-FBI%2016-Jun-2006_files/image002.jpg)
MIRA INFORM REPORT
|
Report
Date : |
16th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
BIRLA
TYRES (PROP : KESORAM INDUSTIES LIMITED) |
|
|
|
|
Registered
Office : |
9/1 Birla Building
8th Floor, R N Mukherjee Road, Kolkata - 700001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date
of Incorporation : |
18.10. 1919 |
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CIN No.: [Company Identification No.] |
U17119WB1919PTC003429 |
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Com.
Reg. No.: |
21-3429 |
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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
Textiles, under the name Kesoram Industries Limited, Rayon & Transparent Paper
run under Kesoram Rayon, Spun Pipes & Foundries run
under Kesoram Spun & Pipes Foundries, Cement run under Kesoram Cement &
Vasavadatta Cement, Refractory run under Kesoram Refractories |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
16000000 |
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|
|
Status
: |
Good |
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Payment
Behaviour : |
Slow but
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established and reputed company having fine track records. It is a part of B. K. Birla group. Available
information indicates high financial responsibility of the company. Financial position of the company is
good. Payments are reported as slow
but correct. The
Company can be considered good for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
9/1 Birla Building
8th Floor, R N Mukherjee Road, Kolkata - 700001, West Bengal |
|
Tel.
No.: |
91-33-22435453/22209454/22486607 |
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Fax
No.: |
91-33-22109455 |
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E-Mail
: |
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Head
Office : |
Shivam Chambers, 53, Syed Amir Ali Avenure, Kolkata - 700
019, West Bengal |
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Tel.
No.: |
91-33-2476413/2478516/2400192/2404616/2404617 |
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Fax
No.: |
91-33-2479074/2405132 |
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Telex
: |
021 2485 BT IN |
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E-Mail
: |
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|
Regional Office : |
Ø
Shivam
Chambers, 53, Syed Amir Ali Avenure, Kolkata - 700 019, West Bengal Tel. No.
91-33-2476413/2478516/2400192/2404616/2404617 Fax. No. 91-33-2479074/2405132 Telex. 021 2485 BT IN E-mail. rocal@birlatyre.com Ø
Sun
Plaza R. No. 1, 3rd Floor,
19, G. N. Chetty Road, Chennai - 700 017, Tamilnadu Tel. No. 91-44-28284960/28263341 Fax. No. 91-44-28284960 E-mail. bts.mds1@gnmds.global.net.in Ø
Sikka
M. K. House, 10A, Veer Savarkar Block, 2nd Floor, Shakarpur, Delhi
- 110 092 Tel. No. 91-11-22211042/22224220 Fax. No. 91-11-22231622 E-mail. bts.del@gndel.global.net.in Ø
410,
Tara Mandal Complex, 4th Floor, Saifabad, Hyderabad - 500 004,
Andhra Pradesh Tel. No. 91-40-23231602/2210463 Fax. No. 91-40-23231020 E-mail. bts.hyd1@gecsl.com Ø
R.
Nos. 113 and 114 Anand Estate, 2nd Floor, 189-A, Saneguruji Marg,
Mumbai - 400 011, Maharashtra Tel. No. 91-22-23060716/23060720 Fax. No. 91-22-23060721 E-mail. bts.bom@gnbom.global.net.in Ø
AT/PO:
Chhanpur, Via-Kuruda, Dist. Balasore, Orissa - 756 056 Tel. No.
91-6782-2363621/2363167/2363259/2363780/2363631 Fax. No. 91-6782-2363225 E-mail.btbls@cal2.vsnl.net.in/bts.bls@gncal-bls.global.net.in |
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Factory
1 : |
Rayon And
Transparent Paper
P. O.
Nayasarai, Railway Station - Kuntighat, Near Tribeni, Dist. Hooghly, West
Bengal - 712 513 Tel. No.
91-33-26846431-34 / 26846457 Fax. No.
91-33-26846461 E-mail. works@gncal.global.net.in Spun Pipes And
Foundries
P. O.
Adcconagar, Bansberia, Dist. Hooghly, West Bengal - 712 121 Tel. No.
91-33-26346462/6465/6620 Fax. No.
91-33-26346621 E-mail. spunpipe@cal.vsnl.net.in Refractory
Kulti,
Dist. Burdwan, West Bengal - 713 343 Tel. No.
91-341-2520031-33 Fax. No.
91-341-2520072 E-mail. kesoref@dte.vsnl.net.in Cement
Basantnagar,
Dist. Karimnagar, Andhra Pradesh - 505 187 Tel. No.
91-872-2828156/8122/8125 Fax. No.
91-872-28160 E-mail. kesoram.bnr@gnyhd.global.net.in Sedam,
Dist. Gulbarga, Karnataka - 585 222 Tel. No.
91-8441-2676005/2677403 Fax. No.
91-8441-2676139 E-mail. vasava@sanchar.net.in Automobile Tyres
And Tubes
P. O.
Chhanpur, Via. Kuruda, Dist. Balasore, Orissa- 756 056 Tel. No.
91-6782-2354259/780/885 Fax. No.
91-6782-2354225 E-mail. btbls@cal2.vsnl.net.in Heavy Chemicals
19, B. T.
