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MIRA INFORM REPORT
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Report No. : |
486185 |
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Report Date : |
18.01.2018 |
IDENTIFICATION DETAILS
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Name : |
TOSAF COMPOUNDS LTD. |
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Registered Office : |
P.O. Box 2633,
Afula , Industrial Zone, Alon Tavor 1812601 |
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Country : |
Israel |
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Date of Incorporation : |
1951 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers,
processors, manufacturers, exporters and marketers of compounds, colors and additives
concentrates for the plastic industry out of basic raw materials and polymers
extracts from the petrochemical industry. |
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No. of Employees : |
Having 530
employees (had 470 employees in 2016, 450 in 2014). Having 1,000 employees
serving the whole International Group (similar to 2016, had 850 employees in
2014). |
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 (30.06.2017) |
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
TOSAF COMPOUNDS
LTD.
E-mail: tosafcom@tosaf.com
Alon Tavor Site:
Telephone 972 4 606 80 00; 642 04
19
Fax 972 4 642 04 23
P.O. Box 2633,
AFULA
Industrial Zone
Alon Tavor 1812601 Israel
Tnuvot Site:
Telephone 972 9 898 46 84
Fax 972 9 898 46 49
P.O. Box 52, KFAR
YONA (4035001)
Industrial Zone
Tnuvot 4283000 Israel
HISTORY
& LEGAL FORMATION
Originally established
as a department in TOSAF – MEGIDES JOSEPH AND SONS FARM (1981) LTD. (originally
founded in 1951). Converted into a private limited company and registered as
such as per file
No. 51-141084-7 on the 05.09.1989 under the name of TIRKOVOT PLASTIYIM M.B.S.
LTD., changed to TIRKOVOT PLASTIC M.B.S. LTD. (or in English translation M.B.S.
PLASTIC COMPOUNDS LTD.), on the 16.04.1992 and on the 07.02.1993 changed to the
present one.
On the 29.10.1993
converted into a public limited liability company and registered as such as per
file No. 52-004021-3.
In January 1994
published a prospectus offering shares to the public, following which shares
started to be trading on the Tel Aviv Stock Exchange.
In 2002, following
a successful tender offer by former parent company WORLD COLOR CORP. B.V.,
subject’s shares were de-listed from trade and subject re-converted into a
private limited company (keeping same latest registration number).
On the 01.01.2003,
all activities of subsidiary TOSAF - MEGIDES JOSEPH AND SONS FARM (1981) LTD.,
were transferred into subject and on 06.11.2005 the subsidiary was legally
merged into subject.
SHARE
CAPITAL
Authorized share
capital NIS 11,870,000.00, divided into: -
11,870,000 ordinary shares of NIS 1.00 each,
of which 6,492,767 shares amounting to NIS 6,492,767.00 were issued.
SHAREHOLDERS
Subject is fully
owned by MEGIDES ASSETS A.M.A 2000 LTD., fully owned by HEMERA INTERNATIONAL
B.V., of Holland, owned by MEGIDES HOLDINGS B.V., 70%, a holding company controlled
by Amos Megides, and by RAVAGO B.V., 30%, of Belgium (who acquired their shares
from Amos Megides in 2001).
DIRECTORS
1.
Amos Megides, Chairman and General Manager,
2.
Ezra Megides,
3.
Menahem Megides, both 2 a/m brothers of Amos
Megides.
PLANTS
MANAGERS
1.
Asaf Ayalon, managing the 2 plants in Alon Tavor,
2.
Gal Froiman, managing the plant in Tnuvot.
BUSINESS
Developers,
processors, manufacturers, exporters and marketers of compounds, colors and
additives concentrates for the plastic industry out of basic raw materials and
polymers extracts from the petrochemical industry.
75% of sales are
for export.
Subject purchases
its raw materials, equipment and machinery from some 35 local and overseas
suppliers.
Among local
suppliers: PETRUS CHEMICALS, ALLIBERT PLAST.
Suppliers in the
IT field: SHAY SHIFMAN INFORMATION SYSTEMS, LIBI SOFTWARE TECHNOLOGIES.
Subject’s clients
are from the agricultural sector, as well as plastic, automotive, electronic,
electrical, construction and other industries.
Among many local
customers are: KETER PLASTIC, PALRIG, STARPLAST, TERAFLEX INDUSTRIES, AMGAT,
TELDOR CABLES, PLASTIV YAKUM, BANIAS, DOLAV DVIR LAHAV PLASTIC, SAPIR-PLASTICS,
GENIGAR PLASTIC PROD
Operating from
rented premises, offices and 2 plants, each on area of 15,000 sq. meters, both
in the Industrial Zone, Alon Tavor, in Afula region (based on our files, Amos Megides
owns at least one of the plant premises), as well as a 3rd plant, on
area of 10,000 sq. meters (rented), in the Tnuvot Industrial Zone (aka
"Moshav Tnuvot", east of Netanya).
Group also is
operating from 7 plants abroad (1 in Turkey, 1 in Holland, 2 in the U.K, 2 in
the USA and 1 in Germany).
Website: www.tosaf.com
Having 530
employees (had 470 employees in 2016, 450 in 2014).
Having 1,000
employees serving the whole International Group (similar to 2016, had 850
employees in 2014).
MEANS
Subject's stock is
valued at US$ 40 million in the 2nd half 2017.
Group’s
consolidated stock was valued at US$ 100 million in 2nd half 2017.
Subject is an
"Approved Enterprise" and as such entitled for State investment grants
and tax benefits. In the framework of approved investment plans totaling NIS 78
million, up until 2001 received grants amounting to NIS 33.7 million, including
an investment of US$ 8.2 million for the extension of subject’s plant in Alon
Tavor, approved by the Israeli Investments Center (IIC) in 1999.
