MIRA INFORM REPORT
|
Report
Date : |
16th
November, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
LANXESS ABS LIMITED |
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Formerly
Known As : |
BAYER ABS LIMITED |
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Registered
Office : |
ABS
Towers, 6th Floor, Old Padra Road, Vadodara – 390 007, Gujarat,
India |
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Country
: |
India |
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Financials
(as on) : |
31.12.2005 |
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Date
of Incorporation : |
07.12.1973 |
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Com.
Reg. No.: |
04-2436 |
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CIN
No.: [Company
Identification No.] |
L25200GJ1973PLC002436 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
BRDB00614F |
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PAN
No.: [Permanent
Account No.] |
AAACB6164H |
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Legal
Form : |
Public
Limited Liability Company. The company’s shares are listed on the Stock
Exchanges. |
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Line
of Business : |
Engineering
Plastic Segment and Manufactures of
Acrylonitrile Butadiene Styrene (ABS), which is used mainly in Automobiles
and Consumer Durable Segment. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
6500000 |
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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 company having fine track.
It is a part of Bayer Group. Available information indicates high financial
responsibility of the company. Trade relations are fair. Payments are correct
and as per commitments. The company can be considered good for any normal business
dealings. It can be regarded as a promising business partner in a medium to
long run. |
LOCATIONS
|
Registered
Office : |
ABS
Towers, 6th Floor, Old Padra Road, Vadodara – 390 007, Gujarat,
India |
|
Tel.
No.: |
91-265-2355861
– 63 / 2355871 – 73 |
|
Fax
No.: |
91-265-2341012
/ 2355860 / 2355950 / 2355960 |
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E-Mail
: |
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Website
: |
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Plants
: |
Located
at v
51,
GIDC Industrial Estate, Nandesari 391340, Dist. Baroda, Gujarat, India Tel. No. 91-265-2840319/2840285/2840559/2841010 Fax. No. 91-265-2840827 v
Katol,
Halol-Kalol Road, Taluka Kalol, Dist. Panchmahal, Gujarat, India Tel. No. 91-2676-235980/235891/235802/235803 Fax. No. 91-2676-235518 Cabel . ABSOLITE |
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R
& D Centre (Moxi) : |
Sankarda-Bhadarva
Road, Post. Poncha 391350, Tal. Savli, Dist. Baroda |
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Tel.
No.: |
91-2667-244350/244370/244380 |
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Fax
No.: |
91-2667-244340 |
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Branches
: |
v
8-A,
Gopala Tower, 25-Rajendra Place, New Delhi – 110008, India Tel. No. 91-11-25712650/25729515/25712727 Fax. No. 91-11-25756494 Telex. 031-77028 ABS IN Cabel . ABSOLITE v
C/o
LANXESS India Private Limited, Thane -
Kolshet Road, Thane, Mumbai – 400607, Maharashtra, India Tel. No. 91-22-25311175-76 Fax. No. 91-22-25455072 v
Unit
4 and 5, 2nd Floor, Above
Big Kids Kemp, Ramanashree Arcade, No. 18, M. G. Road, Bangalore – 560001,
Karnataka, India Tel. No. 91-80-25596516 Fax. No. 91-80-25580508 Telex. 0845-8750 ABS IN v
404,
Satkar, Near Swagat Char Rasta, C. G. Road, Ellisbridge, Ahmedabad – 380006,
Gujarat, India Tel. No. 91-79-26446877-78 Fax. No. 91-79-26442013 |
DIRECTORS
|
Name : |
Dr. Hans
J Kogelnik |
|
Designation
: |
Chairman |
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|
Name : |
Mr. Stephan Gerlich |
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Designation
: |
Director |
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|
Name : |
Dr. Tony Osselaer |
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Designation
: |
Vice Chairman |
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|
Name : |
Mr. R S Agrawal |
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Designation
: |
Managing Director |
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|
Name : |
Mr. Johannes Dietsch |
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Designation
: |
Director |
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|
Name : |
Dr. Axel C Heitmann |
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Designation
: |
Director |
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|
Name : |
Mr. K R V Subrahmanian |
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Designation
: |
Director |
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|
Name : |
Mr. S M Kulkarni |
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Designation
: |
Director |
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|
Name : |
Mr. Johannes Frick |
|
Designation
: |
Director |
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|
Name : |
Mr. D C Shroff |
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Designation
: |
Director |
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|
Name : |
Mr. Vishal R Agrawal |
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Designation
: |
Director |
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|
Name : |
Mr. Raj Narayanan |
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Designation
: |
Director |
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|
Name : |
Mr. Venkatesh Sankaran |
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Designation
: |
Director |
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Name : |
Mr. Jeorg Strassburger (Doctor) |
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Designation
: |
Director |
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|
Name : |
Mr. Jal R Patel |
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Designation
: |
Additional Director |
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KEY EXECUTIVES
|
Name : |
Mr. S. M.