Road, Khardah, P. O. Balaram, Dharma, Sopan - 743 121 Tel. No.
91-553-22879/25183/23860 Fax. No.
91-553-23860 E-mail. hhcl_fac@vsnl.net.in Oil Mills ,
Refinery Extraction
P. B. No.
51, Malkapur - 443 101, Dist. Buldana, Maharashtra Tel. No.
91-7267-222130/222230 Etukur
By-Pass Road, P. B. No. 185, Guntur - 522 003, Andhra Pradesh Tel. No.
91-863-2222507/692/545 Fax. No.
91-863-2222692 Financial Services
8th
Floor, Birla Building, 9/1, R. N. Mukherjee Road, Kolkata - 700 001, West
Bengal Tel. No.
91-33-22209454/8441 Fax. No.
91-33-22209455 E-mail. kesocorp@cal3.vsnl.net.in |
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Branches
: |
Ø
Industry
House, 10 Camac Street, Kolkata - 700 017, West Bengal Tel. No. 91-33-22824721-24 Fax. No. 91-33-22828879 E-mail. rayon@cal.kesoramrayon.co.in Ø
10-3-310/1,
Sarojinidevi Hospital Road, Masab Tank, Hyderabad - 500 028, Andhra Pradesh Tel. No. 91-40-23348896/7843/7613 Fax. No. 91-40-23344109/7821 E-mail. kesoram2@hd2.dot.net.in Ø
Shivam
Chambers, 53, Syed Amir Ali Avenure, Kolkata - 700 019, West Bengal Tel. No.
91-33-22814813/4516/4717-20 Fax. No. 91-33-22814874 E-mail. bts@gncal-bts.globalnet.ems.vsnl.net.in Ø
"Globe
Building", 7E, Lindsay Street, Kolkata - 700 087, West Bengal Tel. No. 91-33-22493001/1036 Fax. No. 91-33-22491805 E-mail. hhc_ho@vsnl.net.in Ø
7th
Floor, Birla Building, 9/1, R. N. Mukherjee Road, Kolkata - 700 001, West
Bengal Tel. No. 91-33-22487662/22200629 Fax. No. 91-33-22209455 Ø
8th
Floor, Birla Building, 9/1, R. N. Mukherjee Road, Kolkata - 700 001, West
Bengal Tel. No. 91-33-22209454/8441 Fax. No. 91-33-22209455 E-mail. kesocorp@cal3.vsnl.net.in |
DIRECTORS
|
Name : |
B K Birla |
|
Designation
: |
Chairman |
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|
|
Name : |
Shri K. G. Birla |
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Designation
: |
Director |
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|
Name : |
P K Malik |
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Designation
: |
Director |
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Name : |
Manjushree Khaitan |
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Designation
: |
Director |
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|
Name : |
K G Maheshwari |
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Designation
: |
Director |
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Name : |
B P Bajoria |
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Designation
: |
Director |
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Name : |
P K Choksey |
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Designation
: |
Director |
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Name : |
Neeta Mukerji |
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Designation
: |
Nominee (ICICI) |
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Name : |
D N Mishra |
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Designation
: |
Nominee (LIC) |
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Name : |
Amitabha Ghosh |
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Designation
: |
Nominee (UTI) |
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Name : |
S K Parik |
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Designation
: |
Director and Company Secretary |
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Qualification
: |
B. Com, F. C. A. , F. C. S. |
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Date
of appointment : |
14/07/1955 |
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Experience
: |
49 years |
|
Age : |
73 years |
KEY EXECUTIVES
|
Name : |
Shri K. C. Jain |
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Designation
: |
Manager |
|
Age: |
67 years |
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Qualification: |
B.Com., F.C.A. |
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Experience: |
41 years |
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Date
of Joining: |
19-02-1966 |
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Previous
Employment: |
Singhi & Company - Officer |
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|
|
|
Name : |
Shri J. D. Palod |
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Designation
: |
Senior Executives |
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|
Name : |
Shri D. Tandon |
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Designation
: |
Senior Executives |
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|
Name : |
Shri O. P. Tandon |
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Designation
: |
Senior Executives |
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|
Name : |
Shri P. K. Goyenka |
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Designation
: |
Senior Executives |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
10763927 |
23.53 |
|
|
|
|
|
Institutions,
Bank and Mutual Funds foreign |
11373974 |
24.87 |
|
Institutional
Investors |
2133171 |
4.67 |
|
NRIs/OCBs |
2280049 |
4.98 |
|
Private
Corporates Bodies |
2652296 |
5.80 |
|
Individuals |
9498026 |
20.76 |
|
GDR |
7041875 |
15.39 |
|
|
|
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing of
Textiles, under the name Kesoram Industries Limited, Rayon & Transparent Paper
run under Kesoram Rayon, Spun Pipes & Foundries run under
Kesoram Spun & Pipes Foundries, Cement run under Kesoram Cement &
Vasavadatta Cement, Refractory run under Kesoram Refractories |
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Products
: |
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PRODUCTION STATUS
|
Manufacturing Section |
Class of Goods |
Licensed Capacity (2003-2004) |
Installed Capacity (2003-2004 |
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|
Cement : |
|
|
|
|
- At
Basantnagar |
- Cement |
9,00,000 MT |
9,00,000 MT |
|
- At Sedam |
- Cement |
12,00,000 MT |
12,00,000 MT |
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|
|
|
|
|
Rayon & Transparent Paper |
I.
