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MIRA INFORM REPORT
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Report No. : |
502739 |
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Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
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Name : |
TAMIG TIRE MARKETING 2007 LTD. |
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Registered Office : |
P.O. Box 2111 (7212002) 5A Hahazon
Street The New Industrial Zone Ramla 7252901 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
06.11.2007 |
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Legal Form : |
Private limited company |
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Line of Business : |
Importers,
marketers, distributors and local agents of firms in the tires field for
private cars, commercial vehicles ,trucks ,trailers, motorbikes, OTR, ATV and
forklifts. Import includes also wheels, automotive and tires allied equipment
& accessories. |
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No. of Employees : |
35 (2011) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Maximum Credit Limit : |
US$ 80,000 |
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Status : |
Moderate |
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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.
ISRAEL - ECONOMIC
OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
name and address
TAMIG
TIRE MARKETING 2007 LTD.
Telephone 972 8 954
11 11
Fax 972 8
978 59 99
Email: anatm@tamig.co.il
P.O. Box 2111 (7212002)
5A
Hahazon Street
The
New Industrial Zone
RAMLA 7252901 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company,
incorporated as per file No. 51-404680-4 on the 06.11.2007.
Subject was established to take
over the activities of TAMIG LTD., established in 1981, which was merged into
TAAVURA HOLDINGS LTD. in February 2008.
SHARE
CAPITAL
Authorized share capital NIS
100,000.00, divided into -
100,000 ordinary shares of NIS
1.00 each,
fully
issued.
SHAREHOLDERS
Subject
is fully owned by TAAVURA HOLDINGS LTD., owned by:
1. AVRAHAM LIVNAT LTD., 50%, equally owned by the Livnat brothers
(Zeev, Zvi & Shay),
2. NESHER - ISRAEL CEMENT ENTERPRISES LTD., 50%, owned by MASHAV
INITIATING AND DEVELOPMENT LTD., fully owned by CLAL INDUSTRIES LTD. (hereafter CI), fully
owned by a foreign company AL DIVERSIFIED HOLDINGS S.A.R.L, which is fully
owned by the Group's roof company (also a foreign company) AL DIVERSIFIED
PARENT S.A.R.L. All these 3 companies are part of ACCESS INDUSTRIES Group,
owned by Len Blavatnik.
In
August 2001 Irish concrete concern CRH completed a transaction in which it
acquired from CLAL 25% of MASHAV, in consideration of NIS 598 million.
In September 2015 CI signed an agreement with CRH to acquire
its 25% for a reported sum of over NIS 550 million (reportedly, 20% transferred
immediately, and remaining 5% in a period of 1 to -3 years). Deal was completed
and as of 01.12.15 MASHAV is fully owned by CI.
In
July 2012, I.D.B. HOLDING CORP. LTD.,
controlled by Nochi Dankner (Bondi was also a 10%
shareholder), which held 60.5% of CI, completed the sale of 49.9% of CI to Blavatnik for NIS 1.27 billion (see
more in CHARACTER) and in March 2013 I.D.B. sold its remaining holdings in Cl to Blavatnik.
DIRECTORS
1. Yehezkel Dovrat, Chairman of TAAVURA
HOLDINGS,
2. Ilan Shomroni,
3. Gershon Erenthal,
4. Gershon Inbar.
GENERAL
MANAGER
Haim
Peltz.
BUSINESS
Importers,
marketers, distributors and local agents of firms in the tires field for private
cars, commercial vehicles ,trucks ,trailers, motorbikes, OTR, ATV and
forklifts. Import includes also wheels, automotive and tires allied equipment
& accessories.
Sales
are to TAAVURA Group huge vehicle/trucks/trailers fleet, MAMAN- CARGO TERMINALS
(part of TAAVURA Group) and to 3rd parties such as THE ISRAEL
ELECTRIC CORP., Israel Port Authority, and more.
According
to our, sole local representative of (in tires):
PIRELLI,
of Italy,
AEOLUS,
of China,
SOLIDEAL,
of Sri Lanka,
SONAR,
of Taiwan,
CEAT,
of India,
WORLDOFTIRES,
of Belgium,
MITAS,
of the Czech Republic,
METZLER,
of Germany,
Trelleborg, of Sweden,
TITAN
INTL., of the USA.
In
Equipment, sole representatives of:
TECH,
of USA,
M
VERMAR,
of Mexico.
