MIRA
INFORM REPORT
|
Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MOSER BAER INDIA
LIMITED |
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Registered
Office : |
43 B, Okhla
Industrial Estate, New Delhi – 110 020 |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
21.03.1983 |
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Com. Reg. No.: |
55-15418 |
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CIN No.: [Company Identification No.] |
L51909DL1983PLC015418 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELM08254B |
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PAN No.: [Permanent Account No.] |
AAACM0322J |
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Legal Form : |
Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturer of CDR,
CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video tape. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
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`RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 100000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having fine track. Directors are reported as
experienced, respectable and resourceful industrialists. Their trade relations
are fair. Financial position is good. Payments are usually correct and as per
commitments. The company can
be considered for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
43 B, Okhla
Industrial Estate, New Delhi – 110 020, India |
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E-Mail : |
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Corporate Office : |
63 Ring Road, Lajpat Nagar – III, New Delhi – 110024, India |
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Tel. No.: |
91-11-26832762 |
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Fax No. : |
91-11-26849544 |
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Administrative
Office : |
43A, Okhla
Industrial Estate, New Delhi – 110 020, India |
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Tel. No.: |
91-11-51635201/02/03/04/05 |
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Fax No.: |
91-11-51635211 |
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E-Mail : |
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Website : |
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Plant Location: |
Tel. No. : 91-120-2567023-25 / 4386347 Fax. No. : 91-120-2562117 / 4386850
Pradesh, India Tel. No. : 91-120-2460800
Tel. No. : 91-120-2567023-25 Fax No. : 91-120-2562117
Tel. No. : 91-120-2521662 |
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Branch Office
: |
Mumbai Office: Bangalore Office: Calcutta Office: |
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International
Offices : |
Japan: Taiwan: US West Coast: |
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Affiliate
Offices (International) |
Europe: US East Coast: Dubai : |
DIRECTORS
|
Name : |
Mr. Deepak Puri |
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Designation : |
Chairman and Managing Director |
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Address : |
A-187, New Friends Colony, New Delhi – 110065, India |
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Date of
Birth/Age : |
65 Years |
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Qualification
: |
B.Sc. Hons (Maths), B.Sc (Mechanical Engineering) |
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Experience : |
23 Years |
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Name : |
Mr. Ratul Pari |
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Designation : |
Director |
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Address : |
A-187, New Friends Colony, New Delhi – 110065, India |
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Date of
Birth/Age : |
34 Years |
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Qualification
: |
Bachelor’s degree in Maths and Computer Science. |
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Experience : |
5 Years |
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Name : |
Mr. Harnam D.
Wahi |
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Designation : |
Director |
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Address : |
M – 95, Greater Kailash, Part – 1, New Delhi - 110048, India |
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Date of
Birth/Age : |
80 Years |
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Qualification
: |
Bachelor of Arts, |
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Experience : |
14 Years |
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Name : |
Mrs. Nita Puri |
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Designation : |
Director |
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Address : |
A-187, New Friends Colony, New Delhi – 110065 |
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Date of
Birth/Age : |
59 Years |
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Qualification
: |
B.Ed. |
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Experience : |
22 Years |
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Name : |
Mr. Prakash
Karnik |
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Designation : |
Director |
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Address : |
902, Glen Eagle, G. D. Ambedkar Marg, Mumbai – 400012, Maharashtra
,India |
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Date of
Birth/Age : |
54 years |
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Qualification
: |
B.Tech from Indian Institute of Technology, Diploma in Systems Management
from Mumbai University and Diploma in Financial Management from Mumbai
University |
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Experience : |
8 years |
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|
Name : |
Mr. Rajesh Khanna |
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Designation : |
Director |
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Address : |
11, Nathan Road, #02-01, Regency Park, Singapore-248732 |
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Date of
Birth/Age : |
41 Years |
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Qualification
: |
B.Com from Mumbai University. Chartered Accountant and MBA from IIM, Ahmedabad., Gujarat, India |
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Experience : |
6 Years |
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Name : |
Mr. Bernard
Gallus |
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Designation : |
Director |
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Address : |
C/Del Rio Escalona 9 E-03739 Javea/Alicante Spain |
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Date of
Birth/Age : |
74 Years |
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Qualification
: |
1. Diploma State
School for Commercial Activities and Administration, Basel 2. Course
Intercedes Lausanne Course Suisse de Director d’ Enterprises |
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Experience : |
19 Years |
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Name : |
Mr. Arun Bharat
Ram |
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Designation : |
Director |
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Address : |
1, Silver Oak Avenue, Westend Green Farms, Phae-I, Rajokri, New
Delhi-110038, India |
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Date of
Birth/Age : |
66 Years |
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Qualification
: |
Graduate in Industrial Engineering from University of Michigan,
U.S.A. |
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Experience : |
4 Years |
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Name : |
Mr. John Levack |
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Designation : |
Director |
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Address : |
1110, Jardine House, 1, Connaught Place, Central, Hong Kong |
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Date of Birth/Age
: |
48 Years |
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Qualification
: |
Degree in Business Administration from Bath University in U.K. |
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Experience : |
3 Years |
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Name : |
Ms. Minni Katariya |
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Designation : |
Director |
SHAREHOLDING
PATTERN
|
Names of Shareholders (As on 30.09.2007) |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals/Hindu Undivided Family |
15529812 |
9.25 |
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Foreign |
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Individual (Non-Resident Individuals/Foreign Individuals) |
11890329 |
7.08 |
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Public shareholding |
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Institutions |
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Mutual Funds/UTI |
3882174 |
2.31 |
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Financial Institutions/Banks |
49034 |
0.03 |
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Insurance Companies |
6386 |
0.01 |
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Foreign Institutional Investors |