In 2006 and 2008,
the IIC approved investment plans of
NIS 45 million and NIS 100 million, respectively, for the expansion of subject’s plants.
Full financial
statements not disclosed.
There are 7 charges
for unlimited amounts registered on the company's assets (financial assets,
fixed assets and equipment), in favor of the State of Israel, Bank Hapoalim
Ltd. and Bank Leumi Le’Israel Ltd. (last charge placed December 2013, prior
charge placed 2001)
REVENUES
As given by
subject's Accountant:
Subject's sales
(figures in local NIS):
2014 sales were
around NIS 740 million.
2015 sales were
around NIS 770 million.
2016 sales were
around NIS 800 million.
Group's
consolidated sales (figures in US$):
2013 sales claimed
to be US$ 350 million, 70% were for export.
2014 sales claimed
to be US$ 350 million, 75% were for export.
2015 sales claimed
to be US$ 350 million, 75% were for export.
2016 sales claimed
to be US$ 380 million, 70% for export.
Sales in the first
half 2017 were around US$ 200 million, 75% were for export.
2017 sales
projected to be US$ 400 million, 75% for export.
OTHER
COMPANIES
SYFAN SAAD COMPANY
(99) LTD., 98%, manufacturers, exporters and marketers of "SYTEC" polyolefin
and PVC shrink films for display and food packaging applications.
RESINEX ISRAEL
LTD., 70%, importers and marketers of polymers.
TOSAF TECHNOLOGIES
LTD., 100%, investments in technology sector.
TOSAF USA INC.,
100%, USA, operating a plant in the USA.
COLLOIDS LIMITED,
100%, U.K., operating a plant in the U.K.
TOSAF BENELUX
B.V., 100%, the Netherlands, operating a plant in Holland.
TOSAF PLASTIK
SANAYI VE TICARET LTD STI (“TOSAF TURKEY)”, Turkey, 100%, operating a plant in
Turkey.
TOSAF INTERNATIONAL
B.V., Holland.
And several other
smaller foreign subsidiaries.
MEGIDES ASSETS
A.M.A 2000 LTD., parent company, a holding company. A private limited company
(Registration No. 51-291553-9).
TOSAF Group
includes:
TSAF N.V., Belgium
TOSAF ITALY SRL,
Italy
M.A.M. ADVANCED
PACKAGING LTD., 50%, partnered by KETER PLASTICS.
MEGIDES HOLDINGS
B.V., a holding company owned by Amos Megides.
A. MEGIDES
HOLDINGS LTD., a holding company, owned by Amos Megides.
S. H. F. – UPGRADED PLASTIC MATERIALS LTD., controlled
by Megides Family, manufacturers, marketers, exporters and recyclers of raw
materials for the plastic field.
RAVAGO B.V., of
Belgium, dealing in raw materials to the plastic industry.
BANKERS
Bank Leumi Le’Israel
Ltd., Principal Branch Tel Aviv (No. 800), Tel Aviv, account
No. 399400/19.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Bank Hapoalim
Ltd., Netanya Business Branch (No. 167), Netanya.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
Subject is a
leading company in its field in Israel, its competitors are local (KAFRIT
INDS., POLYRAM RAM ON INDS.) and various importers.
Having the
international ISO 9001:2000 quality standard.
In 2000 subject
purchased from Amos Megides the full control of TOSAF-MEGIDES JOSEPH AND SONS
FARM (1981) LTD., in consideration of NIS 10.7 million.
In 2001 it was reported that Mr. Amos Megides
sold 25% of his shares in subject’s parent to the Belgium concern, RAVAGO.
RAVAGO, a holding company which holds companies in the field of raw materials
to the plastic industry.
In March 2010
subject completed the acquisition 25% of SYFAN SAAD COMPANY, a plastic
packaging plant founded in Kibbutz Saad in 1981 and controlled by Kibbutz Saad.
SYFAN 2010 sales were circa NIS 65 million. It also fully owns a subsidiary in
the U.S.A. (SYFAN USA INC.).
During 2014
subject increased its holdings in SAYFAN SAAD to 98%.
In 2010 subject
reached 100% holding in COLOR SERVICE GmbH of Germany, after acquiring 51% in
2003. That joins the acquisition of COLLOIDS of the UK in 2004, of COLOR
PLASTIC of Germany in 2005, of NCM and COLCOM, both of the Netherlands in 2007,
and of COLOR RESIN of the UK in 2009.
In March 2014 it
was reported that subject implemented an IBM sales planning budget software by
SHAY SHIFMAN INFORMATION SYSTEMS and LIBI SOFTWARE TECHNOLOGIES.
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), sales for export
from the manufacturing of Plastic and Rubber products in 2016 rose by 6.3% from
2015, summing up to US$ 2,058 million, which comes after 7% decrease in export
in 2015 from the previous year (compared to 6% rise in 2014 and rise 7.6% in
2013). An 11% increase in export (to US$ 1,125 million) noted in the 1st
half of 2017 compared to the 1stH 2016.
According to the
CBS, import of Plastic and Rubber raw material for the local industry totaled
US$ 2,299 million in 2016, 4% rise from 2015 (rise at same rate in NIS terms),
and totaled US$ 1,256.7 million in the 1st half of 2017, also 4%
increase compared to the 1st half 2016 (in US$ terms, fell 1% in NIS
terms). In 2015, 12% decrease from 2014 was noted (though in NIS terms fell
4.5%), after in 2014 import increased by 4.5% from 2013 (all in $ terms).
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).
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 63.97 |
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1 |
INR 88.13 |
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Euro |
1 |
INR 78.35 |
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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 : |
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
·
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.