Operating
from 5A Hahazon Street, The New Industrial Zone, Ramla.
Had 35
employees as of 2011, current number unavailable.
Having
some 6,500 employees serving TAAVURA Group.
MEANS
Stock
was valued at NIS 14,000,000 in the beginning of 2011.
Subject's
later/other financial data not forthcoming.
Parent
company TAAVURA HOLDINGS is known to be financially strong.
There
are 5 charges for unlimited amounts registered on the company's assets, in
favor of Bank Leumi Le'Israel Ltd. and The First International Bank of Israel
Ltd. (charges placed between 2008-2009).
Financial data is included in the consolidated B/S of parent
company, TAAVURA HOLDINGS LTD., which shows (last obtainable):
NIS
(thousands)
31.12.2013 31.12.2014
ASSETS
Current assets
Cash and cash equivalents 539,219 337,156
Other financial assets 212,650 51,520
Customers 502,013 567,153
Other debtors & assets 155,647 105,251
Inventory 517,596 320,712
1,927,125 1,381,792
Non-current
assets
Fixed assets (net) 1,219,864 1,184,196
Goodwill and other intangible assets 91,457 116,336
Other non-current assets 493,020 592,332
1,804,341 1,892,864
3,731,466 3,274,656
======== ========
LIABILITIES
Current
liabilities 1,154,952 875,745
Non-current
liabilities 1,654,528 1,367,853
Equity 921,986 1,031,058
3,731,466 3,274,656
======== ========
REVENUES
2008
sales claimed to be NIS 70,000,000.
2009
sales claimed to be NIS 80,000,000.
2010
sales claimed to be NIS 85,000,000.
Later
sales data not forthcoming.
TAAVURA
HOLDINGS LTD.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2012 2013 2014
Revenues 1,996,550 2,102,175 2,454,690
Gross profit 296,957 298,432 380,597
Operating profit 178,327 168,041 231,206
Profits before taxes on
income 98,143 93,617 132,243
Net profit 87,199 84,476 107,383
======= ======= ========
2015
and 2016 sales figures not forthcoming.
2017
consolidated revenues claimed to be NIS 3,500 million.
OTHER
COMPANIES
1.
TAAVURA HOLDINGS LTD., parent company, a
holding company for TAAVURA Group, itself and via subsidiaries operating in the
following lines of Transportation, Infrastructure & Logistics: Road haulage
services, dealing in all sorts of cargo (bulk, cars, heavy duty equipment, raw
materials, etc.), logistics, public transportation services, lifting services
(using mobile crane fleet), infrastructure works (mining, excavation, earth and
marine works, operation of heavy-duty equipment and machinery, erection of solid waste landfills, manufacturing of explosives,
aviation services, etc.
2.
Commerce and allied services, including
in import and marketing automobiles (trucks and buses – see more below), garage
services, tires (via TAMIG TIRE), spare parts, generators (via SHMERLING ENGINEERING),
blowers ventilation equipment (via VENTA MARKETING), etc. Via GRAND AUTOMOTIVE
importers and marketers of HYUNDAI, FORD and other vehicles in Serbia, Croatia and other
countries.
Most
of TAAVURA Group's revenues are local.
TAAVURA holds (among many others, 100% unless otherwise
stated):
UNIVERSAL
TRACKS ISRAEL LTD. (U.T.I.), 50%, importers and marketers of ISUZU trucks in
Israel,
EGGED
TAAVURA LTD., 50%, public transportation operator,
GRAND AUTOMOTIVE L.P., via
subsidiaries, representatives of FORD, HYUNDAI,
JAGUAR - LAND ROVER, INFINITI and VOLVO vehicles to Croatia, Serbia and
Montenegro, Albania, Kosovo, Macedonia and Bosnia, importers and marketers of
vehicle and spare parts thereof, as well as service providing for those
vehicles and for some additional brands (MAZDA and CITROEN).
DALEWEST,
Cyprus, 81%,
SHMERLING ENGINEERING CO. (1970) LTD., 51%, holding 90% of
SHMERLING - SYNCHRO ENERGY ENGINEERING LTD., importers, traders and merketeres
of generators.
EXPLOSIVES
INDUSTRIES LTD., fully owns EXPLOSIVES MANUFACTURING INDUSTRIES 1997 LTD.,
explosives manufacturers.
