MIRA
INFORM REPORT
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Report Date : |
02ND
June, 2006 |
IDENTIFICATION
DETAILS
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Name : |
HINDUSTAN
SANITARYWARE & INDUSTRIES LIMITED |
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Registered Office : |
2, Red Cross Place, Post Box 2359, Kolkata - 700 001, West Bengal,
India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
8th
February 1960 |
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Com. Reg. No.: |
21-24539 |
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CIN No.: [Company
Identification No.] |
U99999WB1960PTC024539 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00554B |
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Legal Form : |
A
public limited liability company. The
company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of Sanitaryware & Fittings, Plaster of Paris,
Refractories, Zirconium Opacifier, Heat Rings, Acid Resistance Tiles, Glass
Bottles / containers & tumblers and Crystalware. |
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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Maximum Credit Limit : |
USD
4250000 |
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Status : |
Good |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established and reputed company having fine track. The company’s
financial position is satisfactory. Trade relations are fair. Payments are
usually correct and as per commitments.
The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
2, Red Cross Place, Post Box 2359, Kolkata - 700 001, West Bengal,
India |
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Tel. No.: |
91-33-2248 7406 / 2248 7407 |
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Fax No.: |
91-33-2248 7045 / 2248 2367 |
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E-Mail : |
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Website : |
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Works
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SANITARYWARE DIVISION
v
Bahadurgarh
- 124 507, Dist. Jhajjar, Haryana v
Somanypuram,
Brahmanapally, Bibinagar - 508 126, Andhra Pradesh v
Raasi
Ceramics - Sitarampur, Isanpur P.O., Patancheru Mandal, Medak District - 502
329, Andhra Pradesh. GLASS DIVISION
Varadanagar,
Kukatpally, Sanatnagar, Hyderabad - 500 018, Andhra Pradesh. |
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Branches
: |
Located
at : 14,Vaswani
Mansions, 2nd Floor, Dinshaw Vachha Road, Back Bay Reclamation,
Mumbai - 400 020 Tel
No. 91-22-2886681 / 2829301 / 2022247 / 2044776 Fax
No. 91-22-2022247 2nd
Floor, Tewari House, 11-B/8, Main Pusa Road, New Delhi - 110 005 Tel.
No. 91-11-5750027 / 5819142 / 5854656 / 57 / 5755212 Fax
No. 91-11-5785278 E Mail
: del.hindware@gndel.global.net.in Ceramic
Division - II, 304, 3rd Floor, Ashoka Bhoopal Chambers, Sardar
Patel Road, Secunderabad - 500 003, Andhra Pradesh Tel.
No. 91-40-7848416 / 17 Fax
No. 91-40-7848418 E Mail
: hindware_hyd@gescl.com |
DIRECTORS
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Name : |
Mr. R.
K. Somany |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr.
Sandip Somany |
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Designation : |
Joint Managing Director |
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Name : |
Mr. S.
S. Kanoria |
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Designation : |
Director |
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Name : |
Mr. N.
G. Khaitan |
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Designation : |
Director |
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Name : |
Mr. Binay
Kumar |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr. G.
L. Sultania |
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Designation
: |
Executive Director & Secretary |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Domestic Companies t |
773882 |
4.14 |
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Financial Institutions/Banks |
156927 |
0.84 |
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Mutual Funds |
923410 |
4.93 |
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Foreign Institutional Investors & Foreign Companies |
1365090 |
7.30 |
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Non-Residents Indians |
23404 |
0.12 |
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Promoters, Directors and Relatives |
12268833 |
65.57 |
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General Public |
3198657 |
17.10 |
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Total |
18710203 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Sanitaryware & Fittings, Plaster of Paris, Refractories, Zirconium
Opacifier, Heat Rings, Acid Resistance Tiles, Glass Bottles / containers
& tumblers and Crystalware. |
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Products : |
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Exports to : |
Lebanon,
New Zealand, Yemen, Cyprus, Mozambique, Jordan and Europe. |
GENERAL
INFORMATION
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Customers : |
v
Amrutanjan
Limited v
Glaxo
India Limited v
Parke-Davis
India Limited v
Ranbaxy
Laboratories Limited v
Smithkline
Beecham Pharmaceuticals (India) Limited v
TTK
Pharma Limited v
Cadbury
(India) Limited v
Hindustan
Lever Limited v
Smithkline
Beecham Consumer Healthcare Limited v
Coca
Cola India v
Pepsi
India v
Mcdowells
& Company Limited v
Maharashtra
Distillery Limited v
Shaw
Wallace & Company Limited v
United
Breweries Limited |
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No. of Employees : |
7000 |
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Bankers : |
v
Central
Bank of India, Kolkata, West Bengal. v
Andhra
Bank, Kolkata, West Bengal. v
Bank
of Baroda, Kolkata, West Bengal. |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Walker
Chandiok & Company Chartered
Accountant |
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Associates/Subsidiaries : |
v
Soma
Plumbing Fixtures Limited v
Somany
Pilkingstons SUBSIDIARIES
v
Ceramic
Services Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity
Shares |
Rs. 5/- Each |
Rs. 150.000 Millions |
Issued,:
|
No.
