MIRA INFORM REPORT

 

 

Report No. :

309544

Report Date :

26.02.2015

 

IDENTIFICATION DETAILS

 

Name :

K.B. RECYCLING INDUSTRIES LTD

 

 

Registered Office :

P.O. Box 704 (1171502), 3 Ha'avoda Street, Industrial Zone, Beit She'an 1171703

 

 

Country :

Israel

 

 

Date of Incorporation :

22.01.2008

 

 

Com. Reg. No.:

51-409002-6

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a plastic recycling plant using plastic waste to produce raw materials for the plastic industry (bags, molding)

 

 

No. of Employee :

55

           

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 :

Exist

 

 

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

 

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. 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

 

 

Company name and address

                                                                                                  

K.B. RECYCLING INDUSTRIES LTD.

             

              Telephone           972 4 648 14 44

              Fax                     972 4 981 10 19

              Email:                 Zohar.sukenik@kb-recycling.com

              P.O. Box 704 (1171502)

              3 Ha'avoda Street

              Industrial Zone

              BEIT SHE'AN           1171703         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-409002-6 on the 22.01.2008.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 2,000,000.00, divided into -

            2,000,000 ordinary shares of NIS 1.00 each,

of which 573,200 shares amounting to NIS 573,200.00 were issued.

 

 

SHAREHOLDERS

 

1.    GANDYR INVESTMENTS LTD., 37%, owned by Ms. Yehudit Racanati and family,

2.    SULAM HOLDINGS L.R. LTD., 37%, owned by Lenny Recanati,

3.    Miron Mann, 25%, a member of the Racanati family,

4.    Asher Crystal, Shlomo Crystal and Amihai Krupic, hold the remaining 1%.

 

In June 2012 Asher Crystal, Shlomo Crystal and Amihai Krupic (who founded subject and were its shareholders) sold their holdings to Racanati family.

 

 

DIRECTOR

 

1.    Asher Crystal,

2.    Yonatan Ironi,

3.    Haim Dvir,

4.    Lion (Lenny) Recanati,

5.    Miron Mann,

6.    Tal Recanati.

 

 

GENERAL MANAGER

 

Guy Crystal.

 

 

BUSINESS

 

A plastic recycling plant using plastic waste to produce raw materials for the plastic industry (bags, molding).

Operating 5 recycling plants.

40%-50% of sales are for export (including to India).

 

Among clientele: NETAFIM, NAANDANJAIN IRRIGATION, POLYTIV, KETER PLASTIC, GENIGAR PLASTIC PRODUCTS, and more.

 

Operating from premises (office and plant), on an area of 7,000 sq. meters, in 3 Ha'avoda Street, Industrial Zone, Beit She'an, and from additional plants (each on an area of ~ 3,000 sq. meters) in Idan, Tzofar, Emek Hefer and Beit Shean.

 

Having 55 employees.

 

 

MEANS

 

Financial data not forthcoming.

 

Subject is an “Approved Enterprise” and as such entitled for State support, grants and tax relief.

In June 2009 the Israeli Investment Centre (IIC) approved NIS 500,000 investment plan for the expansion of subject’s plant in Beit Shean.

 

There are 10 charges for unlimited amounts, as well as 2 charges fir the total sum of NIS 3,400,000 registered on the company's assets (financial assets, fixed assets and equipment), in favor of The State of Israel, Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd. and companies (last charge placed October 2014).

 

 


REVENUES

 

2013 sales claimed to be NIS 30,000,000, 40%-50% were for export.

2014 sales claimed to be NIS 30,000,000, 40%-50% were for export.

 

 

OTHER COMPANIES

 

SULAM FINANCIAL HOLDINGS LTD., owned by Lenny Recanati, holds 17% (based on 2013) in ELCON RECYCLING CENTER (2003) LTD., engaged in industrial wastewater treatment, specializing in highly polluted aqueous hazardous wastes (patented technology), mainly in the chemical and pharmaceutical markets.

Lenny Recanati and Recanati family has holdings and investments in many companies and assets – see also below.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Beit She'an Branch (No. 439), Beit She'an.

Israel Discount Bank Ltd., Poleg Netanya Branch (No. 526), Netanya.

 

 

CHARACTER AND REPUTATION

 

Currently there is a legal dispute between subject and Beit Shean Municipality, where the Municipality has filed a suit against subject for operating without proper licensing. Matter is currently pending in the Beit She'an Magistrate Court.

 

Apart from that, nothing unfavorable learned.

 

Subject is among the leading companies in its field in Israel.

 

Lenny Recanati is a well-known businessman of the notorious wealthy Racanati family, who used to control Israel Discount Bank Ltd., the 3rd largest bank in Israel until the early 2000's.

Mr. Lenny Recanati has holdings –via his investment arm SULAM in several other companies, in the Hi-Tech, finance and real estate, as well as in RECANATI WINERY, a local well-known premium winery.

 

Mr. Meron Mann headed the Europe operation of Israeli-based giant pharmaceuticals company TEVA PHARMACEUTICAL INDUSTRIES LTD. and has holdings in several companies including EQUASHIELD MEDICAL LTD. (30%, a bio-med firm), in PLASTMED LTD. and in E.M.C.L ENGINEERING AND MARKETING CO. LTD.

 

According to a market research firm published in mid 2014 (ordered by the Ministry of Economy), total revenues of the local Plastic & Rubber Industry reached US$ 5 billion (return to the levels in 2007, prior to the global economic crisis, when revenues fell and started to climb back since 2010), half of which was for export (which is comprise US$ 2.3 billion from goods, the rest from raw products). Sales breakdown: 30% of the branch's sales are for the Household, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).

There were 23,700 workers employed in the Plastic & Rubber branch in 2013.

 

According to the Central Bureau of Statistics (CBS), sales for export from the manufacturing of Plastic and Rubber products in 2014 climbed by 5.6% from 2013 up to US$ 2,078.5 million, continuing the upward trend from 2013 (rose 7.6% from 2012, after it fell by some 3% in 2012 from 2011).

 

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.

 

 

SUMMARY

 

Good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.04

UK Pound

1

Rs.96.02

Euro

1

Rs.70.42

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ASH

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.