MIRA
INFORM REPORT
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Report Date : |
29th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
MUDRA
LIFESTYLE LIMITED (W.E.F.
02.12.2005) |
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Formerly Known As : |
MUDRA
TEXTILE LIMITED |
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Registered Office : |
149,
Shiv Shakti Industrial Estate, Phase III, Andheri - Kurla Road, Sakinaka,
Andheri (East), Mumbai 400 059, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.03.1997 |
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Com. Reg. No.: |
11-106945 |
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CIN No.: [Company
Identification No.] |
U17110MH1997PLC106945 |
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Legal Form : |
A
Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer
and Exporter of Fabrics and Garments |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1500000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are fair. Business is active. Payments are usually correct and as
per commitments. The company can be considered for business dealings at usual
trade terms and conditions. The
company is planning to come out with a public issue soon. The formalities for
the same have been completed. |
LOCATIONS
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Registered Office : |
149,
Shiv Shakti Industrial Estate, Phase III, Andheri - Kurla Road, Sakinaka,
Andheri (East), Mumbai 400 059, Maharashtra, India |
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Tel. No.: |
91-22-28592703/
66916321 |
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Fax No.: |
91-22-28506115/
28506767 |
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E-Mail : |
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Website : |
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Corporate
Office : |
5129-41,
Oberoi Garden Estate, D Wing, 5th Floor, Near Chandivali Studio,
Chandivali Farm Road, Andheri (East), Mumbai – 400 072, Maharashtra, India |
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Factory
1 : |
Located
at:
Area : 5.19 acres
Area : 2.38 acres
Area : 2.12 acres |
DIRECTORS
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Name : |
Mr.
Murarilal Bisesarlal Agarwal |
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Designation : |
Chairman
and Managing Director |
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Address : |
703
Minaxi Apartments, Gokuldham, Goregaon, Mumbai – 400 063, Maharashtra, India |
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Date of Birth/Age : |
14.11.1957 |
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Qualification : |
B. Com |
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Experience : |
25
Years |
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Date of Appointment : |
31.03.1997 |
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Other Directorships : |
Olive
Silk Mills Private Limited |
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Name : |
Mr.
Ravindra Bisesarlal Agarwal |
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Designation : |
Joint
Managing Director |
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Address : |
803
Orchid Building, Vasant Valley, Malad (East), Mumbai – 400 097, Maharashtra,
India |
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Date of Birth/Age : |
20.12.1960 |
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Qualification : |
M.A.
from Mumbai University |
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Experience : |
19
Years |
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Date of Appointment : |
31.03.1977 |
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Other Directorships : |
Olive
Silk Mills Private Limited |
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Name : |
Mr.
Vishwambharlal K Bhoot |
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Designation : |
Executive
Director |
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Address : |
302,
Rajnigandha Filmi City Road, Gokuldham, Goregaon, Mumbai – 400 063,
Maharashtra, India |
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Date of Birth/Age : |
10.07.1941 |
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Qualification : |
Matriculate
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Experience : |
38
Years |
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Date of Appointment : |
12.12.2001 |
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Other Directorships : |
Olive
Silk Mills Private Limited |
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Name : |
Mr.
Surendra A Dave |
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Designation : |
Independent
Director |
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Address : |
17/31,
MHB Colony, Bandra Reclamation, Bandra (West), Mumbai – 400 050, Maharashtra,
India |
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Date of Birth/Age : |
03.08.1936 |
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Date of Appointment : |
28.04.2006 |
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Other Directorships : |
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Name : |
Mr.
Subhash C Bhargava |
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Designation : |
Independent
Director |
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Address : |
Flat
No. 14, Queens Court, Maharshi Karve Road, Churchgate, Mumbai – 400 020,
Maharashtra, India |
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Date of Birth/Age : |
20.07.1945 |
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Date of Appointment : |
28.04.2006 |
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Other Directorships : |
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Name : |
Mr. K
K Maheshwari |
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Designation : |
Independent
Director |
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Address : |
214,
Raghava Ratna Towers, Chirag Ali lane, ABIDS, Hyderabad – 500 001, Andhra
Pradesh, India |
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Date of Birth/Age : |
30.06.1962 |
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Date of Appointment : |
16.09.2006 |
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Other Directorships : |
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KEY EXECUTIVES
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Name
: |
Mr.
