MIRA INFORM REPORT

 

 

Report No. :

348583

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

POLYRAM RAM-ON INDUSTRIES LIMITED PARTNERSHIP

 

 

Registered Office :

Mobile Post Gilboa Ram-On 1920500

 

 

Country :

Israel

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

23.02.1986

 

 

Legal Form :

Limited partnership

 

 

Line of Business :

Developers, manufacturers, marketers and exporters of engineering thermoplastic compounds for the automotive (main client sector) irrigation, electrical and electronic sectors, as well as for D.I.Y, infrastructure and construction industries.

 

 

No. of Employees :

160 employees in POLYRAM Group.

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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

 

Company name and address

                                                                                                     

POLYRAM RAM-ON INDUSTRIES LIMITED PARTNERSHIP

Telephone    972 4 649 99 00

Fax             972 4 649 97 63

E-mail:        sales@polyram.co.il

Mobile Post Gilboa

RAM-ON 1920500 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A limited partnership, established on the 23.02.1986, registered as per file


No. 55-000832-0.

 

 

PARTNERS

 

1.    RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD. (formerly POLYRAM (1999) LTD.), 99.9%, a public limited company whose shares are traded on the Tel Aviv Stock Exchange, controlled by Moshav Ram-On (17.7%), a cooperative agricultural cooperative settlement (known as "Moshav"), and by several members of the Moshav,

2.    RAM-ON PLASTIC INDUSTRIES LTD., 0.1%, being the general partner.

 

 

MANAGEMENT

 

1.    Joseph Bitan, Chairman of RAM-ON INVESTMENTS,

2.    Amit Regev, General Manager, also GM of RAM-ON INVESTMENTS.

 

 

BUSINESS

 

A holding company, with no commercial activities.

Were developers, manufacturers, marketers and exporters of engineering thermoplastic compounds for the automotive (main client sector) irrigation, electrical and electronic sectors, as well as for D.I.Y, infrastructure and construction industries.

On the 01.07.2015, as part of the entrance of FIMI Fund as an investor in POLYRAM Group, all of subject's commercial and industrial activities were transferred to newly established POLYRAM PLASTIC INDUSTRIES LTD., in which subject holds 35%.

Note: subject may still have "leftovers" from previous commercial activities, which will be completed in the near future.

 

Operating from premises, owned by Moshav Ram-On (offices, plant, logistics center), on a total area of 37,209 sq. meters (of which 17,000 sq. meters are built), in Ram-On Village (“Moshav Ram-On”, where “moshav” is a local typical village, in particular a type of cooperative agricultural community of individual farms).

                                                                                                                            

There are some 160 employees in POLYRAM Group.

 

 

MEANS

 

In August 2004 parent company listed its shares for trading on the Tel Aviv Stock Exchange, raising a sum of NIS 29.6 million.

 

Parent RAM-ON INVESTMENTS current market value US$ 102.3 million.

 

Subject is an “Approved Enterprise” and as such receives State benefits.

In June 1998 the Israeli Investment Center (IIC) approved a US$ 600,000 expansion plan for subject’s plant. In June 1999, another US$ 2.6 million investment plan was approved by IIC for further expansion of the plant.

 

Financial data is included in the consolidated B/S of parent company, RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD., which shows:

 

                                                                                      NIS (thousands)

                                                                             31.12.2014             30.06.2015

ASSETS

Current assets

     Cash and cash equivalents                                        12,522                           30

     Customers                                                              103,104                             -

     Other accounts receivable and assets                        18,747                           75

     Assets for sale                                                                  -                   323,682

     Stock                                                                      134,661                             -

                                                                                   269,034                   323,787

 

Non-current assets

     Fixed assets, net                                                       48,513                    11,757

     Other non-current assets                                              3,004                             -

                                                                                     51,517                    11,757

                                                                                   320,551                   335,544

                                                                                 =======                =======

 

LIABILITIES

Current liabilities                                                           136,805                   172,178

Non-current liabilities                                                      33,607                      4,462

Equity                                                                          150,139                   158,904

                                                                                   320,551                   335,544

                                                                                 =======                =======

 

The significant change is due to the transfer of subject's activities (which was RAM-ON INVESTMENTS chief holding) to its 35% subsidiary POLYRAM PLASTIC INDUSTRIES

REVENUES

 

Subject ended 2010 with a net profit of NIS 32,420,000.

Subject ended 2011 with a net profit of NIS 32,216,000.

