MIRA INFORM REPORT
|
Report
Date : |
14th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
HINDUSTAN
LEVER LIMITED |
|
|
|
|
Registered
Office : |
Hindustan
Lever House, 165/166, Backbay Reclamation, Mumbai – 400 020, Maharashtra,
India |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.12.2005 |
|
|
|
|
Date
of Incorporation : |
17.10.1933 |
|
|
|
|
Com.
Reg. No.: |
11-2030 |
|
|
|
|
CIN
No.: [Company
Identification No.] |
U15140MH1933PTC002030 |
|
|
|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMHOO225B |
|
|
|
|
PAN
No.: (Permanent
Account No.) |
AAACH1004N |
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|
|
|
Legal
Form : |
Public
Limited Liability Company The company’s shares are listed in the Stock Exchanges. |
|
|
|
|
Line
of Business : |
Engaged in manufacturing and marketing of Processed
Triglycerides / Hydrogenated Oils / Vanaspati, Ghee, Soaps, Synthetic
Detergents, Personal Products, Glycerine (Refined), Fine Chemicals, Silica,
Leather Garments / Goods, Plant Growth Nutrient, Catalyst, Carpets, Druggets
and other Floor Coverings, Packed Tea, Garden Tea, Instant Tea, Packed
Coffee, Milk Powder (including baby food), Footwear, Shoe uppers and other
Components, Functionalised Biopolymers, Zeiolite, Processed Foods, Canned and
Processed Fruits and Vegetables, Frozen Desserts, Margarine and Animal
Feeding Stuffs. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
93000000 |
|
|
|
|
Status
: |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
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|
|
|
Litigation
: |
Clear |
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|
|
Comments
: |
Subject
is a well-established, professionally managed and reputed company having
excellent track records. Today, Hindustan Lever is the country’s largest
consumer products company. The company’s products are well received in and
outside India. Available
information indicates very high financial responsibility of the company. Financial position of the company is good.
Payments are always correct and as per commitments. The
company can be considered good for any normal business dealings. |
LOCATIONS
|
Registered
Office : |
Hindustan
Lever House, 165/166, Backbay Reclamation, Mumbai – 400 020, Maharashtra,
India |
|
Tel.
No.: |
91-22-22819949
/ 22886373 / 22843987 / 22835911 / 22827219 / 217 / 218 / 222 / 221 / 210 /
205 / 211 / 214 / 215 / 212 / 209 / 208 / 250 / 216 / 206 / 207 / 22858400 /
22824641 / 22843856/22827467/478 |
|
Fax
No.: |
91-22-22041920/22043117/22871970/22846958 |
|
E-Mail
: |
|
|
Website
: |
|
|
Telex
: |
011-2323
HLHO IN |
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|
|
|
Overseas
Customer Service Centres: |
v
300, Upper Richmond Road West, London SW 14, 7GJ, United Kingdom. Tel. No. 01 878 5254 Fax No. 01 879 1839 Telex : 918112 v
303,
5th Avenue, Suite 709, New York 10016, U.S.A Tel. No. 212 725 0679 Fax No. 212 725 0718 Telex : 220715 v
Suite 507, Akasaka Q Bldg, 7-9-5, Akasaka, Minato-Ku, Tokyo, Japan -
107 Tel. No. 03 583 1225 Fax No. 03 505 0541 Telex : 2423450 |
|
|
|
|
Major
Operating Units At: |
v
Sewree,
Mumbai, Maharashtra, India v
Andheri,
Mumbai, Maharashtra, India v
Taloja,
Maharashtra, India v
Garden
Reach, Kolkata, West Bengal, India v
Shamnagar,
West Bengal, India v
Bari
Brahmana, Jammu, India v
Haldia,
Gujarat, India v
Plot
No. 254, Sector IV, Special Economic Zone, Kandla, Gujarat, India v
Chindwara,
Madhya Pradesh, India v
Pondichery,
Tamil Nadu, India v
Yavatmal,
Maharashtra, India v Pune, Maharashtra, India |
|
|
|
|
Branch
: |
123, G.
N. Chetty Road, T. Nagar, Chennai – 600 017, Tamilnadu |
DIRECTORS
|
Name : |
Mr. M. S.
Banga |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. M. K.
Sharma |
|
Designation
: |
Vice
Chairman |
|
|
|
|
Name : |
Mr. A.
Narayan |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. V.
Narayanan |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. D. S.
Parekh |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. C. K.
Prahalad |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.Harish Manwani |
|
Designation
: |
Non-Executive Chairman |
|
|
|
|
Name : |
Mr. D.
Sundaram |
|
Designation
: |
Director
Finance and IT |
|
|
|
|
Name : |
Mr. S.
Ramadorai |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. A.
Adhikari |
|
Designation
: |
Managing
Director |
|
|
|
|
Name : |
Mr. S.
Ravindranath |
|
Designation
: |
Managing
Director Foods |
|
|
|
|
Name : |
Mr. Ashok
Gupta |
|
Designation
: |
Vice
President & Company Sectary |
|
|
|
|
Name : |
Mr.
Douglas Baillie |
|
Designation
: |
Managing
Director (CEO) |
|
Name : |
Mr. M. S.
Banga |
|
Designation
: |
Chairman |
|
Date
of Birth/Age : |
48 years |
Profile: -
|
He is the
Chairman and a Whole-time Director of the company. A gold medallist from IIT
- Delhi and IIM-Ahmedabad, he joined the company as a Management Trainee in
1977. After various assignments in the marketing and sales functions in India
and a stint with Lever Brothers U.K. Mr. Banga took charge of the company's
personal products division in 1993 and joined the Management Committee in
February 1995. He was appointed as a director of the company in August 1995.
In December 1998, Mr. Banga moved to Unilever in London as Senior Vice
President with world-wide responsibility for the Hair and Oral Care
categories. He returned to India in April, 2000 as the Chairman of the
company. |
|
|
|
|
Name : |
Mr. M. K.
Sharma |
|
Designation
: |
Vice
Chairman |
|
Date
of Birth/Age : |
55 years |
Profile: -
|
He is the
Vice-Chairman and a Whole-time director of the company. After graduating in
Political Science, he completed his L. L. B. from the University of Lucknow.