40426075 |
24.07 |
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Any other |
16341724 |
9.73 |
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Non-institutions |
|
|
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Bodies Corporate |
6160399 |
3.67 |
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Individuals - |
9397403 |
5.59 |
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ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 Millions |
2997913 |
1.78 |
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Any Other |
481907 |
0.29 |
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(i) Foreign Nationals |
3 |
0.00 |
|
(iv) Foreign Corporate Bodies |
2950 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
CDR, CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video tape. |
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Products : |
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Brand Names : |
"Xydan" |
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Exports : |
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Countries : |
U.S.A., UAE,
Germany, Luxemburg, Australia, Poland, Italy, Korea, Russia, Singapore,
Spain, The Netherlands, Brazil, Finland and Angola |
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Imports : |
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Countries : |
Singapore, Japan,
China and Taiwan. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Storage Media |
(Nos.) |
4602416185 |
3635982005 |
GENERAL
INFORMATION
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No. of Employees : |
5013 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
K. C. Khanna
& Company Chartered
Accountants |
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Memberships : |
Confederation of
Indian Industry |
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Associates : |
Global Data Media FZ-LLC, P. O. Box No. 500289, Dubai, United Arab
Emirates Line of Business :
Storage Media |
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Subsidiaries : |
Line of Business :
Storage Media |
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CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
142500000 |
Equity Shares |
Rs. 10/- each |
Rs. 1425.000 millions |
|
7500000 |
Preference Shares |
Rs. 10/- each |
Rs. 75.000 millions |
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Total |
|
Rs. 1500.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
111601184 |
Equity shares |
Rs. 10/- each |
Rs. 1116.012 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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|
|
|
|
1] Share Capital |
1116.012 |
1115.100 |
1115.100 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
19852.166 |
18933.400 |
18832.400 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
20968.178 |
20048.500 |
19947.500 |
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LOAN FUNDS |
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1] Secured Loans |
17250.156 |
16465.400 |
16037.900 |
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2] Unsecured
Loans |
0.000 |
89.300 |
168.300 |
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TOTAL BORROWING
|
17250.156 |
16554.700 |
16206.200 |
|
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DEFERRED TAX
LIABILITIES |
88.704 |
0.000 |
0.000 |
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TOTAL
|
38307.038 |
36603.200 |
36153.700 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
24816.641 |
24319.300 |
24471.700 |
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Capital work-in-progress
|
2867.810 |
1279.500 |
418.300 |
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INVESTMENT
|
2418.150 |
879.500 |
2075.200 |
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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
|
5392.850 |
4469.900 |
3435.400 |
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Sundry Debtors
|
3288.430 |
3798.900 |
3315.400 |
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Cash & Bank Balances
|
2438.886 |
2837.200 |
4589.900 |
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Other Current assets
|
174.255 |
0.000 |
0.000 |
|
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Loans & Advances
|
1186.190 |
1661.600 |
2029.100 |
Total Current Assets
|
12480.611 |
12767.600 |
13369.800 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
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|
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Current Liabilities
|
3876.477 |
2370.700 |
3937.200 |
|
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Provisions
|
399.697 |
272.000 |
244.100 |
Total Current Liabilities
|
4276.174
|
2642.700 |
4181.300 |
|
Net Current Assets
|
8204.437 |
10124.900 |
9188.500 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
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TOTAL
|
38307.038 |
36603.200 |
36153.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
19824.735 |
16641.202 |
15571.395 |
|
|
Other Income |
1414.023 |
1157.305 |
0.000 |
|
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Total Income |
21238.758 |
17798.507 |
15571.395 |
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Profit/(Loss) Before Tax |
1198.506 |
39.600 |
302.400 |
|
|
Provision for Taxation |
100.641 |
(7.100) |
304.800 |
|
|
Profit/(Loss) After Tax |
1097.865 |
46.700 |
607.200 |
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Earnings in Foreign Currency : |
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|
Export Earnings |
15892.363 |
14045.740 |
NA |
|
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Other Earnings |
18.249 |
48.997 |
NA |
|
Total Earnings |
15910.612 |
14094.737 |
NA |
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Expenditures : |
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|
Purchase of Finished Goods |
73.105 |
11.465 |
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Raw Materials and Components Consumed |
7937.548 |
7862.238 |
|
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Packing Materials Consumed |
1777.497 |
1903.881 |
|
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Stores, Spares and Tools Consumed |
960.466 |
632.020 |
15268.995 |
|
|
Personnel Expenses |
1392.032 |
1035.764 |
|
|
|
Administration and other Expenses |
3076.046 |
2210.444 |
|
|
|
Interest and Finance Charges |
1244.855 |
935.497 |
|
|
|
Depreciation / Amortization |
3578.703 |
3167.598 |
|
|
Total Expenditure |
20040.252 |
17758.907 |
15268.995 |
|
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 |
4692. 900 |
4477.900 |
5116.600 |
4710.500 |
|
Other Income |
309.900 |
432.600 |
389.900 |
88.800 |
|
Total Income |
5002.800 |
4910.500 |
5506.500 |
4799.300 |
|
Total Expenditure |
3482.000 |
3341.500 |
4158.800 |
3900.400 |
|
Operating Profit |
1520.800 |
1569.000 |
1347.700 |
898.900 |
|
Interest |
407.800 |
464.500 |
473.200 |
448.100 |
|
Gross Profit |
1113.000 |
1104.500 |
874.500 |
450.800 |
|
Depreciation |
992.300 |
1056.400 |
1088.300 |
1179.000 |
|
Tax |
2.900 |
8.700 |
-9.300 |
-11.000 |
|
Reported PAT |
96.400 |
32.700 |
-204.500 |
-717.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.82 |
0.82 |
0.78 |
|
Long Term Debt Equity Ratio |
0.82 |
0.81 |
0.77 |
|
Current Ratio |
2.83 |
3.25 |
3.06 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
0.56 |
0.52 |
0.46 |
|
Inventory |
4.20 |
4.38 |
4.99 |
|
Debtors |
5.85 |
4.87 |
4.26 |
|
Interest Cover Ratio |
1.96 |
1.04 |
1.41 |
|
Operating Profit Margin (%) |
29.03 |
23.92 |
28.53 |
|
Profit Before Interest and Tax Margin (%) |
11.78 |
5.63 |
7.68 |
|
Cash Profit Margin (%) |
22.54 |
18.56 |
25.34 |
|
Adjusted Net Profit Margin (%) |
5.29 |
0.27 |
4.49 |
|
Return on Capital Employed (%) |
6.53 |
2.68 |
2.96 |
|
Return on Net Worth (%) |
5.35 |
0.23 |
3.08 |
LOCAL AGENCY
FURTHER INFORMATION
History:
The company was incorporated
on 21.03.1983 at New Delhi in India having Company Registration Number 15418.
The company now
shifted from 63, Ring Road, Lajpat Nagar - III, New Delhi - 110 024, India to
43A, Okhla Industrial Estate, New Delhi – 110 020, India.
Incorporated in
March 1983 as a private limited company and was converted into a public limited
liability company in September, 1996. It was promoted by Mr. Deepak Puri and
Mrs. Nita Puri. The company manufactures storage media for data applications
and audio/video applications. Today the company is India’s largest and among
the world three largest optical storage media manufactures.
The company has
established itself as a leading exporter of 5.25 floppy diskettes, in technical
collaboration with XYDEX Corporation, United States of America. It has also
entered into an agreement with Mag Media, IMTC and RES, all of Germany, on a
world-wide basis for the supply of its entire production of 3.5” MFD of 1 – MB
and 2 – MB capacity.
The company also
entered into R and D tie up with 4M Technologies. The R and D will focus on
developing newer, faster and more reliable CD-ROM products, improving existing
CD-ROM process to reduce manufacturing cost and developing new high density
storage formats for both digital versatile CD (DVD-R) and higher density DVD
formats.
