MIRA
INFORM REPORT
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Report Date : |
17.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
APAR INDUSTRIES LIMITED |
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Formerly Known As : |
GUJARAT APAR POLYMERS |
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Registered Office : |
301 Panorama Complex, R.C.
Dutt Road, Vadodara – 390007, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
28.09.1989 |
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Com. Reg. No.: |
04-12802 |
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CIN No.: [Company
Identification No.] |
L91110GJ1989PLC012802 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDA01335F /
BRDA01312D / BRDA00836D |
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Legal Form : |
A Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of oil well parts, fuel tank liners, fuel
hoses, gaskets, packing oil seals and other oil-resistant applications. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 14000000 |
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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 diversified company having satisfactory track. Directors are qualified, respectable and
resourceful industrialists. Their trade relations are fair. Financial position
is satisfactory. The company is improving its performance. Payments are
usually correct and as per commitments. The company can
be considered normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office
: |
301, Panorama
Complex, R. C. Dutt Road, Vadodara – 390007, Gujarat, India |
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Tel. No.: |
91-265-2481332/
2481536/ 2481737/ 2481993/ 2331935/ 2323175/ 2339906 |
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Fax No.: |
91-265-2481238/
2339905 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Apar House,
Corporate Park, Sion-Trombay Road, Chembur, Mumbai – 400071, Maharashtra,
India |
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Tel. No.: |
91-22-25242371-76 |
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Fax No.: |
91-22-25246326 |
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E-Mail : |
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Administrative Office: |
Village Dungi Taluka Valla Near Ankleshwar Baruch, Gujarat, India |
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Factory : |
· Special Oil Refinery 1. Dharmsinh Desai Marg, Muhul Trombay, Mumbai – 400 074, Maharashtra,
India 2. Silvassa, Tamilnadu, India · A#18 TTC MIDC Industrial Area, Near Rabale Tel Exchange, Thane Belapur Road, Thane – 400 701, Maharashtra, India · Polymers Division Village Dungri, Taluka Valia, District Bharuch – 393 135, Gujarat Trombay, Mumbai, Maharashtra, India · Dharmsihn Desai Industrial Park, Dharmsinh Desai Marg, Opp “D” Cabin, Chhani Road, Vadodara – 390 002, Gujarat, India · Dharmsinh Desai Park, Taluka Savli, Bahutha – 391 775, Dist. Vadodara, Gujarat, India |
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Branches : |
Sales offices at
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DIRECTORS
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Name : |
Dr. Narendra D.
Desai |
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Designation : |
Chairman and
Managing Director |
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Date of
Birth/Age : |
62 Years |
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Qualification
: |
B.Sc. (Hons),
London, M.S. (Ele. Engg.), Ph.D., Penn., USA, Sigma XI, A.A.M.I.E.E. |
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Experience : |
44 years |
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Date of
Appointment : |
28.09.1989 |
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Name : |
Mr. Kushal N.
Desai |
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Designation : |
Joint Managing
Director |
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Date of
Birth/Age : |
36 years |
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Qualification
: |
B.Sc. Hons.,
(Ele. Engg.) USA, B.S. Eco. Hons., (Wharton), USA |
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Experience : |
13 years |
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Date of
Appointment : |
24.03.1999 |
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Previous
Employment |
GE Lighting
(India) Limited – President |
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Name : |
Mr. C. N. Desai |
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Designation : |
Executive
Director |
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Date of
Birth/Age : |
15.07.1971 |
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Qualification
: |
B.Sc (Hons.) (Chem.
Engg.) USA, B.S. Eco. (Hons.) (Wharton), USA |
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Experience : |
8 Years |
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Date of
Appointment : |
29.05.1993 |
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Other
Directorships:- |
Apar Technologies
Limited Apar Masat
Conductors Limited |
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Name : |
Mr. N. K.
Thingalaya |
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Designation : |
Director |
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Date of
Birth/Age : |
04.11.1937 |
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Qualification
: |
Ph. D.