T.G.A.
INFRASTRUCTURE L.P., water and sewage infrastructure,
M.M.M.
LTD., 33%, waste hiding, operating landfill.
YOZMA GALIL HOLDINGS (1982) LTD., holds: WESTERN GALILEE
(1993) TRANSPORTATION CO. LTD., AMAL PARDES HANNA – TRANSPORTATION CO. LTD.
(86%), HANAMAL HAHADASH COOPERATIVE LTD., SHARON TRANSPORT - Y.G. (2007) LTD.,
EMEK HAYARDEN TRANSPORTATION CO. LTD. (50%), HANEGEV AND HAARAVA TRANSPORTATION
COMPANY LTD. (50%), all engaged in haulage transportation and provision of
logistics services, HANEGEV & ARAVA LTD., 50%,
VENTA
MARKETING LTD., manufacturer of blowers and ventilation equipment.
ELDAN ROAD SERVICES LTD., 50%,
car transportation.
MAMAN- CARGO TERMINALS & HANDLING LTD., 65.3%,
established 1974, publicly traded (TASE) since
1989, current market value US$ 91 million. Deals in management and operation
cargo terminal authorized for all import and export cargo at Ben Gurion Intl.
Aiprort. Holds and leases real estate, provides logistics and aviation ground
services. Main subsidiaries (100% unless otherwise stated):
LOGISTICARE LTD., rendering of logistics and cargo
handling services,
MAMAN AVIATION LTD.,
GSA passengers and cargo services to airlines,
MAMAN EURO LOGISTICS S.R.O, Czech Republic, operating a
Logistic Center in the Czech Rep. as Forward Center in Central and Eastern
Europe.
ARCHIVE
2000 LTD., fully owns ARCHIVE JERUSALEM LTD.,
GAV-YAM MAMAN ASSETS IN LOD LTD., 50%, yielding real estate,
TAL limousine
SERVICE LTD., VIP transportation services,
LAUFER AVIATION – GHI LTD., 58.5%, aviation ground services.
MAMAN INFRASTRUCTURE DIMONA LTD., 75%, holds M.T.R. RAILWAY
INDUSTRY ENTERPRISES COMPANY (1999) LTD., 51%
K.L.P.
MAMAN LTD., 50%.
MAMAN GLOBUS LTD.,80%, holds 51% in GLOBUS
PACKAGING AND INTERNATIONAL FOWARDING LTD.,
forwarding and customs services,
MASHAV INITIATING AND DEVELOPMENT
LTD., a holding company, among its main holdings also: 19% of ISRAEL SHIPYARDS
LTD., shipbuilders.
NESHER
ISRAEL CEMENT ENTERPRISES LTD., parent company, importers, manufacturers,
marketers and exporters of cement. Holds:
YE’ELIM
TRANSPORT LTD., 100%, cement transportation,
PAPER
PROD
AV-SHAL
- INVESTMENTS & TRADE LTD.
M.P.
MINERALS AND MARBLE LTD., 100%, quarrying
and producing white chalk and related products.
CLAL INDUSTRIES LTD. (CI), a holdings
and investment company, with many holdings in various fields in the local
industry and trade (see more below), via many subsidiaries. CLAL 2014 consolidated revenues were NIS 5,773 million. There
is many other companies part
of CI Group.
ACCESS INDUSTRIES, an international industrial group, with
long-term strategic holdings in Europe, North & South America, in
industries such as oil, coal, aluminum, petrochemicals and plastics,
telecommunications, media (WARNER MUSIC), and real estate. Among other local holdings: 33% of RGE Group operating in the
media field, holding Sport's Channel, Children's Channel and Channel 8.
AVRAHAM LIVNAT LTD., established in 1972, holding company,
among other holdings 42% in TAAVURA TIFZORET (1995) LTD., transportation services
for bulk materials, and 100% in H & O FASHION CHAINS (2003) LTD., fashion
chain stores. Avraham Livnat has other holdings (see CHARACTER).
AVRAHAM LIVNAT INVESTMENTS (2002) LTD., holds 50% in
KINGENTA LIVNAT AGRISCIENCE DEVELOPMENT, crop solutions.
BANKERS
According
to our records (since subject’s officials did not disclose bank data, we are
unable to verify the u/m bank details):
Bank
Leumi Le'Israel Ltd., Rishon Le-Zion Business Branch (671), Rishon Le-Zion,
account No. 147700/65.
