MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
GREAVES COTTON
LIMITED |
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Registered Office : |
Industry Manor,
Appasaheb Marathe Marg, Prabhadevi, P. O. Box No. 19127, Mumbai – 400 025, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
29.03.1922 |
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Com. Reg. No.: |
11-987 |
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CIN No.: [Company
Identification No.] |
L99999MH1922PLC000987 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG07833A |
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Legal Form : |
Public limited
liability company. Company’s shares are listed on stock exchanges. |
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Line of Business : |
Manufacturer of
Diamond Bits, Industrial Diamond Tools, Oilfield Diamond Bits, High Pressure
Pumps and Operating Equipment. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 8500000 |
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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 the Thapper Group, a medium size industrial house
in It can be
considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Industry Manor, Appasaheb
Marathe Marg, Prabhadevi, P.O.Box No. 19127, Mumbai – 400 025, |
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Tel. No.: |
91-22-24223747 /
24365510 |
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Fax No.: |
91-22-24379555/24367785 |
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E-Mail : |
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Website : |
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Factory : |
Plot No. 66, MIDC
Estate, Satpur, Nashik – 422 007, J-2 MIDC
Industrial Area, Chikalthana, Industrial Development
Area, Patancheru, Medak District, Andhra Pradesh – 502 319, Park Gear
Works, Chinchwad, Pune – 411 019, Industrial
Growth Centre, Sector III, Falta, South-24 Parganas, West E-2, MIDC
Industrial Area, Baramati – 413 133, Plot No. 72,
SIPCOT Industrial Complex, Ranipet – 632 403, Plot Nos.
138/143, Ambaji Industrial Estate, K – 135, MIDC
Industrial Area, Waluj, 148, Oggiam
Thoraipakkam, Chennai – 600096, D – 18, Sipcot
Industrial Complex, Gummidipoondi – 601201, New No. 67, |
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Branches: |
·
Thapar
House, 25, Tel. No. 91-33-22421459 / 22423805 / 22423811 Fax No. 91-33-22424325 Email – calmgl@greavesmail.com ·
'Jaldarshan’
Tel. No. 91-79-6580428 / 6581861 Fax No. 91-79-6587783 Email – ahmmgl@greavesmail.com ·
Rani
Kunthi, 82 Burdwan Compound, Tel. No. 91-651-2562069 Fax no. 91-651-2561704 Email – glranchi@vitalmail.com ·
'Guman’,
Pandit Jawaharlal Nehru Marg, Sadar, P. B. No. 129, Tel. No. 91-712-2526588 / 2524125 Fax No. 91-712-2541142 Email – nagmgl@greavesmail.com ·
26, Tel. No. 91-44-25231120 Fax No. 91-44-25224557 Email – chemgl@greavesmail.com ·
16/3,
Tel. No. 91-80-2262062-65 Fax No. 91-80-2253472 Email – bngmgl@greavesmail.com ·
39/5567,
M Tel. No.91-484-2369272 / 2369190 Fax No. 91-484-2382389 Email – cchmgl@greavesmail.com ·
Tel. No. 91-11-23730554 98 lines) Fax No. 91-11-23359782 Email – delmgl@greavesmail.com ·
Raj
Chambers, 3rd Floor, 29/9, Rana Pratap Marg, Tel. No. 91-522-2207711 / 2207712 Fax No. 91-522-2207863 Email – lucmgl@greavesmail.com ·
6-2-47,
A. C. Guards, First Floor, P.B. No. 9, Tel. No. 91-40-23314025 / 23316446 Fax No. – 91-40-23318557 Email – hydmgl@greavesmail.com |
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Overseas
Offices: |
Ř
James
Greaves & Company GPO Box. 406, Brazennose House, Tel No. (44-161) 834-0991 Fax No. (44-161) 832-0753 Telex : 669589 JG CO G E Mail
: jamesgreavesco@btinternet.com
Ř
Also
at |
DIRECTORS
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Name : |
Mr. P. Sachdev |
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Designation : |
Managing Director
& Chief Executive Officer |
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Age : |
61 years |
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Qualification
: |
B.Sc., Engg. (Mech.) |
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Experience : |
40 years |
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Date of
Appointment : |
1st February, 1966 |
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Name : |
Mr. Karan Taper |
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Designation : |
Chairman |
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Name : |
Mr. S. Mukhopadhyay |
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Designation : |
Director |
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Name : |
Mr. Vijay Rai |
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Designation : |
Director |
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Name : |
Mr. B.R. Gupta |
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Designation : |
UTI Nominee Director |
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Name : |
Mr. B. M. Thaper |
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Designation : |
Additional Director |
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Name : |
Mr. Gautam Thapar |
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Designation : |
Additional
Director |
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Name : |
Dr. S. Kapur |
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Designation : |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Director |
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Name : |
Mr. S. K. Roy |
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Designation : |
Executive
Director |
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Age : |
60 years |
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Qualification
: |
NCE (Mech.) |
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Experience : |
40 years |
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Date of
Appointment : |
21st
December, 1964 |
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Prevoius
Employment: |
Lynx Machinery |
KEY EXECUTIVES
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Name : |
Mr. K. K. Saraf |
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Designation : |
Vice President
and Company Secretary |
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Name : |
Mr. T. K.
