MIRA
INFORM REPORT
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Report Date : |
30.12.2008 |
IDENTIFICATION DETAILS
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Name : |
BODAL
CHEMICALS LIMITED |
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Registered Office : |
Plot No. 123-124, Phase-I, GIDC, Vatva, Ahmedabad-382445, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
31.12.1993 |
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Com. Reg. No.: |
04-20988 |
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CIN No.: [Company
Identification No.] |
U24231GJ1993PTC020988 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMB00692G |
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Legal Form : |
Public Limited Liability Company. The Company Shares are Listed on
Stock Exchange |
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Line of Business : |
Manufacturers
and Seller of Dyes and Chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Directors are reported
as experienced, respectable and resourceful businessmen. Their trade
relations are fair. Payments are usually correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
INFORMATION PARTED BY
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Name : |
Mr. Manoj Pandhya |
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Designation : |
Finance Manager |
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Contact No.: |
91-992521566 |
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Date : |
29.12.2008 |
LOCATIONS
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Registered Office : |
Plot No. 123-124, Phase-I, GIDC, Vatva, Ahmedabad-382445, |
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Tel. No.: |
91-79-25831684/25834223/25835437/25836051 |
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Mobile No.: |
91-9925455566 |
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Fax No.: |
91-79-25835245/25836052 |
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E-Mail : |
bodal@icenet.net,
mayor@bodal.com, bcpl@bodal.com, bodal@bodal.com |
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Website : |
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Area : |
2851 Sq. ft |
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Location : |
Leased |
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Factory 1 : |
Units at Vatva, Ankleshwar and Vadodara |
DIRECTORS
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Name : |
Mr.
Patel Jayanti Suresh |
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Designation : |
Director |
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Address : |
32, Basant Bahar, Bopal Near Sterling Club, Ahmedabad, |
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Date of Birth/Age : |
15.04.1956 |
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Date of Appointment : |
31.12.1993 |
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Name : |
Mr.
Patel Prabhodh Ramesh |
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Designation : |
Director |
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Address : |
14, Khushman Society, |
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Date of Birth/Age : |
23.10.1956 |
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Date of Appointment : |
31.12.1993 |
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Name : |
Mr.
Patel Suresh Bhavin |
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Designation : |
Director |
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Address : |
32, Basant Bahar, Bopal Near Sterling Club, Ahmedabad, |
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Date of Birth/Age : |
05.01.1981 |
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Date of Appointment : |
12.07.2002 |
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Name : |
Mr. Ankit S Patel |
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Designation : |
Executive Director |
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Name : |
Mr. Surendra N Shah |
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Designation : |
Independent Director |
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Name : |
Mr. Sunil K Mehta |
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Designation : |
Independent Director |
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Name : |
Mr. Hardik M Shah |
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Designation : |
Independent Director
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Name : |
Mr. Bipin R Patel |
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Designation : |
Independent Director
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KEY EXECUTIVES
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Name : |
Mr. Chirag G Shah |
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Designation : |
Company Secretary |
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Audit Committee |
Mr. Surendra N. Shah Chairman Mr. Hardik M. Shah Member Mr. Bipin R. Patel Member |
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Remuneration
Committee |
Mr. Surendra N. Shah Chairman Mr. Hardik M. Shah Member Mr. Bipin R. Patel Member |
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Shareholder
Grievances Committee |
Mr. Surendra N. Shah Chairman Mr. Hardik M. Shah Member Mr. Bipin R. Patel Member |
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Shareholder
Grievances Committee |
Mr. Surendra N. Shah Chairman Mr. Hardik M. Shah Member Mr. Bipin R. Patel Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Resident
Individual (ind. HUF) |
2032793 |
19.55 |
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Directors* &
Relatives, Friends & Associates. |
7798334 |
74.96 |
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Non Resident
Individual |
8790 |
0.08 |
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Domestic Company |
539172 |
5.18 |
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Mutual Fund,
Nationalized Bank , Financial Institution and Co-operative Banks |
17500 |
0.17 |
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Any other
(Clearing Members) |
6115 |
0.06 |
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Total |
10402704 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
