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MIRA
INFORM REPORT
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Report No. : |
503441 |
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Report Date : |
18.04.2018 |
IDENTIFICATION DETAILS
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Name : |
MAPAL COOPERATIVE SOCIETY LTD. |
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Formerly Known As : |
MAPAL
KIBBUTZ MEVO HAMA PLASTIC PRODUCTS. |
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Registered Office : |
D.N.
Ramat Hagolan Mevo Hama 1293400 |
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Country : |
Israel |
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Date of Incorporation : |
26.03.1985 |
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Legal Form : |
Limited |
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Line of Business : |
Manufacturers,
exporters and marketers of custom-made polypropylene and plastic products,
including household goods, stationary, office supplies, as well as products for
agricultural uses. |
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No. of Employees : |
85 |
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 : |
Slow but Correct |
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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
MAPAL
COOPERATIVE SOCIETY LTD.
(Also
trading as MAPAL PLASTICS*)
Telephone
972 4 676 45 55
Fax 972
4 676 47 56
Email:
mapal@mapalplastics.com
D.N.
Ramat Hagolan
MEVO
HAMA 1293400 ISRAEL
HISTORY & LEGAL FORMATION
Originally
established as a limited partnership, registered as per file
No.
55-000789-2 on the 26.03.1985 under the name MAPAL KIBBUTZ MEVO HAMA PLASTIC
PRODUCTS.
Converted into an agricultural
cooperative society, registered as such as per file No. 57-003975-0 on the
01.05.2001.
*Note: The exact
translation of the full Hebrew registered name of subject is MAPAL AGRICULTURAL
COOPERATIVE SOCIETY LTD. (there is no Latin registered name) or MAPAL ACS LTD.
in short.
OWNERSHIP
1. Kibbutz Mevo
Hama, 50%, a co-operative society, operating a communal
agricultural settlement,
2. PLAZIT INDUSTRIES – AGRICULTURAL COOPERATIVE
SOCIETY
LTD., 50%, owned by Kibbutz Gazit (77%, a
cooperative society, operating a communal agricultural settlement) and TENE II FUND (23%, an investment fund, managed by Dr.
Ariel Halperin).
In
2007 PLAZIT INDUSTRIES (then under the name GAZIT
INDUSTRIES) acquired 50% of subject from Kibbutz Mevo Hama.
MANAGEMENT
1. Yehuda Ben Haim,
Chairman, also Chairman of PLAZIT,
2. Ariel Peled, General Manager.
BUSINESS
Manufacturers,
exporters and marketers of custom-made polypropylene and plastic products,
including household goods, stationary, office supplies, etc., as well as
products for agricultural uses.
Operating
under the brand name "Flic" (for the office supplies lines).
Subject
is part of PLAZIT Group.
Some
75% of sales are export, mainly to the USA and Europe.
Among
local clients: KETER PLASTIC, NETAFIM, GIGI COSMETICS.
Among
foreign clientele: PVCTECH, N-O-B-I-L-E, WINTER CO., PYRAMID DISPLAY, ANTALIS,
FLEXIBLE REINFORCEMENTS, GRIFALL, and more.
Among
suppliers: CARMEL OLEFINS.
Operating
from premises, owned by Kibutz Mevo Hama, on an area of 7,000 sq. meters, in
Kibutz Mevo Hama, located in the North of Israel.
Note:
"Kibbutz" is a typical local cooperative agricultural settlement/
village.
Website:
www.mapalplastics.com
Having
85 employees.
Having some 1,000 employees serving PLAZIT Group.
MEANS
Stock
was valued at NIS 10,000,000 in 2012. Current value not forthcoming.
Subject is an “Approved
Enterprise” and as such enjoys tax benefits and State incentives.
In
2000, the Israeli Investment Center (IIC) approved a US$ 6,500,000 investment
plan for the expansion of subject’s plant.
In
2015 the IIC approved a NIS 12,774,000 investment plan in subject’s plant, and
subject is committed to recruit 7 employees.