of Shares |
Type |
Value |
Amount |
|
18711733 |
Equity
Shares |
Rs. 5/- Each |
Rs. 93.558 Millions |
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Subscribed
& Paid-up Capital |
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|
18710203 |
Equity
Shares |
Rs. 5/- Each |
Rs. 93.551 Millions |
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Add. |
Forfeited
shares |
|
Rs. 0.003 Millions |
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Total
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Rs. 93.554 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
93.554 |
56.134 |
56.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1022.808 |
1024.119 |
1091.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1116.362 |
1080.253 |
1147.100 |
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LOAN FUNDS |
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1] Secured Loans |
945.389 |
733.147 |
1299.700 |
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2] Unsecured Loans |
761.931 |
428.997 |
116.500 |
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TOTAL BORROWING |
1707.320 |
1162.144 |
1416.200 |
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DEFERRED TAX LIABILITIES |
325.670 |
296.727 |
0.000 |
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TOTAL |
3149.352 |
2539.124 |
2563.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1989.262 |
1545.164 |
1810.200 |
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Capital work-in-progress |
13.441 |
131.356 |
10.700 |
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INVESTMENT |
235.576 |
236.593 |
49.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
752.653
|
595.914 |
772.400 |
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Sundry Debtors |
706.813
|
516.020 |
594.000 |
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Cash & Bank Balances |
107.598
|
50.699 |
36.800 |
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Other Current Assets |
9.799
|
6.344 |
0.000 |
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Loans & Advances |
142.208
|
150.522 |
196.200 |
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Total Current Assets |
1719.071
|
1319.499 |
1599.400 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
694.519
|
605.481 |
883.500 |
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Provisions |
113.479
|
89.391 |
27.400 |
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Total Current Liabilities |
807.998
|
694.872 |
910.900 |
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Net Current Assets |
911.073
|
624.627 |
688.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
1.384 |
4.100 |
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TOTAL |
3149.352 |
2539.124 |
2563.300 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other income] |
3144.594 |
2565.922 |
2518.300 |
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Profit/(Loss)
Before Tax |
289.738 |
244.493 |
80.800 |
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Provision
for Taxation |
99.391 |
68.992 |
25.400 |
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Profit/(Loss)
After Tax |
190.347 |
175.501 |
55.400 |
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Export
Value |
198.984 |
176.830 |
NA |
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Import
Value |
424.659 |
201.759 |
NA |
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Total
Expenditure |
2537.752 |
2052.738 |
2516.300 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2006 |
|
Sales
Turnover |
|
|
3965.200 |
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Other
Income |
|
|
74.200 |
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Total Income |
|
|
4039.400 |
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Total
Expenditure |
|
|
3254.800 |
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Operating
Profit |
|
|
784.600 |
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Interest |
|
|
129.300 |
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Gross
Profit |
|
|
655.300 |
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Depreciation |
|
|
251.300 |
|
Tax |
|
|
150.400 |
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Reported
PAT |
|
|
258.200 |
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Dividend