and Seller of Dyes and Chemicals. |
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Products : |
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Exports : |
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Countries : |
Europe and Far |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Dyes and Dyes Intermediates |
MT P.A |
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33435 |
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Product wise
Break Up |
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Vinyl Sulphone |
MT P.A |
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14600 |
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Reactive / Direct / Acid Dyes |
MT P.A |
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5000 |
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Other Intermediates |
MT P.A |
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13835 |
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
580 (Office – 80 + Factory – 500) |
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Bankers : |
·
Union Bank of ·
Standard Chartered Grindlays Bank Limited ·
ICICI Bank |
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Facilities : |
(1) Term loan includes
Vehicle Loan of Rs. 6.737 Millions (P.Y. Rs. 3.024 Millions) which is Secured
by Hire Purchase agreement for cars. (2) (a) Term
loan excluding Vehicals loan is primarily secured by first charge on
immovable properties of the company situated at Plot No. 252,253,254, Phase -
II, GIDC, Vatva and 804, Village Dudhavada, Taluka Padra, Varodara
respectively and Hyp. of entire PandM and other Equipment acquired through
the term loan. (b) Cash Credit
Facility and Packing Credit Facility are primarily secured by Hyp. of Stock
of Raw material, Work in Process, Finished Goods and Book Debts of the
company. (c) Bills
discounting facility is primarily secured by hyp. of bills drawn under L/C. (d) Term Loan,
Cash Credit, Packing Credit and bill discounting facility are collaterally
further secured by equitable mortgage on Immovable property and Hyp. of PandM
of the company and personal guarantees of the Whole time directors.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mayank
Shah and Associates Chartered
Accountants |
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Address : |
706,
Mahakant, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2,30,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 230.000
Millions |
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40,00,000 |
Preferences Shares |
Rs. 10/- Each |
Rs. 40.000
Millions |
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Total |
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Rs.
270.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10402704 |
Equity Shares [1] Out of which
300000 Equity shares of Rs.10/- each were allotted as fully paid Bonus Share
by way of Capitalisation of reserves. [2] Out of which 7052704 Equity shares of Rs.10/- each have been
allotted as fully paid as per the scheme of amalgamation of Bodal Chemicals
Private. Limited. with the company on 13.05.2006) |
Rs. 10/- Each |
Rs. 104.027 Millions |
|
3967146 |
Equity Shares [1] All
preference shares of Rs.10/- each have been allotted as fully paid as per the
scheme of amalgamation of Bodal Chemicals Private. Limited. With the company
on 13.05.2006. [2] Preference Shares are redeemable on the expiry of ten years from
the date of allotment, with an option for the company for early redemption
but not before 18 months from the date of allotment. |
Rs. 10/- Each |
Rs. 39.672 Millions |
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Equity Share Capital Suspense Account (Share Capital to be issued on account of amalgamation of Milestone
Organics Limited. with the company as per High Court Order) |
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Rs. 0.676 Million |
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Total |
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Rs. 144.375 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
144.375 |
143.699 |
143.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
328.896 |
213.527 |
137.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
473.271 |
357.226 |
281.100 |
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LOAN FUNDS |
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1] Secured Loans |
1266.953 |
691.353 |
217.900 |
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2] Unsecured Loans |
121.755 |
56.364 |
41.100 |
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TOTAL BORROWING |
1388.708 |
747.717 |
259.000 |
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DEFERRED TAX LIABILITIES |
103.321 |
40.850 |
0.000 |
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TOTAL |
1965.300 |
1145.793 |
540.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
973.608 |
291.238 |
247.400 |
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Capital work-in-progress |
55.285 |
167.341 |
3.400 |
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INVESTMENT |
7.386 |
0.988 |
0.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
478.335
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223.671 |
141.100 |
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Sundry Debtors |
1044.586
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766.975 |
398.400 |
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Cash & Bank Balances |
23.593
|
7.444 |
1.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
355.170
|
230.618 |
136.700 |
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Total
Current Assets |
1901.684
|
1228.708 |
677.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
892.830
|
493.426 |
380.500 |
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Provisions |
81.431
|
51.085 |
8.600 |
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Total
Current Liabilities |
974.261
|
544.511 |
389.100 |
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Net Current Assets |
927.423
|
684.197 |
288.200 |
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MISCELLANEOUS EXPENSES |
1.598 |
2.029 |
0.600 |
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TOTAL |
1965.300 |
1145.793 |
540.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