He then went on to a Post-graduate Diploma in Personnel Management from the
Department of Business Management, Delhi University and a Diploma and Labour
Law from the Indian Law Institute, Delhi. After working for six years with
the DCM group, Mr. Sharma joined the company in 1974 as the Legal Manager. He
was inducted on the Board of the company as Director (Legal and Secretarial)
in August, 1995 and has been the Vice-Chairman since May, 2000. |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Unilever
and its associates |
1134849460 |
51.55 |
|
Sub total
: |
1134849460 |
51.55 |
|
Foreign
Banks |
50570 |
0.00 |
|
Foreign
Financial Institutions |
301097883 |
13.68 |
|
Foreign
Nationals |
30870 |
0.00 |
|
Non-Resident
Indians |
6682235 |
0.30 |
|
Overseas
Corporate Bodies |
7950 |
0.00 |
|
Sub total
: |
307869508 |
13.99 |
|
Bodies
Corporate |
18271470 |
0.83 |
|
General
Insurance Corporation of India |
134003081 |
6.09 |
|
Government
Companies |
6808406 |
0.31 |
|
Industrial
Development Bank of India |
980 |
0.00 |
|
Life
Insurance Corporation of India |
148788789 |
6.76 |
|
Mutual
Funds |
13004776 |
0.59 |
|
Nationalised
Banks |
3224994 |
0.15 |
|
Trusts |
1096693 |
0.05 |
|
Unit
Trust of India |
240450 |
0.01 |
|
Sub total
: |
325439639 |
14.78 |
|
Resident
Individuals |
431569302 |
19.61 |
|
Sub total
: |
431569302 |
19.61 |
|
Directors
and their Relatives |
213323 |
0.01 |
|
Sub total
: |
213323 |
0.01 |
|
In-transit |
1302561 |
0.06 |
|
Sub total
: |
1302561 |
0.06 |
|
Total: |
2201243793 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Engaged in manufacturing and marketing of Processed
Triglycerides / Hydrogenated Oils / Vanaspati, Ghee, Soaps, Synthetic
Detergents, Personal Products, Glycerine (Refined), Fine Chemicals, Silica,
Leather Garments / Goods, Plant Growth Nutrient, Catalyst, Carpets, Druggets
and other Floor Coverings, Packed Tea, Garden Tea, Instant Tea, Packed
Coffee, Milk Powder (including baby food), Footwear, Shoe uppers and other
Components, Functionalised Biopolymers, Zeiolite, Processed Foods, Canned and
Processed Fruits and Vegetables, Frozen Desserts, Margarine and Animal
Feeding Stuffs. |
|
|
|
|
|
|
|
Imports
from : |
Europe, USA and Far East |
|
|
|
|
Terms
: |
|
|
Purchasing : |
L/C and Credit Terms |
PRODUCTION STATUS
|
Particulars |
|
Licensed Capacity |
Installed Capacity |
|
Processed
triglycerides/ |
|
|
|
|
hydrogenated
oils/vanaspati |
|
38,950 |
8166 |
|
Soaps |
|
3,77,538 |
200084 |
|
Synthetic
detergents |
|
4,46,580 |
307946 |
|
Reisonalprodudsth) |
|
2,50,898 |
74175 |
|
Glycerine |
|
12,324 |
5910 |
|
Finechemicals(d) |
|
2,417 |
1167 |
|
Organic
Spsciality Chemicals |
|
367 |
-- |
|
Ossein |
|
1,000 |
-- |
|
Di-caldum
phosphate |
|
2,000 |
-- |
|
Dicamba
herbicide |
|
333 |
-- |
|
Fabricsoftener |
|
2,833 |
4281 |
|
Fatly
acids |
|
94,333 |
60000 |
|
Plantgrowth
nutrient |
|
667 |
-- |
|
Plantgrowth
nutrient(Kiblitres) |
|
200 |
-- |
|
Fluid
cracking catalyst (e) |
|
5,000 |
-- |
|
Oilmilling
-Oik |
|
19,438 |
-- |
|
-Oilseeds |
|
32,668 |
7300 |
|
-Oilcakesetc. |
|
14,833 |
-- |
|
Industrial
machinety(unte)(e) |
|
24 |
-- |
|
Perfumery
and cosmetic produds(unte)(e) |
|
30,00,000 |
3750000 |
|
Perfumery
and cosmetic products |
|
362 |
500 |
|
F&cketTea
below 1 kg. and tea bags (e) |
|
5,000 |
-- |
|
InstantTea |
|
650 |
1200 |
|
Furrfonalisedbiopdymerfe) |
|
7,875 |
880 |
|
Zeolites
(e) |
|
5,000 |
-- |
|
Frozen
Surimi, Fresh and Frozen fish, Mollusees, etc. |
|
41,481 |
40096 |
|
Edible
Groundnut Flour, Protein Foods, et. |
|
7,667 |
3796 |
|
Synthetic
Beverages, Processed Foods, et. |
|
30,635 |
15000 |
|
Canned
and Processed FruteandVegetable |
|
26,316 |
9216 |
|
Padogingmachinery(units) |
|
5 |
40 |
|
Printing
machinery(units) |
|
8 |
-- |
|
Cravurecylindersarricomponents(units) |
|
875 |
-- |
|
lce-cnsanVFrozendesserts(Mln.Kgs.)(j) |
|
22 |
8 |
|
Instant
Foods |
|
500 |
-- |
|
PairnayCbrnpounds |
|
3,106 |
-- |
|
Flavouring
Essences |
|
1608 |
-- |
|
Non-scheduled: |
|
|
|
|
PackedTea |
|
N.A. |
282003 |
|
GaidenTea |
|
N.A. |
Not Ascertainable |
|
FktedCofe |
|
N.A. |
7900 |
|
Margarine |
|
N.A. |
-- |
|
Scourers
(f) |
|
N.A. |
6800 |
|
RefinedOils |
|
N.A. |
1070 |
GENERAL INFORMATION
|
No. of
Employees : |
36000 |
|
|
|
|
Bankers
: |
Ø
State Bank of India Ø
Standard Chartered Bank Ø
Citibank N. A. Ø
Hongkong & Shanghai Ø
Banking Corporation Ø Bank of
America Ø
Deutsche Bank Ø
ABN-AMRO Bank Ø
Punjab National Bank Ø
Corporation Bank Ø
HDFC Bank Ø ICICI
Bank |
|
|
|
|
Facilities : |
SECURED LOANS 31.12.2004 (Rs. in millions) 9%
Secured Redeemable Non Convertible 13207.463 Debentures of the face value of Rs. 6 each Secured
by charge on identified immovable and
movable properties of the Company Redeemable in full at
the end of 18 months from 2nd July, 2003, being the date of allotment. Debentures
held by : Directors
- Rs. 0.621 Millions (2003 - Rs.0. 383 Millions) The
Secretary - Rs. 0.008 Millions (2003 - Rs. 0.029 Millions ) Note :
The Company has set apart funds for redemption
and invested them as per the terms of the
Scheme of Arrangement. Refer Note 20 to the
Balance Sheet Loans and
Advances from Banks : - Bank
overdrafts
418.153 Secured
by hypothecation of stocks, book debts, etc. Export
Packing Credit 904.962 Secured
by a pari passu charge on certain current
assets Total
14530.578 UNSECURED LOANS Short-term loans and
advances : From
Banks Overdrawn book balance on current account 136.745 Other
loans and advances Other than from banks 43.822 (repayable
before 31st December, 2005 -
Rs. 0.446 Millions ; 2004 - Rs. Nil) Total
180.567 |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
v
A.