|
|
|
650.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
1.31 |
1.30 |
1.72 |
|
Long
Term Debt Equity Ratio |
0.77 |
0.71 |
0.99 |
|
Current
Ratio |
0.92 |
0.95 |
1.07 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.06 |
1.07 |
0.92 |
|
Inventory
|
4.92 |
4.46 |
3.21 |
|
Debtors |
5.42 |
5.50 |
4.44 |
|
Interest
Cover Ratio |
3.66 |
2.82 |
1.49 |
|
Operating
Profit Margin (%) |
18.30 |
16.78 |
16.95 |
|
Profit
Before Interest and Tax Margin (%) |
12.02 |
10.86 |
9.73 |
|
Cash
Profit Margin (%) |
12.02 |
10.95 |
9.40 |
|
Adjusted
Net Profit Margin (%) |
5.74 |
5.03 |
2.19 |
|
Return
on Capital Employed (%) |
15.74 |
14.54 |
10.24 |
|
Return on Net Worth (%) |
17.33 |
15.44 |
6.26 |
STOCK PRICES
|
Face
Value |
Rs.2/- |
|
High |
Rs.124.00/- |
|
Low |
Rs.122.40/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Hindustan Sanitaryware and Industries
(HSI)(formerly known as Hindustan Twyford) promoted in 1960 by Calcutta based
Somany Group in collaboration with Twyfords of UK to manufacture Sanitarywares
is a market leader in sanitaryware. The company also has interest in Glass
Containers.
Sanitaryware Division
HSI a market leader in sanitarywares in the India has three manufacturing
facilityes at Bahadurgarh, Haryana; Somanypuram(Bibinagar) and Sitarampur both
in AP and sells the Sanitaryware under the famous brand name Hindware and
H-Vitreous. The Bibinagar unit has came into fold by the acquisition of Krishna
Ceramics in 1988 to reduce the transport cost by the way of transporting the
products from Bahadurgarh unit to southern markets. Later during the year
1998-99 the company has acquired Raasi Ceramics, with this acquisition the
company has also got a well known brand 'Raasi' which is popular in southern
markets.
The company's sanitaryware division has lot of distinctions like having
the laregest totally computer controlled kiln in the world(supplied by a
company in the UK), only ceramic unit in the country having a full fledged
R&D centre duly recognised by the Min. of Science & Technology, first
company to serve the Indian Railways with Carriage hoppers, India's first
plant(Bahadurgarh plant) in the Industry to recieve the ISO 14001 : 1996
certification.
The company has entered into an strategic alliance with Sanitec Group of
Germany to market their products with the brand name KERAMAG in India and also
to find out the possibilities to manufacturing their products in India.
Glass Container Division
HSI which forayed into Glass bottle manufacturing by the acquisition of
Associated Glass Industries Hyderabad in 1981 has expanded the capacity of this
unit by installing the latest, high-production IS machines and supporting
equipment like imported Ingersoll Rand centrifugal compressors. At present, this
is the largest glass plant in south India, catering to the requirements of
pharmaceutical units and breweries.
The company has installed 4.2 MW DG set operative on heavy oil to cater
to the power supply requirements of the energy-intensive container glass
division. The company has doubled the capacity of glass container division by
putting up a new 250 tpd glass melting deep refiner type furnace at an budgeted
expenditure of Rs.140 crores. In Container Glass the company made investments
for upgradting its bottle-printing facilities for its customers.
Performance
review
The company reported a good performance during the year under review,
reflected in a 8.54% increase in gross sales to Rs. 331,560.000 reflected in the following factors:
A 24% growth in building products division's revenue to Rs. 1535.100
Growth in international shipments; exports as a proportion of the company's
revenue increased from 12.25% in 2003-04 to 14.27% in 2004-05.
During the year under review the company reported an increase in its
EBIDTA margin by 152 basis points to 20.42%, a Rs. 93.700 increase in EBIDTA
(growth of 18.25% over 2003-04) and the highest EBIDTA in its existence at Rs.
606.800
Concurrently, the company reduced its interest outflow by 7.50% despite a
46.91% increase in debt, rationalised its average cost of debt by 154 basis
points and strengthened its interest cover from 4.36x to 5.57x.
As a result, profit before tax grew 35% to Rs. 289.700 and profit after
tax grew 24% to Rs. 190.300 in 2004-05.
