MIRA INFORM REPORT
|
Report Date : |
07.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MOSER BAER INDIA
LIMITED |
|
|
|
|
Registered Office : |
43 B, Okhla
Industrial Estate, New Delhi – 110 020 |
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|
Country : |
India |
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|
Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
21.03.1983 |
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Com. Reg. No.: |
55 - 15418 |
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|
CIN No.: [Company
Identification No.] |
L51909DL1983PLC015418 |
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|
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELM08254B |
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|
PAN No.: [Permanent
Account No.] |
AAACM0322J |
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|
Legal Form : |
Public Limited
Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of CDR,
CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video Tape. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 98477470 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established
company having fine track records. However, the company profit margin is
under pressure. Payments are usually correct and as per commitments. Trade
relations are fair. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office/Corporate Office : |
43 B, Okhla
Industrial Estate, New Delhi – 110 020, India |
|
Tel No.: |
91-11-41635201/ 41635207/ 26911570/ 26911574/ 51635201/02/03/04/05 |
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Fax No.: |
91-11-41635211/ 26911860 / 51635211 |
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E-Mail : |
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Website : |
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Administrative Office : |
63 Ring Road, Lajpat Nagar – III, New Delhi – 110024, India |
|
Tel. No.: |
91-11-26832762 |
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Fax No.: |
91-11-26849544 |
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|
|
|
Plant Location: |
Tel. No. : 91-120-2567023-25 / 4386347 Fax. No. : 91-120-2562117 / 4386850
Tel. No. : 91-120-2460800 / 4307000
Tel. No. : 91-120-2567023-25 Fax No. : 91-120-2562117
Tel. No. : 91-120-2521662 ·
66, Udyog Vihar Industrial Area, Greater Noida – 201 301, Uttar
Pradesh, India
Tel No: 95-120-4386000 |
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|
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Branch Office: |
Mumbai Office: Entertainment
Division, 23, Shah
Industrial Estate, 2nd Floor, Off Veera Desai Road, Andheri (W),
Mumbai 400053. Tel No:
91-22-26734696 / 97 / 98 / 99. Domestic
Marketing CE Bangalore Office: Mobile No:
91-98861-93939 Kolkata Office: 16,British India Street, Kolkata-700001, India Tel: 91 -33- 22107829 Chennai
Office: No.81, Valluvarkottam High Road, Nungambakkam, Chennai
600034. Tel No: 91-44-42664358/59 |
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|
|
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International
Offices : |
Netherlands: Mr. Heidi Kuhn Burgemeester Kolfschotenlaan 67 NL-2585 DZ
Den Haag KVK Haaflanden 24273191. Tel: 31-70-3920176 Mobile: 31-646-116058 Dir: 31-70-363883 Fax: 31-70-3923833 E-Mail: hkj@moserbaer.net USA: Mr. Rajan Krishnan 3317, NW Teal Place , Corvallis, Oregon
97330 Tel: 1-541-2319777 Japan: Taiwan: US West Coast: Mr. Brian Josef
Bartholomeusz 3960 El Carrito
Road, Palo Alto- CA 94306,USA Tel:
1-650-814-0958 Fax:
1-650-858-8055 E-mail: brian@moserbaer.net |
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|
|
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AffiliateOffices
(International) |
Europe: MBI International FZ LLC (Branch) Burgemeester Kolfschotenlaan 67, NL-2585 DZ Den Haag, The Netherlands. Dir: 31-70-3638833 Fax No: 31-70-3923833 Kck Haaglanden: 2434.1207.0000 BTW: NL 811391851BO1 US East Coast: Dubai : Mr. Sanat
Kumar Moser Baer
International FZ-LLC, Office
119, Building 14, Dubai Internet City, Dubai, U.A.E Tel: 9714 390
1581 Email: skumar@mbi-intl.com |
DIRECTORS
|
Name : |
Mr. Deepak Puri |
|
Designation : |
Chairman and Managing Director |
|
Address : |
A-187, New Friends Colony, New Delhi – 110065, India |
|
Date of
Birth/Age : |
65 Years |
|
Qualification
: |
B.Sc. Hons (Maths), B.Sc (Mechanical Engineering) |
|
Experience : |
23 Years |
|
|
|
|
Name : |
Mr. Ratul Pari |
|
Designation : |
Director |
|
Address : |
A-187, New Friends Colony, New Delhi – 110065, India |
|
Date of
Birth/Age : |
34 Years |
|
Qualification
: |
Bachelor’s degree in Maths and Computer Science. |
|
Experience : |
5 Years |
|
|
|
|
Name : |
Mr. Harnam D.
Wahi |
|
Designation : |
Director |
|
Address : |
M – 95, Greater Kailash, Part – 1, New Delhi - 110048, India |
|
Date of
Birth/Age : |
80 Years |
|
Qualification
: |
Bachelor of Arts, |
|
Experience : |
14 Years |
|
|
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|
Name : |
Mrs. Nita Puri |
|
Designation : |
Director |
|
Address : |
A-187, New Friends Colony, New Delhi – 110065 |
|
Date of
Birth/Age : |
59 Years |
|
Qualification
: |
B.Ed. |
|
Experience : |
22 Years |
|
|
|
|
Name : |
Mr. Prakash
Karnik |
|
Designation : |
Director |
|
Address : |
902, Glen Eagle, G. D. Ambedkar Marg, Mumbai – 400012, Maharashtra
,India |
|
Date of
Birth/Age : |
54 years |
|
Qualification
: |
B.Tech from Indian Institute of Technology, Diploma in Systems Management
from Mumbai University and Diploma in Financial Management from Mumbai
University |
|
Experience : |
8 years |
|
|
|
|
Name : |
Mr. Rajesh Khanna |
|
Designation : |
Director |
|
Address : |
11, Nathan Road, #02-01, Regency Park, Singapore-248732 |
|
Date of
Birth/Age : |
41 Years |
|
Qualification
: |
B.Com from Mumbai University. Chartered Accountant and MBA from IIM, Ahmedabad., Gujarat, India |
|
Experience : |
6 Years |
|
|
|
|
Name : |
Mr. Bernard
Gallus |
|
Designation : |
Director |
|
Address : |
C/Del Rio Escalona 9 E-03739 Javea/Alicante Spain |
|
Date of
Birth/Age : |
74 Years |
|
Qualification
: |
Course Suisse de Director
d’ Enterprises |
|
Experience : |
19 Years |
|
|
|
|
Name : |
Mr. Arun Bharat
Ram |
|
Designation : |
Director |
|
Address : |
1, Silver Oak Avenue, Westend Green Farms, Phae-I, Rajokri, New
Delhi-110038, India |
|
Date of
Birth/Age : |
66 Years |
|
Qualification
: |
Graduate in Industrial Engineering from University of Michigan,
U.S.A. |
|
Experience : |
4 Years |
|
|
|
|
Name : |
Mr. John Levack |
|
Designation : |
Director |
|
Address : |
1110, Jardine House, 1, Connaught Place, Central, Hong Kong |
|
Date of
Birth/Age : |
48 Years |
|
Qualification
: |
Degree in Business Administration from Bath University in U.K. |
|
Experience : |
3 Years |
|
|
|
|
Name : |
Ms. Minni Katariya |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. Vinayshil Gautam |
|
Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
Individuals/Hindu Undivided Family |
27217641 |
16.17 |
|
Sub Total (A)
(1) |
27217641 |
16.17 |
|
|
|
|
|
Foreign |
|
|
|
Individual (Non-Resident Individuals/Foreign Individuals) |
202500 |
0.12 |
|
Sub Total (A)
(2) |
202500 |
0.12 |
|
Total
shareholding of Promoter and Promoter Group (A) = (A) (1) +
(A) (2) |
27420141 |
16.29 |
|
|
|
|
|
(B) Public shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds/UTI |
3766838 |
2.24 |
|
Financial Institutions/Banks |
15977 |
0.01 |
|
Insurance Companies |
221836 |
0.13 |
|
Foreign Institutional Investors |
44496143 |
26.44 |
|
Any other |
15076791 |
8.96 |
|
Sub Total (B)
(1) |
63577585 |
37.77 |
|
|
|
|
|
(B) 2. Non-institutions |
|
|
|
Bodies Corporate |
4791267 |
2.85 |
|
Individuals |
9897430 |
5.88 |
|
ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 Millions |
1385621 |
0.82 |
|
Any Other |
414617 |
0.25 |
|
(i) Foreign Nationals |
3 |
0.00 |
|
(ii) Trusts and Foundations |
2395 |
0.00 |
|
(iv) Foreign Corporate Bodies |
60817045 |
36.13 |
|
Sub
Total (B) (2) |
77308378 |
45.93 |
|
(B)
Total Public shareholding (B)
= (B) (1) + (B) (2) |
140885963 |
83.71 |
|
Total
(A) + (B) |
168306104 |
100.00 |
Shareholders holding 1% and more shares
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Woodgreen Investments Limited |
22050000 |
13.11 |
|
Mr. Ratul Puri |
16143753 |
9.60 |
|
International Finance Corporation |
15076791 |
8.96 |
|
Electra Partners Mauritius Limited |
9960345 |
5.92 |
|
Ealing Investments Limited |
9600000 |
5.71 |
|
Bloom Investments Limited |
9600000 |
5.71 |
|
Randali Investments Limited |
9600000 |
5.71 |
|
HSBC Global Investment Fund A/c HSBC Global Funds Mauritius Limited |
7490472 |
4.45 |
|
Mr. Deepak Puri |
5762973 |
3.43 |
|
EIM International Limited |
5634855 |
3.35 |
|
T Rowe Price International Inc. A/c T Rowe Price New Asia Fund |
5164384 |
3.07 |
|
Winterfall Limited |
4339572 |
2.58 |
|
Ms. Nita Puri |
3434631 |
2.04 |
|
The Master Trust Bank of Japan Limited |
2856974 |
1.70 |
|
LB India Holdings Cayman II Limited
(Mauritius) India Limited |
2218231 |
1.32 |
|
Morgan Stanley Mauritius Company Limited |
2046477 |
1.22 |
|
Macquarie Bank Limited |
2058630 |
1.22 |
|
Reliance Capital Trustee Company Limited A/c
Reliance Growth |
1942654 |
1.15 |
|
Talma Chemical Industries Private Limited |
1830561 |
1.09 |
|
T Rowe Price International Inc A/c T Rowe Price International Discovery Fund |
1741675 |
1.04 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
CDR, CDRW, DVDRW, Micro Floppy Diskettes, Audio-Video Tape. |
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Products : |
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Brand Names : |
"Xydan" |
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Exports : |
