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Report Date : |
11.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
C.L.P. INDUSTRIES
LTD. |
|
|
|
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Formerly Known As : |
C.L.P. GAL
INDUSTRIES LTD |
|
|
|
|
Registered Office : |
Mobile Post Lachish
Tzafon Negba 7985600 |
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|
|
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Country : |
Israel |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.05.1991 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Manufacturers,
printers, marketers and exporters of packaging, including aluminum packaging,
sophisticated, flexible plastic packaging and packaging materials from multi
layer sheets. Products are targeted for the food and medical sectors |
|
|
|
|
No. of Employees |
940 |
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 |
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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
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
Source
: CIA |
C.L.P. INDUSTRIES LTD.
Telephone 972 8 679 03 00
Fax 972 8 675 40 61;
679 03 80
Email: iritu@clp.co.il
Mobile Post Lachish Tzafon
Negba 7985600 Israel
A private limited
company, incorporated as per file No. 51-157149-9 on the 21.05.1991, under the
name C.L.P. GAL INDUSTRIES LTD., which changed to the present name on the
14.06.1999.
Subject was
established in view of continuing all the business activities of a limited
partnership C.L.P. COATING LAMINATING AND POLYPROPHYLENE, established in 1973
by Kibbutz Negba and Kibbutz Sde Yoav, also continuing business activities
originally founded in 1971.
Authorized share capital
NIS 40,000,009.00, divided into -
40,000,009 ordinary
shares of NIS 1.00 each,
of which 35,000,009
shares amounting to NIS 35,000,009.00 were issued.
Subject is fully owned
by TADBIK-PACK LTD., owned by:
1. TADBIK LTD., 85.2%, controlled by: Ilan Drory (50.5%), and I. E. L. ISRAEL EQUITY LTD. (40.54%, owned (80%) by Mendl Bros. of the U.S.A. and (20%) by Moshe Wexler),
2. EFRAT G.M. LTD., 6%,
3. ORIGO Fund, 4.8% (via 2 funds: MANOF ORIGO 1 LIMITED PARTNERSHIP and MANOF ORIGO 2 LIMITED PARTNERSHIP), controlled and managed by CPA Gabi Trabelsi, Guy Vaadiya and Dave Gal,
4. Meron Greenberg, 4% (holds directly 1.2% of TADBIK LTD.).
In mid 1999
TADBIK-PACK acquired shares in subject from former shareholder, DELEK Group,
for NIS 17.1 million. During 2004, Kibbutz Negba acquired Kibbutz Sde Yoav
shares (15%) in subject. By June 2007 TADBIK-PACK completed a
transaction acquiring all Kibbutz Negba's
share (50%) in subject, in consideration of NIS 42.8 million.
In November 2011 ORIGO Leverage Fund invested NIS 10 million in exchange for 4.8% of TADBIK-PACK's shares (see more below).
In January 2014 TADBIK
sold 6% of TADBIK-PACK's shares to EFRAT
G.M. for NIS 4.6 million.
1. Ilan Drori, General Manager of
TADBIK Group,
2. Meron Greenberg,
3. Ms. Smadar Noy,
4. Eli Meiron,
5. Moshe Weksler.
Shaul Shelach.
Manufacturers,
printers, marketers and exporters of packaging, including aluminum packaging, sophisticated,
flexible plastic packaging and packaging materials from multi layer sheets.
Products are targeted for the food and medical sectors.
Also manufacturers of
plastic sheets, which serve as raw materials for NBC kits and for isolation and
shedding of structures and agriculture crops.
Around 60% of sales
are for export, to around 170 clients.
Sales are to leading
local and foreign companies, such as: OSEM, TNUVA, VERED HAGALIL, MATA, VITA,
TARA DAIRIES, STRAUSS-ELITE, AL-BAAD, ZAN LAKOL, SUNFROST, COCA COLA ISRAEL,
UNILEVER ISRAEL, J.M. PACKAGING, ZER HITECH, NESTLE, PEPSICO, WALCAN, etc.
Among suppliers:
PLASTO SAC, GADOT CHEMICALS, BLUE COLOR, etc.
