MIRA
INFORM REPORT
|
Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ASIAN PAINTS
[INDIA] LIMITED |
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Registered
Office : |
Asian Paints House,
6A, Shanti Nagar, Santacruz (East), Mumbai - 400 055, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
24.10.1945 |
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Com. Reg. No.: |
11-4598 |
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CIN No.: [Company
Identification No.] |
L24220MH1945PLC004598 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
MUMA00665A |
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PAN No.: (Permanent
Account No.) |
AAACA3622K |
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Legal Form: |
Public Limited Liability
Company. The company’s shares are listed on the stock exchange. |
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Line of
Business : |
Manufacturers of
Paints, Enamels, etc. |
RATING &
COMMENTS
|
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 30000000 |
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Status : |
Excellent |
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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. Fundamentals of the company
are strong and healthy. 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 : |
Asian Paints House,
6A, Shanti Nagar, Santacruz (East), Mumbai - 400 055, India. |
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Tel. No.: |
91-22-56958000 |
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Fax No.: |
91-22-56958803 /
8888 / 8107 |
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E-Mail : |
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Website : |
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Head Office : |
Nirmal, 5th
Floor, Nariman Point, Mumbai - 400 021, Maharashtra, INDIA |
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Tel. No.: |
91-22-22024544 /
22024517 / 22024799 |
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Fax No.: |
91-22-22028993 |
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Mumbai Office : |
912, Raheja
Centre, Free Press Journal Road, Nariman Point, Mumbai : 400 021. |
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Tel. No. : |
2288 1568 / 1569
/ 4527 ; 2282 5163 |
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Fax No. : |
2282 5484 |
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Email : |
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Mumbai Address : |
6A Shantinagar, Santacruz (E); Mumbai : 400 055 |
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Email : |
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Accounts,
Materials & Phthalic Division : |
Plot No. 5,
Gaiwadi Industrial Estate, S. V. Road, Goregaon (West), Mumbai - 400 062, Maharashtra,
India |
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Penta
Division : |
Warehouse No. E -
89, GNT Road, Ponniammanmedu (P.O), Madhavaram, Chennai - 600 010, Tamilnadu,
India |
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Factory : |
Plot No.2702, GIDC Industrial Area, Ankleshwar 393 002, Gujarat.
B5-B10, Sipcot Industrial
Complex, Cuddalore 607 005, Tamilnadu. |
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Sales Offices
: |
Agartala, Agra,
Akola, Ahmedabad - Narol, Sarkhej, Bangalore - Peenya, Bilekahalli, Baroda, Bhopal,
Chandigarh, Chennai - Madhavram, Guindy, Coimbatore, Cuttack, Faridabad,
Ghaziabad, Goa, Gurgaon, Guwahati, Gwalior, Halol, Hubli, Indore, Jabalpur,
Jaipur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kanpur, Kolkata, Kochi,
Kolhapur, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai - Dadar,
Kandivli, Mulund, Vashi, Nagpur, Nashik, New Delhi - Badarpur, Mayapuri,
Patparganj, Wazirpur, Panchkula, Patna, Pimpri, Pune, Raipur, Rajkot,
Saharanpur, Salem, Secunderabad, Siliguri, Surat, Thiruvananthapuram,
Tiruchirapalli, Tirupathi, Udaipur, Varanasi, Vijayawada, Visakhapatnam and
Zirakpur |
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Regional
Distribution Centres : |
Located at
Ahmedabad, Bangalore, Ghaziabad, Hyderabad, Mumbai and Raipur |
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Overseas
Offices : |
Located at Sri Lanka,
Solomon Islands, Nepal, Sultanate of Oman and New Zealand |
DIRECTORS
|
Name : |
Mr. Ashwin C. Choksi |
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Designation : |
Chairman |
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Date of Birth/Age : |
62 years |
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Qualification : |
M. Com. |
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Experience : |
39 years |
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Date of Appointment : |
01.01.1965 |
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Name : |
Mr. Ashwin S Dani |
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Designation : |
Vice Chairman and Managing Director |
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Date of Birth/Age : |
62 Years |
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Qualification : |
B.Sci (Hons.), B.Sci (Tech.), M.S. |
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Experience : |
36 Years |
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Date of Appointment : |
01.10.1968 |
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Name : |
Mr. Abhay Vakil |
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Designation : |
Managing Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.Sci., B.S. |
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Experience : |
29 years |
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Date of Appointment : |
05.08.1974 |
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Name : |
Mr. Mahendra C
Choksi |
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Designation : |
Director |
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Name : |
Mr. Amar A Vakil |
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Designation : |
Director |
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Name : |
Ms. Tarjani Vakil
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Designation : |
Director |
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Name : |
Mr. Dipankar Basu |
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Designation : |
Director |
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Name : |
Mr. Deepak M.
Satwalekar |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Additional Director |
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Name : |
Dr. Swaminathan
Sivaram |
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Designation : |
Additional Director |
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Name : |
Mr. Mahendra M.
Shah |
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Designation : |
Additional Director |
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Name : |
Mr. Hasit Ashwin
Dani |
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Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh
Merchant |
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Designation : |
Chief Finance Officer and Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 31.03.2008]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of
Promoter |
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Indian |
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Individuals/Hindu Undivided Family |
9440770 |
9.84 |
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Bodies Corporate |
36771586 |
38.34 |
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Trust |
1241806 |
1.29 |
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Public
Shareholding |
|
|
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Mutual Funds/Axis |
1876625 |
1.96 |
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Financial Institutions/Banks |
60127 |
0.06 |
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Insurance Companies |
8636852 |
9.00 |
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Foreign Institutional Investors |
14430168 |
15.04 |
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Non Institutions
|
|
|
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Bodies Corporate |
6814169 |
7.10 |
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Individuals |
13466894 |
14.04 |
|
I] individuals shareholders holding nominal share capital upto Rs.
