MIRA INFORM REPORT

 

 

Report Date :

26.10.2013

 

IDENTIFICATION DETAILS

 

Name :

HABONIM INDUSTRIAL VALVES & ACTUATORS LTD.

 

 

Registered Office :

Mobile Post Upper Galilee Kfar Hanassi 1230500           

 

 

Country :

Israel

 

 

Date of Incorporation :

26.01.2006

 

 

Legal Form :

Private Limited Company 

 

 

Line of Business :

Manufacturers, marketers and exporters of ball valves and pneumatic actuators in a wide range of sizes and materials

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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


Company name and address

 

HABONIM INDUSTRIAL VALVES & ACTUATORS LTD.

Telephone                           972 4 691 49 11/ 00; 691 49 35

Fax                                     972 4 691 49 02

Mobile Post Upper Galilee

KFAR HANASSI                            1230500         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-378900-8 on the 26.01.2006.

 

On the 01.01.2007 subject assumed all the business activities of HABONIM CAST PRODUCTS LTD., a private limited company originally incorporated in 1960 by Kibbutz Kfar Hanassi (this company at a later stage also took over activities of its wholly-owned subsidiary, HABONIM INDUSTRIAL VALVES LTD., established in 1965).

The move took place after Moshe Namdar (and other investors) entered as investor in HABONIM Group acquiring part of the shares from Kibbutz Kfar Hanassi, who until then was the sole owner.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 10,000.00, divided into -

                100,000 ordinary shares, of NIS 0.1 each,

of which 30,513 shares amounting to NIS 3,051.3 were issued.

 

 

SHAREHOLDERS

 

1.    Moshe Namdar, 72.2%

2.    KFAR HANASSI HOLDINGS ACS LTD., 12.2%, fully owned by Kibbutz Kfar Hanassi, a cooperative society, operating a communal agricultural settlement,

3.    Eliad Katz, 8.2%,

4.    AYAL SHENHAV TRUSTEES LTD., 6.4%,

3.    HABONIM CAST PRODUCTS LTD., 1%.

 

 

DIRECTORS

 

1.     Moshe Namdar, Chairman,

2.     Eliad Katz, General Manager,

3.     Raanan Parnas,

4.     Baruch Cohen,

5.     Reuven Katz,

6.     Yehuda Bachar.

 

 

BUSINESS

 

Manufacturers, marketers and exporters of ball valves and pneumatic actuators in a wide range of sizes and materials. Products are stainless steel and aluminum cast products and special high quality cast accessories.

Products are to the Chemical, Petrochemical, Oil Refinery, Energy, Marine, Pulp and Paper, Nuclear, Semiconductor, Pharmaceutical, Biotech, Food and other industries.

 

80% of sales are export.

 

Subject’s clientele includes also leading local corporate, such as BROMINE COMPOUNDS, DEAD SEA WORKS, ELECTRICITY CORP, FRUTAROM, TEVA PHARMACEUTICAL INDS., KINETIC SYSTEMS ISRAEL, etc.

Among local distributors of subject’s products: TECHN-BAR, HAMEFALES, etc.

 

Among local suppliers: M.S.M - METAL SINTER MEFALSIM

 

Operating from premises (offices, plant), owned by Kibbutz Kfar Hanassi, on an area of several thousands sq. meters (on a plot of 22,000 sq. meters, 9,000 sq. meters built), in Kibbutz Kfar Hanassi.

Also operating from branches in the USA, UK, India and China.

 

Having 170 employees.

 

 

MEANS

 

Financial figures not forthcoming.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives. The Israeli Investment Center approved a US$ 3 million expansion plan for subject’s plant in 1997.

 

There are 6 charges for unlimited amounts, as well as 3 charges for the total sums of € 220,000, US$ 315,000 and NIS 2,500,000 registered on the company's assets (financial assets, fixed assets and equipment), in favor of The state of Israel, Bank Hapoalim Ltd. Mizrahi Tefahot Bank Ltd. and Israel Discount Bank Ltd. (last 3 charges placed in April-July 2013).

 

 

REVENUES

 

2012 sales claimed to be NIS 115,000,000, 80% were for export.

Projected 2013 sales are NIS 130,000,000, 80% for export.

 

 

OTHER COMPANIES

 

HABONIM INC., 100%, USA.

HABONIM UK LTD., 100%,

HABONIM VAAS AUTOMATION Pvt. LTD., India (with Indian partner)

HABONIM CAST PRODUCTS LTD., holding company.

HABONIM INDUSTRIAL VALVES LTD., non-active.

ELTAV WIRELESS MONITORING LTD., 16%, developers, manufacturers, exporters and marketers of wireless valve monitoring systems for the industry.

