|
Report Date : |
27.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
AL SRAD LTD. |
|
|
|
|
Formerly Known As : |
IRANI GROUP |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
15.05.1987 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, importers and marketers of clothing, fashion wear and footwear for adults and children. |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
AL SRAD LTD.
(Also known as IRANI GROUP)
Telephone 972 3 681 62 58
Fax 972 3 681 62 57
84 Ben Zvi Road
Panorama Building
TEL AVIV 6810431 ISRAEL
A private limited company
incorporated as per file No. 51-119929-1 on the 15.05.1987, under the name A.L.
SRAD MARKETING AND DISTRIBUTION LTD., which changed to present name on the
23.06.1988.
Authorized share
capital NIS 2,640.00, divided into -
2,640
ordinary shares of NIS 1.00 each,
of which 186
shares amounting to NIS 186.00 were issued.
Subject is fully
owned by MIKHMORET YELLOW LTD., owned by the Irani Family (brothers Roni Irani,
Joseph Irani, Eitan Irani and sister Vivi Irani).
1. Roni Irani, Chairman and General Manager,
2. Joseph Irani.
Subject, directly
and via subsidiaries, operate as manufacturers, importers and marketers of
clothing, fashion wear and footwear for adults and children.
Group is operating
retail store chains, under the names:
"Factory
54" - footwear, apparel and other fashion and sporting items - 6 stores,
plus 1 outlet operated directly by subject),
"Paul &
Shark", apparel, 1 store operated directly by subject
"Armani
Jeans", Jeans, 2 stores operated directly by subject
"Diesel"
- for "Diesel" jeans, 2 stores and 38 points of sale,
"Jeans
Bar" - for “Levi’s” jeans, 6 stores, plus via affiliate “Factory
“Original's"
- men's and women's comfort footwear, 20 stores.
Among clients are
marketing/ retail chains, mainly: H&O FASHION, NEW HAMASHBIR LAZARCHAN.
Sole local agents
of (representation of some agencies is by other companies in the Group - see more
in OTHER COMPANIES below):
FILA, DIESEL,
ASSICS, LOTTO, PAPA JEANS, GEOX, all of Italy,
CHEVIGNON, of
France,
ROCKFORT, LEVI'S,
FISHER PRICE, all of the U.S.A.
ECCO, of Denmark,
BIRKENSTOCK, of
Germany
Also holds
exclusive concession for MISS SIXTY (fashion), TEVA (shoes), ENERGY (fashion),
kids branded shoes of "Disney", "Batman",
"Bratz", etc
In September 2011
it was reported that Group received the representation of 10 fashion brands:
MARC JACOBS,
ARMANI JEANS, PAUL & SHARK, M-MISSONI, MICHAEL KORS, RED ZENGA and ZENGA
SPORT, VALENTINO, CK UNDERWEAR, REPETTO.
Among local
suppliers (incl. buying office services overseas): S. SHENHAV TEXTILE, FC
INTERNATIONAL TRADE (TEXTILE), TEXTILE CONNECTIONS, etc.
Operating from
rented premises (shared by other Group members), on an area of over 2,500 sq.
meters, in 84 Ben Zvi Road, Panorama Building, Tel Aviv and from stores
nationwide.
Having
500 employees in subject (similar to 2011, had 400 employees in 2009) and 700
employees serving IRANI Group.
Financial data not
forthcoming, however IRANI Group is known to be financially solid.
There are 13
charges for unlimited amounts registered on the company's assets (financial and
fixed assets), in favor of Israel Discount Bank Ltd. and Bank Leumi Le’Israel
Ltd. (last charge placed October 2010).
(Note:
IRANI Group refers mainly to subject, its subsidiaries and other companies
co-owned by Irani family - see below OTHER COMPANIES)
IRANI
Group 2006 consolidated sales reported to be NIS 340,000,000.
It was reported
it ended 2006 with net profit of NIS 15,000,000-NIS 20,000,000.
IRANI
Group 2007 consolidated sales reported to be NIS 442,000,000.
IRANI
Group 2008 consolidated sales claimed to be between NIS 400,000,000 – NIS
500,000,000.
IRANI Group 2009 consolidated sales claimed to exceed
NIS 450,000,000.
