MIRA INFORM
REPORT
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Report
Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
AMARA RAJA BATTERIES LIMITED |
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Registered
Office : |
Renigunta
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
13.02.1985 |
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Com.
Reg. No. : |
01-15305 |
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CIN
No. : [Company
Identification No.] |
L31402AP1985PLC005305 |
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TAN
No. : (Tax
Deduction & Collection Account No.) |
HYDA02631G |
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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 : |
Manufacturer of industrial and automotive batteries |
RATING & COMMENTS
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MIRA’s
Rating : |
A |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum
Credit Limit : |
USD
8000000 |
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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.
Trade relations are fair. Financial position is good. Payments are reported
as correct and as per commitments. The company is doing well. It can be considered good for
any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered
Office / Factory : |
Renigunta
– |
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Tel.
No.: |
91-8574-275561-65 |
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Fax
No.: |
91–8574-285600/275360/285599 |
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E-Mail
: |
amararaja@amartpt.gnmds.global.net.in
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Website
: |
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Corporate
Office : |
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Tel.
No.: |
91-44 821
3270 |
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Fax
No.: |
91-44 828
4821 |
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Branches
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Central Marketing Office & Central Customer Support
Centre
Telephone
No : 91 - 40 - 2776 3353 Fax No :
91 - 40 - 2776 3354 E Mail : cmo.amararaja@gnhyd.globalnet.ems.vsnl.net.in Other Marketing Offices & Customer Support Centres
No. 85, 5th
Main, 1st Cross, Domlur, II Stage, Telephone
No : 91 - 80 - 2529 6116 / 2529 6395 Fax No :
91 - 80 - 25276899 E Mail : blr.amararaja@gnblr.globalnet.ems.vsnl.net.in 116 B, 2nd
Floor, Telephone
No : 91 - 33 - 2455 3422 / 2455 5641 Fax No :
91 - 33 - 2455 3422 E Mail : cal.amaraja@gncal.globalnet.ems.vsnl.net.in
8th
Floor, Wing B, Gemini Parsn Manere, 602, Telephone
No : 91 - 44 - 2823 5523 / 2822 5910 Fax No. :
91 - 44 - 2825 3606 E Mail: mds.amararaja@gnmds.globalnet.ems.vsnl.net.in Suite No
203, 2nd Floor, L B Bhavan, 6-3-550, Somajiguda, Telephone
No : 91 - 40 – 2332 8688 Fax No :
91 - 40 – 2332 8688 E Mail : cmo.amararaja@gnhyd.globalnet.ems.vsnl.net.in 11, Happy
Home, CHS, Telephone
No : 91 - 22 - 2619 1129 /2610 2452 Fax No:
91 - 22 - 2616 1841 E Mail: bom.amararaja@gnbom.globalnet.ems.vsnl.net.in 1st
Floor, A-1/263, Safdarjung Enclave, Telephone
No : 91 - 11 - 2617 6184 / 2617 7379 Fax No:
91 - 11 – 2618 6128 |
DIRECTORS
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Name : |
Mr.
Ramachandra N. Galla |
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Designation
: |
Non Executive
Chairman |
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Name : |
Mr.
Jaydev Galla |
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Designation
: |
Managing Director |
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Name : |
Mr. Mark
L. Kochzela |
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Designation
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Alternate Director of Ms. Manjula Chawla |
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Name : |
Dr.
Upendranath Nimmagadda |
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Designation
: |
Alternate Director of Mr. V R Rao |
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Name : |
Ms. Amara
Kumari Galla |
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Designation
: |
Director |
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Name : |
Mr. P.
Lakshmana Rao |
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Designation
: |
Director |
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Name : |
Mr.
Raymond J. Brown |
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Designation
: |
Director |
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Name : |
Mr. John
P. Kennedy |
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Designation
: |
Director |
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Name : |
Mr. John
D. Major |
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Designation
: |
Director |
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Name : |
Mr. Ravi
Bhamidipati |
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Designation
: |
Director |
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Name : |
Mr.
Staven Gibbs |
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Designation
: |
Director |
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Name : |
Mr. P.
