MIRA
INFORM REPORT
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Report Date : |
11.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
ALOK INDUSTRIES LIMITED |
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Registered Office : |
3-43, Mittal Tower, Nariman Point, Mumbai - 400 021,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
12.03.1986 |
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Com. Reg. No.: |
11-39194 |
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CIN No.: [Company
Identification No.] |
L17110MH1986PTC039194 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA02206B |
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PAN No.: [Permanent
Account No.] |
AAACA0201C |
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Legal Form : |
It is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of cotton and viscose / blended grey and
processed fabrics and 100% cotton knitted fabrics and intermingled yarn. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 66000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Financial position is satisfactory. Payments are usually correct and as per commitments. The company is
doing well. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
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LOCATIONS
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Registered Office : |
3-43, Mittal Tower, Nariman Point, Mumbai - 400 021,
Maharashtra, India |
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Tel. No.: |
91-22-22874865 / 22832923 / 24940129 / 22845233 / 22881279 / 22832923 |
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Fax No.: |
91-22-22874864 / 24936078 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Peninsula Tower 'A' Wing, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
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Tel. No. : |
91-22-24996200 /
6500 |
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Marketing
Offices (Domestic) |
Delhi
Office ·
177, Alok House, Sant Nagar, East of Kailash, New Delhi - 110 065 ·
F/29,Okhla Industrial Area Phase-I, New Delhi – 110 020, India Bangalore
Office Ground
floor, Rajee, 8-3/1, Lang Fort Road, ,Lang Fort Town, Bangalore - 560 025,
India Chennai
Office Office No. D, First Floor, Doshi Towers
No. 156, Poonamallee High Road, Kilpauk, Chennai - 600 010, India |
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Marketing offices: (Overseas) |
Sri
Lanka Office 31/2,
De Fonseka Place, Colombo, Sri Lanka U.S.A.
Office ·
7 West, 34th Street, Suite # 607, New York, New York – 10001 ·
123 OAK, Lann Avenue, DALLAS, TX75207 Czech Republic BOBKOVA, 747/30-Cerny Most, Praha,190 00 Czech Republic United Kingdom Dureck House, Drayton Road,Shirley, Solihull, England-B 90 NG UK |
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Factory : |
Spinning 412, Saily, Silvassa, Union Territory of Dadra & Nagar Haveli
Weaving Division Kalyan Road, Babla Compound, Bhiwandi - 421 302, District Thane, Maharashtra, India
17/5/1 and 521/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli
209/1 and 209/4, Silvassa, Village Dadra, Union Territory of Dadra and Nagar Haveli Yarn Division 65, A, Piparia Industrial Estate, Silvassa - 396 230, Gujarat, India
103 / 2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli
Processing C-16 / 2, TTC Industrial Area, MIDC, Navi Mumbai, Maharashtra, India
S. No. 268, Village Balitha, Pardi, Valsad, Gujarat, India
254, Village Balitha, Taluka Pardi, District Valsad, State Gujarat
Knitting Division 17/5/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli
521/1, Saily, Union Territory of Dadra and Nagar Haveli, Silvassa
254, 261, 268, Balitha, Taluka Pardi, Dist: Valsad State: Gujarat
110, Morai, Pardi, Valsad, Gujarat, India
Garments 374 Saily, Silvassa, Union Territory Dadra Nagar Haveli
C – 271/2, TTC Industrial Area, Turbhe, Navi Mumbai
Made Ups 374/2/2, Village Saily, Silvassa, Union Territory Dadra and Nagar Haveli 268, Balitha, Taluka Pardi, Dist. Valsad, Gujarat
POY 521/1, Saily, Union Territory of Dadra and Nagar Haveli, Silvassa
Texturising (yarn) 103/2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli
521/1, Saily, Union Territory of Dadra and Nagar Haveli, Silvassa
17/5/1 and 521/1 Rakholi / Saily, Silvassa Hemming 103/2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli |
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Branches : |
177, Alok House, Sant Nagar, East of Kailash, New Delhi – 110065 |
DIRECTORS
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Name : |
Mr. Ashok B.
Jiwrajka |
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Designation : |
Executive
Chairman |
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Date of
Birth/Age : |
58 Years |
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Qualification : |
Commerce Graduate |
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Experience : |
30 Years |
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Other Directorship : |
·
Grabal Alok Impex Limited ·
Alok Knit Exports Limited ·
New City of Bombay Mfg. Mills Limited ·
Alspun Infrastructure Limited ·
Alok Infrastructure Private Limited ·
Alok Apparels Private Limited ·
Alok Clothing Private Limited ·
Alok Realtors Private Limited ·
Alok Homes and Apparels Private Limited ·
Alok Land Holdings Private Limited ·
Alok Aurangabad Infratex Private Limited ·
Alok New City Infratex Private Limited ·
Alok Industries International Limited ·
Grabal Alok International Limited |
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Other Committee Memberships : |
Chairman of the Executive Committee of Grabal Alok Impex Limited Member of Share Transfer and Investors’ Grievances Committee of Grabal
Alok Impex Limited |
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Name : |
Mr. Dilip B. Jiwrajka |
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Designation : |
Managing Director
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Name : |
Mr. Surendra B. Jiwrajka |
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Designation : |
Joint Managing Director
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Name : |
Mr. K. C. Jani |
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Designation : |
Nominee Director
of Industrial Development Bank of India Limited |
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Name : |
Mr. Rakesh Kapoor |
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Designation : |
Nominee Director
of IFCI Limited |
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Name : |
Mr. K. J. Punnathara |
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Designation : |
Nominee Director
of Life Insurance Corporation of India |
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Name : |
Mr. Ashok G. Rajani |
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Designation : |
Director |
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Name : |
Mr. C. K. Bubna |
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Designation : |
Executive
Director |
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Name : |
Mr. K. R. Modi |
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Designation : |
Director |
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Name : |
Mr. R. J. Kamat |
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Designation : |
Nominee Director
of Industrial Development Bank of India |
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Name : |
Ms. Hiroo S.
