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Report No. : |
317647 |
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Report Date : |
21.04.2015 |
IDENTIFICATION DETAILS
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Name : |
AROMOR FLAVORS AND FRAGRANCES LTD. |
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Formerly Known As : |
AROMOR CHEMICALS INDUSTRIES GIVAT OZ |
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Registered Office : |
Mobile Post Megido, Givat Oz 1922500 |
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Country : |
Israel |
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Date of Incorporation : |
02.07.1982 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, marketers and exporters of aroma
chemicals, specializing in raw materials, flavors and fragrances for the
food, detergent and cosmetics industries. |
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No. of Employees : |
6,200 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Israel |
B1 |
B1 |
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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. 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 2013, 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. Israel's economy also has weathered the Arab Spring because strong
trade ties outside the Middle East have insulated the economy from spillover
effects. Slowing demand domestically and internationally and reduced investment
due to uncertainties caused by the Gaza conflict in summer 2014 have reduced
GDP growth to about 2% during 2014. 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 expected to come online
no sooner than 2017, but production from Tamar provided a one percentage point
boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the
oligopolies to address some of the grievances but has maintained that it will
not engage in deficit spending to satisfy populist demands. 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 |
AROMOR FLAVORS AND FRAGRANCES LTD.
(Trading as: AROMOR F
& F LTD.)
Telephone 972 73 260 77 00/77
Fax 972 4 642 50 52
972 73 260 77 23
Email: mrkt@aromor.com
Mobile Post Megido
GIVAT OZ 1922500 ISRAEL
Originally established as a limited partnership under the name of AROMOR CHEMICALS
INDUSTRIES GIVAT OZ, registered as per file No. 55-000635-7 on the 02.07.1982.
As of the 01.01.1994, the partnership became a holding company and all its
industrial activities were transferred to subject, which was registered as a
private limited company as per file No. 51-189894-2 on the 22.12.1993, under
the name in caption.
Authorized share capital NIS 3,000,000.00, divided into -
2,999,999
ordinary shares (2,346,541 shares issued),
1 golden share (issued), all of NIS 1.00 each, of which shares amounting to
NIS 2,346,542.00 were issued.
Subject is fully owned by INTERNATIONAL FLAVORS &
FRAGRANCES INC. (IFF), of the USA, a public limited company traded on the New
York Stock Exchange (NYSE:IFF).
In January 2014 IFF acquired subject from its former
shareholders (Kibbutz Givat Oz – 50%, and private investors – 50%), for the
total sum of US$ 102.6 million.
1. Richard
A. O'Leary, CFO of IFF,
2. Jeroen
H.M. Van Noorden,
3. Robert
Gerard Anderson. All Directors are of Holland.
Ms. Keren Hazon.
Manufacturers, marketers and exporters of aroma
chemicals, specializing in raw materials, flavors and fragrances for the food,
detergent and cosmetics industries.
Some 98% of sales are exports, to Europe, Asia,
North and Latin America.
Among local suppliers: GADOT CHEMICALS,
DEPOTCHEM, HATAVOR TRANSPORT, PAZGAS, etc.
Operating from premises (offices, warehouse and
plant), owned by the Kibbutz Givat Oz, on an area of 10,000 sq. meters, in
Kibbutz Givat Oz, a locality in the Yzre'el Valley, at the Northern part of
Israel.
According to a report from January 2014, having 80
employees (same as in mid 2012).
Having 6,200 employees serving the IFF Group.
In January 2014 IFF paid US$ 102.6 million for subject.
Subject enjoys the financial stability of parent company IFF, whose B/S
indicators show (US$ millions):
31.12.2013 31.12.2014
Total assets 3,331.73 3,494.21
Equity 1,467.05 1,522.69
INTERNATIONAL FLAVORS & FRAGRANCES INC. current market value US$ 9.39
billion.
Stock is valued at NIS 22,000,000 in mid 2012 (was valued at NIS 20,000,000
in 2011 and 2010).
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives. In 2001, the Israeli Investment Center (IIC) approved a US$
704,000 investment plan for the expansion of subject’s plant.
There are 3 charges for unlimited amounts registered on the company’s
assets (financial assets, fixed assets, equipment and vehicles) in favor of Bank Leumi
Le'Israel Ltd. and leasing companies (last charge placed June
2012).
2009 sales claimed to be NIS 75,000,000, of which 97% for export. Subject
reported that it finished 2009 with a net profit of NIS 5,000,000.
2010 claimed to be NIS 85,000,000, of which 97% for export.
2011 claimed to be NIS 100,000,000, of which 98.8% for export.
Sales for the first 4 months of 2012 claimed to be NIS 38,000,000, of which
98% for export.
According to a report from January 2014, annual sales are US$ 65,000,000.
INTERNATIONAL FLAVORS & FRAGRANCES INC. revenues:
2013 sales were US$ 2,952,896,000, making a net profit of US$ 353,544,000.
2014 sales were US$ 3,088,533,000, making a net profit of US$ 414,543,000.
AROMOR FLAVORS AND FRAGRANCES INC., 100% subsidiary in New Jersey, USA,
marketers of subject's products in the USA.
INTERNATIONAL FLAVORS & FRAGRANCES INC., parent company, developers,
manufactures and marketers flavors and fragrances for the food, beverage,
personal care and household products industries. The company operates in two
business segments: Flavors and Fragrances. Having many subsidiaries.
The First International Bank of Israel Ltd., Afula
Branch (No. 111), Afula, account No. 211206.
A check with the Central Banks' database did not
reveal anything detrimental on subject’s a/m account.
Bank Hapoalim
Ltd., Afula Business Branch (No. 472), Afula.
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.
This is a veteran
business.
IFF is among the
leading companies in its field. According to a report from January 2015, subject
will operate it plant in Givat Oz for the next 15 years (and it will be not
transferred abroad).
Subject is ISO 9001 and ISO 14000 certified.
From the Ministry
of Economy publication, total estimated revenues of the local Chemical &
Oils Industrial branch in 2012 amounted to NIS 120 billion (comprising some 30%
of Israel’s total industrial turnover), divided into: Refinery, Petrol &
Petrochemicals - NIS 55 billion; Pharmaceuticals - NIS 32 billion; Sub-branches
– NIS 22 billion (incl. industrial chemicals, pesticides & disinfections
materials, and fertilizers); Others – NIS 11 billion (incl. paints, cosmetics,
cleaning materials and other chemistry products).
The revenues were
generated from some 115 plants in the branch.
Sales for export
by the Chemicals Manufacturing Industry in 2014 reached US$ 10,971 million,
representing 2.5% decrease from 2013, after in 2013 export witnessed 18%
increase from 2012.
According to
Central Bureau of Statistics data, investments in imported machinery &
equipment for the Chemical Industries (incl. pharmaceuticals, excl. oil
refinery) in 2013 summed up to NIS 717.6 million, similar to 2012 level (where
2012 saw a sharp decrease of over 20% from 2011, after over 50% increase in
real terms in 2011).
Notwithstanding
the lack of updated data from subject's officials, considered 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
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Indian Rupees |
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US Dollar |
1 |
Rs.62.56 |
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1 |
Rs.93.56 |
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Euro |
1 |
Rs.67.49 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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.