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Countries : |
v
U.S.A. v
UAE v
Germany v
Luxemburg v
Australia v
Poland v
Italy v
Korea v
Russia v
Singapore v
Spain v
The
Netherlands v
Brazil v
Finland v Angola |
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Imports : |
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Countries : |
v
Singapore v
Japan v
China v Taiwan. |
PRODUCTION STATUS
As on 31.03.2008
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Storage Media |
(Nos.) |
5150752802 |
3694599272 |
GENERAL
INFORMATION
|
No. of Employees : |
5013 |
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Bankers : |
v
The Bank of Nova Scotia |
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Facilities : |
Secured Loans
Unsecured Loans
|
|
|
|
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Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
K. C. Khanna and
Company Chartered
Accountants |
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|
|
|
Membership: |
Confederation of
Indian Industry |
|
|
|
|
Associates : |
Global Data Media FZ-LLC, P. O. Box No. 500289, Dubai, United Arab
Emirates Line of Business :
Storage Media |
|
|
|
|
Subsidiaries : |
v European Optic Media Technology GMBH v Omega Optical Media Technologies v Moser Baer SEZ Developer Limited v Solar Research Limited v Moser Baer Energy Limited v Moser Baer Entertainment Limited v (Formerly known as Moser Baer Media Limited) v Moser Baer Infrastructure and Developers Limited v Moser Baer Investments Limited v Photovoltaic Holdings Plc v Moser Baer Solar Plc v PV Technologies India Limited v Moser Baer Photovoltaic Limited v Perafly Limited v Dalecrest Limited v Nicofly Limited v Perasoft Limited v Crownglobe Limited v Peraround Limited v Advoferm Limited v Cubic Technologies BV v OM and T B.V. v Global Data Media FZ LLC v Moser Baer Infrastructure Limited v Solar Value Proizvodjna Limited v
Moser Baer Trust |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
207,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2075.000 millions |
|
750,000 |
Preference Shares |
Rs. 100/- each |
Rs. 75.000 millions |
|
|
Total |
|
Rs. 2150.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
168,231,104 |
Equity Shares |
Rs. 10/- each |
Rs. 1682.311 millions |
Note:
56,077,035 Equity shares of Rs. 10/- each issued
as fully paid Bonus shares during the year 2007-08 by capitalization of General
Reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
1682.311 |
1116.012 |
1115.100 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
18013.183 |
19852.166 |
18933.400 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
19695.494 |
20968.178 |
20048.500 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16124.959 |
17250.156 |
16465.400 |
|
|
2] Unsecured
Loans |
10048.336 |
0.000 |
89.300 |
|
TOTAL BORROWING
|
26173.295 |
17250.156 |
16554.700 |
|
|
DEFERRED TAX
LIABILITIES |
91.604 |
88.704 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
45960.393 |
38307.038 |
36603.200 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
26655.909 |
24816.641 |
24319.300 |
|
Capital work-in-progress
|
1720.931 |
2867.810 |
1279.500 |
|
|
|
|
|
|
|
INVESTMENT
|
3708.932 |
2418.150 |
879.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
6179.827 |
5392.850 |
4469.900 |
|
|
Sundry Debtors
|
3150.595 |
3288.430 |
3798.900 |
|
|
Cash & Bank Balances
|
6387.455 |
2438.886 |
2837.200 |
|
|
Other Current assets
|
134.220 |
174.255 |
0.000 |
|
|
Loans & Advances
|
2419.178 |
1186.190 |
1661.600 |
Total Current Assets
|
18271.275 |
12480.611 |
12767.600 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
3673.446 |
3876.477 |
2370.700 |
|
|
Provisions
|
723.208 |
399.697 |
272.000 |
Total Current Liabilities
|
4396.654
|
4276.174
|
2642.700 |
|
Net Current Assets
|
13874.621 |
8204.437 |
10124.900 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
45960.393 |
38307.038 |
36603.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
18997.888 |
19824.735 |
16641.202 |
|
|
Other Income |
1219.042 |
787.705 |
1157.305 |
|
|
Total Income |
20216.930 |
20612.440 |
17798.507 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(769.641) |
1198.506 |
39.600 |
|
|
Provision for Taxation |
(1558.731) |
100.641 |
(7.100) |
|
|
Profit/(Loss) After Tax |
(789.090) |
1097.865 |
46.700 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
12965.334 |
15892.363 |
14045.740 |
|
|
Other Earnings |
178.653 |
18.249 |
48.997 |
|
Total Earnings |
13143.987 |
15910.612 |
14094.737 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchase of Finished Goods |
557.849 |
73.105 |
11.465 |
|
|
Raw Materials and Components Consumed |
7164.286 |
7937.548 |
7862.238 |
|
|
Packing Materials Consumed |
2000.195 |
1777.497 |
1903.881 |
|
|
Stores, Spares and Tools Consumed |
988.103 |
960.466 |
632.020 |
|
|
Personnel Expenses |
1893.094 |
1392.032 |
1035.764 |
|
|
(Increase)/ decrease in Finished Goods |
(1025.059) |
(626.317) |
0.000 |
|
|
Administration and other Expenses |
3280.885 |
3076.046 |
2210.444 |
|
|
Interest and Finance Charges |
1793.571 |
1244.855 |
935.497 |
|
|
Depreciation / Amortization |
4315.866 |
3578.703 |
3167.598 |
|
|
Other Expenditure |
17.781 |
0.000 |
0.000 |
|
Total Expenditure |
20986.571 |
19413.934 |
17758.907 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
4789.300 |
6359.500 |
|
Other Income |
|
179.500 |
70.300 |
|
Total Income |
|
4968.800 |
6429.800 |
|
Total Expenditure |
|
4434.300 |
4996.000 |
|
Operating Profit |
|
534.500 |
1433.800 |
|
Interest |
|
464.600 |
672.700 |
|
Gross Profit |
|
69.900 |
761.100 |
|
Depreciation |
|
1153.600 |
1200.000 |
|
Tax |
|
(43.900) |
(20.500) |
|
Reported PAT |
|
(1039.800) |
(418.400) |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
1.07 |
0.82 |
0.82 |
|
Long Term Debt Equity Ratio |
1.07 |
0.82 |
0.81 |
|
Current Ratio |
2.84 |
2.83 |
3.25 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
0.47 |
0.56 |
0.52 |
|
Inventory |
3.39 |
4.20 |
4.38 |
|
Debtors |
6.10 |
5.85 |
4.87 |
|
Interest Cover Ratio |
0.45 |
1.96 |
1.04 |
|
Operating Profit Margin (%) |
26.10 |
29.03 |
23.92 |
|
Profit Before Interest and Tax Margin (%) |
4.14 |
11.78 |
5.63 |
|
Cash Profit Margin (%) |
16.88 |
22.54 |
18.56 |
|
Adjusted Net Profit Margin (%) |
(5.08) |
5.29 |
0.27 |
|
Return on Capital Employed (%) |
1.93 |
6.53 |
2.68 |
|
Return on Net Worth (%) |
(4.91) |
5.35 |
0.23 |
LOCAL AGENCY
FURTHER INFORMATION
History:
The company was
incorporated on 21.03.1983 at New Delhi in India having Company Registration
Number 15418.
The company now
shifted from 63, Ring Road, Lajpat Nagar - III, New Delhi - 110 024, India to
43A, Okhla Industrial Estate, New Delhi – 110 020, India.
Incorporated in
March 1983 as a private limited company and was converted into a public limited
liability company in September, 1996. It was promoted by Mr. Deepak Puri and
Mrs. Nita Puri. The company manufactures storage media for data applications
and audio/video applications. Today the company is India’s largest and among
the world three largest optical storage media manufactures.
The company has
established itself as a leading exporter of 5.25 floppy diskettes, in technical
collaboration with XYDEX Corporation, United States of America. It has also
entered into an agreement with Mag Media, IMTC and RES, all of Germany, on a
world-wide basis for the supply of its entire production of 3.5” MFD of 1 – MB
and 2 – MB capacity.
The company also
entered into R and D tie up with 4M Technologies. The R and D will focus on
developing newer, faster and more reliable CD-ROM products, improving existing
CD-ROM process to reduce manufacturing cost and developing new high density
storage formats for both digital versatile CD (DVD-R) and higher density DVD
formats.
The company
acquired Capco S.A. of Luxembourg for about Rs. 230.000 millions. In December
2000, it has set up a subsidiary – Glyphics Media, which spearheaded the
company’s penetration into key North American markets. The company has invested
around $100 millions for the completion of its optical media project.
During 2001-02
CAPCO S.A. of Luxembourg ceased to be the subsidiary of the company. The
installed capacity of storage media (both audio and video) was increased to
891320000 nos.
During the year
1998-99, there was an incidence of fire at one of the company's
facilities. Due to the presence of an
emergency and disaster management plan and adequate fire fighting and other
resources this fire was brought under control.
Due to efforts put in by the company's employees and continuous
implementation of the recovery plant, the facility restarted operations with a
minimum loss of production.
During the year
2001-02 Capco SA of Luxembourg ceased to be subsidiary of the company. The
installed capacity of storage media (both audio and video) was increased to
891320000 nos. The cumulative investment made by the company was Rs.18144.08
millions and in 2002-03 the company invested Rs.10617.94 millions which was
utilized to increase the manufacturing capacity from 891.00 millions to 1186
millions units per annum. It had also established facilities and infrastructure
for additional capacity expansion which the company is going to undertake in
the future and for de-bottlenecking of existing manufacturing facilities.
The company entered
a global strategic tie-up with Imitation Corporation, USA which results in
Imitation Sourcing a substantial part of their requirements of optical media
from the company. The deal worth in excess of USD 100 million per annum. Both
the companies have also agreed to float Joint Venture company of which 51% will
be owned by Imitation Corporation.