Vaishnav |
|
Designation
: |
Company Secretary and General Manager (Legal) |
MAJOR SHAREHOLDERS
|
Category |
No. of Share Held |
% of Share Holding |
|
PROMOTER’S HOLDING |
|
|
|
Promoters |
|
|
|
-- Indian
Promoters (a)
Lanxess India Private Limited (Holding Company) (b) Other
Indian Promoters |
8963564 3347675 |
50.97 19.04 |
|
--
Foreign Promoters |
0.000 |
0.00 |
|
|
|
|
|
Persons acting in concert |
0.000 |
0.00 |
|
|
|
|
SUB TOTAL
|
12311239 |
70.01 |
|
|
|
|
|
NON PROMOTER’S HOLDING |
|
|
|
Institutional Investors |
|
|
|
-- Mutual
Funds and UTI |
271890 |
1.55 |
|
-- Banks,
Financial Institution, Insurance Companies (Central/ State Government
Institutions/ Non-Government Institutions) |
56875 |
0.32 |
|
--
Foreign Institutional Investors (Fll’s)
|
100 |
0.00 |
|
|
|
|
SUB TOTAL
|
328865 |
1.87 |
|
|
|
|
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Others |
|
|
|
Private
Corporate Bodies |
644209 |
3.66 |
|
Indian
Public |
4229854 |
24.05 |
|
NRIs/OCBs |
46357 |
0.26 |
|
Any other (Clearing Member) |
25101 |
0.14 |
|
|
|
|
|
SUB TOTAL |
4945521 |
28.12 |
|
|
|
|
|
GRAND TOTAL |
17585625 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Engineering
plastic segment and Manufactures
of Acrylonitrile Butadiene
Styrene (ABS), which is used mainly in automobiles and consumer durable
segment. |
||||||||
|
Products
: |
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PRODUCTION STATUS
|
Particulars |
|
Unit
|
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
ABS
Resins |
|
Mt |
50000 |
39927 |
|
SAN
Resins |
|
Mt |
60000 |
34289 |
GENERAL INFORMATION
|
No. of
Employees : |
600 |
|
|
|
|
Bankers
: |
v
Bank
of Baroda, Nandesari, Gujarat v
State
Bank of India, Nandesari, Gujarat v
ICICI
Bank, Landmark Race Course Circle, Vadodara – 390 015, Gujarat. |
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|
|
Facilities : |
-- |
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|
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Banking Relations : |
Satisfactory |
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Auditors
: |
Price Waterhouse Chartered Accountants Mumbai |
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Associates/Subsidiaries
: |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs.10/-
each |
Rs.
500.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
17,585,625 |
Equity Shares |
Rs.10/-
each |
Rs.