F. Ferguson and Company Chartered Accountants Mumbai, Maharashtra, India v
Lovelock
and Lewes Chartered Accountants Mumbai,
Maharashtra, India |
|
|
|
|
Subsidiaries
: |
v
Lipton India Exports Limited v
Indexport Limited v
Bon Limited v
Nepal Lever Limited. v
Lever India Exports Limited v
Merryweather Food Products Limited v
International Fisheries Limited v
KICM (Madras) Limited. (upto August, 2003)[Refer
Note v
14(ii) of Notes to Profit and Loss Account] v
Modern Food Industries (India) Limited v
Daverashola Tea Company Limited v
Pond's Exports Limited v
Thiashola Tea Company Limited v
Indigo Lever Shared Services Limited v
Rossell Industries Limited v
TOC Disinfectants Limited v
Modern Food and Nutrition Industries Limited v
Levers Associated Trust Limited. v
Levindra Trust Limited v Hindlever
Trust Limited Fellow
Subsidiaries : v
Brooke Bond Assam Estates Limited. v
Brooke Bond Group Limited v
Brooke Bond South India Estates Limited v
Lever Faberge UK v
Unilever U.K. Central Resources Limited v
Unilever Overseas Holdings Limited. v
Unilever Australia Export Pty. Limited. v
Unilever Australia Limited v
Lever Brothers Bangladesh Limited v
Unilever Canada v
Unilever Cote d'lvoire v
Unilever Ghana Limited v
Unilever Kenya Limited v
Unilever New Zealand Limited. v
Lever Brothers Pakistan Limited v
Unilever Singapore Pte Limited v
Unilever Foods Espana, S.A - Division Frigo v
Unilever South Africa (Pty.) Limited v
Unilever Ceylon Limited v
Unilever Overseas Holdings AG v
Lever Brothers West Indies Limited. v
Unilever Uganda Limited v
Unilever Research Laboratory, Port Sunlight v
Unilever Research Laboratory, Colworth House v
BB Kenya Group v
Unilever N.V. v
Unilever Overseas Holdings B.V. v
Unilever Brasil Ltda. v
Lever Chile S.A. v
Unilex Cameroon S.A. .- v
Unilever France S.A. v
Unilever International Paris v
Unilever Deutschland GmbH v
Lever Faberge Deutschland GmbH v
Unilever Hong Kong Limited v
BBL Japan K.K. v
Nippon Lever K.K. , , v
Safial B.V. v
Sagit SPA, Italy v Unilever
Ethiopia v
Unilever Philipines (Prc), Inc. v
PT Unilever Indonesia TBK v
Unilever Thai Holdings Limited. v
Unilever Thai Trading Limited v
Unilever Sanayi ve Ticaret Turk A.S. v
Unilever Home & Personal Care USA v
Lever Maroc S.A. v
Lever Egypt SAE v
Unilever (Shanghai) Co. Limited v
Lipton Division, Canada v
Lever Arabia Limited v
Lever Brothers Nigeria Limited v
Severn Gulf FZE v
Lipton Soft Drinks (Ireland) v
Lever Israel v
Elida P/S, Vietnam v
Thani Mursid Lever LLC, Arabia v
Unilever CR, Czech Republic v
Unilever Polska v
Lever International Marine Supplies (LIMS) BV v
Unilever Gulf Free Zone Establishment, Arabia v
Unilever (China) Limited v
Lever Fattal, Lebanon v
Unilever South Central Europe v
Unilever Baltic LLC v
Unilever Levant, Lebanon v
Unilever Tuketim Urunleri Sat Pazarlama Ticaret A.S. v
Unilever Best Foods, Vietnam v
Unilever SNG, Russia v
Unilever Taiwan Limited v
Unilever Ukraine v
Unilever Tuketim Mersin Serbest Bolge Subesi, Turkey v
Unilever Dominicana S.A. v
Elida Faberge Limited v
Towells Lever LLC, Arabia v
Binzagr Lever Limited, Arabia v
Hind Lever Chemicals Ltd. (Also an Associate) v
(Upto 31st May, 2004) v
Unilever Industries Private Limited v
Digital Securities Private Limited. v
Lever Faberge France v
Unilever Tanzania Limited v
Unilever Cambodia Limited. v
Lever Faberge Belgium v
Unilever Maghreb Export SA, Tunisia v
Unilever Company Limited., China v
Unilever UK & CN Holdings, UK v
Lipton Ltd. - UK v
Lever Faberge Europe, Netherlands v
Unilever (Malaysia) Holdings Sdn Berhad v
Lever Ponds South Africa v
Lever Ponds Division, Canada v
Europalma International Insurance Services B.V. v
Fine Tea Co., Egypt v
Lipton US Group v
Unilever Asia Private Limited v
Lever Faberge Italia SPA v
Unilever United States Inc. v
Hefei Lever Detergents Co. Limited, China v
Unilever Korea v
Unilever Vietnam v
Unilever Canada - Foods v
Unilever Algeria v
Unilever Nigeria . , v
UAL Lever Rexona v
Lipton Limited (Head Office) / Lipton Tea Supply
Limited v Unilever
Market Development SA |
|
|
|
|
Associates
: |
Vashisti Detergents L |
|
|
|
|
Holding
Company : |
Unilever PLC |
|
|
|
|
Joint
Venture : |
v
SC Johnson Products Private Limited (upto
June, 2003) v
Kimberly - Clark Lever Private Limited v
Quest International India Limited. v Lever
Cist Brocades Private Limited (upto September, 2003) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2250000000 |
Equity
Shares |
Re. 1/- each |
Rs. 2250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2201243793 |
Equity
Shares |
Re. 1/- each |
Rs. 2201.244 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
2201.200 |
2201.244 |
2201.244 |
|
2] Reserves & Surplus |
20855.000 |
18725.851 |
19186.016 |
|
NET WORTH |
23056.200 |
20927.095 |
21387.260 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
245.000 |
14530.578 |
16036.965 |
|
2] Unsecured Loans |
324.400 |
180.567 |
1006.079 |
|
TOTAL BORRWING |
569.400 |
14711.145 |
17043.044 |
|
|
|
|
|
TOTAL
|
23625.600 |
35638.240 |
38430.304 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13855.000 |
14231.384 |
12956.258 |
|
Capital work-in-progress |
980.300 |
944.222 |
738.426 |
|
|
|
|
|
|
INVESTMENTS |
20142.000 |
22295.627 |
25749.308 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
13249.700 |
14704.426 |
13926.334 |
|
Sundry Debtors |
5228.300 |
4892.697 |
4708.501 |
|
Cash & Bank Balances |
3550.300 |
6980.480 |
8064.811 |
|
Other Current Assets |
0.000 |
527.771 |
624.981 |
|
Loans & Advances |
8988.400 |
5944.179 |
7693.262 |
|
Total Current Assets |
31016.700 |
33049.553 |
35017.889 |
|
Less : |
|
|
|
|
Current Liabilities |
30779.700 |
25907.914 |
25594.832 |
Provisions
|
11588.700 |
11234.637 |
13111.139 |
Total Current Liabilities
|
42368.400 |
37142.551 |
38705.971 |
|
Net Current Assets |
(11351.700) |
(4092.998) |
(3688.082) |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
DEFERRED TAX |
0.000 |
2260.005 |
2674.394 |
|
|
|
|
|
TOTAL
|
23625.600 |
35638.240 |
38430.304 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
Sales Turnover [including other income]
|
122714.400 |
102457.802 |
105981.815 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
16580.600 |
15053.175 |
22449.496 |
Provision for Taxation
|
2499.600 |
3060.410 |
4406.100 |
Profit/(Loss) After Tax
|
14081.000 |
11992.765 |
18043.396 |
|
|
|
|
|
Export Value
|
NA |
13229.010 |
12788.244 |
|
|
|
|
|
Import Value
|
NA |
6771.876 |
6350.266 |
|
|
|
|
|
Total Expenditure
|
122615.300 |
87404.627 |
83532.319 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
31.03.2006 [1st
Quarter] |
