MIRA INFORM REPORT
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Report Date : |
22.05.2013 |
IDENTIFICATION DETAILS
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Name : |
KOFFOLK (1949) LTD. |
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Formerly Known As : |
FOLKMAN & DR. KOFFLER LTD |
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Registered Office : |
P.O. Box 1098, TEL AVIV (6101001), 2 Hanagev Street, Motorola Building,
Airport City 7019900 |
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Country : |
Israel |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
30.06.1949 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, marketers and exporters of fine chemicals and animal
health & nutrition products. |
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No. of Employees : |
200 |
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 : |
Satisfactory |
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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
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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
KOFFOLK (1949) LTD.
Telephone 972
73 270 03 00/ 972 3 927 31 00
Fax 972
73 270 04 09
E-mail: markovits@koffolk.co.il
P.O. Box 1098, TEL AVIV (6101001)
2 Hanagev Street
Motorola Building
AIRPORT CITY 7019900
ISRAEL
Web-site: www.koffolk.co.il
A private limited company, incorporated as per file No. 51-005760-7 on the
30.06.1949.
Originally registered under the name of FOLKMAN & DR. KOFFLER LTD.,
which changed to the present one on the 14.03.1979.
In June 1992 subject took over all activities of its subsidiary, AGROZAN
LTD.
Authorized share capital NIS 43,000.00, divided into -
429,940,000 ordinary shares (375,395,342 shares issued),
60,000 ordinary "A" shares (issued), all of NIS 0.0001 each, of
which shares amounting to NIS 37,545.5342 were issued.
Subject is fully
owned by PILLIP BROTHERS CHEMICALS INC., fully owned by PHIBRO ANIMAL HEALTH
CORPORATION ("PAHC") of the U.S.A., a private limited company,
controlled by Jacob (Jack) Bendheim (of the USA).
Note: Jacob (Jack) Bendheim himself holds 56
ordinary shares.
1. Jacob Bendheim, Chairman and
President of PAHC, of the USA,
2. Yehuda Markovitz,
3. Richard Johnson, of the USA,
4. Avner Birenboim.
Jonathan Bendheim.
Manufacturers, marketers and exporters of fine chemicals and animal health
& nutrition products.
In the fine chemicals field, subject supplies intermediates for
pharmaceuticals as well as for the agro-chemicals and cosmetics markets.
In the animal health & nutrition field, subject supplies active
veterinary pharmaceuticals, vitamin concentrates, mineral medicated and
non-medicated premixes as well as other specialty ingredients.
In March 2011 as
part of a re-organization in PAHC Group, fully owned ABIC BIOLOGICAL
LABORATORIES LTD. (and its fully owned subsidiary ABIC VETERINARY PROD
50% of subject's
sales are for export (2011).
Local distribution is also carried out by
ABIC VETERINARY PROD
Subject operates as manufacturing
sub-contractors for NUTRITION & HUSBANDRY OF LIVESTOCK LTD., suppliers of animal nutrition, feed supplements
and preventive medicines.
Among clients: AMBAR
CENTRAL FEED MILLS, RANAN FISH FEED, MILOUBAR, etc.
Among local suppliers:
NUMINOR - CHEMICAL INDUSTRIES, RINGEL BROS., DEAL ENGINEERS, APPLIED CHEM, DORMEX TRADE AND
INVESTMENTS CO., E.S.T. PROJECTS INDUSTRIAL SUPPLIES &
SERVICE, etc.
Operating from:
1. Office premises (rented),
on an area of 1,200 sq. meters, in 2 Hanegev Street, Business Park, Airport
City (serving subject and ABIC), Lod.
2. Plant, labs and warehouses (premises owned by the shareholders), on a built
area of 5,000 sq. meters (on a plot of 10,000 sq. meters), in 7 Magshimim
Street, Kiryat Matalon, Industrial Zone, Petach Tikva (the address you
provided).
3. Plant (owned premises), on an area of 76,000 sq. meters, in the Industrial
Zone, Ramat Hovav (south of Beer Sheva).
4. ABIC operates from plant, warehouse and distribution center, on an
area of 3,000 sq. meters, in 3 Hamelacha Street, Western Industrial Zone,
Beit Shemesh.
As of beginning of 2012, having 180 employees in subject (had 170 employees
in 2011) and 270 employees in KOFFOLK Group (including ABIC Group).
According to a report from May 2013, subject has some 200 employees.
Stock was valued US$
12,000,000 in the beginning of 2012.
Consolidated stock was valued US$ 26,000,000 in
the beginning of 2012.
Subject is an “Approved Enterprise” and as such is entitled to State
benefits and incentives.