The company has
joined hands with the Indian institute of Technology (IIT) , Delhi to work
jointly in the frontier areas of thin film sputtering technology suitable for
optical data storage devices.
The company has
expanded the installed capacity of Storage Media during the FY 2004-05 by 548.000
millions and this expansion the total capacity of the product has risen to
3612.500 millions (Nos.). Further the company has began its production and
shipment of Light Scribe – enabled media in collaboration with Hewlett –
Packard. During the year the company has established its subsidiary in Germany
with the objective of addressing high end niche markets.
The company will
invest US$ 105 million to increase its disk production capacity form 2.4
billion to to over 2.8 billion deices annually, during 2005-06.
Director’s Profile
Mr. Deepak Puri, Director
He provides strategic direction to the Company. He is the driving force in creating an environment of integrity by ensuring fair business practices and profound respect for Intellectual Property Rights. It is his ceaseless quest for human capital development that has helped steer the Company along a continuous growth path. A leading spokesman for the Indian industry, Deepak Puri has never shied from speaking his mind and sharing his opinions. He is Chairman of CII’s National Committee on Electronics, IT Hardware and Peripherals and also chairs FICCI’s
Electronics Hardware Committee. He holds a Master’s Degree in Mechanical Engineering from Imperial College, London, and is an alumnus of St Stephens College and Modern School, New Delhi.
Arun Bharat Ram,
Director
He is the Chairman of SRF Limited A graduate in Industrial
Engineering from the University of Michigan, USA, he began his career in 1967
with the Delhi Cloth St General Mills Company Limited (now DCM Limited). He
went on to set up SRF Limited in 1971. In his businesses, he has strongly
supported corporate governance initiatives and professionalism. He has been on
various govt.-industry committees and is a former President of both the CII and
the Association of Synthetic Fiber Industry.
Bernard Gallus,
Director
He has been working with Warburg Pincus for the last seven
years. He is an MBA from the IIM, Ahmedabad and a CA. He earlier worked with
leading finance and consulting firms such as Citibank NA. He is now the
Managing Director of Warburg Pincus India Private Ltd and also serves on the
Boards of Max New York Life Insurance Co Limited Moser Baer Photo Voltaic
Limited Moser Baer Solar Plc, Max India Limited, Max Healthcare Institute
Limited and Max New York Life Insurance Company limited He brings with him over
four decades of experience in the international technology and finance markets.
He was earlier Managing Director and member of the board of J Bosshard SA,
Lausanne, later taken over by the manufacturing Company W Moser Baer AG,
Switzerland.
Prakash Karnik, Director
He was a
Director at Electra Partners Asia Private Limited one of Asia’s leading private
equity firms. An engineer from the IIT(Chennai) and a management graduate, he
has over 26 years of experience in the engineering and finance sectors. He has
worked in senior positions in both government and private sector organizations,
including Jardine Fleming India Securities Limited, UTI and the Economic
Development Corp. of Goa Limited.
Dr. Vinayshil
Gautam, Director
He was the first Director of India Institute of Management (Khozikode) and the first Head Management Department at IIT, Delhi. He is currently the Dalmia Chair Professor of Management at IIT, Delhi and coordinator of the Institute’s Dalmia Research Programme. He was a member of various significant committees of Govt. of India including the Committee appointed to look into the efficiencies of promotional processes of 10 senior Positions in Government; Quinquennial review team of CMFRI, NAARM; Committee appointed to review the working of NSTEDB, etc. He is also on the Board of J.K Industries Limited, Shivam Auto Tech Limited and Steel Authority of India.
Mr. Rajesh Khanna
(Nominee Warburg Pincus Singapore LLC)
He has been working with Warburg Pincus for the last seven years. He is an MBA from the IIM, Ahmedabad and a CA. He earlier worked with leading finance and consulting firms such as Citibank NA. He is now the Managing Director of Warburg Pincus India Private Limited and also serves on the Boards of Max New York Life Insurance CompanyLimited Moser Baer Photo Voltaic Limited, Moser Baer Solar Plc, Max India Limited, Max Healthcare Institute Limited and Max New York Life Insurance Company Limited.
Mr. Virendra Nath
Koura, Director
He received his formal legal education at Lincoln’s Inn, London and currently is a senior partner of Koura and company a leading firm of legal consultants in India. He is also on the Board of Bharti Infotel Limited, National Cereals Products Limited, Controls and Switchgear Contractors Limited and HCL Infosystems Limited.
Ms. Nita Puri,
Wholetime Director
She is a co-promoter of Subject and a Whole-Time Director of the Company. A graduate from Calcutta University, she has over three decades of experience in managing businesses. As Director (Administration and HR), she has been closely involved with the Company’s growth since its inception.
Mr. John Levack,
Director
He has over 20 years of private equity experience with Electra and 3i Pic in Asia and Europe, four years of which have been in India. Levack has a degree in business administration from Bath University in the UK. He is a Director at Zensar Technologies Limited, Electra Partners Asia Limited, Electra Partners Mauritius Limited, EP Asia Limited, and RT Packaging Limited.
Mr. Ratul Puri,
Executive Director
He joined Moser Baer in 1994 and has been Executive Director since 2001. Prior to assuming this role, he was General Manager (Business Development). In this capacity, he was instrumental in setting up plants for manufacturing Compact Disc- Recordable, the first to come up in India. He has also played a pivotal role in reinforcing Moser Baer’s focus on maximizing shareholder value. He has a degree in Computer Engineering from Carnegie Mellon University, USA and did his schooling from St Columbus, New Delhi.
During the year, the Company maintained its leadership position in the
global optical media industry. The Company further strengthened its unique
technology and IP position in the Blu-ray format through its own pioneering
work, coupled with strong in-house R and D in development of high definition
formats, giving the Company a strong position as a technology developer.
Overview
Through these 25 years it has been Moser Baer’s endeavour to achieve
technological leadership and operate in all its business at on internationally
competitive global scale. This has been possible through a carefully-planned
and sustainable business model: low costs, high margins, high profits,
reinvestment and capacity growth.
Optical
Storage Media
Driven by a combination of factors, the global blank optical media
Industry went through a difficult period during the financial year. End
consumer demand for CDR continued to remain flat with early signs of decline in
developed markets. DVDR maintaines a positive growth trend during the year with
robust demand from developed as well as emerging markets. Flash memory devices
had a marginal impact on the re-writable market in PC Segment (for data
interchange application). The industry witnessed a short term overcapacity
situation with excess inventory in the supply chain due to patent licensing
issues with some of the other players. This resulted in a downward pressure on
prices. Strategic Marketing and Decisions (SMD) estimates global demand for
blank optical media products to be over 22 billion units in 2008, representing
a strong demand growth over 2007.
A notable development during the year was the emergence of Blu-ray disc
(BDR) as the future High Definition media format, with Toshiba announcing the
discontinuation of HD DVD investments in mid-February, 2008. This settlement
will accelerate the adoption of the format by different stakeholders, including
retail, studios, components, hardware, drive makers, software vendors, line
integrators and media manufacturers. The industry expects exponential growth
for the BDR format in the coming years. Moser Baer is the first non-Japanese
supplier of BDR and this development will give the Company a significant
advantage in the anticipated growth of the BDR market.
Moser
Baer Developments FY 2007-08
(Optical
Storage Media)
During the year, the Company evolved into a technology driven, multiple
business transnational by adding high growth technology driven businesses to
its portfolio. These businesses have the potential to significantly increase
combined revenues and overall returns on invested capital. FY 2007-08 was
a difficult year for the global blank optical media industry, which has been
significantly challenged by the overall demand-supply situation. Alternative
technologies for data storage also impacted growth in the optical media sector.
The steep appreciation in the rupee also resulted in margin erosion. At the
same time, energy costs faced a huge escalation driven by steep increase in
crude prices, in turn impacting furnace oil costs. Consequently the Company’s
operating and financial parameters were under severe pressure and clearly below the sustainable levels for medium to
long term.
Margin erosion in
the year under review notwithstanding, the base optical media business remains
significantly cash accretive, driven by higher asset turnover and sharp improvement
in working capital cycles. In overall terms,
growth and returns
remain attractive from a long term perspective.
The High Definition
formats are likely to give the Company a growth edge and with BDR winning the
race against
HD DVD, the industry
should witness faster penetration compared to earlier projections, clearly
giving the Company a significant edge.
With the Company’s
continued focus on improving manufacturing efficiencies, growing market share,
proprietary technology and “first to market” position in next generation
Blue-ray laser-based formats, the Company is well poised to benefit from
improved industry dynamics and high growth potential.
During the year, the
Company retained its global position as one of the largest producer of optical
storage media. It also continues to maintain its lead as a technology developer
through its relentless efforts on RandD and various technology collaborations.
In FY08, the Company
maintained its status as one of the top rung suppliers of the next generation
High Definition formats through its earlier acquisition of OM and T from
Philips last year, which brought several technologies with it, giving it a head
start over its rivals. The Company’s pioneering work in Blu-ray phase change
technology and a unique IP position should provide a significant competitive
edge to the Company and enable it to change the cost dynamics for the format to
the consumer. As per Strategic Marketing and Decisions (SMD) the demand for
blue laser based formats is set to exceed over 122 million discs by 2009
from a few million units at
present, and the Company is well positioned to capture a significant share of this emerging opportunity.
Moser Baer’s acquisition of an 81% stake in OM and T B.V., a highly
specialized technology Company, has started bearing fruit in terms of
exploiting cutting edge technologies. This acquisition strongly complements the
existing research being done in Moser Baer’s R and D Centre in India and helps
the Company to be at the forefront of technology in both the optical and solar
photovoltaic (PV) segments. OM and T provided significant contribution to the
development of alternate Blu-ray technology and its commercialization to
enhance the leadership position of Moser Baer in this format.
The Company’s aggressive strategy over the past year has started to
yield results with fringe players finding it hard to sustain themselves.
Industry consolidation and increasing demand traction in Blu-ray are the
positive cues to an otherwise sedate industry environment in the near to medium
term. Long term variables still remain healthy as need for storage and consumer
demand continues to grow. Subject is investing judiciously in new generation
technologies as the optical media business continues to generate substantial free
cash in a difficult environment. In blank optical media, production was
disrupted in midyear due to problems in the power plant. The issue was fully
resolved and capacity optimization will be achieved by mid-2008. Turnover was
also impacted during the year by the strengthening of rupee and the difficult
industry environment.
