MIRA INFORM REPORT

 

 

Report Date :

16.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DEPOTCHEM (1989) LTD.

 

 

Registered Office :

P.O. Box 70, Haifa (3100001), P.O. Box 449, Re’em Industrial Park, Bnei Ayish 6086000

 

 

Country :

Israel

 

 

Date of Incorporation :

11.05.1989

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of industrial and agricultural chemicals and allied products for the industry, mainly the paper and food industries.

 

 

No. of Employees :

34

 

 

RATING &

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

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

(31.03.2012)

Current Rating

(30.06.2012)

Israel

 

 

 

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

                  

DEPOTCHEM (1989) LTD.

Telephone    972 8 851 96 00

Fax              972 8 841 06 47

P.O. Box 70, Haifa (3100001)

P.O. Box 449

Re’em Industrial Park

BNEI AYISH 6086000                ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-138568-4 on the 11.05.1989, under the name TAMOR INDUSTRIAL SUPPLY LTD., which changed to the present name on the 29.06.2000.

 

In the course of 2000/2001 subject assumed the activities of subsidiary DEPOTCHEM DISTRIBUTION SERVICES (1993) LTD. (formerly DEPOTCHEM LTD.), which became non-active.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 2,460.00, divided into -

2,460 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.      CHEMOVIL LTD., 99%, owned by Oded Feller and his family,

2.      E. FELLER & ASS. LTD., 1%.

 

 

SOLE DIRECTOR

 

Oded Feller, Chairman

(Note: Actual registered director is CHEMOVIL LTD.).

 

 

GENERAL MANAGER

 

Udi Alroy

(Former General Manager Ilan Hakim became the Manager of CHEMOVIL's Business Division).


 

BUSINESS

 

Importers and marketers of industrial and agricultural chemicals and allied products for the industry, mainly the paper and food industries.

 

Customers of subject are leading local industrial corporations, including: SHEMEN INDS., FRUTAROM INDUSTRIES, HADERA PAPER, BROMINE COMPOUNDS, OSEM, TEVA PHARMACEUTICALS, HAIFA CHEMICALS, ROTEM AMFER NEGEV, TARA DAIRIES, FERTILIZERS & CHEMICALS, NIRLAT, TAMBOUR, TERMOKIR, AVCO CHEMICALS, Y.S. ASHKENAZI AGENCIES, AROMOR FLAVOURS & FRAGRANCES, B.G. POLYMERS, YENA INDUSTRIES, MOR-GAL PLASTIC, etc.

 

Over 80% of purchases are imports, mainly from China (25%) and Western Europe, the rest purchased locally.

 

Amongst local suppliers: MAKHTESHIM AGAN INDUSTRIES, HAIFA CHEMICALS, ZOHAR DALIA, FERTILIZERS & CHEMICALS, V.M. BACHAR, APPLIED CHEM, etc.

 

Sole local agents of (main agencies):

SOLVAY FLOUR, WACKER CHEMIE, PETER GREVEN, SE TYLOSE, all of Germany,

POLLMERI EUROPE, of Italy,

YARA, of Norway.

 

Operating from main premises (offices and storage facilities), on an area of 22,000 sq. meters, in Re'em Park, Bnei Ayish (total plot of 45,000 sq. meters), a village east of the Port of Ashdod. Also operating from a branch (offices and storage facilities), on an area of 1,500 sq. meters, in 1 Katsenstein Street, Haifa Bay (part of the headquarters and main premises of the CHEMOVIL Group, on a total plot of 45,000 sq. meters) (also subject's registered address including postal box location).

All premises are owned by the shareholders.

 

Having 34 employees (same as in end of 2011, had 33 employees in early 2011, same as in 2010 and 2009, had 32 employees in 2008 and 30 employees in 2007).

 

 

MEANS

 

Current stock is valued at US$ 5,500,000 (was valued at US$ 6,000,000 in end of 2011, at US$ 4,500,000 in end of 2010, at US$ 4,000,000 in early 2010).

 

Other financial data not forthcoming, however known to be financially solid.

 

There are 4 charges for unlimited amounts registered on the company's assets (financial assets and shares held in companies), in favor of Bank Hapoalim Ltd., and private companies and an individual (all charged placed in April-May 2012).

 

 

REVENUES

 

2006 sales claimed to be US$ 35,000,000.

2007 sales claimed to be US$ 35,000,000.

2008 sales claimed to be US$ 40,000,000.

2009 sales claimed to be US$ 35,000,000.

2010 sales claimed to be US$ 42,000,000.

2011 sales claimed to be US$ 48,000,000.

2012 sales claimed to be US$ 50,000,000 (Note: numbers relate to subject, not including AMGAL and BACTOCHEM that were acquired in 2012).

 

 

OTHER COMPANIES

 

BORA LTD., 45%, agencies, importers and distributors of raw materials for the plastic industry.

AMGAL CHEMICAL PRODUCTION (1989) LTD., 100%, manufacturers and marketers of industrial chemicals for the water (including cleaning substances), food and printing industries.

BACTOCHEM LTD., 100%, laboratory for food, water and chemical testing.

DEPOTCHEM DISTRIBUTION SERVICES (1993) LTD., 100%, non-active.

