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Report Date : |
18.11.2013 |
IDENTIFICATION DETAILS
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Name : |
ROSY BLUE SALES LTD. |
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Registered Office : |
1 Jabotinsky Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 5252001 |
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Country : |
Israel |
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Date of Incorporation : |
08.05.1988 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Dealers,
Processors, Polishers, Importers, Exporters And Marketers of Diamonds, Mostly
Princess Diamonds. |
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No. of Employees : |
15,000 Group employees worldwide |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
israel - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. It depends on
imports of crude oil, grains, raw materials, and military equipment. Cut diamonds,
high-technology equipment, and agricultural products (fruits and vegetables)
are the leading exports. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. 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. The
economy has recovered better than most advanced, comparably sized economies. In
2010, Israel formally acceded to the OECD. Natural gasfields discovered off
Israel's coast during the past two years have brightened Israel's energy
security outlook. The Leviathan field was one of the world's largest offshore
natural gas finds this past decade. In mid-2011, public protests arose around
income inequality and rising housing and commodity prices. The government
formed committees to address some of the grievances but has maintained that it
will not engage in deficit spending to satisfy populist demands.
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Source : CIA |
ROSY BLUE SALES
LTD.
Telephone 972 3 575 05 20
Fax 972
3 575 08 36
1 Jabotinsky
Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 5252001 ISRAEL
A private limited
company, incorporated as per file No. 51-129366-4 on the 08.05.1988.
Subject is part of
ROSY BLUE Group, established 1960.
Originally
registered under the name R.B. DIAM
Authorized share
capital of NIS 10,000.00, divided into:-
10,000 ordinary shares of NIS 1.00
each,
of which 100 shares amounting to NIS 100.00
were issued.
1. ROSY BLUE ENTERPRISES SARI, 70%,
of ROSY BLUE Group, an international diamond firm, headquarters in Belgium,
2. Sumin Mehta, 15%, of Belgium,
3. Farik Anish, 15%.
1. Sumin Mehta, General Manager,
2. Amish Mehta,
3. Farik Anish.
Dealers,
processors, polishers, importers, exporters and marketers of diamonds, mostly
princess diamonds.
Operating from
rented office premises, on an area of 300 sq. meters, in 1 Jabotinskyi Street,
Diamond Exchange, Maccabi Building (Middle Floor), Ramat Gan.
Number of employees
not forthcoming.
According to a
report from 2007, ROSY BLUE Group has some 15,000 employees worldwide.
Financial data not
forthcoming, known to be financially solid.
ROSY BLUE Group is a DTC (Diamond Trading
Company) Sightholder.
There are 4
charges for unlimited amounts registered on the company's assets (all assets),
in favor of Bank Leumi Le'Israel Ltd. and Israel Discount Bank Ltd. (last
charge placed June 2000).
According to the data published by the
Israel Supervisor on Diamonds in the Ministry of Industry & Trade, export
of polished diamonds by subject (actual overall sales presumed to be higher, as
there are local sales of polished diamonds and may have sales of rough diamonds
as well), were as follows:
2009 sales for export (net) were US$ 35,000,000.
2010 sales for export (net) were US$ 67,000,000.
2011 sales for export (net) were US$ 85,000,000.
2012 sales for export (net) were US$ 74,000,000.
ROSY BLUE Group, established 1960, originally established in Mumbai,
India and headquartered in Belgium, among the world largest manufacture of
high-quality polished diamonds and finished jewellery. According to a report from 2007, ROSY BLUE Group had annual
turnover of US$ 1.7 billion.
Bank Leumi Le'Israel Ltd., Diamond Exchange
Branch (No. 629), Ramat Gan.
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Nothing
unfavorable learned.
Subject's official
refused to disclose financial and employee data.
This is a veteran
family diamond business, enjoying good reputation in the branch, part of the
renowned ROSY BLUE Group.
In November 2003 it
was reported that subject received an Esteem Badge from the Israel-Asia
Friendship Chamber, for its large export volume.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 11th in the 2012 list of
Israel's 25 largest polished diamonds exporters. Subject was ranked 10th
in the 2011 list, 11th in 2010 and 14th in 2009.
An affair of an
underground bank has been shocking the local diamond branch, after in late
January 2012 Police raided the Diamond Exchange (after a long undercover
operation), arrested several individuals for investigation, caught diamonds and
various assets worth NIS millions, and blocked several bank accounts. It is
suspected that a group of people, including diamond dealers, run an illegal
bank in the Diamond Exchange compound for loans, money transfer abroad based on
fictitious transactions and exchange in volume of NIS 1 billion for several
years. The affair has already led to several of reported bankruptcies of local
diamond firms, a decrease of up to 70% in transactions in 2012, frozen bank
accounts, a paralysis (especially in purchase of raw diamonds) even with fear
of the a collapse of the sector, while dealers –local and foreign- face
uncertainty.
In March 2012 the
Police decided to lower the profile of the investigation for a while a result
of the big pressure from the diamond branch (to stop the continuing damage
inflicted) and the Government (who is losing US$ hundred millions from decrease
in tax collection). In November 2012 the Police and Tax Authorities recommended
on indictments against the 25 suspects in the affair, among them diamond
dealers, for the said suspicions and obstruction of the investigation.
Export of polished
diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered
in 2010 and mainly in 2011 from one of the worst depressions in the global
diamond sector due to the economic crisis in global markets that erupted in
2008. The sector experienced almost an entire freeze and collapse in sales of
about 70% in the peak of the crisis. While the global diamond industry
experienced major declines during 2012, Israel saw a steady improvement in its
diamond trade in the third and fourth quarters of the year, according to the Diamond
Administration at the Ministry of Industry & Trade.
The Administration
reported on a strong first 2 months of 2013 with 45% rise in diamond activity,
although 2013 1stQ shows mixed indicators (see below), but it is due
to technical reasons (high goods return
rate due to a large exhibition).
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. Net rough diamond exports totaled US$2.8 billion in
Net imports of polished
diamonds dropped 25% from 2011, totaling US$4.27 billion, while net rough
imports stood at US$3.8 billion, 13 % less than in 2011.
Net polished
diamond exports in 2013 1stQ witnessed 8.3% decrease comparing to
2012 1stQ (reaching US$ 1.601 billion), while export of rough diamonds saw a
2.7% rise (summed at US$ 826 million). Net imports of polished diamonds in the
1stQ 2013 reached US$ 891 million, 10.2% decrease compared with the
parallel period in 2012, whereas import of polished diamonds fell 13% to US$
962 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 36%
of the market in 2012 (41% in 1stQ 2013). Hong Kong was the next
largest market with 28% of exports (35% in 1stQ 2013), with Belgium
accounting for 8%, Switzerland 5%, U.K. 5% and the rest of the world 18%.
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond sector rolled annual turnover of US$ 25 billion while total debt to the
banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
crisis. The Ministry for Industry & Trade also assisted the local diamond
exporters by providing bank guarantees in total scope of NIS 1 billion.
Local diamond sector
employs some 20,000 persons.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Notwithstanding the refusal to disclose
financial details, considered good for trade engagements.
DIAMOND INDUSTRY –
INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK
WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.62 |
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1 |
Rs.101.06 |
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Euro |
1 |
Rs.84.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.