Overall, aggressive pricing and flat sales volume were the two major
contributory factors affecting earnings; however, net operating cash flows
continue to be strong on the back of judicious capex spends and working capital
control.
The size of the blank optical media market in India is over one billion
discs. The market has grown by 17 per cent year on- year. CDR is a predominant
format accounting for 80 per cent of the Indian market. DVDR has grown
exponentially by almost 100 per cent over last year.
The overall Indian market is growing at 15 per cent with DVD growing at
50% year-on-year. For CDR the market is expected to be flat. ASP of imports has
been very low leading to price erosion. Antidumping duty has been imposed from
March 2008 for CDR imports from 10 countries, which has considerably reduced
the imports of CDRs. Firming up of global prices will also help the Company to
improve the realization from the domestic market.
Strategy
Short
term
v
Leverage “first to market” and IP position in next generation Blu-ray
laser formats
v
Leverage existing R and D and technology capabilities in expanding the
product portfolio
v
Enhance the contribution of value added products (Specials).
Long Term
v
Consolidate
global leadership position
v
Improve
Return on Capital Employed (ROCE) and asset turnover
v
Target
“first to market” in near field and holographic technologies.
Near-term Operational Objectives
Optical
v
Further
augment technological and cost leadership
v
Scale
up the contribution of value-added next generation products and penetrate
markets with these products
v
Continuously
launch new innovative products for customers, in conjunction with new drive
launches
v
Drive
working capital efficiencies and generate free cash flows
v
Develop
strategic alliances for efficient raw material supplies.
Solar PV Business
Global Industry Scenario
Despite the
mid term outlook of high oil and natural gas prices, global energy demand
continious to grow. The most rapid growth is expected from non OECD*
(Organization for Economic Cooperation and Development members) member
countries due to the strong economic growth in these countries.
Renewable energy sources like geothermal, solar and wind constitute approximately 2.2 per cent of the world energy generation. Solar energy contributes 0.1% of the world’s total energy needs. Solar energy costs are declining while base load and retail costs are increasing; indicating that grid parity could be reached earlier than estimated. Price declines drive elasticity of demand. A current cost reduction rates, a bulk of the solar industry will reach grid parity within nearly 10 years. Solar generated electricity can be cost competitive with grid when costs fall to $2.5/watt.
Despite increased availability of polysilicon from new and existing players, demand from Europe (Spain, Italy, and
Germany) has been very strong. A key trend in the solar energy sector is the diversification away from the top three markets—Germany, Japan, and the US—which together drove almost 85% of solar demand in 2006-07. Progress in Spain and other European countries form the key variables for demand in 2008. Progress in Italy and the US remain the key variables for demand in 2009.
Higher energy costs, declining fossil fuel supplies and a thrust on reducing carbon emissions have ensured that
that the worldwide interest in the renewable energy space, and particularly PV, continues to grow. Driven by recent significant technological advancements, it is estimated that the solar market will have a 43% CAGR and is poised to achieve grid parity in the short to medium term. Current demand projections translate to a market value of US$50- 70 billion by 2010.
Matching these demand projections, incentives from government led subsidies, and better margins have ensured
that there is global interest from large market participants. The robust growth in last few years will be further accelerated by reducing the PV energy costs. Development of disruptive technologies within the PV space will also contribute to accelerated cost reduction.
Currently, PV generates less than one percent of the world’s electricity needs, leaving a massive potential market. The International Energy Agency (IEA) estimates that governments and the private sector will invest around US$10 trillion to expand and upgrade global electricity infrastructure over the next 30 years.
Apart from the developed world, governments in the Asia Pacific region are continuing to strengthen their policies
and support for the implementation of technologies that can produce power with lower emissions than traditional
technologies, such as power plants using coal, gas, or oil as a fuel source. The Indian and Korean feed in tariff initiatives are a step in this direction.
Indian Government has recently announced subsidy plans
ranging between US$750/kW (US$0.75/watt) for installed capacity for residential
or commercial use and US$1,250/ kW ($1.25/watt) for community and institutional
use. The Central Government also announced feed-in-tariffs of up to US$0.30 per
kWh for grid connected solar PV capacity of 1 MW and above. Some of the Indian states have
also announced independent programmes to support large size solar PV
installations.
Moser
Baer’s Endeavours
The Company aims to distinguish itself as a significant player in the
global photovoltaic market by leveraging its highvolume manufacturing expertise
and planned investments of nearly US$ 3.2 billion in research, development and
manufacturing of products dedicated to generating solar power.
The Company realizes that PV markets have different needs and emerging
technologies have to be developed today to realize the world’s future energy
needs. It has already announced investments in a mix of currently available and
emerging technologies as follows:
v
A first of its kind 80 MW, state-of-the-art, fully automated in-line horizontal
crystalline silicon cell manufacturing facility.
v
A 80 MW module manufacturing facility.
v
In excess of 600 MW amorphous silicon thin film module capacity, capable
of producing the world’s largest non-flexible thin film modules.
v
A high concentrator photovoltaic (CPV) module manufacturing facility and
multi-million dollar investments in : Solfocus Inc., a US-based Company and the
developer of the CPV technology in partnership with the world renowned Palo
Alto Research Centre (PARC), California.
v
The technology is based on gallium arsenide cells, originally developed
for extra-terrestrial solar applications and environments
v
A significant equity stake in Solaria, a US-based technology Company
that has developed a unique form of low-concentration solar PV technology. It
is capable of producing power equivalent to two to three times the power
produced by conventional PV modules, using the same amount of silicon material
v
A significant minority stake in Stion Corporation, a nanostructures
development Company based in the Silicon Valley, California, for producing
extremely lowcost solar power generating surfaces
v
Acquisition of 40% equity stake in Solar Value, Proizvodnja d.d, a solar
grade silicon production facility in Slovenia, to provide access and assurance
of supply to low-cost solar grade silicon. The initial test results of the
v
facility have been encouraging and the development of commercial scale
facilities is underway
v
An R and D centre dedicated for the improvement and rapid
commercialization of solar technology products is coming up in Greater Noida.
In addition to the above, the Company has invested in strategic partnerships
involving the entire value chain, particularly for strategic sources such as
silicon ingots and wafers, glass, etc. through short-term and long-term supply
agreements.
Entertainment
and Media Industry
The Indian Entertainment and Media (E and M) industry report 2008,
jointly issued by FICCI and PricewaterhouseCoopers, says: ‘’Home video rights
is becoming a sizeable chunk of revenue for film producers with the rise in
disposable incomes, increased affordability of DVD players and home theatre
systems and shorter release windows. Further, the entry of players such as
Moser Baer has changed the entire model prevalent for last several years from
rental to a sell through.’’
The Indian E and M industry has been growing at a healthy rate in the
last few years and the trend is expected to continue for the next few years. In
2007, the E and M industry recorded a growth of 17% over the previous year,
higher than the forecasted
growth of 15% projected in the previous year. The industry reached an estimated
size of Rs. 513 billion in 2007, up from Rs. 438 billion in 2006.
Home video market
has also witnessed dynamic changes in the last four years, having achieved a
growth rate of 30 per cent over the period 2004-2007. Its contribution stands
at 8% of the overall film industry revenues in 2007, up from 6% in 2004. In
2007, the home video market is estimated at Rs. 7.5 billion, up from Rs. 6.5 billion
in 2006, translating into a growth of 15% from the previous year. Year-wise
growth of the Indian film industry in different segments:
Subject
Entertainment offers home video titles in various Indian languages at unmatched
prices and is also engaged in media content creation.
Moser Baer is today
India’s largest home entertainment Company and the first to offer home videos
in every popular language of India. It currently offers home video titles in
Hindi, English, Tamil, Telugu, Malayalam, Kannada, Marathi, Gujarati, Bengali
and non-film categories. Moser Baer Entertainment has acquired the rights for
close to 10,000 titles in all the popular languages and has released almost
4,000 of them in the market.
The Company has
established a strong presence across the country in all major metros, as well
as in smaller towns through an active and well-organized multi-tiered channel.
The Company has released video content in DVD and Video CD formats using Moser
Baer’s proprietary and patented technology that ensures the highest quality
standards and significantly reduces cost. The movie titles come with world
class packaging.
Consumer Electronics
Having established itself as a global leader in the high technology manufacturing space and the global blank optical storage media industry, Moser Baer is leveraging its existing synergies, established brand equity and large distribution network in the domestic market to enter the PC peripherals market. Moser Baer brand is recognized for high quality products which the Company extended during the year into the fast growing PC peripherals market in India. The Company has entered this market by launching products in five metros. The product segment launch complements existing optical media business and leverages Moser Baer’s strong brand equity.
Currently the IT vertical industry (PCs and notebooks) is pegged at Rs. 200000.000 millions and the PC peripherals industry is worth Rs. 120000.000 millions
Moser Baer has already established itself as a major player in the USB drives and memory cards market. Its foray into PC peripherals in the form of ODDS will further help in strengthening its position is the industry.
Segment-Wise And
Product-Wise Performance
Optical Storage
Media
CDR/RW
Consumer demand for the CDR/RW Format continues to grow in BRIC and
Middle Eastern markets, somewhat compensating for the decline in the developed
markets. There are however, certain niche applications and professional
segments, which continue to witness growth in the CDR space.
Meanwhile global CDR/RW supply continues to consolidate through some of
the capacities being converted to DVDR and also on account of closure of
inefficient capacities around the world. This may help CDR/RW demand-supply
balance return to equilibrium, thereby providing some stimulus to arrest the
decline in CDR/RW pricing in the medium term.
DVD/
RW
Shifting consumer preferences, increasing drive penetration and
improving price-value proposition of DVDR/RW media continues to lead the growth
for the format. As per SMD global shipments of DVDR/RW Formats rose 20% y/y in
2008 to 7.5 billion units from the preceding year. SMD expects DVDR/RW
shipments to touch almost nine billion units in 2008, representing a further
20% growth. The DVDR/RW media prices are expected to continue to follow the
manufacturing cost curve, enabling reasonable margins for manufacturers. The DL
format gives further opportunities in coming years, which although smaller in
terms of absolute volumes, has been showing good growth rates.
