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MIRA
INFORM REPORT
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Report No. : |
493251 |
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Report Date : |
22.02.2018 |
IDENTIFICATION DETAILS
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Name : |
PLAZIT
2001 - AGRICULTURAL COOPERATIVE SOCIETY LTD. |
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Formerly Known As : |
PLAZIT PACKAGING AND
PLASTIC PROD |
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Registered Office : |
Gazit 1934000 |
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Country : |
Israel |
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Date of Incorporation : |
29.04.1973 |
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Legal Form : |
limited partnership |
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Line of Business : |
Manufacturers, marketers and exporters of acrylic made boards (extruded
plastic sheets), for the building, furniture, DIY, signposts and billboards
sectors |
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No. of Employees : |
270 |
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
PLAZIT 2001 - AGRICULTURAL COOPERATIVE SOCIETY LTD.
(Also
known as "PLAZIT 2001 ACS LTD.")
Telephone
972 4 662 88 88
Fax 972 4 676 57 84
Email:
plazit@plazit.com
Mobile
Post Yezreel
GAZIT 1934000 ISRAEL
HISTORY & LEGAL FORMATION
Originally established as a
limited partnership, as per file No. 55-000213-3 on the 29.04.1973, under the name
PLAZIT PACKAGING AND PLASTIC PROD
As of the 01.01.2001, the
partnership divided all its activities into two separate cooperative societies,
with the view of splitting the two lines of activities - board manufacturing
and packaging manufacturing:
1. PLAZIT PACKAGING AGRICULTURAL
COOPERATIVE SOCIETY LTD., registered as per file No. 57-003749-9 on the
01.01.2001. This company assumed all packaging manufacturing and marketing
activities, and later these activities were transferred into a new partnership
MADAF PLAZIT PACKAGING.
2. Subject,
registered as an agricultural cooperative society (ACS) as per file No.
57-003748-1 on the 09.13.2000 (though started operations on 01.01.2001).
OWNERSHIP
Subject is fully owned by
PLAZIT INDUSTRIES - ACS LTD., owned by:
1. Kibbutz Gazit, 77%, a
co-operative society, operating a communal agricultural settlement,
2. TENE II FUND, 23%,
an investment fund managed by Dr. Ariel Halperin.
In the beginning of 2008,
TENE FUND acquired 18% of PLAZIT INDUSTRIES ACS (formerly GAZIT INDUSTRIES ACS)
from Kibbutz Gazit, according to reports in consideration of NIS 65 million. In
January 2011 TENE FUND 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 Authority and
bank approvals.
DIRECTORS
1. Yehuda Ben-Haim, Chairman,
2. Alberto (Tito) Asher, General Manager,
3. Ran Ben-Or, of TENE FUND,
4. Eyal Atiya, of TENE FUND,
5. Dan Shein,
6. Shachar Rotem,
7. Oren Lapidot.
And
few others.
BUSINESS
Manufacturers, marketers and
exporters of acrylic made boards (extruded plastic sheets), for the building,
furniture, DIY, signposts and billboards sectors.
94% of subject's sales are
for export in 2016 (similar to 2015 and 2014).
Subject's local clientele
includes KIBBUTZ EIN ZURIM, AKRILIT, GAASH LIGHTING, etc.
All raw materials for production are imported. Among
suppliers: MITSUBISHI, Japan.
Among local suppliers: BORA,
SHANKOL MARKETING.
Operating from premises,
offices, plant and warehouses, owned by Kibbutz Gazit, on built area of 12,000
sq. meters (and further open areas), in Kibbutz Gazit. Also operating from
subsidiary plant in Zagora, Bulgaria, and in Spain.
Note: "Kibbutz" is a typical local cooperative agricultural
settlement/ village.
Website: www.plazit-polygal.com
Having 270 employees as of
2017, of which 115 employees in Israel and 155 employees in subsidiaries in
Bulgaria and Spain (similar to the last previous years).
Having 1,100 employees
serving PLAZIT Group (had 1,000 employees in Group in 2016, the increase is due
to the acquisition of BENDA’s plant).