The company
acquired Capco S.A. of Luxembourg for about Rs. 230.000 millions. In December
2000, it has set up a subsidiary – Glyphics Media, which spearheaded the
company’s penetration into key North American markets. The company has invested
around $100 millions for the completion of its optical media project.
During 2001-02
CAPCO S.A. of Luxembourg ceased to be the subsidiary of the company. The
installed capacity of storage media (both audio and video) was increased to
891320000 nos.
During the year
1998-99, there was an incidence of fire at one of the company's
facilities. Due to the presence of an
emergency and disaster management plan and adequate fire fighting and other
resources this fire was brought under control.
Due to efforts put in by the company's employees and continuous
implementation of the recovery plant, the facility restarted operations with a
minimum loss of production.
During the year
2001-02 Capco SA of Luxembourg ceased to be subsidiary of the company. The
installed capacity of storage media (both audio and video) was increased to
891320000 nos. The cumulative investment made by the company was Rs.18144.08
millions and in 2002-03 the company invested Rs.10617.94 millions which was
utilized to increase the manufacturing capacity from 891.00 millions to 1186
millions units per annum. It had also established facilities and infrastructure
for additional capacity expansion which the company is going to undertake in
the future and for de-bottlenecking of existing manufacturing facilities.
The company entered
a global strategic tie-up with Imitation Corporation, USA which results in
Imitation Sourcing a substantial part of their requirements of optical media
from the company. The deal worth in excess of USD 100 million per annum. Both
the companies have also agreed to float Joint Venture company of which 51% will
be owned by Imitation Corporation.
The company has
joined hands with the Indian institute of Technology (IIT) , Delhi to work
jointly in the frontier areas of thin film sputtering technology suitable for
optical data storage devices.
The company has
expanded the installed capacity of Storage Media during the FY 2004-05 by 548.000
millions and this expansion the total capacity of the product has risen to
3612.500 millions (Nos.). Further the company has began its production and
shipment of Light Scribe – enabled media in collaboration with Hewlett –
Packard. During the year the company has established its subsidiary in Germany
with the objective of addressing high end niche markets.
The company will
invest US$ 105 million to increase its disk production capacity form 2.4
billion to to over 2.8 billion deices annually, during 2005-06.
Financial Result
Revenues for FY '07 stood at Rs.21553.7 million, profit
before depreciation, interest and tax stood at 6022.1 million, and profit after
tax was Rs.1097.9 million. Commencing from second half of FY '07, the operating
and financial parameters for the global optical media industry started to
revert to normal and sustainable levels, subsequent to a difficult environment
overt the past eighteen months. The key drivers were continued demand growth
for the optical media formats, consolidation of capacity and softening of
prices for major inputs.
As a result of improving industry, environment, the Company witnesses a
turnaround in the last two quarters of the FY'07. Robust growth in DVD demand,
improving demand and pricing cycle for CD combined with emergence of next
generation Blu-Ray formats were some of the key trends for the industry during
the year under review.
MARKET
ENVIRONMENT AND OUTLOOK:
Industry Outlook:
In 2006-07 was clearly a year of recovery for the global optical storage media
industry as industry went through a consolidation, improving demand-supply
scenario, consumer demand to be robust and pricing power started to come back
to manufacturers towards the end of the year. Additionally, subsequent to a
steep rise, the prices of key inputs also started to soften during the year.
Strategic Marketing and Decisions (SMD) expects industry demand to expand to 21
billion units by 2009 - adding over 2 billion units over existing levels,
mainly driven by high value DVD/RW and next generation Blu-ray formats. The
growth in industry value should remain in the value long term.
There was a sharp turnaround in the CDR/RW demand-supply and pricing cycle
during the later part of the year driven by demand growth in Asian/Emerging
markets and exit/conversion of inefficient capacities. The improved
demand-supply position aided the increase in ASPs (Average Selling Prices) of
CDR/RW during 2007 to be 12 billion desks.
The DVDR/RW segment continues to grow at a rapid pace, with global demand at
6.2 billion units in 2006 - a 68% year-on-year growth in volumes during 2006
(SMD estimates). Demand for DVDR/RW formats is expected to remain strong as
global volumes touch almost 9 billion units in 2007. DVD/RW media margins
should remains stable as DVDR/RW media pricing follows the manufacturing cost
curve in the near term.
The next generation Blu Laser based formats such as Blu Disc and HD DVD formats
are the emerging growth drivers for the global industry driven by increasing
penetration of high definition/density video content and applications.
Market development: The financial year 2006-07 was the first year when the
Company started 'Retail Private Label' segment along with selling to OEM
customers. With an eye to expand the existing market, the Company has already
started focusing on value-added products which reflects the commitment to move
up the value chain in terms of giving premium and value added products to its
customers.
During the year, the Company introduced a number of new products including
double layer storage media formats, mini DVD recordable and re-writable discs
and Gold Media. The Company launched an in house developed 'Aqua Shield' media,
a niche product for the European market. The Company was also the first company
in the world to commercially ship next generation HD DVDR format. The
acquisition of OMandT (an erstwhile subsidiary of Philips) has significantly
strengthened the Company's position of being a frontrunner in the next
generation Blu-ray format given OM andT's pioneering work and manufacturing
expertise in the Blu-ray disc technology.
PHOTOVOLTAIC (PV) CELL PROJECT:
Moser Baer Photo Voltaic Limited (MBPV), 100% subsidiary of
the Company, has also ventured into the emerging and high growth global solar
energy market by executing its first project to manufacture photovoltaic cells
and modules, targeting an annual capacity of 40 MW in Phase-I of the project.
The initial project cost is estimated to be Rs.2.6 billion, with Moser Baer
investing Rs.1.2 billion in this venture. The Company will leverage synergies
between existing core manufacturing and technology competencies to emerge as a
significant player in the fast growing global photovoltaic market. The global
photovoltaic market is on a high growth curve - sales expected to grow over 6x
to USD 40 billion by 2010. This demand is also highly price elastic. A lowering
of PV electricity costs to conventional levels could exponentially expand this
market as PV starts to penetrate into base load demand of electricity. During
the year under review, the Company successfully completed final line
integration and trials on its initial 40 MW crystalline photovoltaic cell
production facility.
During the financial year, Moser Baer Photo Voltaic Limited acquired a
significant minority stake in three US based technology companies focused on
innovative photovoltaic technologies. These includes Stion Corporation, Solaria
and SolFocus, USA. These investments are in line with their strategy to reduce
cost of solar power generation by straddling multiple future technologies and
emerge as a significant player in the global PV industry.