 

CHEMOVIL LTD., parent company, importers, wholesale distributors, transporters and storage of raw materials to the industry. Also controls, among others:

CAESAREA POLYMER INDUSTRIES LTD., 100%, developers, manufacturers and marketers of rigid, semi-rigid and flexible polyurethane systems for a wide range of industries and applications

BULK CHEMICALS LTD., importers of raw materials.

PAZMOVIL (FUEL TRANSPORT) LTD., 49%, transporters and distributors of petroleum products.

CHEMINTER LTD., represents the CHEMOVIL Group internationally, distributors of chemicals in Europe.

 

CHEMINTER INC., 100%, operating from Zurich, Switzerland, dealers in chemicals.

CHEMOTHAL LTD., 100%, road bulk transportation of chemicals, transportation in tankers and allied logistics services providers, including leasing storage facilities

ISRAEL ENERGY (ENEREL) LTD., engaged in fuel products.

TABIB THE ISRAELI HAZARDOUS WASTE HANDLING AND DISPOSAL CO. LTD., 50%, waste handling, recycling, transportation and disposal services.

ALFA SYSTEM, 50%, a Wroclaw (Poland) based Polyurethane Systems and Polyol producer.

 

Oded Feller holds other companies, including investment and real estate firms:

EMILIA DEVELOPMENT (O.F.G) LTD., a holding company publicly traded on TASE, controlled (84.1%) by Oded Feller, with current market value US$ 44.5 million. Having investment in the financial and industrial fields, including:

ZOHAR COSMETICS (M.O.F) LTD. (formerly CARELINE (PHARMAGIS) LTD.), 100%, manufacturers, exporters and marketers of personal care products, cosmetics, toiletries and cleaning products,

ZOHAR COSMETICS (M.O.F) DISTRIBUTION & MARKETING LTD., 100%,

PALZIV EIN HANATZIV ACS LTD., 25%,

MAXIMA AIR SEPARATION LTD., 13.5%,

CAESAR-STONE SDOT-YAM LTD., 2.6%,

Also hold 7.3% in the TENE Investment Fund, which is holds shares (in several levels of investments) in several industrial companies.

 

O. FELLER HOLDINGS LTD., holding company controlled by Oded Feller.

E. FELLER & ASS. LTD., holding company of the Feller family.

EFGO MANAGEMENT LTD., "EFGO" stands for Emil Feller Gideon Oded, an investment and holding company,

SUNORAMA TOURISM SERVICES LTD., airline agents and tourist services.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Haifa Main Branch (No. 876), Haifa, account No. 225700/20.

The First International Bank of Israel Ltd., Haifa Main Branch (No. 006), Haifa and Tel Aviv Main Branch (No. 046), Tel Aviv, account No. 638501.

 

A check with the Central Banks’ database did not reveal negative information on subject’s above mentioned accounts.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

CHEMOVIL Group (which subject is part of), headed by CHEMOVIL LTD., operating since 1959, is a well-known leading company in its field, enjoying a good reputation in its field. The Group deals, besides chemicals, in the areas of waste water treatment and flour mills operation. Group rolls turnover of NIS 250 million according to estimations.

CHEMOVIL LTD. is one of the Oded Feller 2 main holding companies, the other one being the EMILIA Group (see above OTHER COMPANIES). In October 2009 EMILIA completed the acquisition of CARELINE from PERRIGO ISRAEL PHARMACEUTICALS LTD. for NIS 183 million, including real estate assets and other related commercial activities (which two weeks later it signed an agreement to sell most of it for NIS 85 million, remaining mainly with the real estate activities).

Mr. Feller also served as the President of the Haifa & North Israel Chamber of Commerce.

 

In recent years we received couple of positive suppliers' opinion on subject.

ZOHAR DALIA officials told us they are working with subject for many years, supplying them with chemicals. Subject was described as a good client who always pays on time.

FERTILIZERS & CHEMICALS officials told us they are working with subject for many years, supplying them with chemicals. Subject was described as a good client who always pays on time.

 

CHEMOVIL supplies administration and financial services to subject.

In June 1998 CHEMOVIL Group acquired from HAMASHBIR INVESTMENTS 26% of HAMASHBIR CHEMICALS LTD. (which changed name to DEPOTCHEM DISTRIBUTION SERVICES (1993) LTD.) gaining full ownership. Following that, part of the activities of CHEMOVIL LTD. was transferred to DEPOCHEM.

 

On 01.01.2012 CHEMOVIL Group, via subject, acquired two companies from Asher Skalsky: AMGAL CHEMICAL PRODUCTION (1989) LTD. (established in 1989, continuing activities that started in 1979) and BACTOCHEM LTD. (established in 1975). Both companies operate in the chemicals raw materials field and are known in their area. According to the media the deal value was US$ 50 million (divided US$ 30 million for operations and manufacturing facilities and US$ 20 million –to be paid along 5 years- for the goodwill and non-competition), yet subject's official refused to disclose the deal's numbers, commenting that 'the numbers' in the media are incorrect. AMGAL's reported 2011 sales were NIS 150 million.

 

According to the Central Bureau of Statistics, import of chemical raw materials for the local industries in 2011 increased by close to 17% from 2010, with value of imported chemical raw materials reaching US$ 4,942 million. This marks a continuing growth trend from 2010, when import rose by 18% from 2009 as the markets recovered from the crisis in 2009 (when import decreased by 18.5% comparing to 2008).

 

 

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.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.