Lakshmana Rao |
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Designation
: |
Director |
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Name : |
Mr.
Nagarjun Valluripalli |
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Designation
: |
Director |
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Name : |
Ms.
Manjula Chawla |
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Designation
: |
Alternate
Director to John D. Major |
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Name : |
Mr.
Kejian Lu |
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Designation
: |
Alternate
Director to Raymond J. Brown [With effect from 7th April, 2006] |
KEY EXECUTIVES
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Name : |
Mr. Gopal Mahadevan |
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Designation
: |
Chief Financial Officer |
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Name : |
Mr. N. RamNathan |
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Designation
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Company Secretary |
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Name : |
Mr. Narendra Reddy |
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Designation
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Executive Vice President |
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Name : |
Mr. Satish Rajagopalan |
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Designation
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Senior Manager – International Business |
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Name : |
Mr. Challapathi |
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Designation
: |
Senior Purchase Manager |
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Name : |
Mr. Venkat Madhav |
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Designation
: |
Purchase Manager |
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Name : |
Mr. Ramana Prasad |
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Designation
: |
Sales Manager |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
2960747 |
26.00 |
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Foreign
Promoters |
2960750 |
26.00 |
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Mutual
Funds & UTI |
843226 |
7.40 |
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Banks /
Financial Institutions |
247907 |
2.18 |
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Foreign
Institutional Investors / NRI’s |
1184977 |
10.41 |
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Private
Corporate Bodies |
620239 |
5.45 |
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Indian
Public |
2532347 |
22.25 |
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Clearing Members : |
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NSDL |
26240 |
0.22 |
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CDSL |
11067 |
0.10 |
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Total |
11387500 |
100.00 |
BUSINESS DETAILS
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Line
of Business : |
Manufacturer of industrial and automotive batteries |
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Products
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Kombat SMF Power Stack Amaron Hi-Life |
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Imports
From : |
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Exports
to : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Storage
Batteries |
Nos. |
NA |
2600000 |
2129491 |
GENERAL INFORMATION
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Customers
: |
Some of
its major customers are as under : Mahindra Ford Mercedes Benz General Motors (Opel) Ashok Leyland Cargo Mahindra & Mahindra (Bolero) |
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No. of
Employees : |
2500 |
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Bankers
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State Bank of Andhra Bank, Main Branch, Tirupati, Andhra Pradesh State Bank of |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
E. Phalguna Kumar & Company Chartered
Accountants, Tirupati,
Chevuturi Associates Chartered
Accountants, |
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Cost
Auditors : |
Parankusam and Company |
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Affiliation
: |
Confederation
of Indian Industry. |
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Sister
Concerns : |
Harsha Electronics Private Limited Mangal Electro Systems Private Limited Amara Raja Electronics Private Limited Johnson Controls India Private Limited Johnson Controls Enertech Do Brasil Limited Varta Auto Batteries Amara Raja Power Systems Limited Mangal Precision Products Private Limited Johnson Controls Mauritius Private Limited, |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
15000000 |
Equity
Shares |
Rs. 10/- |
Rs 150.000 millions |
Issued
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
11809100 |
Equity
Shares |
Rs. 10/- |
Rs. 118.091 millions |
Subscribed
& Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
11387500 |
Equity
Shares |
Rs. 10/- |
Rs. 113.875 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS
FUNDS |
