MIRA INFORM REPORT
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Report Date : |
10th June 2006 |
IDENTIFICATION DETAILS
|
Name : |
ARVIND MURJANI BRANDS
PRIVATE LIMITED |
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Registered Office : |
8A, Akaash Ganga, 89,
Bhulabhai Desai Road, Mumbai – 400036, Maharashtra, India |
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Country : |
India
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
09.09.2003 |
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Com. Reg. No.: |
11-142108 |
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CIN No.: [Company Identification No.] |
U18101MH2003PTC142108
/ U18101GJ2005PTC046421 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMA18955G
/ BLRA04965C |
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PAN No.: [Permanent Account No.] |
AAECA3768J |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Subject is engaged in the
business to carry on the business either through subcontracting, toll
manufacturing or as manufacturers, designers, cutters, stitchers, knitters,
laminators, packers, processors, merchants, brokers, agents, dealers,
sellers, buyers, cash and carry wholesale traders, importers and exporters in
all kinds of men’s, women’s and children clothing, wearing apparel,
ready-made garments, dresses, fashion wears, casual wears, office wears,
under-wears, hosiery goods branded or non-branded all furnishing fabrics and
bed and bath products of all ranges, including sheets, pillow cases, bedding
accessories, towels, window/door dressings, curtain clothes and made up of
every description, of every kind, nature and description, of every kind,
nature and description made from any fabric textile and hosiery whether
natural, synthetic or artificial, including cotton, wool, worsted wool, jute
wool, coir, viscose, rayon, nylon, terin, polyester, accrelic, polypropellin,
polynosic or any other synthetic fabric or fabric material or textile
substances and accessories of every kind, nature and description. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
New Company |
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Payment Behaviour : |
-- |
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Litigation : |
Clear |
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Comments : |
The Company can be
considered for business dealings with caution. |
LOCATIONS
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Registered Office : |
8A,
Akaash Ganga, 89, Bhulabhai Desai Road, Mumbai – 400036, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Vijay Mohan Murjani |
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Designation : |
Director |
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Address : |
8A, Akaash Ganga, 89, Bhulabhai Desai Road,
Mumbai – 400036,Maharashtra |
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Name : |
Mr.
Rakesh Thakar Desai |
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Designation : |
Director |
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Address : |
5/40, CCI Colony, M. G. Road, Unnat Nagar,
Goregaon (West), Mumbai – 400062, Maharashtra |
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Name : |
Mr. Darshan Mehta |
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Designation : |
Director |
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Name : |
Mr. Jagdish Dalal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.
T. Balasubramanian |
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Designation : |
Company
Secretary |
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Address : |
4A/1,
Anand Apartments, J. P. Avenue, Dr. Radhakrishnan Salai, Chennai – 600 004,
Tamilnadu, India |
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Qualification : |
ACS,
MCS, BBA, PGD PM and IR |
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Tel. No.: |
91-44-55381661 |
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Mobile No.: |
91-9840098886 |
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E-mail : |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. Of Shares |
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Mr. Vijay M. Murjani (Authorised Representative
for and on behalf of Ganesha Limited, 44, St. George Street, Port Louis,
Mauritius) |
5,001 |
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Mr. K.E.Venkatachalapathy (Authorised Representative
for and on behalf of Arvind Brands Limited, Arvind Mills Premises, Naroda
Road, Railway Pura Post, Ahmedabad – 380025, Gujarat, India) |
5,000 |
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Total |
10,001 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the
business to carry on the business either through subcontracting, toll
manufacturing or as manufacturers, designers, cutters, stitchers, knitters,
laminators, packers, processors, merchants, brokers, agents, dealers,
sellers, buyers, cash and carry wholesale traders, importers and exporters in
all kinds of men’s, women’s and children clothing, wearing apparel,
ready-made garments, dresses, fashion wears, casual wears, office wears,
under-wears, hosiery goods branded or non-branded all furnishing fabrics and
bed and bath products of all ranges, including sheets, pillow cases, bedding
accessories, towels, window/door dressings, curtain clothes and made up of
every description, of every kind, nature and description, of every kind,
nature and description made from any fabric textile and hosiery whether
natural, synthetic or artificial, including cotton, wool, worsted wool, jute
wool, coir, viscose, rayon, nylon, terin, polyester, accrelic, polypropellin,
polynosic or any other synthetic fabric or fabric material or textile
substances and accessories of every kind, nature and description. |
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Products with ITC Code: |
620000
– Readymade Garments |
GENERAL INFORMATION
|
Auditors : |
Deloitte Haskins and Sells Chartered Accountant Bangalore |
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Associates/Subsidiaries