(Economics) |
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Date of
Appointment : |
27.07.2001 |
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Other
Directorships:- |
Canbank
Investment Management Services
Limited |
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Name : |
Mr. F. B. Virani |
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Designation : |
Director |
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Date of
Birth/Age : |
26.06.1945 |
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Qualification
: |
B. E. (Chemical
Engineering), M. S. (Chemical Engineering) (USA), MBA (USA) |
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Date of
Appointment : |
27.07.2001 |
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Other
Directorships:- |
Jaiprakash Hydro
Power Limited |
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Name : |
Mr. V. A. Gore |
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Designation : |
Director |
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Name : |
Mr. V. D. Shinde |
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Designation : |
Nominee of IDBI
(w.e.f. Secretary 22.02.2002) |
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Name : |
Mr. M. M. Patel |
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Designation : |
Director
(Polymers) |
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Name : |
Mr. H. N. Shah |
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Designation : |
Director (w.e.f.
27.09.2002) |
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Name : |
Mr. M. N. Kamat |
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Designation : |
Nominee of IDBI |
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Name : |
Mr. Richard Owen Pyvis |
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Designation : |
Director |
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Name : |
Ms. Josephine Price |
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Designation : |
Alternate to Mr. Richard Owen Pyvis |
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Name : |
Mr. D. C. Patel |
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Designation : |
Company Secretary
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Name : |
Mr. Gary Ng Jit
Meng |
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Designation : |
Alternate to Ms. Josephine Price |
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AUDIT COMMITTEE |
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KEY EXECUTIVES
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Name : |
Mr. D. C. Patel |
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Designation : |
Company Secretary
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Name : |
Mr. Sanjaya
Kunder |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters / Persons Acting In Concert |
19393441 |
59.97% |
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Banks, Financial Institutions and Insurance Companies |
18118 |
0.06% |
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Mutual Funds |
2990383 |
9.25% |
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Foreign Institutional Investors |
1161562 |
3.59% |
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NRIs / OCBs |
82827 |
0.26% |
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Corporate Bodies |
1254654 |
3.88% |
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Residents Individuals |
2840409 |
8.78% |
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Foreign Investors (Shinny Limited, Mauritius – CLSA Group) |
4594637 |
14.21% |
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Total
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32336031 |
100.00% |
BUSINESS DETAILS
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Line of
Business : |
Manufacture of oil well parts, fuel tank liners, fuel
hoses, gaskets, packing oil seals and other oil-resistant applications. |
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Products : |
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PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Transformer Oils |
MT |
99500 |
155000 |
90748 |
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KL |
117978 |
for various types of oils covered in (ii)
and for other oils for which the company is holding registration |
-- |
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Refrigeration / Electric Oils |
MT |
2000 |
-- |
(-) |
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Special Grade Pharmaceutical Oils |
MT |
22250 |
-- |
25398 |
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KL |
26807 |
-- |
-- |
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Textiles Oils |
MT |
1000 |
-- |
-- |
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KL |
1163 |
-- |
-- |
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Rolling Mill Oils |
MT |
1000 |
-- |
-- |
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KL |
1227 |
-- |
-- |
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Other Specialties Oils (including R. P. Oils) |
MT |
159115 |
-- |
59049 |
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AAC, AAAC and ACSR Conductors |
MT |
124800 |
67242 |
48725 |
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Aluminium Rods Suitable for further manufacture of ACSR /AAC /AAAC |
MT |
96000 |
37800 |
33095 |
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Synthetic Rubber (NBR / HSR), Lattices and Polyblend |
MT |
12000 |
16275 |
14355 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
2000 |
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Bankers : |
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Facilities : |
Notes: a) The Cash Credit/Working Capital Demand
Loans from banks are secured by: (i) Hypothecation of specified stocks and
specified book debts. (ii) Joint mortgage of specified fixed
assets ranking second and subsequent in point of priority to the mortgage
created in favour of financial institutions for term loans. b) Term Loans from Bank amounting to
Rs.130.620 millions are secured by an exclusive charge by way of
hypothecation of certain items of plant and machinery procured/to be procured
from the proceeds of the said loan. c) Term Loan from a Financial Institution
are secured by : (i) First charge by way of equitable
mortgage of the Company's specified immovable properties both present and
future and first charge * by way of hypothecation of the Company's
specified movable properties (save and except book debts) including movable
machineries, spares and tools and accessories, present and future, subject to
prior charges * In favour of Company's bankers on specified
movables for securing borrowings for working capital requirements. (ii) First charge by way of hypothecation
of all movable properties acquired out of the proceeds of the concerned
loans. d) Cash Credit/Working Capital Demand
Loans/Term Loans from Financial Institutions referred to in (a) and (c) above
are further secured by certain immovable properties of Apar Corporation
Private Limited, a related party. e) Loans amounting to Rs.726.133 millions
included in item No. (1) And (2) are, in addition to the securities specified
above, secured by personal guarantee of one or more Directors. f) The Sales Tax Deferment loan represents
sales tax collected on sales and not paid pursuant to the Sales Tax Deferment
facility. This loan is secured by joint mortgage of specified fixed assets
ranking on pari passu basis with charges created as per (c) Above and is repayable in 5 annual
installments of Rs.1.114 millions each. g) Loans under item 1(ii), 2, 3 and 4
include amounts repayable within a year Rs.4.136 millions (Previous year
Rs.23.909 millions) denotes charge created/to be created.