-
Carbon-di-sulphide |
3,603 MT per year |
3,600 MT per year |
|
|
II.
-
Cellophane Paper (Transparent Cellulose Film) |
150 Tons per year |
3,600 Tons per year |
|
|
III.
-
Sodium Sulphate |
5,311 MT per year |
5,500 MT per year |
|
|
IV.
-
Sodium Sulphide |
70 MT per year |
187 MT per year |
|
|
V.
-
Sulphuric Acid |
22,530 MT per year |
36,500 MT per year |
|
|
VI.
-
Viscose Filament Rayon Yarn |
10 Tons per year |
6,500 MT per year |
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|
|
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|
Refractory |
- Fire
Bricks |
36,000 MT per year |
36,000 MT per year |
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|
Spun Pipes &
Foundries |
- Cast Iron Spun Pipes & Pipes Fittings |
45,000 MT per year |
45,000 MT per year |
|
|
|
|
|
|
Tyre |
(i)
Tyre
(ii)
Tubes (iii)
Flaps |
NA NA NA |
1600000 Nos. Per Year 1400000 Nos. Per Year 1000000 Nos. Per Year |
|
Hindusthan Heavy
Chemicals |
(i)
Caustic Soda Lye (100%) |
15120 MT. Per Year |
12410 MT Per Year |
|
|
(ii)
Liquid
Chlorine |
6000 MT Per Year |
5045 MT.Per Year |
|
|
(iii)
Sodium
Hypochlorite |
16500 MT Per Year |
6205 MT Per Year |
|
|
(iv)
Hydrochloric
Acid (100%) |
9750 MT Per Year |
8200 MT Per Year |
|
|
(v)
Ferric
Alum (including Alum Liquor) |
3200 MT Per Year |
3200 MT Per Year |
|
|
(vi)
Sulphuric
Acid (including Battery Grade) |
20400 MT. Per Year |
18700 MT Per Year |
|
|
(vii)
Purified
Hydrogen Gas |
3024000 MT Per Year |
1620000 MT Per Year |
|
|
(viii)
Stable
Bleaching Powder |
-- |
-- |
|
|
|
|
|
|
Bharat General |
Cakes |
|
|
|
|
Crushing
Capacities |
|
|
|
|
(i) seeds
(others) |
-- (2003-04 13000 M Tons per years) |
-- (2003-04 40000 M Tons per years) |
|
|
(ii) Oil
Cakes |
-- (2003-04 50000 M Tons per years) |
-- (2003-04 50000 M Tons per years) |
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|
Manufacturing Section |
Class of Goods |
Unit |
Production 2003-04 |
Production 2003-04 |
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|
Cement : |
|
|
|
|
|
- At
Basantnagar |
- Cement |
MT |
984574 |
824362 |
|
- At Sedam |
- Cement |
MT |
2129802 |
2041264 |
|
|
|
|
|
|
|
Rayon & Transparent Paper |
VII.
-
Carbon-di-sulphide |
MT |
4680 |
3638 |
|
|
VIII.
-
Cellophane Paper (Transparent Cellulose Film) |
MT |
2587 |
2090 |
|
|
IX.
-
Sodium Sulphate |
MT |
6602 |
6292 |
|
|
X.
-
Sodium Sulphide |
MT |
46 |
11 |
|
|
XI.
-
Sulphuric Acid |
MT |
34787 |
33142 |
|
|
XII.
-
Viscose Filament Rayon Yarn |
MT |
7265 |
7251 |
|
|
|
|
|
|
|
Refractory |
- Fire
Bricks |
MT |
-- |
-- |
|
|
|
|
|
|
|
Spun Pipes &
Foundries |
- Cast Iron Spun Pipes & Pipes Fittings |
MT |
33333 |
40676 |
|
|
|
|
|
|
|
Tyre |
(i)
Tyre
|
MT |
1525004 (including 641 nos.