Advani |
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Designation : |
Nominee Director of
Export Import Bank of India |
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Name : |
Mr. Tim Ingram |
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Designation : |
Director |
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Name : |
Mr. Rakesh Kapoor
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Designation : |
Director |
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Name : |
Mr. S. Sridhar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Sunil O Khandelwal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. K H Gopal |
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Designation : |
President (Corporate Affairs) and Secretary |
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CORPORATE
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Name : |
Mr. Alok Jiwrajka |
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Designation : |
Head – Home Textiles |
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Name : |
Mr. Gopinath Kamath |
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Designation : |
Asst. Vice President (Sales) |
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Name : |
Mr. Jayesh Mehta |
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Designation : |
Sr. Manager - Home Furnishing |
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Name : |
Mr. K. H. Gopal |
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Designation : |
VP (Legal) and Company Secretary |
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Name : |
Mr. Mesmer Michaeli |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. Nagori M. V. |
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Designation : |
Vice President - Corporate Accounts |
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Name : |
Mr. Prakash Thombre |
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Designation : |
Head - Human Resources |
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Name : |
Mr. Ramesh Sharma |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. Shaji Varghese |
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Designation : |
Head - Information Technology |
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Name : |
Mr. Sunil Mehta |
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Designation : |
Vice President (Retail) |
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Name : |
Mr. Sunil O. Khandelwal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Suraj Alva |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. Suresh H. Sanghvi |
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Designation : |
Vice President (Sales Yarn and Knit) |
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NAVI
MUMBAI |
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Name : |
Mr. Devang Mehta |
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Designation : |
CEO - Processing |
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Name : |
Mr. Raju Kapadia |
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Designation : |
General Manager - Commercial (Garments) |
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Name : |
Ms. Tulsi Karnani |
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Designation : |
General Manager - Commercial (Processing) |
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SILVASSA |
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Name : |
Mr. B. N. Rai |
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Designation : |
Vice – President |
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Name : |
Mr. K. V. S. Nair |
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Designation : |
General Manager (Texturising) |
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Name : |
Mr. M. C. Chaturvedi |
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Designation : |
General Manager (Weaving) |
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Name : |
Mr. R. B. Mahapatra |
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Designation : |
Vice - President |
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Name : |
Mr. Rambilas Bidada |
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Designation : |
General Manager – Commercial |
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Name : |
Mr. S. S. Shirolkar |
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Designation : |
General Manager (Knitting) |
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Name : |
Mr. Sapan K. Mukerjee |
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Designation : |
Chief Executive Officer (Spinning) |
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Name : |
Mr. A. K. Pal |
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Designation : |
President - Processing (Apparel Fabric) |
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Name : |
Mr. G. C. Gupta |
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Designation : |
President - Operations (Processing) |
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Name : |
Mr. P.K. Das |
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Designation : |
President - Technical |
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Name : |
Mr. S. C. Goyal |
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Designation : |
Director - Projects |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters holding |
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Foreign promoters |
102000 |
0.05 |
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Indian promoters |
60152940 |
32.14 |
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Institutional
Investors |
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Mutual funds and UTI |
3981159 |
2.13 |
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Bank Financial Institution and insurance |
13779207 |
7.36 |
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FII’s |
55897385 |
29.86 |
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Other investors |
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Private corporate bodies |
33096966 |
17.68 |
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Indian public |
18957969 |
10.13 |
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NRIs / OCBs |
1205343 |
0.65 |
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Trusts |
2000 |
0.00 |
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Total |
187174969 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of cotton and viscose / blended grey and processed
fabrics and 100% cotton knitted fabrics and intermingled yarn. |
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Products : |
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Imports : |
· Switzerland · England · Hongkong · Germany · Belgium · Bahrain · Malaysia ·
Japan |
PRODUCTION STATUS
(As on 31.03.2008)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Woven Fabric Manufactured |
Lacs Mtrs. |
1237 Looms* and
15 Stenters* |
946.52 |
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Knitted Fabric |
M.T. |
158 Machines |
6807.50 |
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Cotton Yarn |
M.T. |
150912 Spindles |
1775.22 |
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Texturised Yarn |
M.T. |
17796 Spindles |
43614.67 |
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POY |
M.T. |
2208 Spindles |
23837.16 |
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Handkerchief |
Pcs. |
64 Machines |
1499508 |
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Garments |
Pcs |
1636 Machines |
4316691 |
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Garments |
Sets |
907 Machines |
4299501 |
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Made-ups |
Pcs. |
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905066 |
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Made-ups |
Pairs |
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1413015 |
* Includes 598 Nos. Double width Looms
GENERAL
INFORMATION
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Suppliers : |
· Zellweger Luwa AG, Uster, Switzerland · Benninger Company Limited, Uzwil, Switzerland · Bonas Machine Company Limited, Gateshead, England · Staubli AG, Horgen, Switzerland · Atlas Copco Airpower N. V., Antwerpen, Belgium · Electronia Contractor AG, Lugano, Switzerland · Itochu Middle East E.C., Bahrain · Dunham-Bush Industries Sdn Bhd, Salangor Darul Ehsan, Malaysia · Todo Seisakusho Limited, Osaka, Japan · Benninger Company Limited, Uzwil, Switzerland · Gematex Textivered Lungs-Maschinen Gmbh, Wettinerstrasse 4, D-08280, Aue Germany · Fong's National Engineering Company Limited, Tsing Yi Island, Hong Kong · Osthoff-Senge GmbH and Company Kg. Postfach 11 04 65 D-42304, Wuppertal, Germany · Mayer and Cie Gmbh and Company, Albstadt, Germany |
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No. of Employees : |
1500 |
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Bankers : |
· Bank of Baroda · Calyon Bank · Citigroup · Dena Bank · IDBI Bank · ING Vysya Bank Limited · State Bank of Mysore · State Bank of Saurashtra · State Bank of Travancore ·
Standard Chartered Bank · State Bank of India Backbay Reclamation Branch, Raheja Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22819539 / 22840754 / 1458 Fax No. 91-22-22043252 · Bank of India Bank of India Building, 4th Floor, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India · Jammu and Kashmir Bank Limited Homi Modi Cross Lane II, Fort Chambers, Block “B”, Fort, Mumbai – 400 023, Maharashtra, India · Andhra Bank Nanavati Mahalaya, 18, Homi Modi Street, Fort, Mumbai – 400 023, Maharashtra, India · Centurion Bank of Punjab Limited 25/26, Maker Chamber III, 2nd Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22819124 / 22831922 Fax No. 91-22-22048165 · The Federal Bank Limited Mimson House, 1st Floor, Crawford Market, Mumbai – 400 003, Maharashtra, India Tel. No. 91-22-23453202 Fax No. 91-22-23453204 · State Bank of Indore 214, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India · State Bank of Patiala Atlanta, Nariman Point, Mumbai – 400 021, Maharashtra, India · Punjab National Bank PNB House, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India Tel. No. 91-22-22660040 Fax No. 91-22-22663521 · The Karur Vysya Bank Limited Kamanwala Chambers, Ground Floor, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India Tel No. 91-22-22665467 / 5914 Fax No. 91-22-22654260 · Development Credit Bank Limited 6, Tulsiani Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22830115 Fax No. 91-22-22885272 · State Bank of Hyderabad 11-C, Mittal Tower, 1st Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22844096 Fax No. 91-22-22841096 · Syndicate Bank 11, Ballard Estate, Adi Marzban Road, Ballard Estate, Mumbai - 400 038, Maharashtra, India Tel. No. 91-22-22626622 / 22618536 Fax No. 91-22-22626619 · Syndicate Bank Syndicate Bank Building, Sir P. M. Road, Fort, Mumbai – 400 001, Maharashtra, India · The Vysya Bank Limited 210, Mittal Tower, ‘A’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India · Standard Chartered Grindlays Bank 90, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India Tel. No. 91-22-22642245 Fax No. 91-22-22619866 · State Bank of Bikaner and Jaipur Overseas Branch, 240-242, Nirman Building, Nariman Point, Mumbai – 400 021, Maharashtra, India · Citi Bank · Industrial Developments Bank of India Limited · ING Vysya Bank Limited · Axis Bank ·
Canara Bank · The Federal Bank Limited |
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Facilities: |
NOTES: 1 Debentures are
secured by: a) Nil (Previous
year 500) 8.75% Redeemable Non convertible Debentures of Rs.1000000/- each, and
Nil (Previous year 200) 9.00% Redeemable non convertible debentures of Rs.