More recently, MBPV also announced acquisition of a 40% strategic equity stake
in Slovenia-based Solarvalue Proizvodnja d.d. This strategic investment ensures
stable and cost effective supply of solar grade wafers over the long term. The
Company also entered into a strategic tie-up with Deutsche Solar for sourcing
silicon wafers in line with its strategy to meet its silicon requirements in an
efficient and cost effective method.
CONTENT BUSINESS:
During the financial year, the Company announced the launch
of a new business initiative by moving up the value chain in Indian market by
moving into content distribution segment, marking the Company's maiden foray
into the Indian entertainment industry. The Company will have a presence across
the country in all major metros as well as in smaller towns through an active
and well-organized three-tiered distribution channel. This forward integration
will be take advantage of the established Moser Baer production and technology
capability in optical media as well as an extensive national distribution
network. The Company will release video content on DVD and Video CD formats at
an unrivaled price value proposition to the customers using its proprietary and
patented technology which enhances quality and significantly reduces
cost.
Management
Discussion and Analysis:
OVERVIEW:
The company manufactures products and provides services which leverage its
technology development and commercialization strengths to offer the best,
value-enhanced and differentiated technology products and services to its
global customer base.
Financial Year 2006-07 has been a year of evolution of the company. The company
has emerged as a multi business organization with presence in high growth
technology driven global scale businesses having superior returns on
investments.
Improving operational efficiencies coupled with increasingly efficient and
optimal use of assets both fixed as well as working capital - is another
positive trend in the company's performance.
During the year, the company further consolidated its leadership position in
the global optical media industry. Moser Boer was first to market next generation
HD DVD media The company also achieved a unique technology and IP position in
the Blu-ray format through its own pioneering work and acquisition of OMandT (a
former R and D subsidiary of Philips BV) marking the transition of the company
from a technology innovator to a technology developer.
During Financial Year '06, the company had announced plans to north, high
growth global Photovoltaic (PV) business and achieve a leadership position
through its multi technology strategy and by leveraging its core competences in
fine/wet chemical processing, thin film coating, mass manufacturing and rapid
technology commercialization.
During the year, the company crossed several important milestone for its PV
cell and module manufacturing protect, the first phase at which is set for
commercial production. The company's wholly owned subsidiary, Maser Baer Photo
Voltaic Limited (MBPV), announced several strategic investments. On the
technology side, MBPV has made strategic investments into Solaria, SolFocus Inc.,
and Stion Corporation, based out of USA. The company has recently also acquired
a significant equity stake in Slovenia-based Solarvalue Proizvodnja d.d. to
ensure supply of solar grade silicon. The company also entered into a joint
technology development agreement with Applied Materials Inc (AMAT) for it,
foray pro Thin Film PV products.
Maser Baer's strategy is to clearly straddle multiple future technologies and
emerge as an engineering and technology driven company. These innovative
technologies have the potential to make PV energy costs comparable to those of
conventional energy - thereby significantly growing the market. Maser Baer aims
to be at the forefront of this emerging technology curve by investing into
these technologies and combining them with its existing technology
commercialization and efficient manufacturing capabilities.
During the financial year, the company also announced its entry into the
exciting Indian content distribution/entertainment market through the Indian
home video segment. This move will take advantage of Moser Baer's established
production capability and a well developed natural distribution network This
business will also act as a lever to de-commoditize, the blank optical media
business given its higher value addition and high returns on invested capital.
During the year the company did a phased national launch of its video content
on DVD and Video CD (VCD) formats using its proprietary and patented technology
with enhanced quality and significantly reduced cost. This will enable Moser
Baer to revolutionize the quality-price parity and offer unprecedented value
for the consumers in Indian market.
Industry
developments in 2006-07:
Overview:
Global energy demand is increasing at a rapid pace Notions will spend USD 1
trillion this decade to meet electricity generating needs Energy costs are
rising globally, in line with oil prices and grid power costs are slated to
rise by 8-10% annually Energy security is a growing concern worldwide, leading
to increasing dependence on renewable energy sources.
Amongst the renewable space, photovaltic technology is fast emerging as the
most viable technology that has the potential to satisfy the rising demand for
distributed peaking power needs of the world.
Increasing emphasis on cleaner, renewable fuels coupled with a rapidly
expanding list of countries, including Spain, Italy, Greece and France which
are implementing or have implemented legislations favoring PV technology, the
global demand far PV energy and systems is on a very high growth trajectory.
The global PV industry size in 2006 grew to over 2.5 GW representing o 40% y/y
growth.
The various R and D programs and technology initiatives to reach parity with
base load grid power cost continued to dominate the industry mind space during
the year. The other important focus area for the industry is to scale up the
Balance of Systems (BOS) technology so as to reduce BOS costs in line with cell
and module cost curve
While polysilicon continues to be supply constrained, large global players have
initiated significant capacity expansions and technology innovations which
should lead to an improved supply and cost scenario for this key mad in the
long term. The emphasis is on new technology to manufacture polysilicon and
also on converting metallurgical good, silicon to solar grade silicon.
Globally, utilities are increasingly entering tat, long term Power Purchase
Agreements (PPA) with the solar energy installations. The market is also moving
towards large form factor applications with new technologies being the key
enabler. Building Integrated Photo Voltaic (BIPV) systems is another emerging
application wherein solar systems can be integrated into the building among its
construction.
Outlook:
The company plans to invest USD 100 million over the next three years in this
business, mainly on acquisition of content and marketing expenses. The price
point offered to consumers is expected to expand the market with higher shore
of legitimate content distribution. Moser Baer expects to catalyze this trend
in the Indian home vide segment and expects this business to significantly
contribute to it's revenues and earnings over the next few years.
FINANCIAL
ANALYSIS:
Overview:
The financial statements have been prepared in compliance with the requirements
of the Companies Act, 1956, and Accounting Standards in India. Their management
accepts responsibility for the integrity and objectivity of these financial
statements, as well as for various estimates and judgements used therein. The
estimates and judgements relating to the financial statements have been made on
a prudent and reasonable basis, in order that the financial statements reflect
in a true and fair manner the form and substance of transactions and reasonably
present their state of affairs and profits for the year.
Business:
The company is engaged in the business as Manufacturer and Exporter of
CDR, CDRW, DVDR, DVDRW, Micro Flooy Diskettes, Audio-Video Tape under the brand
‘Moser Baer’.
Contingent Liabilities
In respect of:-
1.1 Corporate
guarantees given on behalf of a Subsidiary Company: Rs. 3520.000. Against these
guarantees loan amounts of Rs.1251.452 Millions have been availed by the subsidiary
company.
|
Disputed demands
(Gross) in respect of:- |
Rs
in Millions |
|
|
|
|
Entry tax |
|
|
[Amount paid
under protest Rs. 1.686 Millions |
|
|
paid through
bank guarantee Rs. 2.646 Millions |
110.392 |
|
Service tax |
68.826 |
|
Sales Tax |
7.307 |
|
Custom duty and
Excise duty |
5.517 |
|
Trade Tax |
22.230 |
|
Income Tax |
85.294 |
Claims against the Company not acknowledged as debts: Rs. 20.078
Millions.
