MIRA
INFORM REPORT
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Report Date : |
14.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
RECKITT BENCKISER [INDIA] LIMITED |
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Formerly Known As : |
RECKITT AND COLMAN OF INDIA LIMITED |
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Registered Office : |
227, Okhla
Industrial Estate, Phase – II, Okhla, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
05.07.1951 |
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Com. Reg. No.: |
55-127062 |
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CIN No.: [Company
Identification No.] |
U74999DL1951PLC127062 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKR01561A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and marketing of Drugs & Medicines, Bulk
Drugs, Formulations, Denture Products, Food Products, Laundry Products,
Household Products and Aromatic Chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 6700000 |
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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 and reputed company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is good. Payments are always correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
227, Okhla
Industrial State, Phase – II, Okhla, New Delhi – 110020, India |
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Tel. No.: |
91-11-41609300 |
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Mobile No.: |
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Fax No.: |
91-11-26323617 |
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E-Mail : |
surrender-sharma@reckittbenckister.com
Rajeshk.jha@reckittbenckiser.com
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Website : |
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Corporate Office : |
Enkay Centre, 2nd Floor, Vanijya Nikunj, Udyog Vihar, Phase V, Gurgaon -122016, Haryana |
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Tel. No.: |
91-124-6398200 |
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Fax No.: |
91-124-6398230 |
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Factory : |
25, Ho Chi Minh Sarani, Behala, Kolkata - 700 061, West Bengal |
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Tel. No.: |
91-33-2493 4079 / 4717 |
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Fax No.: |
91-33-2493 3529 |
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Contact Person : |
Mr. Saibal Sarkar – Factory Manager |
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Factory : |
20/1, Chetla Road, Kolkata - 700 027, West Bengal |
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Tel. No.: |
91-33-2479 8361 /
8362 |
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Fax No.: |
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Contact Person : |
Mr. Saibal Sarkar – Factory Manager |
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Factory : |
P. O. Kalla, Central Hospital, Dhadka, Asansol - 713 340, West Bengal |
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Tel. No.: |
91-341-2202521 / 2204683 |
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Fax No.: |
91-341-2209788 |
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Contact Person : |
Mr. S K Bardhan- Factory Manager |
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Factory : |
61-62, Hootagalli Estate, Mysore - 571 186, Karnataka |
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Tel. No.: |
91-821-2402509 /
2402520 |
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Fax No.: |
91-821-2402758 |
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Contact Person : |
Mr. D N Kulkarni, Factory Manager |
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Factory : |
Plot No. 176, SIPCOT Hosur Industrial Area, Hosur - 635 126, Tamilnadu |
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Tel. No.: |
91-4344-276661 / 276490 |
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Fax No.: |
91-4344-276662 / 277205 |
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Contact Person : |
Mr. Debjit Banerjee – Factory Manager |
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Factory : |
B-4/10, Asaf Ali Road, New Delhi – 110 002 |
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Tel. No.: |
91-11-23272121 |
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Fax No.: |
91-11-23281662 |
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Contact Person : |
Mr. Pankaj Agarwal – Regional Manager |
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Factory : |
Mahalaxmi Chambers, 29, Mahatma Gandhi Road, Bangalore – 560 001, Karnataka |
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Tel. No.: |
91-80-25584614 |
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Fax No.: |
91-80-25584738 |
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Contact Person : |
Mr. Vishal Gupta – Regional Manager |
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Factory : |
107-111, Nirman Kendra, 1st Floor, Dr. E. Mosses Road, Near Famous Studio, Mahalaxmi, Mumbai – 400 011, Maharashtra |
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Tel. No.: |
91-22-24965840 |
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Fax No.: |
91-22-24980801 |
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Contact Person : |
Mr. Prahlad Mishra – Regional Manager |
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Factory : |
41, Chowringhee Road, Kolkata – 700 071, West Bengal |
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Tel. No.: |
91-33-22886850 |
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Fax No.: |
91-33-22888085 |