4048.839 |
2541.740 |
1630.400 |
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Other Income |
111.534 |
39.746 |
63.200 |
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Total Income |
4160.373 |
2581.486 |
1693.600 |
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Profit/(Loss) Before Tax |
267.098 |
130.087 |
48.700 |
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Provision for Taxation |
92.598 |
18.386 |
24.300 |
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Profit/(Loss) After Tax |
174.500 |
111.701 |
24.400 |
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Earnings in Foreign Currency : |
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Export Earnings |
1996.375 |
1293.178 |
NA |
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Total Earnings |
1996.375 |
1293.178 |
NA |
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Imports : |
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Raw Materials |
414.065 |
78.595 |
NA |
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Total Imports |
414.065 |
78.595 |
NA
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Expenditures : |
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Cost of Goods Sold |
3160.112 |
2043.528 |
0.000 |
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Manufacturing Expenses |
326.608 |
197.620 |
11.400 |
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Administrative Expenses |
37.749 |
24.069 |
102.500 |
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Raw Material Consumed |
0.000 |
0.000 |
1148.900 |
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Salaries, Wages, Bonus, etc. |
43.294 |
16.686 |
0.000 |
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Managerial Remuneration |
172.040 |
96.541 |
0.000 |
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Payment to Auditors |
89.688 |
33.687 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
89.200 |
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Depreciation & Amortization |
63.202 |
38.721 |
16.200 |
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Other Expenditure |
0.582 |
0.547 |
276.700 |
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Total Expenditure |
3893.275 |
2451.399 |
1644.900 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
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1st
Quarter |
2nd
Quarter |
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Sales Turnover |
|
1320.800 |
1210.800 |
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Other Income |
|
30.000 |
23.000 |
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Total Income |
|
1350.800 |
1233.800 |
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Total Expenditure |
|
1243.700 |
1163.700 |
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Operating Profit |
|
107.100 |
70.100 |
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Interest |
|
29.600 |
29.200 |
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Gross Profit |
|
77.500 |
40.900 |
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Depreciation |
|
20.700 |
21.500 |
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Tax |
|
19.400 |
1.600 |
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Reported PAT |
|
37.200 |
14.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
2.57 |
1.58 |
1.00 |
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Long
Term Debt-Equity Ratio |
0.73 |
0.43 |
0.40 |
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Current
Ratio |
0.98 |
1.09 |
1.11 |
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TURNOVER
RATIOS |
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Fixed
Assets |
5.21 |
6.16 |
5.65 |
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Inventory |
12.99 |
15.54 |
18.78 |
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Debtors |
5.03 |
4.87 |
7.42 |
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Interest
Cover Ratio |
3.98 |
4.86 |
4.43 |
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Operating
Profit Margin(%) |
8.75 |
6.43 |
4.85 |
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Profit
Before Interest And Tax Margin(%) |
7.83 |
5.78 |
3.86 |
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Cash
Profit Margin(%) |
4.75 |
4.59 |
2.49 |
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Adjusted
Net Profit Margin(%) |
3.83 |
3.94 |
1.50 |
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Return
On Capital Employed(%) |
24.08 |
19.95 |
21.97 |
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Return
On Net Worth(%) |
45.44 |
44.10 |
27.59 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated in Sep.'86 as a private limited company, Dintex Dyechem was subsequently converted into a public limited company. It is promoted by Dinesh Shah.
The company is engaged in the manufacture of dyes and dye intermediates at
Vatwa,
In 1993-94, the company entered the drug-intermediates line by producing
acetyl sulphonyl chloride (ASC) and sulpholemide with an installed capacity of
50 tpm, which was increased to 100 tpm in 1995. During 2001-02 the company
launched 70 new dyes in the domestic market and is expecting a satisfactory
returns in the years to come.
Business
To carry on
business as manufacturers, formulators, processors, makers, buyers, sellers,
re-sellers, importers, exporters, distributors, suppliers, distillers,
refiners, stockists, agents, merchants, developers, consultants and dealers, in
all types, forms [solid liquid and gaseous] and of all kinds of chemicals such
as acetyl chloride, benzo triochloride, benzoil chloride, phenothirine and
chemical compounds heavy chemicals, acids, alkalies, tannis, tannis extracts,
solvents, dyestuffs, dyes, pigments, colours, resins, chemicals auxiliaries,
bio chemicals, and colloidal chemicals, carbon and intermediates, derivatives
suspensions, gets, powders, formulations, downstream, ingredients and
by-products and their related preparations articles and products.
division
J K
Pharma
amalgamation
Ø
Laxmi Intermediates Private Limited
Ø
R. K. Intermediates Private Limited
Ø
Shree Thionates Chemie Private Limited
Subject
operates from caption owned office cum factory premises. Its area admeasuring
are as under :
Plot
No. 123 –1905 sq. mtrs
Plot
No. 124 –944 sq. mtrs.