Consolidated B/S shows (fiscal year ends 31st March, last obtainable):
US$
(thousands)
30.06.2011 30.06.2010
ASSETS
Current assets:
Cash & cash equivalents 2,284 6,247
Accounts receivable - trade 30,312 34,656
Accounts receivable - other 3,602 8,040
Inventories 25,840 21,904
62,038 70,847
Loans to related parties - 16,271
Property, plant & equipment (net) 28,348 25,063
Intangible assets and other long-term assets 7,163 8,992
Investment in consolidated subsidiary 5,186 4,569
102,735 125,742
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LIABILITIES
Current liabilities
Current
maturity of long-term liability 347 100
Accounts payable and accruals: Trade 23,874 22,160
Other 10,975 10,841
35,196 33,101
Long term liabilities
Loans and other liabilities, net of current
maturity 977 37,530
Other long-term liabilities 7,331 6,753
8,308 44,283
Equity 59,231 48,358
102,735 125,742
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There are 7 charges for unlimited amounts registered on subject's assets
(all assets), in favor of the State of Israel, Union Bank of Israel Ltd.,
Mizrahi Tefahot Bank Ltd. and leasing companies (last charge placed in May
2012).
2007 sales claimed to be US$ 59,000,000, 60% of which for export.
2008 sales claimed to be US$ 70,000,000, 60% of which for export.
2009 sales claimed to be US$ 70,000,000, 55% of which for export.
2010 sales claimed to be US$ 70,000,000, 55% of which for export.
Apart from 2011, ABIC Group sales are consolidated into the sales.
Consolidated 2011 sales were US$ 109,000,000 (of which US$ 70,000,000 were
by subject solo), 50% of which for export.
Later sales data not forthcoming.
Parent company PAHC consolidated
annual sales are US$ 550,000,000.
Subsidiaries (100%), included in subject's consolidated financial data:
ABIC BIOLOGICAL LABORATORIES LTD., developers, manufacturers, marketers and
exporters of vaccines and compounds for animals, mainly poultry vaccines, fully
own ABIC
VETERINARY PROD
KOFIMEX LTD., manufacturers and marketers of veterinary medicines,
AGROZAN LTD., marketing of animals feed supplements,
PLANALQUIMICA INDUSTRIAL LTDA, Brazil.
PHIBRO ANIMAL HEALTH CORPORATION (PAHC), manufacturers and marketers of a
broad range of animal health and nutrition products to the poultry, swine and
cattle markets. Also a manufacturer and marketer of performance products for
the ethanol, wood preservation and personal care industries.
Other companies of "PAHC":
Animal Health & Nutrition Division (of which subject is part of):
PRINCE AGRI PROD
Performance Products Division (previously known as the Specialty Chemicals Group and includes the
Distribution and Industrial Chemicals segments):
PHIBRO-TECH, INC. is a metal-based manufacturer, recycler, and marketer of
performance chemicals, serving the metal finishing, printed circuit board,
catalyst, and related industries,
PHIBROCHEM, International Sourcing Specialist.
FERRO METAL & CHEMICAL CORPORATION LTD., manufactures and distributes
on a worldwide basis a range of specialty chemicals from its locations in the
UK and Germany, PHIBROWOOD, supplier of technologically advanced,
environmentally friendly, wood preservation treatment products
Union Bank of Israel Ltd., Main Branch (No.
063), Tel Aviv, account
No. 827400/90.
Bank Leumi
Le’Israel Ltd., Kiryat Arie Business Branch (No. 670), Petach Tikva, account No. 84100/95.
Mizrahi Tefahot
Bank Ltd., Jabotinsky Bnei Brak Branch (No. 431), Bnei Brak, account No.
151299.
A check with the Central Banks' database did
not reveal anything detrimental on subject’s a/m accounts.
On the 01.05.2013 it
was reported that the Neot Hovav Industrial Council ordered an immediate
closing of subject's plant in Ramat Hovav due to severe odor harassments, as
well as violation of subject's treatment of hazardous products and pollutants.
This follows hearing procedures in the past months regarding smell harassments.
In an earlier event,
in January 2011, The Ministry for Environment Protection notified subject (and
another 4 companies) that they must stop transferring waste to the evaporation
pools in Ramat Hovav, or be exposed to legal procedures.
Apart from that, 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 Iso 9001
certified.
Subject is a large and long established company, leading in their field.
Subject is a member of the PHIBRO ANIMAL HEALTH CORPORATION (formerly known
as PHILLIP BROS. CHEMICALS INC.), a global player in the veterinary field,
which operates around the world
with 900 employees, selling products to 2,500 customers in over 50 countries.
In June 2010 parent company PAHC, following a private share issuing (some 30%) to a private investor,
completed a successful purchase offer for its shares which were traded on the
AIM London Stock Exchange and shares were de-listed from trade and PAHC became
a private limited company.
In December 2000, subject’s parent company acquired the medical food
additives division for animals of the
In the beginning of the 2000s subject acquired British company WYCHEM,
manufacturers of industrial chemical and pharmaceutical products.
In February 2009, parent company PAHC completed the acquisition of ABIC VETERINARY
PROD
The yearly value
of veterinary drugs produced by local companies estimated in mid 2007 amounted
to US$ 50 million, of which 50% were for export.
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).
Notwithstanding
the lack of updated data from subject's officials, and a/m Ramat Hovav plant
incident, considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.04 |
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1 |
Rs.83.95 |
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Euro |
1 |
Rs.70.93 |
INFORMATION DETAILS
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Report
Prepared by : |
NIT |
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.