Mahesh K Poddar |
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Designation
: |
Company
Secretary |
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Address
: |
149,
Shiv Shakti Industrial Estate, Phase III, Andheri - Kurla Road, Sakinaka,
Andheri (East), Mumbai 400 059, Maharashtra, India |
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Tel.
No. : |
91-22-28592703/
66916321 |
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Fax
No.: |
91-22-28506115/
28506767 |
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Email
: |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Mr. Murarilal Agarwal |
8,481,322 |
34.63% |
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Mr. Ravindra Agarwal |
8,450,763 |
34.51% |
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Mr. Vishwambharlal Bhoot |
2,679,504 |
10.94% |
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Mr. Harigobind Murarka |
1,275,000 |
5.21% |
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Mr. Narendra Agarwal |
1,000,000 |
4.08% |
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Jewel Stationary Private Limited |
. 550,000 |
2.25% |
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Quest Profin Advisors Private Limited |
63,994 |
. 0.26% |
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Crystaline Exports Limited |
50,000 |
0.20% |
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Careview investment and Trading Private Limited |
50,000 |
0.20% |
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Canara Securities Limited |
50,000 |
. 0.20% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
and Exporter of Fabrics and Garments |
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Products : |
n
Fabrics n
Garments |
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GENERAL INFORMATION
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No. of Employees : |
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Bankers : |
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Facilities : |
All these loans are eligible for an interest subsidy of 5 % under
Technology Upgradation Funds Scheme. They have received consent from State
Bank of Patiala vide their letter dated October 14, 2006, State Bank of
Hyderabad vide their letter dated October 10, 2006, from State Bank of
India vide their letter dated September 21, 2006 and Oriental Bank of Commerce
vide their letter date August 14, 2006 for their name being included in the
DRHP as a proposed lender/banker for the
expansion project. Secured Loans (Rs.
In millions)
Unsecured Loan (Rs.
In millions)
In addition to the above, the following credit facilities / loans have
been sanctioned in favour of the Company. 1. State Bank of Patiala vide its letter dated 15th April, 2006 sanctioned
a term loan of Rs. 600 million to the Company for its new project at
Bangalore and Tarapur. 2. State Bank of Hyderabad vide its letter dated 13th June,
2006 agreed to sanction a Term loan facilities to the extent of Rs. 200
million to the Company. 3. Oriental Bank of Commerce vide its letter dated 16th June, 2006
sanctioned cash credit facility of Rs. 45 million and term loan of Rs. 13.76
million to the Company. 4. State Bank of India vide its letter dated 17th June, 2006
increased the term loan by Rs. 400 million for the Company for its new
project at Bangalore and Tarapur. 5. The Bank of India vide its
letter dated 23rd June, 2006 sanctioned cash credit facility of 90 million
and a term loan of Rs. 60 million to the Company. 6. Oriental Bank of Commerce vide its letter
dated 17th July, 2006 sanctioned fresh term loan facility of Rs. 250 million
to the Company. |
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Banking Relations : |
Satisfactory
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Auditors : |
V. K. Beswal and Associates Chartered Accountants |
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Address : |
408/410,Rewa Chambers, 31, New Marine Lines, Mumbai 400 020,
Maharashtra, India |
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Tel. No.: |
91 22 22005656 |
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Fax No.: |
91 22 220 95656 |
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E-Mail : |
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Associates : |
n
Mudra
Synthetics Private Limited n
Picanova
Fbrics Private Limited n
Mudra
Impex n
Venus
Processors Private Limited n
East
Coast Polytex |
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Memberships : |
n
Germanischer
Lloyd n
Synthetics
and Rayon Textiles Export Promotion Council n
Federation
of Indian Export Organisation n
Apparel
Export Promotion Council n
Cotton
Textiles Export Promotion Council |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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40010000 |
Equity
Shares |
Rs. 10/- |
Rs. 400.100 millions |
As on 31.03.2006
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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23090000 |
Equity
Shares |
Rs. 10/- |
Rs. 230.900 millions |
After 31.03.2006
Issued
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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24490469 |
Equity
Shares |
Rs. 10/- |
Rs. 244.904 millions |
Paid-up
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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35990469 |
Equity
Shares |
Rs. 10/- |
Rs. 359.904 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
230.900 |
88.800 |
7.100 |
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2] Reserves & Surplus |
143.000 |
30.000 |
3.500 |