IRANI Group 2010 consolidated sales claimed to exceed
NIS 450,000,000.
IRANI Group 2011 consolidated sales claimed to exceed
NIS 500,000,000.
(Note: “reported”
is based on media publications; “claimed to be” is data given by subject’s
officials).
The Irani Family
also controls:
POLYMODE (1994)
LTD. (known as DIESEL), 75% by subject, importers and marketers of clothes and shoes,
specializing in jeans products, sole local agents of “Diesel Jeans”, “Miss
Sixty” and “Energy”.
POLYMODE D.F.
LTD., fashion accessories.
I. A. IL LTD.,
74.5%, owned by the Irani Family, importers,
marketers and retailers of men's and women's comfort footwear, operating under
the name "Original's", and sole representatives of "Asics"
sports ware and shoes.
BLUES VINTAGE LTD., fully owned by Avraham Irani (father of subject’s
shareholders), importers and marketers of jeans products, sole local agents of
“Levi’s Jeans”. Also operating 13 apparel retail chain stores
("Jeans Bar").
JAMES RICHARDSON - AL SRAD, LIMITED PARTNERSHIP, 25%, operating 3 duty free
apparel shops in the Ben Gurion International Airport.
J.R-AL SRAD MANAGEMENT LTD.
IRANI INVESTMENT CO. LTD.
AVRAHAM IRANI INVESTMENTS & TRADE CO. LTD.
MIKHMORET YELLOW
LTD. parent company, a holding company.
ATID CUSTOM CLEARING AND FORWARDING LTD., customs clearing and forwarding
agents,
AL-SRAD IMPORT AND MARKETING (1991) LTD.
AL-SRAD INDUSTRIES
LTD., real estate.
Bank Leumi
Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
U Bank Ltd., Tel
Aviv Branch (No. 101), Tel Aviv.
Israel Discount
Bank Ltd., Main Branch (No. 010), Tel Aviv.
In September 2008 it was reported that THE
BASIC SHOP sued subject and subsidiary POLYMODE for NIS 2 million, on the
ground that THE BASIC SHOP was excluded from distributing the brand name jeans
"Diesel".
We found no further information on this
matter.
Apart from that,
nothing unfavorable learnt.
Subject is
considered one of the leading companies in their fields in the local market. In
the jeans area, subject is among the leading local players with
"Diesel" and “Levi’s” brands and via "Factory 54", in an
estimated yearly market volume of NIS 500 million (reported sales of
"Diesel" in 2009 were NIS 120 million).
AL SRAD Group is
the 2nd largest advertiser in the local fashion market.
In 2005 the AL-SRAD
Group received the concession for “Levi’s” and established BLUES VINTAGE LTD., after TANGO LTD., the former local agent, lost its
concession. The IRANI Group invested resources in promoting the “Levi’s” brand
which was the top leading one in Israel for many years, but then collapsed
(after new brands entered).
Subsidiary I. A.
In March 2006, it
was reported that subject signed a cooperation agreement with Shabtai Mamon
(TOP MAN) for joint import of fashion brands of “Sixty Group”.
In 2006, the IRANI
Group acquired 50% of SPORT WERTHEIMER, among the leading local sporting goods
chains, according to an estimated company value of NIS 15 million. SPORT
WERTHEIMER had reported turnover is NIS 65 million.
In June 2012 it
was reported that the Wertheimer family re-acquired the 50% held by IRANI Group
of SPORT WERTHEIMER (according to the report having 31 stores and over NIS 100
million turnover). The transaction's price is not forthcoming.
According to
reports, in 2007 subject opened a new concept jeans store in Tel Aviv, with
investment of US$ 900,000 (including a advertising), and invested US$
In February 2008, IRANI Group
reportedly invested NIS 2.5 million in a new 900 sq. meters prestigious branch
for “Factory
In April 2008, it
was reported that ECCO of Denmark gave IRANI Group the concession for selling
the ECCO shoes in Israel. It was reported that the Group’s flagship store was
opened in the Arena Shopping Mall (4,000 sq. meters store) in Herzliya with an
investment of US$ 13 million, and 5 more stores are planned to be opened
countrywide.
