MIRA INFORM REPORT

 

 

 

Report Date :

10.07.2008

 

IDENTIFICATION DETAILS

 

Name :

HINDUSTAN SANITARYWARE INDUSTRIES LIMITED

 

 

Registered Office :

11/B/8, Tewari House, 2nd Floor, Main Pusa Road, New Delhi – 110005.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

08.02.1960

 

 

Com. Reg. No.:

21-24539

 

 

CIN No.:

[Company Identification No.]

U99999WB1960PTC024539

 

 

IEC No.:

0588080632

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDH00554B

 

 

PAN No.:

[Permanent Account No.]

AAACH7564H

 

 

Legal Form :

A Public Limited Liability Company.  The Company’s Shares are Listed on the Stock Exchanges

 

 

Line of Business :

Manufacturing, Export, Importer and Trader of Sanitaryware and Fittings, Plaster of Paris, Refractories, Zirconium Opacifier, Heat Rings, Acid Resistance Tiles, Glass Bottles / containers and tumblers and Crystalware.

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

USD 8067468

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company having fine track. The company’s financial position is satisfactory. Trade relations are fair. Payments are usually correct and as per commitments.  

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

INFORMATION PARTED BY

 

Name :

Mr. V K Ajmera

Designation :

Sr. General Manager (Corporate Finance)

Contact No.:

91-9811323233

Date :

10.04.2008

 

LOCATIONS

 

Registered Office :

2, Red Cross Place, Post Box 2359, Kolkata - 700 001, West Bengal, India

Tel. No.:

91-33-22487406/ 22487407

Fax No.:

91-33-22487045/ 22482367

E-Mail :

hindware@somanyent.com

hsikolsale@somanyent.com

Website :

http://www.hindwarebathrooms.com

http://www.hindwarehomes.com

Location :

Owned

 

 

Head Office :

11/B/8, Tewari House, 2nd Floor, Main Pusa Road, New Delhi – 110005, India

Tel No.:

91-11-65960160/ 61/ 62/ 63/ 64/ 25854656/ 25785278

Fax No.:

91-11-25785278

Email :

delhi@hindware.co.in

 

 

Works

Bibinagar

Somanypuram Brahmanapally, Bibinagar District Nalgonda, Andhra Pradesh – 508126, India

 

Bahadurgarh

Delhi Rohtak Road, Bahadurgarh, District Jhajjar, Haryana – 124507, India

 

 

Trading Division :

Glass Division:

Varadanagar, Kukatpally, Sanatnagar, Hyderabad - 500 018, Andhra Pradesh

 

Bibinagar Trading Division:

Survey No.17, Beside Aruna Teja Castings, Bibinagar, District Na Nalgonda, Andhra Pradesh – 508126, India

 

Bahadurgarh Trading Division:

Nahra Nahari Road, Bahadurgarh, District Jhajjar, Haryana – 124507, India

 

Tikri Trading Division:

P O Tikri Kalan, DelhiRohtak Road, Delhi – 110041, India

 

 

Branches :

Mumbai

14,Vaswani Mansions, 2nd Floor, Dinshaw Vachha Road, Back Bay Reclamation, Mumbai - 400 020

Tel No. 91-22-2886681 / 2829301 / 2022247 / 2044776

Fax No. 91-22-2022247

Email: mumbai@hindware.co.in

 

New Delhi

2nd Floor, Tewari House, 11-B/8, Main Pusa Road, New Delhi - 110 005

Tel. No. 91-11-5750027 / 5819142 / 5854656 / 57 / 5755212

Fax No. 91-11-5785278

E Mail : del.hindware@gndel.global.net.in

 

Secunderabad

Ceramic Division - II, 304, 3rd Floor, Ashoka Bhoopal Chambers, Sardar Patel Road, Secunderabad - 500 003, Andhra Pradesh

Tel. No. 91-40-7848416 / 17

Fax No. 91-40-7848418

E Mail : hindware_hyd@gescl.com

              Marketing.hyd@hindware.co.in

 

Chennai

M K M Chambers, 1st Floor, 154 and 155, Kodambakkam High Road, Chennai – 600034, India

Tel No.: 91-44-28220912

Email: Chennai@hindware.co.in

 

Bangalore

Unit No. 9/2 Dhondusa Complex, 3rd Floor, Residency Road, Richmond Circle, Bangalore – 560025, India

