MIRA INFORM REPORT

 

 

Report No. :

349576

Report Date :

18.11.2015

 

IDENTIFICATION DETAILS

 

Name :

ELCAM MEDICAL A.C.A.L.

 

 

Registered Office :

M.P. Merom Hagalil, Baram 1386000

 

 

Country :

Israel

 

 

Date of Incorporation :

03.01.1979

 

 

Legal Form :

Limited Partnership

 

 

Line of Business :

Developers, manufacturers, exporters and marketers of precision injection-molded disposable medical devices (standard stopcock, High Pressure Stopcocks, High Flow (large bore) stopcocks, custom made stopcocks, manifold, needle-less), as well as providers of innovative solutions for specialized flow control needs.

 

 

No. of Employees :

450

 

 

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

 

ELCAM MEDICAL A.C.A.L.

                   ("A.C.A.L." stands for Agricultural Cooperative Association Ltd.;

                   Also known as ELCAM MEDICAL ACS LTD., or ELCAM ISRAEL*)

                   Telephone           972 4 698 81 20 /81 50

                   Fax                     972 4 698 07 77

                   Email:                  sales@elcam.co.il

                   M.P. Merom Hagalil

                   BARAM 1386000 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a limited partnership, incorporated as per file No. 55-000442-8 on 03.01.1979, under the name ELCAM PLASTICS KIBBUTZ BARAM.

 

This partnership continues activities of a former limited partnership established in 1973 and originally founded as a department in Kibbutz Baram in 1970.

 

On the 01.01.2001 all business activities were assumed by subject, an Agricultural Cooperative Society (ACS), and registered as such as per file  No. 57-003708-5 on the 01.05.2000.

 

* Subject's full official registered name translated from Hebrew is ELCAM MEDICAL AGRICULTURAL COOPERATIVE SOCIETY LTD., and the short ACS stands for Agricultural Cooperative Society. Subject's CFO confirmed to us that the Latin name they use is ELCAM MEDICAL A.C.A.L.

 

 

OWNERSHIP

 

Subject is fully owned by BARAM HOLDINGS ACS LTD., fully owned by Kibbutz Baram, a cooperative society, operating a communal agricultural settlement.

 

 

DIRECTORS

 

1.    Haim Milo, Chairman,

2.    Ehud Raivitz, General Manager,

3.    Nir Shapira,

4.    Shaul Ashkenazi,

5.    Ms. Naomi Omer,

6.    Itzhak (Tzahi) Raviv,

7.    Amit Litman.

 

 

BUSINESS

 

Developers, manufacturers, exporters and marketers of precision injection-molded disposable medical devices (standard stopcock, High Pressure Stopcocks, High Flow (large bore) stopcocks, custom made stopcocks, manifold, needle-less), as well as providers of innovative solutions for specialized flow control needs.

 

Over 95% of sales are for export, chiefly to the U.S.A and Europe (mainly OEM market), little to the Far East and South America.

 

Among local clients: BIOMETRIX, RAMBAM MEDICAL CENTER.

 

Among foreign suppliers (molds): SCHOTTLI, BRAUN, TAV-MEDICAL, all of Germany.

 

Among local suppliers: KAFRIT INDUSTRIES, TEVA MEDICAL, DAVIK SDE BOKER, SU-PAD, DIGMEY HAGALIL, BIOPHARMAX, etc.

 

Operating from rented premises (offices, development and manufacturing facilities), on an area of 10,000 sq. meters, in Kibbutz Baram, a locality in the north of Israel (premises is owned by Kibbutz Baram), and from a plant, on an area of 4,500 sq. meters, in the Industrial Zone, Dalton. Also operates from Italian subsidiary premises (Modena), from U.S. subsidiary offices (New Jersey) and representative offices in Germany, China, Japan and South Korea.

 

Note: "Kibbutz" is a typical local cooperative agricultural settlement/ village.

 

Having 630 serving ELCAM MEDICAL Group. Having 450 employees in Israel (had 260 employees in 2012), further 160 employees in Italy and 20 employees in the USA.

 

 

MEANS

 

Current consolidated inventory is valued at US$ 10,000,000 (similar to 2012 and 2011).

 

Subject is an “Approved Enterprise”, and as such entitled to tax benefits and State incentives.

 

In 1999 and in November 2008, the Israeli Investment Center (IIC) approved US$ 8 million and NIS 19 million investment plans, respectively, for the expansion of subject’s plant.

 

In February 2015, the IIC approved an additional NIS 24.82 million investment plan for the expansion of subject’s plant, where subject will absorb additional 55 employees.

 

 

REVENUES

 

2008 sales claimed to be US$ 32,000,000, 95% for export.

2009 sales claimed to be US$ 33,000,000, 95% for export.

2010 sales claimed to be US$ 37,000,000, 95% for export.

2011 consolidated sales claimed to be US$ 78,000,000, 97% for export.

The significant increase in 2011 is due to the acquisition of Italian subsidiary.

The first half of 2012 sales claimed to be US$ 47,000,000, 97% for export.

Full 2012 sales figures not forthcoming.

 

2013 consolidated sales claimed to be US$ 83,000,000.

2014 consolidated sales claimed to be US$ 90,000,000.

2015 projected consolidated sales are US$ 90,000,000, 97% for export.

 

 

OTHER COMPANIES

 

ELCAM MEDICAL INC., 100%, USA, a marketing company.

INJECTECH INC., 100%, USA, manufactures of products for the medical industry.

ELCAM MEDICAL ITALY S.P.A., 100%, Italy, manufactures and marketers of disposable medical devices.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Ha'amakim Business Branch (No. 745), Afula, account No. 24300/00.

 

A check with the Central Banks’ database did not reveal anything detrimental on subject’s a/m account.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is ISO 9001 and 13485 (2003) certified, and meets GMP, FDA and other international standards.

 

Kibbutz Baram was established in 1949. It has 250 members.

 

Besides subject, it is also engaged in farming activities: cultivating large areas of agricultural land, field crops, orchards, poultry/ hen-house, etc. The Kibbutz operates other smaller businesses: a packaging house (PEROT BARAM), a museum and others.

 

In December 2007 it was reported that subject launched a new plant in the Industrial Zone, Dalton, with an investment of NIS 20 million.

 

In 2010 subject received a gold seal award for excellance from The Standards Institution in Israel.

 

In September 2010, it was reported that subject joined the 2nd round of capital raise in the local start-up NANOPASS TECHNOLOGIES, developers of painless MicroPyramid devices for drug delivery and diagnostics. Reportedly, the venture, controlled by the OFER HITECH Group, which in February 2010 received FDA approval for products distribution in the USA, encountered financial dificulties and had to fire most of its employees. Subject is said to be erecting a new special manufacturing line as part of the investment.

 

In December 2010 subject made its first acquisition abroad, when it acquired Italian company LUCOMED S.F.A. in consideration of around € 30 million, to be financed by subject’s own resources. LUCOMED also specializes in disposable medical devices. It was reported that the unified company will sell to JOHNSON & JOHNSON and BAYER.

 

In May 2012 subject received an "Excellence and Quality Star" from the Israeli Northern Chamber of Commerce.

 

Israel is considered one of the leading countries in the world in terms of investment in the Life Science and Biotechnology industry.

 

There are some 260 biotechnology companies operating in Israel as of 2015, 220 of which are Israeli, the rest are subsidiaries of foreign companies. The volume of investments in R&D in the biotechnology field is around US$ 400 million per annum, placing Israel 5th in the world in terms of investment in commercial R&D in biotechnology in respect of the GDP.

 

As of 2014, there are some 1,100 companies in the Life Science sector in Israel, of which 70% are in the medical devices fields, according to the Israel Export Institution estimation.

 

Export of medical devices rose by 11% in 2014 from 2013, and summed up to US$ 2 billion.

 

 

SUMMARY

 

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

Indian Rupees

US Dollar

1

Rs.65.98

UK Pound

1

Rs.100.11

Euro

1

Rs.70.35

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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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.