MIRA
INFORM REPORT
|
Report Date : |
23.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
PROCTER AND GAMBLE HYGIENE AND HEALTH CARE LIMITED |
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|
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Registered Office : |
P and G Plaza, |
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Country : |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
20.07.1964 |
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Com. Reg. No.: |
11-12971 |
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CIN No.: [Company
Identification No.] |
L24239MH1964PLC012971 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP10705C |
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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 and Market Health Care and Feminine Hygiene Products |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
||
|
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 21386000 |
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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 poor of Global P and G Group. Available information indicated high financial responsibility of the company.
Trade relations are fair. Financial position is the company is strong.
Payments are correct and as per commitments. The company is doing of very well. It can be considered good for normal business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management non cooperative.
LOCATIONS
|
Registered Office : |
P and G Plaza, |
|
Tel. No.: |
91-22-28266000 |
|
Fax No.: |
91-22-66939696 |
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E-Mail : |
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Website : |
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Factory 1 : |
173, 314, 315, Kundaim Industrial Estate, Kundaim-40311, |
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Factory 2 : |
Baddi Plants: Khasara No. 1808-09, Village- Doria, Export Park, Thana, Near Ino Pharma,
P.O. Baddi, Tehsil-Nalagarh, District Solan-173205, Himachal Pradesh, India |
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|
|
|
Factory 3 : |
Baddi Plants: Village Katha, Near Charak Pharma, P.O. Baddi, Tehsil-Nalagarh,
Solan-173205, |
DIRECTORS
As On : 30.06.2010
|
Name : |
Mr. R A Shah |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Mr. S Khosla |
|
Designation : |
Managing Director |
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|
Name : |
Mr. B S Mehta |
|
Designation : |
Director |
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|
Name : |
Mr. D Henretta |
|
Designation : |
Director (Alternate Mr. Pramod Agarwal) |
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Name : |
Mr. D.
Acharya |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
A Vyas |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 31.12.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
619,683 |
1.91 |
|
|
619,683 |
1.91 |
|
|
|
|
|
|
22,310,090 |
68.73 |
|
|
22,310,090 |
68.73 |
|
Total
shareholding of Promoter and Promoter Group (A) |
22,929,773 |
70.64 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
2,182,502 |
6.72 |
|
|
9,759 |
0.03 |
|
|
928,335 |
2.86 |
|
|
695,637 |
2.14 |
|
|
3,816,233 |
11.76 |
|
|
|
|
|
|
815,330 |
2.51 |
|
|
|
|
|
|
3,966,328 |
12.22 |
|
|
679,639 |
2.09 |
|
|
253,433 |
0.78 |
|
|
2,903 |
0.01 |
|
|
103,455 |
0.32 |
|
|
374 |
- |
|
|
108,189 |
0.33 |
|
|
15,384 |
0.05 |
|
|
23,119 |
0.07 |
|
|
9 |
- |
|
|
5,714,730 |
17.61 |
|
Total
Public shareholding (B) |
9,530,963 |
29.36 |
|
Total
(A)+(B) |
32,460,736 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
32,460,736 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millions
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Market Health Care and Feminine Hygiene Products |
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Products : |
|
PRODUCTION STATUS
(As on 30.06.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity (three shift
basis) |
Actual
Production |
|
Formulations: |
|
|
|
|
|
Ointments and Creams |
Tonnes |
3300 |
3300 |
1318 |
|
Cough Drops |
Tonnes |
6480 |
6480 |
4585 |
|
Liquids |
Kls. |
39 |
39 |
5 |
|
Tablets |
Millions |
1198 |
1198 |
464 |
|
Personal Products, Toilet Preparations, etc. |
Tonnes |
16700 |
14456 |
13307 |
Notes :
1. The installed capacities as at the
year-end are as certified by the management.
2. Actual production includes production
under manufacturing arrangement with third parties.
