|
Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAANDAN JAIN IRRIGATION C.S. LTD |
|
|
|
|
Formerly Known As : |
NAANDAN IRRIGATION AGRICULTURAL COOPERATIVE
SOCIETY LTD |
|
|
|
|
Registered Office : |
Post Naan Naan 7682900 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
29.11.1966 |
|
|
|
|
Legal Form : |
Limited Partnership |
|
|
|
|
Line of Business : |
Developers, manufacturers, marketers and exporters of irrigation and
sprinkling equipment. |
|
|
|
|
No. of Employees : |
360 |
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
NAANDAN JAIN IRRIGATION C.S. LTD.
(C.S. stands for Cooperative Society)
Telephone 972 8 944 22 33
Fax 972 8 935 06 26
Email: mkt@naandanjain.com
Post Naan
NAAN 7682900 ISRAEL
An Agricultural Cooperative Society (ACS), operating since 2000, registered
as per file No. 57-003551-9, succeeding a General Partnership, registered as
per file No. 54-009281-4 on the 29.11.1966 (under the name NAAN IRRIGATION
SYSTEMS).
Partnership was founded with the view to take over the activities of a
non-registered firm, originally established in 1938 as an industrial department
of Kibbutz Naan, under the name of “NAAN MECHANICAL WORKS”.
As of the 01.07.2001, subject took over all the activities of DAN
SPRINKLERS (a limited partnership established by Kibbutz Dan in 1973) and
merged it into its own activities.
As a result of this move, subject changed its name to NAANDAN IRRIGATION
AGRICULTURAL COOPERATIVE SOCIETY LTD.
Following the entrance of the JAIN Concern as a 50% shareholder in subject
in June 2007, name was changed again to the present one.
Subject is fully owned by JAIN IRRIGATION SYSTEMS LTD. (JAIN Concern) (in chaining,
via subsidiaries; subject's direct parent company is JAIN (ISRAEL) BV.,
Netherlands), of India, a public limited company, whose shares are traded on
the Bombay Stock Exchange and National Stock Exchange of India.
In 2007 Kibbutz Naan acquired from Kibbutz Dan its 31% holdings in subject.
According to reports, Kibbutz Naan paid Kibbutz Dan NIS 30 million for their
stakes, following which it reached 100% in subject.
In June 2007 JAIN Concern of India acquire from Kibbutz Naan 50% of
subject, reportedly for US$ 45 million.
In July/August 2012 JAIN completed the acquisition of Kibbutz Naan's
remaining 50% (realizing its option) for reported sum of US$ 34 million.
1. Anil B. Jain, Joint Chairman,
2. Avner Hermoni, General Manager.
Developers, manufacturers, marketers and exporters of irrigation and
sprinkling equipment, “Naan-Tif” integrated dip tubing, die casting, hot
stamping, metal foundry, plastic injection moldings, etc, as well as executing
agricultural projects..
80% of sales are exports.
Subject’s sales are to over 100 countries worldwide.
Among local clients are municipalities, agricultural societies, HAMASHBIR
LAHAKLAI, AMIR SUPPLY CO., etc.
Most purchasing is from import.
Among local suppliers: CARMEL OLEFINS, BERMAD, ODIS IRRIGATION EQUIPMENT,
BANIAS, NORDIA SPRINGS, PLASSIM FITTINGS, etc.
Operating from an owned plant, on an area of 25,000 sq. meters, in Kibbutz
Naan (owned by kibbutz Naan), from a plant in Kibbutz Dan, and from plants in
Mexico, Spain and Chile.
Had 360 employees in Israel and 450 in the Group, including abroad – as of
2011. Current number of employees unavailable.
In mid 2011, subject's stock was valued at NIS 50,000,000, and consolidated
stock is valued at NIS 130,000,000. Later data unavailable.
According to a report from May 2012, JAIN invested in subject NIS 125
million since its entered as a shareholder in 2007, in R&D and production
lines.
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives.
In November 2003, the Israeli Investment Center approved US$ 3 million
investment plan for the expansion of subject’s plant.
2006 sales claimed to be NIS 310 million, 80% for export.
2007 sales claimed to be NIS 350 million, 80% for export.
2008 sales claimed to be NIS 350 million, 80% for export.
2009 sales claimed to be NIS 400 million, 80% for export.
2010 sales claimed to be NIS 500 million, 80% for export.
2011 sales claimed to be NIS 500 million, 80% for export.