REVENUES
2010
sales claimed to be NIS 60,000,000, 70% for export.
2011
sales claimed to be NIS 60,000,000, 70% for export.
Sales
for the first 6 months of 2012 claimed to be NIS 32,000,000, 70% for export.
Subject's
later sales not disclosed.
According
to Kibbutz Mevo Hama’s website, annual sales are NIS 72,000,000.
PLAZIT Group's consolidated
(in relative consolidation according to holding):
2015 revenues were circa NIS 1,000 million.
2016 revenues were circa NIS 1,000 million, over 70% for
export.
2017 revenues were circa NIS
1,000 million, over 70% for export.
OTHER COMPANIES
PLAZIT INDUSTRIES - AGRICULTURAL COOPERATIVE
SOCIETY LTD. (formerly GAZIT INDUSTRIES ACS LTD.), parent company, a
holding company (no commercial activities). Also holds:
PLAZIT 2001 - AGRICULTURAL
COOPERATIVE SOCIETY LTD., 100%, manufacturers, marketers and
exporters of acrylic made boards (extruded plastic sheets), for the building,
furniture, DIY, signposts and billboards sectors. Holds: PANCHIM LTD., a Bulgarian 100% subsidiary, manufacturers of extruded
Acrylic and Polystyrene sheets and PMMA granules and PLAZIT IBERICA PLASTIC SOLUTIONS, S.A.U., 100%, a plant in Spain.
POLYRAZ
INDUSTRIES ACS LTD., over 60%, manufacturers,
exporters and marketers of multilayer co-extrusion roll-stock sheets, owns
POLYRAZ USA.
M.C.P.
PERFORMANCE PLASTIC LTD., 50.1%, developers, manufacturers,
exporters and marketers of custom co-extruded thermoplastics for a wide range
of packaging solutions, mainly for the food industry.
POLYGAL
PLASTICS INDUSTRIES LTD., 100%, manufacturers,
marketers and exporters of polycarbonate and polypropylene sheets and glazing
systems.
MADAF PLAZIT PACKAGING, 50%, a general partnership, manufacturers, exporters and
marketers of plastic packaging products and polystyrene disposable packaging
materials.
AGIR PROJECTS
(SEALING) LTD., engaged in ground sealing and reservoir design, manufacturers
and marketers of sealing solutions.
Also owned by
Kibbutz Gazit:
PLAZIT PACKAGING
AND PLASTIC PROD
PLAZIT PACKAGING
AGRICULTURAL COOPERATIVE SOCIETY LTD., 100%, a holding company.
KIBBUTZ
MEVO HAMA INVESTMENTS & ASSETS 2001 LTD., holdings,
MAPAL
KIBBUTZ MEVO HAMA PLASTIC PRODUCTS, a limited partnership, non-active.
EL
HAMA INSTRUMENTS LTD., importers and marketers of measurement and control
equipment for scientific and industrial ends.
BANKERS
The
First International Bank of Israel Ltd., Tiberias Branch (No. 2), Tiberias,
account No. 409/527882.
A
check with the central banks’ database did not reveal any negative information
regarding subject’s a/m account.
Bank
Leumi Le'Israel Ltd., Haamakim Business Branch (No. 745), Afula.
Bank
Hapoalim Ltd., Haifa Business Branch (No. 562), Haifa.
CHARACTER AND REPUTATION
Nothing
unfavorable learnt.
Subject’s
CFO refused to update financial data.
This
is a veteran business.
Subject is ISO9001:2000 certified.
PLAZIT Group is
veteran (activities began originally in 1973, since then, the Group
extended, went through structural changes and acquisitions) is considered leading international specialist manufacturers of
thermoplastic sheets for industrial and domestic applications.
Kibbutz
Mevo Hama was established in 1968. Having 143 members.
Besides
subject and other industrial activities, they are also cultivating agricultural
land (grain, fruit plantations, etc.), as well as breeding livestock and
operating a tourist resort.