Chattopadhyay |
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Designation : |
Senior Vice
President |
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Name : |
Mr. S. K. Basu |
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Designation : |
Senior Vice
President |
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Name : |
Mr. R.
Varahamoorthy |
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Designation : |
Vice President |
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Name : |
Mr. P.R. Joshi |
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Designation : |
Vice President |
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Name : |
Mr. J. G. Sharma |
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Designation : |
Vice President |
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Name : |
Mr. Suneel Khanna |
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Designation : |
Group General
Manager |
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Name : |
Mr. Sunil Kumar |
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Designation : |
Group General
Manager |
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Name : |
Mr. A. G.
Giridharan |
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Designation : |
Group General
Manager |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
24442841 |
50.06 % |
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Mutual Funds and
UTI |
6437507 |
13.18 % |
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Banks, Financial Institutions
Insurance Companies [Central / State Government Institutions / Non Government
Institutions] |
9487706 |
19.43 % |
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Private Corporate
Bodies |
1062693 |
2.17 % |
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NRIs/ OCBs/ FIIs |
2107483 |
4.32 % |
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Resident
Individuals |
5292992 |
10.84 % |
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TOTAL |
48831222 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Diamond Bits, Industrial Diamond Tools, Oilfield Diamond Bits, High Pressure
Pumps and Operating Equipment. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Diamond Bits |
Nos. |
19500 |
-- |
-- |
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Industrial Diamond Tools |
Nos. |
18000 |
-- |
-- |
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Oilfield Diamond Bits |
Nos. |
300 |
-- |
-- |
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High Pressure Pump for Mud Slush Water |
Nos. |
110 |
110 |
173 |
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Diamond Core Drilling Machine |
Units |
60 |
-- |
-- |
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Operating Equipment for Drilling |
Mrs. |
60000 |
60000 |
-- |
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Paper Tubes |
Pcs. |
6600000 |
-- |
-- |
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Paper Cones |
Pcs. |
27231000 |
-- |
-- |
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Parallel Tubes |
Kgs. |
9174 |
-- |
-- |
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Spiral Tubes |
Pcs. |
2870000 |
-- |
-- |
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Spare Parts for Earthmoving Equipments |
Units |
1200 |
1200 |
-- |
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Special Types of Valves for drilling & other Industrial Products |
Nos. |
6000 |
6000 |
-- |
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Mechanical Seals |
Nos. |
3600 |
3600 |
-- |
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Solderless Terminals |
Nos. |
60000 |
60000 |
-- |
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Electro Magnetic Multi-disc Clutches & Brakes |
Pcs. |
4000 |
500 |
-- |
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Diesel Engines |
Nos. |
210000 |
102500 |
54836 |
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Electricity Operated Cran Diesel & Petrol driven Engine Winches |
MT |
1200 |
3000 |
-- |
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Light/Medium Heavy Structural Steel Gates and Hoisting Machines |
MT |
1000 |
2400 |
-- |
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Vibratory Compactors |
Units |
200 |
200 |
113 |
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Tandom Roller |
Nos. |
-- |
-- |
65 |
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Man Riding System |
Nos. |
7 |
7 |
-- |
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Sky Climber |