 

Moshe Namdar also has holdings in:

MOSHE NAMDAR & CO. LTD., 100%,

MASINGITA LTD., 96%, both latter international traders in diamonds, processors, importers, exporters and marketers of diamonds. MASINGITA's 2011 sales were US$ 100 million.

MOSHE NAMDAR GEMS LTD.,

MOSHE NAMDAR HOLDINGS LTD.,

MOSHE NAMDAR & ASSOCIATES (2005) LTD.

 

 

BANKERS

 

Bank Hapoalim Ltd., Nahariya Business Branch (No. 168), Nahariya.

Israel Discount Bank Ltd., Kiryat Shmona Branch (No. 110), Kiryat Shmona.

 

CHARACTER AND REPUTATION

Nothing unfavorable learned.

 

Subject's officials refused to disclose financial data, besides sales figures.

 

Subject is long established and well-known in its field.

 

Subject is ISO 9001:2000 certified.

 

Mr. Moshe Namdar is a well-known veteran diamond dealer, among the leading in Israel. Namdar is known worldwide and enjoys an excellent reputation in the diamond branch.

 

Kibbutz Kfar Hanassi, a locality in the Upper Galilee, founded in 1948. There are 310 members and a total population of 700. The Kibbutz is engaged in farming activities, cultivating large areas of agricultural land, livestock, etc. Besides the Kibbutz erected and are operating a hydro-electric power station which produces electricity by using the Jordan stream.

 

In August 2004 it was reported that HABONIM won an international tender to supply multinational pharmaceutical company GSK with pneumatic valves and actuators in consideration of US$ 7 million, with potential for further orders after 2 years. HABONIM won another contract for a similar company in 2004, though name was not given.

 

In December 2005 HABONIM announced that for the first time it will supply pressure valves and actuators to the Off Shore drilling rigs industry. HABONIM won 2 tenders to Norwegian companies NATIONAL OIL and MARITIME. The initial phase of the contract is worth US$ 1 million.

 

In January 2005 it was reported that HABONIM will supply UK company STORK PROTECH with special valves and equipment worth US$ 1.5 million for conveying radioactive materials. Other contracts worth jointly US$ 2 million to China, USA and Ireland were mentioned.

 

In February 2007, it was reported that subject established a subsidiary in China for manufacturing subject’s products.

 

In November 2007, a further supply deal was reported for NATIONAL OIL of Norway, an initial order of over US$ 2 million. In parallel, it was reported that subject’s products were certified by Russian giant GASPROM.

 

According to data by of the Metal, Electrical and Infrastructure Industries Association, representing the local Metal and Electricity Industries, which includes large scale export-oriented industries on one hand and family-owned plants which sell to the local market: 2010 sales (local and export) by the said industries amounted to NIS 70 billion, comprising 25% of Israel's industrial output. Results are similar to 2008 scales, after some 20% drop in 2009 due to the significant slow-down in the local economy, affected by the global financial and economic crisis. Sales for export reached US$ 10 billion in 2010.

Some 90,000 employees serve the said industries (26% of Israel's industrial workforce).

 

According to the Central Bureau of Statistics (CBS), import of metals raw materials to the local industries in 2012 marked a decreasing trend, after a remarkable recovery in the years 2010 and 2011 from 2009 (a year where the local industry suffered from slow-down in economy). Import of raw materials divided in 2012 as follows: Iron and Steel – fell by 11.5%, reaching US$ 2,177 million (after rising by over 30% per year in 2010 and in 2011); Precious Metals – down 13% (after rising by 2% in 2011 and 22.5% in 2010) and reaching US$ 146 million; Non-ferrous Metals – fell by 13% (after increase by 20% in 2011 and by 41% in 2010), reaching US$ 803 million.

 

Central Bureau of Statistics data reveals that investments by the local manufacturing industries -both from import and domestic production- in machinery & equipment (M&E) in 2012 fell by 1%, which comes after 41% rise in 2011. The investments originating from import, which comprised 70% of overall investment in M&E, fell 3.8% (after 69% rise in 2011), while investment originating from local production rose by 6.2% in 2012 (fell 5.3% in 2011).

Gross Domestic Capital Formation (investment) in machinery & other equipment in 2012 reached (in current prices) NIS 47,540 million, of which NIS 33,336 million was from imports and NIS 14,204 miilion from domestic production.

 

According to the Central Bureau of Statistics, investments by the local industrial branch in imported machinery and other equipment in 2012 witnessed almost 20% (in current prices) decrease from 2011, after climbing by 108% in 2011 from 2010. The fall in 2012 in investment could be explained by the continuing unfavorable business environment, which is also negatively affected by the slow-down in overseas markets.

 

 

SUMMARY

 

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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.12

 

 

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.