manufacture by contract manufacture-r) |
1570198 (including 83167nos. manufacture
by contract manufacture-r) |
|
|
(ii)
Tubes |
|
1297446 |
1286668 |
|
|
(iii)
Flaps |
|
1000555 |
980276 |
|
Hindusthan Heavy
Chemicals |
(ix)
Caustic Soda Lye (100%) |
MT |
10560 |
9871 |
|
|
(x)
Liquid
Chlorine |
MT |
4115 |
3921 |
|
|
(xi)
Sodium
Hypochlorite |
MT |
4798 |
3448 |
|
|
(xii)
Hydrochloric
Acid (100%) |
MT |
4873 |
4607 |
|
|
(xiii)
Ferric
Alum (including Alum Liquor) |
MT |
2117 |
2517 |
|
|
(xiv)
Sulphuric
Acid (including Battery Grade) |
MT |
18183 |
16441 |
|
|
(xv)
Purified
Hydrogen Gas |
MT |
433352 |
523958 |
|
|
(xvi)
Stable
Bleaching Powder |
|
-- |
-- |
|
|
|
|
|
|
|
Bharat General |
Cakes |
|
|
|
|
|
Crushing
Capacities |
|
|
|
|
|
(i) seeds
(others) |
M.T |
-- |
-- |
|
|
(ii) Oil
Cakes |
M.T |
-- |
-- |
|
|
|
|
|
|
GENERAL INFORMATION
|
No. of
Employees : |
About 2000 |
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Bankers
: |
Ø
State
Bank of India Ø
Standard
Chartered Bank Ø
Citi
Bank N.A Ø
Allahabad
Bank Ø The Hongkong & Shanghai
Banking Corporation Ø
Central
Bank of India Ø
Canara
Bank Ø
Oriental
Bank of Commerce Ø
State
Bank of Hyderabad Ø
BNP
Paribas Ø
Industrial
Bank Limited Ø HDFC Bank Limited Ø ICICI Bank Limited Ø Banking Corporation Limited |
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Facilities : |
SECURED LOANS
UNSECURED LOANS
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
Messrs Price Waterhouse Chartered Accountants |
|
|
|
|
Associates
: |
Ø
Mangalam
Timber Products Limited Ø
Birla
Buildings Limited Ø
Century
Textiles & Industries Limited Ø
HGI
Industries Limited Ø
Indian
Rayon and Industries Limited Ø
Jay
Shree Tea & Industries Limited Ø
Padmavati
Investments Limited Ø
Birla
Century Finance Limited Ø
ECE
Industries Limited Ø
Mangalore
Refinery and Petrochemicals Limited Ø
Mangalam
Cement Limited Ø
Century
Enka Limited |
|
|
|
|
Subsidiaries
: |
Ø
Bharat
General & Textile Industries Limited Ø
KICM
Investment Limited Ø
Assam
Cotton Mills Limited Ø
Softshree
Estates Limited Ø
Grant
Properties Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount 31.03.2005 |
Amount 31.03.2004 |
|
5000000 |
Preference shares |
Rs.100 each |
Rs. 500.000 miilions |
Rs. 500.000 miilions |
|
400000 |
Preference shares |
Rs.100 each |
Rs. 40.000 miilions |
Rs. 40.000 miilions |
|
66000000 |
Ordinary Shares |
Rs. 10 each |
Rs. 660.000 millions |
Rs. 660.000 millions |
|
|
Total |
|
Rs. 1200.000 millions |
Rs. 1200.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount 31.03.2005 |
Amount 31.03.2004 |
|
45743318 |
Ordinary Shares |
Rs. 10 each |
457.433 |
457.433 |
|
|
Less: Allotment Money receivable |
|
0.018 |
0.018 |
|
|
Total |
|
457.415 |
457.415 |
|
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
457.400 |
457.415 |
457.415 |
|
|
3]
Reserves & Surplus |
3703.100 |
3314.044 |
3027.412 |
|
NETWORTH
|
4160.500 |
3771.459 |
3484.827 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
4133.700 |
2605.136 |
3076.810 |
|
|
2]
Unsecured Loans |
2079.900 |
2440.387 |
1389.563 |
|
TOTAL BORROWING
|
6213.600 |
5045.523 |
4466.373 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
1178.904 |
1245.069 |
|
|
|
|
|
|
|
TOTAL
|
10374.100 |
9995.886 |
9196.269 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
5349.800 |
5186.352 |
5620.082 |
|
Capital work-in-progress
|
2082.400 |
528.485 |
79.225 |
|
|
|
|
|
|
|
INVESTMENT
|
290.200 |
281.924 |
249.903 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2551.900
|
2302.408
|
2030.662 |
|
|
Sundry Debtors
|
1843.700
|
2014.228
|
2007.944 |
|
|
Cash & Bank Balances
|
248.300
|
197.836
|
243.679 |
|
|
Other Current Assets
|
0.000
|
231.726
|
219.026 |
|
|
Loans & Advances
|
1540.700
|
1560.154
|
893.837 |
Total Current Assets
|
6184.600
|
6306.352
|
5395.148 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
2760.200
|
1855.995
|
1453.760 |
|
|
Provisions
|
772.700
|
451.232
|
694.329 |
Total Current Liabilities
|
3532.900
|
2307.227
|
2148.089 |
|
Net
Current Assets
|
2651.700
|
3999.125
|
3247.059 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
10374.100 |
9995.886 |
9196.269 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
19200.600 |
14941.829 |
13741.443 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
809.300 |
435.128 |
629.957 |
Provision for Taxation
|
352.200 |
100.000 |
200.000 |
Profit/(Loss) After Tax
|
457.100 |
335.128 |
629.957 |
|
|
|
|
|
Export Value
|
NA |
1522.735 |
1409.651 |
|
|
|
|
|
Import Value
|
NA |
1393.592 |
799.758 |
|
|
|
|
|
Total Expenditure
|
17548.100 |
14506.700 |
1291.485 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
2.38
|
2.24 |
4.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.21
|
2.85 |
4.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.02
|
3.79 |
5.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.12 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.34
|
1.95 |
1.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.75
|
2.73 |
2.51 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.190.30/- |
|
Low |
Rs.189.00/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets :-
Freehold Land in the name of Company and its nominees,
Leasehold land, Building , Railway Siding, Pant And Machinery, Furniture,
Fixture and Office equipments, Vehicles etc.