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NETWORTH |
373.900 |
118.800 |
10.600 |
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LOAN FUNDS |
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1] Secured Loans |
259.500 |
158.100 |
27.900 |
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2] Unsecured Loans |
6.600 |
10.800 |
8.400 |
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TOTAL BORROWING |
266.100 |
168.900 |
36.300 |
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TOTAL |
640.000 |
287.700 |
46.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
307.900 |
100.200 |
20.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
306.000
|
200.100 |
43.600 |
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Sundry Debtors |
228.000
|
85.100 |
22.700 |
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Cash & Bank Balances |
8.300
|
2.200 |
0.000 |
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Loans & Advances |
47.300
|
23.400 |
4.900 |
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Total Current Assets |
589.600
|
310.800 |
71.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
257.600
|
123.400 |
45.000 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total Current Liabilities |
257.600
|
123.400 |
45.000 |
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Net Current Assets |
332.000
|
187.400 |
26.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.100 |
0.100 |
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TOTAL |
640.000 |
287.700 |
46.900 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
1073.200 |
452.900 |
103.900 |
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Profit/(Loss)
Before Tax |
98.400 |
31.400 |
3.300 |
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Provision
for Taxation |
7.600 |
4.900 |
1.200 |
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Profit/(Loss)
After Tax |
90.800 |
26.500 |
2.100 |
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Total
Expenditure |
974.800 |
421.500 |
100.600 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt
Equity Ratio |
0.88 |
1.59 |
2.81 |
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Long
Term Debt Equity Ratio |
0.35 |
0.53 |
1.29 |
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Current
Ratio |
1.40 |
1.25 |
1.06 |
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TURNOVER
RATIOS |
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Fixed
Assets |
4.62 |
5.29 |
5.23 |
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Inventory
|
4.07 |
2.80 |
2.89 |
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Debtors |
6.59 |
6.32 |
4.43 |
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Interest
Cover Ratio |
5.07 |
4.61 |
2.38 |
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Operating
Profit Margin (%) |
14.46 |
12.91 |
6.92 |
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Profit
Before Interest and Tax Margin (%) |
11.89 |
11.76 |
5.48 |
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Cash
Profit Margin (%) |
11.38 |
8.92 |
3.46 |
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Adjusted
Net Profit Margin (%) |
8.81 |
7.77 |
2.02 |
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Return
on Capital Employed (%) |
26.43 |
23.98 |
15.70 |
|
Return
on Net Worth (%) |
36.86 |
40.96 |
21.99 |
LOCAL AGENCY
FURTHER INFORMATION
History
The
company was originally incorporated as Bombay Fine Fabrics Private Limited on
March 31, 1997. Name of the company was changed to Mudra Textiles Private
Limited w.e.f. October 10, 2001. Name of the company was further changed to
Mudra Textile Limited w.e.f. December 1, 2005. Name of the company was further
changed to Mudra Lifestyle Limited w.e.f. December 2, 2005.
The
company has shifted its registered office from 156 Shiv Shakti Industrial
Estate, III Phae, Andheri – Kurla Road, Andheri (East), Mumbai 400 059,
Maharashtra w.e.f. June 11, 2002. The company had earlier shifted its
registered office w.e.f. September 24, 2001 from 5A Nandjyot Industrial Estate,
Mohali Village, Andheri – Kurla Road, Andheri (East), Mumbai 400 059,
Maharashtra to 156 Shiv Shakti Industrial Estate, III Phae, Andheri – Kurla
Road, Andheri (East), Mumbai 400 059, Maharashtra.
Corporate Profile
Mudra Group, started operations in 1986 and are in the textile industry
having facilities for fabrics and garments manufacturing, processing, design
development and sampling etc. They manufacture fabrics and garments for
domestic and export market.
The brand “MUDRA” has built a strong goodwill for itself in the domestic market
and commands a premium. They are gradually moving towards garment manufacturing
mainly in the designer shirts and ladies wear segments to capitalize on the
huge opportunity unleashed by the removal of quotas.
Product Portfolio consists of:
- Finished fabric
- Processing
- Garments
- Mens Wear
- Shirts
- Ladies Wear
- Tops
- Skirts
- Kids Wear
They
have positioned ourselves as an integrated multi product, multi fiber and multi
market player covering the entire textile value chain at length. They ensure
that our target market is a diverse mix of the domestic market, garment export
trade and international market (exports) to ensure risk diversification and
stability of earning. Presently they sell our fabrics to domestic as well as
international market. In addition they also use the fabrics for internal
consumption and at the same time sell it to other garment exporters. They
export our Garments and recently started with manufacturing garments for Indian
well known brands. Their process house caters to our requirements and at the
same time do outside jobs.