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Contact Person : |
Mr. Manish Gupta – Regional Manager |
DIRECTORS
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Name : |
Mr. Chander Mohan Sethi |
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Designation : |
Director, Managing Director |
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Address : |
302 B, Court
Greens, Laburnum Condominium Complex, Sushant Lok 1, Gurgaon – 122002,
Haryana, India |
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Date of Birth/Age : |
08.03.1949 |
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Date of Appointment : |
21.01.2002 |
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Other Directorships : |
Reckitt Benckiser (Lanka) Limited Reckitt Benckiser (Bangladesh) Limited |
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Name : |
Mr. Colin Day |
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Designation : |
Director |
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Address : |
The Beeches, 17 Stratton
Road, Beaconsfield, Bucks HP9 1BH, United Kingdom |
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Date of Birth/Age : |
21.03.1955 |
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Date of Appointment : |
24.03.2001 |
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Other Directorships : |
Reckitt Benckiser Plc Easyjet Plc Bell Plc Reckitt Benckiser (Lanka) Limited Reckitt Benckiser (Pakistan) Limited |
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Name : |
Mr. Alfred Kurt Caspers |
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Designation : |
Director |
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Address : |
Winbar, Lianvair
Drive, Ascot Berkshire, SL5 9 LN, United Kingdom |
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Date of Birth/Age : |
20.03.1961 |
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Date of Appointment : |
01.03.2000 |
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Other Directorships : |
Reckitt Benckiser
[Lanka] Limited |
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Name : |
Mr. Arroyo Guerra
Alfredo |
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Designation : |
Director |
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Address : |
Faseo De Gracia,
908007 Barcelona, Spain |
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Date of Birth/Age : |
07.04.1957 |
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Date of Appointment : |
08.09.2003 |
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Name : |
Mr. David Walter
Poulter |
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Designation : |
Director |
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Address : |
The Hornets Nest,
Miller Place, Gerrards Cross, Bucks SL97QQ |
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Date of Birth/Age : |
21.08.1962 |
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Date of Appointment : |
25.02.2005 |
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Name : |
Mr. Manish Dawar |
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Designation : |
Whole Time
Director, Secretary |
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Address : |
D502, Lagoon
Apartments, Ambience Island NH 8, Gurgaon, Haryana |
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Date of Birth/Age : |
19.12.1965 |
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Date of Appointment : |
26.06.2003 |
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Other Directorships : |
Reckitt Piramal
Private Limited Reckitt Benckiser
(Lanka) Limited Reckitt Benckiser
(Bangladesh) Limited |
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Name : |
Mr. Daniel
Carretero Martinez |
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Designation : |
Director |
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Address : |
Crer Sant Pere
Martir, 20, 3, 2, Barcelona 0812 |
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Date of Birth/Age : |
20.10.1968 |
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Date of Appointment : |
01.11.2006 |
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KEY EXECUTIVES
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Name : |
Mr. Ramamirtham Rajagopalan |
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Designation : |
Vice President, Secretary |
SHAREHOLDING PATTERN
Equity share breakup (percentage of total equity)
As on 30.06.2007
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Category |
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Percentage |
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Foreign holdings (Foreign institutional investor(S), Foreign companie(S)
Foreign financial institution(S), Non-resident indan(S) or Overseas corporate
bodies or Others |
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99.89 |
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Other top fifty(50) shareholders (other than listed above) |
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0.11 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of Drugs & Medicines, Bulk
Drugs, Formulations, Denture Products, Food Products, Laundry Products,
Household Products and Aromatic Chemicals. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
1476 |
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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 : |
Price Waterhouse Chartered
Accountants Building 8, 7th and 8th Floor, Tower – B, DLF
Cyber City, Gurgaon – 122002, Haryana- HR, India P-1, Aditya Vihar, Saidulajab, Opposite ‘D’ Block, Saket,
Mehrauli-Badarpur Road, New Delhi – 110030, Delhi-Dl, India |