Solar
PV Business
Polysilicon supplies are likely to remain tight until 2010. Analyst
reports and market sentiments suggest that companies that have secured the most
polysilicon supplies for the next few years are best positioned in the market.
As costs remain relatively stable, industry will continue to generate
attractive returns on the employed capital. Subject Photo Voltaic, they
continue to secure polysilicon through long term supply contracts. They believe
that the ongoing contracts with Deutsche Solar, REC, GSM and now LDK puts us in
a comfortable and competitive position on the supply front.
At current price levels, wafer costs make up to 75% of total cell costs
and hence access to reasonably priced silicon is essential to maintain healthy
margins. Improved conversion efficiencies and using thinner wafers are key to
reducing costs.
Solar module (panel) prices are more meticulously tracked than overall
system costs. The market in 2008 has been erratic - an environment that is
seeing rising prices for all products. This situation is mainly due to the rush
to meet project deadlines in Spain before revision of feed-in-tariffs. However,
the industry estimates suggest that over the long term, the Average Selling
Prices (ASP) of the solar energy equipment is set to fall by 5-7% per annum
driving the enormous demand growth.
The BoS includes all costs other than the module (including inverter,
cabling and the structure; and installation/service) that go into a solar
installation. Despite making up for 40% of total installation costs (and
sometimes much more), the impact of the BoS costs on module ASPs is often
overlooked and is a major opportunity in the future for cost reduction.
The Company stabilized its first 40 MW of production line in crystalline
silicon cell manufacturing during the year. Currently, Subject is in the
process of scaling up the initial 40 MW capacity to 80 MW.
36
Thin Films
Various thin-film technologies are in development to reduce
the amount of light absorbing material required to produce a solar cell.
Thin-film PV modules are produced through the deposition of a light absorbing
film on a substrate (eg, glass).
Some of the advantages of thin film include:
v Reduced
dependence on polysilicon
v Lower
overall cost as significantly lower active material (less than 1% vs.
conventional)
v Higher
energy generation throughout the day compared with silicon panels, given the
ability to generate energy in low light
v High
throughput manufacturing process and equipment.
Currently, there are three main technologies available in the thin films
area:
v Amorphous
Silicon (a-Si) Thin Films, (61%)
v Cadmium
Telluride (CdTe) Thin Films (34%)
v Copper
Indium Gallium Selenide (CIS and CIGS) (5% ) (% in brackets indicates share of technology in current thin
films market)
Rapid scalability, high potential for cost reduction and
stable manufacturing processes made amorphous silicon as the thin film
technology of choice for Moser Baer Photo Voltaic. MBPV has tied up with
Applied Materials Inc. for setting up the initial 40MW line that is currently
undergoing trials.
A road map has been developed to enhance the thin film
capacity to more than 6000MW by 2010.
Lower supply side constraints, higher efficiencies (through
tandem junction technologies), and high product stability are key growth
drivers for Thin Film PV which is estimated to be 20% of the global PV market
by 2010. It is estimated that with low overall costs, the sub-dollar module
cost through thin films technology may be a reality. MBPV has decided to
participate in this competitive technology segment through significant
investments and is positioned to be among the market leaders.
Concentrating
Photo Voltaics (CPV)
CPV use mirrors and/or lenses to focus sunlight on a small
piece of semiconductor material and use a fraction of the polysilicon to
produce electricity.
Concentrator solar is ideally suited for regions receiving
high levels of solar insolation (exposure to sunlight) including parts of North
America and the tropics. CPV offers significant potential for rapidly lowering
the Levelized Cost of Electricity (LCOE) to end customer while growth in this
segment will be driven through demonstrated sustenance of CPV and lower costs.
Several countries including Spain have been promoting CPV growth through
specific MW sized demonstration initiatives.
MBPV through strategic participation in high concentration
(Solfocus) and low concentration (Solaria) seeks to capture the opportunities offered
in this technology space.
The Company started manufacturing High Concentration
SolFocus panels at its facility in Greater Noida during the year and shipped
the panels to various SolFocus installations.
The Company is working closely with SolFocus Inc., USA to scale up the
manufacturing operations and indigenization of majority of components to drive
down the manufacturing costs of the panels.
PV
Systems
PV penetration levels in India – either through off-grid (110MW aggregated
capacity) or on-grid (2MW) have been
low considering India receives good solar insolation for the majority of
the year. In an attempt to boost the PV market in India, the Government
recently announced subsidy driven tariffs and income tax exemptions. Consequent
to this, it is estimated that the annual market potential in the short to
medium term would be in the range of 150-500MW. The potential is offered
through both off-grid (rural electrification) and state supported large grid
connected projects With an ability to deploy the appropriate PV technology for
the right market, the MBPV Systems group seeks to build on the market potential
and is working actively towards seeding the market. The group has recently
signed MOU’s with the Rajasthan and Punjab state governments and is working
closely with financing institutions and other overseas agencies for cost
effective offerings.
Outlook
Optical Storage Media
Next generation formats
With the end of High Definition format war, BDR/RE technology is likely
to grow faster than anticipated earlier and has the potential of significantly
mitigating the impact of slow down in some of the earlier formats. During the
year, commercial shipments of this next generation format continued from
Subject and other major Japanese manufacturers. The current pricing for these
formats continues to be 20-25 times that of the DVD formats.
As per the US-based Strategic Marketing and Decisions, the demand for
BDR formats is expected at grow sharply to over 1.7 billion discs over the next
three years on account of increasing applications driven by high definition
video content and improving price value proposition offered by these formats as
their pricing curve approaches the inflection point required to expand market
demand.
Given the complexity and manufacturing capabilities required to mass
produce these formats, only a small select
group of companies will emerge as key players in this high growth
segment, thereby increasing the differentiation
between the technology innovators and developers and the tier-II
companies over the long term.
Solar
PV Business
The market outlook for 2008 is very strong and they expect strong growth
due to growth in select regions including US, Europe and Asia. However, the
second half of 2008 will be carefully observed given the limited demand
visibility due to changes in Spain, Germany and the United States and
uncertainty around the ramp of new polysilicon entrants in China and elsewhere.
The industry seems to be marching towards rapid growth (3X-4X in the near
future) with scale reduction for the end consumer.
Subject continues to look at the market aggressively with a mix of
technology products capable of addressing different market needs within the PV
applications.
Entertainment
and Media Industry
The Indian film industry is projected to grow by 13% CAGR over the next
five years, reaching a size of Rs. 176 billion in 2012 from Rs. 96 billion in
2007.
The home video market is expected to significantly shift in the next five years given the developments in 2007. Though an overall growth of 15% is projected over the next five years, in line with the previous years, the current rental market domination is projected to significantly reduce to 25% in 2012 from 95% in 2006 in favour of the sell through market.
Financial Analysis
Overview
The
financial statements have been prepared in compliance with the requirements of
the Companies Act, 1956, and Accounting Standards in India. The management
accepts responsibility for the integrity and the objectivity of these financial
statements, as well as for various estimates and judgments used therein. The
estimates and judgments relating to the financial statements have been made on
a prudent and reasonable basis, in order that the financial statements reflect
in a true and fair manner the form and substance of transactions and reasonably
present the state of affairs and loss for the year.
Revenue Analysis
The
gross revenues in fiscal year 2007-08 declined by 5.6% over the previous year
to INR 19,582 million, whiledeclining margins in resulted in loss after tax of
Rs. 789.100 millions. EBIDTA (including other income) at INR 5,339.8 million
dropped by 11.3% to 25.1%. Despite the current industry conditions and impact
of appreciating rupee vis-ŕ-vis US dollar, the Company was able to minimize
decreases in its operating margin through production efficiencies and control
on working capital.
Fully
diluted earnings per share for FY 2007-08 were INR (4.7) against INR 6.5 in FY
07 after adjusting for Bonus
issue.
The Company generated gross cash flow of INR 3,526.8 million in FY 2007-08.
Capital Structure
The
authorized share capital increased to INR 2,075 million from 1,425 million and
the paid up equity capital post
bonus
issue was INR 1,682.3 million as on March 31, 2008 against INR 1,116 million in
the previous year.
38
Reserves
The Company’s reserves declined to
INR 18,013.2 million in FY 08 against INR 19,852.2 million in FY 07. As on 31st
March 2008, Securities premium account comprised 48% of the total reserves and
General Reserves (including loss for the year) comprised the remaining 52%.
There are no re-valuation reserves as on March 31, 2008.
Loans
Over the years the Company has part
funded its ongoing expansions and investment programs through loans raised at
aggressively at lower costs. They have also tried to build a prudent basket of
currency to hedge against currency risks and minimize cost.
Financial Objectives, Initiatives and
Achievements
The
Company is taking proactive measures to ensure all financial costs are
effectively reduced to have a positive
impact on the bottomline. The Company continued to focus on efficient working capital management to release cash into the system. The Company generated INR 3,193.2 million of cash from operations as against INR 7,140.0 million in the previous year. The ongoing foreign exchange risk management policy has been further strengthened that there is no adverse impact of volatile exchange rates beyond agreed-upon tolerance levels.
Other Details:
Operations
Revenues
for FY ‘08 stood at Rs. 0.020 million, Profit before depreciation, interest and
tax stood at Rs. 0.005 million, and Loss after tax was Rs. 0.007 million.
Turnover was impacted during the year by the strengthing of rupee and difficult
business environment. Aggressive pricing and flat sales volumes were the two
major contributory factors affecting the bottom line. However, net operating
cash flow continues to be strong at Rs. 0.003 million on the back of judicious
capex spends and working capital control.
Industry
consolidation and increasing demand traction in Blu-Ray are the positive hues
to an otherwise sedate industry environment in near to medium term. Long term
variables still remain healthy as need for storage and consumer demand
continues to grow.
Market Development
The
Company continues its strategy to straddle the value chain, using innovation
and product development to develop new markets. The success of this strategy
has been reflected in the increase in market share with retail private labels
and other select distribution channels. This has been accompanied by
development of new products and product variants as ‘specials’ and value-added
products.