1.3 The amount shown
in 1 .1 above represents guarantees given in the normal course of the Company's
operations and ore not expected to result in any loss to the Company on the
basis of the beneficiary fulfilling its ordinary commercial obligations.
The amounts shown
in 1 .2 and 1 .3 above represent the best possible estimates arrived at on the
basis of available information. The uncertainties and possible reimbursements
are dependent on the outcome of the different legal processes which have been
invoked by the Company or the claimants as the case may be and therefore cannot
be predicted accurately. The Company engages reputed professional advisees, to
protect its interests and has been advised that it has strong legal positions
against such disputes.
2 A search and seizure
operation was carried out by the State of Kerala, DGP and the Nodal officer at
the premises of distributors stocking home video CDROM's and DVDROM's in
various cities of Kerala for alleged infringement of Section 52(A) of the
Copyright Act. The Company has filed a writ petition against such police action
and has received a favourable interim order. On the basis of advice obtained
from external legal council, the Company does not expect any adverse results on
issuance of the final order.
3 The Company has
received claims relating to infringement of copyrights in relation to the
business activities carried on by it. In the opinion of the management, no
material liability is likely to arise on account of such claims.
4 4.1 Estimated value of contracts remaining to be executed on capital
account and not provided for (net of advances): Rs. 1694.114 Millions.
4.2 Letters of Credit opened by banks on behalf of the Company: Rs.
664.284 Millions.
FIXED ASSETS
- Leasehold Land
- Building
- Leasehold Improvements
- Plant and Machinery
- Electrical Installations and Other
Equipments
- Furniture and Fixture
- Computer
- Vehicles
AS PER WEBSITE
History
Spiralling
Growth
A
typical CD has a unique spiral track of data, which, if straightened, would be
around 5 km long. It takes a single-minded, precise and persistent approach to
lay such a path. At Moser Baer, their spiralling growth is a result of the same
meticulous approach they use to make their media, applied to running their
company.
The
company was founded in New Delhi in 1983 with a clear vision— to operate in
products with high entry barriers, from the technology as well as capital point
of view. Given the fact that high obsolescence usually goes hand in hand with
high technology, the risk and reward equation had to make sense. It started as
a Time Recorder unit in technical collaboration with Maruzen Corporation, Japan
and Moser Baer Sumiswald, Switzerland.
However,
it was in 1986, when the data storage field—the marvel of creating a memory
second only to the human brain out of some plastic, specialty chemicals and
dyes— caught the attention of an engineer with a masters degree in mechanical
engineering from the Imperial College, London. So what if this meant breaking
into what was till then the exclusive preserve of Japanese and Taiwanese
manufacturers, questioning the paradigm that no Indian manufacturer could be
competitive in the global space and fighting the image that India was a country
that borrowed technology and did not create it? Such challenges only further
inspired Subject founder and managing director Deepak Puri to take the company
to the forefront of the optical media industry.
Undertaking
its first and only diversification into the data storage industry, Subject
initially manufactured 5.25" Floppy Diskettes, graduating to 3.5"
Micro Floppy Diskettes (MFD) in 1993. Today, Subject is the world's
fifth-largest manufacturer of MFDs. Its unique strength in diskette
manufacturing comes from products conforming to stringent international quality
standards with a cost-effectiveness that few can match.
In
1999, Subject spread its wings into Recordable Optical Media, setting up a
150-million unit capacity plant to manufacture Recordable Compact Disks (CD-Rs)
and Recordable Digital Versatile Disks (DVD-Rs). The strategy for the optical
media project was identical to what had successfully been implemented in the
diskette business—creating a facility that matched global standards in terms of
size, technology, quality, product flexibility and process integration. The
company is today the only large Indian manufacturer of magnetic and optical
media data storage products, exporting approximately 90% of its production.
Since
inception, Subject has always endeavored to create its space in the
international market, something that very few Indian manufacturers have been
able to achieve. Aiding the company in its efforts has been a carefully-planned
and sustainable model—low costs, high margins, high profits, reinvestment and
capacity growth. Along the way, deep relationships have been forged with
leading OEMs, with the result that today there are hardly any players in the
field that Subject is not associated with.
Subject
is manufacturer of removable data storage media. Incorporated in 1983, the company
is today one of India's leading technology companies and ranks among the top
three optical storage media manufacturers in the world. Headquartered in New
Delhi, India, it has a broad and robust product range of floppy disks, compact
discs (CDs) and digital versatile discs (DVDs).
A
pioneer among globalizing Indian firms, subject has a presence in over 82
countries, serviced through six marketing offices in India, the US and Europe,
and enjoys strong tie-ups with all major global technology brands. Simultaneously,
with the launch of the 'moserbaer PRO' label in India, the company has emerged
as the preferred choice in this burgeoning captive market. The result: Strong
growth—with revenues growing at a five-year CAGR of over 42 per cent.
It is this focus on building relationships responsibly that places Subject at
the forefront of digital media technology.
Milestones
|
1983 |
Year of Incorporation |
|
1985 |
Production of 8.0"/5.25" disks
commences |
|
1987 |
Production of 3.5" disks commences |
|
1998 |
Moser Baer India gets ISO 9002
certification |
|
1999 |
Production of CD-Rs commences |
|
2000 |
Production of CD-RWs commences |
|
2002 |
Production of cake and jewel boxes begins |
|
2003 |
Entry into DVD-R formats |
|
2004 |
Technology license agreement with
Hewlett-Packard to manufacture optical media using 'Lightscribe' technology |
|
2005 |
ISO 14001 and OHSAS 18001 certification for
Moser Baer plants. |
· India-based company with nearly two decades' experience in removable data storage
· Among the top three media manufacturers in the world #1 in the fast-growing India market
· Lowest-cost manufacturer of optical media in the world
· RandD-focused company
· Focused on optical and magnetic data storage media
· OEM supplier to all the 12 leading storage media brands in the world
· Revenue growing at 5-year CAGR of 42%
Products
Optical Storage Media:
Recordable Compact Discs (CD-R), Rewritable Compact Discs (CD-RW), Pre-recorded
CD/DVD, Digital Versatile Disks (DVD-R) and Rewritable Digital Versatile Disks
(DVD-RW), LightScribe enabled media.
At the company, the
means are as important as the end. It is not just reaching the destination that
matters. It is equally important that the route they take to success is
correct.