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Memberships : |
Confederation of Indian Industry |
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Holding Company : |
Reckitt Benckiser Plc, UK |
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Subsidiaries : |
Reckitt Piramal Private Limited |
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Fellow Subsidiaries : |
Lancaster Square Holdings SL Reckitt Benckiser Corporate Services Limited, UK Reckitt & Colman [Overseas] Limited, UK Reckitt Benckiser (Bangladesh) Limited Reckitt Benckiser (Australia) Pty Limited Reckitt Benckiser [Lanka] Limited Reckitt Benckiser (Malaysia) SDN BHD Reckitt Benckiser [Philippines], Inc. Reckitt Benckiser (South Africa) Pty Limited Reckitt Benckiser Arabia FZE Reckitt Benckiser Austria GmbH Reckitt Benckiser Detergents GmbH, Deuschland Reckitt Benckiser EA Limited, [Kenya] Reckitt Benckiser Inc., U.S.A. Reckitt Benckiser Italia SPA Reckitt Benckiser Nigeria Limited Reckitt Benckiser NV, Netherland PT. Reckitt Benckiser Indonesia Benckiser Producktions GmbH Ladenburg, Germany |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares |
Rs. 10/- each |
350.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26279612 |
Equity Shares |
Rs. 10/-
each |
Rs. 262.796
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
262.796 |
262.796 |
329.132 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1432.388 |
1369.922 |
2260.583 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1695.184 |
1632.718 |
2589.715 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1695.184 |
1632.718 |
2589.715 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
278.648 |
369.014 |
354.742 |
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Capital work-in-progress |
491.505 |
25.196 |
3.459 |
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INVESTMENT |
10.000 |
17.500 |
25.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
111.210 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
978.730
|
961.458
|
750.874 |
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Sundry Debtors |
165.106
|
181.694
|
159.970 |
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Cash & Bank Balances |
3385.899
|
2199.704
|
2661.127 |
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Other Current Assets |
71.827
|
28.404
|
15.916 |
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Loans & Advances |
147.219
|
107.410
|
185.534 |
|
Total
Current Assets |
4748.781
|
3478.67 |
3773.421 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
3086.170
|
1638.082
|
1344.106 |
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|
Provisions |
747.580
|
619.580
|
334.011 |
|
Total
Current Liabilities |
3833.750
|
2257.662 |
1678.117 |
|
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Net Current Assets |
915.031
|
1221.008 |
2095.304 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1695.184 |
1632.718 |
2589.715 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
10986.305 |
8944.172 |
7503.994 |
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Other Income |
560.356 |
393.144 |
524.823 |
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Sale of good manufactured |
33.068 |
45.821 |
69.506 |
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Total Income |
11579.729 |
9383.137 |
8098.323 |
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Profit/(Loss) Before Tax |
1909.402 |
1425.100 |
1276.060 |
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Provision for Taxation |
348.670 |
404.451 |
324.190 |
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Profit/(Loss) After Tax |
1560.732 |
1020.649 |
951.870 |
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Earnings in Foreign Currency : |
|
45.821 |
69.506 |
|
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|
33.068 |
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Expenditures : |
|
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Raw Material Consumed |
5187.016 |
4411.268 |
3716.912 |
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Salaries, Wages, Bonus, etc. |
575.111 |
491.702 |
742.112 |
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Managerial Remuneration |
61.128 |
48.067 |
41.230 |
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Payment to Auditors |
3.494 |
3.577 |
3.144 |
|
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Insurance Expenses |
8.736 |
8.061 |
6.551 |
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Power & Fuel |
42.012 |
66.551 |
80.088 |
|
|
Depreciation and amortization |
137.232 |
95.243 |
0.000 |
|
|
Increase or decrease in finished goods |
[61.338] |
[206.680] |
0.000 |
|
|
Consumption of stores and spare |
5.732 |
6.713 |
0.000 |
|
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Other Expenditure |
3711.204 |
3033.535 |
2232.226 |
|
Total Expenditure |
9670.327 |
7958.037 |
6822.263 |
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KEY RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
PAT / Total Income |
(%) |
13.47
|
10.87 |
11.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
17.38
|
15.18 |
15.75 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
37.98
|
37.03 |
30.91 |
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Return on Investment (ROI) (PBT/Networth) |
|
1.13
|
0.87 |
0.49 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.26
|
1.38 |
0.64 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.54 |
2.24 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was formerly known as Reckitt & Colman of India was incorporated in 1951 and promoted by the British multinational Reckitt Benckiser plc which presently holds a 51% stake in the company.