At present they have 177 automatic looms producing approximately 10.62 million
meters of woven fabric per annum and 700 sewing machines with production
capacity of 3.15 million garments per annum. Manufacturing facilities, having
area of around 165,888 square feet, are spread across five locations at
Bhiwandi (Kalher and Sonale) in Thane district, Bangalore, Daman and Navi
Mumbai. Manufacturing facilities are fully backed by the facilities for product
development, design studio and efficient sampling infrastructure to provide
quality services to its customers in India and abroad.
Promoters
Mr.
Murarilal Agarwal, aged 49 years, Chairman and Managing Director, is a commerce graduate. He is
the founder of the MUDRA group and has over 25 years experience in various
facets of the textile industry. Shri Agarwal, as Executive Chairman, overlooks
the entire working and affairs of the company’s management.
Mr.
Ravindra Agarwal, aged 46 years, Joint Managing Director, has done his M.A. (Gold
Medalist) from Mumbai University. He has experience of over 18 years in the
textile industry. He heads the Finance and Marketing Functions of the company.
He is supported by a team of experienced professionals.
Mr.
Vishwambharlal Bhoot, aged 65 years, is a matriculate and has experience of over
38 years in the textile industry. He controls the company’s administration and
accounting functions. He is supported by a team of experienced professionals.
Dr. S.A.Dave, aged 70 years, is an Independent Director on our Board. He has over forty four years of professional experience as an Economist. He is currently Chairman of Centre for Monitoring Indian Economy, the premier economic monitoring institution in the country, prior to that he had a diversified work exposure with Reserve Bank of India, IDBI, SEBI and Unit Trust of India. He was founder chairman of SEBI and also chairman of Unit Trust of India from where he retired in 1996. By training he is an economist and topped the list of students both as BA and MA level in economics in the University of Bombay. He has been associated with various Committees of Government of India dealing with reforms in the Capital Market, Mutual Funds Sector, Insurance Sector and Pensions.
Mr. S.C.Bhargava, aged 61 years, is an Independent Director on our Board. He has around 39 years of experience as financial expert. At present, he is working as Financial Consultant to The Bank of Rajasthan and IL & FS Investsmart since August 2005. He is also on the Board of various Companies including Aditya Birla Nuvo Limited, DCM Shriram Consolidated Limited, Escorts Limited, Bank of Maharashtra, Jaiprakash Associates Limited, Jaypee Cement Limited, IL&FS and OTC Securities Limited. He has been retired as Executive Director (Investment), Life Insurance Corporation of India on July 31, 2005, looking after investment functions which include debt, equity, monitoring corporate sector, investment in infrastructure both in private and public sector as well as Social Sector which includes dealing with State Government bodies and Central Government Undertakings etc. He Joined Investment Department as Central Office, Mumbai in 1993 as Deputy Secretary and since then worked in various capacities as Secretary (Investment), Chief (Investment). During this period, job profile varies from managing treasury, Government Bonds, debt both corporate as well as PSUs and Equity- sale and purchase.
Mr. K.K. Maheshwari, aged 44 years, is an Independent Director on the Board of the Company. He has over 20 years experience in the areas of finance. He is on the Board of CIL Securities Limited, CIL Finstocks Limited, CIL Industries Limited. CIL Financial Services Limited, CIL Commodities Private Limited and Hifex Hoses Private Limited.
Weaving Unit
With the
use of advanced and sophisticated weaving procedures, Mudra has an excellent
translation result of fibre into fabric.
The units are equipped with state-of-the-art Sulzer Projectiles, Picanol,
Rapier and Vamatex Looms with Electronic Dobby ideally located within the
vicinity of Mumbai.
Constant online checks are carried throughout the unit to improve the
efficiency and help produce fault-free fabric.
Processing Unit
Mudra
boasts of one of the most modern processing and finishing houses in India.
The plants are equipped with the latest and most advanced machineries that
provide a wide range of finishes as per the customers’ requirements.
The fabrics undergo specialized treatments and process to provide durability
and higher level of comfort for the weaver.
Processing includes Grey Inspection, Singeing, Desizing, Mercerization,
Continuous Bleaching, Stenter Finishing, Sanforizing, Calendering, Folding and
Quality Inspection.
Mudra’s multi-dimensional processing capability begins with quality dyeing,
processing and finishing of yarn with a wide range of finishes like Teflon,
Hydro-phobic, Hydro-philic, Brushing & Peaching.
