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MIRA INFORM REPORT
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Report No. : |
486576 |
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Report Date : |
23.01.2018 |
IDENTIFICATION DETAILS
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Name : |
EXPOSE FASHION LTD |
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Formerly Known As : |
K. EXPOSE ISRAEL 2005 LTD |
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Registered Office : |
11 Leshem Street, Northern Industrial Park, Caesarea, 3088900 |
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Country : |
Israel |
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Date of Incorporation : |
05.09.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and marketers of undergarments and
swimwear |
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No. of Employees : |
110 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 and address
EXPOSE FASHION LTD.
Telephone 972 4 623 06 86
Fax 972 4 623 06 88
P.O. Box 3578
11 Leshem Street
Northern Industrial Park
Caesarea, 3088900, Israel
HISTORY
& LEGAL FORMATION
A private limited company registered as per file No. 51-372919-4 on the
05.09.2005 under the name K. EXPOSE ISRAEL 2005 LTD., which changed to the
present name on the 11.09.2005.
Subject was established by its original shareholders, in view of joining
their activities (of swimwear), i.e. of CORAL MODEL LTD., established by Amir
Haberfeld in 2002, and by LEE COOPER ISRAEL Group (via CONCEPT FASHION, then
headed by Gidi Goldfinger).
SHARE CAPITAL
Authorized share capital NIS 10,000.00, divided into -
10,000 ordinary
shares of NIS 1.00 each,
of which 1,000 shares amounting to NIS 1,000.00 were issued.
SHAREHOLDERS
1. Ofer
Ganezi, 50%,
2. Moshe
Ganezi, 50%.
In September 2011, brothers Ofer and Moshe
Ganezi acquired, jointly with CPA Yuval Kidron, the holdings of CONCEPT FASHION PROD
By February 2017, Ofer and Moshe Ganezi acquired their partners’ shares, reaching the
present holding.
DIRECTORS
1. Ofer Ganezi,
2. Moshe Ganezi.
GENERAL MANAGER
Eyal Yakir (since December 2017).
BUSINESS
Importers and marketers of undergarments and swimwear,
operating in 4 main divisions:
Swimwear, under brands "Banana kids" for
young girls aged 2-12, "Banana" for girls aged 13-22, "Lee
Cooper", “Glamour”, and "Galit Levi" as premium Hot Couture
brand.
Undergarments and home-wear, with "Lee
Cooper" brand for ladies
Braziers, local concessioners for international brands
“lovable”, “Fila”, “Selmark”, “Bali&Playtex”, “Liliyette”, as well as
"Lee Cooper” and ”Expose”, local sole representative of SELMARK (of France),
B.D.A., LOVABLE, FILA (all 3 of Italy) and BALI, PLAYTEX (both of USA).
Stockings, with brand "Golden Lady" and
“Pompea”, local sole representative of GOLDEN LADY and LORMAR, both of Italy.
All sales are local.
Operating as a studio, designing swimwear and lingerie, which they send for
manufacturing in China.
In addition, operating their own retail chain (“Expose'), with 10 branches
(7 operated by concessionaires).
Also selling products via leading local retail chains and department
stores, including HAMASHBIR DEPARTMENT STORE, H&O FASHION, AFRODITA,
LEVANVANIM, PITU'IM, YANIT LINGERIE, etc.
Following the acquisition of the activities of ADA LISS in October 2014,
subject entered the brazier segment.
Advertising agency:
INBAR MERHAV SHAKED.
Among local service suppliers: MOVILEI DROR
(transportation), FRITZ CO., PELTRANSPORT (both latter - international
forwarding).
Operating from rented premises, on an area of 2,000 sq. meters, in 11
Leshem Street, Northern Industrial Park, Caesarea.