According to the financial statements of JAIN IRRIGATION SYSTEMS LTD. for
the year ended 31.03.2012, subject's revenues were NIS 433.76 million
(equivalent to US$ 121.43 million).
Later sales figures not forthcoming.
NAANDAN AGRO-PRO LTD., 100%, Israel, company for agricultural
applications)
NAANDAN JAIN FRANCE Sarl, 100%, France
NAANDANJAIN MEXICO, S.A. De C.V., 100%, Mexico
NAANDAN JAIN AUSTRALIA Pty Ltd., 100%, Australia
NAANDAN JAIN S.R.L., 100%, Italy
NAANDAN DO BRASIL PARTICIPACOES Ltda., 100%, Brasil
NAANDAN JAIN INDUSTRIA E COMERCIO DE EQUIPMENTOS LTD., 100%, Brasil
NAANDAN JAIN IBERICA S.C., 100%, Spain
NAANDAN JAIN PERU S.A.C., 100%, Peru
NAANDANJAIN IRRIGATION PROJECTS S.R.L., 100%, Romania
DANSYSTEMS S.A., a Joint Venture, 50%, Chile.
JAIN IRRIGATION SYSTEMS LTD. (JAIN Concern), a multinational corporation
with multi product industrial profile and manufacturers of drip and sprinkler
irrigation systems and components. Has 15 plants worldwide, 2012 consolidated
sales INR 49.2 billion.
Bank Hapoalim Ltd., Rehovot Branch (No. 615), Rehovot, account No. 120400.
A check with the Central Banks’ database did not reveal any negative
information regarding subject’s a/m account.
Bank Leumi Le'Israel Ltd., Rehovot Business Branch (No. 978), Rehovot.
Nothing unfavorable learned.
Subject’s
controller, with whom we speak to get updates on subject, is presently on
vacation and due back in about one week time. We shall contact him upon his
return and update you accordingly.
Indian JAIN Concern is considered a leading one in the Indian
agro-industrial market, with 60% market share, employing 7,000 in India and
overseas subsidiaries. JAIN is considered No. 1 in the world in drip irrigation with pipe production.
JAIN acquired subject in 2 phases from its founder, Kibbutz Naan: 50% in
2007, then realizing its "call" option and acquire the additional 50%
in 2012. Purchasing sum (in total US$ 79 million) in 2012 was lower than in
2007, however it should be noted that in the middle JAIN invested considerable
sums in subject (as noted in MEANS above). According to the latest agreement,
production activities in the 2 plants in Israel will remain until 2020.
Subject is among the leading global players
in the drip irrigation field, although drip irrigation captures mere 5% of the
whole global irrigation market.
Israeli companies
are considered pioneers and leading industries in the world, including subject,
NETAFIM (the largest in the world) and JOHN DEERE WATE.
Subject is ISO 9001:2008 certified.
There
were several reportes in 2004 on subject: Manage a US$ 40 million agricultral
project in Mexico; Erect a plant in Spain with an investment of €1 million (partnered with GRUPO TPM); Erect a 4,000 sq.
meters plant in Australia, with an investment of US$ 1.3 million.
In
2005, it was reported that subject signed a US$ 2 million deal to provide
sprinklers to a vineyard in Chile.
There
were several reportes in 2004 on subject: Signed a US$ 2.5 millon contract in
Chile; Supply irrigation equipment in volume of US$ 1.5 millon to a national
forest project in Turkmenistan (deal was won via an Israeli project firm called
JOKAS); Launching a new logistics center in Mexico, of 1,500 sq. meters.
In 2007, subject announced a US$ 2 million supply contact to tea
plantations in India, and projected US$ 1.8 million contract in Japan.
In July 2007, it was reported that subject is in the move of gaining
control in its international subsidiaries, with total investment of US$ 10
million.
In June 2008 reported it has recently opened a subsidiary in Lima, Peru, to
reply to the growing technology demands of Peru’s agriculture.
In February 2009 it was reported that subject launched 2 production lines
with an investment of NIS 10 million.
In June 2011 it was reported that subject launched a production line in
India with an investment of NIS 15 million, of a total of NIS 100 million in
the Indian production plant. It was further reported that subject's expects
that this production line will increase subject's world market share to 15%.
Also subject invested € 5 million in a production line in Spain.
Notwithstanding the lack of updated data from subject's officials so far,
considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
|
1 |
Rs.100.47 |
|
Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.