175.856 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 |
175.856 |
175.856 |
175.900 |
|
|
2]
Reserves & Surplus |
1504.005 |
1391.346 |
1212.200 |
|
NETWORTH
|
1679.861 |
1567.202 |
1388.100 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
0.000 |
0.000 |
0.000 |
|
|
DEFERRED
TAX LIABILITIES |
313.442 |
314.002 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1993.303 |
1881.204 |
1388.100 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1561.132 |
1483.807 |
1553.700 |
|
Capital work-in-progress
|
69.367 |
98.861 |
24.200 |
|
|
|
|
|
|
|
INVESTMENT
|
1.034 |
1.034 |
1.000 |
|
DEFERREX TAX ASSETS
|
8.562 |
3.602 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
504.933
|
694.302
|
414.000 |
|
|
Sundry Debtors
|
586.201
|
902.148
|
626.700 |
|
|
Cash & Bank Balances
|
354.048
|
375.263
|
93.000 |
|
|
Loans & Advances
|
117.364
|
94.905
|
62.200 |
Total Current Assets
|
1562.546 |
2066.618 |
1195.900 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1159.208
|
1557.117
|
1331.600 |
|
|
Provisions
|
50.130
|
215.601
|
55.100 |
Total Current Liabilities
|
1209.338 |
1772.718 |
1386.700 |
|
Net
Current Assets
|
353.208 |
293.900 |
(190.800) |
|
|
|
|
|
|
|
TOTAL
|
1993.303 |
1881.204 |
1388.100 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
Sales Turnover [including other income]
|
4122.511 |
4104.664 |
4011.700 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
257.769 |
629.033 |
395.000 |
Provision for Taxation
|
94.980 |
240.700 |
141.600 |
Profit/(Loss) After Tax
|
162.789 |
388.333 |
253.400 |
|
|
|
|
|
Export Value
|
2.450 |
0.859 |
0.333 |
|
|
|
|
|
Import Value
|
2368.997 |
2604.967 |
1623.230 |
|
|
|
|
|
Total Expenditure
|
3864.742 |
3733.231 |
3616.700 |
QUARTERLY
RESULTS
|
Particulars |
|
30.09.2006 |
30.06.2006 |
|
Type
|
|
2nd Qtr |
1st Qtr |
|
Sales Turnover |
|
1296.500 |
2125.600 |
|
Other Income |
|
8.100 |
23.100 |
|
Total Income |
|
1304.600 |
2148.700 |
|
Total Expenditure |
|
1138.300 |
1902.700 |
|
Operating Profit |
|
166.300 |
246.000 |
|
Interest |
|
0.000 |
0.000 |
|
Gross Profit |
|
166.300 |
246.000 |
|
Depreciation |
|
33.300 |
65.900 |
|
Tax |
|
49.200 |
65.200 |
|
Reported PAT |
|
87.900 |
117.000 |
200609
Quarter 3 :--
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (77.791)million
Consumption of Raw Materials Rs1031.069 million Staff Cost Rs 35.970 million
Other Expenditure Rs 149.025 million Tax includes Provision for Current Tax Rs
48.833 million Deferred Tax Rs (4.083)million Fringe Benefit Tax Rs 0.350
million.
KEY
RATIOS
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
Debt Equity Ratio |
0.00 |
0.00 |
0.09 |
|
Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.07 |
|
Current Ratio |
1.01 |
0.94 |
0.86 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.81 |
1.87 |
1.64 |
|
Inventory |
7.89 |
8.46 |
10.49 |
|
Debtors |
6.36 |
6.13 |
6.02 |
|
Interest Cover Ratio |
29.64 |
47.55 |
19.72 |
|
Operating Profit Margin (%) |
8.33 |
10.74 |
13.51 |
|
Profit Before Interest and Tax Margin (%) |
5.64 |
8.12 |
10.53 |
|
Cash Profit Margin (%) |
6.13 |
7.53 |
9.39 |
|
Adjusted Net Profit Margin (%) |
3.44 |
4.91 |
6.41 |
|
Return on Capital Employed (%) |
16.43 |
25.74 |
29.61 |
|
Return on Net Worth (%) |
10.03 |
15.56 |
19.70 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 169.00 |
|
Low |
Rs. 168.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was
incorporated on 7th December 1973 at Vadodara in Gujarat having
Company Registration Number 2436.
Bayer ABS (formerly ABS Industries) incorporated
in 1973, commenced production in 1978. The company was promoted by R S Agarwal,
a chemical engineer from the US, and J J Mehta, who has over fifty years of
experience in the petrochemical and engineering industries. Its works is
situated in Nandesari and Katol in Gujarat. Its R & D Centre is also in
Moxi, Gujarat. It manufactures 37,388 tonnes of ABS (acrylonitrile butadiene
styrene) polymer, a versatile engineering plastic accepted as a substitute for
conventional materials. The mechanical and thermal properties of ABS are
comparable to metals.
The company also manufactures 32,361 tonnes of SAN (styrene acrylonitrile), a
plastic giving a 95% transparent finish. The major applications of ABS are in
refrigerator liners, automobile components, telecommunications, consumer
electronics, household appliances, computer cabinets, cameras, etc. It has a
technical collaboration with Japan Synthetic Rubber Company, Japan.
During 1996-97, Bayer Industries, subsidiary of Bayer AG, Germany, acquired a
controlling stake of 50.97 % of equity shares, by way of preferential issue of
shares and acquisition of existing shares through the open offer. It becamed a
subsidiary of Bayer Industries.
In 1999-2000, the company has started aggressive marketing of Makrolon (Polycarbonate)
by importing and selling in the country and is now the market leader for this
product. The company has been awarded ISO 9001 Certification for its quality
systems.