1000000/- each were redeemed on 25th June 2007 and 24th December 2007
respectively. b) Debentures
issued during the year are reedemable as follows:
c) All the
debentures in a) and b) above are /were secured by pari passu charge on the
immovable property situated at Mouje Irana,Taluka Kadi, District Mehsana in
the state of Gujarat. 2. Term loans
are secured as under : a) Term loans
from financial institutions and from banks (Including foreign currency loans)
to the extent of Rs. 2024.100 millions (Previous year Rs.1954.400 millions)
and Rs. 26892.900 millions (Previous year Rs.16387.200 millions)
respectively, are secured by (i) a pari passu first charge created/to be
created on all present and future movable and immovable assets of the company
subject to exclusive charges created/to be created on specific fixed assets
in favour of specified lenders. (ii) a charge created/ to be created on all
current assets of the company subject to a prior charge on such current
assets created/to be created in favour of the company’s bankers towards
working capital requirements and (iii) the personal guarantees of three
promoter directors. b) Term loan
from banks to the extent of Rs.1528.100 millions (Previous year Rs.1873.200
millions) is secured by (i) an exclusive charge created on specific assets
financed by them and (ii) the personal guarantees of three promoter
directors. c) Term loan
from the banks to the extent of Rs. Nil (Previous year Rs.76.100 millions)
are secured by (i) an exclusive charge created on specific assets financed by
them (ii) a charge created/ to be created on all the assets of the company
present and future subject to a prior charge created/to be created in favour
of company’s term lenders and towards working capital requirements (iii) the
personal guarantee of three Promoter Directors of the Company. d) Term loans
from the Banks and Financial Institutions to the extent of Rs. 2252.100
millions (Previous year Rs.1095.300 millions) and Rs. 777.400 millions
(Previous year Rs.463.500 millions) respectively, are secured by (i)
subservient charge on all movable assets of the Company present and future
subject to prior charge on specific movable assets in favour of the company’s
term lenders and towards working capital requirements (ii) the personal
guarantee of three Promoter Directors of the Company. e) Term loan
from franks to the extent of Rs. 155.800 millions 9Previous year rs.Nil) are
secured by (i) subsorvient charge on all assets of the company excluding land
and building (ii) Pledge of company’s investment in a subsidiary viz Alok
Industries International Limited (iii) The personal guarantee of three
promoter Directors of the company. f) Term loans
from the Banks to the extent of Rs. 5819.200 millions (Previous year Rs. Nil
) , are secured by subservient charge on all present and future moveable
fixed assets, stocks and receivables of the company subject to prior charge
in favour of the Company’s term lenders and working capital requirements. 3 . Working Capital
limits from banks are secured by (i) hypothecation of Company’s inventories,
book debts etc. (ii) second charge created / to be created on the fixed
assets of the Company (iii) immovable properties belonging to the Company /
Guarantors and (iv) the personal guarantees of three promoter directors of
the Company. 4 . Hire Purchase
Loans are secured by the respective assets, mainly Plant and Machinery and
Equipments, purchased under the said loans.
NOTES: 1. Term Loans
from Banks a) Includes commercial
paper of Rs. Nil (Previous year Rs.800.000 millions) maximum amount
outstanding at any time during the year Rs. 1100.000 millions (Previous year
Rs.800.000 millions) b) To the extent
of Rs. 1599.900 millions (Previous year Rs. Nil) are secured by Personal
Guarantee of three Promoter Directors 2. Short term
Foreign Currency Loan Rs. 150.100 millions (Previous year Rs. 434.400
millions) from Banks are secured by (i) Personal Guarantee of three Promoter
Directors and (ii) Power of Attorney to create first charge on the fixed
assets of the Company in case of default. |
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Banking Relations : |
Satisfactory |
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Auditors : |
Gandhi and Parekh Chartered Accountant, Saraswati Darshan, Malad (West), Mumbai – 400 064, Maharashtra, India |
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International Accountants : |
Deloitte Haskins and Sells Chartered Accountants Member – Deloitte Touche and Tohmatsu (DTT) |
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Internal Auditors: |
· Bhandarkar and company Chartered Accountants
· Devdhar Joglekar and Srinivasan Chartered Accountants
· N T Jain and company Chartered Accountants
· Shah Gupta and company Chartered Accountants
· T R Chadha and company Chartered Accountants |
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Legal Advisors
and Solicitors : |
Kanga and Company |
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Associates : |
· Grabal Alok Impex Limited 106/107, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Manufacture of all types of embroidered products
· Alok Knit Exports Limited 109, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India
· Nirvan Holdings Private Limited 109, Shah and Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Investment Company · Jiwarjka Associates Private Limited 109, Shah and Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Trading in textiles
· Jiwarjka Investment Private Limited 2, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Trading in textiles
· Niraj Realtors and Shares Private Limited 107, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Dealing in real estate, properties and shares
· Alok Finance Private Limited 106/107, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Finance company
· Nirvan Capital Services Limited 109, Shah and Nahar (Worli) Industrial Estate, Off Dr. E, Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Finance Company
· Ashok Realtors and Shares Private Limited 302, Krishnakunj, 3rd Floor, Plot No. TPS – 170, Shivaji Park Road No. 5, Pandurang Naik Marg, Mahim, Mumbai – 400 016, Maharashtra, India Dealing in real estate, properties and shares
· Alok Denims (Private) Limited 106/107, Shah and Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Manufacturing of Denim fabric
· Alok Textile Traders · Pramatex Enterprises · Alok Knit Exports Limited · Nirvan Clothing Company Limited · Nirvan Exports · Alok Finance Private Limited · D. Surendra and Company · Green Park Enterprises · Lipren Knit-Fab Private Limited · Galaxy Gloknit Private Limited (Formerly known as Renhok Tex-Knit Private Limited · Pramita Creations Private Limited (Formerly Pramita Fashions Private Limited) · Vidhi Gloknit Private Limited (Formerly Known as Vidhi Apptex Private Limited) · Globus E-Commerce Limited (Formerly Known as Globus Technologies Limited) · Alok Itec Limited · Buds Clothing Company · Eden Knitfab · Honey Comb Knit Fabrics · Maclon Textiles · Mircon Knits · Pique Knits · Tulip Textiles · Vaibhav Knit-Fabs · Viraj Textiles · The Waffle Knits · Daffodil Knitfab · Alok Incorporation · Alok Industries International Limited · Alok Infrastructure Private Limited · Ashok NB Jiwrajka (HUF) · Dilip B Jiwrajka (HUF) · Grabal Alok (UK) Limited ((formerly known as Hamsard 2353 Limited) · Grabal Alok international Limited · Green Park Enterprises · Nirvan Exports · Pramatex Enterprises · Pramita Creation Private Limited |
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Subsidiaries : |
·
Alok Inc. ·
Alok Industries International Limited. ·
Alok Homes and Apparel Private Limited ·
Alok Land Holdings Private Limited ·
Alok Aurangabad Infratex Private Limited ·
Mileta a.s. ·
Alok Infrastructure Private Limited ·
Alok Apparels Private Limited ·
Alok Realtors Private Limited ·
Alok New City Infratex Private Limited · Alok Aurangabad Infratex Private Limited |
CAPITAL STRUCTURE
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
275000000 |
Equity shares |
Rs.10/- each |
Rs.2750.000 millions |
|
25000000 |
Preferences shares |
Rs.10/- each |
Rs.250.000 millions |
|
|
Total |
|
Rs.3000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
187174969 |
Equity shares |
Rs.10/- each |
Rs.1871.700
millions |
Notes :
a) During the year
16802995 (previous year 12903518) equity shares are issued as under :
i] 15869202
(previous year 1755978) equity shares of Rs.10/- each are issued on conversion
of 459 (previous year 55), 1% Foreign Currency Convertible Bonds (FCCBs) of USD
50000/- each together with interest at a premium aggregating to Rs.977.400
millions (previous year Rs.108.100 millions).
ii] 933793 (previous
year Nil) equity shares of Rs.10/- each are issued on preferential allotment to
promoter group at a premium aggregating to Rs. 85.900 millions.
iii] Nil (previous
year 11147540) Equity shares of Rs.10/- each are issued on conversion of
680000.00 10% Optionally Convertible Preference Shares of Rs. 10/- each at a
premium aggregating to Rs. Nil (Previous year Rs. 568.600 millions) on
exercising of option by the holders thereoff.
b) Of the above
shares :
i] 745396 equity
shares were allotted as Bonus shares by way of capitalisation of General
Reserves.
ii] 62550 equity
shares being forfeited shares were reissued during 2001.