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
Not Divulged |
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Banking
Relations : |
- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Fellow Subsidiaries : |
·
Procter
and Gamble Home Products Limited ·
Procter
and Gamble ·
Procter
and Gamble Manufacturing (Thailand Limited ·
Procter
and Gamble Lanka Private Limited ·
Procter
and Gamble (Changdu) Limited ·
Procter
and Gamble ·
Procter
and Gamble ·
Procter
and Gamble US Business Services Company ·
Procter
and Gamble International Operations Private Limited ·
Procter
and Gamble Northeast ·
Procter
and Gamble International Operations SA ·
Gillette
·
Procter
and Gamble ·
Gillette
Diversified Operations Private Limited ·
Procter
and Gamble Panda Detergent Limited, ·
Procter
and Gamble Tuketim Mallari Sanayl ·
Procter
and Gamble ( ·
Procter
and Gamble ·
Procter
and Gamble Product Supply ( ·
Procter
and Gamble Technology ( ·
Procter
and Gamble ·
Procter
and Gamble Kabushiki Kaisha ·
Procter
and Gamble Far East Inc ·
Procter
and Gamble Korea Inc. ·
Procter
and Gamble ·
P
and G ( ·
PT
P and G Home Products ·
P
and G Ceemea- A Division of P and G ·
International
Operations SA ·
Procter
and Gamble ·
Procter
and Gamble Philippines Inc ·
Procter
and Gamble Technical Centers Limited ·
Procter
and Gamble Trading ( ·
Procter
and Gamble ·
Procter
and Gamble Manufacturing Company ·
Procter
and Gamble ·
Wella
India Hair cosmetics Private Limited ·
Procter
and Gamble Eastern ·
Procter
and Gamble (Manufacturing) ·
Procter
and Gamble distributing Company ·
Procter
and Gamble ·
Rosemount
Corporation · Procter and
Gamble Hair Care LLC |
|
|
|
|
Group Companies : |
·
Procter
and Gamble ·
Procter
and Gamble Company, ·
Procter
and Gamble International ·
The
Procter and Gamble Manufacturing Company ·
Procter
and Gamble Eastern ·
Procter
and Gamble (Manufacturing) ·
Procter
and Gamble Kabushiki Kaisha ·
Procter
and Gamble ·
Procter
and Gamble Trading ( ·
Procter
and Gamble (Changdu) Limited ·
Gillette
·
Wella
India Hair cosmetics Private Limited ·
Procter
and Gamble Tuketim Mallari Sanayl ·
Procter
and Gamble ·
Procter
and Gamble · Procter and Gamble
Far East Inc · Procter and
Gamble Home Products Limited |
CAPITAL STRUCTURE
(As on 30.06.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32460736 |
Equity Shares |
Rs.10/- each |
Rs.324.607
millions |
|
|
|
|
|
Of
the above shares
·
23541242
(Previous year: 23541242) equity shares were allotted as fully paid-up bonus
shares by capitalization of General Reserve and Share Premium
·
22929773
(Previous year: 22310090) shares are held by the ultimate holding company, The
Procter and Gamble Company, USA, and its subsidiaries of which 21221953 share
(Previous year: 21221953) are held by Procter and Gamble Asia Holding, BV, The
Netherlands and NIL shares (Previous year: 21221953 shares) held by the Procter
and Gamble Company, USA
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
324.607 |
324.607 |
324.607 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5021.789 |
4075.806 |
3141.820 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5346.396 |
4400.413 |
3466.427 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
22.438 |
54.086 |
43.382 |
|
|
|
|
|
|
|
|
TOTAL |
5368.834 |
4454.499 |
3509.809 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1303.933 |
1322.855 |
1230.843 |
|
|
Capital work-in-progress |
664.409 |
245.148 |
128.781 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
544.062
|
539.828
|
465.175
|
|
|
Sundry Debtors |
286.814
|
225.128
|
133.382
|
|
|
Cash & Bank Balances |
2323.271
|
880.337
|
1664.796
|
|
|
Other Current Assets |
84.395
|
20.091
|
8.867
|
|
|
Loans & Advances |
3061.570
|
3282.801
|
2006.722
|
|
Total
Current Assets |
6300.112
|
4948.185
|
4278.942
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1871.702
|
1023.100
|
1164.029
|
|
|
Current Liabilities |
118.335
|
133.605
|
144.410
|
|
|
Provisions |
909.583
|
904.984
|
820.318
|
|
Total
Current Liabilities |
2899.620
|
2061.689
|
2128.757
|
|
|
Net Current Assets |
3400.492
|
2886.496
|
2150.185
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5368.834 |
4454.49 |
3509.809 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9028.677 |
7728.028 |
6429.624 |
|
|
|
Other Income |
302.440 |
387.274 |
171.684 |
