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MIRA INFORM REPORT
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Report No. : |
484749 |
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Report Date : |
11.01.2018 |
IDENTIFICATION DETAILS
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Name : |
DEPOTCHEM-AMGAL (CHEMICAL PRODUCTION) LTD. |
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Registered Office : |
2 Tnuva Street, Industrial Zone, Be'er Tuvia Regional Council 8381500 |
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Country : |
Israel |
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Date of Incorporation : |
16.07.1989 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers and importers of chemicals, industrial chemicals, as well
as
agricultural chemicals and allied products, for the water purification (including cleaning substances), food and
printing & paper industries. |
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No. of Employees : |
140 |
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.
|
Source
: CIA |
Company
name & address
DEPOTCHEM-AMGAL (CHEMICAL PRODUCTION) LTD.
Telephone 972
8 861 06 10
Fax 972
8 940 14 39 /44
972
8 861 06 23
Email: main@amgal-chem.co.il
2 Tnuva Street
Industrial Zone
Be'er Tuvia Regional Council 8381500 Israel
HISTORY
& LEGAL FORMATION
A private limited company, incorporated as per file No. 51-140043-4 on
the 16.07.1989.
Early in 1992 company took over the business activities of AMGAL
CHEMICALS LTD., originally established 1979.
Originally registered under the name AMGAL CHEMICAL PRODUCTION (1989)
LTD. In late 2015 subject assumed the business activities of its current parent
company DEPOTCHEM (1989) LTD. (established 1989), following which name changed
to the present name on the 07.12.2015.
SHARE
CAPITAL
Authorized share capital NIS 643,600.00, divided into -
643,600 ordinary shares of NIS
1.00 each, of which 622,569 shares amounting to NIS 622,569.00 were issued.
SHAREHOLDERS
Subject is fully owned by DEPOTCHEM (1989) LTD., owned by CHEMOVIL LTD., fully
owned by EMILIA DEVELOPMENT (O.F.G) LTD., a public limited company, whose
shares are traded on the Tel Aviv Stock Exchange (TASE), controlled (82.3%) by
Oded Feller.
In July 2017 Oded
Feller completed a major transaction, in which EMILIA acquires from him
CHEMOVIL, based on CHEMOVIL company value of NIS 500 million (in a way of a
merger, where the merged company is his private company O. FELLER HOLDINGS
LTD., which holds CHEMOVIL).
In April 2012 DEPOTCHEM completed the acquisition of two companies from Asher Skalsky: Subject and BACTOCHEM LTD.
(established in 1975). According to the media the deal value was US$ 50 million
(divided US$ 30 million for operations and manufacturing facilities and US$ 20
million –to be paid along 5 years- for the goodwill and non-competition), yet
Group's official refused to disclose the deal's numbers, commenting that 'the
numbers' in the media are incorrect.
DIRECTORS
1. Oded Feller, Chairman of the DEPOTCHEM
Group,
2. Asher
Skalsky.
GENERAL
MANAGER
Ms. Iris Fine.
BUSINESS
Manufacturers and importers of chemicals, industrial chemicals, as well
as
agricultural chemicals and allied products, for the water purification (including cleaning substances), food and
printing & paper industries.
All of subject's sales are to sister company DEPOTCHEM-AMGAL LTD., which
markets the products to local customers.
The company imports raw materials for own production.
Subject also assumed on the 01.01.2016 all the commercial activities of
parent company DEPOTCHEM (1989) LTD. (which became a holding company).
Among major clients are local large corporations: MEKOROT WATER CO., THE
ISRAEL ELECTRIC CORP., GAT GIVAT HAIM, GAN SHMUEL FOOD, TNUVA, MILOPRI, GANIR,
STRAUSS GROUP, MA'ARIV, YEDIOTH AHARONOT (latter 2 are local daily newspapers),
etc.
