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MIRA INFORM REPORT
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Report No. : |
492771 |
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Report Date : |
23.02.2018 |
IDENTIFICATION DETAILS
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Name : |
AUTOMOTIVE EQUIPMENT AND TRUCKS - LIMITED PARTNERSHIP |
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Registered Office : |
P.O. Box 8757, 10-12 Ginzburg Street, New Industrial Zone, RISHON LE-ZION 7565708 |
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Country : |
Israel |
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Date of Incorporation : |
05.09.2011 |
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Legal Form : |
limited partnership |
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Line of Business : |
Importers
and marketers of MAN trucks and busses, mainly chassis – frames are
manufactured/ assembled locally. |
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No. of Employees : |
150 |
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
AUTOMOTIVE
EQUIPMENT AND TRUCKS
-
LIMITED PARTNERSHIP
Telephone 972 3 963 90 00
Fax 972 3 963 90 64
P.O. Box 8757
10-12 Ginzburg Street
New Industrial Zone
RISHON LE-ZION 7565708 ISRAEL
HISTORY
& LEGAL FORMATION
A
limited partnership (LP), registered as per file No. 55-024335-6 on the
05.09.2011.
Subject
was established in view of assuming the acquired activities of the local representation
of MAN trucks and busses, which were acquired by parent company AUTOMATIVE
EQUIPMENT AND VEHICLES (2004) LTD. in September 2011 from CONSOLIDATED NEAR
EAST COMPANY OF ISRAEL LTD.
OWNERSHIP
1. AUTOMATIVE EQUIPMENT AND VEHICLES (2004) LTD., limited partner
(investment: NIS 200,000,000), owned by TZVI NETA HOLDINGS LTD., owned by Neta
Family, mainly Tzvi Neta, part of AUTOMOTIVE EQUIPMENT Group (AEV Group),
2. M.C.T MANAGEMENT LTD., general partner, fully owned by a/m partner.
GENERAL
MANAGER
Yogev
Gavri.
BUSINESS
Importers
and marketers of MAN trucks and busses, mainly chassis – frames are
manufactured/ assembled locally.
Sole
local representatives of MAN TRUCK&BUS AG, of Germany.
Also importers
and marketers of spare parts.
Among
local suppliers: MERKAVIM, HA’ARGAZ.
AEV
Group is a partner in 2 public transportation (busses) line operators,
METROPOLIN PUBLIC TRANSPORTATION and METRODAN BEER SHEVA.
Among
clientele (besides 2 a/m affiliated bus companies): DAN PUBLIC TRANSPORTATION
COMPANY, Ministry of Defense, EGGED ISRAEL TRANSPORT CO-OP., local authorities,
etc.
Operating
from very large rented premises (main office and central garage), in 10-12
Ginzburg Street, New Industrial Zone, Rishon Le-Zion, and from northern branch
central garage in Haifa.
We are
informed that the Group is erecting a new facility in Meuyan Soreq Industrial
Zone, Rishon Le-Zion, a very large compound (owned by AEV Group), to where
subject is expected move to in a year’s time.
Website:
www.mantruck.co.il
Having
150 employees (similar to the previous years).
Having
500 employees in AVE Group.
MEANS
The MAN
activities were acquired in September 2011 (from founders Rothenberg family)
for a reported estimated sum of NIS 130 million (subject's officials refused to
comment).
In
December 2016 subject signed and an agreement with buyer for MAN local
concession, for NIS 120 million (deal was cancelled later, see CHARACTER).
Other
financial data not forthcoming, however enjoying the financial backing of
AUTOMOTIVE EQUIPMENT Group.
In an
interview with Tzvi Neta in January 2014, he estimated the value of the Group's
real estate assets at NIS 180 million, mostly yielding real estate.
According
to a report from 2010, Tzvi Neta intended an IPO for subject, at a value of
some 30% higher than a/m value, giving AEV a value of US$ 260 million (at that
period value over NIS 1 billion). Eventually he backed-off the IPO.
REVENUES
Subject's
officials refused to disclose sales figures.
In
2015 427 MAN trucks and 330 MAN busses were sold.
In
2016 491 MAN trucks and 293 MAN busses were sold.
In 2017
414 MAN trucks and 120 MAN busses were sold.
AEV Group’s consolidated 2016
sales claimed to exceed NIS 1,000 million.
AEV Group’s consolidated 2017
sales claimed to exceed NIS 1,000 million.
OTHER
COMPANIES
AUTOMOTIVE
EQUIPMENT Group also includes (100% owned by Neta Family, unless otherwise
stated):
AUTOMOTIVE
EQUIPMENT LTD., incorporated 1949, a holding company to the Group and owners of
lucrative real estate properties.
AUTOMATIVE
EQUIPMENT AND VEHICLES (2004) LTD., parent company, the main company in AEV
Group, handling the vehicle, tires and heavy duty equipment import, agencies
and marketing activities, sole local agents of:
Automobiles: SUZUKI (including spare parts).