|
|
|
TOTAL (A) |
9331.117 |
8115.302 |
6601.308 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
3513.947 |
2984.034 |
2538.960 |
|
|
|
Raw and Packaging Material Consumed |
2382.736 |
2358.864 |
1866.037 |
|
|
|
Purchase of Finished Goods |
408.445 |
6.686 |
3.769 |
|
|
|
Increase/(Decrease) in Finished Goods |
4.663 |
(40.989) |
(131.845) |
|
|
|
Payments to and provisions for employees |
434.573 |
346.419 |
397.286 |
|
|
|
TOTAL (B) |
6744.364 |
5655.014 |
4674.207 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2586.753 |
2460.288 |
1927.101 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.251 |
0.005 |
0.243 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2586.502 |
2460.283 |
1926.858 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
250.258 |
143.700 |
121.204 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2336.244 |
2316.583 |
1805.654 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
538.590 |
528.104 |
491.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1797.654 |
1788.479 |
1314.154 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2014.745 |
1259.759 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
179.800 |
179.000 |
NA |
|
|
|
Dividend |
730.366 |
730.366 |
NA |
|
|
|
Tax on Dividend |
121.305 |
124.126 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2780.928 |
2014.746 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Business process outsourcing income |
10.884 |
6.229 |
6.630 |
|
|
|
Research and Development and other cross charges |
2.623 |
1.916 |
2.009 |
|
|
|
Exports of goods calculated on f.o.b. basis (excludes Rupee exports to
|
96.922 |
79.913 |
12.372 |
|
|
|
Bhutan Rs.21.812 millions - Previous year Rs.18.308 millions) Others
(freight , insurance etc.) |
9.050 |
5.384 |
0.723 |
|
|
TOTAL EARNINGS |
119.479 |
93.442 |
21.734 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
843.882 |
939.044 |
650.820 |
|
|
|
Stores & Spares |
26.315 |
27.875 |
11.911 |
|
|
|
Capital Goods |
240.292 |
90.967 |
9.594 |
|
|
TOTAL IMPORTS |
1110.489 |
1057.886 |
672.325 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
55.38 |
55.10 |
40.48 |
|
QUARTERLY RESULTS
(Rs. In Millions)
|
PARTICULARS |
|
30.09.2010 1st
Quarter |
31.12.2010 2nd Quarter |
|
Net Sales |
|
2282.200 |
2989.900 |
|
Total Expenditure |
|
1920.900 |
2430.800 |
|
PBIDT (Excl OI) |
|
361.300 |
559.100 |
|
Other Income |
|
86.300 |
79.200 |
|
Operating Profit |
|
447.600 |
638.300 |
|
Interest |
|
0.000 |
0.100 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
477.600 |
638.200 |
|
Depreciation |
|
48.100 |
54.100 |
|
Profit Before Tax |
|
399.500 |
584.100 |
|
Tax |
|
85.900 |
134.600 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
313.600 |
449.500 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
313.600 |
449.500 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
19.26
|
22.04
|
19.91
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
25.87
|
29.98
|
28.08
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
30.72
|
36.94
|
32.77
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.53
|
0.52
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.54
|
0.47
|
0.61
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17
|
2.40
|
2.01
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(Rs.
In Millions)
|
Particulars |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
Sundry Creditors |
|
|
|
|
- Total outstanding dues to creditors other than Micro Enterprises and
Small Enterprises |
1871.702
|
1023.100
|
1164.029 |
HISTORY
Subject is one of
The Company's saga way back to the establishment of Richardson Hindustan
Limited (RHL), which obtained an Industrial License to undertake manufacture of
Menthol and de mentholised peppermint oil and VICKS range of products such as
Vicks Vapo Rub, Vicks Cough Drops and Vicks Inhaler. The premier product of the
company, Vicks Action 500 was launched in the year 1979 and in 1984; an
Ayurvedic Research Laboratory was gone to live. In October of the year 1985,
RHL became an affiliate of The Procter and Gamble Company,
During the year 1999, the company changed its name from Procter and Gamble
India Limited to Procter and Gamble Hygiene and Health Care Limited and also in
the identical year, Mediker Shampoo business was divested to Marico Industries.