Tel No.: 91-80-41136377

Email: Bangalore@hindware.co.in

 

Pune

Krishna Business Centre, 600 Deccan Gymkhana, Behind Sai Services Station, off Jangli Maharaj Road, Pune – 411004, India

Tel No.: 91-20-4019340

Email: pradhan@hindware.co.in

 

Ernakulam

Palaparambil Building, Kaloor-Kadavandra Road, Near Katrikadavu Bridge, Ernakulam – 682020, India

Tel No.:91-484-2207016

 

 

DIRECTORS

 

Name :

Mr. R. K. Somany

Designation :

Chairman and Managing Director

Qualification :

B. Com, FI (Cem), FBIM (UK), LFIMA

 

 

Name :

Mr. Sandip Somany

Designation :

Joint Managing Director

Qualification :

B. Com, Diploma in Ceramics

 

 

Name :

Mr. S. S. Kanoria

Designation :

Director

 

 

Name :

Mr. N. G. Khaitan

Designation :

Director

Qualification :

B. Com, LLB, Bar at Law From Kolkata High Court

 

 

Name :

Mr. Binay Kumar

Designation :

Director

Qualification :

BSC

 

 

Name :

Mr. Ashok Jaipuria

Designation :

Director

Qualification :

Degree Holder in Associate of Arts in Business Administration

 

 

Name :

Mr. V K Bhandari

Designation :

Director

Qualification :

B. Com (Hons), Chartered Accountant

 

 

Name :

Mr. S B Budhiraja

Designation :

Director

Qualification :

BSC (Hons), BE Mechanical, FIMC

 

 

Name :

Mr. Vishal Marwaha

Designation :

Director

Qualification :

Chartered Accountant

 

KEY EXECUTIVES

 

Name :

Mr. G. L. Sultania

Designation :

Executive Director and Secretary 

Qualification :

Chartered Accountant and Secretary

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders (AS ON 31.03.2005)

No. of Shares

Percentage of Holding

Domestic Companies t

773882

4.14

Financial Institutions/Banks

156927

0.84

Mutual Funds

923410

4.93

Foreign Institutional Investors & Foreign Companies

1365090

7.30

Non-Residents Indians

23404

0.12

Promoters, Directors and Relatives

12268833

65.57

General Public

3198657

17.10

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Sanitaryware and Fittings, Plaster of Paris, Refractories, Zirconium Opacifier, Heat Rings, Acid Resistance Tiles, Glass Bottles / containers and tumblers and Crystalware.

 

 

Products :

Product Description

Item Code No.

 

 

Sanitaryware

6910-10

Glass Bottles

7010-90

 

 

Brand Names :

Sanitaryware: Hindware, Hindware Art, Hiondware Italian Collection, Keramag

 

Container Glass: AGI

 

 

Exports :

 

Products :
  • Sanitaryware
  • Container Glass

Countries :
  • Lebanon
  • New Zealand
  • Yemen
  • Cyprus
  • Mozambique
  • Jordan
  • Europe
  • UK
  • Australia
  • South Africa
  • Middle East
  • Indonesia
  • Bhutan
  • Sri Lanka
  • Philippines

 

 

Exports :

 

Products :
  • Sanitaryware
  • Sanitaryware (Keramag)

Countries :
  • China
  • Finland

 

 

Terms :

 

Selling :

Credit (30-60 days)

 

 

Purchasing :

Credit (30-60 days)

 

 

PRODUCTION STATUS (as on 31.03.2007):-

 

Particulars

 

Unit

Installed Capacity

Actual Production

Sanitary Ware , Fitting and other allied products

 

MT

32000

28618

Plaster of Paris

 

MT

3000

36

Refractories

 

MT

1200

---

Zirconium Opacifier

 

MT

600

---

Hear Rings

 

Nos

500000

55250

Acide Resistant Tiles

 

Nos

650000

---

Glass bottles / Containers

 

Lac Pcs.