0.100 Million |
1236670 |
1.29 |
|
iI] individuals shareholders holding nominal share capital in excess
of Rs. 0.100 Million |
1944112 |
2.04 |
|
Total |
95919779 |
100 |
BUSINESS DETAILS
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Line of
Business : |
Manufacturers of
Paints, Enamels, etc. |
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Products : |
* Interior Wall Finish Matt * Iractor Emulsion Smooth wall finish * Premium Emulsion * Royale luxury Emulsion * Elastameric Hi-Performance Exterior Paint * Apcolite Premium Glass Enamel * PU Wood Finish Exterior |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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(a) Paints,
enamels, varnishes and blacks |
MT / KL |
300150 |
241903 |
|
(b) Synthetic
Resins (For mainly captive consumption) |
MT |
77880 |
55460 |
|
(c) Phthalic
Anhydride |
MT |
24000 |
23041 |
|
(d)
Pentaerythritol |
MT |
3000 |
4860 |
|
(e) Sodium
Formate |
MT |
1800 |
2742 |
|
(f) Formaldehyde
(50%)' |
MT |
13500 |
11690 |
GENERAL
INFORMATION
|
No. of Employees : |
About 2869 |
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Bankers : |
State Bank of
India, Mumbai, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
Shah &
Company Chartered
Accountants |
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Associates Company : |
Dutch Boy Phillppines Inc, |
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Subsidiaries : |
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Joint Venture : |
Asian PPG Industries
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
99,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 995.000millions |
|
50,000 |
11% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 5.000millions |
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Total |
|
RS.1000.000millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95,919,779 |
Equity Shares |
Rs. 10/- each |
Rs.959.200 millions |
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|
a) 93,989,940 Bonus
Shares of Rs. 10/- each fully paid up issued on capitalisation of Share
premium (Rs.21.910 million) and General Reserves (Rs.917.98 million). b) 294,000 shares of Rs. 10/- each issued
as fully paid up pursuant to the Scheme of Rehabilitation / Amalgamation of
Pentasia Chemicals Limited, without payment received in cash. |
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Total |
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Rs.959.200 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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|
|
|
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1] Share Capital |
959.200 |
959.200 |
959.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6481.600 |
5263.640 |
4763.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7440.800 |
6222.840 |
5722.200 |
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LOAN FUNDS |
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|
|
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1] Secured Loans |
669.000 |
318.790 |
330.510 |
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2] Unsecured Loans |
587.700 |
592.050 |
551.900 |
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TOTAL BORROWING |
1256.700 |
910.840 |
882.410 |
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DEFERRED TAX LIABILITIES |
0.000 |
284.680 |
305.380 |
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|
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TOTAL |
8697.500 |
7418.360 |
6909.990 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3349.100 |
3,004.300 |
3,112.310 |
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Capital work-in-progress |
116.200 |
242.590 |
82.780 |
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|
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|
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INVESTMENT |
3343.900 |
2745.510 |
2584.270 |
|
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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 |
4340.700
|
3487.860
|
3307.890 |
|
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Sundry Debtors |
2359.600
|
1851.090
|
1489.630 |
|
|
Cash & Bank Balances |
424.900
|
283.870
|
257.280 |
|
|
Other Receivable |
0.000
|
214.240
|
190.120 |
|
|
Loans & Advances |
1613.800
|
980.680
|
727.250 |
|
|
Advance Payment of Taxes (Net of provision for tax) |
0.000
|
16.580
|
0.000 |
|
|
Interest accrued on investments |
0.000
|
0.000
|
0.030 |
|
Total
Current Assets |
8739.000
|
6834.320
|
5,972.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6309.300
|
4335.490
|
3924.860 |
|
|
Provisions |
541.400
|
1072.870
|
916.710 |
|
Total
Current Liabilities |
6850.700
|
5408.360
|
4841.570 |
|
|
Net Current Assets |
1888.300
|
1425.960
|
1130.630 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8697.500 |
7418.360 |
6909.990 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
33809.900 |
28007.400 |
23626.900 |
|
|
Other Income |
1174.800 |
344.700 |
1059.700 |
|
|
Total Income |
34984.700 |
28352.100 |
24686.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
4120.500 |
3038.600 |
2708.000 |
|
|
Provision for Taxation |
1400.000 |
1170.800 |
969.800 |
|
|
Profit/(Loss) After Tax |
2720.500 |
1867.800 |
1738.200 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings of Own Product at FOB Value |
NA |
125.060 |
102.080 |
|
|
Export of traded goods at FOB value |
NA |
2.310 |
2.150 |
|
|
Royalty |
NA |
41.460 |
18.160 |
|
|
Others receipt including
recoveries from subsidiaries |
NA |
35.070 |
9.420 |
|
Total Earnings |
NA |
203.900 |
131.810 |
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
1960.850 |
1426.710 |
|
|
Stores & Spares |
NA |
30.580 |
34.270 |
|
|
Capital Goods |
NA |
31.380 |
54.190 |
|
|
Packing Materials |
NA |
19.320 |
29.600 |
|
Total Imports |
NA |
2042.13 |
1544.77 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
14293.800 |
11173.700 |
9862.600 |
|
|
Excise Duty |
4364.100 |
3592.800 |
3138.700 |
|
|
Power & Fuel Cost |
333.000 |
273.000 |
254.400 |
|
|
Other Manufacturing Expenses |
4713.800 |
3780.600 |
3264.400 |
|
|
Employee Cost |
1501.900 |
1250.70 |
1148.900 |
|
|
Selling and Administration Expenses |
4912.500 |
4215.000 |
3470.100 |
|
|
Miscellaneous Expenses |
137.700 |
490.800 |
297.700 |
|
|
Interest & Financial Charges |
153.300 |
81.600 |
65.700 |
|
|
Depreciation |
454.100 |
455.300 |
476.100 |
|
Total Expenditure |
30864.200 |
25313.500 |
21978.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
30.12.2007 |
31.03.2008 |
|
Type
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
7402.100 |
8912.000 |
9162.400 |
8685.100 |
|
Other Income |
87.800 |
261.100 |
168.900 |
112.000 |
|
Total Income |
7489.900 |
9173.100 |
9331.300 |
8797.100 |
|
Total Expenditure |
6239.600 |
7400.400 |
7621.500 |
7378.000 |
|
Operating Profit |
1250.300 |
1772.700 |
1709.800 |
1419.100 |
|
Interest |
17.500 |
25.500 |
26.900 |
12.800 |
|
Gross Profit |
1232.800 |
1747.200 |
1682.900 |
1406.300 |
|
Depreciation |
104.300 |
107.500 |
111.900 |
114.000 |
|
Tax |
349.700 |
598.500 |
380.700 |
456.800 |
|
Reported PAT |
742.300 |
1084.400 |
1076.900 |
848.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.16 |
0.15 |
0.14 |
|
Long Term Debt Equity Ratio |
0.11 |
0.12 |
0.12 |
|
Current Ratio |
1.18 |
1.14 |
1.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.38 |
3.87 |
3.46 |
|
Inventory |
8.63 |
8.23 |
8.71 |
|
Debtors |
16.06 |
16.77 |
16.47 |
|
Interest Cover Ratio |
27.88 |
42.32 |
42.22 |
|
Operating Profit Margin (%) |
13.98 |
13.96 |
13.75 |
|
Profit Before Interest and Tax Margin (%) |
12.64 |
12.33 |
11.74 |
|
Cash Profit Margin (%) |
9.39 |
9.04 |
9.37 |
|
Adjusted Net Profit Margin (%) |
8.05 |
7.41 |
7.36 |
|
Return on Capital Employed (%) |
53.99 |
50.28 |
43.94 |
|
Return on Net Worth (%) |
39.82 |
34.76 |
31.50 |
LOCAL AGENCY
FURTHER INFORMATION
RESULTS
OF OPERATIONS :
Total revenue for the standalone entity increased to Rs.28213 million from
Rs.23192 million in the previous year - a growth of 21.7%. The operating profit
increased by 19.2%, from Rs.3878 million to Rs.4622 million. The profit after
tax and extraordinary item increased to Rs.2720 million from Rs.1868 million,
representing a growth of 45.7%.