Corporate Objectives
A commitment to
efficient manufacturing that has led to the lowest production costs in the world
A strong R and D
focus that has helped develop innovative products on a continuing basis
The highest quality
standards that have consistently delivered world-class products
A strong customer
focus that has resulted in high customer retention and acquisition
A marketing focus
that has kept products contemporary and relevant to emerging needs
A systems-driven
approach that has stimulated growth in keeping with institutionalized
protocols and
practices
Financial
discipline that has led to enhanced shareholder value
A professional
approach that translates knowledge and data into better interpretation of
market needs
A proactive
approach to current and future challenges
Quality
At the company believe
that their consistent ability to deliver quality products has been their key
differentiator. They have instituted a continuous quality improvement culture
and a strong systems driven focus to ensure that the quality of their products
consistently meet or exceed international benchmarks. The company's processes
are certified under ISO 9001:2000 Quality Management System Standard, ISO
14001:2004 Environment Management System Standard and OHSAS 18001:1999 for
Occupational Health and Safety Management System Standard.
They define quality
as 100% conformance to customer requirement. It's like an attitude with them, a
part of every process. This is because they realize that even one in a million
error prone disc can spell disaster for the user. So, nothing but 'zero defect'
manufacturing is what they target for their products.
Strictly dust free
working environments in all of their six state-of-the-art climate controlled
plants, the top of line machinery and equipment and benchmarked processes and
practices assist them in giving quality products consistently. A strong use of
statistical techniques and in-house developed process control methods has
enabled defects to approach six sigma levels.
On average, they
invest close to 50 man-hours per year in quality training across all
manufacturing disciplines to create a high quality conscious culture. Their
quality strategy is not control oriented, but preventive in nature thereby
enabling them to minimize the cost of quality while simultaneously achieving
one of the lowest defect rates within the industry.
European Optic Media Techonology
European Optic
Media Techonology Gmbh (Europtic) incorporated in the city of Erfurt, state of
Thuringen, Germany in September 2002, is a 100% subsidiary of Moser Baer India
Limited. The subsidiary has been set up to provide thrust to the global
marketing position of Moser Baer.
The objective of
Europtic is to set up green field manufacturing facility to produce optical
media of various types. The Company has been established with the objective of
adressing high-end niche markets. It will establish manufacturing facilities in
Europe that will create research and development, marketing, distribution and
logistics capabilities to service the requirements of their OEM, and retail and
enterprise customers.
The company is
under the visionary leadership of Mr. V.J Prakash, Managing Director and Rainer
Schuett, Chief Operating Officer.
Moser Baer Photovoltaic
Moser Baer
Photovoltaic incorporated in New Delhi, India is a subsidiary of Moser Baer
India Limited that caters to the photovoltaic (PV) business.
The company plans
to make the solar power generation business by manufacturing solar cells and
modules, is targeting an annual capacity of 80 MW in Phase I. The initial
project cost is estimated to be Rs 2600 millions ($58 million), with Moser Baer
investing Rs 1120 millions ($25 million) in the new venture.
Moser Baer SEZ
Moser Baer SEZ is a
public limited subsidiary, incorporated by Moser Baer India Limited in February
2006. The subsidiary will function as a “developer” of special economic zones
in India.
The company has
made a foray into photovoltaic business in October 2005 and planned to make the
solar power generation business by manufacturing solar cells and modules. The
“developer” status provides convenience and advantages to the company.
The prospective
units expected to settle in this SEZ would be companies upstream and downstream
in the business.
PRESS RELEASES:-
Moser Baer launches 600VA UPS with improved features for better
performance
June 10, 2008
New Delhi 10th June 2008: Moser Baer, India’s largest and world’s
second largest optical storage manufacturer today announced the launch of its
600VA UPS in the market. The IT peripherals segment of Moser Baer has been in
the market from 2007 and has introduced various products like USB Drives,
Memory cards, DVD writers, Headphones, Mouse, Keyboards, etc. The UPS is being
launched by Moser Baer through its national distributor - Ingram Micro India
Ltd.
The UPS being introduced in the market has features like uninterruptible power
supply with battery discharge protection and automatic voltage regulator, which
helps to regulate the input and output voltage. According to Moser Baer, the
automatic voltage regulator ensures that workstations work in normal mode
without using batteries.
It also gives full Discharge, Over Charge & over Load Protection. Apart
from line surge protection, it also has communication interface that helps in
securing shutdown of the system.
The Battery backup time is more than 15 min & the recharge time is 5-6
hours.
Moser Baer also offers two-year warranty on UPS and one-year warranty on
Battery which is supported by on site service for the consumers.
“Moser Baer has always been a leader in the industry. With newer and improved
products on the plate we hope to maintain that position in the IT Peripheral
Market and offer better value to their consumers, says Mr. Bhaskar Sharma,
Executive Vice President IT& Consumer Electronics Division, Moser Baer
India Ltd.”
About Moser Baer India
Moser Baer, headquartered in New Delhi, is a leading global technology
company. Established in 1983, the company successfully developed cutting edge
technologies to become the world’s second largest manufacturer of Optical
Storage media like CDs and DVDs. The company also emerged as the first to
market the next-generation of storage formats like Blu-ray Discs and HD DVD.
Recently, the company has transformed itself from a single business into a
multi-technology organization, diversifying into exciting areas of Solar
Energy, Entertainment, IT Peripherals & Consumer Electronics
Moser Baer announces successful trials of first Gen 8.5 Thin Film plant
New Delhi – 11th May 2008: Moser Baer India Limited, a global
technology company, today announced that its subsidiary, PV Technologies India
Limited (PVTIL) successfully completed deposition trials for Gen 8.5 a-Si
(Amorphous Silicon) thin film modules, at its new 40 MW facility in Greater
NOIDA on 10th May 2008.
“This is truly a major landmark for them as it marks the completion of
the first project for manufacture of a-Si thin film modules with Gen 8.5
technology. Achieving successful and stable thin film deposition capability for
such large size panels in a record time further manifests their technology and
project execution capabilities. We commenced equipment trials on schedule in
March 2008 and are now on track for commencing commercial production on
target", said Ravi Khanna, CEO, Moser Baer PV.
Yogesh Mathur, Group CFO, Moser Baer India Limited said, “We see an
increasingly significant role for Thin Film technologies in meeting peaking
power requirements and now aim to be a significant player in this segment. The
40 MW Thin Film facility has met key project objectives and we continue with
their significant capacity ramp up plans.”
Photo Voltaic Technologies India Limited has recently signed a
Memorandum of Understanding (MoU) with a leading global equipment supplier to
secure supply of critical equipment for an additional 565 MW phased expansion
of its Thin Film photovoltaic modules manufacturing capacity, which together
with the current project capacity of 40 MW will take the total manufacturing
capacity to over 600 MW by 2010.