Notes: 1) Loans indicated in 1, 2 and 3 above
includes amount of Rs.110.638 millions (Previous year Rs.138.215 millions)
payable within a year. Loans included at 4 and 5 are repayable at call. 2)
Loans indicated in 2 above are secured by personal guarantee of one or more
Directors. |
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Banking Relations : |
Good |
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Auditors : |
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Name: |
RSM and Company Chartered
Accountants |
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Address: |
Mumbai,
Maharashtra, India |
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Joint Venture : |
Apar Chematak Lubricants Limited |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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91998750 |
Equity Shares |
Rs.10/- each |
Rs.919.987 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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32340000 |
Equity Shares |
Rs.10/- each |
Rs.323.400
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
323.400 |
323.360 |
845.566 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2436.100 |
1789.458 |
959.945 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2759.500 |
2112.818 |
1805.511 |
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LOAN FUNDS |
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1] Secured Loans |
685.500 |
857.493 |
554.013 |
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2] Unsecured Loans |
204.400 |
470.207 |
502.422 |
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TOTAL BORROWING |
889.900 |
1327.700 |
1056.435 |
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DEFERRED TAX LIABILITIES |
0.000 |
139.300 |
135.307 |
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TOTAL |
3649.400 |
3579.818 |
2997.253 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1066.800 |
1602.938 |
1025.962 |
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Capital work-in-progress |
32.800 |
0.000 |
122.962 |
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INVESTMENT |
413.000 |
18.795 |
6.326 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2674.900
|
2496.602
|
2333.143
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Sundry Debtors |
3879.100
|
3812.225
|
2606.404
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Cash & Bank Balances |
4853.800
|
769.914
|
1465.708
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Other Current Assets |
0.000
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0.000
|
0.731
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Loans & Advances |
1292.100
|
593.463
|
539.757
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Total
Current Assets |
12699.900
|
7672.204
|
6945.743 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
10412.000
|
5665.071
|
5076.032
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Provisions |
180.100
|
91.573
|
79.237
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Total
Current Liabilities |
10592.100
|
5756.644
|
5155.269 |
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Net Current Assets |
2107.800
|
1915.560
|
1790.474
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MISCELLANEOUS EXPENSES |
29.000 |
42.525 |
51.529 |
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TOTAL |
3649.400 |
3579.818 |
2997.253 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
18753.000 |
14687.612 |
10910.281 |
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Other Income |
697.400 |
43.296 |
43.109 |
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Total Income |
19450.400 |
14730.908 |
10953.390 |
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Profit/(Loss) Before Tax |
1025.800 |
622.177 |
505.659 |
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Provision for Taxation |
171.100 |
162.446 |
105.971 |
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Profit/(Loss) After Tax |
854.700 |
459.731 |
399.688 |
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Export Value
|
NA |
3642.883 |
2232.318 |
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Import Value
|
NA |
7502.936 |
5920.658 |
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Expenditures : |
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Raw Materials |
13673.000 |
NA |
NA |
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Operating and Other Expenses |
3012.500 |
13897.559 |
10397.777 |
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Increase/(Decrease) in Finished Goods |
(186.200) |
[159.317] |
[335.359] |
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Interest |