9531

7849

Crystal Ware

 

MT

1500

---

 

GENERAL INFORMATION

 

Customers :
  • Amrutanjan Limited
  • Glaxo India Limited
  • Parke-Davis India Limited
  • Ranbaxy Laboratories Limited
  • Smithkline Beecham Pharmaceuticals (India) Limited
  • TTK Pharma Limited
  • Cadbury (India) Limited
  • Hindustan Lever Limited
  • Smithkline Beecham Consumer Healthcare Limited
  • Coca Cola India
  • Pepsi India
  • Mcdowells and Company Limited
  • Maharashtra Distillery Limited
  • Shaw Wallace and Company Limited
  • United Breweries Limited

 

 

No. of Employees :

7000

 

 

Bankers :
  • Central Bank of India, Kolkata, West Bengal.
  • Andhra Bank, Kolkata, West Bengal.
  • Bank of Baroda, Kolkata, West Bengal.

 

 

Facilities :

SECURED LOANS

31.03.2007

(Rs. in millions)

From banks

 

Cash credit accounts

764.907

Packing credit accounts

22.400

Export bill discounting accounts

(The above loans from banks are secured by hypothecation of stocks and book debts and further secured by second charge on all the fixed assets of the Company, except certain assets at Isnapur, Medak district, Andhra Pradesh)

0.000

Buyers credit

(Secured by hypothecation of stocks and book debts and further secured by second charge on all the fixed assets of the Company, except certain assets at Isnapur, Medak district, Andhra Pradesh)

113.351

Term loans from banks

(Secured by way of hypothecation of the whole of fixed assets including moveable plant & machinery, machine spares, tools and accessories (both present and future) pertaining to the Glass division of the Company and further secured by mortgage by way of deposit of title

deeds of immovable properties of the Glass division of the Company, ranking pari-passu with the security created in favour of debenture holders)

(Term loans of Rs. 318.281 millions (Previous year Rs. 207.500 millions) are payable within one year)

738.748

750,000-13.50% Non-convertible redeemable debentures*

Of the face value of Rs. 100 each issued in favour of Central Bank of India on private placement basis. These debentures were redeemed during the year as per the redemption plan.

0.000

800,000-13.50% Non-convertible redeemable debentures*

Of the face value of Rs. 100 each issued in favour of Canara Bank on private placement basis. These debentures were redeemed during the year as per the redemption plan.

0.000

Car finance loans from banks and bodies corporate (Secured by hypothecation of vehicles financed out of proceeds of loans) (Amount payable within one year Rs. 5.120 millions (previous year Rs. 9.474 millions)

10.451

Total

1649.857

 

Notes:

Non convertible redeemable debenture were secured by first legal mortgage on the assets at Indrad, Gujarat and further secured by way of hypothecation of the whole of moveable plant and machinery, machine spares, tools and accessories and other moveable assets (except certain assets at Isnapur, Medak district, Andhra Pradesh exclusively hypothecated to Unit Trust of India and vehicles hypothecated to banks and bodies corporate) both present and future, subject to prior charges created and/ or to be created in favour of bankers of the Company in respect of stocks of semi-finished and finished goods and further secured by mortgage by way of deposit of title deeds of immovable properties of the Company, except certain assets at Isnapur, Medak district, Andhra Pradesh.

 

These charges were ranking pari-passu with the security created in favour of financial institutions/banks for the term loans. Debentures of Rs. Nil (previous year Rs. 51.667 millions) are payable within one year.

 

UNSECURED LOANS

31.03.2007

(Rs. in millions)

Short term

 

Trade deposits from dealers

65.891

Interest accrued and due on above

0.182

From banks:

 

Commercial paper

0.000

Supplier bills discounted

8.518

Export bills discounted

0.000

Other Loan

0.000

Others

 

Deferred sales tax credit

204.855

3,300,000 - 4% Fully convertible debentures of Rs. 160.25 each

0.000

Total

279.446

 

Notes:

·         Maximum amount outstanding on commercial paper during the year Rs. 600.000 millions (previous year Rs. 600.000 millions).

 

·         The amount of deferred sales tax credit is subject to assessment by sales tax authorities.

 

·         As per agreement with Commercial Tax Department, Hyderabad deferred sales tax credit relating to the Glass Division amounting to Rs. 106.816 millions (previous year Rs. 96226 millions) is secured against the moveable and immoveable properties of the Company. However, the charge is pending registration with the Registrar of Companies, West Bengal.