: |
Lalbhai Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,00,000 |
Equity Shares |
Rs. 10/- |
Rs. 2.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,00,000 |
Equity Shares |
Rs. 10/- |
Rs. 2.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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|
2.000 |
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2] Reserves & Surplus |
|
|
39.007 |
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4] (Accumulated Losses) |
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(16.423) |
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NETWORTH
|
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24.584 |
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LOAN FUNDS |
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TOTAL
BORROWING
|
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0.000 |
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TOTAL
|
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24.584 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
|
|
0.476 |
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Capital work-in-progress
|
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|
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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19.976 |
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Sundry Debtors
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0.523 |
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Cash & Bank Balances
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|
6.455 |
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Loans & Advances
|
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14.405 |
Total Current Assets
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41.359 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
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17.251 |
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Total Current Liabilities
|
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17.251 |
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Net Current
Assets
|
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24.108 |
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TOTAL
|
|
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24.584 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2004 |
Sales Turnover [including other income]
|
|
|
0.817 |
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Profit/(Loss) Before Tax
|
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|
16.423 |
Provision for Taxation
|
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|
0.000 |
Profit/(Loss) After Tax
|
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16.423 |
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Value of Import
|
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|
4.760 |
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Total Expenditure
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17.240 |
KEY RATIOS
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PARTICULARS |
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31.03.2004 |
PAT / Total Income
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(%)
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2010.159 |
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Net Profit Margin
(PBT/Sales) |
(%) |
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2010.159 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
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39.25 |
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Return on Investment (ROI)
(PBT/Networth) |
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0.67 |
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Debt Equity Ratio
(Total Liability/Networth) |
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1.70 |
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Current Ratio
(Current Asset/Current
Liability) |
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2.39 |
LOCAL AGENCY FURTHER INFORMATION
PROFILE
Arvind Brands Limited, a
wholly – owned subsidiary of Ahmedabad-based Arvind Mills, the Lalbhai group
flagship, was established in 1993. A pioneer in branded garment business in
India, Arvind Brands Limited is a licensee for Arrow, Lee and Wrangler in the
country. It also owns other domestic brands such as Excalibur, Newport, Flying
Machine, Ruggers and Bay Islane. The company, thus, has a strategic basket of
brands at different price points, which cater to every segment of the domestic
market. While the 2002-03 turnover was around Rs. 1800 millions, the projected
turnover for 2003-04 was about Rs. 2650 millions. Arrow, the company’s premium
menswear brand that is celebtrating 10 years in India, is expected to turn up
with Rs. 1000 millions (current turnover about Rs. 620 millions) in the
company’s top line by 2005. Interestingly, in a recent initiative, Arvind Brands
tied up with Pantaloon Retail to retail its Ruf and Tuf range of jeans
fashionwear through the latter’s Big Bazaar outlets across the country. This
venture will sell close to 100,000 pieces per month, thereby translating into a
turnover of Rs. 300 million to start with.
Of perhaps a larger
significance is Arvind Brands launch this year of Tommy Hilfiger in India.
Arvind Murjani Brands Private Limited (AMB), a joint venture between the
Murjani Group and Arvind Brands Limited, has entered into a sub-licensing
agreement with GVM International for marketing and distribution of Tommy
Hilfiger apparel (men’s sportswear and jeanswear, and junior’s jeanswear
collections). Tommy Hilfiger, honorary chairman and principal designer of the
$2 billion company, was in India to launch exclusive stores in New Delhi,
Mumbai and Bangalore to be soon followed by freestanding specialty stores
across the country. Tommy Hilfiger Corporation, through its subsidiaries,
designs, sources and markets men’s and women’s sportswear, jeanswear and
childrenswear under the Tommy Hilfiger trademark.
