MIRA INFORM REPORT

 

 

 

Report Date :

04.12.2008

  

IDENTIFICATION DETAILS

 

Name :

ASAHI INDIA GLASS LIMITED

 

 

Registered Office :

12, Basant Lok, Vasant Vihar, New Delhi – 110 057

 

 

Country:

India

 

 

Financials (as on):

31.03.2008

 

 

Date of Incorporation :

10.12.1984

 

 

Com. Reg. No.:

55-19542

 

 

CIN No.:

[Company Identification No.]

L26102DL1984PLC019542

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELA00705F

 

 

PAN No.:

[Permanent Account No.]

AADCA7706R

 

 

Legal Form :

Public limited liability company. The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturing of Toughened Glasses and Laminated Glasses.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Maximum Credit Limit :

USD 14000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a successful Indo-Japanese Joint Venture. It is faring well and maintains progress in current recession. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings.

 

It can be regarded as a promising business partner in a medium to long-run.

 

 

LOCATIONS

 

Registered Office :

12, Basant Lok, Vasant Vihar, New Delhi – 110 057, India

Tel. No.:

91-11-26142288/3536/3537/9403

Fax No.:

91-11-26142324/26148696

E-Mail :

slabroo@aisgl.com

Website :

http://www.aisgl.com

 

 

Sales and Marketing Head Office :

C-203/B, Forture 2000, Bandra - Kurla Commercial Complex,

Bandra (East), Mumbai - 400 051

Tel. No.:

91-22-3062 0101,3062 0107

Fax No.:

91-22-3062 0119

 

 

Corporate Office :

5th Floor, Tower B, Global Business Park, Meharauli, Gurgaon Road, Gurgaon – 122 022, Haryana

Tel. No.:

91-124-28962212-19

Fax No.:

91-124-28962288/44

E-Mail :

mukhija@aisgl.com

 

 

Factory  :

Works (Auto)

 

94.4 Kms. Stone, Delhi - Jaipur Highway, Village jaliawas, Tehsil Bawal, Dist. Rewari -123 501, (Haryana)

Tel: 91-1284 - 260366, 260367,260774

Fax: 91-1284 – 260185

 

Plot No. T-16, MIDC Industrial Area, Taloja, Dist. Raigad - 410208

Tel: 91-22-27410171-74

Fax:91-22-27410090

 

Plot No. F-76 to 81, SI.PCOT, Industrial Park, Irungattukottai,

Sriperumpdur Taluk, District Kancheepuram, Tamil Nadu -602105

Tel: 91-4111500442,500443

Fax: 91-4111500441

 

Works (Float)

 

Plot No. T-7, MIDC Industrial Area, Taloja, Dist. Raigad -410208

Tel: 91-22-27410171-74

Fax:91-22-27410090

 

Village- Latherdeva Hoond, PO: jhabreda Pargana - Mangalaur, Teh. Roorkee, Dist. Haridwar, Uttaranchal - 247667

Tel: 91-1-332-224114

 

Sub Assembly Unit

 

No. 28, Challighata Village Road, Anchepalya, Mysore Road, Bangalore-560074, Karnataka, India

Tel No.: 91-80-28437139

Fax No.: 91-80-28437455

 

1301/B, GIDC, Halol, District- Panchmahal, Gujarat-389350, India

Tel No. : 91-2676-225610

 

Integrated Glass Plant

 

Plot –A, AIs Industrial Estate, Village Latherdeva Hoon, Mangular Jhabrera Road, PO: Jhabrera,Tehsil Roorkee, District Haridwar-247667, Uttarakhand, India

Tel No.: 91-1332-224010/ 14/ 15/ 16/ 19

Fax No. : 91-1332- 224114

 

 

Zonal Office :

West

C-203/B, Forture 2000, Bandra - Kurla Commercial Complex,

Bandra (East), Mumbai - 400 051

Tel: 91-22-3062 0101,3062 0107

Fax:91-22-30620119

 

North

0-986, New Friends Colony,

New Delhi-110 065

Tel.: 91-11- 26311105/1186/1197

Fax: 91-11- 26311198                      

 

South & East

Pettukola Towers, 4th Floor, 190 - A,

Poonamalee High Road,

Chennai-6oooio

Tel.: 91-44-2642 3698/2642 0716

Fax: 91-44-2642 0651

 

 

AIS GAS SOLUTIONS

 

 

 

Corporate Office :

38, Okhla Industrial Area, Phase-III, New Delhi-110020, India

Tel. No.:

91-11-41001690/ 92

Fax No.:

91-11-41002691

 

 

Sales Office:

Gundecha Industrial Estate, 4th Floor, Office No. 414, Akruti Road (Next To big Bazar), Kandivali (East), Mumbai-400101, Maharashtra, India

Tel. No.:

91-22-32472689

Fax No.:

91-22-67031181

 

 

Sales Office

1104, 11th Floor, Prestige Meridien-I, M G Road, Bangalore-560001, Karnataka, India

Tel. No.:

91-80-41512634/ 35

Fax No.:

91-80-41512636

 

 

Sales Office

No. 145, 1st Floor, 100 Feet Road, Aalam Centre, Senthil Nagar, Chennai-600094, Tamilnadu, India

Tel. No.:

91-44-23620213

Fax No.:

91-44-23620113

 

 

DIRECTORS

 

Name :

Mr. B. M. Labroo

Designation :

Chairman

Age :

76 Years

Qualification :

M. A. (Political Science) from Punjab University

Experience :

In Marketing, Finance, Corporate Governance

Other Directorships :

  • United Spirits Limited (UB Group Company)
  • Shield Autoglass Limited
  • Samir Paging Systems Limited

 

 

Name :

Mr. Sanjay Labroo

Designation :

Managing Director & Chief Executive Officer

Age :

45 Years

Qualification :

Graduate in Finance and Management from Wharton School of Business and Finance, Pennsylvania, USA

Other Directorships :

  • AIS Adhesives Limited
  • AIS Glass Solutions Limited
  • Asahi India Map Auto Glass Limited
  • Automartindia Limited
  • Ballarpur Industries Limited
  • Crompton Greaves Limited
  • Krishna maruti Limited
  • Shield Autoglass Limited
  • SKH Metals Limited

Profile :

Mr. Labroo has been nominated by the Government of India as a Director on

the Central Board of the Reserve Bank of India. Mr. Labroo has also been associated with various chambers of commerce and trade organizations. Mr. Labroo is currently the Vice President of Auto Components Manufacturers' Association (ACMA) and the Vice Chairman of All India Flat Glass Manufacturers' Association.

 

 

Name :

Mr. K. Miyazawa

Designation :

Technical Director

 

 

Name :

Mr. Surinder Kapur

Designation :

Director

Age :

63 Years

Qualification :

Doctorate in Mechanical Engineering from Michigan State University, USA

M.S. and a B.S. in Engineering from USA.

Other Directorships :

  • Sona Koyo Steering Systems Limited
  • Cosmo Films Limited
  • Greaves Cotton Limited
  • Mahindra Sona Limited
  • Sona Group Companies

Profile :

Sona Group, an industrial conglomerate was promoted by Dr. Kapur in 1987 to manufacture auto components for the Indian automotive industry. The Group comprises of Sona Koyo Steering Systems Limited. (SKSSL) and includes other group companies - Sona Okegawa Precision Forgings Limited. (SOPL), Mahindra Sona Limited (MSL), Sona Somic Lemforder Components Limited. (SSLCL), Sona Cold Forgings Limited (SCFL), Sona e-Design & Technologies Limited (Se-DAT) and Fuji Autotec France S.A.S. set up in technical and financial collaboration with reputed global auto suppliers, who are world-leaders in these components/systems. Dr. Kapur has also been associated with various chambers of commerce and trade organizations. Presently, he is a member of the National Manufacturing Competitiveness Council and the Chairman of CII's “Mission on Innovation in Manufacturing”. He is also a member of the Automotive Mission Plan (2006-2016) set up by Ministry of Heavy Industry, Government of India.