Corporate highlights
The company primarily focused on strengthening its business model. For
this the company embarked on the following initiatives:
* Moved up the value chain in existing products
* Introduced international brands for the upper end of the market
* Entered new business segments
* Aggressively marketed in new markets
As a result, both business divisions reported an improved
performance.
Building products division
Revenue from the building products division grew 24% and profits
increased 35% over the previous fiscal. This growth was primarily achieved
through the following initiatives:
Consolidation in existing markets:
The company aggressively marketed its products in South India, which enabled
it to achieve significant growth in this market. Besides, the company achieved
a healthy growth in revenue derived from other regions as well.
New Products:
The company introduced several new products, launched new colour shades
to meet emerging demand; it also launched the `Hindware' faucets in select
Indian locations.
International products:
The company launched new ranges under the outsourced `Grohe' and
`heramag' international brands.
New business segment :
The company made a lateral extension by entering the kitchen segment by
launching stainless steel kitchen sinks, which have been well received in the
market.
The brand segregation of the company's building product range was a
success for the following reasons:
* It led to the precise identification of gaps in the value chain
* It translated into the outsourcing of top-of-the-line products of
international repute
* It resulted in an accurate marketing strategy based on the target
market
This enabled the company to effectively cover the entire value chain and
emerge as a one-stop-solution for building products in India.
Container glass division
Revenue from the container glass division declined 3.79% over 2003-04,
primarily on account of production dislocation due to the modernisation
and upgradation programme. During the year the division installed a
state-of-the-art, energy-efficient and environment-friendly furnace that has
the capability to run production in all three colors flint, amber and green.
The company also launched many new products in 2004-05 backed by a strong
demand from the pharmaceutical and packaged food segments.
Division-wise review
Building products division
The building products division grew by 24% in 2004-05, outperforming the
industry growth of 12%. This was backed by a 10.22% growth in average
realisation.
The unit at Bibinagar operated at 112% capacity, significantly higher
than its rated capacity of 12,000 tpa. This enabled the company to match all its
export commitments and more than 97% of its domestic order commitments despite
adverse conditions at its Bahadurgarh plant.
The company introduced two new business segments - stainless steel sinks
for kitchens and `Hindware' faucets in the building products division - to
capture a larger share of the customer's wallet. These revenue streams expect
to contribute about 15% to the division's sales over the next three
years.
The fortunes of this division ride India's housing growth and increasing
prosperity. Over the last few tears, India's GDP has grown annually at more
than five per cent and India is now the second fastest growing economy in the
world. Over the last three years, the division's revenue grew at a CAGR of over
15.49%, outperforming the industry average of 100%.
This scenario is expected to improve dramatically. Presently, the country
faces a shortfall of about 22.5 million dwelling units. To shrink this deficit,
the government has earmarked funds and introduced a number of favourable
policies: it opened the construction sector to international players, which is
expected to accelerate large scale construction of housing units and commercial
complexes, driving the demand for building products.
The market is also expected to expand significantly at the bottom end.
For instance, an increasing awareness by the government and other agencies
towards improved rural sanitation is expected to increase demand in the
value-for-money range. The increasing prosperity of the Indian population in
line with the growing economy, the early working of the younger generation and
an easy access to financing the purchase of a house are expected to grow the
demand for the company's products.
In response to this emerging environment, the company is adding a number
of items - captive and outsourced - to its product basket relevant to all
consumer segments.
Container glass division
This division reported a marginal decline in sales of 2.78% in 200405.
Even as India's GDP grew 6.9% in 2004-05, the domestic container glass industry
registered a growth of 6.0%.
The latent opportunities for the demand of glass containers is evident
from the fact that India's per capita consumption at 0.4 kg is among the lowest
in the world, as opposed to 3.5 kg in China and 14 kg in Japan.
The container glass division primarily caters to four broad segments:
FMCG (packaged food), 'pharmaceuticals, beer and liquor and soft drinks. Robust
demand is expected from packaged food on account of increasing disposable income,
growing preference for packaged food and manufacturers looking at introducing
innovative packaging.
The Indian liquor industry is positioned for attractive growth due to a
softening in the government's stand on licenses, growing industry consolidation
and the entry of foreign brewers. With a view to increase consumption, soft
drink brands are looking at increasing their exposure in rural India (71% of
the population) and introducing products across lower price points (Rs.
