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Report Date : |
21.04.2014 |
IDENTIFICATION DETAILS
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Name : |
AMGAL CHEMICAL
PRODUCTION (1989) LTD. |
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Registered Office : |
2 Tnuva Street,
Industrial Zone, Be'er Tuvia 8381500 |
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Country : |
Israel |
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Date of Incorporation : |
16.07.1989 |
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Com. Reg. No.: |
51-140043-4 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers and marketers
of industrial chemicals for the water purification (including cleaning substances),
food and printing industries. Subject specializes in water and fire repellant chemicals, as well as
food additives and chemicals for the food industry. |
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No of Employees : |
110 employees (had
100 employees as of mid 2012, similar to 2011 and 2010). |
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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
Israel ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Cut
diamonds, high-technology equipment, and pharmaceuticals are among the leading
exports. Its major imports include crude oil, grains, raw materials, and
military equipment. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year,
led by exports. 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. 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. The economy has recovered better
than most advanced, comparably sized economies, but slowing demand domestically
and internationally, and a strong shekel, have reduced forecasts for the next
decade to the 3% level. Natural gas fields discovered off Israel's coast since
2009 have brightened Israel's energy security outlook. The Tamar and Leviathan
fields were some of the world's largest offshore natural gas finds this past
decade. The massive Leviathan field is not due to come online until 2018, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. Israel's income inequality and poverty rates are among the highest of
OECD countries and there is a broad perception among the public that a small
number of "tycoons" have a cartel-like grip over the major parts of
the economy. 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. In May 2013 the Israeli government, in a politically difficult
process, passed an austerity budget to reign in the deficit and restore
confidence in the government's fiscal position. Over the long term, Israel
faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
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Source : CIA |
AMGAL CHEMICAL
PRODUCTION (1989) LTD.
(Also known as AMGAL CHEMICAL PRODUCTS (1989) LTD.
and
AMGAL CHEMICAL MANUFACTURING (1989) LTD.)
Telephone 972 8 861 06 10
Fax 972 8 940 14 39 /44
2 Tnuva Street
Industrial Zone
BE'ER TUVIA 8381500 ISRAEL
A private limited company, incorporated as per
file No. 51-140043-4 on the 16.07.1989.
Early in 1992 company took over the business activities
of AMGAL CHEMICALS LTD., originally established 1979.
Authorized share capital NIS 643,600.00, divided into -
643,600
ordinary shares of NIS 1.00 each,
of which 622,569 shares amounting to NIS 622,569.00 were issued.
Subject is fully owned by DEPOTCHEM (1989) LTD., owned by CHEMOVIL LTD.,
99%, owned by Oded Feller and his family (holding remaining 1% of DEPOTCHEM via E. FELLER & ASS. LTD.).
In April 2012 DEPOTCHEM completed the acquisition of two companies from Asher Skalsky: Subject and BACTOCHEM LTD.
(established in 1975). 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.
DEPOTCHEM (1989) LTD. is registered as sole director.
Oded Feller is
Chairman of Group.
Ms. Iris Fine.
Manufacturers and marketers of industrial chemicals for the water
purification (including cleaning substances), food and printing industries.
Subject specializes in water and fire repellant chemicals, as well as
food additives and chemicals for the food industry.
Almost all sales are to the local market (subject also exports however in
insignificant volume).
Among major clients are local large corporations: MEKOROT WATER CO., THE
ISRAEL ELECTRIC CORP., GAT GIVAT HAIM, GAN SHMUEL FOOD, TNUVA, MILOPRI, GANIR,
STRAUSS GROUP, MA'ARIV, YEDIOTH AHARONOT (latter 2 are largest local daily
newspapers), etc.
Among local suppliers: MAKHTESHIM CHEMICAL WORKS, HAIFA CHEMICALS,
BROMINE COMPOUNDS, FERTILIZERS & CHEMICALS, MATERIALS HANDLING, etc.
Operating from rented premises (offices and plant), on an area of 48,000
sq. meters, 10,000 sq. meters of which are built, in 2 Tnuva Street, Industrial
Zone, Be'er Tuvia (to where they recently moved from 18 Hacharash Street,
Industrial Zone, Nes Ziona).
Having 110 employees (had 100 employees as of mid 2012, similar to 2011
and 2010).
Subject and sister company BACTOCHEM LTD. were acquired according to a
reported value of US$ 50 million.