Nos. |
50 |
50 |
-- |
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Concrete Mixer |
Nos. |
-- |
-- |
531 |
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Batching Plant |
Nos. |
-- |
-- |
3 |
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Road Roller |
Nos. |
1050 |
200 |
-- |
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Diesel Oil Engines |
Nos. |
15000 |
12500 |
3082 |
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Generating Sets |
Nos. |
55000 |
22600 |
879 |
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Deepwell Turbine Pumps |
Nos. |
1000 |
650 |
-- |
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Internal Combustion Engines |
Nos. |
270000 |
220000 |
210912 |
GENERAL INFORMATION
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Customers : |
v
Adroit
Industries, Satara, v
Aress
High Duty Forging Private Limited v
Atai
Filters Private Limited v
Devgiri
Forgings Private Limited v
Domore
Tools & Accessories Private Limited v
Ellai
Lakshmi Monose’s (Private) Limited v
Gravity
Die Casters Private Limited v
Mahee
Engineering (Private) Limited v
Sai
Forge Private Limited v
Sargam
Metals Private Limited v
Siddhant
Pressing Private Limited v
Sri
Balaji Castings Private Limited v
Upasana
Engineering |
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No. of Employees : |
6000 |
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Bankers : |
v
Bank
of v
Oriental
Bank of Commerce v
State
Bank of v
Syndicate
Bank v
ICICI
Bank Limited |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Sharp &
Tannan Chartered
Accountants |
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Associates: |
v
Crompton
Greaves Limited v
Greaves
Morganite Crucible Limited v
Pacific
Greaves Pte. Limited, v
The
company was set up essentially for trading in |
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v
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Subsidiaries: |
v
Dee
Greaves Limited v
Greaves
Leasing Finance Limited v
Greaves
Midwest Engineering Company Limited v
Rajpath
Investment Limited v
Carnation
Investment Limited v
SIDVIM
AG (Overseas Subsidiary) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.
10/- each |
Rs. 500.000 millions |
|
2500000 |
Redeemable Preference Shares |
Rs.
100/- each |
Rs. 250.000 millions |
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TOTAL |
|
Rs.750.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48831222 |
Equity Shares |
Rs. 10/- each |
Rs. 488.300 millions |
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Add : |
Shares forfeited |
|
Rs. 0.100 million |
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TOTAL |
|
Rs. 488.400 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2006 |
30.06.2005
|
30.06.2004 |
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SHAREHOLDERS
FUNDS |
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|
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1] Share Capital |
488.400 |
456.400 |
446.400 |
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2] Share
Application Money |
0.000 |
24.300 |
0.000 |
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3] Reserves &
Surplus |
1672.700 |
995.500 |
678.200 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2161.100 |
1476.200 |
1124.600 |
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LOAN FUNDS |
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1] Secured Loans |
480.200 |
595.200 |
1040.600 |
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2] Unsecured
Loans |
69.700 |
191.400 |
231.400 |
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TOTAL
BORROWING
|
549.900 |
786.600 |
1272.000 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
2711.000 |
2262.800 |
2396.600 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1146.200 |
898.900 |
720.700 |
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Capital work-in-progress
|
163.600 |
151.300 |
94.700 |
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INVESTMENT
|
894.300 |
390.100 |
390.300 |
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DEFERREX TAX ASSETS
|
42.900 |
392.500 |
700.300 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
879.600 |
664.500 |
645.700 |
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Sundry Debtors
|
919.600 |
625.400 |
564.300 |
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Cash & Bank Balances
|
335.200 |
661.500 |
442.800 |
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Other Current Assets
|
0.000 |
0.000 |
0.000 |