|
Sales Turnover |
|
|
27980.500 |
|
Other Income |
|
|
2182.400 |
|
Total Income |
|
|
30162.900 |
|
Total Expenditure |
|
|
24675.000 |
|
Operating Profit |
|
|
5487.900 |
|
Interest |
|
|
20.500 |
|
Gross Profit |
|
|
5467.400 |
|
Depreciation |
|
|
338.600 |
|
Tax |
|
|
663.800 |
|
Reported PAT |
|
|
4428.600 |
200603 Quarter 1 - Domestic FMCG - HPC Rs 20684.10 million
Domestic FMCG - Foods (including Ice Cream) Rs 4321.30 million Exports Rs
2755.30 million Others Rs 219.80 million Other Income Includes Operational Rs
365.00 million Financial Rs 328.60 million Expenditure Includes
(Increase)/ecrease in Stock in Trade Rs (532.50) million Consumption of Raw
Materials Rs 12016.20 million Purchase of goods Rs 3765.20 million Staff Cost
Rs 1563.50 million Advertising & Promotions Rs 3033.40 million Other
Expenditure Rs 4829.20 million Tax Includes Provision for Current Tax Rs 618.80
million Deferred Tax Rs 36.40 million Taxation Adjustments of Previous Periods
(net) Rs 45.00 million Depreciation Indicates Depreciation / Amortization EPS
is Basic & Diluted Status of Investor Complaints for the quarter ended
March 31, 2006 Complaints Pending at the beginning of the quarter 10 Complaints
Received during the quarter 77 Complaints disposed off during the quarter 80
Complaints unresolved at the end of the quarter 07 1. Total sales grew by 11.6%
during the quarter. FMCG sales grew by 18.3% driven by 20.0% growth in HPC
business and 10.8% growth in Foods. 2. Operating profit (Profit before Interest
and Tax) for March quarter grew by 26.9%; Profit before tax grew by 28.8%,
while PAT grew by 13.6% Net profit grew by 77.0% due to the impact of
exceptional items. 3. Exceptional items (net of tax) for March Quarter 06
comprise: profit on disposal of a brand (Rs 2017.70 million), residual costs on
disposal of plantation subsidiaries (Rs 57.60 million), provision for
diminution in value of investments in a subsidiary (Rs 27 million), and
provision for retirement benefits and voluntary retirement (Rs 444.30 million)
4. The Honorable High court of Mumbai, approved the amalgamation of Vashisti
Detergents Ltd with the Company, effective July 01, 2005. Accordingly, the
results of Vashisti Detergents Ltd for MQ' 06 are included in the above
results. 5. The results for the quarter are not comparable to those of MQ 05 to
the extent of integration of subsidiaries _ (International Fisheries Ltd,
Lipton India Exports Ltd, Merryweather Food Products Ltd, TOC Disinfectants
Ltd, and Lever India Exports Ltd) with the Company, the demerger and subsequent
disposal of Doom Dooma and TEI plantation divisions, and the amalgamation of
Vashisti Detergents Ltd with the Company. Adjusting for the above, net sales
for MQ 06 is Rs 27722.50 million (MQ 05: Rs 24882.10 million; Profit before
interest and tax is Rs 3248.20 million (MQ'05: Rs 2709.30 million); PAT is Rs
2870 million (MQ,05 Rs 2656.60 million) and Net Profit is Rs 4358.80 million
(MQ'05 Rs 2571.90 million). 6. Provision for Taxation includes Fringe Benefit
Tax of Rs 100 million. 7. Previous period figures have been regrouped wherever
necessary to conform to this period's classification. 8. The text of the above
statement was approved by the Board of Directors at their meeting held on April
28, 2006 Limited Review : The Limited Review by the Statutory Auditors for the quarter
as required under clause 41 of the Listing Agreement has been completed and the
related Report forwarded to the Stock Exchanges. This Report does not have any
impact on the above Results and Notes which need to be explained.
KEY
RATIOS
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
Debt-Equity Ratio |
0.35 |
0.75 |
0.30 |
|
Long Term Debt-Equity Ratio |
0.30 |
0.63 |
0.24 |
|
Current Ratio |
0.82 |
0.90 |
0.94 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
5.10 |
4.88 |
5.36 |
|
Inventory |
8.53 |
7.54 |
8.27 |
|
Debtors |
23.64 |
22.65 |
26.43 |
|
Interest Cover Ratio |
87.36 |
12.57 |
34.14 |
|
Operating Profit Margin(%) |
15.06 |
16.14 |
21.69 |
|
Profit Before Interest And Tax Margin(%) |
14.02 |
15.02 |
20.57 |
|
Cash Profit Margin(%) |
12.81 |
12.13 |
17.11 |
|
Adjusted Net Profit Margin(%) |
11.77 |
11.01 |
15.99 |
|
Return On Capital Employed(%) |
56.62 |
44.11 |
60.30 |
|
Return On Net Worth(%) |
64.05 |
56.61 |
61.14 |
STOCK PRICES
|
Face Value |
Rs. 1/- |
|
High |
Rs. 229.35/- |
|
Low |
Rs. 218.80/- |
LOCAL
AGENCY FURTHER INFORMATION
History
In 1888, less than four
years after William Hesketh Lever launched Sunlight Soap in England, his
newly-founded company, Lever Brothers, started exporting the revolutionary
laundry soap to India. By the time the company merged with the
Netherlands-based Margarine Unie in 1930 to form Unilever, it had already
carved a niche for itself in the Indian market. Coincidentally, Margarine Unie
also had a strong presence in India, to which it exported Vanaspati
(hydrogenated edible fat). The Company was Incorporated in the year 1933.
A year after the merger, Unilever set up the Hindustan Vanaspati
Manufacturing Company, its first subsidiary in India and went on to strengthen
its position by establishing two more subsidiaries, Lever Brothers India
Limited and United Traders Limited, soon afterwards. The three companies, which
marketed Soaps, Vanaspati and Personal Products, merged in 1956 to form
Hindustan Lever, in which Unilever has a 51% stake.
1888 Lever soap, 'Sunlight', introduced in India through Imports
1918 Vanaspati(hydrogenated edible fat)launched through imports
1930 Unilever created through the merger of Lever Brothers, UK, and
Margarine Unie, Netherlands
1931 Unilever registers company in India--Hindustan Vanaspati
Manufacturing Company (HVM)--for local manufacture of Vanaspati
1933 Lever Brothers India Limited (LBIL) incorporated in India to
manufacture Soaps.
1935 United Traders Limited (UTL) incorporated in India to market
Personal Products.
1956 The three subsidiaries, HVM, LBIL and UTL, merge to form Hindustan
Lever Ltd. (HLL)
1958 Hindustan Lever Research Centre started functioning.
1979 Chemicals complex commissioned at Haldia, West Bengal.
1993 HLL's largest competitor, Tata Oil Mills Company (TOMCO), merges
with the company - Erstwhile Brooke Bond India acquires Kissan Business from
the UB Group and Dollops icecream business from Cadbury - Doom Dooma and Tea
Estates Plantation divisions merged with Brooke Bond - Brooke Bond and
erstwhile Lipton India merge to form Brooke Bond Lipton India Limited 1994 HLL
and US-based Kimberley-Clark Corporation form 50:50 joint venture,
Kimberley-Clark Lever Ltd.