Photovoltaic modules based on large area Thin Film technology provide a
potential roadmap to significantly lower the cost of solar energy to consumers.
The demand for Thin Film based solar modules is expected to grow at a robust
pace with increasing applications. Thin film solar modules are ideal for solar
farms, rural applications and building integrated Photovoltaic.
About Moser Baer India Limited
Moser Baer, headquartered in New Delhi, is a leading global technology company.
Established in 1983, the company successfully developed cutting edge
technologies to become the world’s second largest manufacturer of Optical
Storage media like CDs and DVDs. The company also emerged as the first to
market the next-generation of storage formats like Blu-ray Discs and HD DVD.
Recently, the company has transformed itself from a single business into a
multi-technology organisation, diversifying into exciting areas of Solar
Energy, Entertainment and IT Peripherals & Consumer Electronics.
Through its wholly owned subsidiaries, the company manufactures
photovoltaic cells and modules by straddling multiple technologies including
crystalline silicon, concentrator, nano technologies and thin films. oser Baer
Entertainment offers home video titles in various Indian languages at unmatched
prices and is also engaged in media content creation. The company has also
initiated marketing of a series of IT Peripherals and Consumer Electronics
gadgets.
Moser Baer has over 6,000 full-time employees and multiple manufacturing
facilities in the suburbs of New Delhi.
Moser Baer announces 1:2 bonus
Wednesday, May 02, 2007
New Delhi, 2 May 2007: The Board of Directors of Moser Baer
India Limited announced an issue of bonus shares in the ratio of 1:2 (one share
for every two shares held) by capitalizing a part of its reserves.
According
to Deepak Puri, Chairman and Managing Director, Moser Baer India Limited, “The
company’s optical media business has reverted back to normal profitability and
the new businesses have successfully taken off. With the positive outlook of
their various businesses, the board felt it appropriate to issue bonus shares.
This underlines the growing confidence in their new initiatives and the value
that these can create for their stakeholders.”
The
company is constantly evaluating various opportunities and special projects
which could be highly value accretive. To be able to respond quickly as these
special projects/opportunities crystallize, the Board of Directors also
approved raising of capital to finance the company’s expansion/special projects
through a mix of debt/equity and convertible instruments up to USD 150 million.
This is subject to shareholders approvals where applicable.
About
Moser Baer India
Moser
Baer, headquartered in New Delhi, India, was established in 1983. The Company
has successfully developed cutting edge technologies for recordable optical
media, constantly innovating and introducing new products and process. The
company currently has over 5,000 full-time employees and has multiple
manufacturing facilities in the suburbs of New Delhi, The company services it's
customers through 6 marketing offices and subsidiaries/affiliates in India, the
US, Europe and Japan. An emphasis on high quality products and services has
enabled Moser Baer to emerge as one of India's leading technology companies,
with more than 16.5% share of the global recordable optical media market and
new initiatives in technology-lead sectors including Solar Photovoltaic energy
and Home Entertainment.
Moser Baer Photo Voltaic announces US$880 million strategic
sourcing tie-up with REC Group
Friday, July 27, 2007
· To ensure assured supply of high quality silicon wafers for eight years starting from 2008.
New Delhi –27th July 2007: Moser Baer Photo Voltaic Limited
(MBPV), a subsidiary of Moser Baer India Limited (MBI), and the Norway based
REC Group today announced the signing of a definitive contract for sale and
delivery of high quality multicrystalline silicon wafers by REC to MBPV over an
eight-year period beginning from 2008.
According to Ravi Khanna, CEO, MBPV, “We greatly value the
technical, managerial and operation capabilities of REC and we believe that
this strategic sourcing deal is a win-win situation for both sides. It will
provide a long term customer for REC and an assured supply of high grade
silicon wafers to MBPV.”
Globally, given the rapid growth of the photovoltaic industry,
there is a shortage of silicon wafers, a key raw material for the photovoltaic
industry. While the demand continues unabated, the supply is expected to remain
tight in the near to medium term. An assured supply of silicon wafer will
provide a significant competitive advantage to MBPV in the current industry
scenario.
The contract follows MBPV’s strategic sourcing initiative with
Deutsche Solar and its acquisition of a 40% strategic equity stake in the
Slovenia-based Solarvalue Proizvodnja d.d. which plans to set up a capacity of
4,400 tonnes of solar grade silicon by end 2008. The three pronged strategy is
part of our objectives to access a regular supply of high quality solar grade
silicon at competitive pricing.
The REC contract is structured as a take-and-pay contract with a
reducing price trend on an annual basis with a cumulative potential value of
approx. US$ 880 million. The delivery of wafers under the new contract is
expected from 2008 and continuing over an eight-year period from the first
shipment. The contract assures a regular supply of silicon wafers in the medium
to long term and also ensures that the company benefits from any increased
efficiencies in the silicon wafer market in the future.
“We are very happy to add Moser Baer as one of their strategic
customers, a company that has clearly proven track record of mass production of
quality products”, says Ingelise Arntsen, Executive Vice President in REC.
MBPV is straddling multiple future technologies as it believes in
a customer driven approach in providing optimized products to installations
across the world. Responding to the rapidly expanding solar PV market, where
worldwide demand far outstrips supply, MBPV is moving towards technological
leadership and developing a sustainable competitive edge by investing into
disruptive technologies.
About Moser Baer Photo Voltaic Limited
Moser Baer Photo Voltaic incorporated in New Delhi, a wholly owned
subsidiary of Moser Baer India Limited, in the business of photovoltaic (PV)
cells and modules. MBPV plans to manufacture solar cells and modules by
straddling multiple technologies including crystalline silicon, concentration,
nano technology and thin films. The manufacturing facilities are housed in a
renewable energy SEZ at Greater Noida.
The parent company Moser Baer India Limited is the second largest
manufacturer of optical storage media in the world having five state of the art
facilities at Noida and Greater Noida. MBI reported revenues of over Rs 20000
Millions in FY07.
About REC
REC is uniquely positioned in the solar energy industry with a
broad presence across the solar value chain. REC Silicon and REC Wafer are the
world's largest producers of polysilicon and wafers for solar applications. REC
Solar produces solar cells and solar modules. REC Group had revenues in 2006 of
NOK 4,334 million and an operating profit of NOK 1,574 million.
Moser
Baer launches next generation format
Tuesday, July 25,
2006
The first company
in the world to start volume shipments of HD DVD-R
New
Delhi, 25 July 2006: Moser Baer today announced that it has begun shipping HD DVD-R
(recordable), a next generation format, to its global OEMs customers. The HD
DVD-R will have a capacity of 15 GB and offers more than three times the data
storage capacity of standard DVD media. HD DVD offers an ideal solution for
reliable business backup, including medical and government imaging,
photography, video graphy, as well as high definition video recording.