Kesoram Industries(KIL), a member of B K Birla
Group is a diversified company having presence in Cement, Automobile
Tyres/tubes, Rayon(Viscose Filamanent Yarn & Transperent Paper), Heavy
Chemicals, Spun Pipes and Refractories.
KIL originally incorporated as Kesoram Cotton Mills in 1917 was renamed
as Kesoram Industries & Cotton Mills in Aug.'61. The company has acquired
the present name in July 1986.
KIL which commenced business in 1919 with a textile mill in Calcutta has
grown into an very diversified company through diversification, merger and
acquisition. The company inorder to focus on core business segment decided to
sell the unrelated business. As the first step of this restructuring exercise
the company has hived off its textile business to Kesoram Textile Mills Ltd(KTML)
for a consideration of Rs.10.46(settled by issue of KTML shares to KIL
shareholders). As part of the restructuring exercise the company has merged
Bharat General & Textiles Ltd.(BG&TL), a 100% subsidiary of the company
and a unlisted Hindustan Heavy Chemicals Ltd and Birla Century Finance
Ltd(BCFL), a listed company. The Kolkatta HC has
approved the merger plan on Sep 2001.
Recently, the promoters of the company hiked their holding in the company
by 4%. With this, promoter's stake in the company has increased from 20.4% to
24.43%. The stake was raised through open market purchases.
Cement
KIL set up its first Cement plant in 1969 and now the company operates
two cement plants one each in the states of AP(Basant Nagar) and
Karnataka(Sedam). At present KIL's two cement plants have an combined annual
capacity of 21 lakh tonne with Basantnagar cement unit having an annual
capacity of 9 lakh tonnes and the Sedam unit accounting for 12 lakh tonnes.
Both the cement units have an 15 MW captive power generation plants each. The
two captive power plants of 15 MW each was set up at a cost of Rs.98 crores and
commissioned in August 1997.
The company has undertaken an 6 lakh tonne capacity expansion at its AP
cement unit during 1997. The company has also completed an Clinkerisation
section of the New Unit II in its Karnataka Cement plant during the year 1997
while the kiln is under trial run.
Birla Tyres
The diversification into Automobile tyres and tubes happened in early
ninties. KIL has set up and commissioned a plant to manufacture 10 lakh units
of automotive tyres and tubes in orissa in 1992. Pireli, UK a subsidiary of the
Well known Pireli Group, Itali is the technical collaborator for the tyre
project.
However, in April 1994, the birla tyre division was transfered to an
associtaion of persons(AOP), with KIL being one of the partners to the four
company consortium(AOP) entitled for 20% of the profits. The other three
partners in AOP is Century Textiles & Inds., Jayshree Tea & Inds. and
Bharat General & Textile Inds Ltd.
After the term of AOP is expired, the management rights along with the
entire asset of Birla Tyres came back to the fold of KIL effective from April
2000. Kesoram Inds., is now scouting for a suitable partner to run its tyre
division(Birla Tyres).
Rayon
KIL has commissioned its first rayon yarn plant in Dec. '59 at
Tribeni(Hoogly Dist. of West Bengal). It set up a transperent paper/ Cellophane
manufacturing facility in 1961. The production of Transparent Paper was 2255
tons in 2002-03 against 2030 tons of previous year.
Other Businesses
The cast Iron spun pipes unit of KIL came up in 1964 at Adcconagar in
West Bengal. This unit has recieve ISO-9002 certification during the year
1998-99. The refractory unit was acquired in 1966. At present the company has
36500 MTPA capacity at its refractory unit at Kulti, Dist. Burdwan in West
Bengal. The Heavy Chemicals unit, which came into the fold of KIL by way of
merger of Hindustan Heavy Chemicals is into manufacturing of Caustic Soda and
its coproducts i.e Chlorine and HCL. At present this plant has the capacity to
produce 14760 MTPA of Caustic Soda.
Acquisition
During Sep'04,the company has acquired 950007 Shares(unlisted) of Assam
Cotton Mills Ltd in an Off Market deal and consequently ACML has become 100%
subsidiary of Kesoram Industries Limited.
GENERAL REVIEW
The entire enhanced input cost of the products could not be passed
on to the consumers on account of stiff competition. However, continued
effective cost control measures, cash management and reduction in interest
burden etc. have achieved to the current results, which are satisfactory in the
circumstances.
* Due to unsatisfactory VFY/transparent paper market, the Rayon Section
has resulted in depressing bottom line but overall operating efficiencies of
the Section have improved during the year.
* Due to cheaper substitute products, the margins were lower as such the
Spun Pipes Section is continuing in unfavourable market environment.
* With the increased highest ever production and dispatches coupled with
improving market environment, the performance of Cement Sections has
improved.
* Despite sharp increase in prices of natural rubber and other petroleum
based raw materials and inability to pass on the increased cost to the market,
the Tyre Section has been able to hold the market share.
* Due to unfavourable market conditions, the realizations have been
unremunerative causing under capacity utilization of all products of Hindusthan
Heavy Chemicals Section. However, commissioning of captive power plant has
resulted in reduced power cost and better bottom line.
OUTLOOK
CEMENT
The Cement Sector in India has significant potential for growth, looking
to the vast population and low per capita consumption compared to large number
of developing and developed countries. The rise in per capita consumption would
be driven by the growth in the housing sector and infrastructure development.
