MIRA
INFORM REPORT
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Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
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Name : |
HAVELLS INDIA
LIMITED |
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Registered Office : |
1/7, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.08.1983 |
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Com. Reg. No.: |
55-16304 |
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CIN No.: [Company
Identification No.] |
L00000DL1983PLC016304 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELH00196A |
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Legal Form : |
Public Limited Liability
Company. The company’s shares are listed on the stock exchanges. |
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Line of Business : |
Manufacturer of
Electrical Products |
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 7000000 |
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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 and reputed company having fine track. Directors are reported as
experienced, respectable and having satisfactory means of their own. Their
trade relations are reported as fair. Business is active. Payments are reported
as usually correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
1/7, |
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Tel. No.: |
91-11-23935237 |
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Fax No.: |
91-11-23921500 |
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E-Mail : |
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Website : |
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Corporate Office / Centre For Research & Innovation (CRI) : |
E-1, Sector-59, Noida-201 307, |
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Tel. No.: |
91-120-2247777 |
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Fax No.: |
91-120 - 2583904 / 2588182 / 2477666 |
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E-Mail : |
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Factory : |
Domestic Switchgear
Division - Road No. 9, Samepur Badli, - Distt. Solan, Baddi, Himachal Pradesh Industrial Switchgear
Division - 14/3, Cable Division - A/461-462, Matsya Industrial Area, Alwar,
Rajasthan - SP-215, Matsya Industrial Area, Alwar, Rajasthan CFLs Division - 14/3, - Plot No.2A, Sector -10, Sidcul, BHEL Indl. Estate, Haridwar,
Uttranchal Fan Division - Plot No.2A, Sector -10, Sidcul, BHEL Indl.
Estate, Haridwar, Uttranchal -
G-470 / 471, RIICO Indl. Area, Bhiwadi,
Rajasthan. Meter Division - 6, Tilak Nagar Industrial Area, |
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Representative Offices : |
Bareilly, Bhopal, Bilaspur, Bakaro, Goa, Gorakhpur, Gwalior, Hubli, Jabalpur,
Jalgaon, Jodhpur, Kakinada, Kathmandu, Kota, Kottayam, Kozhikode, Lucknow,
Ludhiana, Madurai, Mangalore, Meerut, Nasik, Patna, Raipur, Rishikesh, Salem,
Siliguri, Surat, Trichy, Thiruvananthapuram, Udaipur, Vishakapatnam |
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Branches : |
NORTH : Dehradun Haryana Jaipur EAST : Bhubaneshwar Guwahati Kolkata WEST : Ahmedabad Mumbai Pune SOUTH : Chennai |
DIRECTORS
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Name : |
Mr. Qimat Rat Gupta |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
24.01.1937 |
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Qualification : |
B.A. |
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Experience : |
46 Years |
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Date of Appointment : |
08.08.1983 |
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Other Directorship : |
v
Havell's India Limited v
TTL Limited v
QRG Enterprises Limited v
Standard Electricals Limited v
Havell's Financial Services Limited |
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Name : |
Mr. Anil Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
20.04.1969 |
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Qualification : |
B.A. (Economics) MBA (Marketing and Finance) from |
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Other Directorship : |
v
Havell's India Limited v
TTL Limited v
QRG Enterprises Limited v
Havell's Switchgears Private Limited v
Standard Electricals Limited v
Havell's Financial v
Services Limited v
Havell's ( |
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Name : |
Mr. Surjit Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
13.01.1942 |
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Qualification : |
F.Sc. from |
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Other Directorship : |
v
Havell's India Limited v
TTL Limited v
QRG Enterprises Limited v
Havell's Switchgears Private Limited v
Havell's Financial Services Limited |
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Name : |
Mr. Rajesh Gupta |
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Designation : |
Director (Finance) |
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Date of Birth/Age : |
17.06.1957 |
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Qualification : |
Qualified Chartered Accountant (F.C.A) |
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Experience : |
25 Years |
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Date of Appointment : |
01.12.1980 |
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Other Directorship : |
v
Havell's India Limited v
Anekant Consulting Private Limited |
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Name : |
Mr. Avinash P. Gandhi |
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Designation : |
Director |
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Date of Birth/Age : |
01.10.1938 |
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Qualification : |
B. E. (Mechanical) |
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Name : |
Mr. Richard Owen Pyvis |
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Designation : |
Director |
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Date of Birth/Age : |
04.02.1954 |
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Name : |
Ms. Sabine Geyer |
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Designation : |
Director |
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Date of Birth/Age : |
27.05.1960 |
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Qualification : |
Bachelor of
Arts, International Business Dipl- Betriebswirt (equiv. M.A.) |
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Name : |
Ms. Josephine Price |
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Designation : |
Alternate Director |
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Name : |
Dr. Abid Hussain |
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Designation : |
Director |
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Date of Birth/Age : |
26.12.1926 |
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Qualification : |
M.A. |
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Other Directorship : |
v
Havell's India Limited v
Hyderabad Flextech Limited v
Morgan Stanley Asset Management (I) Limited v
Nagarjuna Oil Corp. Limited v
GVK Industries Limited v
GVK Taj Hotels & Resorts Limited v
Zodiac Clothing Company Limited v
Wockhardt Limited v
Shree. Qement Limited |
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Name : |
Mr. S.B. Mathur |
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Designation : |
Director |
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Date of Birth/Age : |
11.10.1944 |
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Qualification : |
Chartered Accountant |
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Date of Appointment : |
v
Havell's India Limited v
The National Stock Exchange of India Limited v
EID Parry (I) Limited v
Grasim Industries Limited v
IL&FS Limited v
Munich Re India Services Private Limited v
National Collateral Management Services Limited v
ITC Limited v
UTI Bank Limited v
Indian Railway Catering's Tourism Corporation
Limited v
UTI Technology Services Limited v
UTI Infrastructure & Services Limited |
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Name : |
Maj. Gen. D.N. Khurana |
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Designation : |
Director |
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Date of Birth/Age : |
15.05.1935 |
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Qualification : |
M.Sc. B. (Tech) |
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Other Directorship : |
v
Havell's India Limited v
Cadila Pharmaceuticals Limited |
KEY EXECUTIVES
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Name : |
Ms. Ritu Mehrotra |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals / Hindu Undivided Family |
12635738 |
23.50 % |
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Bodies Corporate |
23551688 |
43.81 % |
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Public Share
Holding |
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Institutions |
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Mutual Funds/ UTI |
2116246 |
3.94 % |
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Financial Institutions / Banks |
11290 |
0.02 % |
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Foreign Institutional Investors |
8041571 |
14.96 % |
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Non-institutions |
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Bodies Corporate |
2277540 |
4.24 % |
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Individuals holding nominal share capital < = Rs. 0.100 Millions |
4686801 |
8.72 % |
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Individuals holding nominal share capital > Rs. 0.100 Millions |
437532 |
0.81 % |
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TOTAL |
53758406 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Electrical Products |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Domestic Switch gear |
Nos |
33600000 |
18618083 |
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Industrial Switchgear |
Nos |
1800000 |
1729342 |
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EWA |
Nos |
6000000 |
2780653 |
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Meters |
Nos |
840000 |
512007 |
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Cable & Wires |
Km. |
470000 |
285642 |
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Electrical Consumer
Durables |
Nos. |
22400000 |
14946902 |
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Bathfittings |
Nos |
750000 |
686810 |
GENERAL INFORMATION
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Bankers : |
Canara Bank Janpath, New Delhi-110 001 Corporation Bank K.G. Marg, New Delhi-110 001 State Bank of IFB, 1, Tolstoy Marg, New Delhi-110 001 IDBI Bank Limited K.G., New Delhi-1 10 001 UTI Bank Limited Statesman, New Delhi-1 1 0 001 Standard Chartered Bank Metro Union Bank of IFB, New Delhi-1 10 001 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V.P. Bansal &
Company Chartered
Accountants |
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Address : |
B-1, Sector – 2, Noida |
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Associates/Subsidiaries : |
QRG Enterprises Limited TTL Limited Standard Electricals Limited Havell's Financial Services Limited Havell's Switchgears Private Limited Guptajee & Company QRG Foundation Havell's ( |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs. 5/- each |
Rs. 200.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24891398 |
Equity Shares |
Rs. 5/- each |
Rs. 124.457
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24891398 |
Equity Shares |
Rs. 5/- each |
Rs. 124.457
Millions |
|
1987805 |
Equity Shares |
Rs. 5/- each |
Rs. 9.939
Millions |
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Total |
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Rs. 134.396 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
134.396 |
57.956 |
57.956 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
1625.665 |
808.200 |
535.701 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1760.061 |
866.156 |
593.657 |
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LOAN FUNDS |
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1] Secured Loans |
1085.424 |
1420.860 |
934.641 |
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2] Unsecured
Loans |
13.031 |
321.360 |
83.101 |
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TOTAL BORROWING
|
1098.455 |
1742.220 |
1017.742 |
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DEFERRED TAX LIABILITIES |
95.338 |
74.145 |
43.263 |
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TOTAL
|
2953.854 |
2682.521 |
1654.662 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1464.318 |
881.968 |
435.558 |
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Capital work-in-progress
|
67.660 |
41.338 |
27.546 |
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INVESTMENT
|
31.658 |
31.658 |
31.658 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
1906.179
|
1060.753 |
561.304 |
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Sundry Debtors
|
1281.669
|
1636.225 |
1127.894 |
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Cash & Bank Balances
|
83.330
|
81.800 |
66.148 |
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Other Current Assets
|
86.422
|
14.951 |
3.673 |
|
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Loans & Advances
|
358.292
|
244.969 |
184.707 |
Total Current Assets
|
3715.892
|
3038.698 |
1943.726 |
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Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
2112.878
|
1182.199 |
680.646 |
|
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Provisions
|
213.270
|
129.049 |
103.327 |
Total Current Liabilities
|
2326.148
|
1311.248 |
783.973 |
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Net Current Assets
|
1389.744
|
1727.450 |
1159.753 |
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MISCELLANEOUS EXPENSES
|
0.474 |
0.107 |
0.148 |
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TOTAL
|
2953.854 |
2682.521 |
1654.662 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
11151.364 |
6658.840 |
4268.237 |
|
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Other Income |
35.487 |
28.927 |
-- |
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Total Income |
11186.851 |
6687.767 |
4268.237 |
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Profit/(Loss) Before Tax |
784.860 |
432.270 |
301.051 |
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Provision for Taxation |
152.788 |
127.006 |
91.440 |
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Profit/(Loss) After Tax |
632.072 |
305.264 |
209.611 |
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Earnings in Foreign Currency : |
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Export Earnings |
728.081 |
484.136 |
211.557 |
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Total Earnings |
728.081 |
484.136 |
211.557 |
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Imports : |
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Raw materials and
components |
912.431 |
222.341 |
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Machinery |
59.294 |
45.222 |
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Spare parts |
1.084 |
1.425 |
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R&D |
0.489 |
0.000 |
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Total Imports |
973.298 |
268.988 |
118.634 |
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Expenditures : |
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Materials cost |
5821.343 |
3327.462 |
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Excise duty |
1114.491 |
834.222 |
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Manufacturing
expenses |
1052.309 |
647.668 |
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Office and
administration expenses |
603.026 |
388.249 |
3967.186 |
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Selling and
distribution expenses |
1578.126 |
887.126 |
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Financial
expenses |
226.048 |
165.192 |
|
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|
Managerial
remuneration |
6.196 |
5.379 |
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|
Miscellaneous
expenditure written off |
0.231 |
0.041 |
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Wealth tax |
0.221 |
0.160 |
|
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Total Expenditure |
10401.991 |
6255.499 |
3967.186 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
3417.700 |
3742.400 |
3909.000 |
|
Other
Income |
13.700 |
4.500 |
10.400 |
|
Total
Income |
3431.400 |
3746.900 |
3919.400 |
|
Total
Expenditure |
3096.400 |
3390.500 |
3542.400 |
|
Operating
Profit |
335.000 |
356.400 |
377.000 |
|
Interest |
51.000 |
38.900 |
44.200 |
|
Gross
Profit |
284.000 |
317.500 |
332.800 |
|
Depreciation |
21.100 |
22.400 |
23.800 |
|
Tax |
34.100 |
40.800 |
43.800 |
|
Reported
PAT |
225.800 |
243.100 |
258.000 |
Notes
200606
Quarter 1 –
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (288.10)million Consumption of Raw Materials Rs 2302.80 million Staff Cost
Rs 118.60 million Other Expenditure Rs 963.10 million Tax includes Provision
for Income Tax Rs 30.00 million Fringe Benefit Tax Rs 4.10 million Deferred Tax
Rs 3.00 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 Nil Complaints disposed off during the
quarter Nil Complaints unresolved at the end of the quarter Nil 1. Due the
Amalgamation of Crabtree India Limited with the Company the figures for the
current period are not comparable with the previous corresponding periods. 2.
The figures of the previous year/period have been regrouped and adjusted
wherever required. 3. The Basic and Diluted EPS of all the previous period has
been restated as per Accounting Standard-20 (Earning Per share) issued by the
Institute of Chartered Accountants of India as the number of equity shares
outstanding increases as a result of bonus issue. The diluted EPS has been
calculated on the basis of Bonus Shares to be issued in the ratio of 1:1. 4.
There was fire at Haridwar Works, it has no adverse impact on profitability as
all assets are fully insured. 5. These results are limited reviewed by the
Auditors of the Company. 6. The above results were taken on record in the
meeting of the Board of Directors held on July 20, 2006.
200609
Quarter 2 –
EPS is Basic 1.The figures of the previous year/ period
including figures of amalgamated company i.e. Crabtree India Limited have been
regrouped and re-arranged wherever required to make it comparable with
corresponding current year / period. 2. Information on investors grievances for
the quarter : (in Nos.) : Opening Balance - 0, New - 1, Disposal - 1, Closing
Balance - 0 3.The Basic and Diluted EPS of all the previous period has been
restated as per Accounting Standard-20 (Earning Per Share) issued by the
Institute of Chartered Accountants of India. 4. These results are limited
reviewed by the Auditors of the Company. 5. The above results were taken on
record in the meeting of the Board of Directors held on October 26, 2006
200612
Quarter 3 –
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (45.30)million Consumption of Raw Materials Rs 2509.50 million Staff Cost Rs
127.80 million Other Expenditure Rs 950.40 million Tax includes Provision for
Income Tax Rs 39.60 million Fringe Benefit Tax Rs 4.20 million Deferred Tax Rs
7.20 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 04 Complaints disposed off during the
quarter 04 Complaints unresolved at the end of the quarter Nil 1. The figures
of the previous period including figures of amalgamated Company i.e. Crabtree
India Limited have been regrouped and re-arranged wherever required to make it
comparable with corresponding current year / period. 2. The Basic and Diluted
EPS of all the previous period has been restated as per Accounting Standard-20
(Earning Per share) issued by the Institute of Chartered Accountants of India.
3. The above results are limited reviewed by the Auditors of the Company. 4.
The above results were taken on record in the meeting of the Board of Directors
held on January 20, 2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.09 |
1.89 |
1.96 |
|
Long Term Debt Equity Ratio |
0.52 |
0.96 |
0.86 |
|
Current Ratio |
1.27 |
1.39 |
1.38 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
8.12 |
8.34 |
8.70 |
|
Inventory |
7.47 |
8.20 |
9.18 |
|
Debtors |
7.60 |
4.81 |
4.18 |
|
Interest Cover Ratio |
4.47 |
3.62 |
2.91 |
|
Operating Profit Margin (%) |
9.70 |
9.59 |
10.40 |
|
Profit Before Interest and Tax Margin (%) |
9.12 |
8.98 |
9.77 |
|
Cash Profit Margin (%) |
6.28 |
5.20 |
5.10 |
|
Adjusted Net Profit Margin (%) |
5.70 |
4.59 |
4.47 |
|
Return on Capital Employed (%) |
37.05 |
28.32 |
27.60 |
|
Return on Net Worth (%) |
48.32 |
41.82 |
37.35 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.498.35/- |
|
Low |
Rs.490.00/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
-
-
Factory buildings
-
Office premises
-
Plant and machinery
-
Dies and Tools
-
Generators
-
Furniture and fixtures
-
Electric fans and installations
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Water supply installations
-
Weighing scale
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EDP Equipments
-
Office equipments
-
Air conditioners
-
Vehicles
-
R & D Block
History
Promoted by Qimat Rai Gupta and S K Gupta, Havell's
In 1991-92, the company made additions to its facilities to manufacture plastic
distribution boards (PDBs) and earth-leakage circuit-breakers (ELCBs). To
manufacture ELCBs, the company entered into another technical collaboration
with
In 1996 the company has entered into the manufacture of low tension power
cables, it acquired an existing cable manufacturing plant in Alwar, Rajasthan,
belonging to a sick unit from Rajasthan State Industrial Development &
Investment Corporation (RIICO).
During 1998-99, the company has tied up with Deutsche Zahler Gesselchaft (DZG)
germany in its sister concern TTL Limited, for manufacturing single and three
phase Ferraris Meters for the indian and export markets and the same are to be
exported back to germany.
In Apr.'2000, the company acquired 60% stake in Standard Electricals Limitedand
in Nov. 2000, it acquired a 60% equity stake in Duke Arnics Electronics Limited
During Sep'04, the company has incorporated a Wholly owned subsidiary in the
During 2004-05 the company has enhanced its installed capacity of Domestic
Switchgears, Industrial Switchgears, Cable & Wires and Electrical Consumer
Durables by 12650000 Nos, 222000 Nos, 7500 Kms and 2000000 Nos respectively.
With this expansion the total installed capacity of Domestic Switchgears,
Industrial Switchgears, Cable & Wires and Electrical Consumer Durables has
increased to 27300000 Nos, 1335000 Nos, 465000 Kms and 13200000 Nos
respectively.
In January 2004 the company has sub-divided its equity share face value from
Rs.10/- per share to Rs.5/- per share. During August 2005 the company has
issued bonus equity shares to its shareholders in the ratio of 1:1.
The company has set up a new 50000 Square meter manufacturing facility for
MCB's and other switchgear products in green environ at Baddi, Distt Solan,
Himachal Pradesh. The company has also set up
The company has launched a complete range of indoor and outdoor lighting
fixtures under the brand name 'Havell's''. Further the company has also
launched the complete range of ceiling and table, pedestal and wall fans.
Performance of the Company
This year, the Company has again given a tremendous performance. The turnover
of the Company has increased by 67.47% from Rs.6658.800 Millions in the last
Financial Year to Rs.11151.400 Millions in current financial year (including
the financial results of Crabtree India Limited). The Net Profit of the company
has also increased by more than 100% from Rs.305.300 Millions in previous year
to Rs.632.100 Millions in Current Year.
Havell's is today one of the largest Indian electrical products company
manufacturing building circuit protection equipment, Industrial Switchgears,
Cables & Wires, Energy Meters, Fans, CFLs, Lighting Fixtures, etc. With the
merger of Crabtree India Limited, Modular Switches and bath fittings products
are also included in the Havell's product range.
Switchgear Division
Havell's is the largest manufacturers of MCBs, RCCBs, and Distribution Boards
in
Electrical Wire Accessories
Electrical Wire Accessories include modular plate switches and sockets,
manufactured under the brand 'Crabtree', a well established name in the Indian
electrical market. Crabtree is a leader in this segment for the past seven
years. With the merger of Crabtree India Limited with the Company effective
from 01-04-2005, the turnover of this product is included in the Switchgear
segment of the Company, which is Rs.519.400 Millions. It has introduced
complete new ranges namely 'Piccadilly' and 'Athena' in the current year.
The turnover of Switchgear Division during the current year is Rs.3303.800
Millions as compared to Rs.2172.500 Millions for the previous year.
Cable & Wire Division
The Company is recognised as quality manufacturers of cable & wires and
offers a complete range of low and high voltage PVC and XLPE cables, besides,
domestic FR/FRLS wires, Co-Axial TV and Telephone Cables. During the year, the
Company has expanded its production capacity almost to double. During the year
under review, the Company has installed CCV Lines for making high voltage
cables.
The cable division has shown growth of 52% as turnover of the unit has
increased to Rs.4651.600 Millions from the previous year's turnover of Rs.3069.700
Millions.
Electrical Consumer Durables Division
During the year, the Company has given a good performance in Electrical
Consumer Durable Division. The turnover of this unit has increased to
Rs.2744.100 Millions from the previous year's turnover of Rs.1313 Millions,
i.e. growth of approx. 109%.
CFLs
With the continuing power crisis and increasing electricity bills having
encouraged Indians,to shift to energy-efficient compact fluorescent lights
(CFLs).
During the year under review, the Company has completed the installation of a
state-of-the-art automatic plant for manufacturing Compact Fluorescent Lamps
(CFLs) at Haridwar. The commercial production at this plant has started in
January, 2006. The new plant at Haridwar & Baddi would uniquely position
the Company to become the largest manufacturer of CFLs in the
Country.
Havell's CFLs are marketed through the massive existing distribution network of
the Company backed by a comprehensive mass communication. The Company is currently
exporting CFLs to the neighboring countries like
Fans
To meet the growing demand of Havell's Fans, the Company installed a new plant
at Haridwar. Uttranchal which has a totally integrated facilities and has a
capacity of 2.4 million fans per annum. It is the largest plant in the Country
for Fan production. The production at this unit has started in October,
2005.
The company has introduced energy-saving fans under ES-50 brand in the market,
which consume only 50 Watts of power against 75 Watts consumed by ordinary
fans. This results in a 33 per cent power saving. Havell's launched various new
designs of fans in the market, which have captured the Customers' fancy.
Light Fittings
Havell's is again growing tremendously in this segment as they are giving new
and innovative products with technological advantage. The product range is very
comprehensive covering indoor domestic, commercial and outdoor
applications.
International Business
During the financial Year 2005-06 their Exports have grown by more than 50% to
Rs.728.100 Millions as compared to previous year figure of Rs.484.100 Millions
due to increase in awareness of Havell's brand globally with the Company
putting focus on international market.
The Company has its offices in
Centre for Research and Innovation
Innovation and Research is the foundation on which the future of any
manufacturing organization is built. Though the Company has R & D Facilities
in all its manufacturing plants, during the year the Company has set up a
Central R & D Facility in its Corporate Office premises at Noida which is
equipped with the latest equipments for testing, developing, prototyping etc.
and has employed over 70 engineers. This center is in addition to the
individual R & D cells in each factory and shall concentrate only on really
futuristic projects and totally new products and technology for the Company.
The initiative on R&D at Havell's is driven by the philosophy of owing
their own intellectual property.
Subsidiary Company
Havell's (
During the year under review, the Board of Directors decided to wind up
Havell's (
Industrial Overview
The year 2005-06 has been a year of sustained growth for the Indian economy as
well as for the company, so is the global story. The reason is massive
infrastructural developments and expansion of the existing networks across the
globe.
The economy's growth momentum has been driven by a dynamic industrial
resurgence, a pick-up in investment, modest inflation despite increasing global
prices of oil and steel, rapid growth in imports and exports with a widening of
the current account deficit, steps towards enhanced physical infrastructure,
progress in fiscal consolidation, and the launch of the National Rural
Employment Guarantee scheme for inclusive growth and social security.
The country is opening its economy and reaping the benefits of globalisation.
It now appears set for an extended period of rapid economic development, but
such an outcome is by no means assured.
The growth of global and Indian economies are based on solid fundamentals. Much
of that growth is taking place in the manufacturing sector. As a result, demand
is in the market and it is rising. It's good for the nation and the company
because it drives the growth on the higher path. For makers of electrical
equipment, demand has been driven by investment in infrastructure in the
developing world, particularly
The robust growth of manufacturing sector is set to fuel the growth as the
company serves this a slew of products. However, their growth is further
consolidated by constructive developments in the power sector, the construction
and real estate and outsourcing in manufacturing.
Over the past decade,
Overall Review
Aided by improved business environment, the Company performed well during
2005-06. The details of the performance are provided later in the report.
Notwithstanding the intense competitive pressure, the Company maintained its
leadership position in most of its business domestically and strengthened its
presence in select international markets. During the year, the Company had to
cope with increasing customer expectations, global competition and the pressure
on margins. The Company had to address the challenges of talent augmentation
resource optimization and value creation.
During the year, the Company undertook the following major initiatives to
enhance its value proposition:
Capital Re-organisation
During the year, the Company has issued and allotted Bonus Shares in the ratio
of 1:1 i.e one fully paid up Bonus Share for every one equity share of Rs.5/-
each. Consequently, on 8th August, 2005, the Company allotted 11591154 equity
shares of Rs.5/- each to all the shareholders whose names appeared on the
register of members as on 6th August, 2005.
During the year, the Company allotted 1709090 Equity Shares being a) 854545
Equity Shares of Rs.5/- each at a conversion price of Rs.275/- per share on
account of conversion of 235-4% Unsecured Fully Convertible Debentures of
Rs.10,00,000/- each and b) 854545 equity shares of Rs.5/- each as Bonus Shares
to Shine Limited, Mauritius.
Thrust on Export
Havell's, is focusing with great emphasis on international market. Towards realizing
the cream of becoming a truly global company, concentration is currently on the
first step of exporting products. Havell's is using its international partners
in this effort to make a major headway in International markets.
To promote and expand the Asian markets which have some synergies with Indian
style of buying, like in Srilanka, Bangladesh, Middle East, Africa, South East
Asia & Australia many distributors are appointed & brand promotion
activities have aggressively initiated during the year. International Business
Development (IBD) Team was also expanded to almost 150%, specially ensuring a
mix blend of professionals with rich International experience. This team
provides specialized sales, marketing, technical support and services to meet
the escalating requirements of modern day customers. During the year Havell's
strategy of selling diversified products in diversified market has made this
growth possible. The Company has stationed permanent employees in countries like
Srilanka,
'Havell's is committed to meeting the challenges of the new economy through
business ethics, global reach and technological expertise with a view to build
long-term relationship with all their associates, customers, partners and
employees.'
During the year, the Company achieved Rs.730 Millions as an export turnover as
compared to previous year's turnover of Rs.480 Millions, shows a growth of more
than 50%.
Expansion and New Projects
To avail the tax incentives and other benefits as announced by the Industrial
Policy of Himachal Pradesh and Uttranchal, the Company set up an absolutely new
unit at Haridwar, Uttranchal for manufacturing of Fans, CFLs, Luminaries. The
plant at Uttranchal is the largest plant in the Country for Fan production. The
production at this unit is started in October, 2005. The Company is also in
process of setting up an 100% Export Oriented Unit (EOU) at Baddi.
Value Creation
In addition the Company has taken certain initiatives to improve its value
creation potential. Some of these initiatives are:
- Improving the processes by benchmarking with the best in class for faster
delivery of superior quality products / services
- Focus-on products/ services which are at higher end of the value chain.
- Portfolio review of business to aggressively support businesses with
profitability growth potential and exit low value businesses.
- Thrust on Advertisement and other marketing strategy to increase the
volume of sale and goodwill of brand name
Segment Performance
The Company's major segments and their performance are as follows:
The Company is one of the largest Power Distribution Equipment and Consumer
Electrical Company in the Country. The turnover of the Company has increased by
67.47% from Rs.6658.800 Millions in the last Financial Year 2004-05 to
Rs.11151.400 Millions in this financial year. The Net Profit of the Company increased
from Rs.305.300 Millions to Rs.632.100 Millions during the year under
review.
QRG Group
QRG Group is stepping towards integrating all its companies. Under one common
entity, one common vision. QRG is committed to meet the challenges of the new
economy through business ethics, global reach and technology expertise, with a
view to build long-term relationship with all their customers, associates,
partners and employees. QRG is the holding company of all erstwhile Havell's
Group Companies, which includes - Havell's
During the year under review, the Company initiated the process of Amalgamation
of Crabtree India Limited (CIL) with Havell's India Limited (HIL). CIL was in
the business of dealing in various electrical products and bath fittings. The
Scheme of Amalgamation was proposed to consolidate the electrical and bath
fittings businesses of CIL and HIL. The amalgamation will facilitate
consolidation of the electrical and bath fittings businesses of both Companies
under single corporate operation & control. This Amalgamation brings to the
Company the benefits, inter alia, of consolidating its resources in the area of
core competence, synergy in sales and distribution operations. A strong
financial and operational structure will be capable of resource mobilisation
and financial consolidation necessary to withstand competition from domestic
and international sector and to deliver better value to their
shareholders.
Amalgamation of Crabtree India Limited with Havell's India
Limited
During the year under review, the Company initiated the process of Amalgamation
of Crabtree India Limited (CIL) with Havell's India Limited (HIL). CIL was in
the business of dealing in various electrical products and bath fittings. The
Scheme of Amalgamation was proposed to consolidate the electrical and bath
fittings businesses of CIL and HIL. The amalgamation will facilitate
consolidation of the electrical and bath fittings businesses of both Companies
under single corporate operation & control.
This Amalgamation brings to the Company the benefits, inter alia, of
consolidating its resources in the area of core competence, synergy in sales
and distribution operations. A strong financial and operational structure will
be capable of resource mobilisation and financial consolidation necessary to
withstand competition from domestic and international sector and to deliver
better value to their shareholders.
The Hon'ble High Court of Delhi at New Delhi, has sanctioned vide its Order dated
April 19, 2006 the Scheme of Amalgamation between CIL & HIL effective from
the Appointed date, i.e. 1st April, 2005. Consequent to that the object clause
related with dealings in bath fittings items of CIL has also been incorporated
in the main object clause of Memorandum of Association of the Company. Further,
the Authorised Share Capital of CIL has also been merged with the Authorised
Share Capital of the Company from Rs.150 Millions to Rs.200 Millions.
Pursuant to the said Scheme of Amalgamation, the Company has at,its Share
Transfer Committee Meeting held on 3rd May, 2006 allotted 1987805 Equity Shares
of Rs.5/- each at par credited as fully paid up to the shareholders of Crabtree
India Limited in the ratio of 100 Equity Shares of Rs.5/- each of Havell's
India Limited at par as on the effective date for every 246 equity shares of
Rs.10/- each of Crabtree India Limited.
ISO 9001:2000
Havell's is an ISO 9001:2000 certified Company following the best practices to
lead the organisation towards improved performance. Customer Focus, Leadership,
Involvement of People, Process Approach, System Approach to Management,
Continual Improvement, Factual Approach to Decision Making and Mutually
Beneficial Suppliers Relationship are the 8 quality management principles used
as a basis for all the operating systems of the Company leading to all its
plants being ISO 9001:2000 certified.
To highlight high quality standards Havell's also has prestigious international
approvals like KEMA, AENOR etc. for its products.
Website
Details Attached:
Overview:
Havell's has emerged as an independent medium sized company with
uncompromising ethical standards and a definite global perspective. It has defined
conventions and has evolved its very own remarkable structure -one that puts
decision maker in close contact with customers and quickly adapts to the rapid
changes in technology.
It began as a trading concern in 1958 and today is a major
manufacturer and supplier of the widest range of low voltage electrical
equipment catering to the needs of domestic and industrial market.
Havell's is now perceived as a single source for all the low
voltage electrical requirements. Most of its products have certification from
independent testing authorities, and it is a matter of pride that the company
is widely perceived as a quality manufacturer with a reputed brand image. Hence
its customers place an unconditional trust in us.
Manufacturing
Plants:
Badli Plant
Site : In
Products : Miniature circuit Breakers(MCB), Residual
Current Circuit Breakers(RCCB), Distribution Boards(DB) and High Rupturing
Capacity Fuses(HRC)
Collaboration : Geyer
AG,
Site : South of
Products : Contactors, Relays, CFL and Motor Starters (Controlgear)
Collaboration :
Tilak Nagar Plant
Site : In
Products : Three Phase energy meters(Meters)
Alwar Plant
Site : In Rajasthan, 160 km From
Products : PVC/XLPE, low tension underground cables,
telephone and co-axial cables, control cables, domestic wires
Noida Plant
Site : In East of Delhi, 5km from corporate office
Noida.