In 2000, the company had introduced Whisper Ultra, Vicks Plus Medicated
Lozenges and re launched Vicks Action 500+. To make Indian consumers affordable,
the company had reduced its prices on Whisper in the year 2001. Subject had
launched New Improved Vicks Vapo Rub in the year 2002, India's number one Cold
Rub that provides multi-symptom relief from the six symptoms of a child's cold
and also in the same year launched Vicks Action500+ Night tablets. Vicks
Formula 44 Cough Syrup, which was introduced by the company in the year of 2003
to provide safe, effective and long lasting relief for up to eight hours from
tough persistent coughs due to colds. Subject had commenced test marketing of
economically priced and competitively superior performing, Whisper Choice pads
in the southern states of Karnataka, Tamil Nadu, Andhra Pradesh and Kerala
during the year 2004. After a year, in 2005, the company had launched Whisper
Choice National in Indian market and also acquired Gillette globally. Building
the brand equity of Whisper and what's more, has won the Bronze Lion Award at
the Cannes International Advertising Festival 2006.
The Company had officially launched the Olay brand of beauty products in
BUSINESS
PERFORMANCE
The Company delivered strong business results in the year. The sales at
Rs.9140.000 millions are higher by 18% versus the sales of Rs.7730.000 millions
in the previous financial year. The Feminine Hygiene business continues to grow
in higher double digits with all the variants of Whisper sanitary napkins showing a healthy growth. While Whisper Choice the variant in
the popular segment is helping the Company grow volume shares, the growth of Whisper Ultra in the premium segment has
helped add to value shares. Similarly, the Healthcare business has also shown
sales growth of 11% behind increased sales of Vicks Vapo Rub and Vicks
Inhaler. Overall, the Company continued to focus on driving
persuasive and consumer-meaningful innovations backed by distribution expansion
and remarkable advertising support thereby recording a valuable growth across
all areas of business.
While the sales have grown by 18%, the Profit Before Tax
(PBT) at Rs.2340.000 millions is up only by 1% vs. last year's PBT of
Rs.2320.000 millions. This is primarily due to increased market investments and
expenses in the last quarter of the year, such as increase in the advertising
and promotion expenses in general, the launch of Whisper Choice Ultra in particular, the start-up expenses
on new manufacturing lines and the unexpected levy of excise duty by the 2010
Union Budget.
During the year, the Company earned Profit after Tax (PAT)
of Rs.1800.000 millions which is also marginally up as compared to last year's
PAT of Rs.1790.000 millions.
Healthcare Business
Healthcare business at Rs.3810.000 millions (vs. last year's
Rs.3440.000 millions) posted a growth of 11% this year across Vicks Vapo Rub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler thereby consolidating
the market leadership in its respective categories. This growth was driven by a
combination of product initiatives and increased investment behind proven
equity building advertising.
Vicks Vapo
Rub had a record year posting the highest ever market share. The growth in the
brand was driven primarily through continued focus and augmented media spends
on the successful 'blanket of warmth'
advertising
and on their ongoing strategy of upsizing consumers to drive
consumption - viz. the timely promotions on jars which help in encouraging
consumers to purchase larger packs.
The Vicks Cough
Drops business had an excellent year, with the brand growing at 15%. The growth
was driven by launch of a Jumbo drop,
to cater to the top unmet demand of the category. This was accompanied by new
attractive packaging and a higher media reach behind remarkable advertising
support. The growth was further supported by an initiative to drive awareness
of flavors via relevant touch points such as radio and wall-painting, which led
to a further increase in consumption.
Their modest shipments on Vicks Action-500 during the year were driven by the
overall slow down in the cold tablets category. During the second half of the
financial year, the Company invested in superior advertising support for the
product and saw the business respond immediately. They will however continue
promoting the benefits of the product and expanding its distribution to ensure
robust growth of Vicks Action-500
in the year ahead.
Vicks will
continue to innovate to ensure it stays the most trusted cough and cold care
amongst consumers in
Feminine Hygiene Business
Feminine Hygiene business recorded yet another year of high
growth with sales at Rs.5320.000 millions (vs. last year's Rs.4280.000
millions) translating to a growth of 24%. The Company has delivered the highest
sales and share growth for P and G across the globe, with Whisper increasing its market
share and Whisper Ultra being
the largest value share brand in the market. This growth is driven, both by
increase in distribution amongst non-users and consumption amongst users.
During the year, a number of initiatives were designed to
win with the consumers' needs across segment.
The top-tier consumers were delighted by the "magical
absorbency" promised by Whisper
Ultra, and the launch of Whisper
Choice Ultra in February 2010 with its "ultra"
offerings fascinating the mid-tier consumers. Whisper Choice Ultra priced at Rs.30 for 6 pads
addresses the barrier that the mid-tier consumer faces and provides her a
chance to experience "gel" technology protection - a unique
superiority of the product now at a far more affordable cost than before.