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 |
1871.700 |
1703.700 |
2254.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11340.100 |
8540.700 |
6500.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13211.800 |
10244.400 |
8755.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
48241.500 |
28330.500 |
18002.100 |
|
|
2] Unsecured Loans |
9431.600 |
5037.100 |
3442.900 |
|
|
TOTAL BORROWING |
57673.100 |
33367.600 |
21445.000 |
|
|
DEFERRED TAX LIABILITIES |
2104.800 |
1418.200 |
1001.000 |
|
|
Share Warrants |
1101.600 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
74091.300 |
45030.200 |
31201.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
28949.800 |
19753.200 |
11557.700 |
|
|
Capital work-in-progress |
9963.200 |
5888.900 |
7069.000 |
|
|
Incidental Expenditure during Construction |
0.000 |
195.900 |
115.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
6189.600 |
2194.900 |
397.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6875.800
|
4644.600
|
3581.500 |
|
|
Sundry Debtors |
6077.100
|
5445.200
|
3545.300 |
|
|
Cash & Bank Balances |
16737.400
|
7853.000
|
5330.300 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
4085.000
|
1983.800
|
1581.600 |
|
Total
Current Assets |
33775.300
|
19926.600
|
14038.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4421.700
|
2554.600
|
1713.500 |
|
|
Provisions |
364.900
|
374.700
|
263.300 |
|
Total
Current Liabilities |
4786.600
|
2929.300
|
1976.800 |
|
|
Net Current Assets |
28988.700
|
16997.300
|
12061.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
74091.300 |
45030.200 |
31201.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
21559.900 |
18102.000 |
14074.500 |
|
|
Increase In Stock of Finished Goods and Process Stocks |
1014.400 |
653.300 |
205.900 |
|
|
Other Income |
823.600 |
517.800 |
183.900 |
|
|
Total Income |
23397.900 |
19273.100 |
14464.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2975.900 |
2323.100 |
1540.000 |
|
|
Provision for Taxation |
989.300 |
676.100 |
447.900 |
|
|
Profit/(Loss) After Tax |
1986.600 |
1647.000 |
1092.100 |
|
|
|
|
|
|
|
|
Export Value |
9690.000 |
6081.700 |
3656.600 |
|
|
|
|
|
|
|
|
Import Value |
|
|
|
|
|
Raw Materials |
751.200 |
339.900 |
|
|
|
Stores & Spares |
90.600 |
41.200 |
|
|
|
Capital Goods |
3583.800 |
2787.700 |
|
|
|
|
4425.600 |
3168.800 |
2995.500 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchases of traded goods |
2986.200 |
984.100 |
218.800 |
|
|
Manufacturing and other expenses |
14497.900 |
13845.100 |
11232.900 |
|
|
Interest |
1318.300 |
890.400 |
667.800 |
|
|
Depreciation |
1619.600 |
1230.400 |
804.800 |
|
Total Expenditure |
20422.000 |
16950.000 |
12924.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
|
Type |
1st
Quarter |
|
Sales Turnover |
5434.400 |
|
Other Income |
10.100 |
|
Total Income |
5444.500 |
|
Total Expenditure |
4116.300 |
|
Operating Profit |
1328.200 |
|
Interest |
413.200 |
|
Gross Profit |
915.000 |
|
Depreciation |
488.100 |
|
Tax |
52.400 |
|
Reported PAT |
283.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
3.88 |
2.88 |
2.23 |
|
Long Term Debt-Equity Ratio |
3.39 |
2.42 |
1.77 |
|
Current Ratio |
2.25 |
2.08 |
2.19 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
0.77 |
0.99 |
1.28 |
|
Inventory |
3.80 |
4.52 |
4.03 |
|
Debtors |
3.80 |
4.14 |
3.84 |
|
Interest Cover Ratio |
2.23 |
2.64 |
2.97 |
|
Operating Profit Margin(%) |
32.06 |
26.74 |
21.51 |
|
Profit Before Interest And Tax
Margin(%) |
24.67 |
20.12 |
15.98 |
|
Cash Profit Margin(%) |
16.46 |
15.47 |
13.05 |
|
Adjusted Net Profit Margin(%) |
9.07 |
8.86 |
7.51 |
|
Return On Capital Employed(%) |
9.44 |
10.14 |
9.26 |
|
Return On Net Worth(%) |
16.94 |
17.9 |
14.49 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is one of the textile group and amongst the fastest growing
vertically integrated textile companies in India. They are offering world class
integrated textile solutions. They manufacture world-class home textiles,
apparel fabrics, garments and polyester yarns selling directly to
manufacturers, exporters, importers, retailers and brands the world over. Also,
they are in the business of Retail and Realty through their wholly owned
subsidiary company. The company is having their manufacturing facilities at
Silvassa in Dadra and Nagar Haveli, Thane and Navi Mumbai in Maharashtra and
Valsad and Vapi in Gujarat.
Subject was incorporated in the year 1986 with the name Alok Textile Industries
Private Limited. The company commenced their activities with the manufacture of
texturised yarn by setting up manufacturing facilities at Silvassa. In the year
1991, they commenced weaving operation at Bhiwandi in Thane. In the year 1993,
they became a puiblic limited company. In the year 1994, the company expanded
the weaving capacity to 50 cimmco looms in Thane and texturising capacity of 3
Nos Texturising machines in Silvasaa.
In the year 1995, they made a technical collaboration with Grabal, Albert
Grabher Gesellshaft mbH and Company of Austria for manufacture of embroidered
products through a joint venture company named Grabal Alok Impex Limited. In
the year 1996, they set up Knitting Division at Silvassa with 8 Machines and
state-of-the-art eco-friendly Process House at Navi Mumbai with 3
Stenter.
In the year 1998, the company modernised and expanded the weaving division with
24 Sulzer Projectile Looms at Silvassa and in the next year, they further expanded
to 28 Sulzer Projectile Looms. Also they completed the modernisation and
expansion of weaving project with 88 Air Jet/ Rapier Sulzer Looms at Silvassa
in the year 2002, and the processing project with 2 Stenters at Vapi in the
year 2003. In the same year, they set up a Garment Unit at Navi mumbai with 100
Stitching Machines.
In the year 2004, the company expanded the Texturising capacity to 30 machines,
Knitting capacity to 40 machines and Weaving capacity to 170 Air Jet/ Rapier
Looms. Also they forayed into Home Textiles for direct export. In the year
2006, they set up a new plant for knitted fabric at Vapi in Gujarat and
Partially Oriented Yarn plant at Silvassa.
The company was awarded Silver Trophy for fabric exports and Bronze Trophy for
made-ups exports by Texpocil for the financial year 2006. Also they got award
from the All India Exporters Chambers in recognition of role played by the
company in the development of exports of 'made ups'. They have got Certificate
of Excellence by Kohi's Department Stores for partnership and teamwork. They
have also got Supima license for use of their cotton in manufacture of woven
and knitted fabrics.
In the year 2007, the company has acquired 60% stake in Mileta a s, a company
based in the Czech Republic for manufacturing high end yarn dyed shirting
fabrics, handkerchiefs, table linen, batistes and damasks. The company has
signed an exclusive license agreement with AISLE 5 LLC, for their portfolio of
lifestyle brands like aworld, cotton + clay and natural worth. They started
operations in the retail segment namely H and A. The range of products includes
fabrics, garments, embroidered fabric, saris and terry towels. The company is
also in the process of setting of textile SEZ at Silvassa through a wholly owned
subsidiary.
The company has entered into Trademark License Agreement with Peacock Alley
Inc, USA, to sell their licensed products in India. The Company has entered
into a Tripartite Memorandum of Understanding with Union Nationale Des
Producteurs De Cotton Du Burkina Faso (UNPCB) and MAS Intimates (Pvt) Ltd for
supply of finished fabrics made out of organic and fair trade cotton for supply
of lingerie goods to a super brands on the USA. The company had bid for Joint
Ventures with National Textile Corporation Limited (NTC) for the revival of the
textile mills located at the New City of Bombay Manufacturing Mills, Mumbai and
Aurangabad Textile Mills, Aurangabad and for development of textile related
infrastructure therein.
In September 2007, the company has entered into an MOU with Zameen Organic
Private Limited for developing and promoting organic fair trade cotton. This
will ensure Fair price of seed cotton to the marginal cotton growers in
Vidarbha and Adilabad.