 

 

Name :

Mr. Jagdish Khattar

Designation :

Director

Age :

64 Years

Qualification :

Bachelor in Arts (with Honours) degree from St. Stephen's College and L.L.B. from the University of Delhi.

Experience :

Indian Administrative Services and has more than 41 years of total experience.

Other Directorships :

Maruti Udyog Limited. in July, 1993

Profile :

Mr. Khattar was appointed as Director on the Board of AIS in April, 2005 as a nominee of Maruti Udyog Limited He is a Director on the Board of several other companies. Mr. Khattar is the President of Automotive Research Association of India (ARAI) and a member of Empowered Committee on National Automotive Testing and R&D Infrastructure Project (NATRIP), a government supported project to set up world-class automotive testing facilities in India.

 

 

Name :

P. Kirschen

Designation :

Director

 

 

Name :

Mr. Gautam Thapar

Designation :

Director

Age :

46 Years

Qualification :

Graduate in Chemical Engineering from Pratt University, USA

Profile :

Mr. Thapar is the Chairman of Thapar Group. The Group operates in six sectors - Power Equipments, Forestry, Agri Business, Chemicals, Utilities, Infrastructure and IT. The Group companies include, Crompton Greaves Limited, India's largest power equipment company and Ballarpur Industries Limited, India's largest forest products company. Mr. Thapar started his career as a factory assistant in one of the family manufacturing companies and has steadily risen through the organization to the current position. He is the third generation of the family to head the business. Mr. Thapar is active in business and corporate sectors. He is an active office bearer of CII and currently serves as a Trustee on a number of Institutions, including Vice Chairman of Aspen Institute, India and Pratham Education Trust. He is also a Director on the Board of several other companies in India and abroad.

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & Chief Operating Officer (Float)

Age :

60 Years

Qualification :

B.Tech. in Metallurgy from Ranchi University.

Profile :

Mr. Safaya is currently the Director & Chief Operating Officer of the Float Glass SBU of AIS. Mr. Safaya joined AIS in November, 1985 and held various positions. Mr. Safaya is also a Director on the Board of AIS Adhesives Limited and AIS Glass Solutions Limited.

 

 

Name :

Mr. Arvind Singh

Designation :

Director & Chief Operating Officer (Auto)

Age :

43 Years

Qualification :

M.B.A. from International Management Institute, New Delhi

Experience :

22 years of experience in corporate planning and business development functions.

Profile :

Mr. Singh is the Director & Chief Operating Officer of the Auto Glass SBU of AIS. Mr. Singh joined AIS in May, 1991 and held various positions. Mr. Singh is also a Director on the Board of Asahi India Map Auto Glass Limited, AIS Glass Solutions Limited and Shield Autoglass Limited.

 

 

Name :

Mr. Keizaburo Kojima

Designation :

Director (Technical)

Age :

60 Years

Qualification :

Master's degree from School of Science & Technology, Keio University, Tokyo

Other Directorships :

  • Asahi Glass Company Limited (AGC) in 1972
  • Shield Autoglass Limited

Profile :

Mr. Kojima has been on the Board of AIS since 2005 as a nominee of AGC.

 

 

Name :

Mr. Masayuki Kamiya

Designation :

Director

Age :

57 Years

Qualification :

Hitotsubashi University, Japan.

Advanced Management Program from Harvard Business School in 2000.

Other Directorships :

Flat Glass Company of AGC, since May, 2005.

Profile :

Mr. Kamiya has been on the Board of AIS as a nominee of AGC since 2006. He is also a member on the Board of Glaverbel LLC.

 

 

Name :

Mr. Rahul Rana

Designation :

Director

Age :

44 Years

Qualification :

M.B.A. degree from the University of lllinois at Urbana Champaign, USA and a B.S. in Finance from S.R.C.C, University of Delhi.

Profile :

Mr. Rana is the Chief Executive Officer of SAMCO, a subsidiary of EFG Bank, New York. Prior to his joining SAMCO, Mr. Rana was President of the BSG Markets (BroadStreet Group) for the previous 3 years where he was responsible for the structured finance and asset securitization businesses. Previously, over a span of 10 years, Mr. Rana was co-head of the structured products group at UBS Warburg Dillon Read and Kidder Peabody. Mr. Rana started his career at Salomon Brothers where he was instrumental in starting the Global Asset Swap business.

 

 

Name :

Mr. Kazumi Yoshimura

Designation :

Director

Age :

59 Years

Qualification :

Graduate in Law from Hitotsubashi University, Japan

Profile :

Mr. Yoshimura has been with Mitshubishi Corporation, Tokyo since 1973. He is presently the Senior Vice President, Mitsubishi Corporation, Tokyo and Chairman & Managing Director, Mitsubishi Corporation India Private Limited and also serves as the General Manager of Mitsubishi Corporation India's Mumbai & Kolkata Branch Offices. Mr. Yoshimura became President of Japan Chambers of Commerce & Industry in India (JCCII), a prestigious association of Japanese companies and organizations in April, 2007. He has also been holding the position of Vice Chairman & Director of Snowman Frozen Foods Limited.

 

 

KEY EXECUTIVES

 

Name :

AIS

Designation :

Chief Executive Officer

 

 

Name :

Mr. K. Miyazawa

Designation :

Technical Director

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & Chief Operating Officer (Float) Corporate Head - HR, Administration, Development

 

 

Name :

Mr. A. Singh

Designation :

Director & Chief Operating Officer (Auto) Corporate Head - Planning & IT

 

 

Name :

Mr. K. Narayan

Designation :

Director & Chief Operating Officer (Glass Solutions)

 

 

Name :

Mr. H. D. Daftary

Designation :

Corporate Head - Finance/Chief Financial Officer

 

 

Name :

Mr. S. Ganjoo

Designation :

It. Corporate Head – Development

 

 

Name :

Mr. V. Khanna

Designation :

Corporate Head - Supply Chain Management

 

 

Name :

Mr. Rajesh Mukhija

Designation :

Corporate Head - Legal, Investor Relations, Audit and Company Secretary

 

 

Name :

Mr. R. Shelly

Designation :

Joint Corporate Head - Development

 

 

Name :

Mr. Anil Ahuja

Designation :

Production Head

 

 

Name :

Mr. Vijay Arora

Designation :

Head – Electrical

 

 

Name :

Mr. Mirza Asif Beg

Designation :

Head –Quality Assurance

 

 

Name :

Mr. H. Itoh

Designation :

Technical Advisor

 

 

Name :

Mr. B.S. Kanwar –

Designation :

V.P. – Plant

 

 

Name :

Mr. Farhiz Karanjawala

Designation :

Head – Information Systems

 

 

Name :

Mr. Vikram Khanna

Designation :

 V.P. – Commercial

 

 

Name :

Mr. R. Krishnan Plant

Designation :

 Head – Chennai

 

 

Name :

Mr. Ashok Kumar

Designation :

Head -Finance & Accounts

 

 

Name :

Mr. M. Kumar

Designation :

Head - Power & Energy

 

 

Name :

Mr. Prataosh Kumar

Designation :

Head – Materials

 

 

Name :

Mr. Navin Rai

Designation :

Head – Mechanical

 

 

Name :

Mr. Vikas Saxena

Designation :

Head - After Market

 

 

Name :

Mrs. Archana Singh

Designation :

Head - Planning & MIS

 

 

Name :

Mr. Amit Sood

Designation :

Head – Marketing

 

 

Name :

Mr. Pratul Swarup

Designation :

Head - New Projects

 

 

Name :

Mr. Takahiro Yamamoto

Designation :

Technical Advisor

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & C.O.O.