A check with the Central Banks' database did not
reveal any negative information regarding subject's a/m account.
The
First International Bank of Israel Ltd., branch
data not forthcoming.
CHARACTER
AND REPUTATION
Nothing
unfavorable learnt.
Subject's officials refused to update any data, saying
they are a private company, and as such not obliged to do so.
Subject
is veteran and well-known in its branch.
TAAVURA is a leading local the Group. It is largest
local transporters of heavy road haulage. WESTERN GALILEE (YOZMA
GALIL) is among the leading local haulage of cargo, general and in bulk. MAMAN
Group is the leading TPL (Third Party Logistics) services in Israel (declared a
monopoly in air cargo handling).
In October 2013 MAMAN won the
Airport Authority tender to operate the cargo terminal for further 15 years.
Another of subject's subsidiaries, EXPLOSIVE INDUSTRIES, is also considered a
monopoly for explosives.
In the trucks branch, in
2016 TAAVURA Group had market share of 15.6% and 15.8% in sales of over 7 ton
trucks category with DAF and ISUZU trucks, respectively.
The
Late Avraham (Bondi) Livnat, founder of TAAVURA, was a well-known and among the
leading and most powerful local businessmen.
Livnat family have many other
holdings besides TAAVURA Group, including in fashion importers and retailers
H&O FASHION LTD., and 80% in CARMEN MANAGEMENT AND ASSETS (1997) LTD.,
which has stake in publicly traded real estate companies (AIRPORT CITY, NATSBA)
and minority stake in and oil and natural gas exploration companies (including
publicly traded companies EQUITAL, ISRAMCO, J.O.E.L., NAPHTA). It includes the
part in the rights in what is considered one of the largest natural gas
discoveries in the world ever, of over 200BCM, valued many US$ billions.
CLAL INDUSTRIES (CI) is a
veteran concern, with holdings in other local industries (besides the above
mentioned), including bio-technology and healthcare (CLAL BIOTECHNOLOGIES),
shipbuilding, textile & fashion, energy and hi-tech. Until 2012 CI was also
part of IDB Group, however IDB was
forced to realize holdings, facing severe liquidity problems due to high
leverage carried from past years, and in view of the current slow-down in economy it became heavily indebted, obliged in going through
corporate structural changes.
In July 2012, IDB completed the sale of 49.9% of its
holdings in CI to Blavatnik's ACCESS INDUSTRIES for NIS 1.27 billion. IDB sold
its remaining shares in March 2013. In November 2013, following a successful
tender offer for the shares held by the public, AL DIVERSIFIED PARENT reached
full ownership of CI, paying NIS 1.25 billion for the 50.1% of shares.
Len Blavatnik is a Russian-American tycoon, who via ACCESS
INDUSTRIES has many holdings in various industries (as well as via other
companies). According to Forbes' The World's Billionaire's List of 2017,
Blavatnik was listed in 40th place with an estimated fortune of US$10 billion.
According
to a report from mid-2017, subject’s parent NESHER holds 65% of the cement
market in Israel (decreasing its share from 85%-90% in previous years, though
still declared monopoly in the cement field, prices are supervised by the
Ministry of Economy & Industry).
The
local tires retail market is extremely competitive, characterized by low profit
margins, credit problems and lack of brand loyalty.
There are over 80 brands of tires sold by some 35 importers
in the local market, controlled by some 700 small tire repair shops.
The
local tire market is estimated by sources in the branch at US$ 200 million per
annum. According to estimations, it concerns the sale of 2 million tires per
year, 70% of which are imported from China.
In 2017, 281,563 new vehicles were sold, 2% decrease from
2016 (when 286,728 new cars sold, marking some 13% increase from 2015 with
254,748 new cars sold).
In 2015, 9,779 trucks were sold and 2,692 buses.
In 2016, 11,954 trucks were sold and 3,816 buses.
In 2017, 11,879 trucks were sold and 3,100 buses.
SUMMARY
Notwithstanding
the refusal to updated data from subject's officials, considered good for trade
engagements.
Maximum
unsecured credit recommended US$ 80,000 (subject may be well-worthy for higher
credit sums but at this stage, due to lack of cooperation, we prefer to remain
cautious).
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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ILS |
1 |
INR 18.60 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.