Mudra’s well-equipped plant can handle upto 2.4 million meters per month of
dyeing and finishing of cotton and blenched fabric.
Readymade Garments
At
Mudra, they follow the concept of complete lifestyle for men, women and
children.
Mudra caters to well known names in the fashion market with its ability to
offer collections set to seasonal fashion trends, colors, patterns and
international designs.
To realize the fabric into brilliant expressions of styling, the company has
set us in-house state-of-the-art garment manufacturing units, wherein fabric
get realized into quality finished products.
Manufacturing unit houses high-tech automated machines, which includes
automatic cutting, steam ironing, fusing, high-tech stitching, inter-locking
and button stitching for complete garment processing.
Mudra has entered into the segment of Garment manufacturing with the aim to
integrate its activities and give value additions to its existing customers
while increasing its business segments.
Mudra houses the complete technology for manufacturing the perfect garment that
speaks global lifestyle and quality. The Garment manufacturing units are
equipped with high-tech machines like Juki stitching, Brother, interlocking,
button stitching, automatic cutting, fusion and automatic steam ironing.
With an annual capacity of 3.15 million garments, Mudra offers high quality
garments for buyers in over 30 countries worldwide.
Mudra has spread business over to both domestic and global customers. It caters
to national brands like Raymonds and Arvind Mills. Some of the international
houses Mudra is associated with one Wal-Mart and its brands, like Weekends,
George, Non stop, Metropolis and other brands like Tricos, American Juliet
& Liver Pool.
It has garment manufacturing plants in Bangalore and Daman, India. A Complete
range of specialized machines needed for all critical operations like cutting,
sewing, pressing, finishing and quality control are housed under one roof
ensuring speed, consistency and quality.
Products
Menswear
Mudra
Lifestyle develops trendiest designs of fabrics for Shirtings and suitings at
its state of the art design studio. The fabrics are then woven using most
modern technologies and undergo specialised treatments and processes to provide
durability and comfort to the wearer.
Ladieswear
Mudra
Lifestyle develops trendiest designs of fabrics for shirts, skirts and women's
dresses at its state of the art design studio. The fabrics are then woven using
most modern technologies and undergo specialised treatments and processes to
provide durability and comfort to the wearer.
Kidswear
Mudra Lifestyle develops trendiest designs of fabrics for shirts, skirts and ensembles at its state of the art design studio. The fabrics are then woven using most modern technologies and undergo specialised treatments and processes to provide durability and comfort to the wearer. Special attention is paid to see that kid's fabrics are made durable to withstand the tough wear & tear.
Litigation against Company and Promoters
Outstanding adjudication proceedings involving
Promoters
The Spl Director, Directorate of Enforcement, Ministry of Finance has initiated adjudication proceedings against inter alia, the Promoters. It was noted by the Complainant that 3 bills dated June 18, 2004, September 22, 2004 and October 12, 2004 aggregating to USD 20,300.15 were not realized by Mudra Exports (India) as on October 6, 2005. It is alleged that the Promoters had contravenced the provision of Section 8 and 42(1) of the Foreign Exchange Management Act, 1999 and had not taken reasonable steps to realized the amounts due within the stipulated period stipulated by the Reserve Bank of India. The matter is presently pending adjudication before the authority. The last date of hearing was October 18, 2006.
Industry Overview
The textiles and garments industry is one of the largest and most prominent sectors of Indian economy, it terms of output, foreign exchange earning and employment generation. It contributes about 4% to the GDP, accounts for over 14% of total industrial production, generates 8% of the Central Excise Revenue and contributes around 35% of gross exports earnings in trade and 16% of gross exports earnings. The sector is the 2nd largest employment providers after the agriculture sector, employing over 35 mm people directly.
Indian textiles industry is multi-fibre based, using cotton, jute, wool, silk and man made and synthetic fibres. In the spinning segment, Indian industry has consistently remained flexible in terms of production quantity and lead time. While typical production runs are governed by fabric colour minimums, India present the possibility of producing quantities as low as to a few hundreds pieces. This capability is specially critical in an unpredictable market where retailers and brands are looking to source ever-smaller quantities of products, increasingly closer to the season.
Industry Profile
The Indian industry is amongst the very few in the world that is truly
vertically integrated from raw material to finished products. It contains
within itself, fibre-production, spinning, knitting and weaving, as well as
apparel manufacture. Indian industry has consistently remained flexible in
terms of production quantity and lead time. While typical production runs are
governed by fabric colour minimums, India presents the possibility of producing
quantities as low as to a few hundred pieces. This capability is especially
critical in an unpredictable market where retailers and brands are looking to
source eversmaller quantities of product, increasingly closer to the season.