The outlook for housing sector remains positive on account of availability of
easy finance coupled with Income Tax incentives. Increasing thrust on
infrastructure development should be beneficial for the Cement Sector. Oil
price-led construction in West Asia will also boost exports. Looking the
positive outlook in Cement Sector, your Company has planned for capacity
expansion at existing Cement Plant at Sedam (Karnataka). To replace high cost
grid power, the unit is putting up another 9 MW Thermal Power Plant in addition
to existing 15.7 MW Thermal Power Plant, which is expected to be commissioned
soon.
RAYON & TRANSPARENT PAPER
The outlook for the VFY industry does not appear to be encouraging due to
continued shift in consumption in favour of PFY and other cheaper substitutes
all over the world. However, the demand should grow in view of user friendly
nature of this yarn but the situation remains uncertain.
The outlook of Cellophane Paper is co-related with imports and cheaper
substitutes. Cheap imports is a serious threat to domestic market as such the
future prospects does not appear to be encouraging due to continued
unremunerative prices of the product.
TYRE
The fortune of Tyre Industry is linked with the Automobile and
Transportation Industry and the outlook of the industry looks good primarily
due to growth in vehicle demand. However, Chinese Tyre do pose threat to Indian
exports in World Market.
SPUN PIPES
The outlook of C.I. Spun Pipe mostly remains challenging and is expected
to remain the same in the next financial year. The Government Bodies are
shifting from Cast Iron Pipe to Ductile Iron Pipe, which is adversely affecting
the long-term prospects of this industry. With presence of larger players armed
with consolidated plant having a different production route for liquid cast
iron resulting in much lower melting cost, the players with no
consolidation/backward integration shall come under tremendous pressure in
terms of input cost.
HEAVY CHEMICALS
Effective utilization of Captive Generation of Power should result in
consequential efficiency in production.
RAYON & TRANSPARENT PAPER SECTIONS
The Viscose Filament Yarn (VFY) business has been affected by adverse
conditions. It witnessed continued pricing pressure due to industry-wide over
supply and cheaper imports, besides rise in input costs & reduction in
excise and customs duties of substitute materials. However, the production of
VFY was maintained at almost last year's level (7,265 tons against 7,251 tons)
and export increased from 618 tons to 1,145 tons but the realizations were
affected throughout the year because of poor domestic demand. The export
realization was also under strain due to fall in international rates and
fluctuating foreign exchange rates. However, the increase in exports helped in
arresting the rising level of inventories and maintaining the production.
The Transparent Paper (TP) business continues with unfavourable market
environment resulting into poor realization rate mainly because of competition
with cheaper imports & substitutes. Coupled with increased input costs, the
profitability of this department suffered badly.
Chemical business bridged some revenue shortfall with higher volume and
better realization.
The overall operating profits of the Section turned to negative due to
lower VFY & TP realizations and increased input costs e.g. rising Wood
Pulp, Sulphur & Coal prices. However, overall improved operating
efficiencies and better contribution from Chemicals have restricted the fall in
results.
The Section has been awarded a 'Certificate of Merit' by the Ministry of
Power, Government of India for its outstanding achievements in Energy
Conservation. The Section has the unique & proud distinction of having
received the award every year since 1995 except for 2003.
Relations with employees have been cordial during the year. The 2001
agreement with the Trade Unions has expired and negotiation for a new agreement
will take place shortly.
SPUN PIPES SECTION
During the financial year under review the realization was lower as
compared to last year due to cheaper substitute products. The increased price
of key raw material viz. Pig Iron & Hard Coke during the current year and
less orders from Government parties due to expiry of rate contract in November,
2004 resulted in lower realization. The production decreased by 18.05% compared
to last year. Theyhave been able to produce 33,333 MT as compared to 40,676 MT
last year. This was mainly due to production of smaller dia pipe where realizations
are higher as compared to bigger dia pipes.
Total dispatches reduced by 16.38%. The total dispatches for the year
under review were 34,001 MT as compared to 40,661 MT last year.
Stock has decreased substantially by 29.00% and almost all slow moving
items have been cleared.
CEMENT SECTIONS
Kesoram Cement
Production figures of this Section are as under:
Production 2004-05 2003-04 (MT) (MT)
Clinker 8,95,790 7,74,900Cement 9,84,574 8,24,362
This Section has achieved the highest ever production of both Cement and
Clinker since its inception. There has been increase in Clinker production by
15.60% and Cement production of 19.43% over previous year.
Cement prices continue to be under pressure in South India due to excess
of Supply over Demand. It is hoped that market shall further improve due to
good demand for infrastructure and housing sector activities.
Blended Cement launched by this Section under the brand name 'BIRLA
SHAKTI' has become very popular due to aggressive advertisement campaign during
the year and its production has increased from 36% last year to 48% in the year
under review, despite severe competition. All out efforts are being made to
increase blended cement production further in the ensuing year, since Fly Ash
is available nearby.
Power consumption per tonne of cement has come down to 90 Units from 92
Units last year, due to implementation of energy conservation measures and also
increase in the quantity of blended cement production
Captive Thermal Power Plant of this Section has
helped to maintain the power cost within economical level. Total power
generation achieved during this year is 100.62 million Units, which is the
highest ever achieved since commissioning of the Plant in 1997.