Plot
No. C1-B/111 – 740 sq. mtrs
Plot
No. C1-B/113 – 740 sq. mtrs
Plot
No. C1-b/114 – 717 sq. mtrs
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Name of the company |
BODAL CHEMICALS PRIVATE
LIMITED |
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Presented By |
Mr. Ramesh P. Patel, Director |
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1) Date and description of instrument creating the change |
Memorandum of
Entry dated 17.05.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 50.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Creation of first
charge by way of hypothecation of all the company’s tangible moveable plant
and machinery, both present and future, whether installed or not and whether
lying loose situated at company’s factory premises at Plot No. 123-124, Phase
– I, GIDC, Vatva, Ahmedabad. Equitable
mortgage of Land, Building and industrial shed of the company situated at
Plot No. 123, 124 and C-I-B / 111 to 114 Phase – I, GIDC, Vatva, Ahmedabad. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The rate of
interest 1.00 % over Bank’s Prime Lending Rate Cash credit [Hypothecation]
Limited. The rate of
interest for EPC and FDBP/FUDBP facility is as determined by the rules of the
Bank. |
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5) Name and Address and description of the person entitled to the charge. |
The Union Bank of
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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Name of the company |
BODAL CHEMICALS PRIVATE
LIMITED |
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Presented By |
Mr. Ramesh P. Patel, Director |
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1) Date and description of instrument creating the change |
Composite
Hypothecation deed dated 21.01.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 25.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
Stock of Chemicals, Raw Materials, semi finished and finished goods,
consumables, spares, book dents, bills etc. Hypothecation deed |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The rate of
Interest 3.50 % over Bank’s Prime Lending Rate subject to minimum 14.75 %
p.a. with monthly rest for Cash credit Limit - Margin 25 % on paid Stock and 50 % on Book debts upto 90 days - Further terms as mentioned in detail in said composite hypothecation deed. |
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5) Name and Address and description of the person entitled to the charge. |
The Union Bank of
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6) Date and brief description of instrument modifying the charge |
Supplementary
deed to composite hypothecation deed dated 15.05.2004. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The original
composite Hypothecation deed executed on 21.01.2003 was for Rs. 25.000
Millions The Supplementary
deed to composite hypothecation deed is to increase the limit of various cash
credit facilities by Rs. 25.000 Millions. The credit
facilities, therefore, now amount to Rs. 50.000 Millions as below :
Interchangeability
of Rs. 10.000 Millions from CC [Hypo]
/ EPC to FDBP/FUDBP is permitted. The rate of
interest is 1 % over Bank’s Prime
Lending Rate for Cash Credit Limit [Hypo] The rate of
interest for EPC to FDBP/FUDBP facility is as determined by the rules of the
Bank. |
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Name of the company |
BODAL CHEMICALS PRIVATE
LIMITED |
|
Presented By |
Mr. Ramesh P. Patel, Director |
|
1) Date and description of instrument creating the change |
Composite
Hypothecation deed dated 21.01.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 25.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Rate of Interest
3.50 % over Bank’s Prime |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Lending the rate
of Interest minimum 14.75 % p.a. with monthly rest for Cash credit Limit and
8.50 % for EPC and FDBP/FUDBP Limit - Margin 25 % on paid Stock and 50 % on Book debts upto 90 days - Further terms as mentioned in detail in said composite hypothecation deed. |
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5) Name and Address and description of the person entitled to the charge. |
The Union Bank of
|
|
6) Date and brief description of instrument modifying the charge |
NA |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
PERFORMANCE OF THE
COMPANY:
SOME HIGHLIGHTS:
* An all around growth year 2007-08 yet again.
* An equally promising start of the current year.
* Another Amalgamation concluded.
* The Right Issue completed successfully.
* H Acid Plant expanded. Capacity increased by 60% (1800 MTPA).
* 3 Projects with Rs. 1300.000 Millions CAPEX under implementation and
out of that 2 projects will be commissioned in current year and 3rd will be
commissioned in early next year. Total additional sales from these will be
around Rs. 3000.000 Millions (excluding captive consumption).
* On implementation of on going projects, the company will become the largest
integrated chemical company manufacturing entire range from Basic Chemicals to
Dyes with widest range of Dye Intermediates.
* The quantum jump phase begins.
(1) The Year Under Review:
The year under review was a momentous year for the Company. The year
2007-08 has been a hat-trick year. Yet again, since amalgamation of Bodal
Chemicals Private Limited. with the company, for third time, it has surpassed
previous year's performance on all fronts. The Directors are proud to present
excellent and outstanding performance for the year under review by the company.