592.400 |
353.766 |
202.351 |
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Depreciation & Amortization |
138.900 |
100.155 |
86.353 |
|
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Pre Operative Expenses |
1194.000 |
[12.367] |
0.000 |
|
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Exchange Rate Difference |
0.000 |
[71.065] |
79.180 |
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Total Expenditure |
18424.600 |
14108.731 |
10430.302 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2008 1st
Quarterly |
|
Type
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|
|
|
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Sales Turnover |
|
|
5397.400 |
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Other Income |
|
|
6.000 |
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Total Income |
|
|
5403.400 |
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Total Expenditure |
|
|
5087.900 |
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Operating Profit |
|
|
315.500 |
|
Interest |
|
|
34.000 |
|
Gross Profit |
|
|
281.500 |
|
Depreciation |
|
|
25.400 |
|
Tax |
|
|
59.000 |
|
Reported PAT |
|
|
191.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.46 |
0.61 |
0.92 |
|
Long Term Debt-Equity Ratio |
0.14 |
0.29 |
0.47 |
|
Current Ratio |
1.13 |
1.18 |
1.19 |
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TURNOVER RATIOS |
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Fixed Assets |
10.10 |
8.01 |
7.00 |
|
Inventory |
7.25 |
6.86 |
7.09 |
|
Debtors |
4.88 |
5.16 |
5.40 |
|
Interest Cover Ratio |
2.13 |
2.19 |
2.40 |
|
Operating Profit Margin(%) |
7.46 |
7.51 |
7.73 |
|
Profit Before Interest And Tax Margin(%) |
6.72 |
6.90 |
7.03 |
|
Cash Profit Margin(%) |
3.85 |
3.38 |
3.94 |
|
Adjusted Net Profit Margin(%) |
3.11 |
2.78 |
3.24 |
|
Return On Capital Employed(%) |
35.90 |
33.68 |
26.07 |
|
Return On Net Worth(%) |
23.96 |
36.21 |
38.81 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was formerly known as Gujarat Apar Polymers was
Promoted by subject, the flagship company of the Apar group, along with the Gujarat
Industrial Investment Corporation (GIIC), subject manufactures NBR (nitrile
rubber) and latex. It has a 6250-tpa facility for NBR, a special oil-resistant
synthetic rubber with good abrasion- and water-resistance.
NBR is used in the manufacture of oil well parts, fuel tank liners, fuel hoses,
gaskets, packing oil seals and other oil-resistant applications. The footwear
industry uses NBR for industrial and army boots. NBR latex is used in making
paper, non-woven fabrics, artificial leather and in finishing / water proofing
of real leather.
The company has signed a technical-collaboration agreement
with Goodyear Tire and Rubber Company, US, which will be valid for five years
from the commencement of production. Goodyear is one of the largest producers
of rubber and tyres besides being in the line of Speciality rubber, chemicals
and plastic products. There are about 12 NBR plants worldwide, of which five
operate on Goodyear technology. Goodyear is being paid a technical know-how fee
of US $ 750,000 in three equal installments, two being paid in advance to get
the technology, and a royalty of 2% on all sales of licensed products.
In Nov 2000 the captive plant for co-generation of power and steam has became
operational. The Ankleshwar plant which was modernised with latest know-how of
M/s Goodyear Tire and Rubber Co., USA for continuous processing of NBR in place
of batch processing was completed and test running is in progress in 2000-01.
MANAGEMENT DISCUSSION AND ANALYSIS:
Industry structure, development,
opportunities, threats, outlook, risks and concerns
The Company has
three business divisions, each of which enjoys significant market share in its
respective segments. Based on the end-consumer segments that the Company
services, 66% of its revenue comes from the power sector. The Government of
India, through the Central Electricity Authority, prepares a five-year plan
based on which the planning and execution of the power sector takes place. The
total plan outlay for the transmission and distribution sector under the
Eleventh Five Year Plan is expected to be Rs.1.73 trillion. In view of this
level of spending, the conductor requirement will be about 2.1 MMT against the
current requirement of 250,000 MT per annum. Similarly, in the case of transformer
oils, the requirement of first fill (oil initially filled when the transformer
is first commissioned) is estimated at 900 million litres against a current
requirement of 110 million litres per annum. These numbers indicate that there
will be a strong demand for the Company's products.
