MIRA
INFORM REPORT
|
Report Date : |
05.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BUNGE INDIA PRIVATE LIMITED |
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Registered Office : |
B-104 and 501, Business Square, Andheri – Kurla Road, Chakala, Andheri
(East), Mumbai – 400093, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.10.1997 |
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Com. Reg. No.: |
17-174267 |
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CIN No.: [Company
Identification No.] |
U15421MH1997PTC174267 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of de oil cake from soyabeen, extraction of oil and by
Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2900000 |
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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 part of Bunge, USA. Available information indicates high
financial responsibility of the company. Trade relations are fair. Payments
are correct and as per commitments. It can be considered good for normal business dealings at usual trade
terms and conditions. |
INFORMATION PARTED
BY (GENERAL DETAILS)
|
Name : |
Mr. Piush |
|
Designation : |
Accounts Department |
|
Date : |
29.07.2008 |
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Note: |
Rest information denied by Mr. Chandran Warries (Finance Manager) |
LOCATIONS
|
Registered Office : |
B-104 and 501, Business Square, Andheri – Kurla Road, Chakala, Andheri
(East), Mumbai – 400093, Maharashtra |
|
Tel. No.: |
91-22-40509898/ 99 |
|
Mobile No.: |
91-9928491551 |
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Fax No.: |
91-22-40509500 |
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E-Mail : |
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Corporate/Head Office : |
The IL and FS Financial Centre, 7th Floor, Quadrant D, Plot
C-21, G Block, BKC Bandra (West), Mumbai – 400051, Maharashtra, India |
|
Tel No.: |
91-22-55519500 |
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Fax No.: |
91-22-55519699 |
|
Email : |
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Factory : |
N.H. 12, P.O. Ramganj, Balaji District Bundi, Jaipur – 323001,
Rajsthan, India |
|
Tel No.: |
91-747-2444840 |
|
Fax No.: |
91-747-2444525 |
DIRECTORS
|
Name : |
Mr. Sudhakar Rao |
|
Designation : |
Director |
|
Address : |
203, Odyssy – 1, Hiranandani Garden Powai, Mumbai – 400076,
Maharashtra, India |
|
Date of Birth/Age : |
28.10.1962 |
|
Date of Appointment : |
24.12.2004 |
|
|
|
|
Name : |
Mr. Churistopher White |
|
Designation : |
Director |
|
Address : |
15 A, Swettenham Road, Singapore – 248103 |
|
Date of Birth/Age : |
12.06.1952 |
|
Date of Appointment : |
28.04.2003 |
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|
|
|
Name : |
Mr. Hunter Cooper Smith |
|
Designation : |
Director |
|
Address : |
No.1 Winchester Road, Singapore – 117776 |
|
Date of Birth/Age : |
24.03.1968 |
|
Date of Appointment : |
24.12.2004 |
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|
|
|
Name : |
Mr. Sidhant Khisla |
|
Designation : |
Director |
|
Address : |
1901 B, Beverly Park II, Gurgaon Mehrauli Road, DIF Phase II, Gugaon
122002, India |
|
Date of Birth/Age : |
06.12.1957 |
|
Date of Appointment : |
24.12.2004 |
|
Date of Ceasing : |
31.05.2005 |
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|
|
|
Name : |
Mr. Anil Aggarwal |
|
Designation : |
Director |
|
Address : |
13, Paschimi Marh, Vasant Vihar, New Delhi – 110057, India |
|
Date of Birth/Age : |
20.05.1958 |
|
Date of Appointment : |
24.12.2004 |
KEY EXECUTIVES
|
Name : |
Mr. N. Ramakrishnan |
|
Designation : |
Company Secretary and Finance Controller |
|
Address : |
A-12, Sudarshan C. H. S, Plot No.38, Sector 17, Vashi, Navi Mumbai –
400705, India |
|
Date of Birth/Age : |
03.04.1963 |
|
Date of Appointment : |
15.10.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Bunge Mauritius Limited |
|
14799237 |
|
Mr. Sudhakar Rao Desai |
|
25 |
|
|
|
|
|
Total |
|
14799262 |
(As on 31.03.2007)
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holding (FIIs, FCs, FFIs, NRIs, OCB or Others ) |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of de oil cake from soyabeen, extraction of oil and by
Products. |
GENERAL
INFORMATION
|
No. of Employees : |
400 |
|
|
|
|
Bankers : |
Not Available |
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Banking
Relations : |
- |
|
|
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
12 Dr. Annie Besant Road, Opposite, Shiv Sagar Industrial Estate,
Worli, Mumbai – 400018, Maharashtra, India |
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|
|
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Holding Company : |
Bunge Mauritius Holding Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14799262 |
Equity Shares |
Rs.10/- each |
Rs.147.993 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
147.993 |
147.993 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
426.782 |
573.942 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
574.775 |
721.935 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
2508.882 |
1283.000 |
|
|
TOTAL BORROWING |
|
2508.882 |
1283.000 |
|
|
DEFERRED TAX LIABILITIES |
|
40.393 |
53.235 |
|
|
|
|
|
|
|
|
TOTAL |