 

 

Name :

Mr. 0. Capore

Designation :

Head-Sales & Marketing

 

 

Name :

Mr. A. K. Chakraborty

Designation :

Head –Quality Assurance

 

 

Name :

Mr. V. K. Chamola

Designation :

Head - Finance & Accounts

 

 

Name :

Mr. H. D. Daftary

Designation :

Executive Director (S&M / F&A)

 

 

Name :

Mr. H. L. Jain

Designation :

Head -Silica Sand Processing Plant

 

 

Name :

Mr. Ashishkumar G. Joshi

Designation :

 Head-HR& Administration

 

 

Name :

Mr. Satish Kumar

Designation :

 Head – Production Planning

 

 

Name :

Mr. Jagdish D. Mayekar

Designation :

 Head – MIS

 

 

Name :

Mr. G. C. Panigrahi

Designation :

Head –Technicals Operations

 

 

Name :

Mr. Manoj S. Ranadive

Designation :

(Or.) Head – Medical Services

 

 

Name :

Mr. N. A. Shetty

Designation :

Head - Materials & Logistics

 

 

Name :

Mr. K. Narayan

Designation :

Director & C.O.O.

 

 

Name :

Mr. Sudip Chakravarti Zonal

Designation :

Head – North & East Zone

 

 

Name :

Mr. Tarun Hingorani Zonal

Designation :

Head – West Zone

 

 

Name :

Mr. Amit Jain

Designation :

Manager – Finance & Accounts

 

 

Name :

Mr. B.S. Rawat

Designation :

Manager –CSD

 

 

Name :

Mr. Raj Singh Rawat

Designation :

Manager - Dispatches & Logistics

 

 

Name :

Mr. Sukhdev Singh Rawat

Designation :

Zonal Head – South Zone

 

 

Name :

Mr. Sandeep Shukla

Designation :

Manager – Marketings Communications  

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2008

 

Names of Shareholders

No. of Shares

Percentage of Holding

Shareholding of promoter  and promoter group

 

 

Indian

 

 

Individuals / Hindu Undivided Family

29726508

18.59

Bodies Corporate

18518000

11.39

Foreign

 

 

Individuals (Associates of Labroo Family) (Non Resident Individuals/ Foreign Individuals)

4898000

3.06

Bodies corporate

35520000

22.21

PUBLIC SHAREHOLDING

 

 

Institutions

 

 

Mutual Funds/ UTI

7713030

4.82

Financial Institutions / Banks

31007

0.02

Insurance Companies

133120

0.08

Foreign institutional investors

9910890

6.20

Any Other Foreign Banks

2024

0.00

Non Institutions

 

 

Bodies Corporate

16847171

10.53

Individuals

 

 

Individuals shareholders holding nominal share capital up to Rs. 0.100 Million

18408606

11.51

Individual Shareholders holding nominal Share capital in excess of Rs. 0.100 Million

14938200

9.34

Directors and Relatives (No in control of the Company)

343626

0.21

Trusts

6274

0.00

NRI’s/ OCB

3231130

2.02

Total

159927586

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Toughened Glasses and Laminated Glasses.

 

 

Products :

Float Glass – Clear 7005.10

Float Glass – Tinted 7005.21

 

Product Description

ITC Code

Toughened (Tempered) Safety Glass

Ch. H. No. 7004-10

a)       Laminated Safety Glass

 

b) Laminated Architectural Safety Glas

Ch. H. No. 7004-20

 

Float Glass - Clear

Ch. H No. 7004-10

Float Glass- Tinted

Ch. H No. 7004-21

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

 

 

 

 

 

Toughened Glass

 

Sq. Meters

6512000

3838752

Laminated Glass

 

Nos.

2350000

2166386

Float Glass

 

Conv. Sq. Mtrs.

73720000

38999031

Architectural Glass

 

Sq. Meters

1404000

378194

Float Glass

 

Cony. Sq.mts

73720000

62519282

Mirror Glass

 

Cony. Sq.mts

3650000

1254041

Reflective Glass

 

Cony. Sq.mts

--

3126828

 

 

GENERAL INFORMATION

 

Customers :

Ř       Maruti Suzuki

Ř       Hyundai

Ř       Telco

Ř       Toyoto Kirloskar

Ř       Mahindra and Mahindra

Ř       Ford India

Ř       Honda Siel

Ř       Hindustan Motors

Ř       General Motors

Ř       Fiat India

Ř       Daewoo Motors

Ř       Volvo

Ř       Eicher Motors

Ř       Fiat India

Ř       Swaraj Mazda

Ř       Reva

Ř       UZ-Daewoo (Uzbekistan)

Ř       Fiat India

Ř       Piaggio Greaves

 

 

Bankers :

§         The Bank of Tokyo-Mitsubishi Limited

§         The Jammu and Kashmir Bank Limited

§         State Bank of India

§         Standard Chartered Bank

§         ICICIBank

§         CITI Bank N A

§         Punjab National Bank

§         HDFC Bank

§         Corporation Bank

§         Mizuho Corporate Bank Limited

§         State Bank of Mysore

§         ABN Amro Bank

§         Mitsubishi (UFJ) Limited

§         The Hongkong and Shanghai Banking Corporation Limited

 

 

Facilities :

SECURED LOANS

31.03.2008

Particulars

Rs. (in millions)

Working Capital 

3754.500

Foreign Currency Term Loans

5825.000

Rupee Term Loan

1000.300

Sub Total

10579.800

Others

 

Government of Haryana (Interest Free)

146.400

Sub Total

146.400

 

 

Total

10726.200

 

Notes:

 

1.       Working Capital Loans are secured by way of first charge on the current assets of the Company, both present and future.

2.       Foreign Currency Term Loan form banks are secured by way of pari-passu charge on specified movable and immovable assets (Installed/ yet to be installed) of the Company subject to prior charge created to secure working capital loans.

3.       Rupee Term Loan is secured by pari-passu charge on fixed assets of plant at Rewari land also equitable mortgage of londed property at Rewari

4.       Foreign Currency Term Loan form Others is secured by way of pari-passu charge on movable as immovable assets of Flat SBU plant and Roorkee.

5.       Loan form District Industries Centre is secured by way of first charge by way of mortgage over immovable and movable assets of plant at Rewari.