The consolidated sales and operating income increased to Rs.36700 million from
Rs.30210 million - a growth of 21.5%. Net profit after minority interest for
the group increased to Rs. 2810 million from Rs.2121 million, representing a
growth of 32.5%.
MANAGEMENT
DISCUSSIONS AND ANALYSIS
The Indian economy continued to grow strongly in the year 2006-2007, driven by
booming investment and consumption. Over the past four years, the economy has
clocked up an average annual growth of more than 8%, compared to around 6% in
the 1980s and 1990s and 3.5% during the three decades before 1980. The
government's advance GDP estimates for 2006-07 pegs growth at 9.2% driven by a
11.2% growth in services, 10% in industries and 2.7% in agriculture.
While there are concerns with regard to overheating of the economy,
infrastructural bottlenecks, wage inflation and political scenario, the Company
believes that the growth rates would continue to be buoyant in the medium
term.
Given the circumstances, the Company has done well to capitalize on the buoyant
economic growth in the country and this is reflected in the financials during
the year under review.
PRODUCTS AND MARKET
Paints:
Company's paints business in India consists of Decoratives and Industrial
Coatings. Sales of Decorative paints constituted 80% of group sales. It is
estimated that the market for all paints produced by all companies big and
small would have been between Rs. 112 and 115 billion in 2006-2007. This would
be a growth of about 18% over the previous year. The industry is estimated to
have grown by about 16% in volume terms in 2006-2007.
Decorative Paints:
Company has been the leader in the Decorative Paints segment for about four
decades now. Decorative paints account for over 75% of the overall paint market
in India. This segment includes wall finishes for interior and exterior use,
enamels, wood finishes and ancillary products such as primers, putties etc. The
Decorative paints market as a whole is estimated to have grown by about 16% in
volume terms equivalent to about 19% in turnover. Turnover increase outpaced
volume growth due to price increases.
Prices of raw materials increased sharply in the second and third quarter of
2006-2007. The major increases were in Xylene, Phthalic Anhydride, Acrylates
and other petroleum based products and vegetable oils.
Accordingly, the Company had to raise prices four times during the year.
This raised the average selling prices by about 4.25%. Availability of
materials was, on the whole, good throughout the year.
Market conditions were good in most parts of the country. Trade was impacted in
Delhi due to the uncertainty prevailing on account of the Delhi Master Plan and
the sealing drive. It was also impacted in parts of North Eastern India on
account of disturbed conditions. Trade inventories in the Delhi area were at
very low levels. The Diwali season was slightly disappointing in parts of
Northern and Western India. However, robust growth after the Diwali season has
provided buoyant conditions on the whole. VAT has been introduced in Tamil Nadu
from January 1, 2007 and the amendment in Kerala ensures that a uniform VAT
rate now prevails over the entire country except in U.P where VAT is yet to be
implemented.
APL Paint Gross Sales:
Company has been strongly committed to growth and accordingly, continued
its policy of moving purposefully on several fronts. Pricing was kept
competitive. The sharp increase in material cost forced us to raise prices, as
described earlier, in mid June, on 1st September, on 1st October and in mid
January. The Company's strong product range was further augmented by the
addition of Royale Play Metallics and Stucco, Luxury Ultra Gloss Enamel and
other products. The Company will continue to provide consumers with excellent
choice at every price point. The exterior range of products continues to grow
strongly.
Share of Group Sales (Rs. in Millions) %
International 6,572 (17.9%) Chemicals 927 (2.5%) Paints India 29,201
(79.6%)
Company will continue to face competition from lower priced products from large
companies and from a large number of regional players. However, considering the
brand equity the Company enjoys, its dominant market share and the range of
products that it can offer, the Company is confident of meeting these
challenges effectively.
Company continues to aggressively increase ColourWorld installation, which
would be about 8500 across the country. As reported last year, many of these
are now being installed in small towns, enabling consumers there to have a
choice of large range of shades in a wide product range.
Asian Paints Home Solutions (APHS) was extended to Jaipur and Vadodara taking
the total number of centers where this service is offered to twelve.
APHS adds to the strength of Asian Paints brand significantly by
offering novelty finishes.
Manufacturing capacity:
As reported last year, the capacity of the Sriperumbudur plant was raised to
50,000 KL per annum early in 2006-2007. This capacity came in handy as emulsion
paints' sales grew well. The Company is adding a polymer plant at Sriperumbudur
which is expected to be commissioned in the first quarter of 2007-2008.
The plant at Ankleshwar has received environmental and other clearances to
produce up to 1,00,000 KL per annum. Some additional facilities, especially for
storage and handling, need to be installed at Ankleshwar as well as Patancheru
and Kasna plant so as to produce at the rated capacity on consistent basis.