The suit challenging the validity of imposition of Electricity Duty on
captive power generation @ 25 parse per Unit from 17.7.2003 by Government of
Andhra Pradesh is pending in Hon'ble High Court of Andhra Pradesh.
Due to continuous failure of monsoon during last two years, the water
position has become precarious and it has become difficult to meet the
requirement to run their Cement Plant/Captive Thermal Power Plant. All out
efforts are made to procure water from outside sources, to maintain uninterrupted
production.
The Industrial relations were excellent.
Limestone Mines of this Section bagged MISRILALL JAIN ENVIRONMENTAL AWARD
by Federation of Indian Mineral Industry (FIMI), New Delhi for the year
2003-04.
Limestone Mines of this Section also bagged 1st prize for Environment,
Pollution Control & Health Management, consecutively for three years, from
the Director General of Mines Safety during Mines Safety week celebrations. So
also during Mines Environment & Mineral Conservation celebrations these
Limestone Mines won second prize for Waste Dump Management and Afforestation
from Indian Bureau of Mines.
Vasavadatta Cement
The production figures of this Section are as under:
Production 2004-05 2003-04 (MT) (MT)
Clinker 20,14,145 18,80,316Cement 21,29,802 20,41,264
This Section has also achieved highest ever production of both Cement and
Clinker since its inception. There has been increase in Clinker production by
7.12% and Cement production by 4.33% over previous year, with average power
consumption of 69.84 KWH per ton of Cement as against 74 KWH per ton in
previous year.
The production of 'BIRLA SHAKTI' i.e. blended cement has increased to
42.26% of total production from 27.90% in previous year. The 15.7 MW Captive
Power Plant continued to play a key role in controlling the cost of Cement
production. The total generation achieved during the above period is 120.12
million KWH against 115.76 million KWH in previous year, which is more by
3.77%.
In addition to existing 15.7 MW Thermal Power Plant another 9 MW Thermal
Power Plant is in final stage of completion and is expected to be commissioned
in May 2005.
With positive outlook of the Cement Sector, the Company is planning for
cement capacity expansion by 1.65 million Tons p.a., all necessary Government
Clearances have been obtained except Environment Clearance, which is expected
to be cleared shortly. However, environment clearance for expansion of
production of Limestone for a rated capacity of 4.50 million Tons p.a. in
respect of Limestone mines has been received from Ministry of Environment and
Forest as per letter No. J-11015/98/2004-IA.II (M) dated 28th March,
2005.
Main Plant Equipments orders have been finalized, Civil, Mechanical &
Electrical Consultants have been appointed and Civil work is expected to start
in April/May 2005 immediately after receipt of Environment Clearance. Orders
for the balance equipments are being finalized. The project is expected to be
commissioned in last quarter of 2006.
Vasavadatta Cement, Sedam, has been certified as an 'Excellent Energy
Efficient Unit' and has been awarded 'National Award for Excellence in Energy
Management 2004' instituted by Confederation of Indian Industry (CII) Sohrabji
Godrej Green Business Centre.
The Limestone Mines of this Section bagged several prizes during
Celebration of Mines Safety, Mines Environment & Mineral Conservation week
in (Bellary-Gulbarga Zone).
Relations with employees have been cordial and conducive to growth.
BIRLA TYRES SECTION
The gross turnover of the Section this year is Rs.749.06 crores as
compared to Rs.737.12 crores during 2003-04. Inspite of stiff competition, they
still have been able to hold on to their market share. The export sales for the
year under review amounted to Rs.135.89 crores as against Rs.131.43 crores in
the previous year
Consistency in quality maintained by the Section has been recognised in
domestic as well as international markets. Their Steel Radial Passenger and LCV
Tyres have been well received in the market
Inspite of sharp increase in prices of Natural Rubber and other petroleum
based Raw Materials and inability of the Industry to pass on the increase to
the market, the Section has been able to achieve satisfactory result due to various
cost cutting measures and improving efficiencies across its operations.
Relations with employees have been cordial and conducive to growth.
HINDUSTHAN HEAVY CHEMICALS SECTION
The production figures of the Section are as under:
Production 2004-05 2003-04
Caustic Soda Lye 10,560 MT 9,871 MTSulphuric Acid 18,183 MT 16,441
MTFerric Alum 2,117 MT 2,517
THydrogen Gas (Purified) 4,33,352 M3 5,23,958
M3
Increased production of Caustic Soda Lye and Sulphuric Acid is mainly due
to better operation of Captive Generating Set during the current year compared
to the previous year. The demand of Caustic Soda Lye and allied products
improved from November, 2004 onwards with increase in selling price of Caustic
Soda Lye from third quarter of the year 2004-05. The price of Sulphuric Acid
has also improved marginally from last quarter of the current year. Demand for
Hydrogen Gas continues to be lower due to lower off take by Vanaspati
Sector.
In order to ensure health and safety of workmen, mock drills, health
check-ups are carried out at intervals along with monitoring of toxic emissions
on a routine basis. To counter on-site and off-site emergency situations,
observations of Safety week, Safety exhibitions and slogans are organized for
employees and outsiders. .