The Company continued its disproportionate focus on the Point of Market Entry consumer.
The Whisper school program
reached a total of 2.4 million menstruating girls across private and government
schools, which is a 15% increase versus the previous year. At the same time, by
constantly innovating to meet the consumers' needs, Whisper ensured that the top-tier brand Whisper Ultra was sampled in
the more urban schools, and the more economical mid-tier Whisper Choice in the
upcountry schools. Not only did the program reach out to more potential
consumers, but it also increased its depth by reaching out to lower tier towns.
With the launch of Whisper Choice Ultra,
the school program will be leveraged to sample this winning proposition to all
government school girls.
In addition to the robust and time-tested School Girls Program,
the Company continued to expand its direct-to-home selling program across the
country. The top-tier program reached 0.75 million consumers in their homes,
which is a 147% increase as against the previous year. The Whisper Choice program, first initiated
in Tamil Nadu, made it a most preferred brand of the consumers with the highest
volume share in the state. This program was
expanded to 6 other states, reaching 1.9 million consumers
and creating trial among 1.4 million of these consumers.
MANAGEMENT DISCUSSION AND ANALYSIS
Review
of Economic Scenario and impact of Union Budget '10
The Economic Survey 2009-10 presented by the Honorable Finance Minister to
the Parliament has projected an economic growth of 8.75 per cent in 2010-11 and
further states that India is on its way to becoming world's fastest growing
economy in four years. The survey further states that in 2011-12, the country's
economy would bounce back to a high 9 percent growth.
The Union Budget for 2010-11 attempts to achieve a fine balance
between sustainable development and fiscal prudence with growth. The Budget
places a great thrust on technology to propagate climate resilient initiatives
and ecological preservation. Public sentiments leading up to Budget 2010-11
have been understandably upbeat with signs of a revival within the economy
indicating that India has successfully overcome the ills of the slowdown that
assumed center stage during the previous fiscal year. The expectations from the
Union Budget 2010-11 centered on how the economy would attain fiscal
consolidation, meet the impending challenges of burgeoning inflation and the
game plan to revitalize the waning agricultural sector in India, (source: Deloitte: Gaining Insights Budget Analysis
2010)
FMCG
Sector and the Indian consumers
According to a FICCl
- Technopak report, despite the economic slowdown, India's fast
moving consumer goods (FMCG) sector is poised to reach US$43 billion by 2013
and US$74 billion by 2018. The report states that implementation of the
proposed Goods and Services Tax (GST) and the opening of Foreign Direct
Investment (FDI) are expected to fuel growth further and raise the industry's
size to US$47 billion by 2013 and US$95 billion by 2018. Demand for personal
care products such as shampoos, toothpastes and hair-oils grew faster in rural
areas than urban areas during April-September 2009, a period that includes the
peak monsoon months, as per the numbers released by market researcher AC Nielsen. A new study shows
consumer sentiment is highest in India. The Indian consumer is the most
confident.
Performance
Overview and Outlook
The Company operates in a single reportable business and
geographical segment. The Company's core business is manufacturing, marketing
and distribution of Healthcare and Feminine Hygiene products. Under these
businesses it has in its portfolio: Vicks
-
Health
Care Business
The Company's Health Care sales at Rs.3810.000 millions (vs.
last year's Rs.3440.000 millions) posted a growth of 11% this year across Vicks Vapo Rub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler ensuring
consolidation of market leadership in their respective categories. The growth
was driven by a combination of product initiatives on all three variant brands
and increased investment behind proven equity advertising. Vicks Vapo Rub had a record
year posting the highest ever market share. The Vicks Cough Drops business had a highly successive year
with the brand growing at 15%. Vicks will
continue to innovate to ensure it stays the most trusted cough and cold care
solution in
Feminine
Hygiene Business
Feminine Hygiene business recorded yet another year of high
growth with sales at Rs.5320.000 millions (vs. last year's Rs.4280.000
millions) translating to a growth of 24%. The Company has delivered the highest
sales and share growth for P and G across the globe, with Whisper increasing its market share
and Whisper Ultra being the
largest value share brand in the market behind well thought out initiatives.
This growth is driven both by increase in penetration among non-users and
consumption among users.