2
New Products
During the year, the Company introduced a number of new
Products, including BDR 1X-6X, DVDR 8X Dual Layer, Double sided recordable
discs, “Diamond” CDR and Archival Media. The Company’s in-house product development
team successfully created new products for specialized customers. The Company
launched “Professional Select” Media, developed for the professional
duplication market and CPRM Media with content protection for the Japanese
Market.
Acquisitions
Last year’s acquisition of OMandT (an erstwhile subsidiary
of Philips) has added significant value to the Company’s position. It has
enabled us to emerge as a frontrunner in the next generation BDR formats, given
OM and T’s pioneering R and D work in the Blu-ray disc technology.
Photo Voltaic
Project
Moser Baer Photo Voltaic Limited (MBPV) is moving towards
technological leadership and sustainable competitive edge in this industry by
investing in disruptive technologies. The Company has placed itself in a
vantage position by spreading itself across the value chain and by developing
expertise across multiple existing and future technologies. The global
photovoltaic market is on a high growth curve and experts expect it to be worth
US$ 40 billion by 2010.
MBPV achieved revenues of US$ 42.2 million in FY‘08. The 40
MW crystalline silicon line is being expanded to 80 MW, as planned, by the end
of 2008. The production capacity of solar modules has been expanded to 40 MW.
MBPV has tied up significant customer orders and MoUs,
including two solar farms in Rajasthan and Punjab. The
Company is aggressively pursuing tie-ups in several states
to drive grid-connected solar farms to demonstrate their techno-economic
viability and attractive returns as a source of green peaking power. The
company is on track to ramp up the crystalline silicon cell line capacity to
180 MW in FY’09 and is tying up equipment for the 600 MW expansion of thin film
capacity. The thin film project facility is nearing completion with
commencement of mechanical trials expected in early May 2008.
Content Business
During the financial year, the Company’s entertainment
business achieved break-even and has registered revenues of US$ 38.5 million
for FY07. The Company released Shaurya, its first Hindi feature film, and
Vellitharai, its first Tamil film, in theatres across India. Emphasis on
acquiring new title releases should give further impetus to the growth of the
business, which remains on track to achieve revenues in excess of US$ 200
million by 2010.
Consumer
Electronics
The Company is entering high growth areas in consumer
electronics and launching multiple products. The Company offers the best
quality products, which are available at all major retail counters and major
large format retail chains like Croma, Reliance, Jumbo, etc. The Company has
got a very good response for DVD Players and digital photo frames.
The Company has launched the following products under its
own brand name:
v Four
models of DVD players
v A
model of home theatre system
v A
model of Digital Photo Frame (DPF)
Further, the company is in the process of launching the
following products:
v Eight
models of LCD TVs
v MP3
and MP4 players
v More
DPF models
v More
DVD players.
Subsidiary
Companies
Under the provisions of Section 212(8) of the Companies Act,
1956, the Ministry of Corporate Affairs vide its letters dated 13.03.2008 and
27.05.2008 granted the exemption under Section 212(8) of the Companies Act,
1956 from attaching the documents required under Section 212 of the Companies
Act, 1956. The information required to be published in terms of the provisions
of Section 212(1) of the Companies Act, 1956 is available for inspection by the
investors of the holding Company and the subsidiary Companies at the registered
office of the Company located at 43B, Okhla Industrial Estate, Phase III, New
Delhi – 110 020.
Contingent Liabilities
Corporate guarantees given on behalf of the Subsidiary Companies: Rs. 13642.815 millions (Previous Year Rs. 3520.000 millions).
Against these guarantees loan amounts of Rs. 9051.763 millions (Previous Year Rs. 1251.452 millions) have been availed by the subsidiary companies.
.
|
Disputed demands
(Gross) in respect of:- |
|
31.03.2008 Rs.
In millions |
31.03.2007 Rs
in Millions |
|
Entry Tax
[Amount paid under protest Rs. 1.941 Millions (Previous Year Rs. 1.686
millions) paid through bank guarantee Rs. Nil. (Previous year Rs. 2.646 Millions) |
|
124.745 |
110.391 |
|
Service tax |
|
106.090 |
68.825 |
|
Sales Tax [Amount
paid under protest Rs. 4.597 Millions (Previous Year Rs. 0.072 million) paid
through bank guarantee Rs. 26.596 millions (Previous year Rs. 2.049 Millions) |
|
85.083 |
7.307 |
|
Custom duty and
Excise duty |
|
320.465 |
5.516 |
|
Trade Tax |
|
0.000 |
22.230 |
|
Income Tax
[Amount paid under protest Rs. 24.500 Millions (Previous Year Rs. 5.000
millions) |
|
92.195 |
85.294 |
|
Total |
|
728.578 |
299.563 |
Fixed Assets
- Leasehold Land
- Buildings
- Leasehold Improvements
- Plant and Machinery
- Electrical Installations and Other
Equipments
- Furniture and Fixture
- Office Equipments
- Computers
- Vehicles
As
Per Website Details
History
Spiralling
Growth
A typical
CD has a unique spiral track of data, which, if straightened, would be around 5
km long. It takes a single-minded, precise and persistent approach to lay such
a path. Subject, their spiralling growth is a result of the same meticulous
approach they use to make their media, applied to running their company.
The
company was founded in New Delhi in 1983 with a clear vision— to operate in
products with high entry barriers, from the technology as well as capital point
of view. Given the fact that high obsolescence usually goes hand in hand with
high technology, the risk and reward equation had to make sense. It started as
a Time Recorder unit in technical collaboration with Maruzen Corporation, Japan
and Moser Baer Sumiswald, Switzerland.
However,
it was in 1986, when the data storage field—the marvel of creating a memory
second only to the human brain out of some plastic, specialty chemicals and
dyes— caught the attention of an engineer with a masters degree in mechanical
engineering from the Imperial College, London. So what if this meant breaking
into what was till then the exclusive preserve of Japanese and Taiwanese
manufacturers, questioning the paradigm that no Indian manufacturer could be
competitive in the global space and fighting the image that India was a country
that borrowed technology and did not create it? Such challenges only further
inspired Subject founder and managing director Deepak Puri to take the company
to the forefront of the optical media industry.
Undertaking
its first and only diversification into the data storage industry, Subject
initially manufactured 5.25" Floppy Diskettes, graduating to 3.5"
Micro Floppy Diskettes (MFD) in 1993. Today, Subject is the world's
fifth-largest manufacturer of MFDs. Its unique strength in diskette
manufacturing comes from products conforming to stringent international quality
standards with a cost-effectiveness that few can match.
In
1999, Subject spread its wings into Recordable Optical Media, setting up a
150-million unit capacity plant to manufacture Recordable Compact Disks (CD-Rs)
and Recordable Digital Versatile Disks (DVD-Rs). The strategy for the optical
media project was identical to what had successfully been implemented in the
diskette business—creating a facility that matched global standards in terms of
size, technology, quality, product flexibility and process integration. The
company is today the only large Indian manufacturer of magnetic and optical
media data storage products, exporting approximately 90% of its production.
Since inception,
Subject has always endeavored to create its space in the international market,
something that very few Indian manufacturers have been able to achieve. Aiding
the company in its efforts has been a carefully-planned and sustainable
model—low costs, high margins, high profits, reinvestment and capacity growth.
Along the way, deep relationships have been forged with leading OEMs, with the
result that today there are hardly any players in the field that Subject is not
associated with.
Subject
is manufacturer of removable data storage media. Incorporated in 1983, the
company is today one of India's leading technology companies and ranks among
the top three optical storage media manufacturers in the world. Headquartered
in New Delhi, India, it has a broad and robust product range of floppy disks,
compact discs (CDs) and digital versatile discs (DVDs).
A
pioneer among globalizing Indian firms, subject has a presence in over 82
countries, serviced through six marketing offices in India, the US and Europe,
and enjoys strong tie-ups with all major global technology brands.
Simultaneously, with the launch of the 'moserbaer PRO' label in India, the
company has emerged as the preferred choice in this burgeoning captive market.
The result: Strong growth—with revenues growing at a five-year CAGR of over 42
per cent.
It is this focus on building relationships responsibly that places Subject at
the forefront of digital media technology.
Milestones
|
1983 |
Year of Incorporation |
|
1985 |
Production of 8.0"/5.25" disks
commences |
|
1987 |
Production of 3.5" disks commences |
|
1998 |
Moser Baer India gets ISO 9002
certification |
|
1999 |
Production of CD-Rs commences |
|
2000 |
Production of CD-RWs commences |
|
2002 |
Production of cake and jewel boxes begins |
|
2003 |
Entry into DVD-R formats |
|
2004 |
Technology license agreement with
Hewlett-Packard to manufacture optical media using 'Lightscribe' technology |
|
2005 |
ISO 14001 and OHSAS 18001 certification for
Moser Baer plants. |
· India-based company with nearly two decades' experience in removable data storage
· Among the top three media manufacturers in the world #1 in the fast-growing India market
· Lowest-cost manufacturer of optical media in the world
· RandD-focused company
· Focused on optical and magnetic data storage media
· OEM supplier to all the 12 leading storage media brands in the world
· Revenue growing at 5-year CAGR of 42%
Press Releases:-
Moser Baer
launches a digital video processing facility in Chennai
October 15, 2008
Chennai, October
15, 2008: Moser Baer, the global technology company, has set up a
state-of-the-art digital video processing facility in Chennai. This facility
provides real time video restoration of content, apart from audio restoration,
editing, graphics, content repurposing and high quality and high throughput DVD
compression and authoring services.
The spanking new facility will function as a central video processing
hub, connected to Moser Baer’s Media and Entertainment Services division, which
provides DVD and VCD replication, as well as printing and packaging services to
domestic and international customers. It will also provide compression and
authoring and restoration services to Moser Baer’s own Entertainment business.
With the demand for high definition formats rising significantly, the
Chennai unit will also implement Blu-ray authoring.
Ram Nomula, the chief executive of Moser Baer’s Media and Entertainment
Services, said: “This is an exciting development for the fast-growing
entertainment industry in India. It significantly scales up Moser Baer’s
ability to provide world class products and services to our customers both
domestic and international. Services like real time video restoration allow us
to perform high quality and cost effective restoration of catalogue and archival
content.”
V. Ravichandran, Vice President, Media and Entertainment Services, said:
“The facility will help unlock the value of content for our customers, as they
gear up to meet the increasing programming demands of the rapidly growing media
and entertainment industry, in particular satellite television broadcasters.”