6).
The Indian pharmaceutical industry has been another success story: India
has been widely recognised as an outsourcing base for an increasing number of
multinational players. Besides, global players are also setting up
manufacturing facilities in India to capitalise on the country's low cost
structure and high availability of skilled professionals.
Modernisation and expansion
Building products division :
The building products division is expanding its Bibinagar plant capacity
from 12,000 tpa to 18,000 tpa at an investment of approximately Rs. 260.000 in
the financial year 2005-06.
Container glass division :
The container glass division underwent a considerable capital expansion
during the year under review, through the introduction of a new state-of-the-art
furnace in September 2004. Through the commissioning of the new `deep refiner'
furnace, the division's enhanced flexibility is reflected in the following:
wider range, lower costs and quicker response to market opportunities. It is
among the three planes in India to provide a unique flexibility to switch the
colour of the end product without hampering productivity. The division also
commissioned automatic inspection machines, electronic temperature controls and
motors for better quality. control leading to lower rejects.
Exports
The company's exports grew 27% in 2004-05 comprising 14.27% of net sales
due to an increasing acceptance of products in the international market. While
exports from the building products division grew to the quality conscious
markets of Europe and Australia, the container glass division capitalised on
the growing export potential of packaged food products.
Financial strength
The company's improved performance allowed it to strengthen its financial
position. The introduction of value-added products on the one hand and
consistent cost-cutting on the other helped it improve EBIDTA margins by 152
basis points to 20.42% in 2004-05. Despite a 46.91% increase in debt (resulting
from capital expenditure for modernisation and upgradation programme at the
container glass division), the company reduced its interest outflow by 7.500,%,
rationalised its average cost of debt by 154 basis points and strengthened its
interest cover from 4.36x to 5.57x.
Outlook
Since both business divisions address improved lifestyles, the
long-term prospects appear optimistic.
Building products division
The fortunes of this division are linked to the growing construction of
dwelling houses and commercial complexes. With an increasing thrust on the
housing sector by the government (through favourable policies) and by the
commercial world (through customized loans), the demand for building products
is expected to increase significantly. Specific contributors to growth among
others will be:
* An increase in the construction of malls and shopping complexes - an
estimated 600 such malls, covering an estimated area of 100 mn sq ft over the
next five years - will trigger a bigger demand for building products
* India's existing housing shortage of over 22.5 million dwelling units
is expected to be addressed more now than ever before
Besides, the increasing importance of India in global trade has
accelerated the construction of commercial complexes and allied infrastructure,
which augurs well for the company.
The replacement segment, which was practically non-existent earlier, has
started to pick up due to rising income levels coupled with the fact that
value-added products are sold to this segment is a positive development for the
company.
A growing economy (estimated to grow at about 7% p.a. over the next few
years) has translated into greater prosperity, reflected in increasing
renovation, growing the opportunities for the company.
Container glass division
A growing economy, increasing per capita income, rising aspirations and a
`young' and growing Indian middle class is increasing purchasing propensity.
This is encouraging FMCG and liquor companies to increase their packaging
solutions. Moreover, increasing rural promotions by soft drinks manufacturers
along with the availability of products at affordable price points is expanding
the consumer base. These initiatives and developments are expected to generate
a larger revenue, increased margins and higher profitability for the
company.
The company’s fixed assets of important
value include Goodwill, Land, Buildings, Plant & Machinery, Vehicles,
Furniture, Office equipments, & Computers.
As per Website Details:
About Us
HSIL made a
humble beginning in 1936, when the Somany's were stockbrokers in Calcutta. But
a few years later in 1944, their entrepreneurial spirit led to the setting up
of "Somany Glass Works". Then, on the back of this successful
venture they set up "Hindustan Glass Works" in 1952 – India's
first fully automated, state-of-the-art glass manufacturing unit.
Today, the Somany Group has a
diversified range of products encompassing glass containers,
sanitaryware, bathroom fittings,
HSIL Office in
Bahadurgarh
bath tubs,
shower enclosures, Shower partitions & panels, Kitchen appliances &
Sinks and ceramic tiles, as well as textiles and engineering goods.