Turnover and other Receipt at Rs. 4160.400 Millions registered a growth of
61.16% over the previous year. Earning Before Interest, Depreciation and Taxes
(EBIDTA) touched Rs. 420.000 Millions, a whopping 107.40% increase over the
previous year. And finally the bottom line, Net Profit rose by 56.22% over
previous year to Rs. 174.500 Millions. Exports grew by 53.42% to Rs. 2008.100
Millions and constitute 49.59% of the total sales. The company, today exports
to over 25 countries in almost all continents of the world. Once again, the
company has successfully and effectively leveraged its assets, infrastructure
and investments resulting in improved productivity and performance for the year
under review.
The business has performed well, with productivity gains, growth in
volumes and improved margin notwithstanding rise in input cost. The Company's
ability to neutralize cost increase and improve margin together with purchasing
efficiencies, improvement in manufacturing yield and expenses control helped in
increasing profitability. This performance is another milestone for the
Company.
(2) Current Year:
As you must have seen from the quarterly result of the performance disclosed
for 1st quarter of current year i.e. 2008-09, the growth has continued.
Turnover at Rs. 1350.800 Millions for the 1st quarter of 2008-09 gives a 67.35%
increase over the corresponding quarter last year. Operating Profit at Rs.
129.200 Millions is 107.52% more than for the corresponding quarter last year
and Net Profit at Rs. 37.200 Millions is 50.36% more than for the corresponding
quarter last year.
The Company expects to book a turnover for the entire 2008-09 in range of
Rs. 5500.000 to 6000.000 Millions and net profit in the range of Rs. 200.000 to
220.000 Millions. This is in line with the company's declared goal of achieving
Rs.10000.000 Millions Turnover and Rs. 1000.000 Millions Net Profit in next
three years.
Events Completed In Current
Year:
(1) Amalgamation of Milestone Organic Limited
The Hon'ble High Court of Gujarat has passed order for amalgamation
of Milestone Organic Limited. (Milestone) with their company, which has become
effective from 1.1.2007 on it having been filed with the Register of Companies,
Milestone is also manufacturing dyes and dyes intermediates. Its
expansion was undertaken and is completed. Milestone plants are now running at
full capacity. Milestone is expected to add Rs. 450.000 Millions in Turnover of
the Company in current year i.e. 2008-09.
(2) Rights Issue:
The company also completed successfully, its Rights Issue which opened on
27th March, 2008 and closed on 25th April, 2008. It was oversubscribed to 1.19
times without any efforts by the management/company or promotional
advertisement. I thank you all for the response and for reiterating the faith
in the company.
The 52,01,352 Equity Shares at Rs. 20/- each including Rs. 10/- premium
per share with Detachable Warrants have been allotted on 24th May, 2008. The
warrants, issued with the equity shares will be exchangeable into equity share
during February, 2009. One Warrant will be exchangeable into one equity share
at Rs. 20/- including Rs. 10/- premium per share.
The Company has fully utilised Rights Issue proceeds i.e. Rs. 10.40 crore
in accordance with the objects of Rights Issue.
MANAGEMENT DISCUSSION
AND ANALYSIS:
The Industry Overview:
The dyestuff sector is one of the most important segments of the chemical
industry in
The world market size of dyes, pigments and intermediates is estimated at
approximately US$ 23 billion. The industry is expected to grow at approximately
5-7% per annum in the next decade. Dyestuff and intermediates industry in
The Dyestuff industry constitutes three sub-divisions namely dyes,
pigments and intermediates. Dyes are soluble and essentially used in textile
products. Pigments, on the other hand, are insoluble and are important inputs
to products such as paints.
The major users of dyes in
DYES and DYE INTERMEDIATES:
Dyes are classified according to various systems. The most commonly used
one is the one used by the US International Trade Commission. According to this
system, there are following types of dyes, as detailed in the table
below:
Group Application
Acid Wool, silk, paper, synthetic fibers, leatherAzoic Printing Inks and
PigmentsBasic Silk, wool, cottonDirect Cotton, cellulosic and blended
fibersDisperse dyes Synthetic fibersReactive Cellulosic fiber and fabricOrganic
pigments Cotton, cellulosic, blended fabric, paperSulphur Cotton, cellulosic
fiberVat dyes Cotton, cellulosic and blended fiber
With the change in the product profile of the textile industry from the high-cost
cotton textiles to the highly durable and versatile synthetic fibers, the
consumption pattern of dyes has also been changing. Polyesters are projected to
account for a large part of dye consumption in the country. Accordingly,
disperse dyes, which find application in polyesters, are projected to grow
faster.