The risk lies in the fact that the Indian power sector has fallen behind the
Plan in implementation. A plethora of reasons account for the lag, comprising a
lack of clarity on account of the generation and transmission projects for
private players, financial closures and government-related delays. Due to these
risk factors it can be expected that the implementation of the Eleventh Plan
may stretch to say seven years or so.
However, it is also
quite certain that these outlays in the power sector are necessary to sustain
the growth momentum of the country.
Conservation of energy
Measures taken and
carried out on a regular basis:
Polymers Division
·
Saving energy through
the installation of CFL lamps in place of HPMV lamps of 250W and 160W BLL / MLL
for plant lighting and reactor vessel lamp fixtures.
·
Saving energy
in plant / street lighting by way of selecting the CFL lamp instead of a GLS
lamp, selecting an HPSV lamp instead of an HPMV lamp, installation of a metal
halide lamp in place of the mercury / sodium vapour lamp and installation of a
microprocessor-based controller for switching on / off for grouping of lighting
systems.
·
Saving energy
through the conversion of V-belt drive equipment to a flat belt drive in the
air compressor, BD compressor and hammer mill.
·
Saving power
by operating a pump near the best efficiency point.
·
Modification
of a pump to minimise throttling and operate one pump instead of parallel
operation through the use of a booster.
·
Correction in
the type and sizing of steam trap and reduction in steam leakage.
·
Saving energy
by optimising the cooling tower fan blade angle to minimise the tip clearance,
replace old spray-type nozzle with new square spray, optimise blow down-flow
rate as per limit and process cooling water flow requirement.
·
Saving energy
by installation of 50 KVA power factor with APFC to compensate no load losses
and improve the efficiency of 2x1250 KVA transformers.
Conductor division
I) Installation of the latest
design recuperator to recover energy from flue gases; this is working
effectively.
ii) Maintaining the cooling towers to ensure optimum efficiency and
energy saving.
iii) Installation of a variable frequency drive at stranding machine to
save energy and reduce motor failure rate.
iv) Installation of CFL lamps in all newly constructed offices to save
energy.
Additional investment proposals, if any,
being implemented for reduction in energy consumption
Polymers division
i) Energy saving
through the installation of a VFD or replacing the motor of suitable rating
instead of throttling the valves in reactors and a cooling water circulation
pump.
ii) Energy saving by improving the efficiency and lowering the KVA demand of
motor and subsequent reduction in operating cost by recording the parameters of
KW, KVA, PF, Volt and Ampere, calculating the percentage of loading of motor
and replacing the motor of correct rating.
Conductor division
i) Installation of
variable frequency drives at remaining stranding and wire drawing
machine.
ii) Replacement of an eddy current motor with a highly efficient induction
motor with VFD for better tension control and energy saving in WD.
iii) Replacement of old slipping motor with a highly efficient induction motor
with VFD.
Impact of measures at (1) and (2)
above:
- Low operating cost
of equipment / machinery
- Power saving
- Smooth operation of the motors
- Lower furnace oil consumption
OTHER INFORMATION:
|
Contingent
liabilities not provided for: |
31.03.2007 |
31.03.2006 |
|
|
(Rs. in
millions) |
|
|
(a) Bills of exchange discounted |
402.483 |
383.170 |
|
(b) Taxation: Disputed demands of income tax |
20.488 |
9.937 |
|
Guarantee Given by the Company fro credit
facilities enjoyed by the wholly Owned Subsidiary |
391.860 |
222.600 |
|
(i) Demand/ Show cause-cum-demand notices
received and contested by the Company with the relevant appellate
authorities: |
|
|
|
Excise Duty (also refer note below) |
16.969 |
43.998 |
|
Custom duty |
27.226 |
23.830 |
|
Sales tax |
8.353 |
6.886 |
|
(ii) A claim has been raised on the Company
by a service provider alleging contractual non performance on part of the Company,
which has not been acknowledged. The matter is pending arbitration. The
Company based on the facts of the case, is confident of the arbitration award
in it's favour. |
|
|
|
The Company had executed certain deemed
export orders of conductors in respect of which the Company availed duty
exemption on basis of eligibility certificates issued by project authorities.