 

UNSECURED LOANS

31.03.2008

Particulars

Rs. (in millions)

Short Term / Bridge Loans From Banks

1272.700

From Others-Foreign Currency Loan (Interest Free)

1915.400

Total

3188.100

 

 

 

Banking Relations :

Good

 

 

Auditors 1:

 

Name :

Jagdish Sapra and Company

Chartered Accountants

Address :

23, Prakash Apartments, 5, Ansari Road, Daryaganj, New Delhi, India

 

 

Internal Auditors :

 

Name :

GSA and Associates

Chartered Accountants

 

 

Subsidiaries :
  • Float Glass India Limited

 

 

Associates :

§         ASI Welkin Auto Glass Services Limited

  • Asahi India Map Auto Glass Limited
  • Asahi Glass Company Limited, Japan
  • Maruti Udyog Limited
  • The Indo-Asahi Glass Company Limited
  • B. M. Labroo and Associates
  • AIS Glass Solutions Limited
  • AIS Adhesive Limited
  • Vincotte International India Assessment Services Private Limited
  • Shield Autoglass Limted
  • Samir Poging Systems Limited
  • R. S. Estates Private Limited
  • Nishi Electronics Private Limited
  • Maltex Malsters Limited
  • Essel Marketing Private Limited
  • Allied Finance Services Limited
  • Usha Memorial Trust, ACMA
  • Krishna Maruti Limited
  • Asahi Glass Machinery Company Limited
  • Ashi Glass Phillipines, Inc.
  • Glavernmas Pte Limited
  • Glavermas Mirrors Pte Limited
  • Glaverbel S.A
  • Asahi Glass Ceramics Company Limited
  • P.T. Asahimas Flat Glass TBK Indonesia
  • AGC Automotive Thailand Company Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000000

Equity Shares

Rs. 1/- each

Rs. 500.000 millions

600000
Preference Shares

Rs. 100/- each

Rs. 60.000 millions

9000000
Preference Shares

Rs. 10/- each

Rs. 90.000 millions

 

Total

 

Rs. 650.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

159927586

Equity Shares

Rs. 1/- each

Rs. 159.900 millions

 

Total

 

Rs. 159.900 Millions

Note:

 

Of the above 13563793 shares are allotted as fully paid bonus shares by capitalisation of General Reserve.

Redeemed during the year.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

159.900

219.900

219.900

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2784.600

2651.200

2348.900

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

2944.500

2871.100

2568.800

LOAN FUNDS

 

 

 

1] Secured Loans

10726.200

9455.600

5845.700

2] Unsecured Loans

3188.100

2941.800

2821.700
TOTAL BORROWING

13914.300

12397.400

8667.400

DEFERRED TAX LIABILITIES

284.400

238.900

0.000
 

 

 

 
TOTAL

17143.200

15507.400

11236.200
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

12469.300

10999.300

4863.200
Capital work-in-progress

473.500

2021.800

4854.900
 

 

 

 
INVESTMENT

59.200

59.200

63.800
DEFERREX TAX ASSETS

0.000

0.000

0.000
Impaired Assets held for disposal

10.900

9.700

1.200
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
3631.300
2414.500
1497.100
 
Sundry Debtors
1079.600
703.600
315.300
 
Cash & Bank Balances
163.900
240.100
80.900
 
Other Current Assets
142.100
123.900
0.000
 
Loans & Advances
1145.700
1199.900
1535.700
Total Current Assets
6162.600
4682.000
3429.000
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
1999.500
2231.900
1843.900
 
Provisions
32.800
32.700
132.000
Total Current Liabilities
2032.300
2264.600
1975.900
Net Current Assets
4130.300
22417.400
1453.100
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

1.200
 

 

 

 
TOTAL

17143.200

15507.400

11236.200

  

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

9935.300

7618.400

6828.300

Other Income

600.600

226.300

40.500

Total Income

10535.900

7844.700

6868.800

 

 

 

 

Profit/(Loss) Before Tax

195.800

632.400

912.400

Provision for Taxation

59.100

209.000

49.700

Profit/(Loss) After Tax

136.700

423.400

862.700

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

694.300

391.200

NA

 

 

 

 

Imports :

 

 

 

 

Raw Materials

1494.700

1382.000

NA

 

Stores & Spares

230.300

238.500

NA

 

Capital Goods

629.800

1803.000

NA

 

Traded Goods

49.100

56.300

NA

 

Others

0.000

2.400

NA

Total Imports

2403.900

3482.200

NA

 

 

 

 

Expenditures :

 

 

 

 

Materials Consumed

5954.700

4357.400

1941.600

 

Excise Duty

0.000

0.000

978.200

 

Power and Fuel Cost

0.000

0.000

848.400

 

Manufacturing Expenses

0.000

0.000

649.700

 

Employee Cost

0.000

0.000

419.900

 

Personnel

768.500

556.300

0.000

 

Increase or decrease in stock

0.000

0.000

[106.700]

 

Selling, Administration and Others

2614.100

1636.900

749.200

 

Miscellaneous Expenses

0.000

0.000

294.700

 

Interest and Financial Charges

0.000

0.000

118.400

 

Deferred Revenue Expenditure Written Off

0.000

1.200

0.000

 

Depreciation and Amortisation

1005.000

652.700

63.000

 

Prior Period Adjustment

[2.200]

[7.800]

0.000

Total Expenditure

10340.100

7212.300

5956.400

 

 

SUMMARISED RESULTS

 

PARTICULARS

 

 

30.06.2008

1st Quarter 

30.09.2008

2nd Quarter

Sales Turnover

 

3212.300 

3052.800

Other Income

 

25.200 

28.900

Total Income

 

3237.500 

3081.700

Total Expenditure

 

3346.400 

2195.900

Operating Profit

 

[108.900] 

885.800

Interest

 

255.900 

293.300

Gross Profit

 

[364.800] 

592.500

Depreciation

 

274.900 

273.600

Tax

 

3.000 

7.200

Reported PAT

 

[408.900] 

186.900

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
1.30

5.39

12.56

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.97

8.30

13.36

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.05

4.03

11.00

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.07

0.22

0.36

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.42

5.11

4.14

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.03

2.07

1.74

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History

 

Asahi India Glass (AIS) is the largest integrated glass company in India. They manufacture a wide range of international quality automotive safety glass, float glass, architectural processed glass and glass products. They are transforming themselves from being a manufacturer of world class glass and glass products to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly. 

 
Asahi India Glass Limited was incorporated in the year 1984 as Indian Auto Safety Glasses. The company was promoted as a joint vanture by Maruti Udyog, Asahi Glass Company, Japan and B M Labroo and Associates. Asahi Glass Company, Japan, provides the technical assistance to the company. 

 
The company has the following three Strategic Business Units. They are AIS Auto Glass, AIS Float Glass and AIS Glass Solutions Limited

 
 AIS Auto Glass is the largest manufacturer of world class automotive safety glass in India and is one of the largest auto glass makers in Asia. Their customers include Maruti Udyog, Hyundai Motors, Tata Motors, Toyota, Mahindra & Mahindra, Honda, General Motors Ford India, Hindustan Motors, Fiat India, Volvo, Eicher and Piaggio. Their manufacturing facilities is located at Rewari in Haryana and Chennai In Tamilnadu. 

 
AIS Float Glass is a premier manufacturer of international quality glass and value added glass like reflective glass and mirror. Their manufacturing plants are located at Taloja in Maharashtra and Roorkee in Uttarakhand. The company is also the commercial agent of AGC Float Glass, Europe in India since April 2007. 

 

AIS Glass Solutions is the face of the architectural glass processing business of AIS. They have been supplying a wide range of high quality architectural processed glass, comprising of toughended glass, laminated glass, insulated glass units and value added glass products. Their processing facilities are located at Taloja in Maharashtra, Chennai in Tamilnadu and Roorkee in Uttarakhand. 