Industrial Coatings:
Automotive Coatings:
Asian PPG Industries Limited.
Asian PPG Industries Limited (APPG), a 50:50 joint venture between the Company
and PPG Industries Securities Inc., formed in 1997, services the Automotive
OEM, Refinish and certain industrial coatings market in India.
APPG is a supplier to almost every two wheeler maker in India and has a
significant position in this market.
APPG has benefited from the buoyant economic growth in the country and the
consequent robust performance of
the automotive industry during the year.
With a sizeable and growing working class that is seeing rapid increases
in disposable income, the country's automobile industry is on a high growth
trajectory. Additionally, auto components manufactures, besides benefiting from
this growth, are exporting to global automobile majors.
As per the estimates, the cumulative growth of the passenger vehicles
segment during April-March 2007 was 20.70%. Passenger cars grew by 22.01%,
utility vehicles by 13.21% and multi-purpose vehicles by 25.20% in F.Y 2006-2007.
The two wheeler market grew by 11.42% during the same period.
These developments have resulted in improved top line performance during the
year under review. Total sales increased to Rs. 3405 million from Rs.2798
million in the previous year - a growth of 21.7% while the consolidated sales
were Rs.3447 million. The joint venture Company also declared interim dividend
of Rs. 1.40 (14%) per equity share on 26th March, 2007.
During the financial year 2006-2007, APPG has invested in 100% equity of Faaber
Paints Private Limited (Faaber) for a consideration of Rs. 40.000 million.
Faaber was a toll processor of APPG located near Chennai. Faaber has been
associated with APPG since the year 2001, when it started toll processing
thinners for APPG. Faaber's production contributes to about 25% of APPG OEM
production volume. The said acquisition has led to strengthening of APPG's
supply link servicing to Hyundai and other automotive customers and resulting
in additional industrial business.
Also, during the financial year 2006-2007, PPG Industries Securities Inc., USA
signed a definitive agreement with ICI (India) Limited as a result of which a
portion of ICI India's auto refinish business comprising of its advanced
refinish range (2K) was acquired by APPG for a consideration of approximately
Rs. 520 million, subject to certain agreed adjustments. It had registered sales
revenue of around Rs. 500 million for the financial year ended 31st March,
2006. The said acquisition would enable APPG in garnering a leadership position
within the premium refinish segment.
During the year, APPG acquired a plot of land admeasuring 10.43 acres on lease
from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to
establish a paint plant in phases at Sriperumbudur, near Chennai. After
obtaining requisite consents, construction work on the plot has commenced. It
is expected that the facility would be commissioned in the course of the
current year and enhance the joint venture's supply capability to automotive OE
customers.
This year, the Indian automobile market will see at least 30 new launches,
spanning from the affordable hatchbacks to the mid-size models to the super
luxury high-end cars and SUVs.
Growth prospects for the automobile industry in the current year is expected to
be similar to that witnessed last year. APPG is in a position to continue to
take advantage of the growth in the market and is optimistic about the longer
term prospects for the Company.
Non-Auto Industrial Coatings:
The non-auto industrial coatings market, catered by the Company through its
Strategic Business Unit and a wholly owned subsidiary, Asian Paints Industrial
Coatings Limited (APICL), is estimated to have grown by 16% in value during the
year 2006-2007. The Company is present in most of the major product segments of
this market, thereby ensuring that growth opportunities are addressed
adequately.
Company continues to maintain its position as the second largest player in the
protective coating segment and has made strides in the medium to high end
product category. The Company has made rapid gains in the general industrial
liquid paints segment and is expected to emerge as a dominant player in times
to come. In floor coatings, a selective approach was adopted in an effort to
reorient the business. In road marking segment, the Company has emerged as a
leader and would expect to maintain this position in the years to come.
The market of non-auto industrial coatings is expected to maintain its growth
momentum. Sustained and significant investment by the public and private sector
enterprises towards capacity creation and plant up-gradation would ensure
strong growth of the protective coating segment. Government spending on
infrastructure would also spur the market. Major investments are underway in
road infrastructure which has a direct bearing on the road marking segment.
Derived demand, both consumer and industrial, would continue to spur the growth
of powder coating and general industrial liquid paints in the years to
come.
Company would continue its strong focus in this segment and target emerging
opportunities by way of a structured business development process.Product
development would be directed towards emerging categories and meeting the value
aspiration of the consumer.
Manufacturing Capacity:
Industrial Liquid Paints Plant at Taloja:
First phase of the greenfield industrial liquid paints facility at Taloja,
Maharashtra was commissioned during the last quarter of the financial year
2006-2007. Production is being ramped up at the facility and it is expected to
reach the installed capacity of 14,000 KL by the month of September, 2007. This
facility will help the Company improve its service levels to industrial
customers and also bring about cost efficiencies associated with manufacturing
the bulk of industrial products at a single location.
Asian Paints Industrial Coatings
Limited:
APICL reported Profit Before Tax of Rs. 9.850 million for the financial year ended
31st March, 2007 as compared to Rs.5.710 million for the financial year ended
31st March, 2006.
During the financial year 2006-2007, the Company has further invested
Rs.1,00,00,000/- (Rupees One Crore only) in the share capital of APICL by
subscribing to 10,00,000 Equity Shares of Rs. 10% each, in order to facilitate
completion of the civil construction work and to enhance the capacity of its
plant at Baddi, Himachal Pradesh.
The powder coating business, catered through APICL, continues to grow above the
market rate. It will continue to persist with its efforts to upgrade the market
through the technology of its collaborator, Protech Chemicals Limited.
Plants for Powder Coatings at Baddi and
Sarigam:
The powder coatings facility at Baddi, Himachal Pradesh which has an installed
capacity of 1,200 MTs, was commissioned in April, 2006 and during the last
quarter of the financial year 2006-2007 the plant produced to its installed
capacity. The civil construction in the first phase has been designed to enable
addition of further lines to take the capacity to 3,000 MTs per annum.
To meet market requirements, it is also planned to enhance the capacity of the
plant at Sarigam. Plans are being drawn up and work on the civil structure is
expected to commence from October, 2007. The enhanced capacity will be
available during the second quarter of the financial year 2008-2009. With these
capacities at Baddi and Sarigam, APICL will be well placed to service the
powder coating requirements.