During the year, a number of initiatives were designed to
meet the consumers' needs across segments. All these initiatives led to the Whisper share crossing the 50
points mark, and reach an all time high of 51.1. The last time we crossed the
50 share mark was more than 15 years ago.
The Company continued its disproportionate focus on the
Point of Market Entry consumer. The Whisper
school program reached a total of 2.4 million menstruating girls
across private and government schools, which is a 15% increase versus the
previous year. At the same time, by constantly innovating to meet the
consumers' need, Whisper ensured
that the toptier brand was sampled in the more urban schools and the more
economical mid-tier Whisper Choice in
the upcountry schools. Not only did the program reach out to more potential
consumers, but it also increased its depth by reaching out to tier-II class
towns. With the launch of Whisper
Choice Ultra, the school program will be leveraged to sample this
winning proposition to all government school girls.
In addition to the robust and time-tested school girls
program, the Company continued to expand its direct-to-home selling program
across the country. The top tier program reached 0.75 million consumers in
their homes, which is a 147% increase as against the previous year.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010
|
Particulars |
|
30.09.2010 Three months Ended (Rs. in Millions) (Unaudited) |
|
Income |
|
2278.100 |
|
a) Net Sales / Income from Operations |
|
4.100 |
|
b) Other Operating Income |
|
2282.200 |
|
Total Operating Income |
|
|
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
|
(18.000) |
|
(b) Consumption of Raw Materials |
|
707.400 |
|
(c) Purchase of traded goods |
|
174.400 |
|
(d) Employees Cost |
|
121.300 |
|
(e) Advertising and Sales promotion expenses |
|
488.800 |
|
(f) Royalty expenses |
|
142.400 |
|
(g) Depreciation |
|
48.100 |
|
(h) Other Expenditure |
|
304.600 |
|
Total Expenditure |
|
1969.000 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
313.200 |
|
Other Income |
|
86.300 |
|
Profit/(Loss) before Interest and Exceptional items |
|
399.500 |
|
Interest |
|
0.000 |
|
Profit / (Loss) after interest before Exceptional items |
|
399.500 |
|
Exceptional Items |
|
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
|
399.500 |
|
Tax Expenses |
|
85.900 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
|
313.600 |
|
Extraordinary Items |
|
0.000 |
|
Net Profit/(Loss) for the period |
|
313.600 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
324.600 |
|
Reserves (Excluding Revaluation Reserves) |
|
-- |
|
Earning Per Share |
|
|
|
-Basic |
|
9.66 |
|
-Diluted |
|
9.66 |
|
Public Share Holding |
|
|
|
- Number of Shares |
|
9530963 |
|
- Percentage of shareholding |
|
29.36 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
22929773 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
70.64 |
FIXED ASSETS
·
Land
- Freehold
·
Land
- Leasehold
·
Buildings
·
Plant
and Machinery
·
Furniture
and fixtures
·
Office
equipment
·
Moulds
and Dies
·
Vehicles
WEB DETAILS
History:
In historical terms Procter and Gamble's relationship with
India dates back to when Vicks Product Inc. India, a branch of Vicks Product
Inc. USA established in 1951,
was engaged in the manufacture (under loan license) and sale of what is today
India's Number One Health Care brand - the famous range of VICKS products.
In 1964,
a public limited company, Richardson Hindustan Limited (RHL) is formed which
obtains an Industrial License to undertake manufacture of Menthol and de
mentholised peppermint oil and VICKS range of products such as Vicks VapoRub,
Vicks Cough Drops and Vicks Inhaler.
In May 1967,
RHL introduces CLEARASIL, then
In 1979,
RHL launches VICKS ACTION 500. It also commenced campus recruitment in this
year and began recruitment from IIM campuses as Day I recruiters.
In 1984,
RHL sets up an Ayurvedic Research Laboratory. This is in keeping with the
Company's mission of delivering products of superior quality to address the
common ailments of the people such as cough and colds.
In October 1985,
after RHL becomes an affiliate of The Procter and Gamble Company,
In 1989,
Procter and Gamble
In 1991,
Procter and Gamble
In 1992,
The Procter and Gamble Company, US increases its stake in Procter and Gamble
In 1993,
Procter and Gamble
In 1996,
Goa Honda Factory starts its operations, manufacturing Vicks Vaporub.
In 1998,
Goa Kundiam Factory starts its operations, manufacturing Whisper pads.