Among other clientele: SHEMEN INDS., FRUTAROM, HADERA PAPER, BROMINE
COMPOUNDS, OSEM, TEVA PHARMACEUTICALS, FERTILIZERS & CHEMICALS, HAIFA
CHEMICALS, ROTEM AMFER NEGEV, , MOR-GAL PLASTIC, TARA DAIRIES, NIRLAT, AVCO CHEMICALS, Y.S. ASHKENAZI AGENCIES,
AROMOR FLAVOURS & FRAGRANCES, B.G. POLYMERS, YENA INDUSTRIESDOR.KY DEVELOPMENT, TAMBOUR, TERMOKIR,
etc.
Among local suppliers: ADAMA MAKHTESHIM, HAIFA CHEMICALS, BROMINE
COMPOUNDS, FERTILIZERS & CHEMICALS, MATERIALS HANDLING, V.M. BACHAR,
APPLIED CHEM, etc.
Following assuming DEPOTCHEM's activities, also sole local
representatives of (among others):
SOLVAY FLOUR,
WACKER CHEMIE, PETER GREVEN, SE TYLOSE, INDULOR, all of Germany,
CIECH, of Poland,
EASTMAN,
REICHHOLD, both of USA,
ASICELSAN, of
Turkey,
POLLMERI EUROPE,
IMIFABI, ERCA, all of Italy,
PANAMA PETROCHEM,
of India,
OXITENO, of
Brazil,
FACI METALEST, of
Spain,
CHEI MEI, of
Taiwan,
YARA, of Norway.
Operating from rented premises (main offices, plant and warehouse), on an
area of 48,000 sq. meters, 13,000 sq. meters of which are built, in 2 Tnuva
Street, Industrial Zone, Be'er Tuvia Regional Council, and from additional
office in 1 Nativ Haofan Street, Re'em Industrial Park (near Bnei Ayish
village).
CHEMOVIL Group headquarters is in 1 Katsenstein Street, Haifa Bay, Haifa.
Website: www.de-am.co.il
Having some 140 employees in subject and sister DEPOTCHEM-AMGAL LTD. (had
110 employees in the beginning of 2015, same as in 2014).
MEANS
Consolidated (subject + sister DEPOTCHEM-AMGAL LTD.) inventory is valued
at NIS 38,000,000 as of beginning of 2017.
Subject and sister company BACTOCHEM LTD. were acquired in 2012 according
to a reported value of US$ 50 million.
Financial
data is included in the consolidated B/S of parent company EMILIA DEVELOPMENT
(O.F.G) LTD., which shows:
NIS
(thousands)
31.12.2016 30.09.2017
ASSETS
Current assets
Cash and cash equivalents 45,180 42,000
Other financial assets 67,190 32,048
Customers 485,225 578,372
Other debtors 36,818 33,035
Stock 250,939 274,109
885,352 959,564
Non-current assets
Fixed assets (net) 287,123 283,780
Goodwill and intangible assets 107,236 104,958
Other non-current assets 308,667 210,998
703,026 599,736
1,588,378 1,559,300
======== ========
LIABILITIES
Current
liabilities 700,050 670,254
Non-current
liabilities 317,092 190,301
Equity 571,236 698,745
1,588,378 1,559,300
======== ========
EMILIA DEVELOPMENT
current market value US$ 239 million.
CHEMOVIL was
acquired by EMILIA DEVELOPMENT according to a company value for CHEMOVIL of NIS
500 million.
In June 2017 EMILIA DEVELOPMENT raised NIS 13.17 million
issuing shares on the TASE.
There are no charges registered on the company's assets.
REVENUES
2016 consolidated (subject + sister DEPOTCHEM-AMGAL LTD.) sales claimed to
be NIS 300 million.
CHEMOVIL Group's
2014 turnover reported to be Circa NIS 600 million.
From EMILIA
DEVELOPMENT (O.F.G) LTD. financial statements, consolidated revenues
attributed to CHEMOVIL LTD. (including subject):
2015 revenues were
NIS 445 million.
2016 revenues were
NIS 454 million, EBITDA NIS 58 million, and pre-tax profit of NIS 26 million.
Revenues for the
first 9 months of 2017 were NIS 360.81 million, making a gross profit of NIS
72.75 million, an operating profit of NIS 24.09 million and a net profit of NIS
16.88 million.