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Walker Chandiok and Company

Chartered Accountant

Address :

L-41, Connaught Circus, New Delhi – 110001, India

Tel No.:

91-11-23417716

Fax No.:

91-11-23418512

 

 

Associates/Subsidiaries :

·         Textool Mercantile Private Limited

·          Bigoo Investments Limited

·          Paco Exports Limited

·          New Delhi Industrial Promotors and Investors Limited

·         Soma Investments Limited

·         Soma Plumbing Fixtures Limited

·         Somany Pilkingstons

·         Ceramic Services Limited

 

·         Hindware Home Retail Private Limited

3rd Floor, 11/B/8 Tewari House, Main Pusa Road, New Delhi – 110005

(Home Furnishing)

 

·         AGI Glasspack Limited

2 Red Cross, Place, Kolkata, India

(Investment)

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

75000000

Equity Shares

Rs. 2 /- each

Rs.150.000 millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55029333

Equity Shares

Rs. 2 /- each

Rs.110.058 millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55025508

Equity Shares

Rs. 2 /- each

Rs.110.051 millions

Add;-

Forfeited Shares

 

Rs. 0.003 millions

 

 

 

 

 

 

Total

Rs.110.054 millions

 

Notes:

 

Of the above shares, 24268638 equity shares of Rs.2 each (previous year 24268638 equity shares of Rs.2 each) were allotted as fully paid-up by way of bonus shares by capitalisation of revenue reserves, 337500 equity shares of Rs.2 each (previous year 337500 equity shares of Rs.2 each) fully paid up were issued to the equity shareholders of the erstwhile The Associated Glass Industries Limited pursuant to the scheme of amalgamation and 1828225 equity shares of Rs.2 each (previous year 1828225 shares of Rs.2 each) fully paid-up were issued to the equity shareholders of the erstwhile Krishna Ceramics Limited pursuant to the scheme of amalgamation.

 

On 24th July, 2006, the holders of 3300000 - 4% fully convertible debentures (FCDs) exercised the option to convert these FCDs into 8250000 equity shares of Rs. 2 each, as per the terms of the issue.   

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

110.054

93.554

93.554

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1906.813

1200.629

1022.808

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2016.867

1294.183

1116.362

LOAN FUNDS

 

 

 

1] Secured Loans

1649.859

812.966

945.389

2] Unsecured Loans

279.447

1580.804

761.931

TOTAL BORROWING

1929.306

2393.771

1707.320

DEFERRED TAX LIABILITIES

348.531

317.061

325.670

 

 

 

 

TOTAL

4294.704

4005.015

3149.352

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2222.108

2048.723

1989.262

Capital work-in-progress

220.281

38.034

13.441

 

 

 

 

INVESTMENT

484.151

577.960

235.576

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1218.182

1082.729
752.653

 

Sundry Debtors
770.392

916.553
706.813

 

Cash & Bank Balances
86.081

123.946
107.598

 

Other Current Assets
0.907

11.887
9.799

 

Loans & Advances
272.745

141.269
142.208

Total Current Assets
2348.307

2276.384

1719.071

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
891.064

837.763
694.519

 

Provisions
89.079

98.323
113.479

Total Current Liabilities
980.143

936.086

807.998

Net Current Assets
1368.164

1340.298
911.073

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4294.704

4005.015

3149.352

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

4777.640

3965.218

3144.594

Other Income

62.242

74.171

0.000

Total Income

4839.882

4039.389

3144.594

 

 

 

 

Profit/(Loss) Before Tax

456.148

403.999

289.738

Provision for Taxation

165.030

147.318

99.391

Profit/(Loss) After Tax

291.118

256.681

190.347

 

 

 

 

Export Value

281.473

236.991

198.984

 

 

 

 

Import Value

503.284

426.234

424.659

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

742.639

557.560

0.000

 

Manufacturing Expenses

2856.540

2570.358

2537.752

 

Personnel Cost

489.146

423.649

0.000

 

Increase/(Decrease) in Finished Goods

[95.365]

[296.873]

0.000

Total Expenditure

3992.960

3254.694

2537.752

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2007

30.09.2007

31.12.2007

31.03.2008

Type

1St Quarter

2nd Quarter

3rd Quarter

4th Quarter

Sales Turnover

1170.600

1160.600

1318.000

1559.200

Other Income

23.000

17.900

10.400

26.300

Total Income

1193.600

1178.500

1328.400

1585.55

Total Expenditure

986.700

959.700

1115.200

1348.800

Operating Profit

206.900

218.800

213.200

236.700

Interest

45.000

37.400

41.100

 39.600

Gross Profit

161.900

181.400

172.100

197.100

Depreciation

62.600

64.400

65.000

71.200

Tax

39.400

43.300

41.000

46.700

Reported PAT

64.400

76.000

67.000

79.100

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
6.01

6.35

6.05

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
9.55

10.18

9.21

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.65

8.18

7.32

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.23

0.31

0.25

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.44

2.57

2.25

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.39

2.43

2.13

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History:

