MIRA
INFORM REPORT
|
Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA
BIRLA NUVO LIMITED |
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Formerly Known As : |
INDIAN
RAYON & INDUSTRIES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.09.1956 |
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Com. Reg. No.: |
04-1107 |
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CIN No.: [Company Identification No.] |
L17199GJ1982PLC001107 |
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TAN No.: [Tax Deduction & Collection Account No.] |
BRD100317C |
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PAN No.: [Permanent Account No.] |
AAACI1747H |
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Legal Form : |
Subject is a Public Limited Liability
Company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Viscose Filament Yarn,
Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium Sulphide, Yarn, Cloth,
Reinforced Rubberlined Hosepipes, other Hosepipes, High & Low Tension
Insulators & Bushings, Portland Black and Liquid Argon. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
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
88000000 |
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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 of Aditya
V. Birla Group. It is a multi-product,
multi-locations and well diversified company with interests in business that
range across rayon filament yarn, textile, cement, carbon black, insulators
and argon gas. Available information indicates high financial
responsibility of the company.
Fundamentals are strong and healthy. Their trade relations are
fair. Payments are usually correct and
as per commitments. The company can be considered good for any normal
business dealings at usual trade terms and conditions. The company can be regarded as a promising
business partner in a long run. |
LOCATIONS
|
Registered
Office : |
Indian Rayon Compound, |
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Tel.
No.: |
91-2876-245711/245735/245758 |
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Fax
No.: |
91-2876-243220 |
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E-Mail
: |
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Website
: |
2. http://www.adityabirla.com |
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Head
Office : |
91 Sakhar Bhawan, 9th Floor, 230
Nariman Point, Mumbai – 400 021, |
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Tel.
No.: |
91-22-2204 5004 |
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Fax
No.: |
91-22-2204 3686 |
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E-Mail
: |
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Factory
1 : |
Garments Division: Madura Garments 110, 4th Cross, 5th Block, Koramangala Industrial
Layout, Koramangala Tel: 91-80-56915000 Fax: 91-80-56915050 Rayon and Caustic Soda Plants: Indian Rayon Division Veraval 362 266, Tel: 91-2876-245711 Fax. 91-2876-243220 E-mail: irilveraval@adityabirla.com Carbon Black Plants: Hi-Tech Carbon Murdhwa Industrial Area, P. O.
Renukoot 231 217, District Sonbhadra, Uttar Pradesh Tel: 91-5446-252387 to 391 Fax: 91-5446-252502 / 252858 E-mail: hitechr@adityabirla.com
Argon Gas Plant: Rajashree Gases IGFL Complex, P. O. Jagdishpur
Industrial Area - 227 817, District Sultanpur, Uttar Pradesh Tel: 91-5361-270032 to 38 Fax: 91-5361-270595 / 270165 /
270172 E-mail: igfl@adityabirla.com
K-16, Phase II, SIPCOT
Industrial Complex, Gummidipoondi - 601 201 District Tiruvallur - Tamil
Nadu Tel: 91-4119-223233 to 36 Fax: 91-4119-223129/223116 E-mail: htcgmpd@vsnl.com
Website: www.hitechcarbon.com Textile Plants: Jaya Shree Textiles P. O. Prabhasnagar - 712 249,
District Hooghly, Tel: 91-33-26721146 Fax: 91-33-26721683 / 26722626 E-mail: jayashree-iril@adityabirla.com
Rajashree Syntex P. O. Tantigaria, District
Midnapur Paschim, PIN: 721 102, ( Tel: 91-3222-263131 / 275820 /
263964 Fax: 91-3222-275528 E-mail: rajsyntex@adityabirla.com
Other Division: Insulator Division (Domestic
Marketing) P. O. Meghasar Taluka Halol,
District Panchmahal, Tel: 91-2676-221002 Fax: 91-2676-223375 Email:
jsihdom@adityabirla.com
Fertilizer Plant : P.O. Jagdishpur Industrial
Area, District Sultanpur - 227 817, Tel : 91-5361-270032-38 Fax : 91-5361-270165 &
270595 E-mail: igfl@adityabirla.com Financial Services Division Appejay, 2nd Floor, Tel: 91-22-22880660 Fax: 91-22-22881088 E-mail:
bgflcorp@adityabirla.com |
DIRECTORS
|
Name
: |
Mr. Kumar Mangalam Birla |
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Designation
: |
Chairman |
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Name
: |
Mrs. Rajashree Birla |
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Designation
: |
Director |
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Name
: |
Mr. H. J. Vaidya |
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Designation
: |
Director |
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Name
: |
Mr. B. L. Shah |
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Designation
: |
Director |
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Name
: |
Mr. P. Murari |
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Designation
: |
Director |
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Name
: |
Mr. B. R. Gupta |
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Designation
: |
Director |
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Name
: |
Ms. Tarjani Vakil |
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Designation
: |
Director |
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Name
: |
Mr. Vikram Rao |
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Designation
: |
Director |
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Name
: |
Mr. G. P. Gupta |
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Designation
: |
Director |
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Name
: |
Mr. S. C. Bhargava |
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Designation
: |
Director |
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Name
: |
Mr.
Sanjeev Aga |
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Designation
: |
Managing
Director |
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Name
: |
Mr.
S. K. Mitra |
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Designation
: |
Whole
Time Director |
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Name
: |
Mr.
Rakesh Jain |
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Designation
: |
Whole
Time Director |
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Name
: |
Mr.
K. K. Maheshwari |
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Designation
: |
Whole
Time Director |
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Name
: |
Mr.
Adesh Gupta |
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Designation
: |
Whole
Time Director & Chief Financial Officer |
KEY EXECUTIVES
|
Name
: |
Mr. Devendra Bhandari |
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Designation
: |
Company Secretary |
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EXECUTIVES RAYON DIVISION |
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Mr.
K. K. Maheshwari |
Group Executive President |
|
Mr.
K. C. Jhanwar |
Executive
President |
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Mr.
S. S. Gupta |
Joint President |
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Mr.
D. P. Modani |
Senior Vice President [Finance & Comm.] |
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Mr.
S. K. Nanda |
Senior
Vice President [Caustic] |
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Mr.
J. P. Pandey |
Senior Vice President [Production] |
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Mr.
K. D. Joshi |
Senior Vice President [Marketing] |
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Mr.
R. C. Maheshwari |
Senior
Vice President [HR] |
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HI
– TECH CARBON |
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Mr.
Rakesh Jain |
Business Head |
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Mr.
S. S. Rathi |
Executive President |
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Mr.
G. S. Mishra |
Joint President [Renukoot Unit] |
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Mr.
R. K. Dad |
Senior Vice President [Chennai Unit] |
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TEXTILE |
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Mr.
Vikram Rao |
Business Director |
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Mr.
J. C. Soni |
President |
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Mr.
J. Shroff |
Senior Vice President |
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Mr.
S. K. Patodia |
Senior Vice President |
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Mr.
A. Nair |
Senior Vice
|
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Mr.
B. D. Daga |
Senior Vice President |
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MADURA
GARMENTS |
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Mr.
Vikram Rao |
Business Director |
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Mr.
Hemchandra Javeri |
President |
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Mr.
P. Kar |
Chief Operating Officer |
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Mr.
Shoaib Farooqi |
Senior
Vice President [Sales & Marketing] |
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INSULATOR DIVISION DOMESTIC
MARKETING |
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Mr.
Jayant Dua |
Executive
President |
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INDO GULF FERTILISERS |
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Mr.
Sanjeev Aga |
Business
Director |
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Mr.
S. K. Jain |
Senior
President |
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Mr.
R. K. Malhotra |
Joint
President [Fin. & Comm.] |
|
Mr.
C. K. Dutta |
Joint
President [Manufacturing] |
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Mr.
J. R. Mohan |
Senior
Vice President [HRD & Personnel] |
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Mr.
S. Sharma |
Senior
Vice President [Marketing] |
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CORPORATE FINANCE DIVISION |
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Mr.
Manoj Kedia |
Joint President |
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Ms.
Pinky Mehta |
Senior
Vice President [Taxation] |
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Mr.
Anil Rustogi |
Senior
Vice President – Corporate Finance |
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FINANCIAL SERVICES DIVISION |
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|
Mr.
S. K. Mitra |
Director
[Financial Services] |
|
Mr.
Sushil Agarwal |
Chief
Operating Officer |
|
Mr.