EMILIA DEVELOPMENT
(O.F.G) LTD. consolidated revenues:
2016 revenues were
NIS 1,378.4 million, making a gross profit of NIS 306.64 million, an operating
profit of NIS 55.67 million, a pre-tax profit of NIS 51.3 million and a net
profit of NIS 38.68 million.
Revenues for the
first 9 months of 2017 were NIS 1,158.59 million, making a gross profit of NIS
271.75 million, an operating profit of NIS 73.75 million and a net profit of
NIS 43.16 million.
OTHER
COMPANIES
DEPOTCHEM (1989) LTD., parent holding company (no commercial activities since
transferring them to subject in beginning of 2016), a private limited company
(Registration No. 51-138568-4). Also
holds:
DEPOTCHEM-AMGAL
LTD., 100%, incorporated 1993, marketers of subject's products.
BACTOCHEM LTD., 100%, laboratory, providing analytical and biological
testing services in the fields of microbiology, chemistry, phytopathology and
molecular biology in food, water, environment, agriculture, and pharmaceutical.
LAB PATH LTD., 100%, providing supervision, control, testing and
consulting services to the food and agricultural sectors.
BORA LTD., 100%, agencies of raw materials
for the plastic industry.
CHEMICAL TESTING
LABORATORY LTD.
CHEMOVIL LTD.,
(grand) parent company, a private limited company (Registration No.
51-021268-1), importers, wholesale distributors, transporters and storage of
raw materials to the industry. Also controls, among others (100% unless
otherwise stated):
CHEMOTHAL LTD., providers of road bulk transportation and
logistics of materials (chemicals, gases, fuels, powders, etc.), and
warehousing services.
BULK CHEMICALS
LTD., importers of raw materials.
CHEMINTER LTD.,
represents CHEMOVIL Group internationally, distributors of chemicals in Europe.
TABIB – THE
NATIONAL CO. FOR TREATMENT AND REMOVAL
OF TOXIC WASTE
LTD., 50%, providers of waste treatment,
transportation and disposal services, including handling of hazardous waste (of
all sorts), waste recycling, disposal of medical waste, waste export,
electronic waste, etc. holds 50% of DSHANIM EIN ZURIM ACS LTD, fertilizer
transfer.
CAESAREA POLYMER
INDUSTRIES LTD., developers, manufacturers and marketers of rigid, semi-rigid
and flexible polyurethane systems.
EMILIA DEVELOPMENT
(O.F.G) LTD., a public limited company (registration No. 52-001484-6), an investment
publicly traded company, following the a/m
acquistion of CHEMOVIL, operating via 4 segments: 1) Cosmetics as
private brand (via EMILIA COSMETICS and subsidiaries); 2) Sanitary and liquid
flowing (via MENDELSON INFRASTRUCTURES & INDUSTRIES and subsidiaries); 3)
Services for Industry (CHEMOVIL Group); 4) Other investments.
Main subsidiaries
(100% unless otherwise stated):
EMILIA COSMETICS
LTD., manufacturers, exporters and marketers of personal care
products, cosmetics, toiletries and cleaning products. Holds: EMILIA DISTRIBUTION
& MARKETING LTD., operating wholesale store; EMILIA PERSONAL CARE INC.,
USA, marketing subject’s goods in USA; EMILIA RESOURCES LLC, USA, established
to acquire assets and IP of ALLAN HOLDINGS LLC.
MENDELSON INFRASTRUCTURES & INDUSTRIES
LTD., 48.8%, a public
limited company, current market value 135.8 million, holding company, via
subsidiaries importers, distributors and marketers of pumps,
various sorts of piping and allied accessories, sanitary ware, rubber and
plastic semi-finished engineering products, etc. Owns (100%, unless otherwise stated): MENDELSON – S. BAR LTD., A.B. PROFILON MARKETING LTD., ALEXANDROVITZ ENGINEERING PLASTICS AND
RUBBER - KMN (2005) LTD., PALAD H.Y. INDUSTRIES LTD. (65%), P.H.Y (of
France),
HAMECHADESH INDUSTRIES (MNTS) LTD., ISRAEL
MENDELSON SECURITIES LTD., MENDELSON TZORA ACS LTD. (50%),
EMILIA PALZIV
HOLDINGS LTD., holds 25% in PALZIV EIN HANATZIV ACS LTD., manufacturers,
exporters and marketers of foamed polyethylene.