In addition to textiles, dyestuffs are also used in industries like
plastic, paints, printing inks, paper and leather. While these industries
account for a very small part of domestic consumption, globally these account
for a substantial part of total consumption.
The world market size of dyes, pigments and intermediates is estimated at
approximately US$23 billion. The industry is expected to grow at approximately
5-7% per annum in the next decade. Dyestuff and intermediates industry in
Indian
Scenario:
The Indian dyes and dyestuff industry is made up of around 900 small
scale units and 50 large organized units and produces around 80000 tonnes of
dyestuff per annum. Two western states, Maharashtra and
The Indian Dyestuff Industry can realistically aim to realise about 10
per cent of share of the world market in the next five years. Considering that
the dyestuff industry can realise $ 2 billion by the year 2010 and on the basis
that half of value production is exported, it would mean tripling of present
level of exports in the next five years. Indian Dye Industry is gearing itself
to be a global player, both due to its own intrinsic strengths and also due a
change in the circumstances of industry giants in developed countries. The
developed countries have begun sourcing their supplies from the developing
countries on account of economical considerations and growing production costs.
The major markets for Indian dyestuffs are the European Union,
A changed Scenario - Windfall gain
for Indian Dyestuff Companies:
Recently
Now, Indian Companies not only compete in terms of quality but also in
terms of cost.
There is a supply shortage of dyes and dyes intermediates due to decline
in export form
All these factors have brightened the prospects for Indian Dyestuff
manufacturers in both domestic and export market.
Export Potential:
Today Indian Dyestuffs are being exported to East, South and West Asia,
Africa,
Bodal Business Overview and Market
Identity:
They are manufacturing Dyes and Dyes Intermediates since last 20
years, viz. Vinyl Sulphone, Acetanilide, Direct and Reactive Dyes. Presently;
they are also manufacturing FC Acid, DASA, 6 Nitro etc. They have on their
regular list of buyers/importers from Europe,
Out of their total production, about 50% is being exported to various
countries like
The production of high quality dyes depends on availability/use high
quality of intermediates, which are the basic and essential ingredients of
Chemical Industry. High quality of intermediates also facilitates the research,
development and quality control of dyes.
Bodal has earned a name for CRQTD i.e. Consistency, Reliability, Quality
and Timely Delivery, in domestic and export markets. Because of this, Bodal has
been able to charge higher price for several of its products than competitors.
Bodal is exporting about 50% of its production to more than 25 countries all
over the world. Bodal is a Two Star Export House recognized by DGFT and is
availing all benefits and incentives for the export of its products. They are
on a growth and expansion path and would keenly be exploring expansion of
capacities by acquisitions or by setting up new projects.
Their Products:
They are manufacturing Dyes and Dyes Intermediates. Their product range
includes:
a. Dyes Intermediates : Vinyl Sulphone (Para Base), H Acid, DASA, FC
Acid, GAMA Acid, Sulpho Tobias Acid, G-Salt, Meta Ureido Aniline, Ortho Anisol
Vinyl Sulphone, , Vinyl Sulphone Ester of 2:5 Di Methoxy Aniline, Bronner's
Vinyl Sulphone Ester etc.
b. Reactive Dyes.
c. Acid Dyes.
d. Direct Dyes.
All dyes intermediates like Vinyl Sulphone, Gamma Acid, Acetanilide,
DASA, FC Acid, H Acid, 6 Nitro etc. are backwardly integrated to Dyes Like
Reactive Dyes and Direct Dyes Like Red 195, Yellow 145, Black 210, Black 22,
Acid Dyes and vice versa.
These products are used for colouring Textile, Leather etc.
Upcoming Projects:
An investment budget of about Rs. 1300.000 Millions is under
deployment/next in line, in terms of capacity expansion to achieve Rs.
10000.000 Millions Turnover targets in next three years. The company is
implementing the following projects which will make it a formidable dyes and
dye intermediate company having fully integrated product range from Basic
Chemicals to Dyes in fact the only such company in
a) A Dyes manufacturing project on the company's land at Padra Vadodara
(adjacent to its Dye Intermediates Project) with 12000 MTPA at an estimated
investment of Rs. 450.000 Millions. The Company has already started
construction work on it and is expected to be commissioned said project for
commercial production by December, 2008 This together with existing 6000 MTPA
of Dyes manufacturing capacity will make Bodal, the largest dyes manufacturing
company in India. This is expected to add Rs. 1750.000 Millions in Turnover
every year from December, 2008.
b) Beta Naphthol Plant : It will be Backward Integration forthem and they
plan to manufacture 4800 MTPA of Beta Naphthol. About 60% will be used for
captive and balance will add total turnover of the company by about 40 Crore.