1995 HLL and Indian cosmetics major, Lakme Ltd, form 50:50 joint venture,
Lakme Lever Ltd. HLL acquires Kwality and Milkfood 100% brandnames and
distribution assets.
HLL and US-based S.C. Johnson & Son Inc. form 50:50 joint venture,
Lever Johnson (Consumer Products) Pvt. Ltd.HLL Soaps and Detergent sales cross
one million tonnes
1996 HLL and associate company, Brooke Bond Lipton India Limited, India's
biggest in Food and Beverages,merge.1997 HLL and Gist Brocades BV form 50:50
joint venture, Lever Gist Brocades, to market 'Gold Seal Fermipan Instant
Yeast' for baking industry.
1998 Group company, Pond's India Ltd, merges with HLL. HLL acquires Lakme
brand, factories and Lakme Ltd's 50% equity in Lakme Lever Ltd. HLL acquires
manufacturing rights of Kwality icecream. Appellate Authority of Government of
India absolves HLL of insider trading charges, made by SEBI in 1997, in the
BBLIL merger.
During the year 2000,the company has acquired 76% stake in Modern Food
Industries Ltd,a government owned company. Again in 2001 the company acquired
the balance 24% through put option,subsequent to this acquisition of these
shares MFIL became a 100% subsidiary of HLL. In the same year Rossell
Industries Ltd also became a subsidiary of HLL,consequent to LIEL another 100%
subsidiary of HLL,which has raised its shareholding to 59.62% of the issued and
paid up capital.
HLL has achieved market leadership in soaps and detergents as well as
hair and skin care products and is the second largest manufacturer of dental
care products. HLL is also market leader in tea, processed coffee, ice cream
and frozen desserts, tomato-based products, jams and squashes.
Joint Ventures were formed for two of its non-FMCG businesses to protect
their value - one with Godrej Agrovet for their AFS business and another with
the ICI group for their Fragrance/Flavours division. In 2001 January,HLL has
exited from JV with Godrej Agrovet.
International Bestfoods Limited (IBL) has become a subsidary of Hindustan
Lever w.e.f April 21,2001. The Board of IBL has already approved the transfer
of 75.38% of the equity of IBL earlierheld by Best Foods USA in favour of HLL.
In October 2000 HLL acting in concert with Unilever made an open tender offer
for the remaining 24.62% of the IBL equity at price Rs 173.00 per share.
Consequently, the group shareholding in IBL post this offer rose to 83.36% of
which 75.38% was heldby Best Foods USA and 7.99% held by HLL. After prior
approval IBL was amalgamated with HLL and the consideration was paid in the
ratio of 2 equity shares of HLL for every 3 shares held in IBF.
Its flavours, fragrances and food ingredients business has been
transferred to Quest International India Ltd., a subsidiary of the company and
the joint venture with ICI Group has also been formed.
The company has signed an agreement with ICI India, a subsidiary of ICI
plc, UK, for sale of Nickel Catalyst business and Adhesives business, a
sub-unit of Specialty Chemicals Division of the company's Chemicals and Agri
operations for a consideration of Rs.210.000 Millions and Rs 90.000 Millions
respectively.
HLCL,a company which 50% equity being held by HLL,has decided to merge
its business with Tata Chemicals Ltd. The scheme of amalgamation which is being
formulated as for every 2 shares of HLCL,the shareholders of HLCL would receive
5 shares of Tata Chemicals Ltd. The company also proposed to issue Bonus
Debenture in the ratio of 1 Bonus debenture of Rs.6/- for every share of
Re.1/-.
During the year 2003, HLL has acquired Marine Business from the Amalgam
Group of Companies on 28th March 2003 by way of a slump sale of Assets of the
frozen seafood's business including the facilities for cooked shrimps and
pasteurised crabmeet on a going concern basis effective 1st January 2003.
The Edible Oils and Fats Business of HLL which includes manufacturing and
marketing of Vanaspati, Refined OIl and Bakery Fats was sold to Bunge
Agribusiness India Pvt Ltd on a going concern basis in 2003. This involved
assignment of well known brands like Dalda and its various extensions,
Masterline, Gold Seal, Silver Seal, Marvo, Biskin and Lily in India and
Nepal.
In the year 2004, The company has disposed its Mushroom business which
formed part of KICM (Madras) Ltd and its seeds Business.
The Company's Tea Plantations,Doom Dooma in Assam and Tea Estates
Division in Tamilnadu will be transfered to wholly owned subsidiaries. These
will be progressed in 2005.
Lever India Exports Ltd, Lipton India Exports Ltd, Merryweather Food
Products Ltd, International Fisheries Ltd and TOC Disinfectants Ltd the five
subsidiaries of the company is proposed to merge with the company.
During 2004, the Company has increased its installed capacity of
Synthethic detergents by 25000 Tonnes,Personal Products by 9007 Tonnes, Fatty
Acids by 11667 Tonnes, Instant Tea by 550 Tonnes, Functionalised biopolymer by
2550 Tonnes & Frozen Surimi,Fresh and Frozen fish, Mollusess etc by 8300
Tonnes. With this expansion, the total installed capacity of Synthethic
detergents,Personal Products, Fatty Acids, Instant Tea, Functionalised
biopolymer & Frozen Surimi,Fresh and Frozen fish, Mollusess etc has
increased upto 307946 Tonnes, 74175 Tonnes, 60000 Tonnes, 1200 Tonnes, 8800
Tonnes and 40096 Tonnes respectively.
The company’s well-known brands of Soaps, Detergents and
Personal Products are – Rin, Surf, Surf-Excel, Wheel, Lux, Pears, Rexona,
Hamam, Lifebuoy Gold, Liril, Dove, Cologne, Lime, La Sanc, Sunlight, Fair and
Lovely, Sunsilk, Pepsodent, Close-Up, Ala, Organic Shampoo, Annapurna Wheat
Flour, Clinic Plus, Vim, Anik Ghee and Dalda.
The company
also has collaboration with Kimberly Clark Lever Limited, Lever Gist Brocades
Limited, Lever Johnson (Consumer Product) Private Limited and Nepal Lever
Limited.
The company’s fixed assets of important value include Land
(Freehold and Leasehold), Building, Railway sidings, Plant and Machinery,
Furniture, fittings and office equipments, Trademarks and Motor vehicles
AS PER WEBSITE
Unilever's
mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good
and get more out of life.
Unilever's
mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and
get more out of life.
Their deep
roots in local cultures and markets around the world give us their strong
relationship with consumers and are the foundation for their future growth. We
will bring their wealth of knowledge and international expertise to the service
of local consumers - a truly multi-local multinational.
Their long-term success requires a total commitment to exceptional standards of
performance and productivity, to working together effectively, and to a
willingness to embrace new ideas and learn continuously.
To succeed also
requires, we believe, the highest standards of corporate behaviour towards
everyone we work with, the communities we touch, and the environment on which
we have an impact.
This
is their road to sustainable, profitable growth, creating long-term value for
their shareholders, their people, and their business partners.