Chemicals:
The Chemicals business of the Company comprises of Phthalic Anhydride and
Pentaerythritol with plants at Ankleshwar, Gujarat and Cuddalore, Tamil Nadu,
respectively These units were set up as backward integration initiatives in the
late eighties. They lack scale and hence, are not seen as growth drivers for
the Company. These facilities continue to be managed for value.
During the year 2006-2007, the percentage of Company's production of Phthalic
Anhydride and Pentaerythritol consumed in-house was 48% and 53%,
respectively.
Profitability of both businesses has improved significantly over the previous
years. Penta plant could significantly increase the exports to meet the demand
in the international market resulting in higher profits. With the change in
catalyst in April 2006, the Phthalic Plant had a first full year of operations
with the new catalyst, resulting in higher yields and operating
efficiencies.
Due to rising oil prices, margins in the Phthalic business improved
significantly resulting in higher profits inspite of reduction in the import
duty on Phthalic Anhydride from 15% to 12.5% in the Union Budget 2006-07.
Import duty on Phthalic Anhydride has been further reduced from 12.5% to 7.5%
in the Union Budget 2007-2008, without any change in duty on raw material which
will put some pressure on margins going forward. However, overall both the
chemical businesses are expected to perform well in 2007-2008, backed by
planned operation at higher production levels and further improved operating
efficiencies.
Technical Instruments Manufacturers
(India) Limited:
Technical Instruments Manufacturers (India) Limited (TIM), is a 100% subsidiary
of the Company It owns the building which houses the Company's Corporate
Office. It also owns the land which was acquired in the financial year
2005-2006 for carrying on research and development activities for the Company.
It has no income except the rent it receives from the Company.
International Business Units:
The focus during the year under review continued to be on increasing sales and
gaining market share in all overseas markets by increasing the number of dealer
tinting systems, expanding the dealer network, introducing new products,
improving service levels, increasing exports and minimizing price increases.
New product sales constituted approximately 14% of overseas sales and over 600
dealer tinting systems have been installed so far by various
subsidiaries.
Material prices were buoyant and prices of inputs went up significantly.
However, by leveraging economies of scale and the group's global sourcing
capabilities, significant economies have been realized and these have helped to
reduce the impact of material cost escalation. The impact of input cost
increases has also been limited by formulation engineering as well as reduction
in material losses in manufacturing.
The group has always attached a high degree of importance to safety, health and
environment standards. A program has been implemented in all the units to raise
these further.
Microsoft Navision, an ERP software is running successfully at most of the
subsidiaries. Steps have been taken to enhance the usage of this software as a
decision support system.
The group considers its employees to be a key resource and ensuring that
employees are committed and engaged in their roles and drive innovation and
change, is essential for achieving sustainable growth and profitability.
Initiatives such as an improved performance focused management system and a
sales force effectiveness training program to be rolled out across subsidiaries
in the next few months are expected to improve the quality of human capital and
performance.
Technology is another critical input essential to provide customers with
products that satisfy their needs at competitive prices. The group continues to
invest in upgrading its technological capability in Decorative as well as
protective and industrial coatings.
Financial Performance - International
Business:
During the year under review, the volume of paint sold by the business unit
increased by 22% to 94.180 million litres and revenue from paint sales
increased by 21% to Rs. 6240.000 million.
Material cost of paint sold as a percentage to revenue from paint sales has
remained almost flat during the year despite a sharp increase in material
prices. Improved efficiency in sourcing, R&D efforts to optimize
formulations and manufacturing initiatives to reduce material wastage have
helped mitigate the impact of higher input costs. Strict control has also been
exercised on working capital as well capital and overhead expenditure.
For the year under review, the revenue from paint sales of Berger International
Limited (BIL), a subsidiary of the Company listed on the Singapore Stock
Exchange, increased by 8.1% to S$ 127.710 million (equivalent to Rs. 3644.000
million). BIL has made an operating profit of S$ 0.310 million (equivalent to
Rs. 8.850 million) in the year 2006 as compared to loss of S$ 0.260 million
(equivalent to Rs. 7.420 million).
Another subsidiary of the Company SCIB Chemical, S.A.E., Egypt has done well
and has reported a profit of US$ 3.650 million (equivalent to Rs.165.390
million) against a profit of US$ 1 million (equivalent to Rs.44.190 million) of
last year.
During the year 2006-2007, the Company invested Rs. 111.060 million in the
equity capital of its wholly owned subsidiary Asian Paints (International)
Limited for onward investment in Asian Paints (Bangladesh) Limited.
The group's stake in the subsidiary in Myanmar as well its associate company in
Philippines was divested during the year. These two companies were making
losses and the decision to divest was taken after a careful assessment of the
prospects of these companies.
Earnings Before Interest and Tax (EBIT) for the overseas operations of the group
during the year has increased by 457% to Rs. 192.000 million. It may be noted
that during the second half of the year, the EBIT increased by 566% to Rs.
168.000 million.
The profitability of the overseas operations of the group was impacted by the following
items:
(i) Loss of Rs.71.000 million arising from the disposal of the group's stake in
its Associate Company in Philippines;
(ii) Loss of Rs. 7.000 million arising from the disposal of the group's
stake in its subsidiary in Myanmar; and
(iii) Tax expense was lower by Rs.75.000 million mainly due to
write-back of Rs.30.000 million in respect of prior year taxes as compared to a
provision of prior year taxes of Rs. 45.000 million made in 2005.
The group operates in five regions across the world i.e. Caribbean, Middle
East, South Asia, South East Asia and South Pacific as follows:
Operating regions and countries in each region:
Regions Countries
Caribbean Barbados, Jamaica, Trinidad & Tobago
Middle East Egypt, Oman, Bahrain & UAE
South Asia Bangladesh, Nepal & Sri Lanka
South East China, Malaysia, Singapore, Thailand &Asia Hongkong
South Pacific Australia, Fiji, Solomon Islands, Samoa, Tonga &
Vanuatu
Percentage sales contribution of each region to overall international
operations for 2005-06 and 2006-07:
2005-2006 2006-2007
South Pacific 13% 11%SE Asia 15% 13%South Asia 9% 10%Middle East 37%
42%Caribbean 26% 24%
Caribbean Region:
During the year under review, the volume of paint sold in the region increased
by 3.4% to 8.800 million litres. The revenue from paint sales has increased by
12.0% to Rs. 1523.000 million and EBIT has decreased by 58.9% to Rs. 28.000
million.