The Company has already started construction work on it and is also expected to
be commissioned by December, 2008.
c) Acid Plant : It will also be Backward Integration forthem and they
plant to manufacture Sulphuric Acid and its derivatives (400MT per day). This
plant will consume much of their liquid effluent and it will support their
commitment for pollution free environment. Excluding majority of captive
consumption this plant will add total turnover of the company by about 800.000
Millions.
Beta Naphthol Plant and Acid Plant projects are part of their Backward
Integration strategy for improvement in profit margin.
Financial Performance Review -
2007-08:
The Year
Bygone:
The year 2007-08 has been a hat-trick year. Yet again, since amalgamation
of Bodal Chemicals Private Limited with
the company, for third time it has surpassed previous year's performance on all
fronts. Turnover and other Receipt at Rs. 4160.400 Millions registered a growth
of 61.16% over the previous year. Earning Before Interest, Depreciation and
Taxes (EBIDTA) touched Rs.420.000 Millions, a whopping 107.40% increase over
the previous year. And finally the bottom line, Net Profit rose by 56.22% over
previous year to Rs. 174.500 Millions. Exports grew by 53.42% to Rs. 2008.100
Millions and constitute 49.59% of the total sales. The company, today exports
to over 25 countries in almost all continents of the world.
The company paid an interim dividend of 20% and a final one at 5% has
been proposed for the approval.
The Year anon:
The current year has started equally promisingly and baring unforeseen
circumstances, seems to be going to start a run for and become 1st year of the
2nd hat-trick. The financial results declared for the first quarter 2008-09 on
30-7-2008, shows that the growth has been continued. Turnover and other Receipt
at Rs. 1350.800 Millions for the 1st quarter of 2008-09 gives a 67.35% increase
compare to same period last year. Operating Profit at Rs.129.200 Millions is
107.52% higher than for the corresponding quarter last year and Net Profit at
Rs. 37.200 Millions is 50.36% higher than for the corresponding quarter last
year.
The Company expects to book a turnover for the entire 2008-09 in range of
Rs. 5500.000 to 6000.000 Millions and net profit in the range of Rs. 200.000 to
220.000 Millions. This is in line with the company's declared goal of achieving
Rs.10000.000 Millions Turnover and Rs. 1000.000 Millions Net Profit in next
three years.
THE COMPANY - CHALLENGES AND
STRENGTHS:
The path to growth is never easy. Identifying Industry related
challenges and utilizing their capabilities to overcome them are the key to
success. Both as perceived by the management are as under.
Challenges:
The Indian Dyestuffs industry can realistically aim to realize about 10%
of share of the world market in the next five years. Considering that the
dyestuff industry can realize $ 2.6 billion by the year 2010 and on the basis
that half of the value of production is exported, it would mean 300% of present
level of exports in the next five years. With Chinese exporters in a fix with
their costs increasing by 15% to 17%, it is an opportunity and a challenge for
Indian producers to capture world market.
Chemical industry is a volume based industry with very low value addition. Raw
material for the chemical industry is very sensitive. Change in Raw Material
Cost may have big impact on profit margins.
The future of the Industry is directly linked to the environmental
protection policy of Government. Cheaper import from other Asian Countries and
the impact of Exchange rate fluctuations.
Their Strengths:
The challenge lies in developing production processes which are
lesser polluting and reduces effluents. Recycling waste into some usable
products / by products will go a long way in making this industry a clean
industry more nearer to a pharma industry:
a) They have adopted Backward and forward integration strategy and get
the benefits by Cost saving by captive consumption of acetanilide and value
addition by further processing into dyes and intermediates in their 20 years of
experience in this line.
b) They have also opted by both organic and inorganic expansion of
production capacities (by setting up new plants and by acquiring ready made
units).
c) The company products are well established and accepted in domestic as
well as world market (exporting about 50%) in over 25 countries for its,
consistency, reliability, quality and timely delivery (CRQTD).
d) The dyes and dyes intermediate market growth is likely to grow at a
high rate in view of the growth in the user industries like Textiles, Leather
products etc.
e) Bodal is going to become within months, the Only company in India
having fully integrated product range from Basic Chemicals to Dyes with widest
range of Dye intermediates.