About the Company
Moser Baer, headquartered in New Delhi, is a leading global technology company.
Established in 1983, the company successfully developed cutting edge
technologies to become the world’s second largest manufacturer of Optical
Storage media like CDs and DVDs. The company also emerged as a leading edge
player in next-generation of storage formats, especially Blu-ray discs.
Recently, the company has also transformed itself from a single business into a
multi-technology organisation, diversifying into exciting areas of Solar
Energy, Home Entertainment and IT Peripherals and Consumer Electronics.
Moser Baer’s Media and Entertainment Services division offers a whole
gamut of turnkey capabilities in media authoring, replication and packaging
services. The division has set benchmarks in capacities, production and quality
with a commitment to enriching the entertainment experience of customers.
Moser Baer secures
customer sales orders of $500 million for solar modules
October 1, 2008
New Delhi, October 1, 2008: Moser Baer India Limited, the global technology company, has entered into definitive agreements to supply solar modules to major European solar system integrators. The agreements, with a cumulative value of more than $500 million, envisage supply of amorphous silicon Gen 8.5 thin film panels by PV Technologies India Limited, Moser Baer’s photovoltaic subsidiary, up to the year 2012. The customers include Ralos Vertriebs, one of Europe’s largest system integrators, and Colexon Energy, a leading player internationally in commercial photovoltaic plants. Both are based in Germany.
The agreement terms include fixed price take or pay obligations, fully secured by bank guarantee/L/Cs from first class international banks.
Ravi Khanna, CEO of the Moser Baer Photovoltaic Limited, stated: “The signing of these key customer contracts is further indication of the rapid growth of our photovoltaic business and the faith of our customers in the thin film technology. Moser Baer is pursuing a differentiated strategy in this high growth business and we are poised to be a global leader in solar PV.”
Yogesh Mathur, Group Chief Financial Officer of Moser Baer, said: “This is a significant step forward in developing long term strategic relationships with top tier players in the sector, as well as securing revenues and cash flows for the business.” Moser Baer had recently announced raising over Rs. 415 crore ($93.5 million) through a consortium of private equity investors to fund the ambitious growth of its solar photovoltaic business. In all, the wholly owned photovoltaic subsidiary has raised well over Rs. 800 crore ($193.5 million) of private equity funding.
Photovoltaic industry
growth
Higher energy costs, declining fossil fuel supplies and a thrust on reducing
carbon emissions have ensured that the worldwide interest in the renewable
energy space and particularly PV continues to grow. Driven by recent significant
technological advancements, it is estimated that the solar market will have a
43 per cent CAGR and is poised to achieve grid parity in the short to medium
term. Current demand projections translate to a market value of $50-70 billion
by 2010. The solar market has grown from $13 billion in 2008 to an estimated
$40 billion this year.
Demand from Europe (Spain, Italy and Germany) has been very strong. A key trend in solar energy sector is the diversification away from the top markets like Germany and Japan. Spain and other European countries and the US will continue to drive demand through 2009. The growing demand in developing work countries like India and South Korea will further drive the market up.
About the Company
Moser Baer Photovoltaic Limited (MBPV) and PV Technologies India Limited
(PVTIL), subsidiaries of Moser Baer India Ltd., are in the business of
manufacturing photovoltaic (PV) cells and modules. They manufacture solar cells
and modules by straddling multiple technologies, including crystalline silicon,
concentrators and thin films. The companies currently have production lines in
crystalline silicon cell manufacturing and thin film in the renewable energy
SEZ in Greater Noida in the National Capital Region. PVTIL is setting up a thin
film PV plant near Chennai with a proposed 500 MW annualized capacity.
The parent company Moser Baer India Limited is the leading manufacturer of optical storage media in the world having three state of the art facilities in Noida and Greater Noida.
Moser Baer launches 600VA UPS with improved features for better
performance
10.06.2008
New Delhi 10th June 2008: Moser Baer, India’s largest and world’s
second largest optical storage manufacturer today announced the launch of its
600VA UPS in the market. The IT peripherals segment of Moser Baer has been in
the market from 2007 and has introduced various products like USB Drives,
Memory cards, DVD writers, Headphones, Mouse, Keyboards, etc. The UPS is being
launched by Moser Baer through its national distributor - Ingram Micro India Limited
The UPS being introduced in the market has features like uninterruptible power
supply with battery discharge protection and automatic voltage regulator, which
helps to regulate the input and output voltage. According to Moser Baer, the
automatic voltage regulator ensures that workstations work in normal mode
without using batteries.
It also gives full Discharge, Over Charge and over Load Protection. Apart from
line surge protection, it also has communication interface that helps in
securing shutdown of the system.
The Battery backup time is more than 15 min and the recharge time is 5-6 hours.
Moser Baer also offers two-year warranty on UPS and one-year warranty on
Battery which is supported by on site service for the consumers.
“Moser Baer has always been a leader in the industry. With newer and improved
products on the plate they hope to maintain that position in the IT Peripheral
Market and offer better value to their consumers, says Mr. Bhaskar Sharma,
Executive Vice President ITand Consumer Electronics Division, Moser Baer India
Ltd.”
About Moser Baer India
Moser Baer, headquartered in New Delhi, is a leading global technology
company. Established in 1983, the company successfully developed cutting edge
technologies to become the world’s second largest manufacturer of Optical
Storage media like CDs and DVDs. The company also emerged as the first to
market the next-generation of storage formats like Blu-ray Discs and HD DVD.
Recently, the company has transformed itself from a single business into a
multi-technology organization, diversifying into exciting areas of Solar
Energy, Entertainment, IT Peripherals and Consumer Electronics
Moser Baer announces successful trials of first Gen 8.5 Thin Film plant
11.05.2008
New Delhi – 11th May 2008: Moser Baer India Limited, a global
technology company, today announced that its subsidiary, PV Technologies India
Limited (PVTIL) successfully completed deposition trials for Gen 8.5 a-Si
(Amorphous Silicon) thin film modules, at its new 40 MW facility in Greater
NOIDA on 10th May 2008.
“This is truly a major landmark for them as it marks the completion of
the first project for manufacture of a-Si thin film modules with Gen 8.5
technology. Achieving successful and stable thin film deposition capability for
such large size panels in a record time further manifests their technology and
project execution capabilities. They commenced equipment trials on schedule in
March 2008 and are now on track for commencing commercial production on
target", said Ravi Khanna, CEO, Moser Baer PV.
Yogesh Mathur, Group CFO, Moser Baer India Limited said, “They see an
increasingly significant role for Thin Film technologies in meeting peaking
power requirements and now aim to be a significant player in this segment. The
40 MW Thin Film facility has met key project objectives and they continue with
their significant capacity ramp up plans.”
Photo Voltaic Technologies India Limited has recently signed a
Memorandum of Understanding (MoU) with a leading global equipment supplier to
secure supply of critical equipment for an additional 565 MW phased expansion
of its Thin Film photovoltaic modules manufacturing capacity, which together
with the current project capacity of 40 MW will take the total manufacturing
capacity to over 600 MW by 2010.
Photovoltaic modules based on large area Thin Film technology provide a
potential roadmap to significantly lower the cost of solar energy to consumers.
The demand for Thin Film based solar modules is expected to grow at a robust
pace with increasing applications. Thin film solar modules are ideal for solar
farms, rural applications and building integrated Photovoltaic.
About Moser Baer India Limited
Moser Baer, headquartered in New Delhi, is a leading global technology
company. Established in 1983, the company successfully developed cutting edge
technologies to become the world’s second largest manufacturer of Optical
Storage media like CDs and DVDs. The company also emerged as the first to
market the next-generation of storage formats like Blu-ray Discs and HD DVD.
Recently, the company has transformed itself from a single business into a
multi-technology organisation, diversifying into exciting areas of Solar
Energy, Entertainment and IT Peripherals and Consumer Electronics.
Through its wholly owned subsidiaries, the company manufactures
photovoltaic cells and modules by straddling multiple technologies including
crystalline silicon, concentrator, nano technologies and thin films. oser Baer
Entertainment offers home video titles in various Indian languages at unmatched
prices and is also engaged in media content creation. The company has also
initiated marketing of a series of IT Peripherals and Consumer Electronics
gadgets.
Moser Baer has over 6,000 full-time employees and multiple manufacturing
facilities in the suburbs of New Delhi.
Moser Baer announces 1:2 bonus
Wednesday, May 02, 2007
New Delhi, 2 May 2007: The Board of Directors of Moser Baer
India Limited announced an issue of bonus shares in the ratio of 1:2 (one share
for every two shares held) by capitalizing a part of its reserves.
According
to Deepak Puri, Chairman and Managing Director, Moser Baer India Limited, “The
company’s optical media business has reverted back to normal profitability and
the new businesses have successfully taken off. With the positive outlook of
their various businesses, the board felt it appropriate to issue bonus shares.
This underlines the growing confidence in their new initiatives and the value
that these can create for their stakeholders.”
The
company is constantly evaluating various opportunities and special projects
which could be highly value accretive. To be able to respond quickly as these
special projects/opportunities crystallize, the Board of Directors also
approved raising of capital to finance the company’s expansion/special projects
through a mix of debt/equity and convertible instruments up to USD 150 million.
This is subject to shareholders approvals where applicable.
About
Moser Baer India
Moser
Baer, headquartered in New Delhi, India, was established in 1983. The Company
has successfully developed cutting edge technologies for recordable optical
media, constantly innovating and introducing new products and process. The
company currently has over 5,000 full-time employees and has multiple
manufacturing facilities in the suburbs of New Delhi, The company services it's
customers through 6 marketing offices and subsidiaries/affiliates in India, the
US, Europe and Japan. An emphasis on high quality products and services has
enabled Moser Baer to emerge as one of India's leading technology companies,
with more than 16.5% share of the global recordable optical media market and
new initiatives in technology-lead sectors including Solar Photovoltaic energy
and Home Entertainment.
Moser Baer Photo Voltaic announces US$880 million strategic
sourcing tie-up with REC Group
Friday,
27.07.2007
· To ensure assured supply of high quality silicon wafers for eight years starting from 2008.