In September 2008 IRANI Group launched an
outlet for brands in Bilu Center, with US$ 3 million investment, that is on top
of US$ 2 million investment in the
participation by their landlord (ISRAEL MALLS). 150 brands will be sold, of
subject as well as other leading brands of other importers. The Group also
plans to open a large “Factory
In November 2008 IRANI Group reportedly lost
the “Tony Mora” footwear brand to Y.A. MARKETING, after subject’s Group did not
wish to invest in the development and expansion of the brand.
In November 2008 it
was reported that I. A. IL will open an “Asics” concept store in Tel Aviv Port with an
investment of NIS 600,000.
In April 2009 it was reported on NIS 2.5
million advertising campaign for the Group’s brands.
In July 2009 it was
reported that subject together with Avi Avigdor purchased 50% of FEETMIND,
representatives of FITLOPS, a flip flops brand.
According to a report
from September 2010 the local “Levi’s” brand annual sales
amount to NIS 44 million, of which NIS 32 million directly via subject’s Group
stores.
In December 2010 it was reported that IRANI
Group rented a space in the Sarona Compound of 373 sq. meters and is investing
NIS 3 million in the store it is intending to open there.
In mid 2010 Group received the
representation of PAUL & SHARK, and together with the a/m brands the Group
received lately, opened 3 new stores in the Ramat Aviv Mall of PAUL & SHARK,
ARMANI JEANS and a Factory 54.
In April 2011 group received the
representation of FISHER PRICE clothing and shoes, and in June 2011 it was
reported that group opened a kids footwear chain store under the name 'Cube',
in which Group's shoe brand will be sold for kids, first store in Petach Tikva,
intending to reach 8 stores.
Subject cooperates with JAMES RICHARDSON,
the leading Duty-Free retailer in Israel's international gateway, in the
fashion compound in the Ben Gurion International Airport. In March 2012 it was
reported that the two are going to open jointly in summer 2012 2 shops in the
Airport compound of 'Victoria Secret Beauty Accessories', each shop with
investment of NIS 1 million. The partners won the Ben Gurion Airport tender to
operate 'Victoria Secret' duty-free shop.
In June 2012 it was reported that JACQUES
COBE, which operates a lingerie shop in the Airport (in the non-duty free
area), filed a motion to the Petach Tikva District Court to halt a/m tender,
claiming he the winning partners intend to deprive JACQUES COBE from receiving
15% of revenues.
According to reports from the beginning of
2012, total revenues of the local fashion market are NIS 10 billion per annum.
Based on surveys, around 50% and more is women's fashion.
Moreover, 40% of fashion stores in Israel belong to fashion chains, the rest
being private shops.
Despite the fears
due to the slow-down trend in the local economy, mainly since mid 2011, sales
by the local fashion –clothing and footwear- branch in 2011 witnessed a growth.
The income of fashion chains (which covers 1,350 shops, the major chunk of
fashion sales in Israel) summed up to NIS 4.52 billion, representing a 5.7%
rise from 2010 in money terms. Sales during the year characterized in ups and
downs, though eventually they came higher than 2010, a year which was better
than 2009, when the branch suffered from slow-down (coupled with the general
local economic environment) and overall sales indicators were negative. 2010 sales were only marginally positive.
Sales
have been also influenced by the entrnce of new international fashion players to the
already highly competitive local market (GAP, H&M in 2009/2010, Forever 21
in 2011).
According to sources in the local fashion branch, in recent months the
branch entered
again a freezing mode. It may be explained by several factors, including the
present slow-down in local economy, the fierce competition and more.
According
to the Central Bureau of Statistics (CBS), private consumption expenditure by
Israeli households in 2011 in clothing, footwear and personal effects rose by
mere 1.3% from 2010, after a 9.5% increase from 2009.
According to CBS, import of Clothing and Footwear in 2011
kept the rising trend from 2010: import rose by close to 19%, after rising
13.4% in 2010 from 2009, summing up to US$ 1,707.3 million (in 2009 the local
market experienced a slow-down). Most import comes from China. Main other
countries of origin for textile goods are France, Italy, Hong Kong and Turkey,
Spain and the U.S.A.
Good for trade engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.07 |
|
|
1 |
Rs.88.96 |
|
Euro |
1 |
Rs.71.40 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.