MIRA INFORM REPORT
|
Report No. : |
313809 |
|
Report Date : |
28.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUGAT INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
16 Mcdoland Street Tel Binyamin Ramat Gan 5251428 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
10.02.1967. |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufactures,
exporters and marketers of sugar. Also importers, packers, exporters and marketers of other food commodities
(head rice, lentils, natural and organic foods, teabags, food preparations,
canned fruit, nuts, almonds, health products), as well as manufacturers 9via
subcontractor) of flour. |
|
|
|
|
No. of Employee : |
Not Available |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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
SUGAT INDUSTRIES
LTD.
Office:
Telephone 972 3 753 19 19
Fax 972 3 753 19 00
16 McDoland Street
Tel Binyamin
RAMAT GAN 5251428 ISRAEL
Plant:
Telephone 972 8 687 57 77
Fax 972 8 687 57 70
P.O. Box 55
(8210001)
5 Shvat Street
Industrial Zone
KIRYAT GAT 8202291 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-048146-8 on the 10.02.1967.
Originally
registered under the name of SUGAT PACKAGING LTD., which was changed to SUGAT
(1967) LTD. on the 30.07.1992, which changed to the present name on the
25.10.2006.
SHARE
CAPITAL
Authorized share
capital NIS 500.00, divided into: -
200,000 ordinary "A" shares of NIS
0.0001 each (issued),
480,000 ordinary "B" shares of NIS
0.001 each (450,001 share issued),
of which shares
amounting to NIS 470.001 were issued.
SHAREHOLDERS
Subject is fully
owned by CONSOLINVEST B.V., a fully owned subsidiary of E.D. & F. MANN
LTD., of London, England.
DIRECTORS
1. Jill Michel Gamone, General Manager,
2. Ofer Kalai,
3. Adiel Mizrahi,
4. Yiftach Weinstein,
5. Massimiliano Bonezo,
6. Christopher Dumas.
BUSINESS
Manufactures,
exporters and marketers of sugar.
Also importers, packers,
exporters and marketers of other food commodities (head rice, lentils, natural
and organic foods, teabags, food preparations, canned fruit, nuts, almonds,
health products), as well as manufacturers 9via subcontractor) of flour.
During 2010
subject started to manufacture and market flour.
Export is mainly
of sugar, rice and lentils.
In July 2014 subject started catering the institutional market (hotels,
restaurants, etc.)
Local sales are mainly to all local marketing chains, among them
SHUFERSAL, MEGA BOOL, TIV TAAM, RAMI LEVI HASHIKMA MARK., and many more, as
well as the Chains' private label.
Among suppliers: RONOPOLIDAN, HAMAMA, etc.
Operating from a large owned plant (some 100,000 sq. meters), in 5 Shvat
Street, the Industrial Zone, Kiryat Gat, and SUGAT headquarters offices,
rented, in 16 McDonald Street, Ramat Gan.
Having some 300 employees serving SUGAT Group.
MEANS
Investments in subsidiary's refinery plant were estimated (during 2007)
at
NIS 250 million.
In November 2009 it was reported that
subject purchased a plot of 18,000 sq. meters to enlarge its plant in Kiryat
Gat, investing NIS 10 million.
According to a report in December 2009, Group's digital advertising
budget is NIS 2 million.
Other financial data not forthcoming.
There no charges registered on the company's assets.
REVENUES
Sales figures were
not disclosed, as part of Group's policy, figures below are based on media
reports, consolidated for the Group:
2008 consolidated
sales were over US$ 100 million.
2010 consolidated
sales were over US$ 200 million, of which 10% were for export.
According to a
report from June 2012 consolidated annual sales are NIS 1,000 million.
According to a
report from August 2013 consolidated annual sales exceed NIS 1,500
million.
According to a
report from July 2014 consolidated annual sales are NIS 1,500 million.
According to the report, 65% of revenues are from sales of sugar to the
industry.
OTHER
COMPANIES
SUGAT SUGER REFINERIES
LTD., 100%, a sugar refining plant (from raw to white sugar), designed to
produce 350 tons of sugar per annum.
SUGAT
INTERNATIONAL LTD.
BANKERS
Mizrahi Tefahot
Bank Ltd., Kikar Hamedina Branch (No. 410), Tel Aviv, account No. 523944.
A check with the
Central Banks’ database did not reveal anything detrimental on subject’s a/m
account.
Bank Hapoalim
Ltd., branch data not forthcoming.
CHARACTER
AND REPUTATION
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.
Subject is a
veteran leading company in the sugar field in Israel, as well as in other
commodities.
According to a
report from June 2014, subject holds 99.5% of the sugar (including private
brands), 65% of rice, and 50% of lentils sales in the marketing chains.
SUGAT is part of
the ED&F MANN concern, established in
Subject is ISO
9002 certified.
Subject used to
refine sugar itself but activities were stopped in the beginning of the 1980's due
to uneconomical motives and imports from Europe initiated.
After the EU,
largest refined sugar exporter, lost in the WTO lawsuit for subsidizing refined
sugar in Europe several years ago, subject decided to re-establish the refining
plant, realizing it will become competitive.
In June 2009 it
was reported that subject will start marketing 9 types of nuts and seeds,
investing NIS 1 million, and a variety of salts, investing NIS 2 million.
In January 2010 it was reported that subject will export 100 tons of
sugar to Morocco (valued at US$ 80,000).