Having 110 employees (same as in 2016, had 60
employees in mid-2015, similar to previous years, the increase in 2016 was due
to entering the brazier segment, subject recruited saleswomen working in
HAMASHBIR DEPARTMENT STORE
MEANS
Current stock is valued at NIS 12,000,000 (was valued
at NIS 11,000,000 in mid- 2015, NIS 10,000,000 in the beginning of 2015, was
NIS 5,000,000 in the beginning of 2013).
According to reports 2009 advertising budget is NIS 4,000,000.
There is 1 charge for an unlimited amount registered on the company's
assets, in favor of Mizrahi Tefahot Bank Ltd. (charge placed July 2011).
REVENUES
2010 sales claimed to be NIS 30,500,000.
2011 sales claimed to be NIS 30,000,000.
2012 sales claimed to be NIS 29,000,000.
2013 sales claimed to be NIS 28,000,000.
2014 sales claimed to be NIS 37,000,000. Rise also attributed to subject's
new own retail chain.
2015 sales claimed to be NIS 43,000,000.
2016 sales claimed to be NIS 43,000,000.
2017 sales claimed to be NIS 40,000,000.
OTHER COMPANIES
Also controlled by
Ganezi Brothers & Family:
HOLIS METAL
INDUSTRIES LTD., designers, manufacturers and marketers of window coverings
(e.g. blinds, shades and curtain track systems).
ORGON WINDOWS
FASHION LTD., marketers and retailers offering full range of shading solutions.
TZELON BLINDS MARKETING (1993) LTD.,
POLYLAC PAINTS AND
LACQUERS INDUSTRIES LTD., manufacturers, marketers
and exporters of industrial paints, lacquers, etc.
POLYLAC PROPERTIES HOLDINGS (1980) LTD., yielding real estate holdings.
HOLIS EUROPE B.V., Holland,
ORGON INDUSTRIES
(1972) LTD., a real estate company.
OR-SUN LTD., 50%
(via MAYA PROGRESS - INVESTMENTS LTD.), importers and marketers of home textile
goods.
BRILL SHOES INDUSTRIES LTD., 9.26% held by Moshe Ganezi,
designers, importers and marketers of footwear, apparel and fashion accessories. Also operating tens shops (mainly via concessioners) in the framework of
retail chains of "Lee Cooper", "Super Brand" (incl. "Anne Klein", "Easy Spirit" and "Nine
West") and via 50% subsidiary S.B.N CLOTHING
LTD. operates "Nautica" and "Timberland" brand stores. Publicly traded on the Tel Aviv Stock Exchange, current market value US$
18.34 million.
BANKERS
Mizrahi
Tefahot Bank Ltd., Tel Aviv Central Business branch (No. 461),
Tel Aviv, account No. 367536.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
CHARACTER AND REPUTATION
Currently, there is a business dispute between subject and subject’s former
shareholder, director and manager Mr. Amir Haberfeld and his company CORAL
MODEL LTD., as well as others, including subject’s former director and business
development manager Gil Peled. The case, opened October 2017 (file No.
15794-10-17) is pending at the Haifa Labor Court, and concerns the
non-competing agreement signed with Haberfeld, who was a shareholder till
January 2017 and director and manager till May 2017, and subject claims of
violation of the agreement by Haberfeld, Peled and others, allegedly operating
to open a competing company, including using subject’s trade secrets and
proprietary.
Apart from the above, nothing unfavorable learnt.
Subject is considered a leading company in the local fashion swimsuits
market.
Subject’s former parent company CONCEPT FASHION (60%) encountered serious
financial difficulties and in March 2011 BRILL Group, a leading footwear and
fashion manufacturers, importers and retailers, acquired of CONCEPT’s 32 shops'
activities in Israel for NIS 24 million (of which NIS 20 million for
inventory).
Ofer and Moshe
Ganezi, well-known local businessmen, held jointly 19.25% of BRILL (Ofer Genazi sold his shares in BRILL in
2016, Moshe Genazi still holds shares, as above), announced on their intention
to acquire CONCEPT's shares in subject privately, not connected to BRILL. Deal
was completed in September 2011.