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Loans & Advances
|
575.600 |
542.400 |
441.300 |
Total Current Assets
|
2710.000 |
2493.800 |
2094.100 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
1948.500 |
1689.100 |
1455.200 |
|
|
Provisions
|
297.500 |
374.700 |
148.300 |
Total Current Liabilities
|
2246.000 |
2063.800 |
1603.500 |
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Net
Current Assets
|
464.000 |
430.000 |
490.600 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
2711.000 |
2262.800 |
2396.600 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
Sales Turnover [including other income]
|
8414.600 |
6604.200 |
6418.700 |
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|
|
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|
Profit/(Loss) Before Tax
|
1321.100 |
1016.100 |
333.900 |
Provision for Taxation
|
470.200 |
395.200 |
116.600 |
Profit/(Loss) After Tax
|
850.900 |
620.900 |
217.300 |
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Export Value
|
N.A. |
215.600 |
216.100 |
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Import Value
|
N.A. |
297.200 |
268.800 |
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|
|
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Total Expenditure
|
7009.100 |
5582.200 |
5544.000 |
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2006 [1st Qtr.] |
31.12.2006 [2nd Qtr.] |
31.03.2007 [3RD Qtr.] |
Sales Turnover
|
2837.600 |
3233.300 |
3256.900 |
Other income
|
21.300 |
27.900 |
26.000 |
Total Income
|
2858.900 |
3261.200 |
3282.900 |
Total Expenditure
|
2442.400 |
2759.100 |
2778.500 |
Operating profit
|
416.500 |
502.100 |
504.400 |
Interest
|
31.600 |
51.400 |
41.400 |
Gross Profit
|
384.900 |
450.700 |
463.000 |
Depreciation
|
37.300 |
38.900 |
42.000 |
Tax
|
67.100 |
72.600 |
37.500 |
Reported PAT
|
245.500 |
298.200 |
339.000 |
Notes
200609 Quarter 1
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (167.00)million Consumption
of Raw Materials Rs 2166.20 million Staff Cost Rs 139.60 million Other
Expenditure Rs 303.60 million Tax Includes Provision for MAT (net after
adjustment of excess provision of taxation in prior years) Rs 65.00 million
Deferred Tax Liability Rs 35.00 million Fringe Benefit Tax Rs 2.10 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 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter Nil 1. Figures for the corresponding
previous period include the operations of crucible distribution business whose
rights have been transferred. 2. The Board has declared a first Interim
Dividend at the rate of Rs 2.00 per share (Cash out go Rs 11l.40 million). 3.
Provision for current tax is net of write back of MAT of Rs 20 million of
previous year, as per Income tax Act, 1961. Figures for the previous periods
represent provision on MAT basis only. 4. Figures for the previous period have
been regrouped / reclassified to make the same comparable with the current
period figures. 5. The above financial results were subjected to limited review
by the statutory auditors. 6. The above financial results were reviewed by the
Audit Committee and then approved by the Board at its meeting held on October
19, 2006.
200612 Quarter 2
EPS is
Basic 1.Figures for the corresponding previous periods include the operations
of crucible distribution business whose rights have been transferred. 2.The
Board has declared a second Interim, Dividend at the rate of Rs 2.00 per share
(Cash out go Rs. 111.400 millions).Thus, including the first interim dividend
of Rs. 2.00 per share, the total interim dividend would be Rs. 4.00 per share,
for the financial year 2006-07.The Company has fixed Friday, 9th February, 2007
as the 'Record Date' for the purpose of payment of the second Interim Dividend.
3.Investor complaints outstanding at the beginning of the quarter were nil, 4
complaints were received and resolved during the quarter ended 31st December,
2006. 4. Provision for current tax is net of write back of MAT of Rs. 20
millions and adjustment of carried forward loss/depreciation of previous years,
as per Income Tax Act , 1961. Figures for the previous periods represent
provision on MAT basis only. 5. Figures for the previous periods have been
regrouped/reclassified to make the same comparable with the current period
figures. 6. The above financial results were subjected to limited review by the
statutory' auditors. 7. The above financial results were reviewed by the Audit
Committee and then approved by the Board at its meeting held on 31st January,
2007.