MEANS
Consolidated
inventories valued at NIS 61,000,000 in mid-2017 (was valued at NIS 70,000,000
in mid-2016, similar to the end of 2014 and the end of 2013). Main reason for
the value decrease is due to fall in raw materials prices.
Consolidated
Total Assets as of 31.12.2016: NIS 274,000,000;
Equity: NIS 174,620,000.
According
to the transaction in the beginning of 2008, TENE FUND acquired 18-19% of
subject's parent PLAZIT INDUSTRIES ACS for NIS 65 million, based on company
value of NIS 360 million (after the money).
Subject
is an “Approved Enterprise” and as such enjoys tax benefits and State
incentives. In 2004, the Israeli Investment Center (IIC) approved US$ 405,000
investment paln for the expansion of the subject’s plant.
In
2007, IIC approved a further expansion plan for subject.
In
2014, IIC approved a further NIS 10 million investment paln for the expansion
plan for subject.
REVENUES
2013 consolidated sales were
NIS 360,000,000, 93% were for export.
2014 consolidated sales were
NIS 400,000,000, 94% were for export.
2015 consolidated sales were
NIS 400,000,000, 94% were for export.
2016 consolidated sales were
NIS 391,000,000, 94% were for export.
We were informed that in
quantity terms, sales rose by 6.3% in 2016 from 2015, but offset in money terms
sue to the devaluation in the Euro currency (against the local NIS currency)
and fall in raw material prices. Subject's controller also informed us that
subject is very profitable (and pays dividends every year).
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
PANCHIM LTD., a Bulgarian
100% subsidiary, manufacturers of extruded Acrylic and Polystyrene sheets and
PMMA granules.
PLAZIT IBERICA PLASTIC
SOLUTIONS, S.A.U., 100%, a plant in Spain.
Also part of PLAZIT Group:
PLAZIT INDUSTRIES ACS LTD.
(formerly GAZIT INDUSTRIES ACS LTD.), parent company, holding company. Also
holds:
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.
MAPAL ACS LTD.,
50%, manufacturers and marketers of custom-made polypropylene and plastic
products.
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.
TENE Investment Funds, private equity firm, controlled by Dr. Ariel Halperin, Ran Ben-Or,
Eyal Atia and Dori Baron, investing chiefly in traditional and mid-tech Kibbutz
industries. It has been investing in several plants, among them are TELDOR
WIRES AND CABLES LTD., CHROMAGEN LTD., OMEN DIE CASTING LTD., S.C.R.
(ENGINEERS) LTD., GADOT CHEMICALS Group.
BANKERS
Bank
Hapoalim Ltd., Afula Business Branch (No. 472), Afula, account No. 99612.
The
First International Bank of Israel Ltd., Afula Branch (No. 111), Afula,
account No. 220620.
Bank
Leumi Le'Israel Ltd., Ha'amakim Business Branch (No. 745), Afula, account No.
41200/07.
A check with the Central
Banks' database did not reveal anything detrimental on subject’s a/m accounts.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
In the recent past we
received favorite suppliers’ recommendations on PLAZIT Group.
Subject complies with the
ISO 9001:2000 and HACCP standards.
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.
TENE Investment
Funds is a private equity firm, investing chiefly in traditional and mid-tech
industries. Main institutional investors in TENE are LEUMI PARTNERS (mainly),
PHOENIX INSURANCE, MENORAH MIVTAHIM Financial Group. TENE manages US$ 500
million and invested in various industrial companies in the framework of 3
funds: TENE
I, TENE II (which includes the investment in subject) 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 acquired
control (52%) in POLYGAL PLASTICS INDUSTRIES LTD. from Kibbutz Ramat Hashofet for NIS 36 million.
During 2011 subject acquired the remaining shares in POLYGAL, reaching
100%.
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 and 43% by POLYRAZ -
PLASTIC INDUSTRIES partnership. Later,
sister partnership MADAF PLAZIT PACKAGING acquired 58% from Maoz Haim part in POLYRAZ - PLASTIC INDUSTRIES partnership.
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), 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 63.81 |
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1 |
INR 90.66 |
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Euro |
1 |
INR 79.94 |
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ILS |
1 |
INR 18.61 |
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
·
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.