In 2007, subject
gained the concession from D
In 2008, it was reported that subject enters the
children swimwear, launching the brands "Banana" and "Banana
Kids", as well as "Twitty" for babies, with an overall
investment of NIS 900,000.
In 2010 it was
reported that subject acquired the representation of LORMAR undergarments brand
for NIS 500,000 and invested over US$ 150,000 in the launching of the brand in
Israel.
In May 2011 it was
reported that subject invested some NIS 200,000 in the acquisition of the
"Smurf" brand for undergarments.
In the end of 2014
subject acquired the activities of ADA LISS which operated in
the women lingerie field for NIS 2 million, and subject entered the brazier segment,
and received the representation of HANES "Playtex", “Lovable”, “FILA”
and "Bali" brazier brands.
According to a
media report from 2016, the local swimwear market is valued at NIS 180 million
per annum.
Total local undergarment market is valued at US$ 1.5 billion. 2 main
players are DELTA - GALIL and HAMASHBIR DEPARTMENT STORES. In 2012, braziers
and fitters were the main products in money terms- 48% of under garment sales,
under ware 19%, socks and stockings 15%, sleep dressing 11% and undershirts 7%.
In 2012 import of under garment was of NIS 930 million.
Reportedly, total revenues of the local
fashion market in 2013 reached NIS 12 billion per annum. In 2012 sales reached
NIS 11 billion. 40% of sales are in the large fashion chains, 34% in other
smaller chains, and the rest in private shops.
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.
Children's fashion market is valued at NIS 2 billion per
annum, sold in 1,600 shops (900 of which belong to branded chains, rest are
private shops).
The local fashion market has been significantly influenced
by the entrance of new international fashion players to the already highly
competitive local market.
To many players in the branch, the fierce competition,
coupled with the slow-down in local economy resulted in stagnation in sales and
drop in revenues. There have been also few collapses of veteran and big retailers
in some niches, including in the ladies fashion and children's apparel.
From
RIS data, a firm that measures revenues from sales of 2,700 shops in Israel, a
9% decrease in number of fashion stores was noticed in 2016 compared to 2015
(mainly as large chains unified shops and sub-brands, significantly cutting
costs in view of the intensifying competition), yet overall sales rose by 1.43%
from 2015 despite the lowre number of shops. Still, the rise in sales was lower
than the growth rate in population (2%).
The
trend in 2017 apperas to be similar to 2016, though the main finding is the
weakening of the international chains (e.g. H&M), besides ZARA Group, while
Israeli chains maintain stability, some even rise with sales.
According to the
Central Bureau of Statistics (CBS), import of Clothing and Footwear in 2017
fell slightly (-0.3%) from 2016 increased by 3.7% (in NIS terms, rose by 6.3%
in $ terms), summing up to NIS 7,996 million. This comes after in 2016, 2015
and 2014 import rose by 3.7%, 4.2% and by 8.3%, respectively from the previous
years (in NIS terms, rose also in $ terms).
Chinese production comprises the largest
portion of imported textile goods followed by France, Italy, Hong Kong and
Turkey.
From the CBS
National Accounts for 2016 on consumption expenditure of households in
the domestic market, it turns that expenditure on semi-durable goods rose by 5%
from 2015 (after rising by 1.2% in 2015 and 6.9% in 2014), and included
expenditure on Clothing and Footwear, which rose by 4.2% (after it remained
stagnant in 2015 and rose by 7.8% in 2014).
SUMMARY
Good for trade engagements.
Notes:
1)
The telephone no. you gave (972-50-4050090) belongs
to a former employee in subject (Gil Peled), no longer relevant.
2)
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 63.89 |
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1 |
INR 88.60 |
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Euro |
1 |
INR 78.12 |
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ILS |
1 |
INR 18.69 |
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 : |
SYL |
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
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
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.