 

The company was formerly known as Hindustan Twyford promoted in 1960 by Calcutta based Company Group in collaboration with Twyfords of UK to manufacture Sanitaryware is a market leader in Sanitaryware. The company also has interest in Glass Containers. 

 

 

PERFORMANCE REVIEW: 

 

The Company reported a healthy performance during the year under review reflecting a 20% increase in gross sales to a record Rs. 5267.5 millions on account of the following: 

 


Corporate highlights: 

 

The Company infused greater sustainability in its business model through the following initiatives: 

 Expanded market share in container glass division and achieved record sales. 

 Enriched its product mix with a distinct slant towards the premium segment of Sanitaryware and allied products. 
 


Focused on redefining brand positioning:

 

Implemented ERP system in the building products division to aid in getting real time information and quick decision-making. 
 
The inflationary trend in input costs (raw materials and energy) was a cause of concern during the year under review. Power and fuel costs increased 10% to Rs.934.6millions in 2006-07, constituting 21% of the Company's net sales; raw material costs constituting 17% of the Company's sales, increased by 16% to Rs. 813.3millions. 

 
Optimal use of sanitaryware production capacities was not possible due to shortage of skilled workers. While Bahadurgarh plant operated at 104% capacity utilisation, Bibinagar plant operated at 79% capacity utilisation due to shortage of skilled workers. This also resulted in lower sales growth for the division in the current year. 

 
The Company had mobilised fresh capital in the form of fully convertible debentures (FCDs) aggregating to Rs. 529millions in 2005-06, which converted into equity shares in 2006-07. As a result of the above and the Company's operations during the year, the net worth increased from Rs. 1294millions to Rs.2017millions and Company's debt-equity ratio improved significantly from 1.85 xs in 2005-06 to 0.96 xs in 2006-07, reflecting healthy balance sheet.

 

 


Brand:

  
The Company's 'Hindware' brand is the most powerful and recognised bathroom brand in India as further proved by the following: 

·         Again selected as a 'Superbrand' for 2006-07 among 91 brands across all product categories  

·         The only bathroom brand in 'India's 100 most valuable brands' (4P's Magazine) 

·         Awarded the Reader's Digest 'Trusted Brand 2007-Gold'

 

 

 FIXED ASSETS:

·         Land Freehold

·         Leasehold Land

·         Building

·         Leasehold Improvements

·         Plant and Machinery

·         Office Equipments

·         Vehicles

·         Computers

·         Furniture and Fixtures

 

 

OTHER INFORMATION:

 

Basis of preparation

The financial statements have been prepared to comply with the mandatory Accounting Standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956 (the 'Act'). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Group and are consistent with those used in the previous year.

 

Contingent liabilities and provisions

Depending on the facts of each case and after due evaluation of relevant legal aspects, the Company makes a provision when there is a present obligation as a result of a past event -where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. The disclosure is made for all possible or present obligations that may but probably will not require outflow of resources as contingent liability in the financial statements.

 

CONTIGENT LIABILITES:

Contingent liabilities not provided for in respect of:

31.03.2007

(Rs. in millions )

a) Demands raised by the excise authorities against which appeals have been filed

3.278

b) Demands made by the sales tax authorities against which appeals have been filed

72.510

c) Bank guarantees outstanding

36.738

d) Claims against the Company not acknowledged as debts

118.511

Unfulfilled export obligation under EPCG license of EXIM Policy

49.019

 

 

As per Website Details:

 

About Us

 

Subject has made a humble beginning in 1936, when the Somany's were stockbrokers in Calcutta. But a few years later in 1944, their entrepreneurial spirit led to the setting up of "Somany Glass Works". Then, on the back of this successful venture they set up "Hindustan Glass Works" in 1952 – India's first fully automated, state-of-the-art glass manufacturing unit.