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1] Share
Capital |
113.875 |
113.875 |
113.875 |
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2]
Reserves & Surplus |
1898.977 |
1692.973 |
1632.042 |
NETWORTH
|
2012.852 |
1806.848 |
1745.917 |
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LOAN
FUNDS |
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1]
Secured Loans |
162.264 |
73.666 |
44.945 |
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2]
Unsecured Loans |
216.407 |
159.393 |
103.853 |
TOTAL
BORROWING
|
378.671 |
233.059 |
148.798 |
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DEFERRED
TAX LIABILITIES |
120.012 |
130.927 |
145.000 |
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TOTAL
|
2511.535 |
2170.834 |
2039.715 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
1043.547 |
948.631 |
991.886 |
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Capital
work-in-progress |
48.149 |
12.892 |
9.514 |
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INVESTMENTS |
320.140 |
235.627 |
208.778 |
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CURRENT
ASSETS, LOANS & ADVANCES |
|
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Inventories |
571.962 |
440.959 |
307.245 |
|
Sundry
Debtors |
856.520 |
649.706 |
471.674 |
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Cash
& Bank Balances |
205.212 |
169.122 |
152.292 |
|
Other
Current Assets |
12.035 |
9.926 |
7.623 |
|
Loans
& Advances |
634.973 |
342.929 |
251.403 |
|
Total Current Assets |
2280.702 |
1612.642 |
1190.237 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
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Current
Liabilities |
700.855 |
345.043 |
162.283 |
Provisions
|
480.148 |
293.915 |
198.417 |
Total Current Liabilities
|
1181.003 |
638.958 |
360.700 |
|
Net Current Assets |
1099.699 |
973.684 |
829.537 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
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TOTAL
|
2511.535 |
2170.834 |
2039.715 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
4033.714 |
2498.979 |
1811.720 |
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|
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|
Profit/(Loss) Before Tax
|
373.464 |
135.811 |
11.519 |
Provision for Taxation
|
134.979 |
48.911 |
(2.379) |
Profit/(Loss) After Tax
|
238.485 |
86.900 |
13.898 |
|
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|
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Export Value
|
310.520 |
145.750 |
110.800 |
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Import Value
|
1421.760 |
865.240 |
484.470 |
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Total Expenditure
|
3660.249 |
2363.168 |
1800.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales Turnover |
1244.200 |
1320.200 |
1462.600 |
|
Other Income |
27.300 |
20.000 |
17.800 |
|
Total Income |
1271.500 |
1340.200 |
1480.400 |
|
Total Expenditure |
1085.800 |
1098.700 |
1279.100 |
|
Operating Profit |
185.700 |
241.500 |
201.300 |
|
Interest |
5.200 |
7.000 |
7.400 |
|
Gross Profit |
180.500 |
234.500 |
193.900 |
|
Depreciation |
36.100 |
40.700 |
43.700 |
|
Tax |
53.400 |
63.000 |
52.900 |
|
Reported PAT |
94.200 |
127.100 |
96.800 |
200606
Quarter 1
Notes
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (48.77) million Consumption of Raw Materials Rs 842.30
million Staff Cost Rs 77.55 million Other Expenditure Rs 214.71 million Tax
Includes Provision for Current - Income Tax Rs 51.00 million Deferred Tax Rs
(3.16) million Fringe Benefit Tax Rs 0.58 million Provision for Income Tax -
Earlier Year Rs 1.84 million Status of Investor Complaints for the quarter
ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 07 Complaints disposed off during the
quarter 07 Complaints unresolved at the end of the quarter Nil 1. In accordance
with the provisions of Accounting Standard 17, the Company has one reportable
segment consisting of Lead Acid Storage Batteries. 2. Previous year figures
were re-grouped / re-classified to conform to current year figures. 3. The
above Unaudited Financial Results were approved and taken on record by the
Board of Directors at its meeting held on July 27, 2006, after review thereof
by the Audit Committee.
200609
Quarter 2
Notes
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (102.78) million Consumption of Raw Materials Rs 878.83
million Staff Cost Rs 65.06 million Other Expenditure Rs 257.61 million Tax
Includes Provision for Current - Income Tax Rs 62.31 million Deferred Tax Rs
3.69 million Fringe Benefit Tax Rs 0.72 million Status of Investor Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter Nil Complaints disposed
off during the quarter Nil Complaints unresolved at the end of the quarter Nil
1. As the Company's business activity falls within a signal primary business
segment, viz 'Lead Acid Storage Batteries', the disclosure requirement of
Accounting Standard-17. 'Segment Reporting', issued by the Institute of
Charered Accounts of India are not applicable. 2. Previous periods figures have
been re-grouped / re-arranged wherever necessary. 3. The aforementioned Results
were reviewed by the Audit Committee of the Board and subsequently taken on
record by the Board of Directors at its meeting held on October 26, 2006.