Ravi Bubna |
Senior
Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters/Persons acting in concert |
17155739 |
28.64 |
|
UTI and other mutual funds |
6242489 |
10.42 |
|
Banks, Financial Institutions and Insurance Companies |
9394482 |
15.69 |
|
FIIs |
8966170 |
14.97 |
|
NRIs / OCBs |
855261 |
1.43 |
|
GDRs |
3207006 |
5.35 |
|
Other Corporate |
1599950 |
2.67 |
|
Individuals |
12468815 |
20.83 |
|
Total |
59889912 |
100.00 |
As
on 30.06.2006
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter and Promoter Group |
|
|
|
Individuals
/ Hindu undivided family |
107724 |
0.15 |
|
Bodies
Corporate |
25493434 |
35.64 |
|
Institutions |
|
|
|
Mutual
Funds / UTI |
7429968 |
10.39 |
|
Financial
Institutions / banks |
7498779 |
10.48 |
|
Insurance
Companies |
3041860 |
4.25 |
|
Foreign
Institutional Investors |
10316107 |
14.42 |
|
Foreign
Banks |
6317 |
0.01 |
|
Non - Institutions |
|
|
|
Bodies
Corporate |
2214346 |
3.10 |
|
Individual
shareholders holding nominal share capital up to Rs. 0.100 million |
13001216 |
18.18 |
|
Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million |
1131220 |
1.58 |
|
Non
Resident |
1259182 |
1.76 |
|
OCBs |
20917 |
0.03 |
|
Total |
71521070 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Viscose Filament
Yarn, Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium Sulphide, Yarn,
Cloth, Reinforced Rubberlined Hosepipes, other Hosepipes, High & Low
Tension Insulators & Bushings, Portland Black and Liquid Argon. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Garments |
Nos/000 |
N.A. |
10942.01 |
|
Viscose Filament Rayon Yarn |
MT |
16000 |
17233.00 |
|
Sulphuric Acid & Allied Chemicals |
MT |
55300 |
54243.00 |
|
Caustic Soda |
MT |
58400 |
57051.00 |
|
Chlorine |
MT |
49640 |
48750.00 |
|
Hydro Chloric Acid |
MT |
11155 |
5753.00 |
|
Spun Yarn |
Spd/MT |
79592
|
19190.29 |
|
Cloth |
Lm/’000mtr |
62 |
4646.09 |
|
Carbon Black |
MT |
170000 |
175080.00 |
|
High and Low Tension Insulators and Bushings $ |
MT |
N.A. |
16245.00 |
|
Lightning
and Surge Arrestors $ |
Nos |
N.A. |
N.A. |
|
Liquid
Argon |
‘000 SM3 |
3000 |
2000.13 |
|
Urea |
MT |
N.A. |
575646.00 |
|
Pesticides |
-- |
N.A. |
47760.00 |
GENERAL INFORMATION
|
No. of Employees : |
1,700 |
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Bankers : |
Ø State
Bank of Ø Corporation
Bank Ø Standard
Chartered Grindlays Bank Limited Ø United
Bank of Ø UCO
Bank Ø Canara
Bank Ø Punjab
National Bank Ø Bank
of Ø HDFC
Bank Limited Ø Citibank
NIA. Ø American
Express Bank Limited Ø Central
Bank of Ø The
Hongkong & Shanghai Banking Corporation Limited Ø Allahabad
Bank Ø State
Bank of Saurashtra |
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Facilities
: |
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Banking
Relations : |
Good |
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Auditors : |
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|
Name
: |
Khimji
Kunverji & Company Chartered
Accountants, Mumbai,
S. R.
Batliboi & Company Chartered
Accountants, Mumbai,
Branch Auditors
K. S. Aiyar & Company Chartered Accountants, Mumbai, Deloittee Haskins & Sells Chartered Accountants, Clark, Gardner, Wolf & Company Chartered Accountants Mumbai, |
|
|
|
|
Joint
Venture : |
¯ Birla
Sun Life Insurance Company Limited ¯
Birla Sun Life Distribution Company Limited ¯
Birla Sun Life Trustee Company Private Limited ¯ PSI
Data Systems Limited ¯ Birla
NGK Insulators Private Limited ¯ Idea
Cellular Limited ¯
Birla Sun Life Asset Management Company Limited |
|
|
|
|
Associates: |
¯ Indo
Gulf Corporation Limited ¯
Crafted Clothing Private Limited (CCPL) ¯
English Apparels Private Limited (EAPL) ¯
Harwood Garments Private Limited (HGPL) ¯
Birla Securities Limited (BSL) ¯ Mangalore
Refinery & Petrochemicals Limited ¯ Birla
AT&T Communications Limited ¯ Bina
Power Supply Company Limited ¯ Rosa
Power Supply Company Limited ¯
Birla Sun Life Asset Management Company Limited ¯ Idea
Cellular Limited ¯ Birla
NGK Insulators Limited ¯ Grasim
Industries Limited ¯ Hindalco
Industries Limited ¯ Indian
Aluminium Company Limited ¯ ¯ Shree
Digvijay Cement Company Limited ¯ Birla
Global Finance Limited ¯ Birla
Sun Life Distribution Company Limited ¯ Birla
Sun Life Trustee Company Limited ¯ HGI
Industries Limited ¯ Tanfac
Industries Limited |
|
|
|
|
Subsidiaries
: |
¯
Aditya Birla Telecom Limited ¯
Madura Garments Exports Limited ¯
Alpha Garments Private Limited ¯ Aditya
Vikram Global Trading House Limited ¯ Laxminarayan
Investment Limited ¯ Transworks
Information Services Limited ¯ Birla
Global Asset Finance Company Limited ¯ PSI
Data Systems Limited ¯ Birla
Technologies Limited ¯ Birla
Sun Life Insurance Company Limited ¯ Birla
Insurance Advisory Services Limited ¯ Transworks
IT Services ( ¯ Transworks
Inc., ¯ Rajnidhi
Finance Limited ¯ BGFL
Corporate Finance Private Limited |
|
|
|
|
Membership
: |
¯
Silk & Rayon Textile Export Promotion Council ¯
Wool & Woollen Export Promotion Council |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
85000000 |
Equity Shares |
Rs.10/-
|
Rs. 850.000 millions |
|
1500000 |
Redeemable Preference Shares |
Rs.100/-
|
Rs. 150.000 millions |
|
|
TOTAL |
|
Rs. 1000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
59889912 |
Equity Shares |
Rs.10/-
|
Rs.598.800
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 |
|
|
|
|
|
1]
Share Capital |
598.900 |
598.800 |
598.800 |
|
|
2] Share
Capital Suspense |
236.100 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
21241.100 |
12941.800 |
12078.000 |
|
NETWORTH
|
22076.100 |
13540.600 |
12676.800 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
10842.100 |
4930.300 |
4058.100 |
|
|
2]
Unsecured Loans |
4793.600 |
0.000 |
0.000 |
|
TOTAL BORROWING
|
15635.700 |
4930.300 |
4058.100 |
|
|
DEFERRED
TAX LIABILITIES |
1677.000 |
1255.200 |
1275.100 |
|
|
|
|
|
|
|
TOTAL
|
39388.800 |
19726.100 |
18010.000 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
10130.700 |
7552.500 |
7127.800 |
|
Capital work-in-progress
|
1224.500 |
550.300 |
246.900 |
|
|
|
|
|
|
|
INVESTMENT
|
16757.900 |
6996.600 |
7416.300 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
5263.300
|
3550.000
|
2769.100 |
|
|
Sundry Debtors
|
4154.400
|
2609.000
|
1864.100 |
|
|
Cash & Bank Balances
|
203.200
|
94.100
|
132.700 |
|
|
Loans & Advances
|
6641.800
|
1038.800
|
935.000 |
Total Current Assets
|
16262.700
|
7291.900 |
5700.900 |
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4247.800
|
2285.800
|
2127.400 |
|
|
Provisions
|
739.200
|
379.400
|
384.000 |
Total Current Liabilities
|
4987.000
|
2665.200 |
2511.400 |
|
Net Current Assets
|
11275.700
|
4626.700 |
3189.500 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
29.500 |
|
|
|
|
|
|
|
TOTAL
|
39388.800 |
19726.100 |
18010.000 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
26654.300 |
18706.900 |
15916.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2717.500 |
1570.800 |
1814.300 |
Provision for Taxation
|
848.200 |
433.600 |
501.500 |
Profit/(Loss) After Tax
|
1869.300 |
1137.200 |
1312.800 |
|
|
|
|
|
Export Value
|
4623.700 |
4473.700 |
3835.300 |
|
|
|
|
|
Import Value
|
7023.800 |
5639.000 |
4678.100 |
|
|
|
|
|
Total Expenditure
|
22778.300 |
16252.700 |
1614.800 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
7831.800 |
8964.900 |
8811.500 |
|
Other
Income |
261.300 |
157.800 |
20.300 |
|
Total
Income |
8093.100 |
9122.700 |
8831.800 |
|
Total
Expenditure |
6537.800 |
7501.900 |
7322.000 |
|
Operating
Profit |
1555.300 |
1620.800 |
1509.800 |
|
Interest |
383.800 |
480.100 |
455.800 |
|
Gross
Profit |
1171.500 |
1140.700 |
1054.000 |
|
Depreciation |
312.300 |
320.300 |
290.700 |
|
Tax |
349.000 |
187.800 |
208.900 |
|
Reported
PAT |
562.800 |
537.300 |
527.100 |
Notes
200606
Quarter 1 –
Expenditure Includes (Increase)/Decrease in stock in Trade Rs
(306.10) million Cost of Raw Material/ Traded Goods Rs 4361.10 million Staff
Cost Rs 470.50 million Other expenditure Rs 2004.60 million Interest Includes
Interest & Finance Expenses Rs 383.80 million Interest Income Rs (98.70)
million Depreciation Indicate Depreciation & Amortisation Extraordinary
Items Indicates VRS Cost at Rayon Division Tax Includes Provision for Current
Tax Rs 341.00 million Deferred Tax Rs (52.60) million Fringe Benefit Tax Rs
8.00 million EPS is Basic 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 08 Complaints disposed off during the quarter 08
Complaints unresolved at the end of the quarter Nil 1. On June 20, 2006, the
Company, along with its wholly owned subsidiary, acquired additional 15% stake
