MIRA
INFORM REPORT
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Report Date : |
25.01.2012 |
IDENTIFICATION DETAILS
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Name : |
ARLIKTEX LTD. |
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Formerly Known As : |
ARLIKTEX WEAVING INDUSTRIES LTD |
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Registered Office : |
P.O. Box 276 (56101) 21 Shabazi Street Industrial Zone Yehud 56230 |
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Country : |
Israel |
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Date of Incorporation : |
02.01.1961 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
importers, exporters, and marketers of home textile (fabrics, tablecloths,
bed linen, household furnishings, etc). |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
ARLITEX LTD
Correct Name:
ARLIKTEX LTD.
Telephone 972 3 536
06 45
Fax 972 3
536 16 93
P.O. Box 276 (56101)
21 Shabazi Street
Industrial Zone
YEHUD
56230 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as
per file No. 51-027199-2 on the 02.01.1961.
Originally registered under the name of
ARLIKTEX LTD., which changed to ARLIKTEX WEAVING INDUSTRIES LTD., on the
06.01.1986.
Then early in 1989 business activities were
taken over by ARLIKTEX WEAVING INDUSTRIES (1988) LTD., following which subject
became non-active and changed name to ARLIKTEX HOLDINGS LTD on 09.02.1989.
Some years later company became active
again, this time as an exporter and as manufacturer (see hereunder).
On the 30.12.1998 subject changed its name
back to ARLIKTEX LTD.
SHARE CAPITAL
Authorized share
capital NIS 12.00, divided into -
16
management shares,
1
deferred share,
119,983
ordinary shares, all of NIS 0.0001 each,
of which shares
amounting to NIS 11.1013 were issued.
(Note: The currency in share capital was
originally in Old Israeli Shekel whose nominal value was 1 thousandth of
the current New Israeli Shekel (NIS), converted in 1986).
SHAREHOLDERS
1.
Zelig Jerushalmi, 50%,
2.
Arieh Katzengold, 50%,
3.
Zvi Klementino, holding 1 single deferred share.
DIRECTORS & JOINT GENERAL
MANAGERS
1.
Zelig Jerushalmi,
2.
Arieh Katzengold.
BUSINESS
Manufacturers,
importers, exporters, and marketers of home textile (fabrics, tablecloths, bed
linen, household furnishings, etc).
50% of sales are
export.
Also operating a
retail chain store with 5 branches under the name "Darlain".
Sales (beside the
retail chain stores) are to hotels, institutional market and marketing chains
in Israel and abroad.
Subject holds the
franchise for linen of the Israeli football clubs.
Among clientele
are the hotel chains HILTON ISRAEL, DAN HOTELS, SHERATON MORIA, HOLIDAY INN,
ISROTEL and others, and medical/ healthcare bodies e.g. SHEBA MEDICAL CENTER
TEL HASHOMER, HADASSA MEDICAL CENTER, MISHAN, and many more.
Operating from
owned premises (office, plant and warehouse), on an area of 2,000 sq. meters,
in 21 Shabazi Street, Industrial Zone, Yehud.
Having 25
employees (same as in 2010).
Also using sewing
workshops outsource (over 100 employees, main local suppliers).
MEANS
Financial data not
forthcoming.
Subject is an
“Approved Enterprise” and as such benefits from government financial assistance
(e.g. tax benefits).
There are 4
charges for unlimited amounts registered on the company's assets (financial and
fixed assets), in favor of Israel Discount Bank Ltd. and Bank Hapoalim Ltd.
REVENUES
Sales figures not
forthcoming.
According to a media report from February 2008, 2007 sales were over
NIS 40,000,000, of which about half were for export.
BANKERS
Israel Discount
Bank Ltd., Lev Dizengoff Branch (No. 147), Tel Aviv.
Bank Hapoalim
Ltd., Yehud Branch (No. 617), Yehud.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject's officials
refused to disclose financial data.
In general it should be noted that the on-going
global economic crisis has been negatively affecting local export-oriented
plants, especially those exporting to the USA, as well as Europe and other
countries. Also, local export-oriented plants have been significantly hit by
the sharp devaluation of the US$, as well as the €, against the local NIS
currency over the last couple of years. During the recent years subject’s
workforce dropped continuously (had 65 employees in year 2000). In January 2008
it was reported subject laid-off 10 employees due to the US$ devaluation.
Subject is a
veteran family business, well known in its field.
In the past,
subject manufactured heavy canvas fabrics for military purposes.
In September 2005
it was reported that subject invested NIS
In August 2007 it
was reported that subject invested NIS
In May 2010 it was reported that subject is investing NIS
1 million in development of new collection –"Darlain Kids" and "Darlain
Baby" and in its advertising. Subject expects that sales from these lines
will contribute NIS 5 million in the next couple of years. In addition, it is
reported that subject opens a new flagship store (on 300 sq. meters) in Yehud
Industrial Zone, investing NIS 1.5 million.
Sales by local Textile and Fashion Industries experienced
decrease in sales over the last couple of years. The output by the local Textile
and Clothing industries in 2009 fell down by 13% from 2008. Some 60% of the
textile industry production is sold in the local market and the rest for
export. Most exports were the North American markets (some 50%), and the
industries suffered from the global economic crisis, mainly in the USA, as well
as the slow-down in local market.
In 2010 sales for export of the Textile, Clothing &
Leather industries improved just slightly, with 3.5% increase from 2009,
reaching US$ 916.1 million.
The local industry has been in state of crisis during last
decade in face of amounting import from foreign competitors with cheaper
production costs, forcing streamlining process, plants closure, and mostly
resulting in the shift of textile manufacturing to low labor cost countries.
The number employed in the Textile Industry keeps falling: some 1,600 workers
were dismissals during 2008, and in 2009 over 1,900 employees are expected to
be laid-off. There are around 14,000 employed in the textile sector in some 130
plants.
According to Central Bureau
of Statistics (CBS), import of fabrics and yarns rose in 2010 by 16.6% and reached US$
684.5 million, reflecting the recovery in general in the local economy in 2010
(import fell in 2009 by 17.2% from 2008). The trend
continued according to the first 8 months of 2011 data: import rose 6.5%
comparing to 2010. Chinese production
comprises the largest portion of imported textile goods followed by France,
Italy, Hong Kong and Turkey. The increase in imports emanates from the exposure
to foreign markets policy by the State.
From CBS data,
import of Household Utensils in 2010 rose by 15.8% from 2009 summing up to US$
549.3 million, comparing to US$ 474.2 million in 2009 and similar to 2008
level. The growth trend continued in the first 8 months of
2011 –close to 8% rise (compared with 2010), totaling US$ 406.3 million.
The local
household products market is considered highly competitive after reaching
market saturation. It includes household textile, tableware and kitchenware and
utensils, bath accessories and ornaments &decorative items, ceramic and
glass ware, etc. According to estimations, the local household products market
volume reaches NIS 2.5 – 3 billons annually (of which circa NIS 1 billion for
“home textile”), and includes retail, wholesale, institutional markets (Retail
chains capture 30% of the market share, specialization stores 20%, while the
institutional and workers unions sector has 50% share).
SUMMARY
Notwithstanding the refusal to disclose
financial details, considered 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 |
Rs.49.97 |
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1 |
Rs.77.74 |
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Euro |
1 |
Rs.65.09 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.