All the subsidiaries in the region registered sales growth with the highest
growth achieved by the Barbados subsidiary. The revenue from paint sales in
Jamaica, the largest subsidiary in the region, increased by 8.5% to Rs. 893.000
million. However, a slowdown in the construction sector due to acute cement
shortage has resulted in lower sales growth and has impacted the profitability
of the unit. The Jamaican unit became the first paint company in that country
to receive the ISO 14001 certification. The unit in Barbados has done well and
the revenue from paint sales has increased by 14.9% and the profitability has
also improved. The revenue from paint sales of the unit in Trinidad has
increased by 20%. It has however incurred a loss and steps have been taken to
improve the performance of the unit.
Middle East Region:
During the year under review, the volume of paint sold in the region has
increased by 31.2% to 62.600 million liters and the revenue from paint sales
has increased by 31.5% to Rs. 2606.000 million. EBIT has increased by 171.2% to
Rs. 253.000 million.
The Middle East region is the largest operating region for the group outside
India and the performance of the region is noteworthy. The region now
contributes 42% of the sales from international operations.
The subsidiaries in the region have performed well. Sales of the Egyptian,
Bahrain, UAE and Oman subsidiaries grew by 46%, 13%, 35% and 1% respectively.
The Egyptian subsidiary is now the largest unit in the group. The Bahrain
subsidiary has made significant inroads in the institutional business segment and
has established a strong presence in this fast growing segment. The UAE
subsidiary has turned around during the year and has reported a net profit. It
has improved its market share, made significant inroads in the retail segment
and has established itself in the export market of Qatar. The sales of the Oman
subsidiary have grown marginally but profitability has improved.
South Asia Region:
During the year under review, the volume of paint sold in the region increased
by 40% to 9.600 million liters and revenue from paint sales has increased by
31.9% to Rs. 621.000 million. The EBIT for the region has increased to
Rs.10.000 million from a loss of Rs. 19.000 million.
All the subsidiaries in the region have performed well. The Sri Lanka,
Bangladesh and Nepal subsidiaries have registered sales growths of 28%, 62.1%
and 12.6% respectively. The Bangladesh and the Sri Lankan subsidiaries have
recorded improvement in market shares while the performance of the Nepal
subsidiary has been impacted by the adverse political situation prevailing in
that country.
South East Asia Region:
During the year under review, the volume of paint sold in the region
decreased by 12.9% to 9.200 million litres. However, the revenue from paint
sales has increased by 10.0% to Rs. 843.000 million. Loss before interest and
tax has reduced by 17% to Rs. 128.000 million.
The performance of the Singapore subsidiary has been good and the Malaysian
subsidiary has managed to reduce losses substantially. However, the subsidiaries
in Thailand and China have underperformed and incurred losses. Steps have been
taken in Thailand and China to increase sales and reduce losses.
South Pacific Region:
During the year under review, the volume of paint sold in the region increased
by 8.8% to 4.600 million liters and the revenue from paint sales increased by
9.9% to Rs. 725.000 million. EBIT for the region has decreased by 27.8% to Rs.
23.000 million.
Fiji, the largest unit in the region performed well and the revenue from paint
sales increased by 9.3%. All the other units in the region have also performed
satisfactorily during the year. The political situation in Fiji and increases
in input costs have impacted profitability of the region.
In the year ahead, the group will continue to take all feasible steps, as may
be necessary, to increase sales and gain market share in its international
operations.
Company's exports are primarily to its overseas subsidiaries. The main
exported materials are raw materials, resins and tinting colorants. Going
forward, the exports will primarily be tinting colorants as the overseas
subsidiaries are focusing their activities towards increasing the number of
tinting machines. The exports of other raw materials to subsidiaries are
unlikely to increase in future as the raw material purchases are being directed
through group level tie up with suppliers and strategic sourcing by the units
purchases for both of which are directly done by the units from the suppliers.
During 2006-2007, an export of finished goods to a third party in Africa was
done for Rs.3.600 million.
SUBSIDIARIES :
ASIAN PAINTS INDUSTRIAL COATINGS LIMITED
Asian
Paints Industrial Coatings Limited (APICL), a wholly owned subsidiary of the
Company, reported Profit Before Tax of Rs. 5.71 million for the financial year
ended 31st March, 2006 as compared to Rs. 9.97 million for the financial year
ended 31st March, 2005. The reduction is primarily on account of reduction in
gross margins as a result of increase in material costs.
During 2004-2005, APICL had acquired land in Baddi near Himachal Pradesh by
acquiring 100% Equity in Surya Powder Coating Limited (SPCL) for setting up the
second powder coating facility in order to cater to the increase in demand.
During the year 2005-2006, a scheme of merger of SPCL with APICL was put up to
the Hon'ble High Courts of Mumbai and Punjab & Haryana for approval which
have approved the merger.
The powder coating facility set up at Baddi commenced commercial production on
18th April, 2006. With the existing manufacturing facility at Sarigam, Gujarat
and the new facility located at Baddi, Himachal Pradesh, APICL is well placed
to service the Western and the Northern markets which constitute the bulk of
the powder coatings demand.
TECHNICAL INSTRUMENTS MANUFACTURERS
(INDIA) LIMITED :
Technical
Instruments Manufacturers (India) Limited (TIM), a wholly owned subsidiary of
the Company, owns the building which houses the Company's Corporate Office. It
has no income except the rent it receives from the Company.
During the financial year 2005-06, the Company granted a loan of Rs.100 million
to TIM for acquiring a land admeasuring to 24,308 sq.mts at Thane, Maharashtra
for setting up a research and development facility for the Company.
JOINT VENTURE WITH PPG INDUSTRIES, INC.