The policy environment that was unfavorable to large-scale
manufacturing in the past has also created an unintended strength - a
base of design, product development and
merchandising capability.
A major gap in Indian industry is its fragmented industry structure with
a dominance of small scale industries. Small scale also brings with it the
problem of productivity. Smaller companies often do not have the resources to
invest in appropriate technology or retraining, or in the re-engineering of
processes. While skilled Indian labour is inexpensive in absolute terms, due to
lower productivity levels, much of this advantage is lost by small firms. The
fragmentation of supply base also creates barriers in achieving true
integration between the various links in the supply chain. This creates issues
of lack of control and lack of consistent or reliable performance. The huge
geographical spread further complicates this issue. There are certain
macro-level disadvantages that India faces as a country. For one, it has a
global logistics disadvantage due to its geographic location. Unlike its
competitors Mexico (for the US), Turkey (for the EU), and China (for Japan and
the US West Coast), India is distant from all the major markets. Therefore, the
cost of shipping is high and shipping time adds to the disadvantage. Cost of shipping
is also affected by the fact that inbound freight traffic has been low -
therefore, container movement is not at its most cost-efficient. This is
changing as India imports more products and inbounds freight traffic increases.
Exports performance of Indian Textile Industry
The
export basket of Indian textile include cotton yarn and fabrics, man made yarn
and fabrics, wool, silks fabrics, made-ups and a verity of garments. Indian
Textile exports stood at US$ 13 billiob in FY 2005 and at US$ 16 billion in FY
2006.
Cotton-based products largely dominate India’s textile exports where it
has a competitive edge and cotton is expected to dominate exports in the future
also. In FY 05 the cotton textiles is expected to account for about 27.70
percent of the total textile exports. Even in the garments segment, which was
expected to account for 39.58 percent of the total exports during FY 05, more
than 70% were expected to be cotton based. The trade in garments has grown in
the value terms and there has also been a remarkable diversification in the
range of products and the direction of exports to different countries. The
share of manmade fibre textiles, which was 7.5 percent in FY 99, now expected
to account for 14.51 percent in total textiles export. The export of woolen
textiles, which accounted for 0.8 percent during FY 99, has been expected to
increase to 2.64 percent. The exports are also moving from commodity yarn and
gray fabrics to value added finished fabrics, apparels and made-up textile
articles. Presently, major overseas markets for India are USA, EU, UAE etc.
Business Overview
The Mudra Group started in 1986 with formation of partnership firm Olive
Tex Silk Mills. The Group is in the textile industry having facilities for
fabrics & garments manufacturing, processing, design development and
sampling etc. They manufacture fabrics and garments for domestic and export
sales.
Mudra Lifestyle limited was established as Bombay Fine Fabrics Private
Limited on March 31, 1997. They
started our operations in 2002. They are engaged in fabric weaving,
processing and making garments. The brand “MUDRA” has built a strong goodwill
for itself in the domestic market and commands a premium. They are gradually
moving towards garment manufacturing mainly in the designer shirts and lady’s
wear segments to capitalize on the huge opportunity unleashed by the removal of
quotas.
Presently they sell our fabrics in domestic as well as international
markets. In addition, they also use the fabrics for internal consumption and at
the same time sell it to other garment exporters. They export our garments and
recently started with manufacturing garments for well known Indian brands. Our
process house caters to our requirements and at the same time do outside jobs.
At present they have 177 automatic looms having capacity to produce
approximately 10.62 million meters of woven fabric per annum and 700 sewing
machines with production capacity of 3.15 million garments per annum.
Manufacturing facilities, having area of around 165,888 square feet, are spread
across five locations in Bhiwandi (Sonale and Kalher) in Thane district,
Bangalore, Daman and Navi Mumbai. Manufacturing facilities are fully backed by
the facilities for product development, design studio and efficient sampling
infrastructure to provide quality services to its customers in India and
abroad.
Experience of Promoters
Promoters have over 20 years experience in this business. The promoters
have varied experiences in this industry and are supported by a team of professionals.
The promoters have successfully managed an acquisition, amalgamations and
consolidations in the business and were able to bring out the synergy in the
business.