In 1999
Procter and Gamble India Limited changed the name of the Company to Procter and
Gamble Hygiene and Health Care Limited.
In the same year Mediker Shampoo business is divested to
Marico Industries.
In 2000,
subject introduced Whisper Ultra - a revolutionary and unique product in the
history of menstrual products in
In August 2000,
subject launched Vicks Plus Medicated Lozenges, a product that provides
medicinal relief from sore throat. The uniqueness of Vicks Plus Medicated
Lozenges lies in its anti-bacterial ingredient CPC (Cetylpyridinium Chloride),
which actually provides medicinal relief from a sore throat.
In August 2000,
Vicks Action 500+ was relaunched in an attractive True Blue pack. The change
from green to blue packaging brings Vicks Action 500 + in line with the new
global packaging colours used for the Vicks range of products worldwide.
In April 2001,
subject reduced the prices of Whisper Ultra from Rs.80 to Rs.65 for a pack of
ten, making it affordable to Indian consumers.
In May 2002,
Whisper announced a unique knowledge sharing initiative for women – The Whisper
Diary of Secrets. The Whisper Diary of Secrets is a full-color 48-page, booklet
designed to provide the new age woman with information that she seeks on
feminine hygiene, health and beauty.
In August 2002,
subject announced the launch of Whisper “Money Back” offer, which offers
consumers a chance to experience Whisper’s superior performance, helping them
forget the wetness; and if they are not satisfied, they get their money back.
In June 2002,
subject announced the launch of New Improved Vicks VapoRub –
In July 2002,
Procter and Gamble announced the launch of Vicks Action500+ Night tablets, a
specially designed cold medicine that gives consumers multi-symptom relief from
bothersome cold symptoms like headache and breathing difficulty, hence allowing
restful sleep at night.
In October 2002,
In October 2003,
subject launched New Vicks Formula 44 Cough Syrup which uniquely provides safe,
effective and long lasting relief for up to eight hours from tough persistent
coughs due to colds, as compared to four-hour relief provided by a single dose
of most popular cough syrup brands.
In May 2004,
subject they commenced test marketing an economically priced and competitively
superior performing, WHISPER Choice pads in the southern states of Karnataka,
Tamil Nadu, Andhra Pradesh and Kerala. At an affordable introductory price of
Rs.26 for ten pads, WHISPER Choice provides three distinct benefits: 1)
superior protection vs. other pads in its price range; 2) With its unique
dri-weave top sheet it provides one tenth the wetness of ordinary (non woven)
top sheet pads and 3) double adhesive coverage to ensure that the pad stays in
place much better than ordinary pads.
Profile:
Subject is one of
Subject takes pride in being voted
Social Responsibilities:
The
As a company, Procter and Gamble is committed to the philosophy of Touching
Lives, Improving Life. This commitment comes to life best through the actions
of its individual employees who believe in and stand for this commitment. And
this commitment was clearly visible in the response P AND G employees gave to a
call for contribution to the Chief Minister?s Relief fund.
In times likes these, despair is omnipresent and inspiration in short supply.
Procter and Gamble
Project Shiksha: Secure The Child’s Future (2003)
In keeping with the global philosophy of continuous
development of the community, P AND G in association with Sony Entertainment
Television launched an education initiative ‘Shiksha – Secure The Child’s
Future’ across the country. In order to ensure P AND G reached the non-Hindi
speaking audience, a tie-up with three other channels in the south was undertaken.
In the north, west, east, Karnataka regions – Sony TV telecast the promotion
and announced winners on its No. 1 soap opera Kkusum, in Andhra Pradesh – Maa
TV promoted Shiksha with Todi Kodallu, in Tamil Nadu – Jaya TV promoted Shiksha
with Sahana and in Kerala – Asianet promoted Shiksha with Snehadooram.
By purchasing packs of Vicks, Whisper, Ariel, Tide, Head and
Shoulders and Pantene between 21st April – 12th June 2003, this unique
education promotion allowed a mother to win Rs. 0.200 Million towards Graduate
Education Fee of one child (24 such Prizes), or Rs. 5,000 towards Next Year’s
Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes,
all courtesy P AND G. All Shiksha prizes could be gifted and were transferable,
in case the winner is not a parent or, if his/her child was above 21 years of
age.
Shiksha received a positive response from all parts of the
country. This promotion was greatly appreciated as purchase of any P AND G
product allowed one to win education for his/her child.