Stock was valued at NIS 18,000,000 in mid 2012 (was valued at NIS
16,000,000 in mid 2011 and NIS 11,500,000 in mid 2010).
Later and other financial data not forthcoming.
Subject is an "Approved Enterprise", and as such entitled to
tax benefits and State incentives. In April 2005, the Investment Center
Authority approved a NIS 16.5 million investment plan for the expansion of
subject’s plant.
There are 2 charges for unlimited amounts registered on the company's
assets (all assets), in favor of the State of Israel and Bank Hapoalim Ltd. (charges placed in 2007 and in April 2012).
· 2007 sales claimed to be NIS 129,000,000.
· 2008 sales claimed to be NIS 150,000,000.
· 2009 sales claimed to be NIS 140,000,000.
· 2010 sales claimed to be NIS 150,000,000.
· 2011 sales claimed to be NIS 150,000,000.
· 2012 sales claimed to be NIS 160,000,000.
· 2013 sales claimed to be NIS 160,000,000.
BACTOCHEM LTD., 100%, laboratory for food, water and chemical testing.
BACTOCHEM LOGISTICS LTD., 100%,
DERECH HA'MA'ABADA LTD., 100%.
DEPOTCHEM (1989) LTD., parent company, importers and marketers of industrial and
agricultural chemicals and allied products for the industry, mainly the paper
and food industries. 2012 sales claimed
to be US$ 50 million.
Holds:
BORA LTD., 45%, agencies, importers and
distributors of raw materials for the plastic industry.
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 CHEMOVIL Group internationally, distributors of chemicals in Europe.
CHEMINTER INC.,
100%, operating from Zurich, Switzerland, dealers in chemicals.
CHEMOTHAL LTD.,
100%,
POLCOM LTD., 100%,
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:
EMILIA COSMETICS
LTD., 100%, manufacturers, exporters and marketers of personal care products, cosmetics, toiletries and cleaning products,
EMILIA UNDEWRITING
LTD., 100%,
PALZIV EIN
HANATZIV ACS LTD., 25%,
MAXIMA AIR
SEPARATION LTD., 13.5%,
ALBANY BONDED
WAREHOUSES (1982) LTD., 100%.
Also hold 7.3% in
the TENE Investment Fund, which is holds shares (in several levels of
investments) in several industrial companies.
Oded Feller also
holds investment and holding companies, including O. FELLER HOLDINGS LTD., E.
FELLER & ASS. LTD., EFGO MANAGEMENT LTD. (both latter with Feller family),
as well as:
SUNORAMA TOURISM
SERVICES LTD., airline agents and tourist services.
Bank Hapoalim Ltd., Haifa Business Branch (No. 978), Haifa.
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 EMILIA
Group (see above OTHER COMPANIES). In October 2009 EMILIA completed the
acquisition of CARELINE from PERRIGO ISRAEL PHARMACEUTICALS for some NIS 180
million, including manufacturing and commercial activities, and real estate
assets (shortly after it EMILIA sold part of the commercial activities to 3rd
party for NIS 85 million).
Oded Feller is a
well-known businessman. Mr. Feller served as the President of the Haifa and
North of Israel Chamber of Industry and Trade since mid 2004.
In
February 2010 it was reported that solar energy systems company GREENTOPS will
install a 630kw Photo-Voltaic (PV) system in subject’s plant in Beer Tuvia (on the
plant’s roof), with an investment of NIS 10 million.
This is in the
framework of the new regulation by the government designed to encourage the use
of “clean” energies and incentives for solar Photo-Voltaic (PV) systems (small and medium-sized solar-power facilities up to
5mW), which allows individuals and
companies to generate their own electricity (“private electricity
production”) and get money from selling to THE ISRAEL ELECTRIC CORP. the unused
electricity produced.
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 (of which US$ 14
billion for export), comprising some 30% of Israel’s total industrial turnover.
Sales for export
by the Chemicals Manufacturing Industry in 2013 reached US$ 11,154.4 million,
17% increase from 2012.
According to Central Bureau of Statistics data, investments
in imported machinery & equipment from for the Chemical Industries (incl.
Pharmaceuticals, excl. oil refinery) in 2013 summed up to NIS 717.6 million,
similar to 2012 level (where 2012 witnessed a sharp decrease of over 20% from
2011, after over 50% increase in real terms in 2011).
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.60.38 |
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UK Pound |
1 |
Rs.101.63 |
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Euro |
1 |
Rs.83.57 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
MNL |
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.