MIRA INFORM REPORT

 

 

Report Date :

21.02.2013

 

IDENTIFICATION DETAILS

 

Name :

HULIOT AGRICULTURAL COOPERATIVE SOCIETY LTD.

 

 

Registered Office :

Mobile Post Upper Galilee Sde Nehemia  1214500           

 

 

Country :

Israel

 

 

Year of Incorporation :

1947.

 

 

Legal Form :

Agricultural Cooperative Society

 

 

Line of Business :

Designers, manufacturers, marketers and exporters of plastic products for the office, storage and shelving, and construction markets. Subject's products are used in a wide variety of industries and applications including homes, offices, hospitals, warehouses, infrastructure, and construction.

 

 

No. of Employees :

170

 

 

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


Company name and address

           

HULIOT A.S.C. LTD.

 

Correct Name:            HULIOT AGRICULTURAL COOPERATIVE SOCIETY LTD.

                                 (Known in short as: HULIOT ACS LTD.)

                                 Telephone           972 4 694 60 11

                                 Fax                     972 4 695 14 44

                                 Mobile Post Upper Galilee

                                 SDE NEHEMIA             1214500         -ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a non-registered business in 1947.

 

Converted into a General Partnership and registered as such as per file

No. 54-010031-0 on the 31.08.1969, under the name HULIOT PLASTICS INDUSTRIES.

 

Converted again into an Agricultural Cooperative Society and registered as such as per file No. 57-003815-8 in 2001, and started to operate as such as of the beginning of 2002 (following which the General Partnership HULIOT PLASTICS INDUSTRIES became non-active).

 

 

OWNERSHIP

 

Subject is fully owned by SDE NEHEMIA HOLDINGS ACS LTD., fully owned by Kibbutz Sde Nehemia, a co-operative society, operating a communal agricultural settlement.

 

 

MANAGEMENT

 

1.    Benny Bakrach, Chairman,

2.    Paul Steiner, General Manager.

 

 

BUSINESS

 

Designers, manufacturers, marketers and exporters of plastic products for the office, storage and shelving, and construction markets. Subject's products are used in a wide variety of industries and applications including homes, offices, hospitals, warehouses, infrastructure, and construction.

Among products for the construction markets are pipes and fittings utilized in a variety of applications including infrastructure, soil, waste, sewage, drainage, water supply, sanitary and plumbing, electrical conduits and communication conduits for construction.

 

Some 8% of sales are for export.

 

Among local clients are construction companies, public institutions, Ministries, e.g. Ichilov Hospital, ESHED RUBBER, Ministry of Defense, Ministry of Health, MENDELSON - S. BAR, S. AL. TECHNICAL EQUIPMENT, HASSON P.A. COMMERCE, S.A.C.F ENGINEERING, MAAYAN GYPSUM & DOORS, etc.

 

Among local supplies: SAINA BROS. INDUSTRIES, OPAL PLASTIC, SASSON METAL, ARCOMED MEDICAL SUPPLIES, etc. Subject is also using the import purchasing and export services of TOAM IMPORT AND EXPORT.

 

Operating from a premise (offices, storage facilities and plants), on an area of 15,000 sq. meters, on a plot of 30,000 sq. meters (owned by the Kibbutz), in Kibbutz Sde Nehemia, located in the Upper Galilee (north of Israel) and from:

1.         5 Simtat Hamesila Street, Tel Aviv (showroom and office).

2.         1 Feinstein Street, Segula Industrial Zone, Petach Tikva (warehouse).

Note: "Kibbutz" is a typical local cooperative agricultural settlement/ village.

 

Having 170 employees (had 160 employees in the beginning of 2012, 150 employees in the beginning of 2011).

 

 

MEANS

 

Current stock is valued at NIS 18,000,000 (similar to the beginning of 2012, was valued at NIS 16,000,000 in the beginning of 2011).

 

Total B/S as of 31.12.2011: NIS 114,475,000

Equity as of 31.12.2011: NIS 53,734,000.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives. In September 1997 Israeli Investment Centre (IIC) approved a US$ 3 million investment plan for expansion of subject’s plant. In December 2003 IIC approved another investment plan of US$ 1 million for the expansion of subject’s plant. In December 2009 the IIC approved an investment for the expansion of subject’s plant.

 

 

REVENUES

 

2009 sales claimed to be NIS 93,000,000, of which 7% were for export.

2010 sales claimed to be NIS 100,000,000, of which 7% were for export.

2011 sales claimed to be NIS 114,000,000, of which 7% were for export.

We are informed that subject ended 2011 with a net profit of NIS 7,000,000.

2012 sales claimed to be NIS 125,000,000, of which 8% were for export.

 

 


OTHER COMPANIES

 

HULIOT LOGISTICS SYSTEMS ACS LTD., 100%, design, manufacturing, selling and assembly of metal and plastic storage, shelving products and logistic systems. Representing MECALUX S.A. & HUNI of Spain in Israel.

HULIOT MARKETING (1994) LTD., marketing of office supplies.

HULIOT PLASTIC INDUSTRIES, non-active.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Ha’amakim Business Branch (No. 745), Afula, account No. 3100/25.

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m account.

 

 

CHARACTER AND REPUTATION

 

In April 2002, it was reported that the Anti-Trust Authority is investigating a complaint, according to which HULIOT PLASTIC INDUSTRIES (who preceded subject) exploited its status in the market in order to overcharge its customers. No later information on this issue mentioned afterwards. This comes after during the 1990s HULIOT PLASTIC INDUSTRIES (jointly with other companies) were convicted of business for forming an illegal PVC Cartel. In 1995 Anti-Trust Authority initiated proceedings against some 7 companies, which ended in fines.

 

Nothing unfavorable learned apart from the above.

 

Subject is ISO-9001:2000 certified.

 

Kibbutz Sde Nehemia was established in 1940. There are 280 members.

The Kibbutz also cultivates agricultural field crops, fruit plantation and breed livestock.

 

In June 2005, it was reported that subject received the concession to market in Israel the British company BISLEY, manufacturers of metal office furniture.

 

In March 2006, it was reported that subject signed a contract to sell its "Polyroll" novel piping system, in volume of NIS 6 million to local contractors, for prestigious residential building projects.

 

In October 2009 it was reported on the cancellation of a transaction in which subject intended to sell its subsidiary HULIOT LOGISTICS SYSTEMS to local HA’ARGAZ Group, after HULIOT’s Spanish supplier, exclusively represented by HULIOT Group, rejected the move.

 

In April 2012 it was reported that subject will erect an plant in Gujart, India, with an investment of NIS 65 million for manufacturing plastic sewarage pipes.

According to the report subject signed an agreement with PEGASUS of USA to manufacture product for PEGASUS and represent it in Israel.

 

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.

 

 

SUMMARY

 

Good for trade engagements.

 

Note: 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.54.05

UK Pound

1

Rs.83.45

Euro

1

Rs.72.53

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.