|
3124.050 |
2058.170 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
802.186 |
1085.964 |
|
|
Capital work-in-progress |
|
17.548 |
9.368 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.020 |
0.026 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
2047.368
|
1159.771 |
|
|
Sundry Debtors |
|
22513.465
|
13902.910 |
|
|
Cash & Bank Balances |
|
1060.915
|
955.935 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
474.330
|
366.201 |
|
Total
Current Assets |
|
26096.078
|
16384.817 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
23786.371
|
15431.943 |
|
|
Provisions |
|
20.399
|
15.685 |
|
Total
Current Liabilities |
|
23806.770
|
15447.628 |
|
|
Net Current Assets |
|
2289.308
|
937.189 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
14.988 |
25.623 |
|
|
|
|
|
|
|
|
TOTAL |
|
3124.050 |
2058.170 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
|
55012.760 |
40940.170 |
|
|
Other Income |
|
0.000 |
0.000 |
|
|
Total Income |
|
55012.760 |
40940.170 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
(157.007) |
(73.113) |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
(157.007) |
(73.113) |
|
|
|
|
|
|
|
|
Export Value |
|
45869.786 |
32355.490 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Depreciation & Amortization |
|
174.350 |
203.810 |
|
|
Other Expenditure |
|
54995.417 |
40809.473 |
|
Total Expenditure |
|
55169.767 |
41013.283 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
(0.29)
|
(0.18) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(0.29)
|
(0.18) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(0.58)
|
(0.42) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.27)
|
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
45.78
|
24.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.10
|
1.06 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
The Registered Office of the company has been shifted from The IL and FS
Financial Centre, 7th Floor, Quadrant D, Plot C-21, G Block, BKC
Bandra (West), Mumbai – 400051, Maharashtra, India, to the present address w.e.f.
01.10.2007
Company Profile:
Subject is a part of large American Multinational Company Bunge
Limited. Company is one of the largest agribusiness and food processing company
in the world with integrated operations that circle the globe, stretching from
the farm field to t.
Unit Profile
Brief Factory History:
The
Trichy factory was started in 1949 by a company called Mettur Chemicals and was
acquired by Hindustan Vanaspati Manufacturing Company Limited (HVMCL) in
1952.The latter was merged with Lever Brothers in 1956 to form Hindustan Lever
Limited in 1974, the factory was shut down as certain government regulations
rendered the operations unviable. The factory was reopened in 1978 and was
transferred to Lipton India Limited in 1984. Subsequently, Lipton India Limited
merged with Brooke Bond India to form Brooke Bond Lipton India Limited in 1994.
In 1997, this company was merged with Hindustan Lever Limited.In August 2003 Hindustan
Lever Limited divested its Vegetable Oils and Fats business in favour of Bunge
and cosequently this Unit has come into the fold of Bunge India Private Limited
At the
time of purchase by HVMCL in 1952, the factory had a capacity to manufacture of
100 Tons per week of Vanaspati (Partially Hydrogenated Vegetable Fat) under the
brand name Dalda. During the period 1956 to 1974, HLL introduced a number of
changes. In 1964 Vim detergent powder production was started and Karanja and
Castor oil processing was also done for a short time. In 1975 during the
factory closure Animal feeds unit was set up at the site though as a separate
factory. When the Dalda Vanaspati production was restarted in 1978, almost 60%
of the workers were former employees or their sons.
The last
two decades have seen a lot of growth at Trichy factory. Dalda refined
Groundnut Oil production was started in 1981. In 1982, speciality fats
production for bakery applications was started under a category called
Professional Markets Group (PMG). The first capacity expansion in 1984
increased the capacity to 9500 TPA (Tons per annum). Flora refined Sunflower
Oil production was started in 1986 and in 1988 / 1989 there was another
capacity expansion to 20500 TPA. The nineties have seen the production capacity
increase to the current level 40000 TPA. The current product mix includes Dalda
Vanaspati, Dalda Activ (Interesterified Vegetable Fat), Bakery Margarine,
Bakery Shortening. Other products like Vim, Flora Refined Sunflower Oil and
Dalda Refined Ground Nut Oil operations have been discontinued.
Overall,
the factory has grown from a 5000TPA factory when it restarted in 1978 to a
40000 TPA capacity factory by 2002.
Site Information:
The
factory is located about 4 km from Tiruchirapalli (Trichy) centre on the
Madurai highway in the state of Tamil Nadu. Trichy has a population of about 1
million and the local language is Tamil. Trichy is well connected by road, rail
to all major cities in India and the local airport also handles International
flights from Sri Lanka and the Middle East. Trichy is about 330 km from Chennai
the state capital about 400 km from Bangalore where the company’s corporate
office is located.