-ASIAN PPG INDUSTRIES LIMITED :
Asian
PPG Industries Limited (APPG) a 50:50 joint venture between the Company and PPG
Industries, USA, caters to the demand in the automotive and industrial paint
segment. APPG is a supplier to almost every 2-wheeler maker in India and has a
significant position in this market. The joint venture witnessed good year of
performance. There was an increase of 17.7% in Sales and 6.16% in Profits After
Tax for the current financial year as compared to the previous financial year.
The joint venture Company also declared an interim dividend of Re. 1.40 per
equity share on 31st March, 2006.
OVERSEAS SUBSIDIARIES :
During
the year 2005, the sales of the international operations grew by 11% to touch
Rs. 5,500 million (US $124.70 million). For the year under review, the revenue
from paint sales of Berger International Limited (BIL), a subsidiary of the
Company listed on the Singapore Stock Exchange, increased by 6.5% to S$ 118.11
million (equivalent to Rs. 3,140.39 million). Without considering the exchange
rate impact and the divestment in Malta in 2004, paint sales have grown by
9.3%. BIL has incurred a loss of S$ 5.5 million (equivalent to Rs. 146.24
million) for the year under review as compared to profit of S$ 2.2 million
(equivalent to Rs. 58.94 million) for the previous year due to higher material
cost, higher provision for tax for prior years and higher share of loss from
the associate company. The South East Asia region underperformed in terms of operating
profit and is the major contributor to the loss reported by international
operations.
Another subsidiary of the Company, SCIB Chemical, S.A.E., Egypt has done well
and has reported a profit of US $ 0.98 million (equivalent to Rs. 43.22
million) against a profit of US $ 0.25 million (equivalent to Rs. 11.32
million) of last year.
The Company has made a provision of Rs. 336 million towards diminution in value
of its long term investment in Asian Paints (International) Limited, a wholly
owned subsidiary of the Company, based on the management's assessment of the
fair value of its investment. This item has been treated as an extraordinary
item. The Company will continue to evaluate its portfolio at the end of every
year to test for impairment. The management will continue to take all feasible
steps as necessary to enhance the performance and the networth of its overseas
subsidiaries. Asian Paints (International) Limited and its subsidiary, Berger
International Limited, have also provided for impairment of their long term
investments in certain subsidiaries in the current year.
The Management's Discussion and Analysis has further dealt with the
international business.
INDUSTRIAL COATINGS PLANT :
In the
last annual report, it was mentioned that the Company was setting up a
greenfield industrial coatings manufacturing facility at Taloja, Maharashtra,
to meet increase in industrial coatings demand and enhance the servicing
capability of the Company. Construction of the manufacturing facility has been on
schedule and the Company plans to commission the first phase of the plant
towards the end of the third quarter of the current financial year. The first
phase having a capacity of 14,000 KL per annum will be increased to 30,000 KL
in a phased manner.
CHANGE OF NAME :
The Company had proposed to change its name to Asian Paints Limited in
line with its global ambitions.Approval of the shareholders for the said change
of name by way of a Special Resolution in accordance with Section 21 of the
Companies Act, 1956, was obtained through postal ballot under Section 192A of
the Comp- anies Act, 1956 during the financial year 2005-06. The Company has
also received a fresh Certificate of Incorporation from the Registrar of
Companies, Mumbai, dated 12th July, 2005.
Fixed Assets :
*
Freehold Land
*
Leasehold Land
*
Buildings
*
Plant and Machinery
*
Scientific Research :
*
Equipment
*
Buildings
*
Furniture andOffice Equipment
*
Vehicles
*
Leased Assets : Equipment
AS PER WEBSITE:
Asian Paints (formerly known as Asian Paints India Limited [APIL]), promoted in 1942 is India's largest paint company and the third largest paint company in Asia today, with a turnover of Rs 36.7 billion (around USD 851 million). The company has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 21 countries and has 29 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.
Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the only paint company in the world to receive this recognition. One of the country's leading business magazine "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by 'Economic Times' in January 2000, ranked Asian Paints as the Fourth most admired company across industries in India.
The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and Indi's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use.
Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. Asian Paints along with PPG Inc, USA, one of the largest automotive coatings manufacturer in the world has begun a 50:50 joint venture, Asian PPG Industries to service the increasing requirements of the Indian automotive coatings market. Another wholly owned subsidiary, Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market which is one of the fastest growing segments in the industrial coatings market. This wholly owned subsidiary of Asian Paints has entered into a tie-up with Canada-based Protech Chemicals which is one of the top ten powder coatings companies in the world for technological know-how in the area of powder coatings.
International
Operations
Asian Paints operates in 22 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in ten overseas markets. Asian Paints operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. In ten markets, it operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in five markets in the South Pacific it operates through Apco Coatings and in Fiji and Samoa it also operates through Taubmans.
The countries that Asian Paints has presence are as follows:
South Asia : Bangladesh, Nepal, and Sri Lanka
South East Asia :China, Malaysia, Singapore and Thailand
Caribbean Islands : Barbados, Jamaica, Trinidad and Tobago
Middle East : Bahrain, Egypt, Oman and United Arab Emirates
South Pacific : Australia, Fiji, Solomon Islands, Samoa Islands, Tonga and Vanuatu
Over the course of 25 years Asian Paints became a corporate force and India's
leading paints company. Driven by its strong consumer-focus and innovative
spirit, the company has been the market leader in paints since 1968. Today it
is double the size of any other paint company in India. Asian Paints
manufactures a wide range of paints for Decorative and Industrial use. The
company has presence in both Decorative and Industrial Coating segment of the
Paint business. In Industrial coating segment which comprises Automotive
Coating, powder coating and protective coating, APIL serves/operates directly
in the protective coating and has presence in other two sub - segments i.e
Automotive Coating and Powder coating through Asian PPG Inds(a JV Co. with PPG
of US) and Asian Paints Industrial Coatings Limited(a 100% subsidiary of APIL).
APIL's product range includes Wall paints, Metal paints, Wood Finishes, Primers
and others. Vertical integration has seen the company diversify into specialty
products such as Pentaerythritol and Phthalic Anhydride. These are used in
paints, plasticizers, inks and dyes.
Apart from offering the customers a wide range of decorative and industrial
paints, the company even custom-creates products to meet specific needs. APIL's
brands, Royal in the premium segment, Apcolite in the middle segment, Gattu,
Tractor, Utsav, 3-Mango, etc, in the lower segment, are all well- established
brands in their respective segments. Its one-stop colour shop has software to
choose and select 1,511 combinations of various colours.