(7.5% each) in Idea Cellular Limited (IDEA), raising their aggregate equity
stake from 20.74% to 35.74%. 2. On June 24, 2006, the Company's wholly owned
subsidiary TransWorks Information Services Limited (TransWorks) entered into
agreement for acquisition of Minacs Worldwide Inc.,
200609
Quarter 2 –
Expenditure Includes (Increase)/Decrease in stock in Trade Rs
113.20 million Cost of Raw Material/ Traded Goods Rs 4610.00 million Staff Cost
Rs 535.30 million Other expenditure Rs 2242.30 million Interest Includes
Interest & Finance Expenses Rs 491.90 million Interest Income Rs (11.80)
million Depreciation Indicate Depreciation & Amortisation Extraordinary
Items Indicates Gain loss on Transfer of business/others Rs 2.00 million VRS
Cost at Rayon Division Rs (1.10) million Tax Includes Provision for Current Tax
Rs 179.00 million Deferred Tax (Net) Rs 95.30 million Fringe Benefit Tax Rs
8.80 million EPS is Basic 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 08 Complaints disposed off during the
quarter 08 Complaints unresolved at the end of the quarter Nil 1. TransWorks
Information Services Limited (TransWorks) the Company's subsidiary has acquired
A V TransWorks Limited in
200612
Quarter 3 –
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (207.20) million Cost of Raw Material/ Traded Goods Rs 4764.00 million Staff
Cost Rs 486.20 million Other expenditure Rs 2273.50 million Interest Includes
Interest & Finance Expenses Rs 566.60 million Interest Income Rs (110.80)
million Depreciation Indicate Depreciation & Amortisation Tax Includes
Provision for Current Tax Rs 289.30 million Deferred Tax Rs 27.30 million
Fringe Benefit Tax Rs 8.70 million Provision for earlier years written back Rs
(89.10)million EPS is Basic 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 12 Complaints disposed off during the
quarter 12 Complaints unresolved at the end of the quarter Nil 1. The Right
Offer for Issue of 98,26,638 equity shares of Rs 10 each at a premium of Rs 783
per equity share, aggregating to Rs 7792.50 million which closed on January 25,
2007 has been fully subscribed. The allotment of shares will be made in
consultation with Lead Managers and Registrars to the Issue. 2. The Company
along with its subsidiary Laxminarayan Investment Limited has acquired 49%
equity shares in Birla NGK Insulators Private Limited ('Birla NGK') from the
erstwhile joint venture partners and consequently Birla NGK has become a
subsidiary of the Company w.e.f November 29, 2006. The name of Birla NGK has
since been changed to Aditya Birla Insulators Limited The remaining 1% shares
will be bought from the Joint Venture partners in due course. 3. On November
03, 2006 TransWorks Information Services Limited, the subsidiary of the Company
has incorporated a new subsidiary viz TransWorks BPO Philippines Inc,
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.58 |
0.34 |
0.28 |
|
Long Term Debt Equity Ratio |
0.36 |
0.19 |
0.17 |
|
Current Ratio |
1.29 |
1.11 |
1.16 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.43 |
1.45 |
1.35 |
|
Inventory |
6.29 |
6.22 |
6.43 |
|
Debtors |
8.20 |
8.79 |
9.94 |
|
Interest Cover Ratio |
4.96 |
7.85 |
7.69 |
|
Operating Profit Margin (%) |
16.31 |
13.11 |
15.61 |
|
Profit Before Interest and Tax Margin (%) |
12.28 |
9.16 |
10.99 |
|
Cash Profit Margin (%) |
10.78 |
9.74 |
11.54 |
|
Adjusted Net Profit Margin (%) |
6.74 |
5.78 |
6.92 |
|
Return on Capital Employed (%) |
12.11 |
10.24 |
11.89 |
|
Return on Net Worth (%) |
10.57 |
8.68 |
9.52 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.1155.00/- |
|
Low |
Rs.1125.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in 1956,Indian Rayon &
Industries was taken over by Aditya Birla group. After merging Jayshree
Textiles & Industries, the company became a leader-Viscose Filament Yarn,
Carbon Black, Insulators and Branded Apparels - both in
During 1988 Indian Rayon forayed into Carbon Black and Hi Tech Carbon
(Renukoot) went on stream. The company chalked out a modernisation and
expansion of existing equipment at a cost of Rs.2560.000 Millions. It also planned
a new project wherein quality of coloured yarns would be increased. The
estimated cost would be around Rs.3440.000 Millions.
The company is in the process of expanding the Carbon Black division at
Gummidipoondi near Chennai at a capital outlay of Rs.600.000 Millions. On
completion of the project the Carbon Black capacity would be enhanced by 40000
tonnes from the present 110,000 tonne to 150,000 tonne. The company acquired
74.6% equity stake in Indal, from Alcan, at an investment of a little over Rs.10000.000
Millions. It has also acquired Nifty Mines in
In 1998, Indian Rayon's cement business was transferred to Group Company,
Grasim as part of cement business consolidation. Production commenced at Hi
Tech Carbon's second carbon black plant at Gummidipoondi during 1999.
In 1999-2000, the Company exited from the Sea Water Magnesia business. The
Company also made its entry into Readymade Garments business with the
acquisition of Madura Garments, this has brought renowned brands such as Van
Heusen, Louis Phillipe, Allen Solly, Peter England, Byford and San Frisco under
the Company's fold.
The Company's Insurance subsidiary Birla Sunlife Insurance Company commenced
operations in March 2001. The company ventured into Information Technology
Sector by acquiring 70.35% stake in PSI Data Systems of which 50.35% shares
which was held by Groupe Bull, France in PSI Data Systems. The company has
invested around Rs.1003.000 Millions towards the purchase of 70.35% stake in
PSI, which was funded through internal accruals. To further consolidate Birla
Technologies was acquired by PSI Data Systems for a consideration of Rs.113.000
Millions. During 2002-03 the company has divested its stake in MRPL to ONGC for
Rs.2/-per share incurring a one time loss of Rs.571.000 Millions.
The company has transferred its insulator business to a JV company i.e Biral
NGK Insulators Private Limited through a Scheme of Arrangement. The JV Partner
is NGK Industries of Japan. The JV Company has become operational from Feb 6,
2003.
The company has amalgamated Rajnidhi Finance Limited (for which Indian Rayon is
the ultimate holding company) is amalgamated with its parent company
Laxminarayan Investments Limited, a subsidiary of the company w.e.f. April 1,
2003.
The company has forayed into BPO business by acquiring 100% stake in TransWorks
in July 2003. Transwork has expertise in customer care, transaction processing
and financial accounting processing. Transwork has a ready customer base of
several Fortune 500 companies and has centres at Mumbai and
The subsidiaries of Indian Rayon and Industries Limited are Birla Sun Life
Insurance Company Limited, PSI Data Systems Limited, Birla Technologies
Limited, Laxminarayan Investment Limited, Transworks Information Services
Limited, Transworks Inc. USA and Aditya Vikram Global Trading House Limited
Transworks IT Services (
The company has enhanced its installed capacity of Viscose Filament Rayon Yarn
and Carbon black by 1000 MT & 10000 MT respectively. With this expansion
the total installed capacity of Viscose Filament Rayon Yarn and Carbon black
has increased to 16000 MT & 170000 MT respectively.
The company merged Indo Gulf Fertilizers Limited (IGFL) and Birla Global
Finance Limited (BGFL) with itself from September 1st 2005, in the share
entitlement ratio of 1 Equity Share of Rs.10/- each of the company for every 3
Equity Share of Rs.10/-each of IGFL and in the share entitlement ratio of 1
Equity Share of Rs.10/- each of the company for every 3 Equity Share of
Rs.10/-each of BGFL.
The company name was changed from Indian Rayon and Industries Limited to Aditya
Birla Nuvo Limited from October 2005.
The
Schemes of Amalgamation of IGFL (Indo Gulf Fertilizers Limited) and BGFL(Birla
Global Finance Limited) with the Company have been rendered effective from 3rd
April, 2006 and 30th June,2006 respectively. As these Schemes are operative
from 1st September, 2005, the entire business and undertaking of the erstwhile
IGFL and BGFL have been vested in the Company, on a `going concern'
basis.
Consequent to the merger, the Company has allotted 1,50,30,935 equity shares of
Rs. 10/- each to the shareholders of IGFL in the ratio of one equity share of
Rs.10/- each of the Company for every three equity shares of Rs. 10/- each held
by the shareholders of IGFL as on the Record Date, which was the 19th April,
2006.
The Company is in the process of allotment of 85,83,479 equity shares to the
shareholders of BGFL in line with the provisions of the Scheme.