MAXIMA AIR
SEPARATION LTD., 14.6%, industrial gas company, publicly traded on the TASE,
current market value US$ 60.4 million.
O. FELLER HOLDINGS
LTD.
EMILIA UNDEWRITING
LTD.
EMILIA HOLDINGS
(M.O.F) LTD.
ALBANY BONDED
WAREHOUSES (1982) LTD.
Also hold 7.3% in
the TENE Investment Fund, which is holds shares (in several levels of
investments) in several industrial companies.
Oded Feller &
family also hold investment, real estate and holding companies.
BANKERS
Bank Leumi
Le’Israel Ltd., Haifa Main Branch (No. 876), Haifa.
Bank Hapoalim Ltd., Haifa Business Branch (No. 562), Haifa.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
DEPOCHEM-AMGAL
activities are long established, it is among the leading groups in their field
in Israel.
In
last years we received favorable suppliers' opinion on DEPOCHEM Group.
Subject
is ISO 9001, ISO 14000, ISO 22000 and OHSAS 18001 certified.
Mr. Oded Feller is
a well-known businessman, controlling FELLER Group Holdings. Feller served for
long period as the President of the Haifa and North of Israel Chamber of
Industry and Trade.
CHEMOVIL Group
(which subject is part of), headed by CHEMOVIL LTD., operating since 1959, is a
well-known leading company in its field, enjoying a good reputation in its
field. The Group deals, besides chemicals, in the areas of waste water
treatment and flour mills operation.
In 2007, CHIMOVIL
Group acquired the activities of KIDRON PLASTICS, importers and marketers of raw materials for the plastic industry, after the latter
encountered financial difficulties.
In October 2009 EMILIA
completed the acquisition of CARELINE from PERRIGO ISRAEL PHARMACEUTICALS for
some NIS 180 million, including manufacturing and commercial activities, and
real estate assets (shortly after it EMILIA sold part of the commercial
activities to 3rd party for NIS 85 million). Through EMILIA, he also
involved in investments in many other companies in the industrial fields.
In
February 2010 it was reported that solar energy systems company GREENTOPS will
install a 630kw Photo-Voltaic (PV) system in subject’s plant in Beer Tuvia (on the
plant’s roof), with an investment of NIS 10 million.
In December 2015,
EMILIA DEVELOPMENT signed an agreement to acquire 51% (+option for further
3.9%) of MENDELSON INFRASTRUCTURES & INDUSTRIES LTD. (publicly traded on
TASE, via subsidiaries operating in the piping and allied accessories field),
for NIS 99.45 million. Deal was completed in January 2016, in February realized
its option, and later acquired further shares and reached 58%.
According to Central Bureau of Statistics (CBS) data, investments in
imported machinery & equipment for the Manufacture of Chemicals &
Chemical Products (excl. for
pharmaceuticals and refinery manufacturing) in 2016 summed up to NIS
741.5 million, 36.2 increase from 2015 (after 15% decrease from 2014).
Sales for export
by the Chemicals & Chemical products Industry in 2016 marked 14% decrease
from 2015 and summed up at US$ 6,864 million (US$ 7,969 million in 2015),
significantly lower compared also to 2014 (export US$ 10,976 million) and 2013 (US$
11,248 million). A positive trend noticed in the first half of 2017, with
export rising 16% higher than in the 1stH 2016 to US$ 3,989 million.
According
to the CBS, import of chemical raw materials for the local industries in 2016
fell by 6.1% from 2015, reaching US$ 4,300 million (in local NIS currency
terms, import plunged 7.2% after rising 4.6% in 2015). In 2015 import of
chemicals decreased by 3.8% from 2014 in US$ terms, which follows 2.6% increase
from 2013.
Import
of chemical raw materials in the first half of 2017 rose by 9% compared to
the first half of 2016.
SUMMARY
Good for trade
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.83 |
|
|
1 |
INR 86.28 |
|
Euro |
1 |
INR 76.14 |
|
ILS |
1 |
INR 18.60 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.