The Central Excise Authorities have subsequently raised demands aggregating
Rs. 76.293 millions for the period from 31.08.2000 to 7.01.2002 (against
which Rs. 5 Millions was deposited under protest) disputing the eligibility
for exemption. The Company's writ petition has been dismissed by the Andhra
Pradesh High Court. The Company has now filed an application with Settlement
Commission. In case of these demands becoming payable, the same would be
either settled by the customer or would be recoverable from Government
Authorities, hence, would be revenue neutral for the Company. The Company has
also pleaded for waiver of interest and penalty before the Settlement
Commission and is confident that the same would be waived by the Settlement
Commission as per the precedent settled cases. |
|
|
|
(iii) Demand/ charges levied by the Local
Authorities |
20.056 |
19.406 |
|
(iv) Labour matters |
16.431 |
19.531 |
The
company is in trade terms with:-
- Maroff Chemicals Manufacturing Company
- Z and B Minerals Corporation
- Calibre Chemicals Private Limited
- Core Chemicals Private Limited
- Magnichem Industries
- Pukhraj Corporation
- Perfect Speciality Products
- Shefjo Plastics
- Anil Engineers
- Syscon Project Systems Private Limited
- Ashish Scientific Manufacturer
- Energy Pack Boilers Private Limited
- Elder Instruments Private Limited
- Goma Engineering Private Limited
- India Flex
- Jay Instruments and Systems
- J. K. Forge Industries
- Kalpana Minerals Private Limited
- New Genre Engineering Services
- Om Packing Corporation
- Syscons Engineers
- Sahyadri Enterprises
- Stanlubes and Speciality Private Limited
- Vibha Chem Industries
- Usha Fibres Equipments
- Thakkar Polypack Industries
- Ameeja Enterprises
FIXED
ASSETS
- Freehold and Leasehold Land
- Buildings
- Wind Farm
- Furniture
- Fixture and Equipments
- Motor Vehicles
WEBSITE DETAILS:
PROFILE:
Subject founded by Late Mr. Dharmsinh D. Desai in the year
1958 is one among the best established companies in India operating in the
diverse fields of electrical, metallurgical and chemical engineering.
Over the ensuing years it has evolved to be a 500 million US Dollar diversified
company offering value added products and services in Power Transmission,
Conductors and Petroleum Specialities.
Company Refinery Division established with the original
technical collaboration with Sun Oil Company, U.S.A is a pioneer and one of the
largest producers of Transformer Oils in South-East-Asia.
It also offers wide range of other Speciality Oils for the
Rubber, Tyre, Ink, Cosmetics, Food, Pharmaceutical, Health Care,
Steel, Aluminium, Petrochemical, Power, Plastic, Paper, Sugar, Cement,
Automotive and various other Industries.
Company Conductor Division was started with the technical
know-how from Alcan (Canada) and Properzi (Italy), is the largest producers of
POWERLINE Aluminium and Alloy Conductors, in Asia, with strategic partnership
and supply relationships with the top EPC Contractors in the World.
Recently, company acquired a strategic stake in Uniflex
Cables Limited, a manufacturer of wide range of power and telecom cables,
listed on BSE.
Subject manufacturing businesses are accredited with ISO
9001 - 2000 and ISO 14001 - 2004 Quality Management Systems.
Company is a Technology Driven Customer Focused group of
professionals who firmly believe in the company's vision "Tomorrow's
Progress Today." Company is firmly committed to being a responsible
corporate citizen with an abiding belief in human engineering.
Speciality Oils:
Company Speciality Oils business is based in Mumbai, India having its
manufacturing facilities in three different locations in and around Mumbai. The
country’s pioneering Special Oils Refinery of subject was set up with the
original technology from Sun Oil Company, U.S.A. subject manufactures a wide
range of Speciality Oils which include Transformer Oils, Light / Heavy Liquid
Paraffins ,White Oils, Rubber Processing / Extender Oils, Ink Oils, Industrial
/ Automotive Oils and Lubricants.