Integrated production facilities
Group was started in the year 1986 with a small loom-shed. The healthy
growth in the last 20 years saw us expanding to 177 looms with a forward
integration to processing and garment manufacturing. Today we have 12 units
engaged in production. They are already an integrated textile company having
competencies in weaving, processing and garmenting
Flexibility of production facilities
The looms and stitching units in our plants are capable of handling
different types of yarn and fabrics. This gives the company an ability to
customize the production according to the latest trends in the industry. The
state of the art machines in the manufacturing facilities allow us to
manufacture garments with high customization. Various complex designs can also
be incorporated in the fabrics that we manufacture.
Stringent quality check
The Company believes in providing the best possible quality to the
customers. There are regular quality checks in place that prevent any defective
material from reaching the customer. Quality control measures are in place at
every step in the manufacturing process. The Company also has a well equipped
quality control laboratory.
Designing capabilities
The company has two dedicated and well equipped design studios in Mumbai
and one in Bangalore. Designs are prepared by qualified, skilled and experienced
employees. There is also an information system in place that keeps a database
of all the designs created for future reference. The studios are equipped with
latest design software including CAD/CAM that increases the productivity and
the quality of designs. We have an extensive database of more than 12000
designs for fabrics and introduce more than 3000 new designs every season. The
design team comes out with new designs and ideas based on the
current trends in the international and domestic
markets. The new designs are then sent out to the laboratory for various
testing of the garments before the
designs are released to the sampling unit for the further marketing and sales
purposes. These design studios generate proprietary designs for fabric and garment
business and at the same time work on designs supplied by the customer for the
garments. The design studio takes feedback from the customers on the samples
already sent and modifies the design according to the suggestions. This process
is followed till the customer approves the design sample.
Expansion through inorganic
growth
Mudra Lifestyle Limited believes in growth via strategic investments /
Joint Ventures in areas complementary to our strengths. As a part of this
philosophy we acquired a company Venus Processors Private Limited (formerly
known as Abhishek Processors Private Limited) in 2001. They have successfully
amalgamated the company into Company, Mudra Lifestyle Limited. They intend to
grow by both organic and inorganic route.
Salient Features of Expansion
Project
Product Mix:
They will manufacture approximately 25,000 meters per day of narrow
width (+190 cm) fabrics in weaving
division. Entire quantity will be internally consumed in the processing
division .The Grey fabric will be of large varieties ranging from thread counts
200 to 600, made out of fine yarns. The processing division will have a
capacity of approximately 100,000 meters per day of fabric. The final product
will be 100% bleached, and dyed and/or printed. We have to procure 80,000
meters of Grey fabric from outside.
Weaving:
They will install 84 looms initially, which will be entirely imported.
The looms will be of AIR JET and RAPIER technology, which has the advantage of
high speed and productivity and a lower overall cost of operation. The weaving
preparatory machinery will also be imported.
Processing:
The processing division would use continuous process technology .The
processing division, which includes printing also, will have a capacity of
105,300 meters per day.
Garmenting:
An in-house garmenting unit consisting of various machines will cater to
the requirements of making garments and packing them into pieces as per
customer requirements.
Location:
The new project relating to dying, weaving and process house will be set
up at Tarapur and garment unit will be setup at Bangalore and the Company has
already acquired 10.57 acres at Tarapur. Further, the Karnataka Industrial
Areas Development Board has allotted 2.12 acres at Bangalore in favour of the
Company. As per GEL appraisal we require 10 acres of land.
The company’s Fixed Assets of important value includes:
- Land
- Site Development
- Building
- Plant and Machinery
- Yarn Dyeing Machinery
- Weaving Machinery
- Fabric Processing Machinery
- Garment Machinery
- Miscellaneous Fixed Assets
Land and Site Development
The new project relating to dying, weaving and the process house will be
set up at Tarapur and garment unit at Yarandanhalli, Bommasnadra, I Phase
Industrial Area. near Bangalore, we selected this location because of
availability of cheap and skilled labour as well as presence of sourcing houses
of leading textile companies. We have acquired 12.69 acres of land at an
approximate cost of Rs. 46.0 Million. The site development, registration &
Stamp duty cost for setting up new integrated facilities is estimated at Rs. 3
million. We have already purchased 10.57 acres of land in Tarapur and have been
allotted 2.12 acres in Bangalore for the purposes of the Project. The actual
cost incurred for the purchase of land is Rs. 46
Million. The land acquired is free from any encumbrance and we have a
clear title for the same.