New Delhi – 27th July 2007: Moser Baer Photo Voltaic Limited
(MBPV), a subsidiary of Moser Baer India Limited (MBI), and the Norway based
REC Group today announced the signing of a definitive contract for sale and
delivery of high quality multicrystalline silicon wafers by REC to MBPV over an
eight-year period beginning from 2008.
According to Ravi Khanna, CEO, MBPV, “They greatly value the
technical, managerial and operation capabilities of REC and they believe that
this strategic sourcing deal is a win-win situation for both sides. It will
provide a long term customer for REC and an assured supply of high grade
silicon wafers to MBPV.”
Globally, given the rapid growth of the photovoltaic industry,
there is a shortage of silicon wafers, a key raw material for the photovoltaic
industry. While the demand continues unabated, the supply is expected to remain
tight in the near to medium term. An assured supply of silicon wafer will
provide a significant competitive advantage to MBPV in the current industry
scenario.
The contract follows MBPV’s strategic sourcing initiative with
Deutsche Solar and its acquisition of a 40% strategic equity stake in the
Slovenia-based Solarvalue Proizvodnja d.d. which plans to set up a capacity of
4,400 tonnes of solar grade silicon by end 2008. The three pronged strategy is
part of the objectives to access a regular supply of high quality solar grade
silicon at competitive pricing.
The REC contract is structured as a take-and-pay contract with a
reducing price trend on an annual basis with a cumulative potential value of
approx. US$ 880 million. The delivery of wafers under the new contract is
expected from 2008 and continuing over an eight-year period from the first
shipment. The contract assures a regular supply of silicon wafers in the medium
to long term and also ensures that the company benefits from any increased
efficiencies in the silicon wafer market in the future.
“They are very happy to add Moser Baer as one of their strategic
customers, a company that has clearly proven track record of mass production of
quality products”, says Ingelise Arntsen, Executive Vice President in REC.
MBPV is straddling multiple future technologies as it believes in
a customer driven approach in providing optimized products to installations
across the world. Responding to the rapidly expanding solar PV market, where
worldwide demand far outstrips supply, MBPV is moving towards technological
leadership and developing a sustainable competitive edge by investing into
disruptive technologies.
About Moser Baer Photo Voltaic Limited
Moser Baer Photo Voltaic incorporated in New Delhi, a wholly owned
subsidiary of Moser Baer India Limited, in the business of photovoltaic (PV)
cells and modules. MBPV plans to manufacture solar cells and modules by
straddling multiple technologies including crystalline silicon, concentration,
nano technology and thin films. The manufacturing facilities are housed in a
renewable energy SEZ at Greater Noida.
The parent company Moser Baer India Limited is the second largest
manufacturer of optical storage media in the world having five state of the art
facilities at Noida and Greater Noida. MBI reported revenues of over Rs 20000
Millions in FY07.
About REC
REC is uniquely positioned in the solar energy industry with a
broad presence across the solar value chain. REC Silicon and REC Wafer are the
world's largest producers of polysilicon and wafers for solar applications. REC
Solar produces solar cells and solar modules. REC Group had revenues in 2006 of
NOK 4,334 million and an operating profit of NOK 1,574 million.
Moser
Baer launches next generation format
Tuesday, 25.07.2006
The first company
in the world to start volume shipments of HD DVD-R
New
Delhi, 25 July 2006: Moser Baer today announced that it has begun shipping HD DVD-R
(recordable), a next generation format, to its global OEMs customers. The HD
DVD-R will have a capacity of 15 GB and offers more than three times the data
storage capacity of standard DVD media. HD DVD offers an ideal solution for
reliable business backup, including medical and government imaging,
photography, video graphy, as well as high definition video recording.
According
to Ratul Puri, executive director, Moser Baer, “The world is moving towards
High Definition content. This is a significant technology shift in the global
optical media industry and will radically change the consumer’s viewing
experience. According to the US based Strategic Marketing and Decisions, the
demand for the next generation high density formats is expected at 1.5 billion
discs over the next three years. This represents an exciting opportunity for
us, as Moser Baer now has the first mover advantage with this launch.”
In a
fast evolving market landscape and increasing competition, companies are increasingly
using technology to differentiate themselves. Moser Baer has embarked on a
strategy to transform into a technology developer and innovator from a
technology recipient. Comments Giriraj Nyati, VP RandD and Engineering, “This
is a significant landmark for us. And they are very proud that an Indian
company has emerged in a strong leadership position in the next generation
optical media space and current launch is the first in a series of many such
launches expected throughout the year. This reaffirms their technology
leadership position along with their manufacturing leadership position.”
The
intensive R and D thrust will help us to further consolidate their global
leadership position in the optical media space.
The
company continues to leverage its core skills in base material engineering,
thin film coating, precision sputtering and deep UV mastering technologies.
Starting from the current quarter and in conjugation with drive and recorder
availability, the company expects to be first to market in a majority of the
next generation formats. The four products which the company believes will have
a significant market potential in the future are DVDR Dual Layer, HD DVD-R
(recordable) and RW (re-writable), HD DVD Dual layer, and BD-R and RE.
About
HD DVD
The HD
DVD format supports a wide variety of resolutions, from low-resolution CIF and
SDTV up to HDTV formats such as 720p, 1080i and 1080p. The HD DVD format is
promoted by Toshiba, NEC, Sanyo, Microsoft, and Intel, among others. In terms
of major studios, HD DVD is currently exclusively backed by Universal Studios,
and is nonexclusively backed by Paramount Pictures and Warner Bros., Studio
Canal, and The Weinstein Company.
About
Moser Baer India Limited
Moser
Baer India Limited, headquartered in New Delhi, was established in 1983 and is
the second largest manufacturer of optical media disc in the world. It
continues to develop cutting-edge technologies for recordable optical media,
constantly innovating and introducing new products and processes. An emphasis
on high-quality products and services has enabled Moser Baer to emerge as one
of India’s leading technology companies with a nearly 18% share of the global
recordable optical media market. The company employs over 7,000 people and has
multiple manufacturing facilities in the suburbs of New Delhi,
Review
of Operations
Demand
and Pricing:
The
global optical storage media industry is now on a steady path to recovery,
driven by consolidation of capacity, continued growth in consumer demand and signs
of softening of prices for key inputs. The company further consolidated its
position and according to Techno System and Research (TSR), Japan, has emerged
as the second largest manufacturer of optical storage media in the world.
The
company continues its efforts to gradually revert to normal levels of
operational and financial performance, as reflected in a profit before tax of
INR 67.2 million in 1QFY 2007 against a loss of INR 138.7 million in 1QFY 2006.
Lower sales from inventories and the traditional summer demand slackness are
the reasons for a 15% reduction in shipment volumes during the quarter on a
sequential basis. However, improved products mix –with normalization of CDR/RW
sales and increase in DVDR/RW shipments – has led to a 3% increase in the
optical media ASP, helping improve operating parameters during the quarter.
“A
steady improvement in market variables continues. The recovery in CDR/RW media
market pricing since last quarter is a positive, and sustainable. The other
positive during the quarter is a normalization of revenue mix. They expect the
trend to start reverting back to normal operating and financial levels in the
medium term driven by increasing DVDR/RW contribution, improving CDR/RW
pricing, rising production efficiencies and softening of input costs.” Said Mr.
Ratul Puri, Executive Director, Moser Baer India Limited, said.
Costs:
The softening of
market purchase prices of PC (poly carbonate) continued during the quarter –
which is another major positive factor for the industry. While this did not
impact the quarter under review, it will be a major positive influencer of
their margins. The company continues to drive extensive cost reduction
programs, with a focus on DVD formats, resulting in increasing manufacturing
efficiencies. This has ensured margin stability on DVDR/RW formats despite a
pressure on pricing. They have been able to research, design and co-develop
equipment which improves process yields, enabling us to re-set internal
benchmarks for production cost reduction.
Future
trends
The
trend of gradual recovery and improving industry conditions should continue
into the current year. While CDR/RW pricing should remain firm in the medium
term, DVDR/RW prices are expected to continue to follow its cost curve, enabling
us to maintain healthy margins in the optical media business. The revenue share
of higher margin DVDR/RW formats is expected to further rise to a target of 60%
by 4QFY07, thereby improving operating performance.
Moser
Baer emerges as the winner of the 'Golden Peacock Environment Management Award
Friday,
17.06.2005
New Delhi, June
17, 2005: After receiving a flurry of prestigious awards in the recent past,
Moser Baer India Limited, India's largest and world's third largest
manufacturer of optical media storage, emerged yet again as the winner and
brought home the World Environment Foundation 'Golden Peacock Environment
Management Award' for the year 2005. The award was collected by Mr. S.
Rajalingham , Head of the second largest optical media plant of Moser Baer
Moser
Baer came on top on all the evaluation parameters, which included
Eco-Innovation, Preservation of Natural Resources, Eco-habitation,
Competitiveness in Environment Management and Excellence in Environment
Protection.
The
award was presented at a ceremony held in the serene locales of Palampur. Also
present at the ceremony were Dr Olla Ullsten, former Prime Minister of Sweden,
Dr. Mahadev Mehra, President, World Council for Corporate Governance, Justice
MN Venkatchailah, former Chief Justice of India, Smt Vidhya Strokes, Power
Minister, HP and Shri Shanta Kumar, former Chief Minister, HP
Speaking
on the occasion, Mr. Rajalingham said, "it is indeed a proud moment for
Moser Baer and me, as I am personally very proud of being a part of Moser Baer,
and thereby a contributing member for the preservation of their environment,
through Moser Baer.
Moser Baer has not only set high-quality standards for its products, but is
equally conscious about issues like environment, health and safety. Receiving
this award is not only an acknowledgement of their efforts, but also motivates
us to work even harder and help their environment."
Moser
Baer is the first company in India to receive Phytosanitary certificate with
permanent code number IN-001-HT for elimination of methyl bromide and
development of in-house heat treatment process, recognized by Ministry of
Forest and Environment Govt. of India and IPPC Rome. Also, Sony Corporation
Japan has announced Moser Baer with a Green Partner Certification for the
non-use of banned substances in product and packing material.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The 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.
The 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. 47.67 |
|
UK Pound |
1 |
Rs. 75.47 |
|
Euro |
1 |
Rs. 61.19 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|