Company has the other two manufacturing facilities in its
sophisticated fully computerized SCADA controlled state of the art Lube
Blending Plants at Rabale – Thane and Silvassa. All manufacturing
facilities of company are accredited with the ISO 9001- 2000 and ISO 14001-
2004 certification.
Research and Development is an on going process at Company Speciality Oils
plants which continuously evaluate different base oils and additives and formulate
new products and improve the manufacturing process for up-gradation
of product quality to meet the national and international standards.
With the expertise spanning over four decades in the field
of Petroleum Specialties, the Speciality Oils Division of company offers
value added products and services to its customers in India and world over for
many years.
ALUMINIUM
CONDUCTORS
PRODUCT RANGE
All types of Bare overhead Aluminum Conductors and GS
Earthwires including but not restricted to the following:
- All Aluminium Conductors (AAC),
- Aluminium Conductors Galvanised Steel Reinforced (ACSR),
- All Aluminium Alloy (AAAC),
- Aluminium Alloy Conductors Galvanised Steel Reinforced (AACSR),
- Aluminium Conductors Aluminium Clad Steel Reinforced (ACSR-AW)
- Galvanised Stranded Steel Earth-wire, Guy-Wire/Spacer-Cable and
Staywire
MANUFACTURING
CAPACITY
Production facility is spread in two large size factories,
located at
- Village: Bahutha, Taluka: Savli, Dist. Vadodara, India.
- Silvassa, India.
-
They possess a Production Capacity (of both the plants
combined together) to manufacture more than 45,000 MT of AAC, AAAC, ACSR,
ACSR-AS, AACSR type High Strength Overhead Power Transmission and Distribution
Bare Conductors.
They have IN-HOUSE capacity (21,600 MT per annum at Bahutha
Plant and 24,000 MT per annum at our Silvassa Plant) for continuous casting and
rolling EC Grade Aluminium Rods and Aluminium Alloy Rods 9.5 mm and 7.6 mm
sizes of International Quality.
PLANT
and MACHINERY:
- For Continuous Casting and Rolling of EC Grade Aluminium/Aluminium
Alloy Rods.
- Melting and Holding furnances and Casting and Rolling Mill.
- Degassing System from Pechiney, France fitted with induction
heating system for on line solution treatment to manufacture Aluminium
Alloy Rods.
- Ageing Furnances for Aluminium Alloy Conductors.
For
Conductor Manufacturing:
- 11 Nos. Wire Drawing Machines for drawing the wire from 9.5 mm/7.6
mm Aluminium / Aluminium Alloy Wire Rods.
- 9 Nos. Tubular Machines for manufacturing 7 Strand AAC/ACSR/AAAC/
Steel Core/GS Earthwires.
- 4 Nos. Continuous multi cage Stranding Machines for manufacturing
61 Strand Conductors for Power Transmission (220 KV to 800 KV)
QUALITY
ASSURANCE and TESTING EQUIPMENT'S:
They are ISO 9001: 2000 Company. ISO 9001: 2000 Certificate
is awarded by UNDERWRITERS LABORATORIES Inc. (UL), USA. The certification
agency is having International reputation and is well known for its very
stringent Norms of Quality Control System.
They have all the latest and sophisticated equipments
including 2 Nos. Spectrometers for complete chemical analysis of EC Grade
Aluminium and Aluminium Alloy.
All the measuring equipments are calibrated at regular
intervals through independent testing laboratories/ certification agency.
They have all In-House facilities for carrying out
Acceptance Test/ Routine Test as per IS/ IEC/ ASTM/ BS/ DIN/ French and other
Intl. Standards.
TECHNICAL
EXPERTISE-SPECIAL ACHIVEMENTS:
- They are Member of Standardizing committee formed by Bureau of
Indian Standard, Government of India for preparing National Standards
(ISI) for Transmission and Distribution Conductor upto 800kVA system.
- They are Member of Standardizing committee formed by Rural
Electrification Company Limited, Government of India.