Machinery
Yarn dyeing facilities
They will be installing 1 Package Press machine, 6 Yarn Dyeing machine
manufactured by FONGS, 1 Hydro extractor machine, 2 soft winding machines and 2
Lab package dyeing machine and other imported machineries. Expenditure required
for yarn dyeing machinery would be Rs.33.8 Million for the imported machinery
and Rs. 15.2 Million for the indigenous machinery.
Weaving facilities
Project requires 40 Rapier looms, 44 Air jet looms with dobby shedding,
a Direct wrapper machine, 1 sectional wrapper, 1 sizing machine, 1 warp tying
machine and 1 warp leasing machine to be imported at Rs. 211.4 Million and
other indigenous machinery at Rs. 5.7 Million.
Fabric Processing
We will install a modern process house with latest international
technology available with a capacity of 1,00,000 meters per day with imported
machines from international suppliers at a cost of Rs. 446.2 Million and other
indigenous machines at Rs. 63.1 Million.
Garmenting
Fund requirement for the garmenting unit is estimated at Rs. 149.28
Million.
Miscellaneous Fixed Assets:
Apart from the above mentioned process specific machines to be
installed, there are some other common
imported machines like Humidification Plant, Material handling, Lab
Equipments to be installed at an estimated cost of Rs. 33.58 Million and
indigenous equipment like Air Duct, Chilling Plant, Electronic installation, DG
Set 2 No of 1,500 KVA (Stand by), Boiler, Caustic recovery plant, piping and
insulation etc at an estimated cost of Rs. 181.9 Million.
Press Releases
Mudra Lifestyle makes Pre-IPO placement
Mumbai
The
soon-to-be-listed textile and apparel company, Mudra Lifestyle, has made a
pre-IPO private placement of equities worth Rs. 144.000 millions to SIDBI
Venture Capital and State Bank of India. It has filed the draft red herring
prospectus with SEBI, BSE and NSE to make a public issue of its securities. The
company has positioned itself as an integrated multi-product, multi-fiber and
multi-maker player. At present, the company has 177 automatic looms producing
approximately 10.62 millions meters of woven fabric p.a., 700 sewing machines
with production capacity of 3.15 millions garments p.a. and processing capacity
of 80000 meters per day.
Amalgamation of Picanova Fabrics
Private Limited (PFPL), Mudra Synthetics Private Limited (MSPL) and Venus
Processors Private Limited (VPPL) with Mudra Lifestyle Limited (MLL).
The Bombay High Court has by, order dated January 27, 2006 approved the
Scheme of Amalgamation of PFPL, MSPL, and VPPL with MLL effective April 1,
2005. The amalgamation has reduced the overlapping businesses amongst our Group
entities and has synergized the manufacture and sale of woven fabrics in both
domestic and overseas markets. The particulars of the group entities prior to
consolidations are provided below.
Show Cause Notice / Legal Notice
issued against the Company
Issued by: Maharashtra State Pollution Control Board
Date of issue: 05.10.2006
Status: The Company yet to issue a reply to the said
notice
Brief Facts: The Maharshtra State Pollution Control Board had issued letter directing
that Venus Processors Private Limited (now, the Company) change the fuel
pattern from coal to LSHS/ LDO/ Furnace Oil. During the visit of the
Sub-Regional officer on August 30, 2006 it was observed that the Company had
not changed the fuel pattern. Hence, the Maharshtra State Pollution Control
Board, in exercise of the powers conferred under section 31A of the Air
(Prevention and Control of Pollution)
Act, 1981, has issued letter dated October 5, 2006 directing the Company
to close down manufacturing activity. The Maharshtra State Pollution Control
Board has further directed the competent authorities to disconnect electricity
and water supply to the said unit of the Company. The said direction has been
issued in respect of factory situated Navi Mumbai.
Except as disclosed here, there are no outstanding litigations, suits or
criminal or civil prosecutions, proceedings initiated for offences (including
past cases, economic offences etc) irrespective of whether specified in
paragraph (1) of part 1 of Schedule XIII of the Companies Act and proceedings
or tax liabilities against our Company, our Promoters and Directors and
subsidiaries that would have a material adverse effect on our business. Except
those disclosed here, there are also no defaults, non-payment or overdue of
statutory dues, institutional/ bank dues and dues payable to holders of any
debentures, bonds and fixed deposits that would have a material adverse effect
on our business other than unclaimed liabilities against our Company or
Promoters, Directors and its subsidiaries.
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|