200703
Quarter 3
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs 40.20 million Consumption of Raw Materials Rs 2263.20 million Staff Cost Rs
153.30 million Other Expenditure Rs 321.80 million Tax Includes Provision for
Tax/MAT (net after write back of excess provision of prior years) Rs 34.00
million Deferred Tax Liability Rs 44.50 million Fringe Benefit Tax Rs 3.50
million EPS is Basic Status of Investor Complaints for the quarter ended March
31, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 02 Complaints disposed off during the quarter 02
Complaints unresolved at the end of the quarter Nil 1. The Company has acquired
the 100% of the equity shares in Bukh-Farymann Diesel GmbH,
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005
|
30.06.2004 |
|
Debt
Equity Ratio |
0.38 |
0.84 |
1.97 |
|
Long
Term Debt Equity Ratio |
0.38 |
0.84 |
0.52 |
|
Current
Ratio |
1.28 |
1.50 |
1.09 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.75 |
4.30 |
3.84 |
|
Inventory
|
12.17 |
11.15 |
10.06 |
|
Debtors |
12.16 |
12.27 |
9.90 |
|
Interest
Cover Ratio |
12.54 |
6.78 |
2.18 |
|
Operating
Profit Margin (%) |
15.12 |
14.17 |
12.33 |
|
Profit
Before Interest and Tax Margin (%) |
13.71 |
12.62 |
10.05 |
|
Cash
Profit Margin (%) |
9.53 |
8.12 |
5.82 |
|
Adjusted
Net Profit Margin (%) |
8.13 |
6.57 |
3.54 |
|
Return
on Capital Employed (%) |
53.11 |
40.74 |
26.28 |
|
Return
on Net Worth (%) |
43.43 |
38.91 |
27.46 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
|
High |
Rs.378.90/- |
|
Low |
Rs.363.00/- |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
The company was
originally formed in 1868 as a partnership firm between James Greaves and
George Cotton to undertake import/export
trading. The firm took up manufacturing of cotton yarn, but discontinued it in
1920. It forayed into engineering related activities by taking up import of
machinery/equipments in 1922. In
1937, the company promoted 2 companies manufacturing ceiling fans and other
electrical products. These two companies were merged in 1966 to form Crompton
Greaves, in which the company still has a significant equity stake. Over the
years, the company entered into technical and financial collaboration with
several international players and formed a number of subsidiaries/joint ventures (most of these have been
merged with the company over last few years). After independence in 1947,
ownership transferred to Indian hands, when Mr. L. K. Thapar bought the
controlling interest from Greaves family. Mr. L. K. Thapar passed away in 1962,
since then Mr. L. M. Thapar is heading the operations, In FY93, the company
disposed off its Marol facilities and the sales proceeds were used to meet
outflow on account of VRS (Voluntary Retirement Scheme).
The company was
originally incorporated under the name and style of “Greaves Cotton and Company
Private Limited” on 29th March, 1922 at Mumbai in
The company changed
the name to present w. e. f 28/11/2003 to avoid confusion and to realize the
benefits of the strong Brand Equity that “Greaves Cotton” enjoys in the market
place
The company, part
of the Thapar Group, was founded in 1859. Subsequently in 1950, Greaves was
converted into a Public Limited Company.
It’s Company
Registration Number is 987.
BUSINESS
The company is
engaged in manufacturing of Diamond Bits, Industrial Diamond Tools, Oilfield
Diamond Bits, High Pressure Pumps for Mud Slush & Water, Diamond Care
Drilling Machine, Operating Equipment for Drilling, Paper Tubes, Paper Cones,
Parallel Tubes, Spiral Tubes, Spare Parts for Earth Moving Equipments, Special
types of Valves for drilling and other Industrial Products, Mechanical Seals,
Solderless Terminals, Rock Roller Bits, Electro-magnetic Multi-disc Clutches
& Brakes, Electricity Operated Crane, Diesel & Petrol driven Winches,
Light/Medium/Heavy Structural Steel Works, Gates & Hoisting Machines,
Vibratory Compactors, Tandom Roller, Man
Riding System, Sky Climber, Concrete Mixer, Batching Plant, Road Roller,
Discrete Devices & Intergated Circuits, Diesel Oil Engines, Generating
Sets, Deepwell Turbine Pumps, Marine & Industrial Gear Boxes, Internal
Combustion Engines, Tractors, Acrylonitrite Butadiene Styrene, High Impact
Polystyrene, Styrene Acrylonitrite and Diesel Three Wheeler Auto Rickshaw.
The company is the
largest manufacturer of internal combustion engines. Company is one of
The business
operations of the company are divided into following business groups :
|
Business Groups |
Product Lines |
|
Power generation |
Diesel Engines –
15-1000 HP Generating sets –
15-520 KVA |
|
Power
transmission |
Industrial
gearboxes and fluid couplings |
|
Portable engines |
Internal
combustion engines 1.5 to 11 HP |
|
General
engineering |
Cranes, Concrete
pumps, vibratory compactors, rock roller bits, crucibles |
|
Industrial
products |
ABS / HIPS
resins, pumps, stem traps, semiconductor devices |
|
Farm equipment |
Power tillers –
12 to 14.3 HP @2000 TM |
Company has an
independent division marketing high technology systems for marine, aviation and
electronic applications.