 

Today, the Somany Group has a diversified range of products encompassing glass containers,   sanitaryware,   bathroom   fittings,

 

 

PRESS RELEASES:

16-Jan-2008           

 

Hindware forays into home interiors retail business plans to invest Rs.2500.000 millions over the next 5 years

New Delhi, January 16, 2008:

Hindustan Sanitaryware & Industries Limited (HSIL) has announced its ambitious plans to enter the organized retail sector with Home Interiors Specialty business. The company has incorporated Hindware Home Retail Private Ltd.(HHRL) as a subsidiary of HSIL to spearhead the Group’s vision to evolve into a Total Home Solutions Enterprise and plans to invest Rs. 2500.000 millions over the next five years. HSIL is diversifying to capitalize on Home Interiors industry attractiveness in India considering growing urbanization & residential landscapes, changing consumer lifestyles, organized retail sector opportunities & the demand-supply scenarios. The vast Home Interior Solutions market opportunity size is estimated to be US$ 9 bn plus, with annual growth forecasts of 15-20% CAGR.

HHRL will leverage the core strengths of the group in understanding diverse consumer & trade behaviour, retail distribution network, brand equity, global sourcing & cost-effective supply chain management, which are critical success factors in this sector. HHRL will also work in close association with architects, interior designers, builders & corporates community utilizing the group networks and relationships for retail, institutional & projects business. The pan-India business operations will be built on Global Sourcing – Specialty Retailing model with comprehensive and trendsetting home interior concepts, merchandising & supply chain management systems.

Announcing the foray of HSIL into home interiors sector, Mr. Sandip Somany, Joint Managing Director, HSIL, said, “In the backdrop of ever growing & evolving needs of consumers, home interiors is gaining high significance in terms of concept, time, cost and quality. Consumers aspire their homes to be special providing comfort and upgrading their lifestyle. The core vision of HHRL is “to be first choice partner of customers aspiring for Value for Style home interior solutions” in Living, Kitchen and Bath domains.”

The venture is a brainchild of Mr.Sandip Somany, and a team of industry professionals with vast experience in this sector have been inducted to spearhead this venture. HHRL plans to invest about Rs.2500.000 millions over the next 5 years to establish 50 large format, company operated specialty destination stores across the country and set new industry benchmarks in home Interiors sector in India. The chain of specialty stores with 3 different formats covering Living, Kitchen & Bath domains will range from 8000 sq.ft. to 30,000 sq. ft size, and will be launched under the new retail brand EVOK. The venture will focus on the lower mid-segment to mid-upper segment consumer group and aspires to attain market leadership in these consumer segments in near future. The pilot flagship stores will shortly come up in NCR and the stores’ population will eventually be scaled up to a pan- India retail footprint of 1.2 Mn sq.ft. with target revenue turnover of Rs.4000.000 millions over the next 5 years.

Evok stores will facilitate discerning consumers with single window coordinated home interior solutions, driven by themes which accentuate their lifestyle and fulfill their aspirations. These stores will showcase world class contemporary products in Furniture, Furnishings, Bath products, Modular Kitchens, Flooring, Lighting and Lifestyle Home accessories sourced and coordinated from across the world. At Evok stores, Home spaces will be creatively arranged with affordable value packed home interior products in a soulful ambience designed to evoke emotions. Evok stores will also provide personalized home interior planning and design services to assist home makers visualize, choose and create their desired habitats.

HHRL will also establish its ambitious Projects business to service the architects, builders, interior designers and corporate/institutional segments with comprehensive product mix & services.

HSIL is a Public limited, listed company with consistent, high growth, profitable enterprise track record, delivering high investor returns. Headquartered in New Delhi - India, HSIL operations are supported country-wide by 8 regional offices, 18 Depots and more than 2,000 employees

 

5-Feb-2006

Hindustan sales improve

Hindustan Sanitaryware & Industries Limited, a company engaged in sanitaryware and glass container segments, announced financial improvement in its sales and profits for the third quarter and nine months ended 31 December, 2005. Gross Sales increased by 37.24 per cent to Rs 1100.100  from Rs 801.600  while operating profit increased by 18.80 per cent to Rs 190.800  from Rs 160.600 and earning per share increased by 47.16 per cent to Rs 3.37 from Rs 2.29. Commenting on the results, Sandip Somany, joint managing director of the company, said, 'Company's Building Products Division is on a tremendous growth trajectory benefiting from all around growth in the construction and infrastructure sector. We are also witnessing increasing replacement demand in the bathroom and kitchen segment. Company's expansion program to increase sanitaryware production capacity from 26,000 tpa to 32,000 tpa has been successfully completed. We are on track to end the year with record performance in the Building Products Division.'