- They are nominated consecutively twice to represent India as
National Delegates in Technical Committee of IEC at New Delhi, India and
Kyoto in Japan.
- They have successfully conducted stringent type tests for independent
test at Internationally approved testing laboratories at CESI Italy, EDF,
France, Tag Corporation, Chennai (India) for Transmission Conductors for
500 kV HVDC and 800 kV AC Transmission System.
- They also conducted successfully type test for distribution
conductors for Metropolitan Electricity Authority, Bangkok.
- They have supplied longer length conductors as per customer
requirements for river crossing.
- They are the Pioneer supplier for 500 kV HVDC and 800 kV AC
Transmission System conductors to NTPC/Powergrid/MSEB/UPSEB in India.
- They have special logistic arrangements for container stuffing at
our works for exports.
CONDUCTOR
DIVISION HIGHLIGHTS (EXPORT/DOMESTIC PERFORMANCE) :
They have so far manufactured and supplied more than 200,000
Km of HV Power Transmission Conductors (i.e. 132 kV Class and above) Out of
this volume we have produced and supplied:
100,000 Km. (Approx.) for 400kV HVAC Transmission market.
15,000 km. (Approx.) for the 500 kV HVDC transmission
market.
3.000 km. for the 800 kV HVAC transmission market.
They have manufactured and supplied more than 550,000 Km.
Distribution conductors (i.e. 6.6/11/33/66 kV Class)
PRESS RELEASES:
CLSA fund picks up
14.2 % stake in Apar Industries for Rs.637.500 millions
MUMBAI, September
6, 2005 – Apar Industries Limited, India’s leading producer of Specialty Oils,
Aluminium Conductors and Polymers, announced today that Shinny Limited, a
subsidiary of ARIA Investment Partners II, LP, a private equity fund managed by
CLSA Private Equity Limited have subscribed to 3.445 millions - 5.40 %
Cumulative Compulsorily Convertible Preference Shares of Rs.185/- each
aggregating to Rs.637.505 millions.
Each of the said preference shares shall be
compulsorily converted into one equity share of Rs.10 at a premium of Rs.175
per share within one year from the date of allotment of the said preference
shares. ICICI Securities was the financial advisor for the transaction. The
allotment will be subject to the approval of Equity Shareholders of the Company
at the Extra-Ordinary General Meeting (EGM) to be held on September 30, 2005:
The company will also increase the existing
Authorized Share Capital from Rs.750.000 millions (divided into 26000000 Equity
Shares of Rs.10/- each and 49000000 Preference Shares of Rs.10/- each) to
Rs.919.987 millions divided into 26000000 Equity Shares of Rs.10/- each and
3567500 Preference Shares of Rs.185/- each.
APAR INDUSTRIES
LIMITED
Apar Industries is an Rs.10 billion
diversified manufacturing company offering value-added services in Power
Transmission Conductors, Petroleum Specialities and Synthetic Rubbers. Apar’s
product-lines of Specialty Oils, Aluminium Conductors and polymers are niche
businesses, each with leadership positions in India. Established in 1958 by Mr
Dharmsinh Desai, all of Apar’s manufacturing businesses are today accredited
with ISO-9001-2000 Quality Management Systems.
The Specialty Oil Division is the leading
marketer of Transformer Oils in India (50% share) and exporter to about 27
countries. The Conductor Division is among the top three producers in the world
and the Polymer Division is the only manufacturer of Nitrile Rubber in India,
widely used in automotive applications. The Transformer Oil and Aluminium
Conductors revenues contribute 60 per cent of Total sales. The power sector
reforms and the expected investment of Rs.700000.000 millions in the power
transmission sector in India by 2012 are likely to benefit both these
businesses directly.
ABOUT CLSA PRIVATE
EQUITY LIMITED
CLSA Private Equity Limited is a specialist
private equity investment management firm, focussed on Asia with a diverse team
of professionals with backgrounds spanning industry and banking to law and
accounting. This range of experience is backed with Asian experience. Based in
Hong Kong and Singapore, CLSA Private Equity is wholly owned by CLSA and works
closely with other units of CLSA.
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.46.63 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.66.49 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|