Sole local
representatives of WOLF, of Germany.
Operating from rented
plant and offices, on an area of 25,300 sq. meters (on which 12,000 sq. meters
built) in Kibbutz Negba (which is also the registered address of subject).
Also operating from a
plant in Russia and from marketing offices in South Africa, Spain and the USA.
Also working with agents worldwide.
Having 335 employees
(had 290 employees in early 2012, which was before the acquisition of POLYON
BARKAI that took place in August 2012, including some 80 employees - see more
below).
Having 968 employees serving TADBIK Group (had 940 employees in mid 2013).
Subject's consolidated
B/S shows (last obtainable):
NIS
(thousands)
31.12.2010 31.12.2009
ASSETS
Current assets
Cash and cash equivalents 14,911 996
Customers 74,932 79,456
Other debtors 3,978 3,331
Stock 45,165 36,698
138,986 120,481
Non-current assets
Fixed assets 62,766 68,397
Financial and Intangible assets
777 791
63,543 69,188
202,529 189,669
======= =======
LIABILITIES
Current liabilities 115,301 93,574
Non-current
liabilities 30,027 43,121
Equity 57,201 52,974
202,529 189,669
======= =======
Stock was valued at
NIS 36,000,000 in February 2012.
Total assets attributed to the Flexible Packaging Segment in the 2012 annual financial statements of TADBIK LTD. (practically subject and its subsidiaries) were: NIS 271,028,000 (was NIS 264,772,000 on the 31.12.2012).
Subject is an “Approved Enterprise” and as such enjoys tax benefits and State
incentives. In August 2001 the Israeli investment Center (IIC) approved a
US$ 8.2 million investment plan to expand subject’s plant in Negba.
In February 2004, the
IIC approved a further US$ 2.4 million investment for the expansion of
subject’s plant.
In January 2008,
TADBIK raised NIS 55 million from institutional investors, in bonds issuance
through the Stock Exchange.
"Grandparent"
company TADBIK LTD. consolidated B/S shows (NIS thousands):
31.12.2012 31.12.2013 31.03.2014
Total assets 570,506 575,169 577,281
(of which current assets) 330,443 323,232 327,384
(of which fixed assets) 211,586 223,928 221,971
Equity 118,419 105,128 106,452
In October 2011 parent TADBIK LTD. signed an agreement with ORIGO Leverage Fund, in which ORIGO will provide subject NIS 10 million in exchange for 4.76% of TADBIK-PACK 's shares, plus a NIS 40 million loan and an option to increase stake by further 8.7%), reflecting a company value of NIS 210 million for TADBIK PACK. The deal was completed in November 2011.
In January 2014 TADBIK sold 6% of subsidiary TADBIK-PACK's shares according to a value of NIS 76.7 million.
There are 15 charges
for unlimited sums, as well as 2 charge for the sums of NIS 2,000,000 and US$
2,500,000 registered on the company’s assets (on equipment & machinery), in
favor of the State of Israel, Mercantile Discount Bank Ltd., Bank Hapoalim
Ltd., The First International Bank of Israel Ltd., Mizrahi Tefahot Bank Ltd.
and Bank Leumi Le’Israel Ltd. (last 3 charges placed in February-August 2013).
Subject’s
consolidated Statements of Income (last obtainable):
NIS
(thousands)
Year
ended December 31.12
2007 2008 2009
Sales 251,351 232,888 227,981
Gross profit 52,736 40,763 38,359
Operating income 16,383 4,988 5,938
Profit before taxes on income 11,810 1,075 1,739
Net income 9,107 1,081 1,729
======= ======= =======
From subject's CFO:
Subject's 2013 sales
were NIS 401,010,000, 60% of which for export.
Sales by the Flexible Packaging Segment in the financial statements of TADBIK LTD. (most attributed to subject and its subsidiaries, some of subject's sales are included in other segments):
2010 sales were NIS 270,200,000, making an operating profit of NIS 9,800,000.
2011 sales were NIS 314,375,000, making an operating profit of NIS 16,586,000.
2012 sales were NIS 353,265,000, making an operating profit of NIS 17,316,000.