The Company invested Rs.6610 millions in Idea Cellular Limited.(Idea) to
acquire 16.5% stake in September 2005, increasing its holding to 20.74% . The
Company along with its subsidiary has accepted the offer to purchase an
additional 15% equity share of Idea. On conclusion of this deal in June 2006,
the stake of the Company along with its subsidiary has increased to
35.74%.
In Carbon Black, while the Company is pursuing environmental clearance for its
50,000 tpa Brownfield expansion, it is also exploring possibilities to set a
At the Indian Rayon Division, capacity will be expanded by 1000 tons through de-bottlenecking.
The Caustic Soda capacity which went up by 40 TPD to 160 TPD in September'05,
will be further expanded to 200 TPD, on the commissioning of Power Plant in
September 2006. The implementation of Power Plant is in line with the companies
expectations.
To cater to the market needs at Jaya Shree Textiles, a new capacity of 50 looms
of Linen Fabrics and 5000 Spindles of Flax Spinning is proposed.
At Indo Gulf Fertilisers Division, the company propose to increase the capacity
from 0.865 million tons to 1.10 million tons p.a., through
de-bottlenecking.
During the year, Aditya Birla Telcom Limited, Madura Garments Exports Limited,
Alpha Garments Private Limited became subsidiary of the company.
The companies production capacity of Caustic Soda, Chlorine, Spun Yarn and
Cloth expanded from 41975 MT to 58400 MT, 33470 MT to 49640 MT, 77380 Spindles
to 79592 Spindles and 53000 Mtrs to 62000 Mtrs respectively.
1956
The company was incorporated on 26th September,
1956. Formerly the Company was Known as Indian Rayon Corporation Limited. The
company manufactures viscose rayon yarn and fabrics, chemical products,
reinforced rubberlined products, high and low tension insulators and bushings
and Portland Cement.
1958
The Company entered into an agreement with Von
Kohorn International Corporation, Von Kohorn International (
They also agreed to supervise the erection and
installation as well as the
commissioning of the plant. Von Kohorn International Corporation also
agreed to invest jointly with the Financial Development Fund Inc.,
1975
-
Controlled percolation hoses were
manufactured in collaboration with George August & Company, Limited,
-
A collaboration agreement was signed
with Ceram Consult Langenthal, Limited,
1976
-
Jay Shree Textiles & Industries,
Limited was amalgamated with the Company with effect from 1st January.
1977
-
The new synthetic spinning unit,
acquired with the amalgamation of Jay Shree Textiles & Industries, Limited
with the Company, was partially commissioned during the year.
1978
-
Philippines Government gave a license
to the Company to set up a unit in that country for the manufacture of 3,000
tonnes of insulators per annum.
1979
-
The Company received a letter of intent
to set up a new industrial undertaking for the manufacture of 6,000 tonnes per
annum of sophisticated insulators at Halol in
-
The Company executed a technical
collaboration agreement with Doulton Insulators Limited, of
1981
-
The Company issued 10,00,000-12%
secured debentures of Rs 100 each. Out of this, 25,000 debentures were reserved
for subscription by the employees, directors and business associates of the
Company and 4,25,000 debentures were offered to resident equity shareholders in
the proportion of 1 deb.: 10 equity shares. The balance of 5,50,000 debentures
were offered for public subscription during March 1981.
-
During September, the Company offered
for public subscription 5,00,000-13 1/2% Secured debentures of Rs 100 each with
1% additional interest per annum when the dividend on equity shares exceeds 14%
for the immediate preceding year with appropriate adjustment for any future
bonus issue of shares. These debentures are redeemable in 4 equal annual
instalments on the commencement of the 8th, 9th, 10th and 11th years from the
date of allotment of debentures.
-
During September, Vokin Holdings Inc.
1982
-
The Company revalued the assets of all
the units (except Halol Unit) as on 1st July. The net surplus of Rs
28,24,15,415 arising out of this was credited to revaluation reserve.
1983
-
The Company received a letter of intent
to set up a plant to manufacture 80,000 tonnes of white cement per annum.
-
A technical collaboration agreement
with the Onuda Engineering & Consulting Co., Limited, of
-
The Company set up a carbon black plant
at Remikoot in Mirzapur district of Uttar Pradesh with an installed capacity of
20,000 tpa.
1985
-
Veraval Properties Private Limited and
Indrayon Properties Private Limited became the wholly owned subsidiaries of the
Company.
-
The company undertook to set up a
ceramic unit to manufacture 10,000 tonnes per annum of sanitaryware and 12,000
tonnes per annum of wall tiles in Uttar Pradesh.
-
The sanitaryware project was proposed
to be set up in technical collaboration with Villeroy and Boch of the Federal
Republic of West Germany and equipment for the wall tiles project were to be
supplied by SITI of Italy.
-
For the manufacture of sanitarywares
the company was to incorporate the ceramic fibre lined tunnel and shuttle kilns
technology.
-
A technical collaboration with Felten
& Gujillene Energietichnic GmbH,
-
Another collaboration with Asea Brown
Boveri & Co., Limited of
-
As per the terms of the issue, a
portion of Rs 50/- out of each debenture was converted into 1 equity share of
Rs 10 each at a premium of Rs 40/- per share on 30th September, 1987, at the
first stage of conversion. The remaining part of Rs 50/- was converted in the
same manner as on 1st July, 1988.
1987
-
The Company commissioned the expanded
worsted rayon project. Machines like radio frequency drier and auto winding
unit with electronic controls were installed. Fancy doubling machines were also
installed to produce fancy yarn.
-
The working of Cotton Spinning division
was adversely affected due to higher cotton price, rise in power tariffs etc.
To rationalise the product-mix the Company proposed to convert existing
spindles for production of high value added synthetic yarn. Also fancy doubling
machines were to be installed for production of fancy yarns.
-
Production declined due to strike by
workmen for 82 days. By the end of the year, the Company proposed to install
certain balancing equipments including a roller press for raw material
grinding.
-
It was also proposed to install two
additional DG Sets of 5.4 MW each during the year.
-
CE Europe, Luminus Crest division and
Engineers India, Limited were appointed as Consultants for the project.
-
As on 1st July, the fixed assets of the
Company (except the recently set up white cement and a carbon black units) were
revalued and the net surplus of
Rs. 755.50 millions arising out
of it was credited to the Revaluation reserve.
-
The name of the Company was changed from The
Indian Rayon Corporation, Limited to Indian Rayon and Industries Limited with
effect from 23rd January.
1988
-
Two 1950 KVA power generating sets were
commissioned during the year.
-
The working of cotton spinning division
continued to be affected due to high prices of cotton. To ensure its
competitive edge over others, the division was upgrading its technology by
adding latest machines such as Savio auto-coners. Two-for-one twisters, etc.
-
A new kiln was commissioned at Halol to
meet the growing demand for the company's product range.
1989
-
Necessary balancing equipment was being
installed for producing finer denier yarn in view of the increasing demand.
-
Operating results of the flax division
were however adversely affected by the steep hike in the cost of major inputs
coupled with sharp deterioration in the supply of power. One more diesel
generating set of 1000 KVA was being installed.
-
Additional 2,592 spindles and other
balancing equipment were installed to improve flexibility in product-mix and
meet the changing demand patterns.
-
The Company proposed to expand the
capacity to 9 million TPA from 3 million TPA received Government approval.
-
The foreign collaboration agreement
with AKZO Fibres & Polymers - Enka International b. v. of
-
The Company is a co-promoters of the
Bina Power Supply Company, Limited, & Rosa Power Supply Company, Limited,
to be set up as two separate joint ventures with Powergen of U.K. Bina Power
Supply Company Limited was to be set up at Madhya Pradesh and Rosa Power Supply
Co., Limited at Uttar Pradesh.
-
The Birla Capital International AMC
Limited was set up as an asset management Company jointly with Capital Group
International,
-
Birla Telecom Limited was set up in collaboration
with AT & T for bidding for basic telephone services & Birla
Communications Limited with McCaw Cellular Communications Inc., for bidding
cellular mobile services.
1990
-
A superior quality cement under the
brand name `BIRLA SUPER' was introduced, initially, in Karnataka and the market
response was reported to be good.
-
The lightning arrestors project was
commissioned during the year and the unit undertook to execute an order for 400
KV transmission line for the National Thermal Power Corporation.
-
The company undertook a modernisation
programme to improve the quality and enlarge the product range.
1991
-
A fire mishap in the dryer plant in
May, caused disruption in production for a period of ten days. To tide over
power shortage, a DG set of 2270 KVA was installed.
-
The Spinning and Weaving division
undertook to further modernisation apart from expanding its installed capacity
for worsted yarn by 2,400 spindles.
-
The Company proposed to convert the
Halol factory into a manufacturing unit exclusively for exports.
-
All steps were taken to set up a
project for the manufacture of 50,000 tonnes of high purity refractory grade
magnesia from sea water near
-
A collaboration agreement for transfer of
technology with Refractories consulting and Engineering GmbH,
1992
-
A diesel generating set of 2270 KVA was
commissioned. The Company undertook further investments in installation of
balancing equipment as well as equipment for upgradation of quality.
-
Two additional CS2 furnaces were
commissioned to increase the carbon-di-sulphide capacity from 6000 TPA to
10,000 TPA. It was proposed to install 10 contravan spinning machines at an
estimated cost of Rs 360 millions.