The name of the company was changed to present with effect from 18th December, 2000 consequent upon the change in the name of the holding company.
Subject is a subsidiary of parent Reckitt & Colman Plc, which merged worldwide with Benckiser in December, 1998 and thus the parent's name changed to Reckitt-Benckiser. At present, the parent has a stake of 51% in the Indian Industry.
Reckitt & Colman Plc dominates in small niche segments such as household hygiene products and antiseptics. In India, Unilever emerged as a dominating player in the personal product business, strengthening its presence through a spate of mergers and acquisitions. Colgate leads the oral care segment but faces stiff competition from Hindustan Lever. The company has market leadership in small niche segments.
In 1987, the company set up a multi-purpose chemical plant at Hosur. Commercial production at this plant commenced in Jan.'87. In 1991, it diversified further into the production of raw materials used in pharmaceutical and household products. It introduced new products like mosquito-repellents and liquid soap.
In 1994, the company entered into an agreement with Shell International
Petroleum Company, UK, to market the teepol brand dishwashing liquid in India
and Nepal and it launched Teepol B-300 in Oct.'95. Two lines of coil plant were
also commissioned in Sep.'94 under the 1st phase of household insecticide
project.
During 1998-99, the company commissioned the new Dettol liquid plant at Mysore
and increased the installed capacity of its bulk drugs, liquids, tablets and
household products to 286 MT, 3000 KL, 653 MT and 14037 MT respectively.
Subject has built its strong brand equity over a period of time by technological
innovations, consistent high quality, aggressive advertisement and marketing
etc. Availability near the consumer through a wide distribution network is its
another crucial success factor as products are of small value, frequently
purchased and daily use items.
The company announced a VRS in July 2000, for the employees located in specific
units, in response to which, 320 employees opted for VRS at the end of the
scheme. The total liability aggregating to Rs. 117.500 millions in respect of
the same will be charged in the accounts over three years.
During the year 2000, the company launched the Mortein Xtra Power range of mosquito coils and mats. The new Xtra power coil is bigger in size, red in colour and has a pleasant fragrance. In order to drive convenience in the shoecare category, the company also re-launched its Cherry Blossom polish in a handy, compact case. It is appropriately called Cherry Handy Shine. The company is also planning to launch a couple of new products in the shoecare category.
Trade Reference :
Pest Control India Limited
BK Technologies Private Limited
Kanhan Packages
True Packaging
Sri Sudhindra Offset
Ushma Industries
AK Industries
Bengal Tin Box
Cooper Plastic
Dixit Brothers
DG Industries
Sangido
Super Offset
Progressive Printers
Pragati Printers
U Tech Industries
Al Aromas
Fixed Assets
Land – Freehold,
Leasehold Improvements, Buildings, Plant and Machinery, Furniture &
Fittings, Vehicles and Computers.
Industries
|
Item Code No. |
Product Description |
|
5122 |
Drugs, Drug
Proprietories, and Druggists’ Sundries |
|
5169 |
Chemicals and
Allied Products |
|
2099 |
Food Preparations
|
|
NONCYC |
Consumer/Non
–Cyclical |
|
PERPRD |
Personal and
Household Products |
|
311999 |
All Other Miscellaneous
Food Manufacturing |
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. 42.16 |
|
UK Pound |
1 |
Rs. 82.28 |
|
Euro |
1 |
Rs. 65.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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 |
|