Arvind Brands has invested
substantially in strengthening its retailing. In order to minimizing the lead
time it has not only geared its supply chain by completely networking all
retail chains with the back-ended manufacturing/supply bases, but also has
invested about Rs. 10 millions in technology to achieve greater efficiency in
networking and supply chain management.
OPERATIONS
This is the first year of operations for the company. Your company has reported total sales of Rs. 0.523 millions during the period under review. The company has registered an operating loss before interest and depreciation of Rs. 16.423 millions. The operations were below the optimum level being the first year of operations.
With excise duty
applicability being made optional from July 2004, the company has opted for the
excise duty exemption and this will improve the profitability of the business.
The initial feedback from the
customers is encouraging for this major American fashion brand getting launched
in India.
Trade References
- Mangal Plastic Udyog
- Shashi Printers
- S. V. Polymers
- Easy Pack
PRESS
CLIPPING
Bangalore, February 2
Arvind Murjani Brands Private
Limited (AMB), a joint venture between Murjani Group and Lalbhai Group,
announced today that it has entered into a licensing agreement for marketing
and distribution of Tommy Hilfiger apparel in India.
AMB will introduce the Tommy
Hilfiger mens’ sportswear, mens’ jeanswear and juniors’ jeanswear collections
in freestanding speciality stores across country in spring 2004. Last year,
this newspaper had first reported Arvind’s move to bring Tommy Hilfiger into
the country.
“They are very excited to
launch Tommy Hilfiger in India,” said Mr. Tommy Hilfiger, Honorary Chairman and
Principal Designer of Tommy Hilfiger Corportation. “This agreement is part of
their commitment towards offering the complete Tommy Hilifiger lifestyle to the
Indian consumer and he look forward to make their products available in this
dynamic marketplace,” he added.
Mr. Darshan Mehta, President,
Arvind Brands Limited, said, “Launching Tommy in India goes to prove its
group’s continued commitment to further develop the Indian market and meet the
evolving needs of the urban Indian consumer.”
PTI (Sunday, April 18, 2004)
New Delhi : United States
‘largest selling apparel brand, Tommy Hilfiger, is scheduled to be launched in
India this week by a joint venture of the Arvind Lalbhai Group.
Called Arvind Murjani Brands
Private Limited, the company is a joint venture between Murjani and Lalbhai
groups for marketing and distribution of this brand in the country, sources
said here.
AMB will introduce Tommy
Hilfiger’s sportswear, men’s jeanswear and junior jeanswear collections in speciality
stores across the country, they said.
While no company official
could be reached for comments, the brand is being formally launched on April
20.
Arvind to bring in Tommy Hilfiger
ARVIND
Murjani Brands Pvt Ltd (AMB), a joint venture between Murjani Group and Lalbhai
Group, announced today that it has entered into a licensing agreement for
marketing and distribution of Tommy Hilfiger apparel in India.
AMB
will introduce the Tommy Hilfiger mens' sportswear, mens' jeanswear and
juniors' jeanswear collections in freestanding speciality stores across country
in spring 2004. Last year, this newspaper had first reported Arvind's move to
bring Tommy Hilfiger into the country.
"We
are very excited to launch Tommy Hilfiger in India," said Mr Tommy Hilfiger,
Honorary Chairman and Principal Designer of Tommy Hilfiger Corporation.
"This agreement is part of our commitment towards offering the complete
Tommy Hilfiger lifestyle to the Indian consumer and I look forward to making
our products available in this dynamic marketplace," he added.
Mr
Darshan Mehta, President, Arvind Brands Ltd, said, "Launching Tommy in
India goes to prove our group's continued commitment to further develop the
Indian market and meet the evolving needs of the urban Indian consumer."
