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Report Date : |
12.06.2013 |
IDENTIFICATION DETAILS
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Name : |
CHROMAGEN – ACS LTD. |
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Registered Office : |
Sha'ar Ha'amakim 36588 |
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Country : |
Israel |
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Date of Incorporation : |
02.01.1973 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Marketers and exporters of various solar
energy systems (water heaters, collectors, solar storage locks, accessories, and
more, as well as heat pumps – a recent activity) for domestic, commercial and
industrial use. |
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No. of Employees : |
210 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
CHROMAGEN – ACS LTD.
Telephone 972
4 953 88 88
Fax 972
4 953 88 72
SHA'AR HA'AMAKIM 36588
ISRAEL
Originally
established as a limited partnership, registered as per file No. 55-000179-6 on
the 02.01.1973, under the name CHROMAGEN.
In 2000, CHROMAGEN transferred all its
manufacturing activities (including machinery, equipment and stock) to a newly
established subsidiary CHROMAGEN SHA'AR HA'AMAKIM (2000) LTD. (a private
limited company).
As of January 2006, all other remaining activities
(of the limited partnership) were taken over by subject, a newly established
Agricultural Cooperative Society (ACS), registered as per file No. 57-004582-3
(and consequently CHROMAGEN turned into a holding partnership).
1. Kibbutz
Sha'ar Ha'amakim, 65%, a co-operative society operating a communal agricultural
settlement (ownership is via the limited partnership CHROMAGEN),
2. TENE
FUND, 35%, an Investment Fund, controlled by Dr. Ariel Halperin.
In July 2007, local TENE FUND announced it invested
US$ 5 million in CHROMAGEN in consideration of 26%-27% of its shares (held by
Kibbutz Sha'ar Ha'amakim, which holds the remaining shares). At a later stage
TENE increased its holdings to 35%.
1. Reuven
Avital, Chairman,
2. Adar
Eizencot, also General Manager of subsidiary CHROMAGEN SHA'AR HA'AMAKIM (2000).
Marketers and exporters of various solar energy
systems (water heaters, collectors, solar storage locks, accessories, and more,
as well as heat pumps – a recent activity) for domestic, commercial and
industrial use.
50% of sales are export, to over 35 countries.
Products and systems are developed and
manufactured by wholly-owned subsidiary CHROMAGEN SHA'AR HA'AMAKIM (2000) LTD.,
which also purchases raw materials for production (from local suppliers and
from import) of collectors.
Sales are via an array of some 140 distributors.
Among local clients: SOL DAROM, SHEMESH 101,
HASSON (Afula), HAYOTZER, T.O.U. MILLENIUM ELECTRIC, etc.
Subject's purchasing is chiefly from foreign
suppliers.
Among CHROMAGEN local suppliers: ISKOOR METALS
AND STEELS, SELF - FIX METALS, ADLER & STERN TRADE, SATEC HEATING
ELEMENTS, etc.
Operating from premises (offices, plant and
warehouses), owned by CHROMAGEN, on an area of 13,500 sq. meters, in Kibbutz
Sha'ar Ha'amakim, and from a rented plant, on an area of 4,000 sq. meters, in
Zipporit Industrial Zone, Nazareth Ilit.
Note: "Kibbutz" is a typical local
cooperative agricultural settlement/ village.
Having 210 employees serving CHROMAGEN Group
(subject and local subsidiary).
In July 2007, TENE FUND invested US$ 5
million in subject, in return for 27% stake. According to reports, subject was tagged at a company value between US$30 – US$40 million,
that based on the investment deal.
In November 2006 it was reported on US$ 1
million investment in taht year in new welding lines.
CHROMAGEN is an “Approved Enterprise” and as
such entitled for State support and tax relief.
In April 2000 the Israeli Investment Center
approved an additional investment plan of US$ 320,000 for the expansion of the
plant in Zipporit.
CHROMAGEN Group consolidated sales (given by
Group's Accountant):
2008 sales claimed to be NIS 200,000,000.
2009 sales claimed to be NIS 200,000,000.
2010 sales claimed to be NIS 160,000,000, of
which 50% were for export.
According to media reports, subject ended 2010
with a net profit of
NIS 10,000,000, similar to 2009.
2011 sales claimed to be US$ 50,000,000, of
which 50% were for export.
2012 sales claimed to be US$ 50,000,000,
of which 50% were for export.
CHROMAGEN SHA'AR HA'AMAKIM (2000) LTD., 100%,
developers and manufacturers of solar energy systems (solar collectors, solar
storage locks, etc.) for domestic, commercial and industrial use, marketed and
exported by subject.
CHROMAGEN, limited partnership, a holding and
real estate company.
CHROMCOAT, of Denmark, 45% controlled by
CHROMAGEN (the rest owned by BATEC, of Denmark).
CHROMAGEN ESPANA, a subsidiary in Spain.
Besides subject, Kibbutz Sha'ar Ha'amakim has
holdings in:
KAMA FLOUR MILL SHAAR HAAMAKIM, flour mill,
KIBBUTZ SHA'AR HA'AMAKIM (1994) LIMITED
PARTNERSHIP,
S.A.M., printed circuits.