 
In the year 1986, the company started commercial production of toughened automotive glass with installed capacy of 260000 sq.mtrs. In the year 1990, they installed first printing line to produce automotive glass with black ceramic and heat lite printing. During the year 1993-94, they set uo a new plant to produce laminated safety glass. 

 
The company is the first Indian glass company to get the QS-9000 and ISO-9002 certification through TUV Bayren Sachsen, Germany for the production and servicing of automotive safety glass. During the year 2001, Floatglass became the subsidiary of AIS and in the year 2002-03, the company was merged with AIS. 

 
 The company name was changed from Asahi India Safety Glass Limited to Asahi India Glass Limited with effect from 26th September 2002. During the year 2005-06, AIS Glass Solutions Limited became the subsidiary of AIS. The company increased the production capacity of Laminated Glass and Toughened by 660000 Nos and 1110000 sq mtr respectively. 

 
 During the year 2005-06, the company commissioned Tempered Glass Manaufacturing unit and Laminated Windshields Manufacturing unit at Chennai in Tamilnadu. During the year 2006-07, the company increased the production capacity of Flaot Glass, Laminated Glass and Toughened Glass by 44520000 sq mtr, 410000 Nos and 720000 sq mtr respectively. Also, the commercial production of reflective glass and mirror at the Integrated Glass plant in Roorkee, Uttarakhand commenced on April 18, 2007 and May 25, 2007 respectively. 

 
 During the year 2007-08, the production capaity of Toughened Glass, Laminated Glass, Architectural Glass and Mirror Glass increased by 2592000 sq mtr, 80000 Nos, 504000 sq mtr and 3650000 sq mtr respectively. The architectural glass processing plant in Roorkee in Uttarakhand commenced their operation in September 2007.  
 
 During the year 2006-07, the company received award for 'Achieving Targets of Quality' and 'Achieving Targets of Delivery' from Toyota Kirloskar Motors Limited They received '5 Star Award' and award 'Best Quality Performance' from Hyundai Motors India Limited They also received Construction World's Award for the largest and most profitable glass company.

 

Performance Overview: 

 
During 2007-08, the Gross sales of the Company increased 30.89% from Rs.8970.800 Millions in the previous year to Rs.11741.900 Millions. Operating profit increased 24.12% to Rs.2046.200 Millions as compared to Rs. 1648.600 Millions in the previous year. However, Profit before tax declined 69.04% from Rs. 632.400 Millions in the previous year to Rs.195.800 Millions which was impacted by increase in depreciation and interest charges on account of first full year of operation of the Roorkee plant. Similarly, Profit after tax also declined 68.30% from Rs.420.800 Millions in the previous year to Rs.133.400 Millions in 2007-08. 

 
 A detailed analysis of the Company's operations in terms of performance in markets, manufacturing activities, business outlook, risks and concerns forms part of the Management Discussion and Analysis, a separate section of this Annual Report. 

 

Management Discussion and Analysis: 

 
 Economic Overview: 

 
Although the first half of 2007-08 was relatively stable, the second half of the year has been gloomy for the global economy. While the US GDP has shown a 0.6% sequential growth in the first quarter of calendar 2008, the economy is showing all the signs of a recession. Consumer spending in the US is driven largely on the back of credit taken against housing assets. Since 2007, housing prices started moving downwards in the US, but the accelerated effect of this phenomenon was witnessed during the second half of 2007. Consequently, there has been a sharp fall in consumer spending, which has been exacerbated by the steep rise in prices of oil. These, in turn, have adversely affected the US automobile industry, which has witnessed a 10% fall in passenger car production and a massive 40% fall in the production of commercial vehicles. 

 
The EU economies are not faring much better, either. Though 2007 saw an annualised growth, EU countries, especially Spain, has been witnessing inflation well beyond their usual permissible band of 0-2% due to rising food and oil prices. UK's economy grew by 2.5% for Q1 2008 over the same quarter of the last year-the slowest growth in the last two years. 

 
 Amongst all these gloomy global performance indicators, China and India still stand out. 

 
China's real GDP growth has steadily risen from 9.5% in 2004 to 11.9% in 2007. Q1 of 2008 has shown the first sign of marginally lower growth, with the GDP growth at 1 0.6% (compared with 1 1 .1 % in the same quarter last year). China, however, will have to deal with some worrying issues like lower demand from its trading partners and its appreciating currency resulting in the slowdown in China's trade surpluses. The other problem is consumer price inflation, which reached 8.3% in March, 2008 and has been at over 8% for several months. 

 
 India's growth rate has been spectacular over the last three years - 9.4% in 2005-06, 9.6% in 2006-07 and 8.7% (estimated) in 2007-08, its growth rates are second only to China. But like China, India's growth has been slowing down. The second and third quarters of 2007-08 reflected the effects of the global slowdown in growth, especially in the industrial sector and in agriculture, with a marginal blip in the services sector as well. 

 

The third quarter growth of Indian industry (at 8.4%) was among the lowest in the last two years. What is worrying about this is that the deceleration is across all the major sub-sectors: mining, manufacturing, electricity and construction. The slowdown in the construction industry (from over 10% annualised growth to 8.4% annualised growth) is particularly worrisome, as AIS caters to this industry in a big way. Manufacturing growth is also trending downwards on account of a negative growth in consumer durables. The capital goods sector, however, shows encouraging growth, with strong investment demand. 

 
 Inflationary pressures are a worrying aspect for the Indian economy. Since steel and crude oil are two important indicators of inflation and influence AIS's business segments, it is important to discuss in detail the inflationary pressures on these commodities.

 
Steel prices have been spiraling upwards from April, 2007. Chart A shows that prices of all range of steel products has increased steeply in the first quarter of 2008. Unless the automobile manufacturers are able to absorb the price increase in steel (which looks unlikely), car prices are slated to increase. In fact, a number of car manufacturers have already increased prices between 2-3% in the first quarter of 2008 and there is an apprehension that this will negatively impact auto sales during this financial year. 

 
Global crude oil prices have been increasing steadily over the course of 2007-08. Chart 'B' plots the upward movement of crude oil prices since January, 2007, when it stood at USD 50.14 per barrel. And as on June, 2008 crude oil price stood at USD 134 per barrel, a staggering 167% increase in prices from January, 2007. 

 
High fuel prices have a double impact on AIS. First, manufacturing float glass is highly fuel intensive and any increase in fuel prices have a cascading effect on the profitability of AIS, especially so if there is a 'time lag' in being able to pass on the rise in input costs to the customer. Second, high fuel prices have a negative impact on the consumer demand for automobiles, where AIS is the dominant supplier for auto glass. 

 
 AIS: Performance Highlights: 

 
 2007-08 was a challenging year for AIS when the external business environment posed tough scenario. However, amidst all the challenges there were notable wins for AIS, both financially and operationally. AIS grew its topline by 31 % and in spite of sharply rising costs, improved its operating profit from the previous year levels. 

 
On the operations side, the Total Quality Management (TQM) practices, followed by AIS since 1998, got recognised globally and AIS Auto Glass received the prestigious 'Deming Application Prize, 2007' for having achieved distinctive performance improvement through the application of TQM. AIS is one of the just fourteen Indian companies who have won this prestigious award and is the only glass manufacturer in India who has been so honoured.

 

The financial highlights of AIS for 2007-08 are summarised below: 

 
 Gross sales grew 31 % from Rs. 8970.800 Millions in 2006-07 to Rs. 11741.900 Millions in 2007-08. 

 
 Net sales grew 30% from Rs. 7618.400 Millions in 2006-07 to Rs. 9935.300 Millions in 2007-08. 