In the recent
years, company has made rapid strides towards globalisation. Company exports several products and systems
to virtually every continent. Company
also undertakes international trading activities including third country
trading covering both export and import relating to engineering goods and
consumables for industry, infrastructure and projects.
Company’s product
range includes –
|
Business Group |
Products |
|
Power Generation |
Diesel Engines Gensets Dual Fuel Engines
/ Gensets Gas Genset |
|
Power
Transmission |
Worm Gears Helical Gears
& Bevel Helical Gears Worm/Heliworm/ Helical / planetary. Bevel helical geared
motors Custom built.
Helical, bevel helical gearboxes Vertical coal
mill gearbox Lift machine Traction type
variable speed tyre |
|
Portable Engines |
Engines Gensets Pump sets |
|
General
Engineering |
Concrete Pumps Transit mixers Concrete batching
plants\truck moulded pumps Concrete pavers Single drum
compactors Tandem compactors Light compaction
equipment Rock Rollers Bits Silicon Carbide
& clay graphite crucibles Cast & forged
rolls Nickel alloys,
titanium, electrodes Filler metals ,
miscellaneous materials Shearers Road
headers, manriding systems, mine electrical |
|
Industrial
Products |
ABS, Hips, San
& Gpps, Resins Steam Taps,
special strainers Horizontal &
Vertical Slurry Pumps Diaphragm Valves Butterfly Valves Power Tillers |
Business and
Outlook
The
Company recorded excellent performance on all major financial parameters with
gross sales moving upto Rs. 9396 millions from Rs. 7301.700 millions in the
previous year, i.e. growth of 29%. The Company continued to accelerate its
leadership in all its products. Despite a steep hike in some of the major input
costs, the EBIDTA margin improved to 15% as against 14% last year.
The year gone by has been one of consolidation and strong growth in the core
products of the Company through higher productivity and enhanced market
penetration. During the year under report, the Indian economy, particularly the
manufacturing sector has shown rapid growth with an equally promising outlook
for the near future.
With the Central Government continuing its thrust on certain priority areas
like agriculture and infrastructure sectors, your Directors are reasonably
confident of continuing the growth momentum of the Company.
Dividend
Three Interim Dividends, each of Rs. 2/- per share declared by the Directors on
November 7, 2005, January 30, 2006 and April 18, 2006, have been already paid
to the Members.
In view of excellent performance, the Directors have recommended a Final
Dividend of Re. 1/- per share, taking the total dividend for the financial year
2005-06 to Rs. 7/- per share. Thus, the total cash outgo (inclusive of
Corporate Dividend Tax) on account of dividends would work out to Rs. 381.800
millions, representing 41 % of net operational cash earnings of the
Company.
Issue of Capital
During the year under report, a total of 32,00,000 new Equity Shares of Rs.
10/- each at a price of Rs. 76/- per share were allotted to the Promoter Group
Companies consequent upon their exercise of options in the Equity Warrants
Series 'A' and Series 'B' allotted to them in November 2004.
Promoter Group
The Company is a part of B M Thapar Group. The Promoter Group holding in the
Company currently is 50.06%. The Members may note that B M Thapar Group, inter
alia, comprises of the following Companies :
Crompton
Greaves Limited
English
Indian Clays Limited
Premium
Energy Transmission Limited
Pembril
Industrial & Engineering Company Private Limited
DBH
International Private Limited
Karun
Carpets Limited
Solaris
Holdings Limited
Greaves
Leasing Finance Limited
Bharat
Projects Limited
Dee
Greaves Limited
KCT
Chemicals & Electricals Limited
Divestment
During the year under report, the Company divested its 25.5% stake in the
Equity of Greaves Morganite Crucible Limited (GMCL) for a consideration of Rs.
107.100 millions. Consequently, the Company also exited from the distribution
business relating to GMCL products, for a consideration of Rs. 52 millions. The
above transactions resulted in a combined profit of Rs. 142.5 millions.
Fixed
Assets
The company’s
fixed assets of important value includes Goodwill (Cost of infrastructure),
Freehold Property (A), Leasehold Property (B), Plant & Equipment, Technical
Know-how, Furniture and Vehicles.
Group
The company belongs
to Thapar Group, currently headed by Mr. L. M. Thapar. Prominent group
companies are : Greaves Limited, Crompton Greaves (Electrical/ Engineering products), A. P. Rayon
(rayon grade wood pulp), Ballarpur Industries (paper and related products). Mr.