-
The installed capacity of worsted yarn
was increased by 1200 spindles. Capacity was being further increased through
installation of 24 sophisticated looms.
-
It was proposed to implement
modernisation programme involving a capital outlay of Rs. 60 millions
-
However, Government permitted to expand
the capacity to 40,000 tpa and the Company was obtaining necessary clearances
for the import of capital goods.
1994
-
The working in the Rishra Insulator
plant suffered loss on account of a five months strike.
-
Work was underway to increase the
capacity of Halol plant from 6,000 TPA to 10,000 TPA and subsequent to which
combined capacity of the two plants would be 30,000 TPA.
-
The Cement grinding and packing
facilities of new plant of 1.2 million tonnes capacity at the existing location
was commissioned and the remaining sections were to be commissioned by June
1995.
-
The split grinding unit of 1.2 million
tonnes capacity being set up at
-
The Company proposed to set up a 400
TPA capacity fibre glass plant at an estimated capital outlay of Rs. 1090
millions to be located in the Alwar district of Rajasthan.
1995
-
The division undertook to set up 8
continuous spinning machines on parallel yarn at an estimated cost of Rs. 360
millions.
-
The working of the Cotton Spinning
Division was affected by strike between mid February 1996 to mid May 1996. This
in turn affected the modernisation work also.
-
The Halol Unit had undertaken
substantial expansion and two new kilns were set up. Negotiations were on with
Overseas companies manufacturing lighting arrestors in
-
1-2 million TPA capacity raw material
grinding and clinkerisation unit was commissioned at Malkhed, Karnataka. Also,
a 1-2 million TPA capacity grinding unit was commissioned.
-
9,085 shares allotted.
1996
-
A 16.5 MW Co-generation thermal plant
was being set up. An additional 12 MW captive power plant was to be set up as
an extension to 16.5 MW plant at a cost of Rs. 400 millions.
-
The Company proposed to add 8
continuous spinning machines on parallel yarn at an estimated cost of Rs. 400
millions.
-
The sluggish market conditions and
strike at the Cotton Spinning Division plant between mid February 1996 to mid
May 1996 affected the flax division's working.
-
Performance of the division was
affected due to labour trouble at Rishra plants and sluggish market conditions.
-
The Company proposed to install a new
carbon black plant of 35,000 tonnes capacity at Gummidipondi, Chennai.
1997
-
The Company proposed to set up a second
power plant of 15 MW capacity, at a cost of Rs 700.00 millions to ensure
complete self-sufficiency of stable and uninterrupted power to VFY and caustic
soda plants.
-
Sea Water Magnesia plant was
commissioned with an installed capacity of 50,000 TPA.
-
The Company had made a bonus issue in
the ratio of 1:2 to the existing shareholders of the Company.
-
Indian Rayon Industries, the Aditya
Birla Group diversified company, has commissioned its 36,000 tpa caustic soda
plant at Veraval in
-
It has singed a Memorandum of
Understanding with the Orissa Mining Corporation for setting up a mega
integrated aluminium complex comprising an alumina refinery of 1 million tonnes
per annum capacity based on the Kadnagamali-Pottangi bauxite deposit in Karaput
district in south Orissa and a greenfield aluminium smelter of 0.25 million
tpa.
-
Indian Rayon & Industries Limited
has proposed to issue bonus shares in the ratio of one share for every two
shares held. Reacting to the news, the Indian Rayon scrip declined by Rs.10,
before closing on Tuesday at Rs.392.75, as the bonus ratio fell short of market
expectations.
-
The company is also setting up a 35,000
tonne carbon black unit to be commissioned in October 1998. It is already the
second largest installed capacity in the industry after Philips Carbon Black's
78,000 tonne.
-
The company is seriously considering a
proposal to issue bonus shares in the proportion of one new equity share for
every two existing equity shares held.
-
The company is an Aditya Birla group
company, is setting up a 25 mw captive hydel power project in
-
The Company, an Aditya Birla Group
company and one of the leading players in its field, has become the first
private sector firm to raise Rs. 400 millions through private placement of
secured redeemable non-convertible debentures at a coupon rate of 14.25 per
cent, payable half yearly for a five years period.
1998
-
Sea Water Magnesia suffered a set back
due to substantial dumping from
-
The Company has commissioned its
Greenfield 35,000 MTPA carbon black plant, set up at an investment of Rs. 1350
millions. With this plant at Gummidipondi, near Chennai, the Aditya Birla group
company's carbon black capacity stands raised to 95,000 MTPA. The plant at
Renukoot (UP) has a manufacturing capacity of 60,000 MTPA.
-
Company has temporarily suspended the
operations of its Sea Water Magnesia plant at
1999
-
The Company is flagship company of the
Aditya Birla group, is yet to find buyer for its sea water magnesia project.
-
The company, which has an installed
capacity of 95,000 tonnes per annum, is "strongly" considering the
option to hike capacity by another 50,000 tonnes.
2000
-
The strike from March 11 by a section
of workmen of the viscose filament rayon plant at Veraval,
-
Company has assigned `LAAA' rating to
the non-convertible debentures aggregating Rs. 500 millions privately placed by
the company with ABN Amro Securities (
-
The Aditya Birla group Company, Indian
Rayon and Industries Limited, will promote an insurance joint venture with 125
year old Sun Life Financial of Canada.
-
The Company has entered into
agreements, with NSDL, CDSL and MCS Limited, for dematerialisation.
2001
-
The shares department of the company
has been accredited with ISO 9002:1994 certification by KPMG.
-
Aditya Birla group flagship Indian
Rayon will acquire a 50.35 per cent controlling stake in PSI Data Systems from
2002
- Company has informed that Mr. Devendra Bhandari
has been appointed as Vice President and Company Secretary of the company in place
of Mr. Mehernosh Kapadia.
Merger of
In a consolidation move to
further enhance shareholder value, the company proposed the merger of Indo Gulf
Fertilisers and Birla Global Finance with itself effective from September 1,
2005.
This is a major step in taking
forward the well-crafted strategy of leveraging value businesses for
accelerated growth. Post-consolidation, Aditya Birla Nuvo will become a more
sizeable player, with a diversified, high growth business engine. The company
has a good record of managing a diverse portfolio with razor sharp focus on
each business. While the merger with
The merger creates a company
that captures opportunities in the evolving Indian economy through leadership
in focused value businesses i.e., carbon black, rayon, textiles and
fertilisers, and driving high growth businesses viz., garments, IT / ITES,
financial services and telecom.
MAJOR ACTIVITIES:
1. Amalgamation of Indo Gulf
Fertilisers Limited and Birla Global Finance Limited with the company Having obtained all the necessary regulatory
approvals, the Schemes of Amalgamation of IGFL and BGFL with the Company have
been rendered effective from 3rd April, 2006 and 30th June,2006 respectively.
As these Schemes are operative
from the Appointed Date, viz. 1st September, 2005, the entire business and
undertaking of the erstwhile IGFL and BGFL have been vested in the Company, on
a 'going concern' basis.
Consequent to the merger, the
Company has allotted 1,50,30,935 equity shares of Rs. 10/- each to the
shareholders of IGFL in the ratio of one equity share of Rs.10/- each of the
Company for every three equity shares of Rs. 10/- each held by the shareholders
of IGFL as on the Record Date, which was the 19th April, 2006.
The Company is in the process of
allotment of 85,83,479 equity shares to the shareholders of BGFL in line with
the provisions of the Scheme.
Accordingly the Balance Sheet
and the Profit & Loss Account of IGFL and BGFL are clubbed with that of the
Company so the figures for the current year are not comparable with the
previous year.
2.
FORAY INTO
TELECOM BUSINESS
The telecom Sector is one of the
fastest growing sectors in
consciously decided to fortify
its presence in the telecom sector.
The Company invested Rs.6610
millions in Idea Cellular Limited(Idea) to acquire 16.5% stake in September
2005, increasing its holding to 20.74%. The Company along with its subsidiary
has accepted the offer to purchase an additional 15% equity share of Idea. On
conclusion of this deal in June 2006, the stake of the Company along with its
subsidiary has increased to 35.74%, indicative of the strong focus the Company
places in this growing sector.
ACQUISITION OF MINACS WORLDWIDE
INC. HY TRANSACTION
As part of its strategy to
emerge as a leading global BPO services provider and expand its global
footprint, Transworks Information Services Limited (Transworks) a Wholly owned
subsidiary of the Company, in June, 2006, has entered into a definitive
agreement with Minacs Worldwide Inc. ( Minacs ), Canada's leading BPO provider,
to acquire Minacs, through its wholly owned subsidiary i.e. A V Transworks
Limited, Canada.
Transworks is proposing to
acquire up to 100% of the shareholding in Minacs on a fully diluted basis
through an open offer at a total outlay of US$125 million (approximately).
Minacs provides customized
business process outsourcing (BPO) solutions focused on 3 core areas; contact
center solutions, integrated marketing services, and back office
administration. With approximately 6,000
FINANCIAL PERFORMANCE
The Company's performance has
been impressive. Its Turnover at Rs. 26420.5 millions is up by 42% as against
Rs.18610 millions in the previous year. The Garments and Textiles business grew
in revenues with a richer product mix, while Carbon Black witnessed volume
growth.