 
Operating expenses at Rs. 8489.700 Millions in 2007-08 increased by 37% compared to Rs. 6196.100 Millions in 2006-07. This increase was driven by increase in raw material costs (14%), power & fuel costs (70%) and a 64% increase in other manufacturing costs. 

 
Operating profit increased 24% from Rs. 1648.600 Millions in 2006-07 to Rs.2046.200 Millions in 2007-08 including an impact of Rs. 524.300 Millions on account of gain on foreign exchange fluctuation. 

 
Profit before tax declined to Rs. 195.800 Millions in 2007-08 as compared to Rs.632.400 Millions in 2006-07 which was affected by depreciation and interest costs on account of first full year of commissioning of the Roorkee plant. Consequently, the Company charged depreciation to the extent of Rs. 1005.000 Millions during 2007-08, a 54% increase as compared to Rs. 652.700 Millions in 2006-07 and the interest costs increased by 139% from Rs. 354.500 Millions in 2006-07 to Rs. 847.600 Millions in 2007-08. 

 
 Profit after tax was lower at Rs. 133.400 Millions in 2007-08 as compared to Rs.420.800 Millions in 2006-07.

 
 In-depth financial and operational analysis of the three SBUs of AIS, along with segment-wise industry analysis and management outlook is narrated hereinafter. 

 
 AIS Auto Glass: 

 
During 2007-08, AIS Auto Glass continued its dominating position in the Indian passenger car industry, with a market share of about 80%. 

 
With the growing number of international Original Equipment Manufacturers (OEMs) setting up manufacturing hubs in India and consequently demanding highest standards of quality and impeccable 'Just In Time' supplies, AIS Auto Glass has lived up to their expectations and has become their 'supplier of choice'.

 

Industry Structure & Developments: 

 
AIS Auto Glass manufactures a wide range of automotive safety glasses including laminated windshields, tempered sidelites (window glasses) and backlites (rear windscreen) for vehicles. The Indian automotive industry is the major customer segment of AIS Auto Glass.

 
The passenger car industry segment (cars and MUVs) has grown at a compounded annual growth rate (CAGR) of 14.49%: from 7,05,000 vehicles in 2000-01 to 1.8 million vehicles in 2007-08.

 

India is emerging as a global manufacturing hub of compact cars for domestic and exports markets as well a lucrative market for global automotive manufacturers. Consequently, the automobile sector is expected to contribute about 10% of India's GDP by 2016. This implies that the automotive manufacturing companies are increasing capacities which shall consequently increase demand for auto glass. 

 
 Performance: 
 
 In 2007-08, AIS Auto Glass continued its dominance in the Indian markets growing sales volumes by 9.2% in laminated windshields and by 13.5% in tempered glass. 

 
During 2007-08 AIS Auto Glass retained its dominant share of business with almost all the OEMs, a number of which are global giants. 

 
Gross sales increased12.3% from Rs. 5096.600 Millions in the previous year to Rs. 5724.800 Millions in 2007-08. Table 1 gives the details of production and sales of AIS Auto Glass for the year ended 31st March, 2008. 

 

Operations: 
 
During 2007-08, apart from the significant achievement of receiving the prestigious 'Deming Application Prize', AIS Auto Glass received other commendations from its customers including award for achieving 'Targets of Delivery' from Toyota Kirloskar Motors Limited, '5 Star Award' and the award for 'Best Quality Performance' from Hyundai Motors India Limited 


AIS Auto Glass production facilities are located at strategic locations within India - Rewari-Haryana, Roorkee-Uttarakhand (North India), Chennai Tamil Nadu (South India), as well as sub-assembly units are located at Bangalore and Halol-Gujarat in proximity to the customers. 


The auto glass plant at Roorkee (Uttarakhand) commenced commercial operations from October, 2007. It is a state-of-the-art manufacturing facility for auto glass with an installed capacity for manufacturing of 5,00,000 laminated windshields and 4,00,000 tempered sidelites per annum. With this expansion, AIS Auto Glass is in a position to cater to the growing OEM customer base in Uttarakhand and service the after-market more efficiently. 

 
During 2007-08, AIS Auto Glass indigenously developed a furnace at the auto glass plant at Rewari, capable of producing extra-large size laminated windshields. With the commissioning of this project, AIS Auto Glass is now in a position to address the growing demand of commercial vehicles in India and abroad. 

 
AIS Auto Glass has also expanded production capacities at its auto glass plant at Chennai by adding an ultra modern, latest technology sidelite tempering furnace capable of producing 1.2 million sidelite sets per annum. This tempering furnace is capable of processing high quality complex shaped automotive sidelites.

 
 Input Costs & Sourcing: 


Float glass and Poly Vinyl Butyral (PVB) are the major raw material inputs for manufacturing auto glass. In 2007-08, AIS Auto Glass faced about 25% increase in prices for float glass in light of increased input costs for manufacturing float glass. Moreover, change in strategic priorities of two key overseas suppliers and regulatory constraint on the third supplier led to a supply constraint of float glass. AIS Auto Glass developed alternate sources and in the process initiated quality supplies at prices that are competitive in the context of the current situation. 

 
Though AIS Auto Glass has developed alternative sourcing arrangements, the input cost of float glass is expected to remain firm or trend upwards in 2008-09. This is likely to put pressure on margins of AIS Auto Glass. 

 
During 2008-09, AIS Auto Glass is looking at increasing its buying from AIS Float Glass in order to achieve an optimum mix of local and import, further strengthen the integration of the two business units and also provide security in supply chain. 

 
2007-08 saw the PVB industry passing through a global capacity crunch for both extrusion capacity for PVB sheet and raw material (resin). Moreover, PVB being a petrochemical derivative, the increasing costs of crude oil have exerted upward pressures on the price of PVB as well as constrained its supplies. The trend is likely to continue in 2008-09, given the current oil prices. 

 
AIS Auto Glass is actively looking at vendor development and coordination with existing vendors to secure the supply line and keep costs in check. 

 
 Market Outlook & Opportunities: 

 
The first two months of 2008-09 have shown contradictory trends in automobile demand. In April, 2008, the maximum sales of vehicles for calendar year 2008 took place. Domestic passenger car sales grew by 21% compared to April, 2007, utility vehicles by 32a/o and multi-purpose vehicles by 48%. Automobile exports also registered an overall growth of 32% in volume terms. May, 2008, however, saw growth trending down, on the back of anticipated fuel price hikes and a general increase in interest costs. Automobile demand for May, 2008 increased by around 13-15% compared to May, 2007, though export sales grew about 40% compared to the same month in the previous year. Rising cost of fuel coupled with higher interest rates are weakening the sales of several OEMs. 

 
On a longer time horizon, the auto glass business for AIS is expected to grow in volume and market share. Notwithstanding the twin problems of rising steel prices and the high cost of fuel, the long term prospects for the auto industry in India is positive and one of growth. Also, market reports suggest that car stock per 1,000 people is expected to reflect a CAGR of 9.1% from 2007 through 2010, with new passenger car registration growing at a CAGR of 11.4% over the same period.

 
Increasingly, global OEMs are sourcing auto components from low cost locations. AIS is ideally positioned to exploit this growth, thanks to its extremely high levels of acceptance among global OEMs in India, its demonstrated quality standards and the economies of size that it brings as a fully integrated player in the glass business. 