The company boasts state-of-the-art manufacturing plants for paints at Bhandup
(Maharashtra), Ankleshwar (Gujarat), Patancheru (Andhra Pradesh), Kasna(Uttar
Pradesh), Sriperumbudur(Tamil Nadu) and all these paint plants are ISO 14001
certified. The company has manufacturing plant for Phthalic Anhydride and
Pentaerythritol at Ankleshwar and Cuddalore respectively.
Forbes Global magazine USA ranked Asian Paints among the 200 Best Small
Companies in the World for 2002 and 2003 and presented the 'Best under a
Billion' award, to the company. Asian Paints is the only paint company in the
world to receive this recognition. One of the country's leading business
magazine 'Business Today' in Feb 2001 ranked Asian Paints as the Ninth Best
Employer in India. A survey carried out by 'Economic Times' in January 2000,
ranked Asian Paints as the Fourth most admired company across industries in
India.
To keep abreast of world technology and to protect its competitive edge, Asian
Paints has a 50:50 joint venture with Pittsburgh Paints and Glass Industries
(PPG) of USA, the world leader in automotive coatings, to meet the increasing
demand of the Indian automotive industry. Another wholly owned subsidiary,
Asian Paints Industrial Coatings Limited has been set up to cater to the powder
coatings market which is one of the fastest growing segments in the industrial
coatings market. This wholly owned subsidiary of Asian Paints has entered into
a tie-up with Canada-based Protech Chemicals which is one of the top ten powder
coatings companies in the world for technological know-how for powder coatings
and service customers with a wider coatings in this segment.
In the compnies first-ever acquisition overseas, Asian Paints Limited (APL)
acquired a 76 per cent equity stake in Sri Lanka-based Delmege Forsyth & Co
(Paints) Limited
On 4th September 2000, the company allotted bonus shares to its shareholders in
the ratio of 3 equity shares for every 5 equity shares held. During 2000-2001,
the company was in the process of getting permission from various pollution
control boards for increasing the capacity of overall paints facilities from
168900 tonnes per annum to 228900 tonnes per annum.
PRESS RELESE :
Asian Paints announces second interim dividend of Rs. 6.50
per share (65%) :
Mumbai,
March 13, 2007: The Board of Directors of Asian Paints Limited has today
recommended the payment of the second interim dividend of Rs. 6.50 per equity
share of Rs 10/- each (65%) for the financial year ending March 31, 2007.
The
Company, earlier, distributed an interim dividend Rs. 5.50 per share in
November 2006. Thus the Total dividend announced so far for FY 2006-2007 is Rs.
12/- per equity share.
About Asian Paints:
Asian
Paints is India's largest paint company with a group turnover of INR 30.2
billion (USD 680 million). Asian Paints along with its subsidiaries has
operations in 21 countries across the world and 29 manufacturing facilities,
servicing consumers in 65 countries through Berger International, SCIB
Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. The company has an
enviable reputation in the corporate world for professionalism, fast track
growth and building shareholder equity.
For further Information, please contact:
Jason/ Rajdeep
Asian Paints Limited
Phone: +91-22-39818547
Email: proffice@asianpaints.com
ASIAN PAINTS
CONSOLIDATED NET PROFIT INCREASES BY 14.0% FOR THE QUARTER
• Consolidated Net Sales up 16.6 % at Rs. 9,356 million
• Indian Paint Business grew by 13.3 % to Rs. 7250 million
for the quarter
• Consolidated Net Profit for the nine months increased by
29.5 % to Rs. 2144 million
• All business units register good growth for the quarter
Mumbai, January 29, 2007: Asian
Paints today announced their financial results for the third quarter ended Dec
31, 2006.
Asian
Paints Consolidated Results : Q3-FY’2007 :
For the quarter ended Dec 31, 2006, on consolidation of
accounts of the subsidiaries and joint venture of Asian Paints – Net Profit of
the Group has increased by 14.0 % to Rs. 713.9 million from Rs. 626.3 million
as compared to the previous corresponding quarter. Sales & Operating Income
has risen by 16.6% to Rs. 9356.4 million from Rs. 8023.3 million. Profit before
depreciation interest and tax (PBDIT) for the group has increased by 11.7 % to
Rs. 1310.8 million from Rs. 1173.6 million. Profit before Tax after goodwill
has increased by 13.4 % to Rs. 1107.5 million from Rs. 976.4 million.
Asian
Paints Consolidated Results, 9M- FY’2007:
For the nine months ended 31 December 2006, Asian Paints
group – Sales & operating Income has increased by 20.2% to Rs. 27110
million from Rs. 22556 million. Profit before depreciation interest and tax
(PBDIT) for the group has increased by 20.3 % to Rs. 3847.500 million from Rs.
3198.800 million. Profit before Tax after goodwill has increased by 24.2 % to
Rs. 3258.700 million from Rs.2623.200 million. Net profit after minority
interest has increased by 29.5 % to Rs. 2144.200 million from Rs. 1655.700
million.
Asian
Paints Standalone Results : 9M - FY’07 :
For the nine months ended December 31, 2006 Net Profit on a standalone basis increased by 20.7 % to Rs. 2008.900 million from Rs. 1664.900 million. Net Sales increased by 19.4% to Rs.20942.700 million from Rs. 17546.700 million. PBDIT increased by 17.2% to Rs. 3424.600 million from Rs. 2921.500 million. Profit before tax was Rs.3034.400 million compared to Rs. 2554.500 million for the corresponding nine-month period, an increase of 18.8 %.
About
Asian Paints :
Asian Paints is India's largest
paint company and ranked with a turnover of INR 30.2 billion (USD 680 million).
Asian Paints along with its
subsidiaries has operations in 21 countries across the world and 29
manufacturing
facilities, servicing consumers
in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints,
Apco Coatings and Taubmans. The
company has an enviable reputation in the corporate world for professiona-
lism, fast track growth and
building shareholder equity.
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 :
Their
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.
Their 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. 42.84 |
|
UK Pound |
1 |
Rs. 84.78 |
|
Euro |
1 |
Rs. 67.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/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 |
|