Products : Havell's fans and MCB.
News:
QRG Enterprises, QRG is Havell's in its new
reincarnation. With a new vision. New purpose. New dynamism.
QRG
Enterprises,
New Products
- Havells after taking over Polestar,
launches absolutely new range of Luminaries and CFP Chloro Flouroscent
Lamps.
- Havells brings to
- Crabtree launches the Stylish
& Fashionable range of Modular Switches (Piccadilly) and
QRG Enterprises entered
into a joint venture with F'lli Frattini of Italy, to lanuch bath fittings and
accessories in
Press Release
Havells
To Acquire US$ 594mn SLI
In
what will be the largest acquisition by an Indian electrical products company,
The
acquisition is expected to be financed with non-recourse debt facilities of
US$160mn and recourse facilities of US$105mn by way of loans/equity through
Havells subsidiaries (“Recourse Borrowers”) guaranteed by Havell's India.
Deutsche Bank Group is the financial advisor to Havells on the transaction.
Barclays Capital and State Bank of
Key
Highlights:
- US$300mn all-cash acquisition: Largest ever acquisition by an Indian
Electrical company
- The combined turnover of the two entities of nearly US$ 1 Billion
- Post acquisition nearly two-third of Havells consolidated revenues
to come from international markets
- SLI Sylvania’s 10 manufacturing plants located across Europe, Latin
America and
- Havells gets access to a strong brand & distribution network
with over 10,000 distributors/ dealers spread across the globe.
- Some of the
leading professional and consumer lighting brands like
Speaking on the occasion, Mr.
Qimat Rai Gupta- CMD, Havells said “
Paul Griswold, CEO of SLI
Sanjay Agarwal, Managing Director and
Head, Global Corporate Finance,
SLI Sylvania, which is headquartered in
This landmark acquisition provides Havells with the opportunity not only to expand
its product portfolio in the European, Latin American and other developed
markets of the west but also to launch
SLI Sylvania is the principal company behind many of the world's best known
professional and consumer lighting brands - including
About Havell's
Starting off as an electrical trading company in 1958, Havell's India Limited
today is an emerging leader and an end-to-end solution provider in the Power
Distribution Equipment industry. The company catering to the needs of domestic
and industrial market has seven manufacturing units in
Havells reach stretches across 43 branch offices, over 2000 authorized dealers
and thousands of approved retail outlets. The company has an enviable
clientele, not only in the domestic market, but also in international markets
like
Havells is acknowledged as a manufacturer & supplier of the widest range of
quality low voltage electrical equipment. With a number of strategic alliances
in place, Havells is the only company that has shown phenomenal growth rate
with the help of various joint ventures, acquisitions, mergers and takeovers.
Company’s income for the the nine months period ended December 2006 was at Rs.
11097.700 Millions With a Profit After Tax of Rs.727 Millions.
Inaugurates new world class manufacturing facility at Noida
Havell’s
India Limited , one of the fastest growing electrical and power distribution
equipment company in the country, today inaugurated its Capacitor Plant in Noida.
After the successful launch of Fans and CFLs two years back, the company has
now forayed into Capacitors segment. The new facility has an
installed capacity of 6,00,000 KVaR per month.
Initially,
the company plans to manufacture power factor improvement capacitors like
Normal Duty, Heavy Duty Extended Life and Super Heavy Duty Long Life Capacitors
and Agricultural Capacitors. In the second phase i.e September 07’ onwards the
company will roll out AC Capacitors and Harmonic filters.
Speaking
on the occasion of the inauguration, Mr Anil Gupta, JMD, Havell’s
“We
are aiming a leadership position in the low voltage capacitor market in the
next two-three years”, he further added.
Havell's Capacitors come with triple safety protection i.e. a triple sheild
with energy disconnecter in the event of any fault. The product would be
available in the market from the end of February through its strong existing
network of 1800 authorized dealers and 26000 retailers ensuring a strong
nationwide reach and easy availability for consumers.
While
Havell's switchgear products have offered consumers realms of electrical
safety, cables and wires ensure uninterrupted power supply, Havell's Capacitors
are designed to improve the power factor. These Low Voltage Capacitors improve
“Active Power” and reduce “Reactive Power” that helps in saving energy.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.60 |
|
|
1 |
Rs.80.65 |
|
Euro |
1 |
Rs.54.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
61 |
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 |
|