According
to Ratul Puri, executive director, Moser Baer, “The world is moving towards
High Definition content. This is a significant technology shift in the global
optical media industry and will radically change the consumer’s viewing
experience. According to the US based Strategic Marketing and Decisions, the
demand for the next generation high density formats is expected at 1.5 billion
discs over the next three years. This represents an exciting opportunity for
us, as Moser Baer now has the first mover advantage with this launch.”
In a
fast evolving market landscape and increasing competition, companies are
increasingly using technology to differentiate themselves. Moser Baer has
embarked on a strategy to transform into a technology developer and innovator
from a technology recipient. Comments Giriraj Nyati, VP R&D and
Engineering, “This is a significant landmark for us. And they are very proud
that an Indian company has emerged in a strong leadership position in the next
generation optical media space and current launch is the first in a series of
many such launches expected throughout the year. This reaffirms their
technology leadership position along with their manufacturing leadership
position.”
The
intensive R & D thrust will help us to further consolidate their global
leadership position in the optical media space.
The
company continues to leverage its core skills in base material engineering,
thin film coating, precision sputtering and deep UV mastering technologies.
Starting from the current quarter and in conjugation with drive and recorder
availability, the company expects to be first to market in a majority of the
next generation formats. The four products which the company believes will have
a significant market potential in the future are DVDR Dual Layer, HD DVD-R
(recordable) and RW (re-writable), HD DVD Dual layer, and BD-R and RE.
About
HD DVD
The HD
DVD format supports a wide variety of resolutions, from low-resolution CIF and
SDTV up to HDTV formats such as 720p, 1080i and 1080p. The HD DVD format is
promoted by Toshiba, NEC, Sanyo, Microsoft, and Intel, among others. In terms
of major studios, HD DVD is currently exclusively backed by Universal Studios,
and is nonexclusively backed by Paramount Pictures and Warner Bros., Studio
Canal, and The Weinstein Company.
About
Moser Baer India Limited
Moser
Baer India Limited, headquartered in New Delhi, was established in 1983 and is the
second largest manufacturer of optical media disc in the world. It continues to
develop cutting-edge technologies for recordable optical media, constantly
innovating and introducing new products and processes. An emphasis on
high-quality products and services has enabled Moser Baer to emerge as one of
India’s leading technology companies with a nearly 18% share of the global
recordable optical media market. The company employs over 7,000 people and has
multiple manufacturing facilities in the suburbs of New Delhi,
REVIEW
OF OPERATIONS
Demand
and Pricing:
The
global optical storage media industry is now on a steady path to recovery,
driven by consolidation of capacity, continued growth in consumer demand and
signs of softening of prices for key inputs. The company further consolidated
its position and according to Techno System and Research (TSR), Japan, has
emerged as the second largest manufacturer of optical storage media in the
world.
The
company continues its efforts to gradually revert to normal levels of
operational & financial performance, as reflected in a profit before tax of
INR 67.2 million in 1QFY 2007 against a loss of INR 138.7 million in 1QFY 2006.
Lower sales from inventories and the traditional summer demand slackness are
the reasons for a 15% reduction in shipment volumes during the quarter on a
sequential basis. However, improved products mix –with normalization of CDR/RW
sales and increase in DVDR/RW shipments – has led to a 3% increase in the
optical media ASP, helping improve operating parameters during the quarter.
“A
steady improvement in market variables continues. The recovery in CDR/RW media
market pricing since last quarter is a positive, and sustainable. The other
positive during the quarter is a normalization of revenue mix. They expect the
trend to start reverting back to normal operating and financial levels in the
medium term driven by increasing DVDR/RW contribution, improving CDR/RW
pricing, rising production efficiencies and softening of input costs.” Said Mr.
Ratul Puri, Executive Director, Moser Baer India Limited, said.
Costs:
The softening of
market purchase prices of PC (poly carbonate) continued during the quarter –
which is another major positive factor for the industry. While this did not
impact the quarter under review, it will be a major positive influencer of
their margins. The company continues to drive extensive cost reduction
programs, with a focus on DVD formats, resulting in increasing manufacturing
efficiencies. This has ensured margin stability on DVDR/RW formats despite a
pressure on pricing. They have been able to research, design and co-develop
equipment which improves process yields, enabling us to re-set internal
benchmarks for production cost reduction.
Future
trends
The
trend of gradual recovery and improving industry conditions should continue
into the current year. While CDR/RW pricing should remain firm in the medium
term, DVDR/RW prices are expected to continue to follow its cost curve,
enabling us to maintain healthy margins in the optical media business. The
revenue share of higher margin DVDR/RW formats is expected to further rise to a
target of 60% by 4QFY07, thereby improving operating performance.
Moser
Baer emerges as the winner of the 'Golden Peacock Environment Management Award
Friday,
June 17, 2005
New Delhi, June
17, 2005: After receiving a flurry of prestigious awards in the recent past,
Moser Baer India Limited, India's largest and world's third largest
manufacturer of optical media storage, emerged yet again as the winner and
brought home the World Environment Foundation 'Golden Peacock Environment
Management Award' for the year 2005. The award was collected by Mr. S.
Rajalingham , Head of the second largest optical media plant of Moser Baer
Moser
Baer came on top on all the evaluation parameters, which included
Eco-Innovation, Preservation of Natural Resources, Eco-habitation,
Competitiveness in Environment Management and Excellence in Environment
Protection.
The
award was presented at a ceremony held in the serene locales of Palampur. Also
present at the ceremony were Dr Olla Ullsten, former Prime Minister of Sweden,
Dr. Mahadev Mehra, President, World Council for Corporate Governance, Justice
MN Venkatchailah, former Chief Justice of India, Smt Vidhya Strokes, Power
Minister, HP and Shri Shanta Kumar, former Chief Minister, HP
Speaking
on the occasion, Mr. Rajalingham said, "it is indeed a proud moment for
Moser Baer and me, as I am personally very proud of being a part of Moser Baer,
and thereby a contributing member for the preservation of their environment,
through Moser Baer.
Moser Baer has not only set high-quality standards for its products, but is
equally conscious about issues like environment, health and safety. Receiving
this award is not only an acknowledgement of their efforts, but also motivates
us to work even harder and help their environment."
Moser
Baer is the first company in India to receive Phytosanitary certificate with
permanent code number IN-001-HT for elimination of methyl bromide and
development of in-house heat treatment process, recognized by Ministry of
Forest & Environment Govt. of India and IPPC Rome. Also, Sony Corporation
Japan has announced Moser Baer with a Green Partner Certification for the non-use
of banned substances in product and packing material.
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.42.97 |
|
UK Pound |
1 |
Rs.84.72 |
|
Euro |
1 |
Rs.66.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
67 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|