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Report No. : |
339487 |
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Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
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Name : |
HERZL BIBI NITZAT HADUVDEVAN LTD. |
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Registered Office : |
P.O. Box 28437, Jerusalem (9128302), M.P. Harei Yehuda Ma'ale Hahamisha 9083500 |
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Country : |
Israel |
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Date of Incorporation : |
08.04.1980 |
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Com. Reg. No.: |
51-084816-1 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and marketers of organic and natural food products. |
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No. of Employees : |
270 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered 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 has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. 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. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.
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Source
: CIA |
HERZL BIBI NITZAT
HADUVDEVAN LTD.
(Trading as: NITZAT
HADUVDEVAN)
Telephone 972 2 533 02 35
Fax 972 2 533 02 36
Email: onstore@nizat.co.il
P.O. Box 28437,
JERUSALEM (9128302)
M.P. Harei Yehuda
MA'ALE HAHAMISHA 9083500 ISRAEL
A private limited company, incorporated as per
file No. 51-084816-1 on the 08.04.1980.
Originally registered under the name HERZL
BIBI TRADING CO. LTD., which changed to the present name on 22.05.1995.
Authorized share capital NIS 10.00, divided into
–
99,980 ordinary shares (107
shares issued),
20 management shares (2 shares
issued), all of NIS 0.0001 each,
of which shares amounting to NIS 0.0109 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).
1.
Herzl Bibi, all management shares issued and 91.6%
of ordinary shares,
2.
The heirs of the Late Ezra Bibi, 8.4% of ordinary shares.
Herzl Bibi.
Importers and marketers of organic and natural food products.
Also operating via retail store chain of the
NITZAT HADUVDEVAN Group, selling organic and natural products (food, vitamins,
organic cleaning products, etc.), of 24 branches (had 22
branches in the beginning of 2015, 21 branches in the end of 2013), 18 owned
and 6 operated by concessionaires.
Sales are to the Group’s stores, as well as
to 3rd parties, such as HAMAMA, ANGEL BAKERY, ORGANIC MARKET, etc.
60% of purchasing
is from import, the rest is from local suppliers.
Main local supplier: HAMAMA MEIR TRADE.
Among other local suppliers EAST WEST MARKETING.
Among other
suppliers: R.B. CAPRICORN
Sole local
representatives of (among others):
TOMPSON, GIERT (name may be spelled differently),
both of Canada,
NATIVE, of Brazil,
LA-TERRA, of Italy,
IRUPANA, of Bolivia.
Operating from
rented premises, on an area of 700 sq. meters, in Ma'ale Hahamisha, a locality near Jerusalem, and from a rented warehouse in
Tel Aviv (at CAREFREE storage facilities).
Also operating from 24 branches of NITZAT HADUVDEVAN chain stores (of which 6 by franchisers), including the
central store in 22 Kanfei Hanesharim Street, Jerusalem, and stores in Tel
Aviv, Ra'anana, Zichron Yaakov, Haifa, Petach Tikva, Herzliya, Pardes Hana (and
other stores elsewhere).
Having 270 employees serving subject and the
Group's owned stores, not including the franchised stores employees (had 230
employees in the beginning of 2015, had 180 employees in the end of 2013,
similar to 2012).
During second half of 2013, SHUFERSAL negotiated
to acquire subject (and Group), according to a value of NIS 40 million.
Eventually deal did not pull through.
Current Group’s consolidated inventory is valued
at NIS 20,000,000 (was valued around NIS 30,000,000 in the beginning of 2015,
NIS 20,000,000 in the end of 2013).
Other financial data not forthcoming.
There are 4 charges for an unlimited amounts
registered on the company's assets, in favor of The First International Bank of
Israel Ltd. 1 general charge (all assets) placed in 1997, and 3 other charges,
all on vehicles, placed in 2011 and in 2013).
Group’s 2009 consolidated sales claimed to be NIS 180,000,000.
Group’s 2010 consolidated sales claimed to be NIS 200,000,000.
Group’s 2011 consolidated sales claimed to be NIS 210,000,000.
Group’s 2012 consolidated sales claimed to be NIS 240,000,000.
Group’s
2013 consolidated sales claimed to be NIS 280,000,000.
Group’s
2014 consolidated sales claimed to be NIS 300,000,000.
Group’s
first 6 months of 2015 consolidated sales claimed to be
NIS
150,000,000.
Also in the Group
(among others):
NITZAT HADUVDEVAN
KANFEI NESHARIM LTD., operating subject's owned retail stores (see more in
CHARACTER).
HERZEL BIBI
PROPERTIES LTD.
RESHET NITZAT
HADUVDEVAN - LICENSING MANAGEMENT
LTD.
The First International Bank of Israel Ltd., Jerusalem Main
Branch (No. 012), Jerusalem, account No. 306363.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
In September 2011 it was reported that a motion
for a class action lawsuit for the sum of NIS 25 million against subject was filed
to the Tel Aviv District Court on the ground of improper price display. No
further data was found on matter.
Apart from that, nothing unfavorable learnt.
Subject is
considered to be one of the most prominent companies in the local organic and natural
food market. "Nitzat Haduvdevan" retail chain started
as a shop in 1986 and grew to its current network.
According to a
report from November 2013, subject holds 15% of the local organic food market.
Until the end of
2014 Group's owned retail stores we each operated by its own company (owned by Herzl Bibi). In 2015 all the retail stores activities were transferred to NITZAT
HADUVDEVAN KANFEI NESHARIM, and the companies which operated the stores are
currently in the process of voluntarily liquidation.
In January 2012 it
was reported that NITZAT HADUVDEVAN is opening a retail store in Pardes Hana
with an investment of NIS 1.8 million.
During second half
of 2013, SHUFERSAL negotiated to acquire subject (and Group), according to a
value of NIS 40 million. The deal did not pull through due to understanding
that the Antitrust Authority will not approve the purchase.
In April 2015 it was
reported that NITZAT HADUVDEVAN Group leased a premises of 150 sq. meters in
Binyamina for a retail store.
According to a report
the local market volume for organic food is estimated at NIS 550 million – NIS
600 million per year and the health food market is valued at NIS 1.1 billion.
This market has been developing in recent years, at a rate of 15% a year.
However in practice, also due to the economic situation (which harms mainly the
market for products which are considered luxuries), it does not reach a mere 1%
of total foodstuffs sales in Israel.
Most purchasing by consumer is in the large marketing chains (around
50%), while some 28% is from nature stores.
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. 66.60 |
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|
1 |
Rs. 102.30 |
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Euro |
1 |
Rs. 74.60 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
DPT |
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.