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Report No. : |
350056 |
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Report Date : |
18.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
C.L.P. INDUSTRIES
LTD. |
|
|
|
|
Formerly Known As : |
C.L.P. GAL INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
Mobile Post Lachish Tzafon, Negba 7985600 |
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Country : |
Israel |
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|
|
|
Financials (as on) : |
31.12.2010 |
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|
|
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Date of Incorporation : |
21.05.1991 |
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|
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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. |
|
|
|
|
No. of Employees : |
948 (TADBIK 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 |
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|
|
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Payment Behaviour : |
No Complaints |
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|
|
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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, 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 |
CLP TADBIK GROUP
Correct Name: 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 by
Mendl Bros. of the U.S.A.,
2. 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,
3. Meron Greenberg, 10% (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.
TADBIK LTD. shares were traded on the Tel Aviv Stock Exchange (TASE)
(traded in the preservation list since 2008), and
were de-listed from trade at the end of January 2010. Bonds are still traded on
TASE.
1. Ilan
Drori, General Manager of TADBIK Group,
2. Meron Greenberg, Chairman of
TADBIK-PACK
3. Ms.
Smadar Noy,
4. Eli
Meiron,
5. Gavriel
Rubin.
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.
Subject is part of TADBIK's Flexible Packaging Segment.
54% of 2014 sales of TADBIK Flexible Packaging Segment were for export.
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).
Note: "Kibbutz" is a typical local cooperative agricultural
settlement/ village.
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 as of mid 2014 (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 948 employees serving TADBIK Group as of mid 2015 (same as in the
end of 2014, had 968 employees as of end of 2013), of which 825 employees in
Israel.
Note: number of employees expected to increase by some 40 employees, following
the acquisition of EXTRA PLASTIC (see more CHARACTER).
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 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
======= =======
Total assets
attributed to the Flexible Packaging Segment in the 2014 annual financial statements
of TADBIK LTD. (practically subject and its subsidiaries) were: NIS 278,066,000
(was NIS 271,028,000 on the 31.12.2013).
Liabilities: NIS
96,707,000 (NIS 101,477,000 as of 31.12.2013).
Subject is an “Approved Enterprise” and as such
enjoys tax benefits and State incentives. In 2001 and in 2004 the Israeli
investment Center (IIC) approved US$ 8.2 million and US$ 2.4 million investment
plans, respectively, for the expansion of subject’s plant in Negba.
Subject's stock was valued at NIS 36,000,000 in
February 2012.
Financial data is included in the consolidated statement of parent
company, TADBIK LTD., which shows:
NIS
(thousands)
31.12.2014 30.06.2015
ASSETS
Current assets
Cash
and cash equivalents 12,576 10,441
Customers 164,252 156,090
Other
debtors 11,679 13,833
Stock 126,114 135,036
314,621 315,400
Non-current assets
Fixed assets 219,912 222,347
Goodwill and intangible assets 17,264 16,452
Other assets 12,164 14,996
249,340 253,795
563,961 569,195
======= =======
LIABILITIES
Current liabilities 310,228 313,384
Non-current liabilities 144,324 140,085
Equity 109,409 115,726
563,961 569,195
======= =======
In November 2011 a transaction was completed
between TADBIK LTD. and ORIGO Leverage Fund, in which ORIGO will provide
subject NIS 10 million in exchange for 4.76% of TADBIK-PACK 's shares, plus 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.
There are 16 charges for unlimited sums, as well
as 3 charges for the sums of NIS 2,000,000, US$ 2,500,000 and € 1,251,180 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 2 charges placed in
August-November 2014).
From subject’s consolidated Statements of Income (last
obtainable):
2008 sales were NIS 232,888,000, making a gross profit of NIS 40,763,000, an operating income of NIS 4,988,000, and net
income of NIS 1,081,000.
2009 sales were NIS 227,981,000, making a gross profit of NIS 38,359,000, an operating income of NIS 5,938,000, and net
income of NIS 1,729,000.