Tommy Hilfiger to debut with sportswear, jeans
Boby
Kurian
Bangalore
, March 30
ARVIND
Murjani Brands Ltd, a 50:50 joint venture between Arvind Brands and the Vijay
Murjani-managed GVM International, will launch the premium apparel business of
Tommy Hilfiger in the country through five exclusive stores in Delhi, Mumbai,
Bangalore and Chandigarh in mid-April. The eponymous designer behind the brand
will be in India to mark the entry of the brand.
Mr
Darshan Mehta, President of Arvind Brands, who will head the operations of the
joint venture, said the brand will hit the market initially with sportswear for
men, jeans for men and women and will add kidswear and women's sportswear lines
later. "Our stores will be large-sized, ranging between 2,000 to 5,000 sq
ft area," Mr Mehta said. To begin with, Delhi will have two stores, while
Mumbai, Bangalore and Chandigarh will have one each. "By the end of the
current calendar year, we hope to have seven stores, adding a second one in
Mumbai and foraying into either Hyderabad or Chennai," he added.
The
joint venture plans to ramp up the chain of stores to 10 in the next year and
has ruled out putting Tommy Hilfiger in department store chains and upmarket
multi-brand outlets . Mr Mehta claimed the brand's Indian stores would offer an
experience on par with its overseas outlets anywhere. Arvind's partner, GVM
International Limited, is a licensee of Tommy Hilfiger Licensing Inc, a
wholly-owned subsidiary of Tommy Hilfiger Corporation
Mr
Mehta said Tommy Hilfiger knits would be priced between Rs 1,000 to Rs 1,700,
while woven shirts will fall in the price bracket of Rs 1,700 to Rs 3,500. The
bottomwear, Mr Mehta, said, could be priced between Rs 1,900 to Rs 3,500.
"The brand will look for a 20 per cent premium over its competing brands
in the domestic premium apparel market," he added. The JV will also be
marketing accessories such including bags and perfumes — Tommy and Tommy Girl —
for men and women.
The
company’s Fixed Assets of important value includes:
- Plant and Machinery
- Data Processing Equipment
- Furniture and Fixtures
This season, Tommy Hilfiger Children’s Wear has
reinvented its classic all-American heritage and has gone back to its preppy
roots.
Signature Tommy details like bold and bright colors and quality fabrics take’s
you back to school in style.
All of Tommy’s classic pieces have been recharged to fit today’s modern
lifestyle!
For fall ‘05 Tommy Hilfiger continues with a bold and bright color palette.
Colors are deeper and more jewel toned than the sorbet colors from spring.
Layette girls’ color palette is a combination of pinks and dark reds.
The jumper set has a mini houndstooth texture with a petal collar bodysuit.
Her pinpoint oxford dress is updated with smocking at the chest and floral embroidery.
Layette boys’ color palette mixes soft blues, fence white and navy.
Taking the cue from the older boys, Tommy is offering traditional rugbies in a
combination of bold stripes, thin stripes, solids, and pieced fabrics.
Tommy Hilfiger is presently available in the cities of Mumbai at Dhanraj Mahal,
Colaba; South Extension, New Delhi; MGF Mall, Gurgaon; Forum Mall, Bangalore;
Sector 17, Chandigarh; No. 2, Banjara Hills, Hyderabad and 10 Elgin Road,
Calcutta.
The Tommy Hilfiger store is open Monday to Sunday from 10:30 a.m. to 9:30 p.m.
Tommy Hilfiger launched its apparel line in India in April 2004 though Arvind
Murjani Brands Pvt Ltd a joint venture between the Murjani Group and Arvind
Brands Ltd.
Tommy Hilfiger is aimed at the fashion-conscious, well-travelled, aware urban
Indian (both men and women) who is exposed to international brands and has now
been given the convenience to shop for the same in India.
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. 45.92 |
|
UK
Pound |
1 |
Rs. 84.62 |
|
Euro |
1 |
Rs. 58.03 |
SCORE & 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 |