The
factory is located on a 174000 sq. m plot bound on one side by the Trichy -
Madurai Highway and a railway line on the opposite side. It is surrounded with
residential areas on the other sides, which have sprung up in the last few
years. The factory is adjacent to the
Edamalaipatti
Pudur village and is in the midst of agricultural land. There is no major
factory or industry within a radius of about 4 Km and the nearest railway
station is Trichy Junction, which is 4km from the factory. There are two medium
scale undertakings, one producing leather chemicals and other making industrial
meters about one kilometer away from their factory.
Manpower:
The
factory is manned by 194 permanent workers in addition to 15 monthly rated
staff, 11 executivess and 8 Managers. In addition there are about 160 contract workmen
engaged in various duties like ETP cleaning, Packing material and chemical
handling, Housekeeping, Maintenance, Security, Canteen, Loading / Unloading of
materials and finished goods, gardening.
The
factory operates on a 3 shift basis on all days throughout the year. The
general shift employees have their weekly off on Sundays, while shift employees
have staggered off.
Bunge India to enter sugar manufacturing
Plans 7,000 tpd capacity in first phase
Ambarish Mukherjee
Chennai,
Sept. 21 Bunge India Private Limited manufacturer of the Dalda brand of
vegetable oils, has firmed up plans to enter the sugar industry and is planning
to acquire sugarcane crushing capacities in south India.
The
company has set a target cane crushing capacity of 7,000 tonnes per day (tpd)
in the first phase along with cogeneration of power and ethanol, the company
Managing Director, Mr. Adhiraj Sarin, told Business Line.
Bunge
India is the Indian subsidiary of US-based $26-billion Bunge Limitedf having
over 450 manufacturing units spread over 32 countries. In India, the company
currently operates nine manufacturing units spread over eight States.
Target
states
“We
are looking in three States in particular — Karnataka, Tamil Nadu and Andhra
Pradesh for the sugar unit,” Mr. Sarin said.
The
total project cost is estimated at around Rs.3000.000 Millions. “We are yet to
finalise the debt-equity ratio and there is strong possibility that we would be
funding the project through internal accruals only,” he said.
Bunge
India registered a turnover of around Rs.11000.000 Millions in 2006-07 and the
target for 2007-08 is Rs 15000.000 Millions, he said.
Sugar
biz
Explaining
the modalities of the company’s entry into the sugar business, Mr. Sarin said
that “we are exploring both the opportunities of a full fledged acquisition or
in partnership with a local partner”.
“We
have set the target that the sugar mill should start commercial operations
within one year. For that discussions are going on with many people but I would
not be able to divulge the names because of confidentiality agreements,” Mr.
Sarin said.
However,
while the company is looking at having a ready capacity of 7,000 tonnes per
day, it is open to the idea of acquiring smaller capacities with the necessary
infrastructure for expansion, he said.
New
Dalda range to add Bunge's growth
Mumbai, August 7
Mumbai: Agri-business and food company Bunge
India Private Limited expects its revenue to increase by 38 per cent in 2006
because of the growth in its existing brands and the launch of a new range of
the Dalda brand of edible oils.
Bunge India, a 100 per cent subsidiary of Bunge Ltd, had
acquired the Dalda brand from Hindustan Lever Limited in 2003. US-based Bunge
Limited has a turnover of $ 24.3 billion (2005).
Rs.11000.000 Millions turnover
Mr. Adhiraj Sarin, Managing Director of Bunge India,
addressing the media at the launch of a new range of edible oils, said that in
2005 the turnover of the company was Rs.8000.000 Millions and in 2006 it is
expected to grow to Rs11000.000 Millions.
India is our most important vegetable oil market and one of
the four growth opportunities along with Brazil, China and countries of the
former Soviet Union, he said.
Veg oil market
Mr. Sarin said that India has an Rs.700000.000 Millions -
vegetable oil market, having consumption base of 12.5 tonnes. It is growing at
the rate of 4.5 per cent per annum. Soyabean oil consumption is 2.9 tonnes in
2005 and it is estimated to grow at six per cent per annum. By 2010 it would be
3.9 tonnes. Bunge's focus would be to expand the edible oil business with
special emphasis on soyabean oil, besides expanding the value chain, he said.
Mr. Sarin added that in the current year, Bunge India
expects more than 60 per cent of its revenue to come from Vanaspati, which it
sells under the Dalda brand, and the balance to come from refined oils.
The company does not have any capital investments plans for
the next three years and would concentrate more on its marketing efforts.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.42.54 |
|
UK Pound |
1 |
Rs.84.86 |
|
Euro |
1 |
Rs.66.95 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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. |
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 |
|