The company has executed two global projects that was undertaken in the year 2000
(PC+SAN and Nylon+Polyethylene blends). It also manufactures 6000 tonnes of SAN
(Styrene acrylonitrile), a plastic giving a 95% transparent finish.
In 2003-2004, the company has increased its production capacity of
Poly-Butadiene from 6000 tpa to 9000 tpa which lead to an increase of 6000 MT
production capacity in ABS Resins. Consequent of this expansion,the total
capacity of ABS Resins has risen to 44000 MT.
During 2004-2005, Lanxess India Private Limited has acquired 50.97% equity in
the company. Subsequently, the company became a subsidary of Lanxess India
Private Limited.
Company Profile
The erstwhile ABS Plastics Limited now LANXESS ABS Limited (the ‘Company’) played a pioneering role in developing the market for the versatile engineering thermoplastic material – Acrylonitrile Butadiene Styrene (ABS) in India, when it started its operation in 1978 by manufacturing and marketing ABS polymer under the brand name of ABSOLAC. Since then the company has been continuously growing through a planned process of aggressive market development and consolidation, technology updation and capacity build up. The company also set up India’s first modern and dedicated Styrene Acrylonytrile (SAN) plant in 1993, with technical know-how from M/s JSR, Japan for manufacture of various grades of ABSOLAN – SAN.
In early
1997, Bayer Industries Private Limited, a 100% holding company of the German
major, Bayer AG acquired a majority share of 51% in ABS Industries Limited. The
company then became a part of the Bayer group and was rechristened as “Bayer
ABS Limited”.
In early 2004, Bayer Group globally decided carving out of styrenic-based
Polymer products,beside other business, into a new group LANXESS, the said
business was then globally transferred to a 100% subsidiary of Bayer AG to a
Company styled as LANXESS Deutschland GmbH. Once the business operations at
Bayer ABS Ltd were regrouped within the LANXESS group, LANXESS AG has become an
ultimate holding Company under the spin off process.
LANXESS India Private Limited (which is 100% subsidiary of LANXESS AG Germany)
acquired 89,63,564 equity shares of Rs.10/- each in Bayer ABS Ltd (BABS)
constituting 50.97% of paid-up capital of the paid up share capital of Bayer
ABS Limited from Bayer Industries Private Ltd and became a holding Company of
the Company.
Consequent to acquisition of 50.97 % share capital by LANXESS India Private
Limited and the shareholders approval at the 32nd Annual General Meeting held
on 28th April, 2005, the Office of Registrar of Companies (ROC) has approved
the change of name of the Company from Bayer ABS Limited to LANXESS ABS Limited
w.e.f. 29th April, 2005.
With a well defined accent on quality monitors on inputs, process controls,
packaging and finished products, LANXESS ABS Limited offers its customers an
extensive range of performance thermoplastics – from its indigenous production.
The range of products and the variety of grades for a given product are
developed and made, to meet almost all the requirements of many sectors of the
industry demanding high performance & quality.
Fuelled by the increasing worldwide demand for engineering thermoplastics,
LANXESS ABS Limited, a public listed company in NSE & BSE having it’s
registered office in Vadodara,recently,announced that it has already
commissioned its expansion of SAN capacity from 36,000 tpa to 65,000 tpa in
2005, which has helped increasing its capacity of ABS from 48,000 tpa to 60,000
tpa. The SAN polymer is being used for captive consumption for making ABS and
is also being sold as merchant product.
According
to Mr. Rakesh Agrawal, MD, LANXESS ABS Limited, “The future is in polymers. We
see that our investment in the state-of-the-art R&D facilities at Moxi is
paying us rich dividends. With an uptrend in consumer spending on automobiles,
white goods and electronic products the demand for ABS resin will go up
significantly. We also see good scope for SAN resins.”
To meet the increasing demand, LANXESS ABS Limited intends to enhance the
capacity of ABS to 80,000 tpa from the current 60,000 tpa within a short period
and the Company is further increasing this capacity to 100,000 tpa in the
course of next two years, which is quite possible at a nominally higher cost
through an additional investment in machinery and de-bottlenecking in the
existing plants. This expansion to 100,000 tpa will be funded through internal
accruals. The Company enjoys a debt free situation today and is expected to
perform well in forthcoming years. With its technological expertise and
international collaboration with global leaders, LANXESS ABS Limited has always
anticipated future demand and it has increased capacities steadily to meet
these demands.