200612
Quarter 3
Notes
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (13.66) million Consumption of Raw Materials Rs 966.66
million Staff Cost Rs 65.33 million Other Expenditure Rs 260.80 million Tax
Includes Provision for Current - Income Tax Rs 51.80 million Deferred Tax Rs
0.48 million Fringe Benefit Tax Rs 1.09 million Status of Investor Complaints
for the quarter ended December 31, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 14 Complaints disposed
off during the quarter 14 Complaints unresolved at the end of the quarter Nil
1. As the Company's business activity falls within a single primary business
segment, viz Lead Acid Storage Batteries, the disclosure requirement of
Accounting Standard-17. Segment Reporting, issued by the Institute of Chartered
Accountants of India are not applicable. 2. Previous periods figures have been
re-grouped / re-arranged wherever necessary. 3. The aforementioned Results were
reviewed by the Audit Committee of the Board and subsequently taken on record
by the Board of Directors at its meeting held on January 30, 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.16 |
0.11 |
0.07 |
|
Long Term
Debt Equity Ratio |
0.10 |
0.07 |
0.05 |
|
Current
Ratio |
1.68 |
1.99 |
1.91 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.49 |
1.65 |
1.29 |
|
Inventory
|
8.80 |
7.18 |
6.65 |
|
Debtors |
5.92 |
4.79 |
4.31 |
|
Interest
Cover Ratio |
28.85 |
97.93 |
7.33 |
|
Operating
Profit Margin (%) |
11.97 |
10.18 |
6.82 |
|
Profit
Before Interest and Tax Margin (%) |
8.67 |
5.11 |
0.66 |
|
Cash
Profit Margin (%) |
8.64 |
8.31 |
6.85 |
|
Adjusted
Net Profit Margin (%) |
5.35 |
3.24 |
0.70 |
|
Return on
Capital Employed (%) |
17.45 |
6.97 |
0.73 |
|
Return on
Net Worth (%) |
12.48 |
4.89 |
0.79 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 414.95 |
|
Low |
Rs. 405.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 13th February 1985 at
Tirupati in Andhra Pradesh having Company Registration No. 15305.
Mr. Ramchandra Galla promoted
subject in 1985 as a private limited company. It went public in 1991 and
commenced the manufacture of Valve Regulated Lead Acid batteries for the first
time in
It was promoted by R N Galla, an NRI and A Galla and
associates to set up a plant for the manufacture of sealed maintenance-free
lead-acid stationary batteries for industrial applications with an installed
capacity of 0.100 million per annum. To
part-finance this project, the company went public in January, 1991.
The company entered into a technical collaboration with
In 1996-97, it received the ISO 9001 certification from
RWTUV,
The company has branched out to the automotive battery segment with its Amaron
brand. It is sourcing technology for Amaron from its partner, Johnson Controls
Inc, which holds 26% equity stake in Amara Raja Batteries.
The company has plans to increase its presence in the south
Asian region and has set up a new plant in Tirupathi. The first phase of
expansion, on which Rs. 450 millions have been spent, is now almost over and
the second phase is expected to be completed by 2005.
To better exploit the opportunity in the UPS segment, the
company has planned up gradation of the Kombat monobloc range and a further
expansion of the product range to cater to the entire range of mid-size UPS
equipment.
During 2001-02 the company introduced Genpro and Brute range
of VRLA Batteries for DG set starting and Traction Applications.
DIVIDEND
The directors have pleasure in recommending a dividend of
Rs. 2.50 per equity share for the financial year ended 31st March
2OO6. The dividend will absorb a sum of Rs. 32.46 million inclusive of tax on
dividend.
RESULTS OF OPERATIONS
The year witnessed a 66% growth in gross sales over the
previous year. Gross Sales for the year was Rs. 4458 mm as against Rs. 2685 mm in the previous year. Profit before tax
for the year was Rs. 373.46 mm as against Rs. 135.81 mm in the previous year.