Press release
For
Immediate Release
Contact: IPAN: 22661755
Snehhal/ Toral
snehhal@ipan.com/
toral@ipan.com
Entries open for
Project Saraswati Scholarships 2005
Graduate
& Post Graduate Scholarships from the
Fair & Lovely Foundation
Mumbai, June 27, 2005: The Fair & Lovely
Foundation invites Project Saraswati Scholarship applications for
the year 2005. In its third year since inception, the Project Saraswati
scholarships have now been extended to graduate studies in order to benefit a
larger number of deserving women. These scholarships for graduate and
postgraduate studies are granted to deserving young women who have the
aptitude, drive and ambition to achieve their goals, but are financially
constrained. Project Saraswati is one such project undertaken by the Fair &
Lovely Foundation for the economic empowerment of India’s young women.
Application forms can be downloaded from www.hll.com and
www.fairandlovelyfoundation.com
or call 022-30971682. The last date for receiving entries is 31 July 2005.
The Programme Directors for Project Saraswati are
Dr. Snehalata Deshmukh, ex-Vice Chancellor, Mumbai University and Padmashri
Lila Poonawalla, Founder & Chairperson, Lila Foundation and Chairperson,
DeLaval.
Under Project Saraswati, scholarships of up to
Rs 0.l00 Millions will be awarded to deserving young girls from across the
country, for any graduate and postgraduate course within India. The
scholarships will be given out on the basis of academic performance and a
personal interview by a panel of eminent judges as per terms & conditions
laid down by the Fair & Lovely Foundation Charter.
Application forms can be posted to:
Project Saraswati,
Fair & Lovely Foundation,
P.O. Box No. 11281,
Marine Lines Post Office,
Mumbai 400 020.
According to Padmashri Lila Poonawalla, Founder & Chairperson,
Lila Foundation and Chairperson, DeLaval, “Educating a woman is the best way to
empower her, and commitment towards higher education helps empower
underprivileged women. This initiative of the Fair & Lovely Foundation will
encourage deserving young women gain higher education and thus, will help
empower them.”
In 2004, 72 finalists
were chosen by a panel of eminent personalities from the fields of media,
education and social work from applications were received from across India. In
2003, the Fair & Lovely Foundation awarded scholarships to 47 deserving
women students.
About the Fair &
Lovely Foundation
The
Fair & Lovely Foundation is an initiative from Hindustan Lever Limited. The
Foundation seeks to Empower Indian women to change their destinies through Education,
Career Guidance and Skill training. Comprising of an advisory body of leading
women and professionals, this foundation has undertaken various projects and
initiatives in keeping with its vision of empowering women.
BRINGING FMCG BACK TO
GROWTH
MUMBAI,
June 24, 2005: Hindustan Lever Limited (HLL) has undergone a complete
transformation in the last five years, which has returned the company to growth
and reversed the trend of downtrading in the FMCG industry, HLL Chairman, Mr.
M.S. Banga, said here today. He was addressing the Annual General Meeting.
“In
recent years, the FMCG sector declined due to downtrading. As the largest FMCG
player, it was up to us to reverse the downtrading to realise its true growth
potential. Their transformation has resulted in a new HLL, which has
successfully faced this challenge and reversed this trend. It has done so by
substantially strengthening their brands and building capabilities. This has
already begun to yield benefits and we are returning to growth. Volume growth
is being followed by value growth, which in turn will bring profit growth,” Mr.
Banga said.
Focussed
FMCG company: He said, as a result of the transformation, HLL is now a focussed
FMCG company with branded businesses accounting for over 90% of sales,
consisting of 35 brands across 20 categories. The company had disengaged from
all non-FMCG or commodity businesses, with sales of Rs.17500.000 Millions as in
1999, while deriving excellent value for these divestments.
Foods building blocks in
place: Referring particularly to the Foods business, he said the right
building blocks had been put in place. The portfolio, which was fragmented and
lacked scale, has been consolidated and gross margins have been improved by
over 13% through product mix and cost reduction. The supply chain has been
cleared of all old stock and geared up for fresh availability on shelf. The
Foods business will now invest for growth through relevant innovation.
35 brands
with better value & bigger role in consumers’ lives: HLL, as a company, is
now focussed on 35 powerful brands, covering all consumer appeal and price
segments. They have been strengthened by ensuring that they offer better value,
and play a bigger role in consumers’ lives, backed by appropriate technology.
Wherever necessary, it has reduced prices to make the brands more affordable,
and launched several low unit size and price packs to make them more
accessible.
Vitality
through nutrition, hygiene & personal care: Mr. Banga said, “The
most significant challenge has been to move their brands beyond merely making
functional claims to playing a bigger and deeper role in the lives of
consumers. We had to move from selling a soap or a detergent to something far
more important and central to the consumer’s life. Consumers today are looking
for ways to look good and feel good so that they can get much more out of life.
In short, consumers are seeking Vitality in their lives. Their portfolio of 35
brands is uniquely positioned to offer nutrition, hygiene and personal care
benefits and thereby deliver Vitality.”
Investment
in the future: To ensure HLL’s competitiveness in the long-term, it has made
significant investments in product quality, pricing and marketing. The
investment in product quality alone has been over Rs.400 crores, or 5% of
sales, in the last three years. This is in addition to the cost of defending
market position, in the face of recent competition action.
“We have been
able to fully protect their market leadership and share, albeit sacrificing
short-term profit. We made this necessary trade-off as market share is the best
means of sustaining future profit. Over time, their stronger market positions
will surely lead to greater long-term profit. Despite these significant
investments to strengthen the long-term competitiveness and the costs of
defending their strong market position, we still remain one of the most
profitable companies in the country,” Mr. Banga said.
Distribution
& customer management reinvented: The company has also reinvented the management
of distribution channels and customers, who are now being serviced on
continuous replenishment. It is leveraging scale and building expertise to
service Modern Trade and Rural Markets. The sales force has been delayered to
improve response times and service levels. IT tools have been deployed for
connectivity across the extended supply chain of about 2,000 suppliers, 80
factories and 7,000 stockists. Backend processes have been combined into a
common Shared Service infrastructure.
Acorns for
the future: HLL has also begun to nurture some acorns – new businesses and
new ways of engaging with consumers -- for the future. The entry into water
purifiers, with Pureit, shows great promise. In urban India, Hindustan Lever
Network, which has already reached 1,400 towns with over 0.300 Millions
consultants, is HLL’s direct selling initiative. In rural India, Project
Shakti, already touching 75 million people in 60,000 villages of 12 states,
complements HLL’s rural reach. Simultaneously, it is providing a sustainable
source of income to underprivileged rural women, HLL’s partners in this
initiative.
Simpler,
leaner, empowered organisation: The company, as a whole, has been restructured.
Its eight Profit Centres have been integrated into two Divisions of Home &
Personal Care and Foods. “The result is a simpler and leaner organisation, less
hierarchical with fewer levels and greater empowerment. This has eliminated
complexity and speeded up decision making. Today the company is far more
youthful in attitude and spirit. There is greater openness and transparency,”
Mr. Banga said.
He said that over the next 10 years, India’s per
capita income is likely to double, with opportunities to catalyse penetration,
increase usage, and upgrade consumers. As a result, the FMCG market is expected
to grow to over Rs.100,000 Millions
from its current base of Rs.40,0000.000 Millions .
“We in the new Hindustan Lever see an exciting
opportunity for growth. We have 35 powerful brands covering all segments, with
leading market positions in most. Today, these are stronger and more relevant
to the consumer than ever. Their people are energised by the scale of the
opportunity and determined to seize it. The scale of their business and
operations gives us the resources we need.
We are very confident of delivering sustainable profitable growth,” Mr.