PERFORMANCE
During the
financial year, the Company recorded sales of Rs. 21704.100 millions and profit
before tax (from ordinary activities) of Rs.2539.600 millions, an increase of
18.95% and 27.70% respectively over the previous year. Including extraordinary
items, the Company’s profit before tax grew 28.10% to Rs. 2975.900 millions.
The Company’s exports (including incentives) increased 62.11%, from Rs.
6417.100 millions in 2006-07 to Rs. 10368.900 millions during the year, the
first time that the Company has crossed Rs.10000 millions in exports during a
financial year.
BUSINESS AND
OPERATIONS
The Company’s
businesses and operations are now in three broad areas: Textiles, Retail and
Realty. The Company believes that sustained focus in each of these areas would
unlock significant shareholder value over a period of time.
The textiles
business, which remains a part of the parent Company, will capitalise on
growing international and domestic demand for Indian textile products, both for
apparel and for home textiles. The Company has also initiated measures that
allow it to expand capacities by setting up subsidiaries and joint ventures,
especially in the high potential area of garmenting.
To capitalise on
opportunities in the growing retail segment, the Company has set up Alok Retail
(India) Limited, a wholly owned subsidiary, that would manage the domestic
retail initiatives through its ‘H and A’ stores, twenty of which were in
operation as on 31 March 2008. The Company proposes to expand this business to
a pan-India level within the current financial year.
Simultaneously,
among its international retail initiatives, the Company has invested in Grabal
Alok (UK) Limited (previously known as Hamsard 2353 Limited), a UK based
retailing company having 218 stores across England, Scotland and Wales,
offering value for money and quality fashion for women, men, girls, boys and
babies. After the acquisition, the stores are being refurbished and
repositioned as Store Twenty One to move up the value chain from a discount
retailer to a value retailer.
The Company,
through its wholly owned subsidiary, Alok Industries International Limited
(AIIL), signed an exclusive license agreement with Aisle 5, LLC with its
portfolio of brands like aworld, Cotton + Clay etc. for distribution of home
textile products to the US supermarket chains. This opens an exciting
opportunity for a very large and hitherto untapped distribution channel in one
of the largest home textile markets in the world.
The Indian realty
space offers exciting business opportunities, both for capital appreciation as
well as for securing a stream of revenue. To leverage these opportunities, your
Company has set up two wholly owned subsidiaries for its realty foray — Alok
Infrastructure Private Limited and Alok Land Holdings Private Limited. These subsidiaries
are currently involved in three projects, which have a total project cost of
approximately Rs. 20000 millions, which would be funded by a mixture of debt,
equity and internal accruals.
In addition, the
Company has entered into an Agreement with the National Textile Corporation
(NTC) to form a joint venture (JV) with 51% share of NTC and 49% of your
Company. The JV would undertake the development of New City Mills at Mumbai and
Aurangabad Textile Mills at Aurangabad, totalling 33.7 acres of land, where
garment units would be set up; the surplus land would be developed for textile
related activities.
More details about
the Company’s business structure and initiatives are contained in the
Management Discussion and Analysis.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Economic Overview
2007-08 was a year
characterised by the sustained performance of the Asian economies. Asia has
outperformed global expectations, in spite of the constraints brought about by
high oil prices. China reported 11.9% growth for calendar 2007 and 10.6% growth
for the first quarter of calendar 2008. India grew at 9% for 2007-08. The more
mature Asian economies have also grown rapidly. The growth numbers of India and
China, Singapore (6.7%), Hong Kong (7.1%), Malaysia (7.1%) and Thailand (6.1%)
clearly point to Asian demand being the driver for global growth. The US and
Euro Zone economies, on the other hand, lagged behind, due to the sub-prime
crisis creating a depressed home market and lower retail consumption, coupled
with inflation and sharply increasing oil prices.
This was the third
straight year when India witnessed 9% or above growth. The positive aspect of
India’s growth is the extent to which it has been driven by widespread domestic
consumer demand, which accounts for over 65% of GDP.
India is still
estimated to grow its GDP by around 8% for 2008-09, which will make it among
the fastest growing economies in the world for the fourth straight year. The
economy, however, is feeling some pressure, mainly on account of double digit
inflation (at about 12.4% at the end of August 2008) and high oil prices.
Government of India (GoI) has made inflation control a priority issue. The
other impeding factor — that of high global oil prices — also seems to be
moderating, after reaching a peak of US$ 137 per barrel. If oil prices moderate
further, growth prospects of the Indian economy seem even more positive.
Despite the Indian
Rupee appreciating against the US Dollar more or less throughout 2007-08,
Indian exports increased by nearly 23% to reach US$ 155 billion. According to
the RBI, India’s foreign exchange reserves as on end-March 2008 were at US$ 309
billion.
Textile Industry
Overview
The World Market
The global textile
trade (including clothing) is estimated to be around US$ 530 billion, with a
4.5% share of the world’s merchandise. World demand for apparels and textiles
is expected to reach US$ 700 billion by 2012, with
the US and Europe
continuing to be the dominant markets for textiles and apparel, though a
substantial portion of the incremental demand will be driven by the Asian
countries.
Textile capacities
in the developed economies have shrunk during the last few years, mainly due to
high production and labour costs. On the other hand, Asian countries like
India, China, Bangladesh, Vietnam and Cambodia have the advantages of
relatively abundant raw material supplies and low wage costs. Moreover, a
number of Asian manufacturers are now offering not only quality products at the
right time and price, but also value added design solutions to demanding
international customers. Europe is still a significant player; however, it has
seen its share decrease from 50% of the world market share to about 30% over
the last few years; this share is expected to reduce even further. Asian
textile manufacturers in general and Indian textile manufacturers in particular
are likely to capture more of the global market share in the coming years,
given their increasing technological capabilities, capacities to service large
volume orders and competitive pricing. Thus, over a period of time, the textile
manufacturing is going to be dominated by the Asian countries.
India
India is the
second largest producer of textiles and garments in the world and also the
second largest producer of cotton. The textiles sector is India’s second
largest employer, giving direct employment to over 35 million people and
providing for indirect employment to an additional 56 million people. It
contributes towards 15% of India’s exports and 4% of India’s GDP. The industry
also accounts for 14% of total industrial production.
The Indian
textiles industry is estimated at US$ 52 billion. Indian apparel and textiles
are exported to over a hundred countries and have reached US$ 19 billion in
2006-07.
THE INDIAN TEXTILE
INDUSTRY
·
Second largest producer of textiles and garments in the world – industry
size US$ 52 bln
·
Directly employs 35 million people
·
Contributes to 4% of Indian GDP
·
US$ 19 bln of Indian textiles are exported to over a hundred countries
·
Expected to have strong domestic demand growth
·
Government is actively encouraging investments in the textile sector through TUFS
The domestic
textile market, which had US$ 33 billion of sales in 2006-07, is expected to grow
at a CAGR of 10%, while exports are expected to grow at 19% CAGR. By 2012, the
industry is expected to be at US$ 110 billion, of which US$ 50 billion would be
in exports and US$ 60 billion would be domestic sales.
On the export
front, international retailers and private label brands are increasingly
looking at India as a viable and quality supply source. India’s design and
fashion abilities will add to its quest in becoming a destination of choice for
textiles. Speciality fabrics is also an area where there is potential for
export growth.
Indian exports
during 2007-08 were adversely impacted by a strong rupee. To mitigate this, GoI
has increased the amount of duty drawback on exports of textiles and apparels
by 3% (with retrospective effect from 1 April 2007), while also lowering the
rate on exports credits.
The domestic
textiles market is expected to show strong growth over the coming years, on
account of the following demand drivers.
·
Increased retail penetration. The share of organised
retailing is expected to increase from 3.5% to 8% by 2010 and textiles forms
40% of the retail market.
·
Higher annual disposable income levels. The average
household with annual income greater than Rs. 0.080 millions is expected to
reach 48% by 2010. Coupled with the fact that the urban population is due to
grow to 287 million by 2015 and that retailing growth focus is now shifting to
Tier 2 and Tier 3 cities, the demand for textile products is also expected to
grow substantially.