 

22-Dec-2005

Hindustan Sanitaryware to expand kitchenware biz

HINDUSTAN Sanitaryware & Industries Ltd (HSIL) is expanding its kitchen business. The company, which diversified into kitchen sinks a while ago under its Hindware brand, is now introducing chimneys and hobs. In the next seven months, it will also launch a range of appliances including microwave ovens, toasters, water purification systems, dishwashers and sterilizers, said Mr. Ved Berry, Head (Marketing and Kitchen Division) HSIL. Speaking to Business Line here, Mr. Berry said the company hopes to leverage its sanitaryware distribution network for its kitchen business. Referral trade is also another source it is tapping. The kitchen sinks' success has proved that retaining the Hindware branding has been accepted, he said. According to Mr. Berry, the Rs 1800.000 chimneys and hobs market is growing between 40 and 50 per cent annually. There are several players and the market is fairly disorganized with no standard margins or discount methods, Mr. Berry said. While Faber accounts for about 70 per cent of the market share, the company in second place accounted only for 13 per cent, the gap indicating that there is enough opportunity for HSIL to exploit, Mr. Berry said. Hindware chimneys and hobs are priced between Rs 3,900 and Rs 30,900, on par with competitors. The "tangible product plus" is that they are made of pure stainless steel which is non-corrosive, he said, adding that they cost more to make than others in the market. The company has launched 17 models of chimneys and 10 varieties of hobs, which far outstrips the choice currently available, Mr. Berry claimed. Now being launched in phases, they will be available countrywide by the end of January 2006 in around 2,000 outlets. Mr. Berry said the company aimed to be numero uno in the bathroom and kitchen design segments in the next five years. Some time ago, the company went in for a change in brand identity as HSIL, with `Bathrooms, Kitchens & Beyond' being its tag line.

 

 

Hindustan Sanitary ware and Industries :

 

Corporate Notices :

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange vide notes to Accounts in the Audited financial results for the year ended March 31, 2008 (taken on record by the Board of Directors of the Company at its meeting held on May 17, 2008) that: "Out of the proceeds of preferential issue of Rs. 5288.25 lacs, made during the financial year 2005-06, Rs. 150.39 lacs were incurred as debenture issue expenses and balance Rs. 5137.86 lacs were utilised for capital expenditure and repayments of long terms". 

 

Source: BSE - Hindustan Sanitary ware & Industries Ltd has informed BSE that the Register of Members & Share Transfer Books of the Company will remain closed from August 25, 2008 to September 04, 2008 (both days inclusive) for the purpose of payment of final dividend & 48th Annual General Meeting (AGM) of the Company to be held on September 04, 2008.    

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange that the Annual General Meeting of the Company will be held on September 04, 2008. The Register of Members and Share Transfer Books of the Company will remain closed from August 25, 2008 to September 04, 2008 (both days inclusive) for the purpose of payment of final Dividend. 

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange that the Board of Directors of the Company at its meeting held on May 17, 2008 has recommended payment of final Dividend @ 75% i.e. Rs.1.50 (Rupee One and fifty paisa only) per Equity share of Rs.2/- each, for the year ended March 31, 2008, subject to approval of the Shareholders at the ensuing Annual General Meeting. 

 

Source: BSE - Hindustan Sanitary ware & Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 17, 2008, inter alia, has recommended payment of final Dividend @ 75% i.e. Rs. 1.50 (Rupee One and fifty paisa only) per Equity share of Rs 2/- each, for the year ended March 31, 2008, subject to approval of the Shareholders'' at the ensuing Annual General Meeting.          Date: 2008-05-19

 

Source: BSE - Hindustan Sanitary ware & Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 17, 2008, inter alia, for the following proposals: 1. To consider and recommend dividend, if any. 2. To consider, approve and take on record the Audited Annual Financial Results for the Financial year 2007-08 together with Segment wise Revenue, Results & Capital Employed alongwith the Consolidated Audited Annual Financial Results.           Date: 2008-05-02