Continuous focus on quality
improvement, raising operational efficiencies and cost optimization across all
the businesses has contributed significantly to the Company's growth.
CHANGE OF NAME OF THE COMPANY
As you are aware, the Company has
been rechristened as "Aditya Birla Nuvo Limited.", to mirror its
transformed character. Likewise, the Rayon Division of the Company has been
renamed as Indian Rayon. With the Fertiliser and Financial Services businesses
becoming a Division of the Company, it was named as Indo Gulf Fertilisers
Division and Financial Services Division respectively.
OPERATIONAL REVIEW
Madura Garments, a division of
the Company, aggressively expanded its retail reach, increasing its retail
space to 0.312 million sq. ft.. This
includes opening of several large format showcase retail showrooms, which will
give a strong footage to Madura Garments in the evolving organized retailing
scenario.
To leverage the potential in the
Garment Export Business (post-WTO), the contract exports business of Madura
Garments is being transferred to Madura Garments Exports Limited, a wholly
owned subsidiary of the Company.
In Carbon Black, while the Company is pursuing
environmental clearance for its 50,000 tpa Brownfield expansion, it is also
exploring possibilities to set a
At the Indian Rayon Division,
capacity will be expanded by 1000 tons through de-bottlenecking. The Caustic
Soda capacity which went up by 40 TPD to 160 TPD in September'05, will be
further expanded to 200 TPD, on the commissioning of Power Plant in September
2006. The implementation of Power Plant is in line with our expectations.
To remain focused on the Linen
Fabric, and to cater to the market needs at Jaya Shree Textiles, a new capacity
of 50 looms of Linen Fabrics and 5000 Spindles of Flax Spinning is on the
anvil.
At Indo Gulf Fertilizers
Division, we intend to increasing the capacity from 0.865 million tons to 1.10
million tons p.a., through de-bottlenecking.
The thrust in the Financial
Services Division would be to tap opportunity from new public offerings, fee
income and low risk fund based income.
FINANCE
The Company has raised long term
Rupee Loan of Rs. 5050 millions and Foreign Currency Loan of Japanese Yen
2031.1 million (Rs.830 millions)
The Company has repaid debentures
(10.85% Non Convertible Debentures- 22nd Series) aggregating Rs. 500 millions.
AWARDS AND RECOGNITION
The Company has been the proud
recipient of the following awards and recognitions :
• INDIAN RAYON, VERAVAL
First prize in Textile Sector for
Energy Conservation from Ministry of Power,
Second prize in Chemical Sector
for Safety from GREENTECH Foundation
Second prize in Textile Sector
for Safety from Gujarat Safety Council
OHSAS 18001 / ISO 14001
Certification
OEKO
• MADURA GARMENTS DIVISION
Awarded "The Best Retailer
of the Year" for the fashion segment at the 2nd Reid &.
Best Franchiser in the fashion
awarded by Franchising World
Clothing Manufactures
Association Of
'Louis Philippe' was adjusted
the Best Formal Wear brand
Madura Garments- Most Admired
Apparel Company
Madura Garments- got the
Clothing Company of the Year
Images Fashion Awards -
For 3rd consecutive time, Madura Garments
awarded Best Apparel Company
'Allen Solly' won the award for the Best
Smart Casual Brand
'Van Heusen' got the award for the Best
Trouser Brand
• HI-TECH CARBON DIVISION,
GUMMIDIPOONDI
The Division was declared as
winner of 'Gold Award' in Chemical Sector for Outstanding achievement in Safety
management at 4th Annual Greentech Safety Award, 2004-2005
• HI-TECH CARBON DIVISION,
RENUKOOT
The Division was declared Winner
of "Gold Award" in Chemical Sector for outstanding achievement in Environment
Management at 6th Annual Greentech Environment Excellence Award 2004- 2005
Winner of "Gold Award"
in Chemical Sector for outstanding achievement in Safety Management at 5th
Greentech Safety Award 2006.
•
" Suraksha Puraskar - 2004
from the National Safety Council of India, for its exemplary safety standards.
The Business world FICCI - SEDF
Corporate Social Responsibility Award 2005, for making a difference to the
marginalized sectors of Society.
FIXED
ASSETS:
Tangible Assets
- Land
Freehold
Leasehold
- Buildings
- Lease Hold
- Improvements
- Plant &
Machinery
- Furniture,
Fixtures &
- Iiqutpment
- Vechiles and
Aircraft
- Livestock
Intangible Assets
- Goodwill
- Trade
mark/Brands
- Specialised
Software
WEBSITE
DETAILS
A DIVERSIFIED CONGLOMERATE
Aditya Birla Nuvo Limited,
is the Aditya Birla Group's most diversified conglomerate, with a consolidated
turnover of Rs. 48303 millions for FY 2006. It is a leading player in its key
business segments, including viscose filament
yarn (VFY), carbon black,
branded garments,
textiles
and insulators.
Over the past few years, Aditya Birla Nuvo through its subsidiaries has made successful
forays into high growth sectors viz. life insurance,
IT services
and Business Process
Outsourcing (BPO), striking a balance between value and growth
businesses.
A
leading player
:: The
second largest producer of viscose filament yarn (VFY) in
:: The
largest branded apparel company in
:: The
second largest producer of carbon black in
:: Life
insurance joint venture, Birla Sun Life Insurance Company Limited, is
:: Insulators
joint venture with Birla NGK Insulators Private Limited is
:: Amongst
top three in third party BPO providers with the acquisition of Minacs
:: Among
the best energy efficient fertiliser plants globally
:: Among
the first five mobile telephony players in
:: A
leading player in life insurance and asset management in
Capacities
Business Capacity
Viscose
Filament Yarn (VFY) 16,000
tpa
Caustic
soda 58,400
tpa
Carbon
black 170,000
tpa
Fertilisers 8,64,600
tpa
Flax
yarns 6,136
spindles
Wool
combing 8,000
tpa
Worsted
yarns 22,224
spindles
Synthetic
yarns 51,232
spindles
Linen
/ fire retardant fabrics / other fabrics 62
looms
Insulators 36,000
tpa
BPO 2,235
seats
Expansion underway
Business Capacity
Caustic
soda 23,725
tpa
Linen
fabric 58
looms
Carbon
Black 55,000
tpa
BPO 450
seats
OVERVIEW
Aditya Birla Nuvo Limited,
is a major player in all its key businesses — viscose filament yarn, garments,
fertilisers, carbon black, textiles, insulators, life insurance, Information
Technology (IT), telecom and BPO sectors.
Aditya
Birla Nuvo's products and brands
:: BPO
:: Carbon Black
:: Fertilisers
:: Garments
:: Insulators
:: Insurance
:: IT services
:: Telecom
:: Textiles
:: Viscose Filament Yarn (VFY)
PRESS
RELEASES
14
September 2006
Van
Heusen unveils a strategy for the contemporary woman and the uber male
What
fitting introduction can one give about the world's largest selling dress shirt
and
Van
Heusen is known to bring the latest and most contemporary international styles
to the country over the years. It has a complete range of products for men in
shirts, trousers, outerwear and knitwear as well as an extensive range of
accessories like innerwear, neckties, belts, bags, eyewear, shoes and cuff
links.
This year indeed proves to be a landmark year for Van Heusen. It has achieved
the distinction of becoming the largest brand in the country and in order to
catapult itself into the future, it has identified two fashion segments — women
and youth.
These
new initiatives along with robust growth in premium menswear will make Van
Heusen leapfrog to Rs.6000 millions in the next three years. While Van Heusen
Woman for the contemporary Indian woman will complete the lifestyle offering of
Van Heusen, V dot is being launched to cater to a totally new segment of young
consumers hitherto neglected by all premium menswear brands.
Everyday
couture — Van Heusen Woman
Style
is important to the multi-faceted woman. Van Heusen has conducted extensive
research to understand the choices women have in the marketplace. Research
showed that the choices were limited and there were no players in the garments
and accessories for different occasions segment.
Mr.
Hemchandra Javeri, President of Madura Garments adds, "The demand for
comfortable, stylish, yet affordable women's western wear is on the rise.
Today's woman needs a wardrobe that is chic, international and yet suited to
her unique needs. And that is just what we offer."
Van
Heusen Woman is a comprehensive wardrobe for the contemporary woman. It's
seasons exclusive line is a collection of international ensembles — elegant,
stylish and versatile. It's perfect for the casual get-together, the formal
meeting, the social event of the season and even a glitzy Page 3 party that one
must shine at.
The Van
Heusen Woman range includes tops at Rs.1,100; trousers at Rs.1,300; outer wear
in a Rs.1,595 - Rs.13,000 range; knits and winter wear between Rs.1,100 and
Rs.1,500 and suits and blazers at Rs.3,500 - Rs.6,000; 100 per cent silk stoles
at Rs.1100; cuff links between Rs.600 - Rs.900; bags and belts at Rs.700 -
Rs.1,900 and a stylish collection of accessories ranging from hand bags, shoes
and belts to scarves, stockings and cufflinks.