Kesoram to exit unviable sectors
KOLKATA, June 26
MR B.K. Birla, Chairman of Kesoram Industries
Ltd, said here at the 84th AGM of the diversified company that it would
gradually get out of unviable businesses. He said the refractory division would
be on the block shortly. Higher raw material (soyabean and cotton seed) costs,
wages and energy had rendered the units unviable, he observed. He further
indicated that apart from cement, tyre, rayon and spun pipes would continue to
be at the core of the company's operations. Mr S.K. Parik, Director and Company
Secretary, told Business Line that the board at a meeting later decided
to either sell or lease or hive off the refractory business. The division is
under work suspension since February 2, 2002.
It in trade
terms with:
Ø
AM
Engineering and Chemicals Company
Ø
JG
Chemicals
Ø
Modern
Polypack Industries
Ø
Petrochem
India
Ø
Pigments
& Chemicals Industries Private Limited
Ø
RS
Chemicals
Ø Time Polyplast Private Limited
Ø
Techno
Product Private Limited
Ø
Techno
Waxchem Private Limited
Ø
Vithoga
Chemicals Private Limited
AS PER
WEBSITE:
ABOUT
US:
Birla Tyres entered the Indian tyre market in
1991. The manufacturing facilities are located at Balasore in Orissa. In ten
years of operation, it has scaled new heights of productivity. The initial
capacity of 1 million tyres per annum has since been enhanced to 1.5 million
tyres per annum. The new millennium saw it roll out high performance Steel
Belted Car and L.C.V. radials, using state-of-the-art machines with the latest
technology from the world famous Pirelli of Italy. The continuous quest for
excellence saw the Birla Tyres team add many feathers to its cap. It has
received ISO 9001, ISO 14000 and QS 9000 certification
Business
-FBI%2016-Jun-2006_files/image003.gif){kind=small}
Domestic
They manufacture
a large variety of tyres that serve the needs of urban and rural users.
They address a variety of segments ranging from the owners of latest generation
cars to commercial vehicles extending to the agricultural segment.
They
produce tyres in LUG, SEMI LUG, & RIB pattern for various segments of the
Indian Road Transport. LUG production is taken up depending on the application
and usage namely road conditions, loading patterns, vehicle tyres, etc.
Out
of their total production approx 68% is Truck tyres and balance 32% Non-truck
tyres.
Birla
Tyre enjoys the status of a preferred OEM for supplying tyres to Tata Motors,
providing JIT (Just in Time) services, contributing to their business bottom
line.
They
also serve State Transport Units all across the country with a wide range of
tyres. The various transport corporations they serve are NBSTC, SBSTC, CTC,
Maharashtra STC, Karnataka STC, 21 units in Tamil Nadu, BEST, Himachal STC, Pepsu,
Punjab Roadways, Pune Municipal Transport, Rajasthan STC, MPSTC, Chandigarh
STC, J&K STC, Haryana STC, etc.
Exports
They
have also carved a niche for theirselves in the international arena. About 30%
of the total production is currently being exported to 43 countries across the
globe.
They have registered an export growth of 18% during
2002-03 and its products are well accepted in domestic and export markets. They
export 30% of its production against the industries average of 20% to more than
43 countries namely Bangladesh, Vietnam, Middle East, Africa, Philippines,
Afghanistan, South Africa, North America, etc. By offering quality products
backed by aggressive marketing policies based on customer need and requirement
and converting it into performance standard for the company
Products:
Truck - Lug
Various heavy duty rear wheels for commercial vehicles...
Truck - Rib
A range of heavy duty front wheels for commercial vehicles...
Truck - Semi Lug
Long haul tough vehicle tyres, suitable for both front & rear use.
Lcv - Lug
Heavy duty rear wheels for light commercial vehicles.
Lcv - Rib
Heavy duty wheels for light commercial vehicles.
Lcv - Semi Lug
Heavy duty tyres, for various light commercial vehicles.
Passenger Bias
Tyres suitable for various passenger vehicles.
Jeep
Tyres appropriate for Jeeps...
Farm
Suitable
tyres for agricultural purpose.
ADV
Tyres
befitting the challenging roads of the countryside...
Quality and Environment
Management Awards received by Birla Tyres:
ISO
9001: They received the prestigious ISO 9001 certification in
the year 1994 and are effectively continuing this quality system.
This certification ensures consistency in production processes and continuous
improvement of product designs to meet ever-changing customer requirements.
QS 9000:
They have further elevated their position by conforming to this International
Quality System, set by world giants such as General Motors, Ford, Chrysler. QS
9000 stands for their firm commitment towards continuous improvement in areas
like Design, Development, Manufacturing and Customer service &
satisfaction.
ISO 14001:
They are well ahead in the tyre manufacturers' community through the
implementation of an International Standard of Environment Management System
and have received ISO 14001 certification in the year 1996. ISO 14001 proves
their
commitment to a healthier and a safer community and earth.
TPM: They are
the only tyre manufacturer in India to have received the world class TPM
Excellence Award-1st category, awarded by JIPM, Japan in October 2000.
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.45.89 |
|
UK Pound |
1 |
Rs.84.65 |
|
Euro |
1 |
Rs.57.78 |
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 |