Banga concluded.
HARISH MANWANI CO-OPTED AS DIRECTOR ON HLL BOARD
HLL BOARD PROPOSES TO ELECT HARISH
MANWANI AS
NON-EXECUTIVE CHAIRMAN POST AGM IN JUNE
'05
MUMBAI,
May 02, 2005: At a meeting of the Board of Directors of Hindustan Lever
Limited (HLL) held on April 29, 2005, the Board has decided to co-opt, Mr.
Harish Manwani, President - Asia & Africa of Unilever as an Additional
Director on the Board of HLL.
Consequent to him
becoming President - Foods of Unilever, Mr. M S Banga has advised the
Board that he will not seek re-election as a Non-Executive Director at the AGM
of the Company scheduled for June 24, 2005.
It is the intention of
the Board to elect Mr. Harish Manwani as the Non-Executive Chairman of HLL in
succession to Mr. MS Banga from the conclusion of the AGM on June 24, 2005.
HLL's current National
Management, comprising the Vice Chairman, Mr. M.K. Sharma, Mr. D. Sundaram
(Director - Finance & IT), Mr. Arun Adhikari (Managing Director - HPC) and
Mr. S. Ravindranath (Managing Director - Foods) continues unchanged. The
National Management committee has responsibility for HLL's performance, and
overall coordination of the Divisional Structure and Corporate Functions.
On this occasion, Mr. Banga commented "In these
last years, we have strengthened the company by focusing on their 35 FMCG Power
Brands. We have improved quality and
affordability. We have also built their
core functional capabilities and created a more agile and consumer connected
company. Today we have a vibrant and
energized team that is confident of growing with India."
Mr. Manwani commented on the development stating
that “I feel privileged to be serving HLL as the Non-Executive Chairman.
The company has a long history of success with intrinsic
strengths in brands, technology, distribution and an enormous talent
pool. While there may be competitive challenges, HLL is strongly
placed to overcome these and will continue to play a very significant
role to serve the needs of the Indian consumers"
HLL PROPOSES TO TRANSFER DOOM DOOMA AND TEA
ESTATES PLANTATION DIVISIONS TO SUBSIDIARIES
MUMBAI, April 8, 2005: Hindustan Lever Limited
(HLL) has informed the stock exchanges that it proposes to transfer by way of
sale its tea plantation business, comprising both gardens and factories, in
Assam (Doom Dooma Division) and in Tamil Nadu (Tea Estates Division) to wholly
owned subsidiaries of the company. The company is seeking shareholders'
approval for the proposal, through a postal ballot, and statutory approvals.
The Board will subsequently decide the consideration and the
effective date of the transfer.
The services of permanent employees of the two Divisions will be
transferred to the subsidiaries with continuity of service and full protection
of their existing terms and conditions of service.
The Doom Dooma Division comprises seven tea estates in Assam 's
Tinsukia district (planted area of approximately 3100 hectares) and three tea
processing factories, with about 6100 permanent employees. In the last three
years, the Division produced 17,100 tonnes of tea but incurred operating
losses, primarily due to adverse weather conditions, excess supply leading to
low prices at the auctions and high social costs.
The Tea Estates Division in Tamil Nadu comprises seven tea estates
(planted area of approximately 3700 hectares) and six tea processing factories,
with about 6300 permanent employees. In the last three years, the Division
produced 31,200 tonnes of tea. It posted a slender profit in 2004, but incurred
losses in 2003 and 2002, once again due to adverse weather conditions, excess
supply leading to low prices at the auctions and high social costs.
The Plantation Divisions do not fit in with the objective of HLL
to focus on FMCG businesses. The company therefore believes that it would be
prudent to transfer them into separate subsidiaries with a view to providing
clear focus to operations, both in terms of land productivity and manpower
productivity to manage costs and restore economic viability. This would also
enable HLL to explore opportunities for formation of joint ventures with lead
industry players, with expertise in international sales and marketing. The
company could also consider an outright disposal, if that is considered to be
in the best interest of the business and all stakeholders.
Both the Divisions have gardens, which enjoy considerable equity
both in the domestic and international markets. But they do not realise any
premium for these equities, from captive supplies. It is believed that these
equities can be better exploited in collaboration with an industry player,
which is able to market garden teas in both domestic and international markets
at considerable premium, while taking advantage of HLL's presence in Assam and
Tamil Nadu, high quality plantation practices and harmonious relations with the
work force.
Also, operating experience over the last few years has
demonstrated that there are very little synergies between the Plantations
Divisions and the Packet Tea business. Besides, regulatory changes,
particularly in the Tea Marketing Control Order, have further diluted synergies
for tea packaging companies, vis-à-vis own plantations.
HINDUSTAN LEVER LIMITED – March Quarter 2006 RESULTS
· FMCG Sales grow by 18.3%; Total Sales growth at
11.6%
· HPC and Foods grow by 20% and 11% respectively
· PBIT grows 27%; Net Profit increases by 77%
Mumbai, April 28th, 2006:
Hindustan Lever Limited (HLL) announced its results for March
Quarter 2006. Total sales grew by 11.6% while sales
growth in domestic FMCG businesses
accelerated to 18.3%.
HPC business grew by 20% with good performance across
all categories. In the highly
competitive Laundry category, all brands recorded a
double digit sales growth. Shampoo
category also witnessed good sales growth. Strong
performance by Lux portfolio helped
Soaps category grow well. All brands in Skin category
maintained their growth momentum.
Consumer relevant innovation and effective market
activation continue to be key factors in
driving growth. The innovations during the quarter
include the re-launch of both Lifebuoy and
Sunsilk range, launch of new variants in Dove, launch
of Wheel Active Colours and Surf
Excel Gentle Wash (liquid) in Laundry, and launch of
Close-up Milk Calcium variant.
Foods business grew by 11%. Growth of 5% in Beverages
business was driven by good
performance in Coffee; Tea recorded only a marginal
growth in a declining market. All brands
in Processed Foods category recorded a double digit
growth. The re-launch of Kissan range
with superior mix and new positioning was the
significant Innovation in Foods business
during this quarter. Ice-cream grew strongly, led by
the impulse category.
Input cost pressure continued during the quarter led
by crude oil price escalation. The impact
of selective price increases, improved sales mix and
cost savings resulted in a higher gross
margin. In a fiercely competitive market context, a
large part of this margin increase was
re-deployed in brand investments for driving sales
growth. Advertising and Promotion spend
for the quarter, therefore, was accelerated and
recorded a 45% increase. Profit before
Interest and Taxes (PBIT) increased by 27%, as PBIT
margin improved from 10.5% of Sales
in MQ’05 to 11.9% in the current quarter.
Profit after tax (PAT) grew lower at 13.6%, as a
one-off tax credit of Rs 370.000 Millions in MQ’05, significantly reduced the
tax charge in the base. Underlying PAT increased by 34.5%. Net profit, after
considering the exceptional items, mainly relating to disposal of Nihar, was
higher by 77%. Mr. Harish Manwani, Chairman commented: “Growth momentum in FMCG
markets has sustained, and we continue to grow ahead of the market. We have
registered robust sales growth across categories, including in the highly
competitive categories of Laundry and Shampoo. We remain on course in terms of
strengthening their brand portfolio and improving their competitiveness in the
market place. We will continue to judiciously use the levers of pricing, cost
management and brand investment to sustain profitable growth.”