Industrial battery volumes grew 73% and Automotive battery
volumes grew 72% over the previous year.
INDUSTRIAL BATTERIES - DOMESTIC
The Indian Telecom Industry continued its robust growth with
teledensity increasing to 12.87% and gross subscribers aggregating to about 140
mm by end March 2006 as against 9% and 1OO mm subscribers in the previous year.
The growth has primarily been in the mobile subscriber base while fixed line
grew marginally.
Demand for VRLA batteries kept pace with the growth witnessed
in the sector, from Private and Public sector telecom companies as well as
switch manufacturers and network aggregators.
With the recent initiatives of the Government for expansion
of network and addition of new trains and sectors, they expect volumes to be
stable in the medium term.
Quanta UPS batteries volume witnessed a 24% growth over the
previous year. This was the result of expansion of the UPS channel and new
marketing initiatives for promoting the Quanta brand. The company increased its
share of business with existing customers and continued to add new customers to
its list.
AUTOMOTIVE BATTERIES - DOMESTIC
The domestic Automotive battery volumes grew 70%
over the previous year. OE volumes grew 61% and After market volumes grew
76%.
The company commenced supplies to Hyundai Motor India Limited in the current
year. As the country's second largest passenger car manufacturer, this has been
a very significant addition to the expanding list of DE customers. In less than
one year of commencing its relationship with Maruti, the company was retained
as exclusive supplier to Maruti's prestigious 'Swift'. The company also entered
into an exclusive supplier relationship for Tata Motors' 'Ace'. The company
increased its share of business with existing OE accounts.
The aftermarket product suite was expanded in the previous financial year. This
coupled with the continued investment in the Amaron brand and network expansion
resulted in volumes growing 76% over the previous year. As at the end of year,
the company had more than 125 franchisees and over 12000 active retailers.
Brand recall witnessed an increase owing to visibility campaigns, on-the-ground
schemes and penetrative advertising in the media.
Encouraged by the success in the previous year, the company has enhanced its
Amaragaon programme where it works with a recognized NGO for promoting internet
information kiosks in remote and far flung villages. These kiosks serve to
bridge the digital divide by providing information to the community surrounding
them including the farmer, student and business community.
The company's team stepped up efforts under its Hi-Way relationship programme
where it works with fleet operators for maintenance of vehicle electricals
including batteries. This has helped build and strengthen relationships with a
number of trucking fleets.
EXPORTS
Automotive Export volumes grew 83% over the previous year. During 2005-06, the company
exported its Automotive batteries to Japan,
PROFITABILITY
Gross Sales for 2005-06 was Rs. 4458 mm as against Rs. 2685 mm in the previous
year, representing a growth of 66%. Profit before tax was Rs. 373.46 mm as
against Rs. 135.81 mm in the previous year. Profit After Tax for the year was
Rs 238.47 mm as against Rs 86.90 mm in the previous year. The higher top line
aggregation and the consequent absorption of overheads have resulted in the
significant increase in profits and profitability. As mentioned earlier, the company
continues to improve operational efficiency and has set focused efforts in
controlling costs.
FUTURE OUTLOOK
The company is witnessing strong demand for its
products - both in Industrial and Automotive segments. To keep up with the
demand it has been increasing capacity as well. In the medium term the company
is targeting aggressive growth rates and is putting in place strategies and
plans to support such growth.
Key drivers for growth in the Industrial battery business would be the
continued demand from the telecom sector and the growing UPS segment. The power
control business which holds good growth potential is a focus area. The company
is designing and developing products, which would help address, the
requirements of these sectors and maintain its leading position in the
Industry.
In Automotive battery business, increased share of business in existing OE
accounts and acquisition of new platforms and OE accounts should help maintain
the momentum of growth in the OE Segment. The growth in After Market business
is expected to continue riding on the back of increased brand recall and
continued penetration and expansion of the sales and service network. Amaron
today is the second largest After Market brand in
The company would continue its thrust in Automotive and Industrial battery
exports. Export volumes would play a strategic role in the volume and top line
aggregation of the company.