From subject's CFO:
Subject's 2013 sales were NIS 401,010,000, 60% of which were 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):
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.
2014 sales were
NIS 374,636,000, making an operating profit of NIS 17,656,000.
TADBIK
LTD.
Consolidated
Statements of Income
NIS
(thousands)
Year
ended December 31.12
2012 2013 2014
Sales 676,547 694,708 711,863
Gross profit 124,946 113,118 131,106
Operating income 38,657 12,135 21,176
Profit (loss) before tax on income 20,468 (3,148) 4,949
Net income 20,824 (6,662) 4,109
====== ====== ======
TADBIK LTD. consolidated sales for the first 6
months of 2015 were
NIS 371,298,000 (4% increase compared top parallel period in 2014), making a gross
profit of NIS 75,696,000, an operating profit of NIS 17,033,000 and net profit
of NIS 6,621,000.
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%, marketing
Group’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.
EXTRA PLASTIC LTD., 100%, manufacturers of
plastic packaging products.
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.
TADBIK NJ INC. (formerly LOGOTECH INC.), 100%, U.S.A., manufacturers of
pressure sensitive labels for the US market,
TADBIK REAL ESTATE LTD., 100%, Group’s real estate company.
TADBIK ADHESIVE & MARKING SYSTEMS LTD., 100%, design and manufacture pressure sensitive and shrink sleeves labeling
equipment.
TADBIK RUSSIA LTD., 60%, holds 100% of DECORPACK LTD. in Russia,
inactive.
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.
Nothing unfavorable learned.
In December 2013 subject's workers' union declared
a work dispute (one day in April 2014 took a 24-hour strike), claiming that
since they started negotiations with the management on global working
agreement, the union's seniors suffer from economic harassments. Subject's
management denied the accusations, adding they operates to minimize the harm in
the current operations. Since then, we did not find further news on the matter,
so we assume it has been resolved.
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.
I.E.L is an investment firm, owned 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.
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.
In 2012 subject established POLYNUM C.L.P INSULATION.
In August 2013 TADBIK's subsidiary completed the acquisition of
activities of South African company of decoration
labeling for NIS 5 million.
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.
On the 25.05.2015 TADBIK reported that
subject and parent company TADBIK-PACK won the tender to
acquire EXTRA PLASTIC LTD. (manufacturers,
marketers and exporters of plastic packaging products) from the Receiver,
following EXTRA PLASTIC's
financial collapse (an attempt to acquire EXTRA PLASTIC in 2012 by subject failed). The acquisition is for
the total sum of NIS 24.2 million (including activities, stock and property).
Deal was completed in August 2015.
EXTRA PLASTIC LTD. is a veteran company
(established 1941, incorporated 1960), whose shares were traded on the TASE
(suspended since May 2015, following not publishing annual 2014 statements).
In November 2015 TADBIK reported that its
subsidiary signed a MOU with a company in Belarus to establish a company (in which
Group will hold 51%), which will manufacture and marketer plastic sleeves in
Belarus and Russian Federation.
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 6%
from 2013 up to US$ 2,086 million, continuing the upward trend from 2013 (rose
7.6% from 2012, after it fell by some 3% in 2012 from 2011). The export
witnessed a reverse trend in the first 5 months of 2015 with 7.8% decrease
compared to the parallel period in 2014.
According to the
CBS, import of Plastic and Rubber raw material for the local industry in 2014
summed up to US$ 2,518 million, up 4.5% from 2013 (in $ terms, rose by 2.7% in
2013 from 2012). Yet, a 17% decrease in import was marked in the first 5 months
of 2015 compared to the parallel period in 2014.
Plastic &
rubber raw materials consumption by the local industry is of around 1 million
tons, 70% of which derives from import, the rest from local production (which
is comprised mainly of simple raw materials).
Investment in imported machinery and equipment by the Plastic &
Rubber industries rose in 2014 by 5.5% from 2013, totaling NIS 410.4 million.
This is after a decrease in 2013 by 18% from 2012.
Good for trade
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.98 |
|
|
1 |
Rs.100.11 |
|
Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.