Trucks:
ASHOK LEYLAND, MAN (via subject)
Tires: BRIDGESTONE and FIRESTONE (other tire brands are
imported by other AEV Group company TIRE DEPOT), marketed to some 200 points of
sale.
Heavy-duty machinery: LIUGONG.
Forklifts: YALE, HYUNDAI.
AUTOMOTIVE
INDUSTRIES LTD., established 1967, manufacturers, assemblers, exporters and
marketers of various types of vehicles for military, police and civilian use in
both local and international markets.
MOTO -
PARTS LTD., importers and marketers of automotive spare parts, original and
substitutes, including for private cars, buses and trucks.
M.S.I.
SPORTS CARS ISRAEL LTD., were sole local agents of PORSCHE (see more in
CHARACTER).
METIV
INSURANCE AGENCIES LTD., insurance, credit and leasing services.
AUTOMOTIVE
EQUIPMENT MANAGEMENT & MAINTENANCE (1997) LTD.,
THE
ISRAEL AUTOMOBILE CORPORATION LTD.
AUTOMOTIVE
SERVICES LTD.
CHINA-ISRAEL
CONSTRUCTION EQUIPMENT AND
FORKLIFTS LTD., importers and marketers of mechanical engineering equipment and
forklifts.
CHIL
MANAGEMENT AND MAINTENANCE VEHICLE FLEETS LTD., management and maintenance
services provided for vehicle fleets and leasing companies.
TIRE DEPOT LTD., importers and
marketers of tires, sole local representatives of TRIANGLE TIRES (China),
APOLLO (India) and VERDESHTEIN (Holland).
Also
partners in 2 public transportation (busses) lines operation, METROPOLIN PUBLIC
TRANSPORTATION LTD. (35%) and METRODAN BEER SHEVA LTD. (20%), which own over
600 busses.
AUTOMOTIVE INDUSTRIES T.R.
(2013) LTD., manufacturers and marketers of trailers, garbage containers and
other precise metal works.
TZVI
ASSETS LTD., holding company.
TZVI
NETA HOLDINGS LTD.,
CASPA
LEASING (2009) LTD.,
CASPA
LEASING LTD., latter 2 companies are Group's leasing companies.
BUXENBAUM
NETA FUND., established 1971, a philanthropic fund, which distributes 25% of
AUTOMATIVE EQUIPMENT's profit. Involved in medical equipment supplying, help to
needy communities, education projects and more.
BANKERS
Bank Hapoalim Ltd., Central
Business Branch (No. 600), Tel Aviv.
Bank Leumi Le’Israel Ltd.,
Principal Branch Tel Aviv (No. 800), Tel Aviv.
Israel
Discount Bank Ltd., Tel Aviv Main Branch (No. 10), Tel Aviv.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject's
controller refused to disclose financial data.
In the business aspect, we assume that subject got
hurt by the entrance of Chinese busses models in the last years into the local
market, as may be seen in the number of busses sold (although the busses market
also increased significantly).
In December 2016 AEV Group signed an agreement for the
sale of its MAN concession and representation (as well as rights to a 21,000
sq. meters plot) to DELEK MOTORS for NIS 120 million. Yet in February 2017,
after not meeting all conditions for the completion of agreement, the deal was
cancelled (mutual consent).
Mr. Tzvi Neta is a well-known businessman and AUTOMOTIVE
EQUIPMENT Group (AEV Group) is long established and enjoys good reputation. Neta
family known to be affluent, also from their real estate holdings, situated in
strategic areas. Besides BUXENBAUM NETA FUND, subject is involved in other philanthropic activities.
In 2008, Neta completed a deal to get full ownership of the
AEV Group, buying Arnon Milchen’s 50% part, for US$ 100 million, after 3 and a
half years earlier Milchen acquire 50% from Neta family for estimated US$ 40
million, exclusive the Group’s real estate assets.
SUZUKI
brand was ranked 5th of overall vehicles sold in Israel in 2016.
During 2010 AUTOMOTIVE EQUIPMENT Group received the representation of ASHOK
LEYLAND trucks.
In March 2016, AEV Group signed
an agreement to sell their concessions for CHRYSLER, DODGE and JEEP to local
FIAT agent Michael Levy and his MEDITERRANEAN CAR AGENCY, for reported
estimated sum of NIS 100 million – NIS 150 million. The transaction was
completed later during 2016.
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.
The trucks market is divided into 3
segments, based on their weight, which are more or less evenly split in terms
of their share in the total market: light trucks (up to 7 tons) where the
"Mercedes" brand is leading in this segment by and large (others are
Volkswagen and Iveco); medium weight trucks (7-16 tons), segment lead by
"Isuzu" trucks, other is DAF; heavy trucks, which considered the most
profitable among vehicle importers, (led by Volvo, others are Mercedes and
Scania).
The spare parts market for trucks is
considered most profitable.
According to estimations, between
30,000 to 40,000 trucks roll on the Israeli roads.
SUMMARY
Notwithstanding
the refusal to disclose financial details, 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 65.05 |
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1 |
INR 90.41 |
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Euro |
1 |
INR 79.82 |
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ILS |
1 |
INR 18.55 |
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 : |
KET |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.