 
AIS Float Glass: 

 
During 2007-08, AIS Float Glass showed significant growth in production and sales largely due to the commissioning of the float glass plant in Roorkee Uttarakhand. 

 

AIS Float Glass has the full range of products to cater to the requirements of growing float glass industry in India, wherein it enjoys 31% market share. 

 
 Industry Structure & Developments: 

 
Apart from AIS, the major players in the Indian float glass industry are Gujarat Guardian Limited and Saint Gobain Glass India Limited

 
 Chart D shows the market share of AIS and other float glass manufacturers in India. 

 
 Chart D: Float Glass : Market Share 

 
 AIS 31%Gujarat Guardian 28%Saint Gobain 41% 

 
The growing construction industry in India, with its need for larger quantities of various types of processed glass, such as toughened, laminated, heat reflective glass and double glazed glass poses a healthy growth in the float glass industry. 

 
The flat glass sales in India has been growing at CAGR of 12.28% with a higher growth of float glass sales at 13.69%. Tables 2 and 3 give the growth of flat and float glass sales in India respectively. 

 
The domestic float glass manufacturers are planning to substantially increase their focus on value-added products for use in the construction and automobile sectors to improve their margins in the current fiscal. 

 

Performance: 
 
2007-08 saw the first full year of operations for the Roorkee float glass plant. The plant has installed capacity to produce 700 tonnes per day (TPD) of float glass. Consequently, with the increased capacity coming on stream, both production and sales showed large increases over the last year's performance. 

 
During 2007-08, production of float glass grew 60.3% from 39 million converted square metres (csqm) in the previous year to 62.52 million csqm. Sales volumes also kept pace with the production growth, registering a 56% increase from 29.80 million csqm in the previous year to 46.49 million csqm. In value terms, overall sales grew 57.5% from Rs. 3427.400 Millions to Rs.5398.400 Millions. 

 

Operations: 
 
AIS Float Glass has two plants manufacturing international quality float glass. The first plant, with a 500 tonnes per day (tpd) capacity, is located at Taloja, Maharashtra (West India). In January 2007, the Company inaugurated the second plant at Roorkee, Uttarakhand (North India), with a capacity of 700 tpd. 

 
AIS Float Glass has 31% market share in Indian float glass market. Within India, sales to customers in North India were the maximum at 44%, mainly due to the increased volumes that were produced at Roorkee. West and South India had practically identical sales (21 and 22% respectively). Chart E shows the geographical distribution of sales of AIS Float Glass. 

 
During 2007-08, AIS Float Glass received 'Construction World Award' for the largest and most profitable glass company for the third consecutive year. 

 
 Input Costs & Sourcing: 

 
Manufacturing float glass is energy intensive and furnace oil or low sulphur heavy stock (LSHS) oil is used to run the furnaces at AIS's manufacturing plants.


For AIS, the procurement price of LSHS and furnace oil went up sharply over the year. Chart F tracks the trend of procurement prices of LSHS/ furnace oil for AIS through 2007-08. 

 
 Chart E: AIS Float Glass: Geographical Distribution: 

 
 East 13% West 21%North 44%South 22%

 
 Market Outlook & Opportunities: 

 
The float glass business continues to hold great potential looking forward. India's per capita consumption of float/ sheet glass in India is only 0.7 kg, which is extremely low in comparison to Japan (14 kg), Thailand (5.2 kg), China (3.5 kg), Malaysia (2 kg) and Indonesia (2.5 kg) and therefore there is huge growth potential of the Indian float glass industry. 

 
The rapid growth in domestic construction present a significant opportunity for float glass manufacturers. Domestic prices have started firming up during the first quarter of 2008-09 and it is expected that this trend would continue. The boom in retailing has meant that mall construction (where large amounts of value-added glass are used) is now migrating to the tier 2 and tier 3 cities. Realty prices in Indian metros have been consistently increasing. 

 
In 2008-09, exports are showing growth potential. Global float glass demand is forecasted to go beyond 39 million tons by 2010. China accounts for about one-third share in the worldwide demand of flat glass, and in spite of increase in Chinese production capacities, it is expected that there would be a global demand overhang. 

 
 AIS Glass Solutions: 

 
AIS Glass Solutions is the face of the architectural glass processing business of AIS. It provides innovative and value-added glass products and services, especially for architectural glass requirements.

 
AIS Glass Solutions Limited was incorporated as a subsidiary company of AIS in 2004 and within its first full year of operations it emerged as the largest glass processor in the country. 

 

Industry Structure & Developments: 

 
The architectural glass processing industry is largely unorganised in India comprising of retailers, fabricators and dealers. The industry is in a revolutionary stage as the market segment it caters to is amongst the highest growth drivers in the country. 

 
 In spite of general inflationary pressures, the construction industry in India has been showing rapid growth. Simultaneously, builders have started to showcase projects with high quality construction materials, among which processed and value added glass figures prominently. 

 
Not only are more buildings coming up, but they are also using more glass due to increase in the glazing area. This increase is driven by changing consumer tastes with a need to connect with the outside given long periods of indoor activity. In a two year period (from 2005-06 to 2007-08), the average value addition per square metre of glass has increased by over 23%. New projects require more complex solutions and energy efficient glass. In turn, this drives up the unit realisation price. 

 
 Performance: 
 
Currently, its four architectural glass processing plants located at Taloja, Maharashtra (West India), Chennai, Tamil Nadu (South India), Rewari, Haryana and Roorkee, Uttarakhand (North India). The Roorkee facility is a part of the largest Integrated Glass Plant in the country and became operational from September, 2007. 

 
During 2007-08, production of architectural glass increased 35.8% to 0.49 million sqm compared to 0.36 million sqm in the previous year, partially driven by the new Roorkee plant which started commercial production in September, 2007. Sales were also up by 37.7% over last year to reach 0.49 million sqm in 2007-08. In value terms, 2007-08 sales were at Rs. 6,187 lakhs, which represent an increase of 12.5% over the previous year's sales. Table 5 summarises the details of the production and sales of architectural glass processing business during 2007-08. 

 
 Input Costs & Sourcing: 

 
Being in the same industry segment, AIS Glass Solutions faced similar pressures of rising input costs, mainly of key inputs like PVB, fuel and float glass. 

 
 Market Outlook & Opportunities: 

 
The architectural glass processing industry in the country has grown at approximately 25-30% per year over the past 5 years, with an approximate industry size of Rs. 6000.000 Milllions. It is expected that the industry will grow at around 30-35% during the next three years. 

 
AIS Glass Solutions has its largest and latest plant at Roorkee, which is expected to contribute to a substantial part of the future sales. The plant carries excise and income tax holiday for 10 years and 5 years, respectively which shall improve the performance in the coming years. 

 
With four plants located in Mumbai, Rewari, Roorkee and Chennai and sales offices across India, AIS Glass Solutions is in the best position to serve its clients nationally and seamlessly. This national footprint allows AIS Glass Solutions to obtain and execute contracts faster and more efficiently. 

 
Architectural glass selling is not 'commodity selling'; it needs a trained sales force which understands the needs of the customer which may be both technical and aesthetic. AIS Glass Solutions' sales force has been trained in making technical sales, and with their learning of operational best practices, make it a potent force multiplier in this business. 