The Somany Group’s flagship
company, Hindustan Sanitaryware and Industries Ltd., (HSIL) was set up in 1962
in collaboration with Twyfords of UK. In India, it soon pioneered Vitreous
China Sanitaryware and gave the concept of sanitaryware a new meaning. Now, the
"Hindware" brand commands more than a third of the Indian
sanitaryware market and is a leader in several categories. Furthermore, amidst
sanitaryware brands, it’s a top export from India.
Hindustan Sanitaryware and
Industries Ltd. (HSIL), is the first company in the Building Materials Industry
to be awarded the prestigious ISO 9001, 14001 and OHSAS 18001
certificate, implying effective quality management and environment systems. It
is recognized amongst the top 300 companies in the country and is also rated
amongst the 100 best small and medium sized companies in the world by Forbes
Magazine.
Over the last four decades, HSIL
has earned respect in the Indian and international markets with its commitment
to innovation, unwavering quality and customer satisfaction.Today, it has
350,00,000 plus satisfied customers, the world over, and commands more than a
third of the Indian sanitaryware market. HSIL pioneered the concept of
‘vitreous china’ in sanitaryware and has developed several ‘water conservation’
flushing systems too.
5-Feb-2006
Hindustan
sales improve
Hindustan Sanitaryware &
Industries Limited, a company engaged in sanitaryware and glass container
segments, announced financial improvement in its sales and profits for the
third quarter and nine months ended 31 December, 2005. Gross Sales increased by
37.24 per cent to Rs 11,00.100 from Rs
8,01.600 while operating profit
increased by 18.80 per cent to Rs 190.800
from Rs 160.600 and earning per share increased by 47.16 per cent to Rs
3.37 from Rs 2.29. Commenting on the results, Sandip Somany, joint managing
director of the company, said, 'Company's Building Products Division is on a
tremendous growth trajectory benefiting from all around growth in the
construction and infrastructure sector. We are also witnessing increasing
replacement demand in the bathroom and kitchen segment. Company's expansion
program to increase sanitaryware production capacity from 26,000 tpa to 32,000
tpa has been successfully completed. We are on track to end the year with
record performance in the Building Products Division.'
22-Dec-2005
Hindustan
Sanitaryware to expand kitchenware biz
HINDUSTAN Sanitaryware &
Industries Ltd (HSIL) is expanding its kitchen business. The company, which
diversified into kitchen sinks a while ago under its Hindware brand, is now
introducing chimneys and hobs. In the next seven months, it will also launch a
range of appliances including microwave ovens, toasters, water purification
systems, dishwashers and sterilisers, said Mr. Ved Berry, Head (Marketing and
Kitchen Division) HSIL. Speaking to Business Line here, Mr. Berry said the
company hopes to leverage its sanitaryware distribution network for its kitchen
business. Referral trade is also another source it is tapping. The kitchen
sinks' success has proved that retaining the Hindware branding has been
accepted, he said. According to Mr. Berry, the Rs 1800.000 chimneys and hobs
market is growing between 40 and 50 per cent annually. There are several
players and the market is fairly disorganised with no standard margins or
discount methods, Mr. Berry said. While Faber accounts for about 70 per cent of
the market share, the company in second place accounted only for 13 per cent,
the gap indicating that there is enough opportunity for HSIL to exploit, Mr.
Berry said. Hindware chimneys and hobs are priced between Rs 3,900 and Rs
30,900, on par with competitors. The "tangible product plus" is that
they are made of pure stainless steel which is non-corrosive, he said, adding
that they cost more to make than others in the market. The company has launched
17 models of chimneys and 10 varieties of hobs, which far outstrips the choice
currently available, Mr. Berry claimed. Now being launched in phases, they will
be available countrywide by the end of January 2006 in around 2,000 outlets.
Mr. Berry said the company aimed to be numero uno in the bathroom and kitchen
design segments in the next five years. Some time ago, the company went in for
a change in brand identity as HSIL, with `Bathrooms, Kitchens & Beyond'
being its tag line.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.46.17 |
|
UK
Pound |
1 |
Rs.86.06 |
|
Euro |
1 |
Rs.59.14 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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%)
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |