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MIRA INFORM REPORT
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Report No. : |
484026 |
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Report Date : |
05.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SASATECH - AGRICULTURAL COOPERATIVE SOCIETY LTD. |
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Registered Office : |
M.P. Merom Hagalil Sasa 1387000 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
03.11.1980 |
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Com. Reg. No.: |
55-000526-8 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Subject is engaged in developers, manufacturers, exporters and marketers of home-care and automotive-care cleaning products, as aerosols, liquids and pastes for household & janitorial, automotive fields, as well as the industrial and institutional fields. Also manufacturing for private brands. |
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No. of Employees : |
170 |
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 : |
Good |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 2.6% per year during the period 2014-16. 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 2017 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
SASATECH - AGRICULTURAL COOPERATIVE SOCIETY
LTD.
(Also
known in short: SASATECH ACS LTD.)
Telephone 972 4 698 77 20
Fax
972 4 698 78 71
E-mail:
sasatech@sasatech.co.il
M.P.
Merom Hagalil
SASA 1387000 ISRAEL
HISTORY
& LEGAL FORMATION
Originally established as a limited
partnership and registered as such as per file
No. 55-000526-8 on the 03.11.1980 under the style SASA TECH.
During 2001, all activities were transferred
to a newly established agricultural cooperative society (ACS), registered as
per file No. 57-003692-1 on the 29.03.2000. Consequently SASA TECH became a
holding partnership.
OWNERSHIP
Subject is fully owned
by SHANIV PAPER INDUSTRIES LTD., a public limited company, whose shares are traded on the Tel Aviv Stock Exchange (TASE),
controlled by:
1. Avraham
and Ms. Ilana Bernat, 41.94% (incl. via fully owned company),
2. Kibbutz Sasa, 24%,
a cooperative society, operating a communal agricultural settlement,
3. Shalom Lax, 7.42%.
On the 31.12.2017
SHANIV PAPER completed the acquisition of 100% of subject from Kibbutz Sasa, in
exchange for 24% of SHANIV, in shares transaction (see MEANS below).
DIRECTORS
1. Oved
Maoz, Chairman,
2. Gil
Kishenovsky, General Manager,
And more.
We assume that following a/m acquisition, there will be changes in the
Board.
BUSINESS
Developers, manufacturers, exporters and
marketers of home-care and automotive-care cleaning products, as aerosols,
liquids and pastes for household & janitorial, automotive fields, as well
as the industrial and institutional fields. Also manufacturing for private
brands.
Also, marketers of personal-care products
manufactured by subsidiary SASA COSMETICS.
Private label products are under the brand
names "Pro" for the institutional sector, "Home Care" and
"Magic" for private market and "Maxol" for cars.
Subject serves as a manufacturer for leading
detergent and chemical manufacturers, amongst them KIMBERLY CLARK ISRAEL, rekkit benkiser, etc.
5% of sales are for export (13% in 2016),
mainly to Europe and Eastern Europe.
Among local clientele: SHUFERSAL,
SUPERPHARM, BITAN WINES, OSHER AD, BURGES BURGER BAR, UNILEVER ISRAEL HOME AND
PERSONAL CARE, ZOHAR COSMETICS, RAMI LEVY SHIVUK HASHIKMA, VICTORY SUPERMARKET
CHAIN, EGGED ISRAEL TRANSPORT, SANO, SHUK RA’ANANA, etc.
Among private brand clientele: HATZI HINAM
supermarket chain (“Perfect” brand).
Sole local representatives of:
SWD RHEINOL, MATO, both of Germany.
HANGSTERFER'S, of the USA.
Operating from offices in Kibbutz Sasa and
from a plant, on rented area of 14,500 sq. meters, in the Dalton Industrial
Zone, Merom Hagalil (Note: premises size is as given to us in mid-2016;
according to subject’s web-site the area is 30,000 sq. meters, perhaps it was
expanded (see MEANS), or it is the plot size).
Note: "Kibbutz" is a typical local cooperative agricultural
settlement/ village.
Having 170 employees (had some 130 employees
in 2016, 120 employees in 2015, 110 employees in 2014).
Having 316
employees in SHANIV Group as of end of 2016.
MEANS
Subject’s financial data published by SHANIV
PAPER as part of a/m acquisition.
Consolidated B/S shows:
NIS
(thousands)
31.12.2016 30.06.2017
ASSETS
Current assets
Cash and cash equivalents 9,142 5,964
Customers 51,958 52,318
Other debtors and current assets 798 663
Stock 16,903 17,332
78,801 76,277
Non-current assets
Fixed assets (net) 18,027 20,943
Other non-current assets 999 1,003
19,026 21,946
97,827 98,223
====== ======
LIABILITIES
Current
liabilities 39,432 38,575
Non-current
liabilities 6,782 7,325
Equity 51,613 52,323
97,827 98,223
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The transaction announced in end of November
2017 where SHANIV acquired subject in consideration of 24% of its share, gave
subject a company value of NIS 70 million.
SHANIV PAPER INDUSTRIES current market value
is US$ 89.2 million.
Stock valued at circa NIS 15 million in end
of 2017.
In 2000, it was
reported that subject completed the erection of its plant in Dalton, in an
investment of NIS 15 million.
In 2009 subject acquired additional 8,000
sq. meters for the future expansion of its plant in Dalton.
Subject is an “Approved Enterprise” and as such enjoys
tax benefits and State incentives.
In 1999, the Israeli Investment Center (IIC) approved US$ 2.8 million investment plan for the
expansion subject’s plant. In 2006 IIC approved an additional grant for
the expansion of subject's plant.
SHANIV PAPER INDUSTRIES LTD. consolidated B/S data shows:
(NIS
thousands)
31.12.2016 30.09.2017
Total assets 308,225 307,952
Equity 128,464 136,367
REVENUES
2012 sales claimed to be
NIS 110,000,000.
2013 sales claimed to be
NIS 120,000,000.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2014 2015 2016
Sales 127,515 141,269 149,735
Gross profit 25,357 31,107 33,689
Operating income 5,319 8,427 8,913
Profit before tax on
income 5,074 8,433 8,724
Net income 5,074 8,433 8,724
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Consolidated first 6 months of 2017 sales were NIS 69,969,000 (8%
decrease compared to the parallel period in 2016), making a gross profit of
NIS 15,198,000, an operating income of NIS 2,037,000, and a net profit of
NIS 1,310,000.
2017 sales claimed
to be circa NIS 145,000,000.
SHANIV PAPER INDUSTRIES LTD. consolidated
sales:
2016 sales were NIS 227,435,000, making a net profit of NIS
14,697,000.
Sales for the first 9 months of 2017 were NIS 176,555,000, making a net
profit of NIS 10,903,000.
OTHER
COMPANIES
SASA COSMETICS -
AGRICULTURAL COOPERATIVE SOCIETY LTD., 100%, manufacturers of cosmetics and
toiletries.
SHANIV PAPER INDUSTRIES LTD., manufacturers, processors, marketers and
exporters of paper and paper raw materials for household products – 7% of
activities in 2016 (15% in 2015), as well as finished paper products (i.e.
tissues, toilet paper, napkins, paper towels, etc. – 93% of activities in 2016
(85% in 2015). Holds:
SHANIV HOLDINGS
LTD., 100%, established 2008, invests in subject's bonds.
SHANIVTOPS ENERGY
LP., 50% (49.5% directly and 0.5% via u/m company), operating in the solar
energy field.
SHANIVTOPS LTD.,
50% managing partner in SHANIVTOPS ENERGY.
Bernat family also own AVNIT DIAM
Kibbutz Sasa also
owns:
PLASAN
SASA LTD., manufacturers, exporters and marketers of armor solutions, including
armored vehicle, airborne armor, naval armor and personal protection armored
systems. Established in 1983, 2012 reported sales US$ 1,100 million, 95% for
export. Owns several subsidiaries.
PLASAN - KIBBUTZ
SASA LP, non-active.
SASA INDUSTRIES -
AGRICULTURAL COOPERATIVE SOCIETY LTD.
SASA SOFTWARE -
AGRICULTURAL COOPERATIVE SOCIETY LTD.
SASA HOLDINGS -
AGRICULTURAL COOPERATIVE SOCIETY LTD.
BANKERS
Bank Otzar Hahayal Ltd., Haifa Bay Branch
(No. 362), Haifa, account
No. 333770.
Bank Leumi Le'Israel Ltd., Haamakim Business
Branch (No. 745), Afula, account No. 340000/06.
Bank Hapoalim Ltd., Nahariya Business Branch
(No. 168), Nahariya, account No. 259990.
A check with the Central Banks’ database did
not reveal any negative information regarding subject’s a/m accounts.
CHARACTER
AND REPUTATION
Nothing
unfavorable learnt.
Subject is
considered to be among the largest cleaning products in the local industry and
enjoys good reputation.
Subject is ISO
9001:2000, ISO 14001:2004, OHSAS 18001:2007 and GMP: ISO 22716-1 certified.
SHANIV is the 2nd largest
domestic paper products manufacturer in Israel.
In the domestic finished paper products
market (valued at NIS 1.15 billion annually, not including for printing),
SHANIV is relatively new player.
The local domestic paper products market is
divided into the "At Home" sector - money value NIS 750 million and
the "Away from Home"/ institutional sector - NIS 400 million.
SHANIV has decided
to emphasize more on the finished products segment (as a manufacturer and
private label products and marketing finished products).
Kibbutz Sasa was
established in 1949 and has 228 members. The Kibbutz also cultivates a large
area of agricultural land, including fruit plantation, operate dairy farming, poultry
etc., and also involved in other business ventures, including a large cowshed
for milk production, and an ice-cream manufacturing business. The Kibbutz is
known to be wealthy, one of the 10 wealthiest Kibbutz's in Israel.
In 2007 it was
reported that rekkit benkiser
will produce "Kalia" washing detergent in subject's plant instead of
in Poland and Portugal.
In 2010 it was reported that subject is
establishing production facility for manufacturing pollution reduction products
for trucks and buses, investing NIS 2 million.
In May 2014 it was
reported that subject implemented ERP software, investing NIS 1 million.
In late 2014
Kibbutz Sasa, via subject, acquired 90% of the activities of CELLANGO CRYSTALLINE
LTD., manufacturing of cosmetics and skin care products, namely concealing
creams, lotions and creams for the face, based on natural extracts of the Golan
Heights fruits. Activities were mainly for export, to private labels of
marketing chains. CELLANGO, established by Dr. Uzi Rise, became part of SASA
COSMETICS. At a later date, subject purchased the remaining 10%, reaching full
ownership.
Negotiations in late 2015
for merger between subject and ZOHAR DALIA, local leading companies operating in
similar fields, ended in dead-end.
In March 2017 it was
reported that subjet will be the main maufacturer for HATZI HINAM supermarket
chain “Perfect” private brand (cleaning products).
According to StoreNext Market
Research survey (based on circa 80% of the sales in the local FMCG bar-coded
market), in 2016 the FMCG market summed up to NIS 40.8 billion, practically a
freeze from 2015, with 0.5% decrease in sales in terms of price, sided by a
mild increase of 0.6% in real terms (the prices index fall by 1.1%), while the
growth in population is 2% per annum. That comes after mild increases in sales
in 2015 and 2014, compared to the previous year.
Food products sale in 2016 witnessed 0.8%
fall in money terms from 2015 and totaled NIS 30.5 billion, beverages sales
rose by 1.5% to NIS 4.5 billion, personal care goods dropped by 0.6% with sales
of NIS 2.8 billion, and sales of home care goods totaled NIS 3.1 billion,
representing 0.2% decrease from 2015.
The FMCG market showed a recovery in the
first half 2017 compared to the first half of 2016, with 2.1% increase, summing
up at NIS 17.27 billion.
The local cleaning and detergents market is estimated at NIS 350 million. The market is mainly
combined from toilet cleaning products (over 30%), floor cleaning products
(over 20%) and bleaching products (around 20%). Most of the market (80-85%) is
controlled by local manufacturers (large part by international brands such as
subject) and the rest from import. Some 65% of sales are to the large marketing
chains.
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 63.39 |
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1 |
INR 85.74 |
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Euro |
1 |
INR 76.74 |
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ILS |
1 |
INR 18.39 |
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 : |
DNS |
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.