 

Contingent Liabilities:

 

Particulars

31.03.2008

Rs. In Millions

Bank guarantee and letters of credit outstanding

400.500

Claims against the Company not acknowledged as debts (excluding interest and penalty which may be payable on such claims)

 

i)                     Excise and Custom Duty (Including referred in Note 11)

258.300

ii) Dispute income tax demands

1.700

iii) Corporate Guarantees (including Rs. 471.500 Millions for subsidiary)

516.600

iv) Channel Financing From Bank

142.700

v) Others

11.800

 

 

The company is in trade terms with:-

 

Ř       K. Engineering Industries

Ř       Concord Electrical Industries

Ř       Electro Controls

Ř       Jagannath Knitwears (Private) Limited

Ř       Microheating Industries

Ř       NPI Packagings (Private) Limited

Ř       Polyrub Extrusions India

Ř       Rattan Hose & Engineering Works Private Limited

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The company has collaboration with :-

 

Ř       Asahi Glass Company Limited, Japan

      Established in 1907

 

  Fixed Assets:

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Electrical Installation and Fittings

·         Furniture and Fixtures

·         Miscellaneous Assets

·         Vehicles

·         Computer Software

·         Lincence Fee

·         E Mork Changes

  

WEBSITE DETAILS:

 

Profile:

 

AIS is the largest integrated glass company in India, manufacturing a wide range of international quality automotive safety glass, floatglass, architectural processed glass and glass products.


AIS is transforming itself from being a manufacturer of world-class glass and glass products to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly.

 

AIS has the following three Strategic Business Units (SBUs) :

 

·         Automotive Glass Unit – AIS Auto Glass

·         Float Glass Unit – AIS Float Glass

·         AIS Glass Solutions Limited – AIS Glass Solutions

 

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia.  It meets over 80% automotive glass requirement of the Indian passenger car industry.

 

AIS Float Glass is the leading manufacturer of international quality floatglass in the country. Prior to its merger with AIS, it was known as Floatglass India Limited

 

AIS Glass Solutions is a value addition in the architectural glass business of AIS, addressing the following segments:

 

-          Architectural processing and Glass Solutions

-           Product and Knowledge Development

-           Glass Services - Sales & Marketing

 

The market and technology leader in the Indian Glass Industry, AIS continues to add to its customer base and service offerings, while maintaining and enhancing product quality

 

Its ongoing efforts, to provide high quality products and reliable and excellent service to its customers, are the key factors for AIS’s sustained success and leadership position in the Indian glass industry.

 

AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs. 2046 millions respectively for the year ended 31st March, 2008.

 

Collaborators:

 

ASAHI GLASS COMPANY, LIMITED, JAPAN

 

Asahi Glass Company Limited, Japan, was established in 1907. Today, it is one of the leading glass producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in Japan and 20 and above other countries. The group’s operations comprise of flat glass, automotive glass, and have recently diversified into display glass, chemicals, electronics and energy.

 

AGC has evolved as a top multinational glass manufacturer with a leading share of the global market in most key glass products. AGC group is the largest glass manufacturer of the world with 12% global market share in the flat glass segment and 30% global market share in the automotive glass segment. It has further captured the top share in CRT glass, TFT display glass and PDP glass in the display field as well.

 

For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and with Operating Net Income of 69 billions of yen.

 

Position:

 

AIS Auto Glass


AIS Auto Glass is overwhelmingly the ‘first choice’ supplier for most automotive manufacturers in India. Hence, AIS Auto Glass is either the sole or a leading supplier of auto glass to most passenger car manufacturers in India, supplying about 80% of their auto glass requirement.

 

Apart from supplying to OEMs in India, AIS Auto Glass has significant presence in the domestic after-market with a market share of 43%. It also exports auto glass to the after-markets in Europe and Pakistan.

 

AIS Float Glass


AIS Float Glass enjoys 31% market share in the Indian float glass market.

 

PRESS RELEASE

 

AIS (ASAHI INDIA GLASS LIMITED) ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER AND THE HALF YEAR ENDED 30TH SEPTEMBER, 2008

 

New Delhi, 23rd October, 2008 - AIS (Asahi India Glass Limited), India’s largest integrated glass Company announced its unaudited financial results for the second quarter and the half year ended 30th September, 2008 at its Board Meeting held today.

 

The financial performance highlights for the half year ended 30th September, 2008 are as follows –

 

· Gross Sales at Rs7081.500 Millions increased by 25% over the corresponding figure of the previous period (Rs. 5675.500 Millions).

· Net sales at Rs. 6265.100 Millions, reflected an increase of 33% over the previous period (Rs. 4719.700 Millions)

· Operating Earnings before Interest, Depreciation, Taxes and Forex gain / loss (Operating EBIDTA) reached Rs. 955.800 Millions – registering an increase of 42% over the corresponding period of the previous year.

· Operating cash profit increased by 40% from Rs. 290.900 Millions to Rs. 406.600 Millions in the current period.

· Profit after Tax (PAT) for the half year ended 30th September, 2008 reflected a loss of Rs. 222.000 Millions as against a profit of Rs. 262.700 Millions in the previous period primarily due to foreign exchange gain of Rs. 596.200 Millions in the previous period.

 

The table below gives the details of the financial performance both on standalone and consolidated bases –

 

AIS – FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30TH SEPTEMEBR

(Rs. In Millions)

Particulars

(Standalone)

(Consolidated)

 

2008

2007

Change (%)

2008

2007

Change (%)

Gross Sales

7081.500

5675.500

24.77

7207.000

5678.300

26.92

Net Sales

6265.100

4719.700

32.74

6328.100

4714.800

34.22

Operation EBIDTA1

955.800

674.700

41.66

971.800

642.700

51.20

Operating Cash Profit 1

406.600

290.900

39.77

411.000

258.200

59.19

Profit/ (Loss) After Tax

[220.000]

262.700

[184.51]

[231.200]

244.500

[194.56]

1. Excluding the impact of foreign exchange gain / loss

 

Speaking on the occasion, Mr. Sanjay Labroo, M.D. & C.E.O., AIS said, “The recession in the global economy has affected India leading to a slowdown and financial squeeze in the country. With the increase in the interest rates, the growth in the automotive and construction segments, the primary customer segments of AIS, have also slowed down. While there are welcome signs of cooling of crude prices, its benefits have been negated by the depreciation of the rupee. The costs of other key inputs have also been rising steadily.

 

The external operating environment continues to be extremely challenging in the recent months. Our constant focus on increase in operational efficiencies has resulted in steady increase in Operating Profits. I strongly believe that with the improvement in the external environment, AIS shall leverage its improved operating efficiencies to continue to surge ahead with improved profitability and cash flows.”

 

About AIS:

 

Asahi India Glass Limited (AIS) is a joint venture between the Labroo family, Asahi Glass Company Limited of Japan, and Maruti Suzuki India Limited. AIS began operations in 1987. AIS today, is the largest glass company in India, manufacturing wide range of international quality automotive safety glass, float glass and architectural processed and value added glass. AIS has the following three operating business units – AIS Auto Glass, AIS Float Glass and AIS Glass Solutions.

 

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia. It is sole supplier to almost all the OEMs and has a market share of over 80 per cent in the Indian passenger car industry.

 

AIS Float Glass is the leading manufacturer of international quality float glass. It currently has a market share of approximately 30 per cent in the Indian float glass market.

 

AIS Glass Solutions, which is a subsidiary of AIS, has emerged as the largest processor in the country. AIS Glass Solutions, offering end-to-end glass solutions, currently has a complete range of high quality architectural processed glass.

 

 

 

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 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.49.90

UK Pound

1

Rs.74.30

Euro

1

Rs.63.42

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

7

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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

NO

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING 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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions