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MIRA INFORM REPORT
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Report No. : |
500682 |
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Report Date : |
17.04.2018 |
IDENTIFICATION DETAILS
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Name : |
POLYRAM PLASTIC INDUSTRIES LTD. |
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Registered Office : |
Mobile Post Gilboa, Ram-On 1920500 |
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Country : |
Israel |
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Date of Incorporation : |
05.05.2015 |
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Legal Form : |
Private Limited Company |
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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. This activity comprises
most of sales. Subject also developers, manufacturers,
marketers and exporters of resins and adhesives |
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No. of Employees : |
213 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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
POLYRAM PLASTIC INDUSTRIES LTD.
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 private limited
company, incorporated as per file No. 51-525159-3 on the 05.05.2015.
Subject was established in view of assuming all the
business activities of RAM-ON INDUSTRIES LIMITED PARTNERSHIP (formerly POLYRAM
RAM-ON INDUSTRIES LIMITED PARTNERSHIP), a limited
partnership, established on the 23.02.1986, registered as per file No.
55-000832-0, fully owned by RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD.
(formerly POLYRAM (1999) LTD.). That happened after FIMI FUND entered as an
investor, acquiring in April 2015 from RAM-ON INVESTMENTS 65% of POLYRAM RAM-ON LP's activities (apart from POLYRAM's real estate assets), in consideration
of NIS 347 million.
On the 01.07.2015 all of RAM-ON LP's
commercial and industrial activities were transferred to subject.
Note: The
registration no. you gave 51-523159-3 has a digit error (should be 5).
SHARE
CAPITAL
Authorized share capital 0.00 (no face value),
divided into:-
100,000 ordinary shares of 0.00 each (no face value), of which 100 shares
were issued.
SHAREHOLDERS
1. FIMI POLYRAM (2015) LIMITED PARTNERSHIP,
65%, of FIMI FUND, a private equity fund controlled by Ishay
Davidi,
2. RAM-ON INDUSTRIES LIMITED PARTNERSHIP, 35%,
fully owned by RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD., a public limited company whose shares are
traded on the Tel Aviv Stock Exchange (TASE), controlled by Moshav Ram-On
(17.7%), a cooperative agricultural cooperative settlement (known as
"Moshav") with 58 member families, and by several members of the
Moshav.
DIRECTORS
1. Ron Ben Haim,
2. Joseph Bitan, Chairman of RAM-ON INVESTMENTS,
3. Eitan Arazi,
4. Ishay Davidi, Chairman of FIMI Fund.
GENERAL
MANAGER
Yuval Peleg.
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. This activity comprises
most of sales.
Also developers, manufacturers, marketers and exporters of resins and
adhesives, under the trade name "Bondyram", which are coupling agents
which are additives to the combinations of thermoplastic compounds.
67% of 2017 sales were for export (70% in 2016), to 45 countries.
Subject's specialized in tailor made products according to costumer's need.
Amongst local clients: NETAFIM, RAVIV (Kibbutz Revivim), RIVULIS PLASTRO,
Z.A.G. INDUSTRIES, NAAN DAN JAIN IRRIGATION, BERMAD, BACCARA GEVA, METZERPLAS
INDUSTRIES, DANIA PLAST, RION, ZRICHA HLAVIN INDUSTRIES, SHALON CHEMICAL
INDUSTRIES, PLASTOKIT, PLASTOPIL HAZOREA, GINEGAR PLASTIC PRODUCTS, etc.
Amongst foreign clients: MEMOLEX (France), TRW (manufactures for OPEL),
BLUEWATER (manufactures for Mercedes), RENAULT, PEUGEOT (both of France),
MITRONIX (UAS), SIEMENS (Germany), ABB (Switzerland), etc.
Amongst local suppliers: CARMEL OLEFINS, NILIT, MARLOV, etc.
Amongst foreign suppliers: BASF (Germany), MORIROUI, COTRIMEX, etc.
Operating from premises, owned by RAM-ON Group (offices, plant, logistics
center), on a total area of 37,200 sq. meters (of which 19,200 sq. meters are
built), in Ram-On (or 'Moshav Ram-On"). Also leasing storage areas of
4,550 sq. meters, in the Alon Tavor Industrial Zone, Afula. In addition,
operating from subsidiaries’ manufacturing facilities in Indiana, USA (leased
area of 9,300 sq. meters) and in China, branch offices in the throughout
Europe, and warehouses in Europe, China and U.S.A., and distributors worldwide.
Website: www.polyram.co.il
Having 213 employees (had 192 employees in the end of 2016, 187 employees
in the end of 2015).
MEANS
Parent company RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD. listed its
shares for trade on the TASE in 2004. Current market value US$ 74.5 million.
As part of the transaction of the acquisition of 65% of
RAM-ON LP's activities, subject took upon itself all the LP's assets and
liabilities, including a NIS 70 million debt, but excluding real estate assets
and certain other exclusion.
There are 3 charges for unlimited amounts registered on
the company’s assets (all assets), in favor of The First International Bank of
Israel Ltd., Bank Leumi Le'Israel Ltd. and Bank Hapoalim Ltd. All charges
placed in June 2015.
In 2017 NIS 3,233,000
were invested in R&D.
Consolidated B/S shows:
NIS
(thousands)
31.12.2016 31.12.2017
ASSETS
Current assets
Cash and cash equivalents 14,812 24,620
Customers 110,308 128,756
Other accounts receivable 13,103 23,240
Stock 136,688 165,698
274,911 342,314
Non-current assets
Fixed assets, net 60,216 74,088
Goodwill and intangible assets 225,440 224,747
Other non-current assets 2,955 2,955
288,611 301,790
563,522 644,104
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LIABILITIES
Current liabilities 152,881 199,019
Non-current
liabilities 64,755 58,694
Equity 345,886 386,391
563,522 644,104
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REVENUESES
RAM-ON INDUSTRIES LP results:
Ended 2012 with a
net profit of NIS 36,237,000.
Ended 2013 with a
net profit of NIS 34,421,000.
Ended 2014 with
similar profit as in 2013.
Consolidated
Statement of Income
NIS
(thousands)
6
month ending 31.12. Year
ended 31.12.
2015 2016 2017
Sales 214,007 488,093 574,427
Gross profit 48,476 121,085 135,116
Operating income 28,036 77,425 91,339
Profits before income
tax 26,740 70,306 84,429
Net income 23,342 60,652 73,540
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OTHER
COMPANIES
Subject’s subsidiaries (100% unless otherwise stated):
POLYRAM U.K. LTD., U.K.,
POLYRAM FRANCE, France,
POLYRAM USA - CREATIVE FUNCTIONAL POLYMERS, LLC (POLYRAM USA), 51%, USA,
POLYRAM THERMOPLASTIC COMPOUNDS (TIANJIN) CO. LTD., China,
POLYRAM ITALY SRL, Italy,
POLYRAM SPAIN SL, Spain,
POLYRAM GERMANY, Germany, POLYRAM COMPOUNDS LLC,
incorporated in 2017, manufacturing arm in the USA.
RAM-ON INVESTMENTS AND HOLDINGS (1999) LTD.
Its subsidiaries (100% unless otherwise stated):
RAM-ON INDUSTRIES LP, direct parent
company of subject, a holding partnership,
RAM-ON BUILDINGS (2004) LTD., 78.8% (the rest of shares held by Moshav
Ram-On).
Also holdings in the following: ITEEO LTD., 19.6%, KANDO ENVIRONMENTAL SEVICES LTD., 17.5%, KALSEFER DIGITAL SOLUTION LTD.,
16.6%, GETCELL LTD., 19.7%, KVASIR EDUCATION LTD., 10.3%.
FIMI POLYRAM (2005) LIMITED PARTNERSHIP, part of the FIMI
FUND, which has many other investments - see below CHARACTER.
BANKERS
The First International Bank of Israel Ltd., Afula Branch (No. 111), Afula.
Bank Leumi
Le'Israel Ltd., Hadera Business Branch (No. 639), Hadera.
Bank Hapoalim
Ltd., Afula Business Branch (No. 472), Afula.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
RAN-ON is among the
global leading and innovating companies in the coupling agents with the "Bondyram" line.
RAN-ON, i.e. subject, is ISO/TS 16949:2002 certified, as well as meeting
other international quality standards such as NSF Standard.
RAN-ON's products
received the approval of several auto companies, among them RENAULT, NISSAN,
GENERAL MOTORS, OPEL, and more.
Moshav Ram-On was
established in
Founded in 1997,
FIMI Fund (mainly via 6 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 Gillon Beck and Ron Ben-Haim). Its 6th
fund established in 2016 and raised US$ 1.1 billion.
FIMI invests in
traditional industry companies with growth potential overseas. Having a
successful track record of 78 major transactions (48 cash exits) and NIS 11
billion in assets managed. Presently, the Fund has more than US$900 million
equity available for new investments. FIMI investors list includes leading US
and Israeli institutional investors (in Israel includes all largest financial
institutions, i.e. banks, insurance companies and provident & pension
funds).
In August 2012 RAN-ON LP (then POLYRAM RAN-ON LP) reported on the
establishment of a joint venture to distribute Group's products (POLYRAM USA), with MAROON INC., one of its US distributors, in which POLYRAM will hold 51%.
In July 2016
subject acquired 45% of POLYRAM FRANCE (held until
then 55%) for € 20,000, and reached full ownership.
In October 2016
subject established POLYRAM GERMANY.
On the 09.07.2017 RAN-ON reported that subject (via US subsidiary) intends to erect a plant
in the USA (on a rented premises on 10,000 sq. meters), investing NIS 20
million. Production in expected to commence in the beginning of 2018.
According to a
market research firm published in mid-2014 (ordered by the Ministry of
Economy), total revenues of the local Plastic & Rubber Industry reached US$
5 billion, half of which was for export (which is comprised 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).
According to the
Central Bureau of Statistics (CBS), import of Plastic and Rubber raw material
for the local industry totaled US$ 2,544 million in 2017, 10.7% rise from 2016
(that in US$ terms, marked 3.6% rise in NIS terms). In 2016 import rose by 4%
from 2015, after 12% decrease from 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).
According to the CBS, sales for export from the manufacturing of Plastic
and Rubber products in 2017 rose by 7.1% from 2016, summing up to US$ 2,204.6
million, which comes after 6.3% increase in 2016 and 7% decrease in export in
2015, each from the previous year.
Investment in imported machinery and equipment by the Plastic &
Rubber industries in 2016 totaled at NIS 525.2 million, marking 13.8% increase
from 2015, after 13.2% increase in 2015 and 5.2% increase in 2014.
SUMMARY
Good for trade
engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.45 |
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1 |
INR 93.28 |
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Euro |
1 |
INR 80.74 |
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ILS |
1 |
INR 18.58 |
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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VAR |
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Report Prepared
by : |
NIT |
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
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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.