Rebuilding Lives In Earthquake Hit Bhuj (2001/2002)
P AND G in partnership with Swayam Shikshan Prayog (SSP)
opened four Community Resource Centers for the earthquake victims in the
Chakasari, Paggivand, Hanjiya and Jodhpar vands (hamlets) of Rapar Taluka,
Kutch District,
The operational cost for each Centre is Rs, 25,000 met by P
AND G. The centers have been built from a Gujarat Earthquake Relief Fund
created after the earthquake of 26th January 2001 by employees of P AND G
India,
In addition, P AND G is currently working on forming women’s
micro-credit groups to ensure the sustainability of these community centers and
to further empower these women and increasing the number of community centers
from four to seven.
Project Poshan: Fighting Malnutrition in
P AND G and UNICEF launched Project Poshan to combat
malnutrition in
Project Open Minds: Educating
P AND G in partnership with UNICEF launched Project Open
Minds to support and educate children across the
Project Drishti: The First-ever Sight Restoration Programme
in
P AND G tied up with the National Association for the Blind
(NAB) to launch Project Drishti and restore eyesight to 250 blind girls through
corneal transplant operations. FOGSI (Federation of Obstetricians and
Gynecologist Societies of India) and UNICEF had declared 1999 as the Year of
the Adolescent Girl. On studying the problems of the blind girl, P AND G
realized that, what better way to celebrate the FOGSI-UNICEF, Year of the
Adolescent Girl (YOGA) than to attempt to give sight to as many blind girls
that the company could. Till date 138 sight restoration operations have been
successfully conducted across the country.
Project Future Focus: The First-Ever Round Write-In Career
Guidance Service (1998)
P AND G in association with Resource Management Group (RMG)
launched a 365 days Free Write-In Service ‘P AND G Future Focus’ for the first
time to the youth of India, where a panel of professional Career Counselors
would send personalized answers to letters within 15 days of the receipt of the
queries.
Project Peace: Environment Education Programme (1996)
P AND G launched PEACE – a unique Environmental Education
Program for children in schools across
PRESS RELEASE:
PGHH Quarter-3 Sales up 15%; PBT up 23%; PAT 26%
Mumbai, April 23,
2010: Procter and Gamble Hygiene and Health Care Limited. (PGHHCL— BSE Scrip
code PNG) today announced its un-audited financial results for the third
quarter ended March 31, 2010. The Company
achieved total
sales of Rs.205 crores, which grew by 15% over the corresponding period last
year (Rs. 178 crores). Profit Before Tax (PBT) at Rs. 56 crores is up 23%
(Rs.46 crores). Similarly, the Profit After Tax (PAT) in this quarter at Rs. 44
crores is up by 26% (Rs.35 Crores).
This growth is led
by an excellent performance of both the Healthcare and Feminine Hygiene
businesses. Feminine Hygiene business sales at Rs. 125 crores posted 16% growth
over sales of Rs. 108 crores of the corresponding quarter last year led by
strong plans on Whisper Ultra, Whisper Maxi and Whisper Choice. Healthcare
sales at Rs. 80 crores grew by 15% versus Rs.70 crores of the same quarter last
year led by strong growth of VICKS VapoRub and VICKS Cough Drops.
Mr. Shantanu
Khosla, Managing Director said, “Our
continuing double digit growth on the Feminine Hygiene and Healthcare business
in India is driven by a strong focus on consumer-meaningful innovations,
retaining the finest talent in the industry, and increasing our commitment to
sustainability and social responsibility. We continue to focus on delighting
our consumers via providing superior product benefits, building strong
partnerships with our customers to achieve deeper distribution and driving cost
out of the system as efficiently as possible. Our Shiksha initiative for the
education of marginalized children in India enters its sixth year and we hope
our consumers, trade and media partners will help increase the contribution to
the cause we all feel strongly about.”
About Procter and
Gamble Hygiene and Health Care Limited.
Procter and Gamble
Hygiene and Health Care Limited. (PGHH) is one of India’s fastest growing FMCG Companies
that has in its portfolio WHISPER – India’s leading Feminine Hygiene brand, and
VICKS – India’s No. 1 Health Care brand. The Company has carved a reputation
for delivering high quality, value-added products to meet the needs of
consumers. PGHH is committed to making every day in the lives of Indian
consumers better through the quality of its products and the sincerity of its
service.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 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.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
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 |
|
NB |
New Business |
- |
|
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.