2013 sales were NIS 372,360,000, making an operating profit of NIS 9,224,000.
Grand parent company TADBIK
LTD. consolidated results:
2012 sales were NIS 676,547,000, making an operating profit of NIS 38,625,000 and a net profit of NIS 20,792,000.
2013 sales were NIS 694,708,000, making an operating profit of NIS 12,135,000 ending with a net loss of NIS 6,662,000.
Sales for the first quarter of 2014 were NIS 181,168,000, making an operating profit of NIS 5,837,000 and net profit of NIS 1,716,000.
POLYNUM C.L.P
INSULATION LTD., 100%, insulation products for construction.
C.L.P. PACKAGING SOUTH
AFRICA (PTY) LTD., 100%, marketers of subject’s products in South Africa,
C.L.P. PACKAGING
SOLUTIONS INC., 100%, marketers of subject’s products in the U.S.A,
C. L. P. (RUSSIA)
LTD., 100%, holds:
C.L.P. PLASTUPAK LLC, 100%,
of Russia, manufacturers and marketers of packaging products,
IZASLAV LLC, 76.8%,
Russia, plastic sacks manufacturing.
TADBIK-PACK LTD., manufacturers,
marketers and exporters of packaging solutions, shrink sleeves and
in-mold/blow-mold labels, using rotary offset printing. Also holds:
TADBIK-PACK (SA) (Pty)
LTD., South Africa, 100%.
TADBIK-PACK ESPANA
S.L, 100%.
TADBIK LTD., directly and through its subsidiaries, operating in the packaging area, self-adhesive labels and automated adhesive machines for packaging industry. Also holds:
TADBIK ADVANCED
TECHNOLOGY LTD. (T.A.T.), 100%, investing in start-up companies in the
anti-fraud labeling field.
LOGOTECH INC. 100%,
New Jersey U.S.A., manufactures and pressure sensitive labels for the U.S.
market, as well as, labeling machines made in Israel.
TADBIK REAL ESTATE
LTD., 100%, Group’s real estate company.
TADBIK ADHESIVE &
MARKING SYSTEMS LTD., 100%, designs
and manufacture pressure sensitive and shrink sleeves labeling equipment.
TADBIK RUSSIA LTD., 60%, holds 100% of DECORPACK LTD. in
Russia (not yet active).
I. E. L. ISRAEL EQUITY LTD. (IEL), an investment group, also has holding in other Israeli companies, including 100% in PHOENICIA GLASS WORKS LTD., manufacturers, designers, exporters and marketers of glass bottles and other glass containers. Mendl family operates mainly through PARKWOOD, a family finance services company.
Bank Leumi Le’Israel
Ltd., Haifa Main Branch (No. 876), Haifa.
Mercantile Discount
Bank Ltd., Main Branch (No. 654), Tel Aviv.
Mizrahi Tefahot Bank
Ltd., Main Business Center Branch (No. 461), Tel Aviv.
In December 2013
subject's workers' union declared a work dispute in subject's plant (which may
lead to strikes), claiming that since they started negotiations with the
management on global working agreement, the union's seniors suffer from
economic harassments. Subject's management denies the accusations saying
negotiations are at the beginning of the way. On the 06.04.2014 a 24 hour
strike took place. Management operates to minimize the harm in the current
operations.
Apart from that,
nothing unfavorable learned.
Subject is veteran and among the leading local companies in their field.
TADBIK Group is a leading Group in the packaging field in Israel.
Subject is ISO 9002
certified.
Several years ago, we
received positive suppliers' opinions on subject.
In 2001 subject
established a subsidiary called C.L.P. PLASTUPAK, for manufacturing and
marketing subject’s products in Russia. TADBIK RUSSIA LTD. was established in
2006. The company fully owns DEKORPACK, for manufacturing packaging, stickers
and allied products and marketing in Russia.
Also, as part of the
Group’s global expansion policy, it established (50%, with a local partner) a
new plant in South Africa with € 5 million investment, which started
operations in October 2008.