·
Changing demographic profile. An increase in the
proportion of working women, more nuclear families and a growth in the number
of earning people are all favourable indicators for increasing domestic textile
demand.
·
Increasing housing units and rapid growth of
the healthcare and hospitality sectors are expected to fuel demand for home
textiles and furnishing items in India.
There is, however,
a need for investment if demand projections are to be reached. The industry
will need to more than double its current production base to achieve its vision
targets. That translates to an investment of Rs. 1940000 millions from 2007 to
2012. It is estimated that projects totalling approximately Rs. 480000 millions
have been executed or are in progress since 2007. GoI, on its part, has encouraged
investments by extending the
Technology
Upgradation Funds Scheme (TUFS) to 2012 and it is expected that the industry
will take full advantage of this extension.
Company Performance: Highlights
2007-08 was another year of growth and profitability for subject (‘Alok’
or ‘the Company’). The Company has grown its topline, increased is pre-tax
operating profits and post-tax profits, with exports crossing the ‘Rs. 10000
millions milestone’ to reach Rs. 10368.900 millions.
Over the past few years, Subject has established itself as provider of
integrated solutions across the textile value chain. The Company has now made
its initial foray into the retail and realty business segments.
The stand-alone financial performance of subject for the year ended 31
March 2008 is highlighted below.
Financial
Highlights for Alok Industries Ltd. for the year ended 31 March 2008
·
Net Sales grew 18.95% over last year to reach Rs. 21704.100 millions.
·
Export Sales grew 61.58% over the last year’s figure (Rs. 6417.100 millions)
to reach Rs. 10368.900 millions. For the first time, the Company’s annual
exports exceeded Rs. 10000 millions.
·
Operating Earnings before Interest, Depreciation, Taxes and Amortisation
(Operating EBIDTA), at Rs. 5477.500 millions, was higher by 33.28% than the
previous year’s figures of Rs. 4109.600 millions. Taking gross extraordinary
income into account, EBIDTA stood at Rs. 5913.800 millions, a 33.07% increase
over the previous year.
·
Operating Profit before TAX (Operating PBT) for the year ended 31 March
2008 was Rs. 2539.600 millions, reflecting an improvement of 27.70% over
2006-07 (Rs. 1988.800 millions). PBT including non-operating income improved by
28.10% over last year to touch Rs. 2975.900 millions
·
Operating Profit after TAXES (Operating PAT) grew 24.23% compared to the
last year to reach Rs. 1677.300 millions (2006-07: Rs. 1350.200 millions).
After factoring extraordinary income (net of tax), PAT for the year was at Rs.
1986.600 millions — an increase of 20.62% over the previous year’s figure (Rs.
1647.000 millions).
·
Earning per Share (EPS) was Rs.11.40 during the year (the previous
year’s EPS was Rs. 9.70). Return on Net Worth (RONW) for the year was 11.72%.
·
Book Value per Share was Rs. 70.59 as on 31 March 2008 (Rs. 60.13 as on
31 March 2007) Note: Previous years’ figures have been regrouped wherever
necessary to bring them in line with the current year’s figures
OPERATIONS: TEXTILES
Overview
Subject has five
major divisions — Cotton Spinning, Apparel Fabric, Home Textiles, Garments and
POY and Texturising. Apart from these divisions, the Company also has retail
operations.
Subject’s presence
in the entire textile value chain (cotton procurement, yarn spinning, knitting,
weaving and texturising and preparing finished home textiles) has enabled the
Company to offer premium products at extremely competitive prices and thus gain
market share.
During the year,
the Company had sales of Rs. 21704.100 millions, of which domestic sales
contributed Rs. 11335.200 millions and exports were Rs. 10368.900 millions.
Exports comprised of 47.77% of the Company’s sales, compared to 35.17% during
2006-07.
Exports
Subject has always
recognised that if it is to become a significant global player, it must be able
to produce textiles that are sought after all over the world. Developing the
exports market has been a key area of focus for the Company, especially after
the quota system had been abolished. In 2003-04, the Company’s exports crossed
Rs. 1000 millions for the first time and, in a span of five years, Subject’s
exports have reached Rs. 10368.900 millions in 2007-08.
Today, exports
contributes about 48% of the Company’s total share of business up from about
10% in 2003-04. The entire range of Subject’s products is now sold to over 56
countries. Through its constant focus on quality, design and adherence to tight
delivery schedules, the Company today supplies to most of the global market
leaders, to whom it has become a ‘supplier of choice’. Subject’s exports journey
over the past six years.
Although the USA
remains an important exports market for Alok, as indeed it is for every textile
exporting entity, the Company recognises that an over-dependence on one market
poses considerable risk. Thus, over the past few years, Subject has been
exploring business opportunities in Europe, South-East Asia, Africa and South
America.
Wovens
Subject has 639
apparel width weaving looms, which can produce 45.20 million metres of apparel
width fabrics per annum. Subject’s textile processing units at Navi Mumbai and
Vapi have 82.50 million metres of apparel-width weaving processing capacity
through 2 continuous lines and 1 batch line. The product range includes all
types of weaves — from coarse to superfine including plain, twill, drill,
jacquard, satin and dobby, as well as value-added yarn dyed fabrics and trouser
fabrics.
During the year,
sales of woven apparel fabrics showed a marginal decline of 6.06% to reach Rs. 7546.700
millions. However, export sales of woven fabrics increased (from Rs. 588.000
millions in 2006-07 to Rs. 1085.900 millions in 2007-08) through the addition
of new international customers. The increased export of apparel fabric to
overseas customers is an encouraging sign and the Company proposes to further
grow this segment in the near future.
The Company has
moved up the value chain, making ‘finer counts’ yarn dyed fabric that is used
for top-end shirting. Moreover, bottom weight production (for the manufacture
of trousers) has also increased, with finishes such as peach finish,
wrinkle-free finish and stain and oil-free finishes.
Subject has
started manufacturing organic cotton products, which are now in demand by large
department stores in the USA and Europe
Subject has
increased focus on manufacturing speciality fabrics that are targeted towards
institutional customers like the armed forces, aviation companies, fire
departments, hospitals, the hospitality sector and the infrastructure industry.
Among these are:
High visibility fabrics , Fire retardant fabrics, Water repellent and soil
release,Infra-red resistant fabrics,Water resistant fabrics,Anti – bacterial
fabrics,Insect repellent fabrics,Aroma finish fabrics etc.
Knitting
The Company has
158 knitting machines, capable of producing 16,800 TPA. The Company also has
knit processing capacity of equivalent tonnage. During the year, knitted
apparel fabrics increased by 59.09% over last year’s figures to reach Rs.
1257.000 millions. The growth has been on account of both volume growth and
better realisation. This division’s share of business also increased from 4.33%
to 5.79%. Exports growth has been encouraging, going up from Rs. 254.300
millions during the previous year to Rs. 632.400 millions in 2007-08.
Subject has
increased its range in knits to encompass high value-add yarn dyed knits and
fleece, which are used for sweatshirts.
Mileta
As mentioned in
last year’s Management Discussion and Analysis, Subject acquired 60% of the
equity of Mileta, a ‘top of the line’ integrated textile entity situated in the
Czech Republic in April 2007. The company manufactures handkerchiefs, shirting
fabrics, table linen and bed linen, which it sells to various countries in
Europe, the Americas, Africa and Asia.
Through the
acquisition of Mileta, Subject has also acquired brands such as Mileta, Erba,
Cottonova, Lord Nelson and Wall Street, some of which the Company has launched
in the Indian markets through its retail outlets.
For the year ended
31 March 2008, Mileta had revenues of Czech Kronor (CKR) 611 million (Rs.
1522.500 millions) .
Subject’s
acquisition of Mileta has benefited the Company by way of technology inputs
from the Czech entity, especially in value added yarn dyed fabrics. Given that
this is a focus area for company, the synergies are expected to grow even more.