TENE FUND, a local private equity firm, controlled by Dr.
Ariel Halperin, Ran Ben-Or, Eyal Atia and Dori Baron, investing chiefly in
traditional and mid-tech Kibbutz industries. It has been investing in several
plants, among them are HANITA COATINGS RCA LTD., TELDOR WIRES AND
CABLES LTD., PLAZIT Group, and more.
The First
International Bank of Israel Ltd., Haifa Bay Branch (No. 004), Haifa, account No. 688347.
Bank Leumi Le’Israel Ltd., Haifa Main Branch (No. 876), Haifa, account
No. 218100/35
A check with the Central Banks' data base did not reveal negative
information regarding subject’s a/m accounts.
Nothing unfavorable learned.
Israel is considered a leading country in the
manufacturing of solar systems and the usage thereof, and CHROMAGEN has been one
of the leading companies in its field in Israel, with one third market share in
the solar collectors field (with 250,000 collectors system and 100,000 water
heaters manufactured in 2010).
The renewable energy area is a fast growing in
the world nowadays and CHROMAGEN, a pioneer in the solar energy field in world
scales, is the world's 9th largest manufacturer of solar panel water
heaters (according to a report from January 2011).
Subject is ISO 9000 certified.
In 2007 we obtained the following positive
opinions on subject: ISKOOR METALS AND STEELS LTD's
official told us they are working with CHROMAGEN for over 16 years, supplying
them with various types of metals. CHROMAGEN was described as an excellent
client who always pays on time.
Kibbutz Sha'ar Ha'amakim was founded in 1935.
There are 415 members and a total population of 760. They cultivate 5,000,000
sq. meters of agricultural land (grain, hay, citrus, fruit plantations,
avocado) and control 3,500,000 sq. meters of natural pasture. They also breed livestock (cattle, poultry).
TENE FUND is a private equity firm, investing
chiefly in traditional and mid-tech Kibbutz industries, controlled by Dr. Ariel
Halperin. Main institutional investors in TENE are LEUMI & CO., PHOENIX
INSURANCE, MENORAH MIVTAHIM Financial Group. TENE Fund manages some US$ 200
million and so far it invested in several plants with investments between US$ 5
to US$ 30 million in each, in the framework of 2 funds: TENE I and TENE II,
which subject is part of.
In 2006, it was reported that CHROMAGEN will
sell receptors to hotels in Greece, for a sum of NIS 10 million. Reportedly
subject also won a tender in Uzbekistan, to install a field of solar receptors
in 15 gold mines in the country. The project value estimated at US$ 2.25 million.
It was also reported, that earlier subject
signed a NIS 7 million agreement for the erection of a solar systems plant in
Geor
In July 2007, it was reported that CHROMAGEN won
a tender in Chile valued US$ 16 million for water heating through solar
collectors.
According to reports from April 2007, subject
was chosen as one of 5 Israeli solar systems suppliers, as candidates to take
part in a "solar city" project initiated by the State of New Jersey
(in Meadowlands). The projected volume of investment in overall manufacturing
for the project is US$ 154 million.
In August 2007, it was reported that CHROMAGEN
is negotiating with local hotel chains DAN and HILTON to install its solar
systems. CHROMAGEN has already installed 40 solar systems in hotels situated in
countries at the Mediterranean Basin, mainly in Turkey.
It was also reported that CHROMAGEN will erect a
plant in Mexico for solar system manufacturing, with in vestment of NIS 15
million. The investment will be divided (50% each) between CHROMAGEN and local
investors. CHROMAGEN announced that it has already received orders in volume of
NIS 6 million for the plant.
In January 2009 it was reported that subject won
a tender to install solar systems in
In April 2009 subject won a court case against 2
of its former distributors who sued subject for breaching their distribution agreement.
The court ruled that the distributors should pay subject NIS 1 million.
In April 2010 it was reported that subject
signed a cooperation agreement with A.O. SMITH of USA, one of the world leading
suppliers of gas and electricity water heating systems, to integrate subject's
sun receptors in A.O's systems. This cooperation was seen as a big boost for
CHROMAGEN, however there have been impediments due to local American
regulations and State incentives.
According to a report from September 2012, the
US market for Group's products has not evolved at the pace it was expected and
is still operates in low volume.
In April 2010 it was reported that subject is
intending to establish a production plant in Australia.
In March 2011 it was reported that subject
entered the heat pumps field intended for pools, floor heating, etc.
In May 2012 it was reported that subject will
supply hundreds of water heaters to a holiday villages in Honduras, via Israeli
investment company BDP.
In the local market subject has been enjoying the dramatic rise in
demand for collectors, which is in the framework of the new regulation by the
government designed to encourage the use of “clean” energies. Yet, subject is
facing harsh competition from import.
The Israel Export & International Cooperation Institute reports that
the export of renewable energy from Israel is expected to grow by 4 times
within a decade, reaching US$ 1 billion by
The global renewable energy market is estimated at US$ 200 billion.
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.58.92 |
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|
1 |
Rs.91.80 |
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Euro |
1 |
Rs.78.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.