In December 2010
it was reported that subject is making a massive entrance to the considered
highly profitable flour market, and will launch a line of 8 types of flour with
vitamins. According to the report, subject faced an obstacle in form of an
injunction issued by the court based on the request of a local flour
manufacturer ISRAELI FLOUR MILLS which binds subject to purchase flour only
from ISRAELI FLOUR MILLS.
The local flour
market According to Nilsen survey in 2010 was valued at NIS 137.3 million.
In March 2011 it
was reported that DOR ALON is erecting a natural gas based power plant which
will supply subject's plant electricity needs (some 4 – 5 MV per year, out of
110MW that will be produced in the new power plant).
In May 2011 it was
reported that subject will export some 15 thousand tons of sugar to Europe,
valued at US$ 12 million (mainly to Italy, Spain, Switzerland and Holland).
Subject's General Manager informed that subject is negotiating the export of
sugar to several other European countries (including Germany and Greece), which
may increase subject's export to US$ 100 million.
In the end of 2011
David Franklin who served as Chairman and General Manager, resigned his
position, after being in SUGAT for 23 years. He will continue to serve Group as
a local consultant for Group as well as for ED&F MANN.
In June 2012 it was reported that subject is entering the organic food
market, and will market organic lentils. Subject will invest NIS 500,000 in
development of products, and will also market organic sugar.
In August 2012 it was reported that subject is launching rice spicing
blends, investing NIS 350,000 in the development of products.
Since 2012, as part of subject's expansion
move, it (referring to SUGAT INDUSTRIES) started marketing various 13 flour
products, specialized for different baking uses (manufacturing is via
subcontractor STYBEL).
In August 2012 it was reported on entering
the baked wheat flakes market (valued at NIS 66.3 million), intending to reach
15% market share in the first year. In February 2014 it was reported that
subject holds 11.4% of market share (which increases by 20% is sales value
since subject's entrance) valued at NIS 72.6 million.
In November 2013 it was reported on
launching baking products (cake mixtures, sugar dough, etc.), as well as bread
crumbs, spice and seasoning mixtures, investing NIS 1.5 million.
In June 2014 as part of subject's entering the institutional market, it acquired
the activities of SIGMA GRAINS in the field of import and marketing raw
materials for the institutional market.
Also in June 2014 Group's plant was connected to the natural gas grid,
which will lower production costs.
Average white
sugar consumption (in Israel and Palestinian Authority) is estimated at 500,000
tons per annum. According to a report from January 2010, the sugar market is
valued at US$ 350 million, of which subject has (as of 2009) a 77% market
share.
According to survey from 2013, the local food market, manufacturing, import
and trade, rolls NIS 80 billion per annum. There are some 1,700 food plants in
Israel (some also import) and hundreds of importers in the food, beverage and
consumer products, supplying raw materials and finished goods to the food
market.
According to StoreNext Market
Research survey, in 2014 sales in the FMCG bar-coded market noted 1.7% decrease
in terms of price (despite the decrease in the prices index), representing a
reverse in the rise trend in the last 3 years. The decrease in the quantity
aspect was milder – by 0.6%.
Food products sale witnessed 1.5% drop in
money terms and totaled NIS 29.09 billion, coping with slight quantity decrease
of 0.4%.
The volume of FMCG bar-coded market totaled
NIS 38.94 billion in 2014, and was divided into: 75% for food, 11% for
beverages (-2.7% in money summing up at NIS 4.24 billion, -2.8% in quantity),
and 7% for personal care goods (-3.8% in money summing up at NIS 2.72 billion,
-1.7% in quantity), and 7% for home care goods (-1% summing up at NIS 2.88
billion, though rose 1.4% in quantity).
Sales for exports by
the food products & beverages industries grew by 2.2% in 2013 from 2012,
with sales reaching US$ 1,080 million (in $ terms, though fell 4.2% in NIS
terms), after remaining stagnant in 2012 and 17% rise in export in 2011. A
slight 1.5% rise in export was noted in the first 7 months of 2014, compared to
the parallel period in 2013.
According
to Central Bureau of Statistics (CBS), import of food and
beverages to Israel in 2014 reached NIS 7,687 million, an impressive rise by
10.7% from 2013, continuing the upward growth trend in the last years (0.7% in
2013, 14% in 2012).
Local food industry employs directly 62,000 workers in some 1,550 plants,
72% of which are considered small plants (with sales of up to NIS 10 million).
According to Central Bureau of Statistics (CBS) data,
investments in machinery & equipment from import for the food industry in
2013 fell 16.5% from 2012 and summed up to NIS 460.6 million (after 21.5%
decrease in 2012 and 61% increase in 2011), while investments in machinery
& equipment from import for the beverage & tobacco industries fell also
by 16.5% in 2013 to NIS 159.8 million (after 2.2% rise in 2012 and 4.7% fall in
2011).
The
Central Bureau of Statistics data shows that import of raw food
products to Israel in 2013 summed up to NIS 8,172.2 million, 4.4% down from
2013 (in NIS terms, fell 3.2% in $ terms). That continues the downwards trend
from 2013 and 2012 when it fell by 6.4% and 2.7%, respectively, whereas in both
2011 & 2010 import rose by around 20% each year. Over 50% of import is from
the EU.
From the CBS
preliminary National Accounts for 2014 on private consumption expenditure, it turns
that the current local households expenditure grew by 3.9% from 2013, after
rising by 3.3% in 2013 and by 3.2% in 2012. Expenditure on Food, Beverage & Tobacco increased in 2014
by 2.7% (after 3.7% rise in 2013, 3.2% in 2012).
SUMMARY
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Maximum unsecured
credit recommended several US$ millions.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.61 |
|
|
1 |
Rs.92.95 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.