Subsequently during the year FY 2008-09. Subject has acquired an additional
19.80% to take its stake to 79.80%.
Home Textiles
Subject has the
following capacities in the manufacture of wider width home textile fabrics.
·
598 wider width looms with a capacity to produce 45.20 million metres
per annum.
·
2 continuous lines for woven processing, capable of producing 60.00
million metres per annum.
·
907 machines that can produce up to 8.52 million pieces of made-ups.
2007-08 witnessed
a 16.27% growth in sales in home textiles — from Rs. 3345.900 millions to Rs.
3890.200 millions. The entire sales of home textiles products are to overseas
markets, where Subject’s products are sold to some of the most discerning
customers, including large retail chains and private labels.The Company
exported to new markets in South America, notably Brazil. Looking to future
highgrowth areas, the Company is also exploring possibilities of expanding its
European market, especially in the area of high value added luxury bed linen
products.
During the year,
Subject developed new products in terms of high end luxury bed linen and home
textile products from organic cotton, which are supplied to upmarket retail
overseas chains and private labels. The company also plans to start supplying
to some of the domestic retailers in this segment.
With sustained
demand for Subject’s home textiles in the overseas markets, the Company has
focused on excellence in execution, targeting 100% on-time delivery for all
major supplies. Subject’s terry towels facility, which is likely to start from
the third quarter of 2008-09, would also add to topline.
Garments
Subject has 1,636
machines capable of producing 11.86 million pieces of garments during the year.
In 2007-08, the company added 723 machines, with capacity for 3.86 million
garment pieces. In 2007-08, Subject’s garments division’s sales (including
outsourced sales) was Rs.995.600 millions . The division added significant
international garment retailers from Turkey, Italy, Switzerland and the USA
among its customers.
Alok Apparels
Private Limited
During the year,
Subject formed Alok Apparels Private
Limited as its wholly subsidiary to enhance overall garment capacity. It
would produce garments for the domestic and export market in line with
production efficiencies and quality control parameters of Alok.
Alok Apparels has
set up a garmenting unit at Silvassa and achieved sales of Rs. 7.600 millions
during 2007-08.
FIXED ASSESTS
· Freehold Land
· Leasehold land
· Factory Building
· Office premises
· Plant and machinery
· Computer and Peripherals
· Office equipments
· Furniture and fittings
· Vehicles
· Tools and Equipment
The company is in
trade terms with:
· Embassy Silicones (India) Private Limited
· Happy Hardware
· Keshari Enterprises
· Sumedha Fiscal Services Limited
· B R Corporation
· Atmaram Maneklal Industries Limited
· Bindu Synthetics Limited, Silvassa, Vapi, Gujarat
· Professional
· Esha Exim Private Limited
· Century Textile and Industries Limited
· Century Bhavan
Contact Person : Mr. Sultan
· Bharat Petroleum Corporation Limited, Chembur
Contact Person : Mr. M. L. Mahadevan
Tel No. 91-22-25543493
· Ciba Speciality Chemical (India) Limited
Contact Person : Mr. S. Kumar
· Vardhaman Spinning Limited
Contact Person : Mr. B. K. Jain
Tel. No. 91-22-28578823News:
AS PER WEBSITE
Origin and Growth
Established in 1986 as a private limited company, the company began with texturising of yarn and steadily expanded into weaving, knitting, processing, home textiles and readymade garments. The company also controls an extensive embroidery operation through its sister concern, Grabal Alok Impex Limited
In 1993, they became a public limited company. Since then they
have continued to increase the scale of their operations and the range of their
activities. Today, the company is amongst the A Group listed companies on
India's leading stock exchanges.
In less than two decades, the company has grown to become a
diversified manufacturer of world-class home textiles, apparel fabrics,
garments and polyester yarns selling directly to manufacturers, exporters,
importers, retailers and brands the world over. With the sales turnover of
around Rs. 12500 Millions in F.Y. 2004-05, The company is amongst the fastest
growing vertically integrated textile companies in India.
Infrastructure
The company is fully geared for innovation and product
developments… manufacturing and quality assurance. Spread over 6 locations in
Navi Mumbai, Vapi and Silvassa, their major plants are backed by 100%
captive power, global standard effluent treatment units, high standard
facilities for their manufacturing, product development and marketing teams,
enabling us meet their customers' expectations in terms of precision, quality,
in-time delivery, environmental and social concerns.
Total Quality Assurance
A huge investment in their sophisticated, ISO 9001:2000 compliant world-class testing lab is the reflection of The company’s commitment, confidence as well as philosophy towards maintaining global standards.
Passionate Quality Management has endeared the company to its highly demanding customers. They have empowered themselves with one of the finest in-house textile testing laboratories in India, equipped with the world’s best testing equipment from Datacolour, Macbeth, Werner Mathis and James Heal.
Right from the inputs like yarn, dyestuffs and chemicals, every batch of fabric is tested for weaving and knitting standards, colour fastness under different conditions, strength, consistency, and all pre-defined parameters of their own and of course, their customers.
Board of Directors
Mr. Ashok Jiwrajka - Executive Chairman
Commerce graduate with 29 years of experience in the marketing of
textiles.Responsible for the marketing and exports of the company.
Mr. Dilip Jiwrajka -
Managing Director Science graduate with a diploma in
Business Entrepreneurship and Management. 25 years of experience in
the manufacturing and trading of fabric for the garment industry. Responsible for
the weaving and processing divisions and overseeing the strategic planning,
administration, finance functions and overall working of the
company.
Mr. Surendra Jiwrajka
- Jt. Managing Director Commerce graduate with 23 years of
experience in the trading and manufacturing of yarn, implementation of projects
and marketing of knitted fabrics/Texturised yarn. Responsible for the
manufacturing, marketing and purchase functions of the yarn and knitting
divisions. Overseeing the implementation of projects of the
company.
Mr. Chandrakumar Bubna - Executive Director Mr.
Bubna has over two decades of experience in textile marketing. He helps
in formulating the company’s sales and marketing strategy and overseas its
implementation in the Northern region of India.
Mr. Ashok Rajani - Director Mr.
Rajani is the former President of The Clothing Manufacturers’ Association
of India and the Vice-President, Western Region, Apparel Export Promotion
Council, the apex body of the Indian garment export industry.
Mr. K.R. Modi - Director A senior partner in Kanga and
Company, one of Mumbai’s leading law firms. He is well-versed in issues
relating to company law, property matters and other allied acts.
Mr. K.J. Punnathara - Director Mr.
Punnathara, Executive Director(Estates), Life Insurance Corporation of India is
their nominee on the board.
Mr. K.C. Jani - Director Mr Jani, General Manager, IDBI
is their nominee on the board.
Mr. A.K. Bhan - Director Mr. Bhan, is the nominee
director of IFCI Limited
Mr. R.J. Kamath - Director Mr. Kamath, is the nominee
director of Industrial Development Bank of India Limited.
Mr. S. Sridhar - Director
Mr. Sridhar, is the nominee director of Export Import Bank of India.
Mr. Tim Ingram - Director Mr. Ingram, is presently the
Chief Executive of Caledonia Investments Plc., a London based investment
company. He has wide experience in the fields of international banking and
finance.
Major Milestones
|
FY 1989 |
Setting up manufacturing facilities for Texturising at Silvassa.