Van Heusen Woman is divided into three fashion categories — Worldwear,
for the international business traveler; Every Day Formals, for the
working woman who wants a professional yet feminine look; and Informal Wear,
for occasions when she wants to let her hair down and still make heads turn.
Van
Heusen Woman is available in
V
dot
Today's
uber-confident young Indian male has it all. The brains, looks, a passport
chockablock with visas and a pulse on the latest in international style. Today,
there are brands that cater to his different needs but not a single brand that
offers a complete wardrobe. And too often, they range from the eminently forgettable
(read boring) or way over the top.
V dot
from Van Heusen is a complete wardrobe, brilliantly high on the fashion
quotient for the young man who wears his confidence on his sleeve. The fits are
trim, modern and sexy. The styling is bold and daring. And the attire is geared
towards experimentation oozing a 'wear the way you like it' attitude.
In Mr.
Javeri' s words, "It's style unlimited with unabashed attitude."
The V
dot brand offers shirts (Rs.1,400), trousers (Rs.1,600), suits (Rs.7,000) and
jackets (Rs.5,000). It will be available at all exclusive stores of Van Heusen,
Planet Fashion and other leading menswear outlets.
11
September 2006
Aditya
Birla Nuvo plans rights issue
The Board
of Directors of Aditya Birla Nuvo Limited, at their meeting held on 11
September 2006, have decided to raise funds not exceeding Rs.7800.000 Millions
through the issue of equity shares on a rights basis. The share ratio and price
per share for the rights issue would be decided by the board and announced at a
later date, subject to necessary approvals.
The
funds raised through the rights issue would be utilised for repayment of
existing debt and general corporate purposes.
It may be recalled that the company has made substantial investments in Idea
Cellular, TransWorks and Birla Sun Life Insurance besides its ongoing capital
expenditure. The proposed capital issue will strengthen the capital structure
of the company.
Says
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Nuvo Limited, "Aditya
Birla Nuvo stands at the threshold of its next phase of growth. The promoters
are fully committed to this offer."
Avers
Mr. Sanjeev Aga, Managing Director, Aditya Birla Nuvo Limited, "The
proposed rights offering will improve the gearing on the balance sheet, besides
providing another opportunity to the existing shareholders to participate in
the company"
Enam
Financial Consultants Private Limited and DSP Merrill Lynch Limited have been
appointed as managers to the proposed issue and Amarchand & Mangaldas and
Suresh A. Shroff & Co. as legal advisors to the company.
6
September 2006
Idea
commences operations in Himachal Pradesh
Idea
Idea is
the sixth operator to launch in the region and will herald in a new era in
mobile services for customers in Himachal Pradesh. With the launch of services
in Himachal Pradesh, Idea will provide its customers a congestion free network
packaged with excellent voice clarity.
Idea's
state-of-the-art congestion free network will cover key towns and highways in
two phases. In the current first phase, services are available in Shimla,
Mandi, Solan Baddi, Kullu and Sundernagar. In phase two, services will be
available in eight more important towns, which are Bilaspur, Hamirpur, Manali,
Kufri, Chail, Kasauli, Parwanoo and Nalagarh. In addition to world-class
customer care, and an unmatched value proposition, Idea will also offer its
customers innovative value-added services and revolutionary and affordable
tariffs. This is in keeping with Idea's endeavour to offer best in class mobile
services to its customers across the country.
Announcing
the launch of services in Himachal Pradesh, Mr. Mehmi said, "Across India,
Idea has played a key role by connecting people to people and people to places.
Idea offers a unique service experience and world-class customer care wherever
it goes. Himachal Pradesh has a huge potential for growth and Idea aims to
become a positive catalyst for its development. The launch of Idea will further
boost the telecom infrastructure in the region and hence facilitate overall
growth and development".
Idea
will be offering customers a slew of innovative value-added services and other superior
services, which are today being enjoyed by more than nine million customers
across the country. Some value propositions that the customer will enjoy are:
Friendly
customer care — Idea believes in delighting customers at every step for a total
mobile experience, which is being enjoyed by more than nine million delighted
customers today across the country.
GPRS
and MMS — Customers can receive instant access to the internet from their
mobile phones through their Idea GPRS services or send coloured picture
messages with sound clips.
Say
Idea — Through this service, Idea subscribers will have an ease of use, as they
would require to just dial a particular short code, for example 456 and get
into the voice portal. Idea subscribers can interact with the services in a
friendly, intuitive manner and access a wide range of services including ring
tones, MusiCard, sing along service like karaoke, cricket, movies, jokes,
logos, horoscopes, news and stocks.
Subscribers
can access this service by dialing 456 from their Idea mobile phone.
Idea is also slated to launch services in Rajasthan and Uttar Pradesh (east) by
the end of this year.
About
Idea Cellular
As
As a
leader in value-added services, innovation is central to Idea's VAS factory. It
is the first cellular company to launch music messaging with Cellular Jockey,
Background Tones, Group Talk, a voice portal with Say Idea and a complete suite
of mobile email services. A frontrunner in introducing revolutionary tariff
plans, Idea Cellular has the distinction of offering the most customer friendly
and competitive prepaid offerings, for the first time in India, with Super
Power, two minutes outgoing free, lifelong offer and other segmented offerings
like Women's Card. Lifetime Idea is the first and only loyalty programme, for
prepaid customers, introduced by a cellular brand.
Customer service and innovation are the drivers of this cellular brand. A brand
known for its many firsts, Idea is only operator to launch GPRS and EDGE in the
country.
The
latest feather in the Idea cap is the GSM association award for Bill Flash it
has recently won, making it the first cellular operator in
Idea
Cellular is part of the Aditya Birla Group, which is
GLOBAL
VISION, INDIAN VALUES
The
Aditya Birla Group is
A
premium conglomerate, the Aditya Birla Group is a dominant player in all of the
sectors in which it operates. Among these are viscose staple fibre, non-ferrous
metals, cement, viscose filament yarn, branded apparel, carbon black,
chemicals, fertilisers, sponge iron, insulators, financial services, telecom,
BPO and IT services.
Globally
the group is:
:: No.1 in viscose staple fibre
:: The third largest producer of insulators
:: The fourth largest producer of carbon black
:: The eleventh largest cement producer
:: Among the most cost-efficient aluminium and
copper producers. The fourth largest aluminium producer in
:: The best energy efficient fertiliser plant
:: Among the world's top 15 BPO companies and
among
In
:: A premier branded garments player
:: The second largest player in viscose
filament yarn
:: Among the first five mobile telephony
players
:: Leading player in Life Insurance and Asset
Management
Beyond
business
A
value-based, caring corporate citizen, the Aditya Birla Group inherently
believes in the trusteeship concept of management. Part of the Group's profits
are ploughed back into meaningful welfare-driven initiatives that make a
qualitative difference to the lives of marginalised people. These activities
are carried out under the aegis of the Aditya Birla Centre for Community
Initiatives and Rural Development, which is spearheaded by Mrs. Rajashree
Birla.
3 May 2007
Aditya Birla Nuvo reports good performance for year ended 31 March 2007
|
|
Fourth quarter |
Full Year |
|
Consolidated net sales |
Rs.25441 Millions |
Rs. 82580 Millions |
|
Consolidated net profit |
Rs.825 Millions |
Rs. 281.2 |
45 per cent|
Particulars |
Consolidated [Rs in Millions] |
|||||
|
|
Quarter ended 31 March |
Full year ended on 31 March |
||||
|
|
2007 |
2006 |
Growth % |
2007 |
2006 |
Growth % |
|
Net income from operations |
2,5441 |
1,7550 |
45 |
8,2580 |
5,0069 |
65 |
|
Operating profit (PBDIT) |
3050 |
1998 |
53 |
1,1391 |
6157 |
85 |
|
Profit before depreciation and tax |
1956 |
1636 |
20 |
7762 |
5119 |
52 |
|
Net profit (after minority interest) |
825 |
701 |
18 |
2812 |
2041 |
38 |
|
EPS (Rs.) |
9.0 |
7.9 |
14 |
32.0 |
26.1 |
23 |
Aditya Birla Nuvo has posted good performance for the year ended 31
March 2007.
Substantial growth in revenues
The company's consolidated turnover of Rs.82580 Millions is up by 65 per
cent over Rs.50069 Millions achieved in the preceding year. The company's
standalone turnover at Rs.34205 Millions grew by 29 per cent vis-a-vis Rs.26420
Millions attained in the preceding year.
Revenues from its subsidiaries and joint ventures, where the company has made
substantial investments in the past, saw a phenomenal rise of 105 per cent,
from Rs.23649 Millions to Rs.48375 Millions.
All the businesses are on high growth trajectory.
Ø
Telecom business has shown a spectacular growth in
revenues from Rs.29655 Millions to Rs.43664 Millions up by 47 per cent, almost
doubling the subscriber base. During the year, the company raised its stake in
Idea Cellular from 20.74 per cent to 31.78 per cent (post IPO)
Ø
In BPO business, revenues have soared to 10155
Millions with the acquisition of Minacs on 18 August 2006. In the preceding
year, revenues stood at Rs.1633 Millions.