Kibbutz Gazit
was established in 1950 and has some 330 members (population of some 560). The
Kibbutz also cultivates a large area of agricultural land, including field
crops, fruit plantations, operate hen house, breeding sheep & goat, cattle.
Besides, it also operates other smaller business ventures.
In beginning of
2008, TENE FUND acquired 18% of PLAZIT INDUSTRIES (formerly GAZIT INDUSTRIES) from Kibbutz Gazit, reportedly in
consideration of NIS 65 million. In 2011 TENE reached current holding (realizing its option).
PLAZIT Group’s
accountant informs us that an agreement was signed, in which LEUMI PARTNERS (investment arm of BANK LEUMI LE'ISRAEL
LTD.) and Kibbutz Gazit will
acquire the 20% holdings of TENE FUND - LEUMI PARTNERS and Kibbutz Gazit
3%. Deal is awaiting Authorities and banks approvals.
TENE
Investment Funds is a private equity firm, controlled and managed by
Ariel Halperin, Ran Ben-Or, Eyal Attia and Dori Brown, investing chiefly in traditional and mid-tech
industries. Main institutional investors in TENE are LEUMI PARTNERS (mainly, a
subsidiary of BANK LEUMI LE'ISRAEL LTD., one of Israel’s 2 leading banks),
PHOENIX INSURANCE, MENORAH MIVTAHIM Financial Group. TENE manages some US$ 200
million and so far it invested in several plants with investments between US$ 5
to US$ 30 million in each, in the framework of 3 funds: TENE
I, TENE II (which PLAZIT Group is part of) and TENE III.
LEUMI
PARTNERS is BANK LEUMI Group's Investment Banking arm, has been leading some of
the most complex and challenging transactions in the recent years within the
Israeli market, managing LEUMI Group's over NIS 7 billion investment portfolio.
BANK LEUMI LE’ISRAEL LTD., publicly traded on the Tel Aviv Stock Exchange, is
one of Israel’s 2 largest bank.
In 2010, PLAZIT INDUSTRIES (then GAZIT) acquired control
(52%) in POLYGAL PLASTICS INDUSTRIES LTD. from Kibbutz Ramat Hashofet
for
NIS 36 million. POLYGAL is a
veteran well-known plant for plastics sheets for the building sector, with some
200 employees and sales of NIS 280 million.
In April 2011 PLAZIT Group
acquired 57% of POLYRAZ - PLASTIC
INDUSTRIES partnership's activities from Kibbutz Maoz Haim. POLYRAZ
activities, originally
established 1967, were transferred into POLYRAZ INDUSTRIES ACS LTD., 57% held by PLAZIT
PACKAGING ACS and 43% by POLYRAZ - PLASTIC
INDUSTRIES partnership.
Later, sister
partnership MADAF PLAZIT PACKAGING acquired some 58% from Kibbutz Maoz Haim part in POLYRAZ - PLASTIC INDUSTRIES partnership, thus PLAZIT Group reached
in practice 76% in POLYRAZ INDUSTRIES.
In April 2017, PLAZIT Group (via
a subsidiary, we were not told which, according to reports via MADAF PLAZIT PACKAGING) acquired the plant of BENDA PLAST
INDUSTRIES, established in the late 1970s, which encountered financial
difficulties, for a reported sum of NIS 12.5 million + NIS 2 million-NIS 5
million according to performance.
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).
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 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.
According
to the 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).
From the CBS data, investment in imported machinery and
equipment by the Plastic & Rubber industries in 2017 totaled at NIS 556.7
million, marking 9.8% increase from 2016 (change in quantity), after 15.2%
increase in 2016, 13.2% increase in 2015 and 5.2% increase in 2014, each from
the previous year.
SUMMARY
Notwithstanding the refusal to
disclose financial data, considered 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 65.61 |
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1 |
INR 94.21 |
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Euro |
1 |
INR 81.32 |
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ILS |
1 |
INR 18.67 |
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 : |
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
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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.