Subject ended 2012 with a net profit of NIS 36,237,000.

Subject ended 2013 with a net profit of NIS 34,421,000.

Subject ended 2014 with similar profit as in 2013.

 

                                           RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD.

                                                                    Consolidated Statement of Income

                                                                                    NIS (thousands)

                                                                                    Year ended 31.12

                                                                           2012                2013              2014

Sales                                                                368,882            379,186          415,895

 

Gross profit                                                        63,098              70,759           85,060

 

Operating income                                                35,895              38,385           48,249

 

Profits before income tax                                    35,743              38,053           48,145

 

Net income                                                          32,012              28,170           41,005

                                                                      =======         =======       =======

 

 

RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD. consolidated revenues for the first 6 months of 2015 were NIS 298,000, making a gross loss of

NIS 298,000, an operating loss of NIS 767,000, and a net income of

NIS 23,634,000 (profit from ceased activities – subject's – were NIS 23,445,000).

 

 

OTHER COMPANIES

 

RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD., parent company, it subsidiaries (fully owned unless otherwise stated):

POLYRAM PLASTIC INDUSTRIES LTD., 35% (via subject), assumed all of subject's commercial and industrial activities.

POLYRAM FRANCE, 55%, France,

POLYRAM U.K. LTD., U.K.,

RAM-ON PLASTIC INDUSTRIES LTD.,

                                                                                                                            

RAM ON BUILDINGS (LIMITED PARTNERSHIP),

RAM-ON INDUSTRIAL BUILDING (1983) LTD.,

RAM-ON BUILDINGS (2004) LTD. (78% are held by RAM-ON INVESTMENTS, the rest held by Moshav Ram-On),

POLYRAM USA, 51%, USA,

POLYRAM TANJIN, China.

BANKERS

 

The First International Bank of Israel Ltd., Afula Branch (No. 111), Afula,

account No. 209619.

Bank Leumi Le'Israel Ltd., Hadera Business Branch (No. 639), Hadera, account No. 103000/07.

A check with the Central Banks’ database did not reveal negative information on subject’s a/m accounts.

 

Bank Hapoalim Ltd., Afula Business Branch (No. 472), Afula.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

In April 2015, FIMI FUND acquired from RAM-ON INVESTMENTS 65% of subject's activities (apart from RAM-ON INVESTMENTS's real estate assets) in consideration of NIS 347 million. The acquired activities were transferred to a new established company (May 2015) POLYRAM PLASTIC INDUSTRIES, in which subject holds 35%, and subject become a holding company with no commercial activities.

 

Founded in 1997, FIMI Fund (mainly via 5 funds) is a leading local private equity investment fund (mezzanine and buy-out fund), headed by its founder and CEO Ishay Davidi (other senior partners are Sam Vlodinger and Eldad Ben-Moshe). Having a successful track record of 78 major transactions (48 cash exits) and manages over US$ 2 billion in assets.

 

POLYRAM is ISO/TS 16949:2002 certified, as well as meeting other international quality standards such as NSF Standard.

 

Moshav Ram-On, was established in 1953 in Nurit settlement which changed location to present one in 1960, has 340 members and also engaged in agriculture and other farming activities.

 

In April 2008, subject's parent company signed agreements with MEMOLEX of France, a veteran distributor of subject's products in France, for the establishment of a joint company called POLYRAM FRANCE (55% POLYRAM and 45% MEMOLEX), that will take over the distribution operations, as well as other products, in France and other European countries. POLYRAM will invest € 22 million in the share capital of the new company, plus around € 1 million as owners' loan.

 

In August 2008, subject received the permission to use the patent of American EASTMAN, large chemicals and polymers manufacturer.

 

In August 2012 RAM-ON INVESTMENTS reported on the establishment of a joint venture to distribute Group's products (POLYRAM USA), with MAROON INC., one of its US distributors, in which POLYRAM will hold 51%.

 

Subject's products received the approval of several auto companies, among them RENAULT, NISSAN, GENERAL MOTORS, OPEL, and more.

 

POLYRAM PLASTIC INDUSTRIES is among the global leading and innovating companies in the coupling agents with the "Bondyram" line.

 

 

SUMMARY

 

In principle, subject is good for trade engagements. However, having no commercial activities, dealings are recommended with POLYRAM PLASTIC INDUSTRIES LTD. registration No. 51-525159-3.

 

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.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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