(1 no. Texturising machine). |
|
FY 1991 |
Commencement of weaving operation at Bhiwandi, District
Thane. |
|
FY 1993 |
Conversion into Public Limited Company and IPO of 22,50,000
equity shares of Rs.10/- each for cash at a premium of Rs.10/- each per share
aggregating Rs. 45 Millions to part finance Weaving capacity (50 nos. Cimmco
looms) at Bhiwandi and expansion of Texturising capacity (1 no. Texturising
machine) at Silvassa. |
|
FY 1994 |
Expansion of weaving capacity (50 Cimmco Looms) at
Bhiwandi and texturising capacity (3 nos. Texturising machines) at
Silvassa. |
|
|
Turnover of Rs. 500 Millions achieved. |
|
FY 1995 |
Financial and Technical collaboration with Grabal, Albert
Grabher Gesellshaft mbH and Co of Austria for manufacture of embroidered
products through a Joint Venture Company viz. Grabal Alok Impex Limited |
|
FY 1996 |
Setting up of Knitting Division at Silvassa (8 machines)
and state-of-the-art eco-friendly Process House at Navi Mumbai (3
Stenter). |
|
|
Turn over of Rs.1000 Millions achieved. |
|
FY 1997 |
Expansion of Texturising capacity (5 nos. Texturising
machines) at Silvassa. |
|
|
Turn over of Rs. 1500 Millions achieved. |
|
|
Completion of Rights Issue of 7490192/- equity shares of
Rs.10/- each at a premium of Rs.10/- per share aggregating to R.149.804 Millions
to part-finance the process house and knitting projects. |
|
FY 1998 |
Modernization and expansion of weaving (24 Sulzer
Projectile Looms) at Silvassa. |
|
|
Private placement of 9142700/- equity shares of Rs.10/-
each at a premium of Rs.7.50 per share aggregating to Rs.160 Millions with
FIIs. |
|
FY 1999 |
Expansion of weaving (28 Sulzer Projectile Looms) and
knitting capacities (20 machines) at Silvassa. |
|
|
Turn over of Rs. 2500 Millions achieved. |
|
FY 2000 |
Turnover surpasses Rs. 3500 Millions. |
|
FY 2001 |
Undertaken expansion of weaving and processing capacities
under TUFS at an aggregate cost of Rs.1900 Millions. |
|
|
Foray into the domestic ready-made Garments sector (OWL
Brand). |
|
FY 2002 |
Rights Issue of 5670098/- FCDS of Rs.90/- each aggregating
to Rs.510.300 Millions to part-finance the weaving and processing
projects. |
|
|
Completion of Modernisation and Expansion of weaving
project (88 Air Jet / Rapier Sulzer Looms) at Silvassa. |
|
|
Expansion of knitting capacities (28 machines) at
Silvassa. |
|
|
Turnover surpasses Rs. 5500 Millions. |
|
FY 2003 |
“Export Trading House” Status awarded. |
|
|
Completion of Modernisation and Expansion of processing project
at Vapi. (2 Stenters). |
|
|
Expansion of Texturising Capacity at Silvassa (10
machines). |
|
|
Setting Up of Garment Unit at Navi Mumbai (100 stitching
machines). |
|
|
Turnover Surpasses Rs. 7500 Millions. |
|
FY 2004 |
Turnover surpasses Rs.10000 Millions. (Exports exceeded
Rs.1000 Millions). |
|
|
Expansion of Texturising Capacity at Silvassa (30
machines). |
|
|
Expansion of Knitting Capacity at Silvassa (40
machines). |
|
|
Expansion of Weaving Capacity at Silvassa (170 Airjet /
Rapier Looms). |
|
|
Foray in to Home Textiles (Bed Sheets) for Direct
Exports. |
|
|
Concluded Mezzanine Finance Transaction of Rs.1010 Millions
(Rs.680 Millions Redeemable Preference Shares and 330 Millions warrants)
arranged by CLSA. |
|
|
Preferential allotment of 538890 Equity shares of Rs.10/-
each at premium of Rs.55.67 to Body Corporate. |
|
FY 2005 |
Completed FCCB issued of USD 35 mn (Rs. 1530 Millions)
comprising of 1400 Bonds of USD 25000 each. Out of these bonds, 1380 bonds
have been converted into 31870334 equity shares of Rs. 10/- each at an
average price of Rs. 49.68 per share. The proceeds of the issue are used for
augmenting long term margin for working capital, repayment of debt and normal
capex. |
|
|
Preferential allotment of 11311400 Equity shares of
Rs.10/- each at premium of Rs.51/- per share (promoters 5573700 and IL and FS
5737700) aggregating to Rs. 690 Millions. The proceeds of the same are used
to part finance the expansion programme of the Company. |
|
|
Conversion of 1450000 OFCDs (part) issued to LIC into
2604634 equity shares of Rs. 10/- each at a premium of Rs.45.67 per
share. |
|
|
Exports exceeded Rs. 3000 Millions. |
|
|
Expansion of Weaving Capacity at Silvassa (170 Airjet /
Rapier Looms). |
|
FY 2006 |
Texprocil Silver Trophy for 2nd Highest export
award in the Manufacturer Exporter – Made ups Category. |
|
|
Completed FCCB issue of USD 70 mn about Rs. 3062.500
Millions (Assumed price 1 USD=43.75) in May and June 2005. |
|
|
Conversion of balance 1450000 OFCDs issued to LIC into
2604634 equity shares of Rs. 10/- each at a premium of Rs.45.67 per share in
June 2005. |
|
|
Conversion of 5966400 warrants into 5966400 equity shares
of Rs. 10 each for cash at a premium of Rs. 45.67 per share by Niraj Realtors
and Shares Private Limited (purchased from TAD (Mauritius) Limited .) in the
month of August 2005. |
|
|
Completion of wider width weaving and processing under Rs.
10700 Millions project in October 2005. |
|
|
Setting up of new plant for processing of knitted fabric
at Vapi and POY plant at Silvassa. |
ATED TEXTILE SOLUTIONS
MEDIA
RELEASE
Alok Industries
FY08 net sales up by 18.34% at Rs 21592.500 millions
PAT up by 23.79%
at Rs. 1673.400 millions
Alok Industries Limited, one of the leading integrated
textile companies in India, today reported a Net Sales of Rs 7247.900 millions
for the quarter ended March 31, 2008, a jump of 26.25% as against Rs 5740.800
millions posted in the same period of the last fiscal.
Operating Net Profit for the fourth quarter stood at Rs 609.800
millions, a growth of 24.45% as compared to Rs 490.000 millions posted in the
same period of last year. The operating margin for Q4 FY08 was at 24.89% as
against 23.34% recorded in Q4 FY 07.
Net sales for the year ended March 31, 2008 grew by 18.34%
to Rs 21592.500 millions compared to Rs 18246.800 millions in the previous
year, while operating net profit for the year ended March 31, 2008 rose by
23.79% to Rs 1673.400 millions, as against Rs 1351.800 millions posted in the
same period of last fiscal. Earnings Per Share (EPS) for FY08 worked out to Rs
11.51 as compared to Rs 9.70 for the same period last fiscal.
Export Sales for the fourth quarter stood at Rs 3854.500
millions, a growth of 50.16% as compared to Rs 2566.900 millions posted in the same
period of last year. The figure of Export Sales for 2007-08 rose by 59.87% to
Rs 10258.700 millions as compared to Rs 6417.100 millions in 2006-07.
Commenting on the results, Mr. Dilip Jiwrajka, Managing
Director, Alok Industries Limited said, “It is indeed a gratifying feeling to
have record export growth in a year when the rupee was in an appreciation mode
and generally testing conditions had set in towards the latter half of the
year. All of which goes to prove that if one has the right size, right product,
right quality and right price, then most challenges can be surmounted. We will
consolidate operations this year and enhance efficiencies and endeavor to
surpass expectations. In the course of last year, we also foot printed the real
estate sector and expect to generate reasonable returns from this sector in the
current fiscal.”
Alok’s Phase III and IV projects are progressing
satisfactorily while its joint venture with the National Textile Corporation
for two mills in Mumbai and Aurangabad is making satisfactory headway.
Alok’s real estate ventures are moving smoothly and its
financing plans are also nearing completion with its merchant bankers hopeful
of clinching a major deal shortly.
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 exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.72 |
|
UK Pound |
1 |
Rs.82.17 |
|
Euro |
1 |
Rs.65.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|