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MIRA INFORM REPORT
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Report No. : |
504357 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
SONS OF BAHEEG KAWAR INDUSTRIAL LTD. |
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Registered Office : |
Hamerkava Street,
Ziporit Industrial Zone, Nazareth ILLIT 1778000 |
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Country : |
Israel |
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Financials (as on) : |
2017 [Summarized] |
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Date of Incorporation : |
27.09.2004 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
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A spirit manufacturing plant, mainly Vodka, Arak
– an Anis-based spirit - and Brandy. ·
Products are marketed under the names “Velvet
Vodka” and "Arak Kawar". |
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No. of Employees : |
12 |
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 : |
Exist |
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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 2.8% per year during the period 2014-17. 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 2018 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
SONS OF BAHEEG
KAWAR INDUSTRIAL LTD.
Telephone 972
4 655 47 66
Mobile 972 50
737 55 72 (Anan Kawar)
Fax 972
4 651 77 10
Email: kawarltd@netvision.net.il
Hamerkava Street
Ziporit Industrial
Zone
Nazareth ILLIT 1778000 Israel
HISTORY
& LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-359312-9 on the 27.09.2004, continuing
family activities which originally began in Jordan in the mid 1940's.
Subject began
business activities (manufacturing and sales) in 2010.
SHARE
CAPITAL
Authorized share capital
NIS 1,700,000.00, divided into -
5 managements
shares of NIS 0.00 each (no face value),
17,000 ordinary
shares of NIS 100.00 each, fully issued.
SHAREHOLDERS
1. Anan
Kawar, 20% of management shares and 45.7% of ordinary shares issued,
2. Alaa
Kawar, 20% of management shares and 45.7% of ordinary shares issued,
3. BAHEEG
KAWAR AND SONS LTD., 60% of management shares and 8.6% of ordinary shares
issued, owned by Anan Kawar and Alaa Kawar.
DIRECTORS
1. Anan Kawar, a registered authorized reporting
official,
2. BAHEEG KAWAR AND SONS LTD. is registered as
a Director.
JOINT
GENERAL MANAGERS
1. Anan Kawar,
2. Alaa Kawar.
BUSINESS
A spirit
manufacturing plant, mainly Vodka, Arak – an Anis-based spirit - and Brandy.
Products are marketed
under the names “Velvet Vodka” and "Arak Kawar".
25% of sales are
export.
Sales are to
retail stores and chains, restaurants, bars, etc.
Among clientele:
WINE & MORE, AGRIPAS SPIRITS, SUPER 2000, SAR HAMASHKA’OT, WINE DEPOT, and
more.
Operating from
premises, owned by parent company BAHEEG KAWAR AND SONS LTD., on an area of
2,200 sq. meters, in Hamerkava Street, Ziporit Industrial Zone, Nazareth illit.
Premises serve also parent company BAHEEG KAWAR AND SONS LTD.
Website: www.vodkavelvet.co.il
Having 12
employees (had 8 employees in 2014).
Having 20
employees in BAHEEG KAWAR AND SONS.
MEANS
Current stock is valued at NIS 3,000,000.
Property owned by parent company in Hamerkava
Street, Ziporit Industrial Zone, Nazareth illit (where subject is operating
from) was valued at NIS 7,600,000 several years ago.
Subject is an
“Approved Enterprise” and as such entitled for State support, grants and tax
relief.
In 2005 the Israeli
Investment Centre (IIC) approved a NIS 3.7 million investment plan for the
erection of subject’s plant.
There are 3 charges for unlimited amounts,
as well as 1 charge for the sum of NIS 96,700 registered on the company's
assets (fixed assets, equipment and vehicles), in favor of the State of Israel,
Mercantile Discount Bank Ltd. and a company (last charge placed March 2017).
REVENUES
2016 sales claimed to be NIS 6,000,000, 25%
were for export.
2017 sales claimed to be NIS 6,000,000, 25%
were for export.
OTHER
COMPANIES
BAHEEG KAWAR AND
SONS LTD., parent company, incorporated 1996, importers and marketers of
foodstuff and alcohol, e.g. beer, wine, pasta, chocolate, etc.
BANKERS
Mercantile Discount
Bank Ltd., Kfar Kanna Branch (No. 631), Kfar Kanna.
CHARACTER
AND REPUTATION
In December 2016 a
claim was filed against subject in the Nazareth magistrate Court for NIS
838,180 by ASALIYA FOR GENERAL TRADE AND TRANSPORTATION. Matter id pending
(case file No. 62367-12-16, next hearing scheduled 15.05.2018).
In December 2012
the Tel Aviv Magistrate Court ruled that subject is to pay NIS 216,493 + 58,500
legal expenses to an elevator company which installed elevators in subject's
plant (case file No. 404466-05-10).
Apart from that,
nothing unfavorable learned.
Subject's arak won
a silver medal in the NYISC 2011 spirit contest in New York, as well as winning
other competitions.
In December 2012
the Haifa Magistrate Court ruled that HAREL insurance company is to pay subject
some NIS 300,000 compensation for a burglary in subject's former premises.
The StoreNext Market
Research survey (based on circa 80% of the sales in the local FMCG bar-coded
market) on 2017, points on 1.7% rise in the food and beverages sales from 2016,
to total of NIS 35.7 billion, though estimated to be most from price rise, not
quantity, taking into account the population growth, so in practice point on
stagnation in the market.
Food products sales in 2017 witnessed 1.9%
rise in money terms from 2016 and totaled NIS 31.2 billion (after 0.8% decrease
in 2016), beverages sales rose by mere 0.3% summing at NIS 4.5 billion (rose
1.5% in 2016).
The local alcohol
market has been going through regulatory changes in recent years, where tax
tariffs on expensive alcohol brands are in decreasing trend, while cheap
spirits prices were elevated (to fight youth alcoholism).
Alcohol
consumption has also been in a rising trend, also as result of the lowering in
tariffs.
Local food industry employs directly 62,000 workers in some 1,550 plants,
72% of which are considered small plants (with sales of up to NIS 10 million).
According to the Central
Bureau of Statistics (CBS) data, investment in imported machinery and other
equipment of the manufacturing industry in 2017 (quantity change percent change
on previous year) in the beverage & tobacco industries decreased by 2.4% in
2017 to NIS 178 million, coming after a sharp increase in 2016 of close to 57%.
Sales for exports by
the food products & beverages industries rose by 8.6% in 2017 from 2016,
summing at US$ 1,041 million, after in 2016 export fell by 2.8% from 2015 and
plunged by circa 10% in 2015 from 2014.
SUMMARY
Good for trade engagements.
Note: Since February 2013 Israel Post has started
using a new area code method of 7 digits (the old method of 5 digits is no
longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.22 |
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1 |
INR 92.84 |
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Euro |
1 |
INR 81.27 |
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ILS |
1 |
INR 18.72 |
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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NIY |
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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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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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.