The company
is in trade terms with :
v Krishnaswani Chemicals
v Krishwin Pure Acids
v Naths Acids
Subject is
engaged in manufacturing of VRLA (Industrial Batteries) and SLI (Auto
Batteries).
Subject is a leading manufacturer of industrial and
automotive batteries in
The company
has technical collaboration with Johnson Controls Inc.,
New markets
are also being developed in
It is the pioneer and market leader in VRLA batteries and
commands more than 60% market share in the segment. The company has technical collaboration with
GNB Technologies,
The company is also exploring new application areas such as
security services, genset starting, motive power and solar energy.
The company is also planning to focus on increasing exports
of both automotive and industrial products as with increased capacities for
manufacture products that meet global standards and a competitive cost
structure.
The company's fixed assets of important value include Land
& Land Development, Buildings, Plant & Machinery, R & D Plant &
Machinery, Electrical Installations, Furniture, Office Equipment and Vehicles.
WEBSITE DETAILS
Subject is the largest manufacturer of Standby
Valve Regulated Lead Acid (VRLA) batteries in the Indian Ocean Rim comprising
the area ranging from Africa and the Middle East to
Subject is in a strategic partnership with Johnson Controls Inc.,
Subject is the largest suppliers of stand-by power systems, catering to Indian
utilities such as, Departments of Telecommunication, Indian Railways, Power
Generation Stations, MTNL, VSNL, ITI and HTL. The company has preferential
status with most MNC-OEMs such as ABB, Alcatel, Ericsson, Fujitsu, Lucent,
Motorola, Nokia, Tata Liebert and Siemens.
Subject has prestigious Automotive OE clients including Ford, GM, Daimler
Chrysler, Ashok Leyland, TELCO, and Mahindra & Mahindra. Amara Raja has a
replacement Battery Brand Amaron hi-life. ARBL has a capacity for manufacture
of around 1,000,000 units at its facility at Tirupati with an investment of US
$ 10.00 million.
A
This Zero maintenance product incorporates the latest technological advances in
the field and is on par with batteries manufactured and marketed in developed
countries. A fully charged, factory-activated battery, provides extra high
starting performance and power at any temperature. The Power System Division is
an important supplier of SMR based power plants to Telecom Industry.
The key customers being the Telecom switching Equipment Manufacturers. As the
company saw a growing business proposition in the integrated power supply, the
production capacities of the same have been augmented. IPS using SMPS
technology, for usage in Railways has been added into the product basket.
They also design custom-built power electronics products like Industrial
Battery Chargers, Charge Discharge Circuits, Formation Chargers, AC/DC
distribution boards etc. Progressive conformance of Amara Raja to changing
global standards and processes made it achieve ISO 9001 and the QS 9000
Certification.
ISO 9001,QS 9000;Confederation of Indian
Industry.;Electrical Components & Accessories
News
Release :
Amara Raja Batteries launches first Power Zone
at Chitoor
Will
be a one stop shop for power solutions for rural and semi urban markets
Chennai, May 30, 2007 - Beyond the metros and
large cities, the retail consumer is more acutely in need of power solutions
and is a frequent buyer of automotive and power related products, whether it is
to run his tractor, power his home or his shop. Frequent power cuts add
to this quest for alternative power solutions. However, the consumer
wants a product which he can afford and hence finds many of the products
designed for the city consumer out of his reach. Whether it is a tractor
battery or an inverter, he ends up buying a locally available, non-standardized
product, which is a poor substitute, both in terms of performance and
service.
First Powerzone at Madanappali, AP
Amara Raja Batteries, the technology leader in industrial and automotive
batteries in
Mr. Ramachandra Galla, Chairman, Amara Raja Batteries Limited, today
inaugurated the first Powerzone store at Madanappali. The local business
partner is Mr.G.Rajasekar, Sri Jayam Power solutions
This is the second store launched in the series of the Powerzone chain.
With colourful display and world class products in a minimum area of 350 square
feet, Powerzone is a concept which will bridge the urban-rural divide in
product offerings and customer experience. It translates into customer
comfort in 4 critical areas – One, the shopping experience, two, the price
point, three, the comfort of buying a standardized product backed with the
best-in-class technology and most importantly the comfort of access to
reliable, after sales service network across the country.