The Company is watching eagerly the developments in China and the possibility
of shifting of manufacturing base to India which would mean an explosive growth
in the sector. To have quick responses to such developments, the Company is
also carrying out studies for a grass-root facility.
Echoing Mr. Agrawal’s views and stressing on the importance of LANXESS ABS Limited
to the LANXESS Group, Dr. J Strassburger, Country Representative and Managing
Director, LANXESS India Private Limited said, “India is not only a great market
but also has great technical expertise. The plant’s R&D facility at Moxi
can undoubtedly be rated amongst the best in the business. It is not without
reason that this centre is currently being engaged in research and development
in areas of engineering thermoplastics for LANXESS’s global operations.”
Speaking about the company’s future plans, Mr. Agrawal said, “We will be
investing to further upgrade our R&D facilities at Moxi by improving the
quality of the products and processes. Our main focus will however be on
high-grade ABS which is a metal substitute at lower costs.”
Some of the prominent clients of LANXESS ABS include Samsung, LG, Videocon,
BPL, Ford, Hero Honda, Cello, Lexi and Bajaj.
Products
Absolac
– (ABS)
Absolac is
plastic resin produced from Acrylonitrile, Butadiene & Styrene. It is a
widely used intermediary product. Its applications ranges from home appliances
to Automobile and consumer durables to business machines.
Absolac
– (SAN)
Absolan is
also a polymerized plastic resin which is produced from Styrene &
Acrylonitrile. It has its main applications in the Lightings, Stationeries and
novelties, Refrigerators and cosmetic packing.
BUSINESS:
Subject
operates in the engineering plastic segment and manufactures Acrylonitrile
Butadiene Styrene (ABS), which is used mainly in automobiles and consumer
durable segment. Other products include
Styrene Acrylonitrile (SAN) copolymers and sheets of Styrene polymers. It also trades in finished goods like ABS
resins, ABS sheet and SAN resins. The
company is a 51% subsidiary of Bayer AG, Germany. The company manufactures its products and follows processes that
meet the worldwide quality standards of Bayer.
The company believes in developing innovative quality products and that
meets the environmental standards of safety and prevents pollution. The company’s products are tested extensively
at local research and development centre in India. The company has developed a wind power generator, which supplies
power to the local power substation of Gujarat Electricity Board. The company gets credit for these units
supplied in its power bill. The company
has recently increased capacity of Polybutadiene rubber and added extrusion
capacity to increase overall capacity of the company’s products.
Operations:
During the
year under report Company sales rose by 8% in volume terms but realization of
margins were under pressure. Crude prices continued to be extremely volatile
influencing the prices of the basic raw materials. Prevailing uncertainties on
the prices created a situation where the increase in the cost of inputs could
not be fully passed on to the end user industry resulting in lower
margins.
Further between May to July there was a prolonged shut down of our SAN plant
because of expansion activities taken up which limited supply of feed stock to
the ABS plant. Again, there were heavy rains in and around Vadodara and Mumbai
in the month of July which disrupted key areas of operations for a short while.
All these factors contributed to lower performance.
The finance bill-2006 is neutral in overall impact. While duties on the
finished products have been decreased by 5%, thereby forcing the Company to
make the products more competitive, there has also been a reduction of duty on
its prime raw material (Styrene) by 3% (i.e. from 5% to 2%) and also many
auxiliary chemicals from15% to 12.5%. This has, to some extent, offset the
advantage arising out of reduction in duties of imported finished products.
They have geared ourselves to meet with market-centric challenges within the
governance norms practices based on LANXESS AG policies.
It continue to maintain market leadership, as being the first preferred
supplier to all OEMs and quality user industries who have appreciated customer
services coupled with technical and upgraded quality standards.
They are upbeat on possible increase in demand from end user customers from
automobile, consumer durables and IT/ Electronic industries. The growth
generated in the recent past appears to be sustainable for coming years.
During the last quarter, SAN capacity has been increased from 30,000 tpa to
60,000 tpa which has opened up the possibility of increasing ABS capacities.
The ABS capacity also was increased from 44,000 tpa to 60,000 tpa available for
2006. The Company has planned to increase the ABS capacity further to 80,000
tpa by next year and further to 100,000 tpa within a short period with minimal
incremental cost by making process changes and de-bottlenecking. The entire
expansion is expected to be funded through internal accruals.
Company continues a debt free status for the third year in succession.
Quality Systems and ISO
Certification
During the year the Company continues to observe all pre-requisites in
maintaining quality systems and standards and ISO audit methods, as required
within the certification guidelines.