L. M. Thapar companies’ control will be passed on to his eldest nephew Mr.
Vikram Thapar.
The company
promoted the first ever Indo-Russian joint venture in the private sector--
Rajasthan Polymers and Resins, to manufacture 20000 TPA of ABS/HIPS resins
during 1991. In 1992-93, Greaves Semi-conductor, a subsidiary, was amalgamated
with the company. Two units of
The company
expanded the engine manufacturing capacity to 65000 engines p.a. to manufacture
the latest diesel engines in collaboration with
During the year
1997-98, the company completed the divestment of its Greaves Garuda 3-wheeler
Auto plant at Baramati in favour of a Joint Venture Company - Piaggio Greaves
Vehicles Limited formed in collaboration with Piaggio Veicoli Europe SpA of
Italy. The company holds 49% equity in the joint venture and the balance is
with Piaggio.
It has made a foray
into the manufacture of tractors, with the launch of 50 HP tractor in technical
collaboration with SAME of
In 1999-2000,
Rajasthan Polymers & Resins was merged with the company. The tractor
business was transferred in the joint venture company SAME Greaves Tractors,
formed in collaboration with SAME Deutz FAHR SpA of Italy and SAME Deutz Fahr
Holding and
The company had
made a reference to BIFR due to erosion of its networth. It has also decided to
give major thrust to its own manufacturing Diesel Engines, Gear Boxes, and
Construction Equipments and trading. It also planning to add new product ranges
for trading business.
In 2000-01 the
company has exited from the business venture with Piaggio Greaves Limited and
SAME Greaves Limited. As there was a heavy debt owed by erstwhile RPRL the
operations of the unit is under suspension and the company is also proposing
for a OTS of RPRL debts with the secured lenders.
WEBSITE DETAILS
Greaves - A
multi-faceted Engineering Enterprise
Greaves Cotton
Limited, established in
1859, is one of
The Business Groups are:
|
Business
Groups |
Product Lines |
|
Power
Generation Group |
Large Diesel
Engines, Generating Sets up to 1000 kva |
|
Agro Equipment Group |
Petrol / Kerosene
Engines: 1 to 4 HP, Gensets, Pump sets and Power Tillers |
|
Light
Engines Group |
Diesel Engines :
4.4 to 11 HP |
|
Infrastructure
Equipment |
Concreting Pumps,
Transit Mixers, Vibratory Compactors and Crucibles |
Besides the Business Groups, Greaves has an independent Division marketing high
technology systems for marine, aviation and electronic applications.
In the recent years, Greaves has made rapid strides towards globalization. The
Company exports several of its products to various countries.
Greaves has 6 Manufacturing Units located all over
An extensive sales and service network manned by highly skilled and dedicated
workforce keeps Greaves in touch with its customers anytime, anywhere.
To manufacture and market a wide range of high
quality products, services and systems of world class technology to the total
satisfaction of customers in domestic and overseas markets
March 7, 2007
Greaves Cotton acquires Bukh-Farymann Diesel,
Greaves Cotton Limited, one of
Bukh-Farymann is a profit making Company, engaged in the manufacture and
marketing of Farymann diesel engines and components thereof with an annual
turnover of Rs.50 crores approx. The name of the Company is being changed to
Greaves Farymann Diesel GmbH. Mr. Rainer Stuermer will continue as the Managing
Director. This acquisition will accelerate Greaves foray into global markets
including exports.
Commenting on the deal, Mr. P. Sachdev, Managing Director & CEO, Greaves
Cotton Limited said, “This acquisition fits well into our business strategy to
move aggressively into global markets. The synergies which Greaves can bring
from
Bukh-Farymann manufactures single cylinder diesel engines with applications in
construction machinery, generating sets, marine and defence equipment. Greaves
in
Farymann diesel engines incorporate unique design features and are lightweight
and fuel-efficient. Manufactured in the 5 to 15 HP range, at a well-equipped
facility at Lampertheim in
Greaves is a multi-product, multi-locational company with core competencies in
the areas of diesel engines and infrastructure equipment. The Company sustains
its leadership through eight manufacturing units which produce world class products
backed by comprehensive marketing and service / parts network throughout the
country.
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 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 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|