As per website details
Company Overview
A company on the mission of quality and exploring world class technology, Bodal Chemicals formaly known as JK phrarma, 17 years of success saga. The quest begin in 1989 with two enterprising young men Mr. Suresh patel and Mr. Ramesh patel, willing to take on the world of chemicals with their quality offering. And thus began born JK pharma. A partnership firm with the production capacity of 60 metric tonnes per annum of Vinyl Sulphone. But it was just the tip of the iceberg.
From their humble honest beginnings, they kept adding the layers of Commitment to quality, dedication to meet stringent supply norms and absolute reverence for timely delivery. Their huge motivation is the ability to use their products in the most optimum way and it has made us to lead from one partnership firm to a well established Limited Company. 1994 saw the conversion of the partnership firm to a private limited company with the nomenclature, Bodal Chemicals Limited. still greater things were to come...
Gradually expanding, Bodal chemicals have established their production units at
Bodal Chemicals Limited, Ahmedabad - Unit 1
Bodal Chemicals Limited, Ahmedabad - Unit 2
Bodal Chemicals Limited, Ahmedabad - Unit 3
Bodal Chemicals Limited, Ahmedabad - Unit 4
Bodal Chemicals Limited, Ankleshwar - Unit 5
Bodal Chemicals Limited, Panoli - Unit 6
Bodal Chemicals Limited,
(All located in
Markets abroad were keenly studied, researcherd, reached and conquered by invasion of quality products from the house of Bodal chemicals. Out of total production more than 70% is being exported to various countries (mentioned below) and approved by many Global players in the field of Chemicals and Dyestuff!!!
Out of total production more than 70% is being exported to various countries like USA, UK, Germany, Spain, Turkey, China, Indonasia, Taiwan, Korea, Greece, Egypt, Portugal, Hongkong, Italy, Bangladesh and Pakistan.
HIGH QUALITY OF DYES DERIVES FROM HIGH QUALITY OF INTERMEDIATES
To produce high quality of dyes it is precondition to use high quality of intermediates. Intermediates are the basic and essential ingredients of Chemical Industry. High quality of intermediates also facilitate the research, development and quality control of dyes.
BODAL CHEMICALS LIMITED HAS EMERGED AS SUPPLIER OF ONE OF THE FINEST QUALITY OF DYES AND DYES INTERMEDIATES
They have earned their reputation through firmly committed to consistently high quality of products and services, timely delivery and thereby total satisfaction of their customers. Their quality products are well accepted and approved by their valued customers located at inland as well as globally.
Management at Bodal
Suresh Patel - CMD
and Founder
The promoter and the visionary behind this successful story, he is the man with hands on experience at the pulse of chemical industry. Having risen from shop floor to the top of an organisation, Mr. Suresh Patel is the reason, Bodal Chemicals have been able to stay ahead of competition and offer maximum price advantage to customers. More productivity with limited resources, excellent quality within Time Parameters is how his undeniable contribution to Bodal chemicals can be summed about.
Ramesh Patel -
Director
A man with a mission to look over the entire operations with zeal to manage them all! Dedicated force behind the production moving efficiently from the factory to desired destination, keeping an eagle eye on packaging, logistics, time management etc. And most importantly is the key person for ironing out any practical difficulties in servicing the customers to their best abilities. He is a guiding light for the younger team as well as the experienced hands.
Bhavin Patel -
Director
The legacy of stalwarts is in able hands! Having joined the group 4 years back after higher education at U.S.A in management, besides his technical qualifications in chemistry. Bhavin Patel is an enterprising, young and dynamic entrepreneur. He is instrumental in developing dye-stuff business in Bodal, since it was under his leadership that company ventured to start dye-stuff manufacturing and marketing. Having learned the nopes he is now an able support to Mr. Suresh Patel and Mr. Ramesh Patel with his progressive ideas and new age management techniques.
Their Team
Bodal team members are experienced in chemical industries and are highly skilled. The Bodal has team of more than 500 employees which endeavours to provide world-class quality to discerning clients across the globe. Each of their product possesses quality. An added advantage is Bodal's highly talented and experienced 'hands-on' top management with exceptional credentials who have proved their merit in the field of Chemicals.
Robbing the word intuition of its mystical aura, simply put, it is an ability to understand the strengths, weaknesses, the circumstances, the demand scenario and reaching for a better solution ahead of competition. Bodal's top management imbibes this attitude to fullest and permeates down even to the most base workforce. Dynamic leadership coupled with experience from diverse backgrounds add to the mind and management portfolio of Bodal Chemicals.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|