Post started
using a new area code method of 7 digits (the old method of 5 digits will still
be valid till end of January 2013).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.29 |
|
|
1 |
Rs.83.96 |
|
Euro |
1 |
Rs.71.88 |
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.