MIRA INFORM REPORT
|
Report Date : |
25TH May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN LEVER LIMITED |
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Registered Office : |
Hindustan Lever House,
165/166, Backbay Reclamation, Mumbai – 400 020, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
17th
October 1933 |
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Com. Reg. No.: |
11-2030 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMHOO225B |
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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. |
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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 |
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Status : |
Good |
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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. 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 |
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E-Mail : |
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Website : |
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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 |
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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 |
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|
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Branch : |
123, G. N. Chetty Road, T.
Nagar, Chennai – 600 017, Tamilnadu |
DIRECTORS
|
Name : |
Mr. M. S. Banga |
|
Designation : |
Chairman |
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|
Name : |
Mr. M. K. Sharma |
|
Designation : |
Vice Chairman |
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|
Name : |
Mr. A. Narayan |
|
Designation : |
Director |
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|
Name : |
Mr. V. Narayanan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. S. Parekh |
|
Designation : |
Director |
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|
Name : |
Mr. C. K. Prahalad |
|
Designation : |
Director |
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|
|
|
Name : |
Mr.Harish
Manwani |
|
Designation : |
Non-Executive
Chairman |
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|
|
|
Name : |
Mr. D. Sundaram |
|
Designation : |
Director Finance and IT |
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|
|
|
Name : |
Mr. S. Ramadorai |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. Adhikari |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. S. Ravindranath |
|
Designation : |
Managing Director Foods |
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|
|
|
Name : |
Mr. Ashok Gupta |
|
Designation : |
Vice President &
Company Sectary |
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|
|
|
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 |
|
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|
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.45.85 |
|
UK
Pound |
1 |
Rs.85.82 |
|
Euro |
1 |
Rs.58.62 |
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 |