About HLL
HLL is India's largest Fast Moving Consumer Goods
company, touching the lives of two out
of three Indians. HLL's mission is to "add
vitality to life" through its presence in over 20
distinct categories in Home & Personal Care
Products and Foods & Beverages. The
company meets everyday needs for nutrition, hygiene,
and personal care, with brands that
help people feel good, look good and get more out of
life.
Postal Department releases special Lifebuoy Swasthya Chetna Postal Cover
Chief Post Master General of Maharashtra lauds Lifebuoy’s contribution
to health and hygiene awareness in rural India
Mumbai, 7th April 2006- Ms. K Noorjehan,
Chief Post Master General, Maharashtra Circle released a special Lifebuoy
Swasthya Chetna Postal Cover on the occasion of World Health Day. The
postal cover has been released to recognise Lifebuoy’s pioneering rural health
and hygiene education initiative, Lifebuoy
Swasthya Chetna. Launched in
2002, this ground-breaking programme has covered more than 17000 villages
across the country, with no signs of slowing down.
Commenting on the occasion, Ms. K Noorjehan said, “I am privileged
to release the Special Postal Cover in recognition of the phenomenal work done
by Lifebuoy. On the occasion of World Health Day, I urge all my brothers and
sisters to take personal hygiene habits like washing hands with soap seriously.
I congratulate Lifebuoy and Hindustan Lever for initiating and assiduously
implementing this socially beneficial movement”.
Mr. Nitin Paranjpe, Executive Director, Hindustan Lever Limited, said “We are
delighted to be India’s first brand to receive the honour of the special Postal
Cover. The Lifebuoy Swasthya Chetna movement has touched 2.000 Millions children
across 8 states and created awareness about the threat of invisible germs and
basic hygiene practices to counter the threat. So far we have covered over
17,000 villages and are happy to extend their efforts to another 10,000
villages this year. This recognition will go a long way in highlighting the
importance of basic hygiene practices that help prevent diseases”.
About Lifebuoy Swasthya Chetna:
Ignorance about basic
hygiene practices leads to high mortality rates caused by preventable diseases
like diarrhea in rural India. True to its vision of making people feel safe and
secure by meeting their hygiene and health needs, Lifebuoy saw a role for
itself in hygiene education.
Lifebuoy Swasthya Chetna
has been developed around the insight that people believe “visible clean is
safe clean”. Lifebuoy Swasthya Chetna establishes the existence of “invisible
germs” through a Glo-Germ demonstration. It has educated people about
maintaining good health through the practice of basic hygiene habits like
washing hands with soap.
The Lifebuoy Swasthya
Chetna campaign is divided into various phases/exposures. In the initial phase,
the Lifebuoy representative and an assistant interact with young students and
the influencers of the community like the Sarpanch, medical practitioners,
Panchayat members, etc. A number of tools like a pictorial story in a flip
chart format, the Glo-germ demonstration and a quiz with attractive prizes to
reinforce the message are used to make the module interactive and gain
involvement and participation from the school children.
This interaction is
replicated with the rest of the community on Swasthya Diwas and the key messages on hygiene and health are
reinforced through subsequent contact programs, thus preparing the community to
sustain good health practices by internalizing these messages. In subsequent
interactions, the parents are exposed to the health and hygiene communication.
The purpose is to present the activity as the villagers’ self initiative,
wherein the Lifebuoy Swasthya Chetna HDO is a facilitator and an influential
personality from the village is the chief guest. This brought about an
ownership of the campaign from the village community.
This campaign is
implemented by Ogilvy Outreach, the rural activation division of Ogilvy and
Mather. It focuses on media dark districts in the states of Madhya Pradesh,
Chattisgarh, Jharkhand, Bihar, Uttar Pradesh, Maharashtra, Orissa and West
Bengal.
After completing over
17000 villages between 2002 and 2005, an additional 10000 villages are being
added in 2006. This makes Lifebuoy Swasthya Chetna the single largest programme
of its kind in India.
Lifebuoy is India’s largest selling soap brand. Since
1895, Lifebuoy has been synonymous with health and hygiene through its germ
protection credentials.
Constantly evolving and keeping pace with the times,
the brand has undergone historic relaunches (in 2002 and in 2004) and now
offers contemporary, affordable germ protection for the entire family. Lifebuoy
has made the transition from being a tough, masculine soap that washes away
germs to one that offers an enjoyable and signature health experience for the
entire family.
In line with its objective of making health and
hygiene accessible to all, Lifebuoy has now has a range of bar soaps that offer
Lifebuoy’s signature germ protection (@ Rs 10 for 100g) in a range of 4
variants targeted at distinct consumer clusters. For young adults with
pimple-prone skin, Lifebuoy Clear Skin (@ Rs 13 for 75g) offers proven
reduction in pimples through its unique, breakthrough bathing bar formulation.
Lifebuoy is also available in liquid hand wash format (@ Rs 35 for 200 ml).
About Hindustan Lever Limited:
HLL is India's largest Fast Moving
Consumer Goods Company, touching the lives of two out of three Indians. HLL’s mission is to “add vitality to life” through its presence in over 20 distinct
categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday
needs for nutrition, hygiene, and personal care, with brands that help people
feel good, look good and get more out of life.
HLL transfers Tea Estates India to
Maxwell Golden Tea Private Limited
Mumbai, March 01, 2006: Hindustan Lever Limited (HLL) has
transferred its entire shareholding in its 100% subsidiary Tea Estates India
Limited (TEIL) to Maxwell Golden Tea Private Limited (MGT), a Woodbriar Group
company on March 1, 2006. TEIL owns 8 tea estates and 6 factories for
processing tea in the high-yielding belt of Tamilnadu with an average annual
output of approx. 10,500 metric tons.
Woodbriar Group has interests in plantations, insurance
services and real estate. The Group’s gardens are spread across the premium tea
growing regions in Tamilnadu and Kerala. HLL management believes that the
proposed transfer to Woodbriar Group is in the best interest of the tea
plantation business and all its stakeholders. Existing terms and conditions of
services of all TEIL employees will be fully protected in accordance with
applicable laws and terms of their employment.
The acquisition of TEIL by Woodbriar Group will provide
scale and bring in synergy benefits to Woodbriar Group, as a large portion of
TEIL gardens are contiguous to the existing tea gardens of Woodbriar Group.
Canara Bank, Madurai Circle has funded the debt component to Woodbriar Group
for this acquisition.
With this disposal of shareholding in TEIL, HLL has
completed its exit from its tea plantations business both in South India and
Assam. It may be recalled that HLL had sold its interests in Rossell Industries
Limited and Doom Dooma Tea Company Limited in Assam during the last 12 months.
DSP Merrill Lynch Limited acted as financial advisor to
Hindustan Lever Limited.
About HLL:
HLL is
India's largest Fast Moving Consumer Goods Company, touching the lives of two out
of three Indians. HLL's mission is to "add vitality to life" through
its presence in over 20 distinct categories in Home & Personal Care
Products and Foods & Beverages. The company meets everyday needs for
nutrition, hygiene, and personal care, with brands that help people feel good,
look good and get more out of life. For more information visit www.hll.com
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.45.98 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.57.82 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--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 |
|
80 |
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 |
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 |