Dividend
Directors
are glad to recommend a dividend @ 25% (Rs.2.5 per share) (previous year 25%)
on 17585625 equity shares of Rs. 10/-
each for the financial year ended 31.12.2005, subject to shareholders’
approval at the ensuring Annual General Meeting (AGM), which if approved, will
be paid to (i) all those members whose names appeared in the Register of
Members as on 21.04.2006 and (ii) to all those whose names appears on that date
as beneficial owners as furnished by the depositories (NSDL and CDSL).
LANXESS
Worldwide - New Organization Structure
Bayer Group globally created a basis, of carving out chemical and polymer
operations into a group, now combined within LANXESS AG, having headquarters in
Leverkusen Germany.
LANXESS India Private Limited ( LIPL) 100% subsidiary of LANXESS AG, Germany
acquired 89,63,564 equity shares of Rs.10/- each of, erstwhile Bayer ABS
Limited which constitutes 50.97% of paid-up capital. Effective 29th April, 2005
the company has been renamed as LANXESS ABS Limited (LABS) Thus, LIPL has
became holding company of LABS. LANXESS AG, Germany, is the ultimate holding
Company.
As a raw material supplier, apart from ensuring supply of right quality of
material, the Company has also directed its efforts to redefine process
efficiency through R&D programs. It has set up an ultra modern state-of-art
Research & Application Development Cell at Moxi near Baroda in Gujarat,
equipped with a Pilot Plant and all the modern polymer analytical and testing
equipments.
LANXESS ABS Limited aims to be the preferred partner of choice for all their
esteemed customers in the country.
Industry Structure and Developments
LANXESS ABS Limited continues to maintain its market leadership. Company has
enhanced market penetration of quality products in the various business
segments. Despite the turbulent hike in the raw material prices and stiff
resistance in market realization of prices, company is able to maintain healthy
profitability. Cost cutting measures are yielding satisfactory results to maintain
healthy bottom lines.
LANXESS ABS LTD:
Lanxess India Pvt. Ltd (LIPL) has acquired 50.97 % equity in your company.
future Outlook
Barring unforeseen circumstances, the Company expects to maintain its growth
rate, while improving profitability. The Company will also continue to provide
high quality products and services to its esteemed customers.
Subject has
received following awards:
* Surveillance Audit carried out by DSQ auditors certifying meeting the
International Quality standards,
* Gujarat Safety Council has awarded Nandesari Plant for lowest disabling
injury industry award for safety records
and performance,
* Certificate of merit for all the three plants at Nandesari, Moxi, Katol
for
Good Housekeeping at the Competition
organized by Baroda Productivity
Council,
* Safety Silver award by Greentech foundation,a non Govt organization
supporting good practices in overall
environment, health and safety
issues.
The company
manufactures SAN, a plastic giving a 95% transparent finish. The major
applications of ABS are in refrigerator liners, automobile components,
telecommunications, consumer electronics, household appliances, computer
cabinets, cameras, etc.
It has
technical collaboration with Japan Synthetic Rubber Company, Japan.
The
business group offers a wide choice of high grade engineering thermoplastics
like Makrolon (PC), Novodur / Lustran (ABS & SAN), Bayblend (PC+ABS),
Durethane (Nylons), Pocan (PBT) and Desmopan / Texin (TPU), etc.
The company
has also started aggressive marketing of Makrolon (Polycarbonate) by importing
and selling in the country and now is the market leader of this product. The demand for Polycarbonate in the country
has risen significantly with the growth in the information, communication and
entertainment industries. Worldover all
CDs, DVDs, CDRs are produced from Polycarbonate. Globally Bayer holds market leadership in this product.
The
company’s overseas suppliers include :-
Ø
Dupont
Ø
Dead
Sea
Ø
Bromine
Group
Ø
Great Lakes
Ø
GE
Speciality Chemicals
Ø
ICC
Ø
Landmark
Chemicals
The company
has been accredited with ISO 9001 certification.
HOLDING COMPAY
Ø
Bayer
AG, Germany
Ø
Bayer
Material Science Private Limited (formerly : Bayer Industries Private Limited )
The
Company’s Fixed Assets of important value includes:
- Freehold Land
- Leasehold Land
- Buildings
- Plant and Machinery
- Factory Equipments
- Furniture and Fixtures
- Vehicles
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. 45.01 |
|
UK Pound |
1 |
Rs. 84.91 |
|
Euro |
1 |
Rs. 57.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |