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Report No. : |
342500 |
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Report Date : |
26.09.2015 |
IDENTIFICATION DETAILS
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Name : |
EIN SHEMER RUBBER
INDUSTRIES ACA LTD. |
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Registered Office : |
D.N. Hefer, Ein Shemer 3881600 |
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Country : |
Israel |
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Year of Establishment : |
1967 |
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Legal Form : |
Agricultural Cooperative Association |
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Line of Business : |
Designers, manufacturers, marketers and exporters of rubber products,
such as: tyre-retread materials, cushion gum, strips, hoses, window and car
profiles, blend products. |
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|
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No. of Employees : |
160 Employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
E S SHEMER RUBBER IND. A.C.A. LTD.
Correct Name: EIN SHEMER
RUBBER INDUSTRIES ACA LTD.
(Also
trading as: EIN SHEMER RUBBER INDUSTRIES)
Telephone 972 4 637 10 37
Fax
972 4 637 23 45
Email: export@esrubber.com
Physical
Address:
D.N.
Hefer
EIN
SHEMER 3881600, ISRAEL
Mailing
Address:
P.O. Box
881
PARDES
HANA-KARKUR 710802, ISRAEL
Originally
established as an industrial unit of Kibbutz Ein Shemer in 1967.
Converted into a limited partnership and registered as such as per file No.
55-000196-0 on the 01.10.1072.
Originally registered under the name EIN SHEMER RUBBER PROD
Converted into an
Agricultural Cooperative Society and registered under the present name as per
file No. 57-003843-0 on the 01.01.2002.
*Note: ACA in subject’s name stands for Agricultural Cooperative
Association (therefore full name may also be used: EIN SHEMER RUBBER INDUSTRIES
AGRICULTURAL COOPERATIVE ASSOCIATION LTD.), which is another translation to
“Agricultural Cooperative Society” (ACS), and since there is no registered
Latin name for subject, both terms can be used.
1. EUCALYPTUS INDUSTRIES LTD., 55%, controlled
by Akiva Moses, Tomer Amir, Yosef Rosen and Roni Koborovsky,
2. Kibbutz Ein Shemer, 45%, a co-operative
society, operating a communal agricultural settlement.
In January 2015
EUCALYPTUS INDUSTRIES acquired 55% of subject.
1. Yehuda Ben-Haim, Chairman,
2. Natan Vilner, General Manager,
3. Oded Dagai,
4. Sagi Granot,
5. Natan Vilner,
And more.
Designers, manufacturers, marketers and exporters of rubber products, such
as: tyre-retread materials, cushion gum, strips, hoses, window and car
profiles, blend products etc.
Subject is divided into 5 main divisions: Compounds, Retread Materials,
Hoses, Profiles and a Laboratory.
Some 30% of subject’s sales are for export, mainly to Europe.
Most of subject’s purchasing is imports, from Europe, Japan, and the U.S.A.
Among clients: ARKAL FILTRATION SYSTEMS, SCHIEFFER MAGAM INDUSTRIES, DURAM RUBBER
RAMAT HAKOVESH, RAVIV ACS, etc.
Among local suppliers: POLYON BARKAI INDUSTRIES, NOMINOR CHEMICAL
INDUSTRIES, GADOT CHEMICALS, PEL DAR POLYMERS, etc.
Operating from premises (offices, plant and storage facilities), owned by
Kibbutz Ein Shemer, on an area of 12,000 sq. meters, in Kibbutz Ein Shemer,
near Hadera.
Having 160 employees (had 170 employees in the beginning of 2014, same as
in 2012).
EUCALYPTUS INDUSTRIES acquired 55% of subject according to a reported
company value of tens NIS millions.
Stock was valued at NIS 7,000,000 in the beginning of 2014 (was valued at
NIS 6,500,000 in mid 2012, similar to 2011 and 2010).
B/S to the 31.12.2005 totaled NIS 41,165,000.
Equity the 31.12.2005 valued NIS 8,750,000.
Later B/S data unavailable.
2007 sales claimed to be NIS 86,000,000 (of which 38% were for export).
2008 sales claimed to be NIS 80,000,000 (of which 38% were for export).
2009 sales claimed to be NIS 64,000,000 (of which 30% were for export).
2010 sales claimed to be NIS 76,000,000 (of which 33% were for export).
2011 sales claimed to be NIS 84,000,000 (of which 33% were for export).
2012 sales claimed to be NIS 90,000,000 (of which 30% were for export).
2013 sales claimed to be circa NIS 93,000,000 (of which 30% for export).
Exact 2014 sales not forthcoming, though we were informed by subject's
general manager that there is no significant difference from 2013, 30% for
export.
Other companies owned by Kibbutz Ein Shemer:
MINIPLAST ACS LTD., manufacturers, marketers of disposable plastic bio
laboratory products, having 40 employees, 2008 sales NIS 16 million,
MINIPLAST EIN-SHEMER (1976), a limited partnership
EIN SHEMER-ALON HOLDINGS LTD.
EIN SHEMER ECONOMIC CO. LTD.
EIN SHEMER AGRICULTURAL PROD
EIN SHEMER LANDS LTD.
E-GLUE SOFTWARE TECHNOLOGIES LTD., software tools for customized solutions.
EUCALYPTUS INDUSTRIES LTD., a holding/ investment company.
Mizrahi Tefahot Bank Ltd., Pardes Hanna Branch (No. 473), Pardes Hanna,
account No. 190265.
The First International Bank of Israel Ltd., Hadera Branch (No. 027),
Hadera, account No. 227560.
Bank Leumi
Le'Israel Ltd., Hadera Business Branch (No. 639), Hadera,
account No. 21600/90.
A check with the
Central Banks' database did not reveal negative information on subject’s bank
accounts.
Nothing unfavorable learnt.
Subject's General Manager refused to update financial data, nor provide the
price paid by EUCALYPTUS for subject's shares.
This is a long established enterprise, well-known its field.
Subject is ISO 9001:2008 certified, meeting other international quality
standards.
In the past we received positive opinions on
subject from their suppliers.
Kibbutz Ein Shemer, established 1927, has over
400 members. The Kibbutz also cultivates a large area of agricultural land,
including crops (wheat), fruit plantation (Avocado, Citrus), operating large dairy
farming, and more. Also operates a Museum, as well as few other small
enterprises.
In September 2006 subject acquired the business activities of TECHNOGUM
RUBBER MANUFACTURE LTD. The company, operated since 1948, manufactured rubber
goods for various industries.
Akiva Moses, who heads EUCALYPTUS INDUSTRIES, is a renowned manager, who
served as General Manager of ISRAEL CHEMICALS (ICL), a multi-national concern
and among the world's leading suppliers of minerals, as well as being one of
the largest industrial concerns in Israel. He also served as Chairman of OIL
REFINERIES, Israel's largest oil
refinery plant.
Few years ago, as subject was suffering from import of rubber soles for
tires renovation in dumping prices from South Africa, subject appealed to the Anti-Dumping
Commissioner, who decided in July 2012 to lay a temporary levy.
The relevant ministers recommended for a permanent levy of 10%, which was
initially rejected by the government Finance Committee, but after
pressure, which included a the fear of dismissals of tens of employees from
subject's plant, in March 2013 the Finance Committee decided to lay a 7.5%
levy.
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.
Notwithstanding the refusal to update
financial details, considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.10 |
|
|
1 |
Rs.100.89 |
|
Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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-- |
NB |
New Business |
-- |
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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.