All the Powerzone stores will be connected
through an information backbone to the central hub, for efficient planning,
management and stocking.
Commenting on the concept, Mr. Jayadev Galla
said, “The consumer in the rural markets is today treated like a poor country
cousin to the urban consumer. He settles for the substandard local offerings
because he does not have access to the top end products at a price he can
afford. At Amara Raja, they have technology and expertise in batteries and
inverters and Powerzone is the innovative concept that brings technology at the
right price for the rural consumers.”
“Their target is to have at least one Powerzone
outlet in every Taluk Head quarters in
About 40 Powerzone stores will be opened in AP
by end of December 2007. Going ahead, Powerzone will also offer other power
related products, which will be sourced from reputed international sources.
50 Powerzone stores to be opened in one month
across
“50 Powerzone stores will be opened in May 07
across the South, North and
Amara Raja Batteries launches a pan
Will be a one stop shop for power solutions for
rural and semi urban markets
First
Powerzone at Chengalpattu
Chennai, May 7, 2007 - Industrial and
Automotive Battery major, Amara Raja Batteries, has launched a new retail store
format – Powerzone- to cater to the growing need for better technology and
better service at affordable price in the rural markets. The first Powerzone
store was inaugurated today at Chengalpattu, in Tamil Nadu by Mr. Jayadev
Galla, Managing Director, Amara Raja Batteries Limited. The local business
partner is Mr. Yegnaraman, M/s.Motor Plazaa.
Powerzone will offer top quality automotive and power related products for the
rural households and shops. It is a one stop shop offering a platter of
products of global quality at local prices, right from automotive batteries,
tractor batteries and home UPS, from the House of Amara Raja. The Company will
be leveraging its expertise in lean management techniques, efficient network
building and product innovation to bring in the economies for this venture.
Inaugurating the store, Mr. Jay Galla said, “The consumer in the rural markets
is today a poor cousin to the urban consumer. He settles for the substandard,
local offerings because of the higher price points. At Amara Raja, they have
technology and expertise in batteries and inverters and Powerzone is the
innovative concept that brings technology at the right price for the rural
consumers.”
“Their target is to have at least one Powerzone outlet in every Taluk Head
quarters in
50 Powerzone stores to be opened in one month
50 Powerzone stores will be opened in May 07 across the South, North and
Beyond the metros and large cities, the retail consumer is more acutely in need
of power solutions and is a frequent buyer of automotive and power related
products, whether it is to run his tractor, power his home or his shop.
Frequent power cuts add to this quest for alternative power solutions.
“With colourful display and
world class products in a minimum area of 250 square feet, Powerzone is a
concept which will bridge the urban-rural divide in product offerings and
customer experience. It translates into customer comfort in 4 critical areas –
One, the shopping experience, two, the price point, three, the comfort of
buying a standardized product backed with the best-in-class technology and most
importantly the comfort of access to reliable, after sales service network
across the country,” elaborated, Mr. G Indeevar, Head, Automotive –
Aftermarket, ARBL.
Some of the statements
in this news release that are not historical facts are forward-looking
statements. These forward-looking statements include their financial and growth
projections as well as statements concerning their plans, strategies,
intentions and beliefs concerning their business and the markets in which they
operate. These statements are based on information currently available to us,
and they assume no obligation to update these statements as circumstances
change. There are risks and uncertainties that could cause actual events to
differ materially from these forward-looking statements. These risks include,
but are not limited to, the level of market demand for their products, the
highly-competitive market for the types of products that they offer, market
conditions that could cause their customers to reduce their spending for their
products, their ability to create, acquire and build new businesses and to grow
their existing businesses, their ability to attract and retain qualified
personnel, currency fluctuations and market conditions in India and elsewhere
around the world, and other risks not specifically mentioned herein but
those that are common to industry.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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. 40.97 |
|
|
1 |
Rs. 80.73 |
|
Euro |
1 |
Rs. 54.56 |
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 |