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange that company has appointed Ms. Ruchika Gupta as Company Secretary of the Company, with effect from April 01, 2008. Further the Company has informed that Ms. Ruchika Gupta has also been appointed as "Compliance Officer" of the Company, with effect from April 01, 2008.          Date: 2008-04-23

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange that "The Company will publish the Audited Financial Results within a period of 3 (three) months i.e., by 30th June, 2008 from the last quarter of the Financial Year ended on 31st March, 2008."Hindustan Sanitary And Industries Ltd has informed the Exchange that "The Company will publish the Audited Financial Results within a period of 3 (three) months i.e., by 30th June, 2008 from the last quarter of the Financial Year ended on 31st March, 2008."          Date: 2008-04-03

 

Source: BSE - Hindustan Sanitary ware & Industries Ltd has informed BSE that the Company will publish the Audited Financial Results within a period of 3 (three) months i.e., by June 30, 2008 from the last quarter of the Financial Year ended on March 31, 2008. Therefore, the Company will not publish the Unaudited Results of the last quarter (i.e. 4th Quarter).           Date: 2008-04-03

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange vide notes to Accounts in the Unaudited Financial Results for the quarter ended December 31,2007 (taken on record by the Board of Directors of the Company at its meeting held on January 28, 2008) that: "Out of the proceeds of preferential issue of Rs. 5288.25 lacs, made during the financial year 2005-06, Rs. 150.39 lacs were incurred as debenture issue expenses, Rs. 2925.73 lacs were utilized for capital expenditure and repayment of loans, and balance Rs. 2212.13 lacs, pending utilization, have been invested in short term treasury instruments".          Date: 2008-02-12

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange that "Ms. Sonia Niranjan Das, the Company Secretary resigned with effect from 27th November, 2007 consequently she is no more Compliance Officer of the Company".          Date: 2007-12-07

 

Source: NSE - Hindustan Sanitary And Industries Ltd has informed the Exchange vide notes to Accounts in the Unaudited Financial Results for the quarter ended September 30,2007 (taken on record by the Board of the directors of the Company at its meeting held on October 27, 2007) that: "Out of the proceeds of preferential issue of Rs. 5288.25 lacs, made during the financial year 2005-06, Rs. 150.39 lacs were incurred as debenture issue expenses, Rs. 2925.73 lacs were utilized for capital expenditure and repayment of loans, and balance Rs. 2212.13 lacs, pending utilization, have been invested in short term treasury instruments".          Date: 2007-11-01

 

Source: BSE – Hindustan Sanitary ware & Industries Ltd has informed BSE that the members at the 47th Annual General Meeting (AGM) of the Company held on September 15, 2007, inter alia, have accorded to the following: 1. Adoption of the Audited Balance Sheet of the Company as at March 31, 2007 and the Profit & Loss Account for the year ended as on that date together with Reports of the Auditors & Directors thereon. 2(a) Declaration of dividend @ 50% i.e. Re 1.00 per share on equity shares of Rs 2/- each for the year ended March 31, 2007. (b) Ratification of interim dividend @ 25% i.e. Re 0.50 per share declared on equity shares of Rs 2/- each for the year ended March 31, 2007. 3. Re-appointment of Mr. Sandip Somany, Mr. Ashok Jaipuria & Mr. Binay Kumar, as Directors of the Company. 4. Re-appointment of Messrs. Walker, Chandiok & Co., Chartered Accountants, as Statutory Auditors of the Company for the financial year 2007-08, to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company, on remuneration, terms & conditions. 5. Re-appointment of Mr. Sandip Somany as Joint Managing Director of the Company for a period of three years commencing from December 01, 2007 to November 31, 2010, on remuneration, terms & conditions. 6. Withdrawn & revoked the special resolution passed at the 42nd Annual General Meeting of the Company held on September 20, 2002, proposing to shift the Registered Office of the Company from Kolkata in the State of West Bengal to Mumbai in the State of Maharashtra and to amend and alter the existing Clause II of the Memorandum of Association of the Company by substituting the words "West Bengal" with the words "Maharashtra".           Date: 2007-10-27

 

Source: NSE - Hindustan Sanitary And Industries Ltd has submitted to the Exchange a copy of the minutes of Annual General Meeting of the Company held on September 15, 2007. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).           Date: 2007-10-18

 

 

 

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 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.43.13

UK Pound

1

Rs.85.02

Euro

1

Rs.67.77

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

81

 

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