In January 2010 parent company’s (TADBIK LTD.) shares ceased to be traded on the Tel Aviv Stock Exchange after failing to meet certain tradability rules of the Stock Exchange. On the 02.01.2014 TADBIK's bonds were redeemed and TADBIK was erased from the Tel Aviv Stock Exchange.
I.E.L is an investment firm, controlled by Moshe Wexler and by Mendl Bros, Jack, Joseph and Morton Mendl, of the USA. It has other investments in Israeli companies. Mendl family operates mainly through PARKWOOD, a family finance services company. The private capital of Morton Mendl is estimated at US$ 4-5 billion.
Since January 2011 there has been a conflict between TADBIK's shareholders I.E.L. ISRAEL EQUITY (which holds 40.54% of TADBIK LTD.) and majority shareholder Ilan Drori, including a lawsuit filed by I.E.L against TADBIK LTD. and Mr. Drori concerning the latter deprives I.E.L, as a minority shareholder, from their rights. The Court rejected some of the claims, the plaintiffs appealed and the matter is still pending.
In October 2011 TADBIK
LTD. and TADBIK-PACK signed an agreement with ORIGO "Manof"
(Leverage) Fund for the fund investing
NIS 50 million in TADBIK PACK, as described above, a transaction finalized in
November 2011.
ORIGO Manof Fund, managing NIS 1.3 billion, is part of the
Israeli Government scheme of joint State and institutional investors to assist
local industrial companies that carried debts from issuing bonds or other debts
arrangements, originally designed to face the consequences of the economic
crisis by providing non-banking credit, though later, as the market conditions
improved, diversified also to assist also debt not in forms of bonds.
It is estimated that
the investment by ORIGO is designed to improve TADBIK's Group ability to face
liquidity needs.
In January 2012 subject signed with the controlling shareholders of EXTRA PLASTIC LTD. (whose shares are publicly traded on TASE) an agreement to acquire all the sellers shares in EXTRA PLASTIC (42.3% of EXTRA's shares, plus convertible bonds), in consideration of paying the sellers debts to the banks on a sum not more than NIS 7.7 million. EXTRA, engaged in a similar area as subject, has been experiencing financial difficulties. In the end of March 2012 the sides announced the deal is off, due to disagreements.
In 2012 subject established POLYNUM C.L.P INSULATION.
In August 2012 subject completed the acquisition of the activities of POLYON BARKAI INDUSTRIES (1993) LTD. from Kibbutz Barkai and KATZIR Fund, in consideration of NIS 10 million plus NIS 4 million for the inventory. POLYON was incorporated in 1993, continuing partnership activities which were established by Kibbutz Barkai in 1971. The company operated as manufacturers and marketers of engineered polyethylene and polypropylene films and lids for the food and packaging industries, as well as insulation products for the construction branch.
POLYON encountered financial difficulties and entered freezing procedures in May 2012. The Court accepted subject's bid for POLYON's activities in June 2012. Subject committed to employ some 80 of POLYON's employees.
POLYON's current assets as of 31.12.2011 were NIS 40 million. Its 2011 sales were NIS 107 million, 50% of which for export.
The Society of Israel Plastic & Rubber Industry published data on the sector for 2011: The sector’s turnover (both local and for export) reached US$ 5,075 million. Sales breakdown: 30% of the Plastic & Rubber sector's sales are Household Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).
Sales for export by the Plastic and Rubber Industry in 2013 climbed by 7% from 2012 up to US$ 1,961 million, after it fell by some 3% in 2012 from 2011, returning to the growth trend in 2011 (by 15% from 2010).
According to the Central Bureau of Statistics, import of Plastic and Rubber raw material for the local industry in 2013 summed up to NIS 8,702.6 million, falling by 3.7% from 2012. In 2012 import rose by 6% from 2011, keeping the growth trend from 2010 and 2009, though in a well lower pace.
Investment in imported machinery and equipment by the Plastic & Rubber industries fell in 2013 by 20% from 2012, totaling NIS 383.5 million. This is after a decrease in 2012 by 4.5% from 2011, whereas investments rose in 2011 and in 2010.
Good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.26 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.80.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
NIS |
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.