Ø
Life Insurance has reported a total income of
Rs.19600 Millions, up by 24 per cent with an increase in its distribution
reach.
Ø
Garments business achieved a turnover of Rs.8304
Millions vis-a-vis Rs.6206 Millions while maintaining its industry leadership.
Growth in profit across businesses
The company’s consolidated net profit of Rs.2812 Millions grew by 38 per
cent over Rs.2041 Millions in the preceding year.
Its standalone net profit at Rs.2250 Millions is higher by 20 per cent as
against Rs.1869 Millions earned preceding year. At the operating level all the
businesses have done well. The company’s standalone operating profit is up by
36 per cent at Rs.6038 Millions. A major rise in interest cost on account of
borrowings for the acquisition of a higher stake in Idea has strained profit
numbers, which could have been much higher.
The contribution of joint ventures and subsidiaries to net profit has been at
Rs.563 Millions as against Rs.171 Millions preceding year.
Ø
Telecom’s net profit at Rs.5033 Millions vis-a-vis
Rs.2118 Millions earned preceding year is commendable. The growth in
profitability is despite launches in three new circles.
Ø
Life insurance incurred higher losses due to higher
spend on augmenting its sales force and opening new branches to regain the
market share.
Ø
The BPO business bottom line has been impacted by
the interest burden on funding its new acquisition, restructuring and
accounting readjustment at Minacs, to bring it at par with Indian accounting
standards.
Ø
In the standalone businesses, garments and Carbon
Black have substantively contributed to the operating profit of the company.
Successful completion of the rights issue
The company has raised Rs.7772 Millions through a rights issue. The
equity share capital of the company has increased from Rs.835 Millions to
Rs.933 Millions. The proceeds are being used for repayment of debt and fresh
investments in Idea.
Dividend
The company had paid an interim dividend of 55 per cent in March 2007
which was treated as the final dividend for the current year as against 50 per
cent preceding year. The dividend outgo, including dividend tax, has been at
Rs.585 Millions against Rs.476 Millions preceding year.
Standalone performance
Garments
In branded garments business, fashion brands viz. Louis Philippe, Van Heusen,
Allen Solly and Espirit saw a healthy growth supported by new launches. The
popular brand Peter England continued to expand its reach. Innovative
merchandise and creative campaigns have resulted in an upsurge in brand equity;
further entrenching Madura Garments’ leadership status. The division is
aggressively expanding its controlled retail space.
Branded garments business revenues grew, on like to like basis, by 28 per cent
to Rs.6704 Millions vis-à-vis Rs.5257 Millions recorded in the preceding year.
Operating profit, on like to like basis, is up by 33 per cent supported by
better channel mix and pricing despite high discount and the dormancy phenomena
across the industry.
The contract exports business has been divested into Madura Garment Exports
Limited from 1 July 2006. Volumes increased through capacity expansion and
revenues grew, on like to like basis, by 58 per cent to Rs.1732 Millions. A new
facility to manufacture shirts is slated to be completed by August 2007, which
will give a fillip to the contract exports business.
Rayon division
VFY segment recorded sales volumes at 17,039 tonnes against 17,380
tonnes in the preceding year. Aided by a 13 per cent increase in realisation
rates, revenues stepped up by 11 per cent to Rs.2886 Millions as against
Rs.2604 Millions in the preceding year.
In chlor-alkali segment, ECU realisation remained flat but the volumes rose by
18 per cent backed by expanded caustic soda capacity. This resulted in a 22 per
cent growth in revenues at 1528 Millions as against Rs.1252 Millions in the
preceding year.
Carbon Black division
Capitalising on the vibrant auto sector growth Carbon Black division
continues to show a robust performance. Sales volumes stood at 180,893 tonnes,
the highest ever recorded in a year. Realisation is up by 27 per cent on
account of high CBFS prices and optimised product, market and logistics mix.
Revenues at Rs.7389 Millions extended by 31 per cent vis-à-vis Rs.5642 Millions
attained in the preceding year. Operating profits are higher by 43 per cent at
Rs.1322 Millions.
Textiles division
Textiles division’s revenues have gone up by 18 per cent to Rs.6250
Millions as against Rs.5277 Millions in the preceding year. Operating profits
increased by 19 per cent at Rs.674 Millions despite downsizing in the synthetic
segment which is being phased out. Linen fabric volumes remained flat. Linen
yarn witnessed increase in volumes and the wool segment outperformed with
higher volumes and realisations.
Fertilisers division
Increased operational efficiencies coupled with the rising demand for
urea, aided the fertiliser division’s production and sales to reach highest
levels at 10.28 lakh mt and 10.44 lakh mt respectively for the year ended 31
March 2007. Its net turnover stood at Rs.7785 Millions, while operating profits
have been impressive at Rs.1296 Millions. The stringent pricing policy norms
announced on 8 March 2007 (with retrospective effect from 1 October 2006) have
affected the profits for second half year.
Insulators business
Insulators business has reported revenues of Rs.2895 Millions vis-a-vis
Rs.3625 Millions attained in the preceding year. Revenues have been affected by
an illegal strike at the Halol plant for major part of the year. After amicable
settlement with the workers in December 2006, the working of the plant is
normalised now at improved efficiency, the full benefit of which of will be
reflected in financial year 2007-08. The business has reported a higher
operating profit at Rs.543 Millions as against Rs.440 Millions in the preceding
year, supported by improved realisations and a strong demand for insulators.
Other joint ventures and subsidiaries
In telecom business, Idea Cellular’s subscriber base at 14.01 million
doubled over preceding year, recording an 8.63 per cent market share. Revenues
for the year showed an impressive jump of 47 per cent at Rs.43664 Millions. The
company posted a healthy rise in profits despite the gestation period for the
three newly rolled out circles putting pressure on EBITDA margins. Idea
strengthened its balance sheet by raising Rs.28190 Millions through an IPO and
pre- IPO placement. Post IPO, Nuvo’s share in Idea has diluted to 31.78 per
cent. The Mumbai and
In life insurance business at Birla Sun Life Insurance, the total premium
income grew by 41 per cent to Rs.17352 Millions. The individual business
annualised premium grew by 41 per cent at Rs.15750 Millions. The company is
focusing on expanding its distribution reach; today it has 137 branches as
against 85 in the preceding year and the direct sales force has increased to
56,603 from 17,986 in preceding year. As a result of these long-term
investments, net loss has increased to Rs.1397 Millions from Rs.611 Millions in
the preceding year.
In the asset management business at Birla Sun Asset Management Company, assets
under management (AUM) stood at Rs.208490 Millions with 5.8 per cent market
share. Business reported revenues at Rs.819 Millions and net profits at Rs.143
Millions.
In BPO business, at TransWorks, revenues rose by 21 per cent to Rs.1972
Millions supported by the improved share of non-voice business. Minacs reported
revenues at Rs.8184 Millions for the period from 18 August 2006, the date of
its acquisition to 31 March 2007. The profits of Minacs have been affected by
unusual items like one time restructuring cost and accounting readjustment
expenses. In
On a combined basis, the BPO business has 21 delivery centres in seven
countries across three continents. With a global client base including 15
Fortune 500 companies, the business supports customers in 30 different
languages. It has over 11,000 employees worldwide. The BPO business now has a
global delivery model with integrated management and marketing structure.
In software business at PSI Data Systems, revenues stood at Rs.936 Millions
with a positive bottom line. The company has ramped up its sales team and net
staff strength is up from 573 to 684 during the year. The company has added 20
marquee clients while focusing on core verticals viz. corporate banking and
high tech.
Merger of Aditya Birla Insulators Limited
The Board of Directors of the company, at its meeting held on 3 May
2007, have approved, subject to requisite approvals, merger of Aditya Birla
Insulators Limited (ABIL), a wholly owned subsidiary of the company, with the
company with effect from 1 April 2007 through a Scheme of Amalgamation (Scheme),
u/s 391 to 394 of the Companies Act, 1956. On the Scheme coming into effect,
the business of ABIL will be transferred to the company on an on going concern
basis.
Growth initiatives
Ø
Madura Garments will aggressively pursue retailing
of lifestyle and popular brands by expanding its reach with bigger size stores
besides creating specialised outlets
Ø
Carbon Black's brownfield expansion of 60,000 tpa
is targeted by the end of June 2007. Land acquisition for 1,20,000 tpa
Ø
Fertilisers will focus on debottlenecking to
increase capacity
Ø
Textiles will increase its capacity in linen
fabrics and flax yarns
Ø
Insulators is expanding its capacity and investing
for yield improvement
Ø
Birla Sun Life insurance's emphasis is on regaining
its market position of being amongst the top three, increasing the branch
network, strengthening its agency force and launching contemporary products
Ø
AMC and Distribution have aggressive branch opening
plans as well
Ø
The BPO business is working on a global delivery
model with an additional share of KPO business
Ø
Telecom will strengthen and expand its network in
existing circles and better its reach through a roll out in Mumbai and
Investments in various businesses are happening in their growth phases
which seem to be coinciding. Aditya Birla Nuvo is very optimistic about coping
with the challenges of strategic and growth initiatives and stretching out in
the short term.
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ON DESIGNATED PARTY
No 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.41.18 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.56.07 |
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 |
|