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MIRA INFORM REPORT
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Report No. : |
484435 |
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Report Date : |
11.01.2018 |
IDENTIFICATION DETAILS
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Name : |
INTERNATIONAL FLAVORS
AND FRAGRANCES INGREDIENTS LTD. |
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Registered Office : |
Mobile Post Megido, Givat Oz 1922500 |
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Country : |
Israel |
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Date of Incorporation : |
02.07.1982 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Manufacturers, marketers and exporters of
aroma chemicals, specializing in raw materials, flavors and fragrances for
the food, detergent and cosmetics industries. |
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No. of Employees : |
96 6,900 [IFF Group Worldwide] |
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 & address
Correct Name: INTERNATIONAL
FLAVORS AND FRAGRANCES INGREDIENTS LTD.
(Also
trading as: IFF INGREDIENTS LTD., and as
AROMOR FLAVORS AND
FRAGRANCES LTD.)
Telephone
972 73 260 77 00 /77
Fax 972 4 642 50 52
972
73 260 77 23
Email: mrkt@aromor.com
Mobile
Post Megido
Givat Oz
1922500 Israel
HISTORY
& LEGAL FORMATION
Originally established as a limited partnership under the name of AROMOR
CHEMICALS INDUSTRIES GIVAT OZ, registered as per file No. 55-000635-7 on the
02.07.1982.
As of the 01.01.1994, the partnership became a holding company and all its
industrial activities were transferred to subject, which was registered as a
private limited company as per file No. 51-189894-2 on the 22.12.1993, under
the name AROMOR FLAVORS AND FRAGRANCES LTD., which changed to the present name on
the 04.12.2017.
SHARE CAPITAL
Authorized share capital NIS 3,000,000.00, divided into -
2,999,999 ordinary shares (2,346,541 shares issued),
1 golden share (issued), all of NIS 1.00 each, of which shares amounting to
NIS 2,346,542.00 were issued.
SHAREHOLDERS
Subject is fully owned by INTERNATIONAL FLAVORS &
FRAGRANCES INC. (IFF), of the USA, a public limited company traded on the New
York Stock Exchange (NYSE:IFF).
In January 2014 IFF acquired subject from its former
shareholders (Kibbutz Givat Oz – 50%, and private investors – 50%), for the
total sum of US$ 102.6 million.
DIRECTORS
1. Richard
A. O'Leary, CFO of IFF,
2. Jeroen
H.M. Van Noorden,
3. Robert
Gerard Anderson.
All Directors are of Holland.
GENERAL MANAGER
Eyal Azulai.
BUSINESS
Manufacturers, marketers and exporters of aroma
chemicals, specializing in raw materials, flavors and fragrances for the food,
detergent and cosmetics industries.
Some 99% of sales are exports, to Europe, Asia,
North and Latin America.
Among local suppliers: GADOT CHEMICALS,
DEPOTCHEM AMGAL, DANOR – DANEX, HATAVOR TRANSPORT, PAZGAS, TAGAD
CHEMICALS, TRIO AIR, ELCON RECYCLING CENTER, etc.
Operating from premises (offices, warehouse and
plant), owned by the Kibbutz Givat Oz, on an area of 16,000 sq. meters, in
Kibbutz Givat Oz, a locality in the Yzre'el Valley, at the Northern part of
Israel.
Website: www.aromor.com
Having 96 employees (had 80 employees in the beginning
of January 2014). Having 6,900 employees serving IFF Group worldwide.
MEANS
In January 2014 IFF paid US$ 102.6 million for subject.
Stock was valued at NIS 22,000,000 in 2012. Current stock value not
forthcoming.
Subject enjoys the financial stability of parent company INTERNATIONAL
FLAVORS & FRAGRANCES INC., whose B/S main indicators show:
(US$
millions)
30.09.2017 31.12.2016
Total assets 4,520.44 4,016.98
Equity 1,757.31 1,626.24
INTERNATIONAL FLAVORS & FRAGRANCES INC. current market value
US$ 12.81 billion.
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives. In 2001, the Israeli Investment Center (IIC) approved a US$
704,000 investment plan for the expansion of subject’s plant.
There is 1 charge for an unlimited amount registered on the company’s
assets.
REVENUES
2017 sales claimed to be around US$ 56,000,000, 99% of which for export.
INTERNATIONAL FLAVORS & FRAGRANCES INC. revenues:
2014 sales were US$ 3,088,533,000, making a net profit of US$ 414,543,000.
2015 sales were US$ 3,023,190,000, making a net profit of US$ 419,250,000.
2016 sales were US$ 3,116,350,000, making a net profit of US$ 405,030,000.
First 9 months of 2017 sales were US$ 2,544,090,000, making a net profit of
US$ 335,820,000.
OTHER COMPANIES
INTERNATIONAL FLAVORS & FRAGRANCES INC. (IFF), parent company,
developers, manufactures and marketers flavors and fragrances for the food, beverage,
personal care and household products industries. The company operates in two
business segments: Flavors and Fragrances. Having many subsidiaries.
IFF’s subsidiaries in Israel (besides subject):
BKF VISION LTD.
K-VISION
CONSULTING AND INVESTMENTS LTD.
M.P. EQUITY
HOLDINGS LTD.
INTERNATIONAL
FLAVORS AND FRAGRANCES I.F.F. (ISRAEL) LTD.
BANKERS
Bank
Leumi Le'Israel Ltd., Main Haifa Branch (No. 876), Haifa, account
No. 340600/30.
A check with the Central Banks' database did not reveal
anything detrimental on subject’s a/m account.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
This is a veteran
business.
In February 2014 subject was awarded the 'Outstanding Exporter' award by the Ministry of
Economy (one of the 8 Israeli export companies that were
awarded) for the remarkable 2012 rise in sales for export.
IFF is among the
leading companies in its field.
According to a
report from January 2015, IFF will keep operating subject’s plant in Givat Oz
for the next 15 years (and it will be not transferred abroad).
Subject is ISO 9001 and ISO 14000 certified.
During 2017
subject closed its US subsidiary AROMOR FLAVORS AND
FRAGRANCES INC.
From the Ministry
of Economy publication, total estimated revenues of the local Chemical &
Oils Industrial branch in 2012 amounted to NIS 120 billion (comprising some 30%
of Israel’s total industrial turnover), divided into: Refinery, Petrol &
Petrochemicals - NIS 55 billion; Pharmaceuticals - NIS 32 billion; Sub-branches
– NIS 22 billion (incl. industrial chemicals, pesticides & disinfections
materials, and fertilizers); Others – NIS 11 billion (incl. paints, cosmetics,
cleaning materials and other chemistry products).
The revenues were
generated from some 115 plants in the branch.
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 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).
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 63.83 |
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1 |
INR 86.28 |
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Euro |
1 |
INR 76.14 |
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ILS |
1 |
INR 18.60 |
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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PRI |
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Report Prepared
by : |
TPT |
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
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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.