MIRA
INFORM REPORT
|
Report Date : |
17.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
WHIRLPOOL OF INDIA LIMITED |
|
|
|
|
Formerly Known As : |
KELVINATOR OF INDIA LIMITED |
|
|
|
|
Registered Office : |
Plot A-4, MIDC, Ranjangaon Taluka, Shirur District, Pune – 419 204,
Maharashtra |
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|
Country : |
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|
|
|
Financials (as on) : |
31.03.2010 |
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|
|
|
Date of Incorporation : |
09.07.1960 |
|
|
|
|
Com. Reg. No.: |
020063 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29191PN1960PLC020063 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELW00327F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACW1336L |
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|
|
|
Legal Form : |
A Public Limited Liability
Company. The company’s shares are
listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of
Refrigerator Direct Cool, Refrigerator No Frost, Deep Freezer, Additional
Compressor, Electrical Grade Lamination, Electrically Operated Cash register,
Electronic Cash Register, Scooter, Moped, Microwave Oven, Winding Wire, Tool
and Programmable Laundering Machines. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 14000000 |
|
|
|
|
Status : |
Moderate |
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|
|
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Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
Comments : |
Subject is all established company having moderate track. However the
financials of the company appears to be improving. Trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions with sigh caution. |
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management Non co-operative.
LOCATIONS
|
Registered Office : |
Plot A-4, MIDC, Ranjangaon Taluka, Shirur District, Pune – 419 204,
Maharashtra |
|
Tel. No.: |
91-11-6857688/ 91-20-4061100
/ 2138-660100 |
|
Fax No.: |
91-11-6857701/ 91-2138-232376/
232229 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
A 8, Vaitalik, |
|
Tel. No.: |
91-11-26857180 |
|
Fax No.: |
91-11-26523369 |
|
E-Mail : |
|
|
|
|
|
Corporate
Office 2 : |
Plot No. 40,
Sector – 44, Gurgaon – 122 022, |
|
Tel. No.: |
91-124-4591300 |
|
Fax No.: |
91-124-4591301 |
|
|
|
|
Factory : |
·
·
Thirubhuvanai, Pond cherry, ·
Ranjangaon, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Arvind Uppal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Syed Shahzad Akhtar |
|
Designation : |
Whole Time Director |
|
Date of Appointment: |
17.05.2010 |
|
|
|
|
Name : |
Mr. Vikas Singhal |
|
Designation : |
Whole Time Director |
|
Date of Appointment : |
25.07.2008 |
|
Date of Ceasing: |
31.03.2010 |
|
|
|
|
Name : |
Mr. Robert Lawrence Mink |
|
Designation : |
Non Executive Chairman |
|
Date of Appointment : |
20.05.2008 |
|
|
|
|
Name : |
Mr. Anand Bhatia |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Simon James Scarff |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sanjiv Verma |
|
Designation : |
Additional
Director |
|
|
|
|
Name : |
Mr. Mark Hu |
|
Designation : |
Director |
|
Date of
Ceasing : |
29.02.2008 |
|
|
|
|
Name : |
Mr. Mahesh Krishna |
|
Designation : |
Director |
|
Date of
Ceasing : |
25.07.2008 |
KEY EXECUTIVES
|
Name : |
Mr. Ravi
Sabharwal |
|
Designation : |
Company Secretary
|
|
|
|
|
Audit Committee: |
·
Mr. Anand Bhatia Chairman- Independent Director ·
Simon J. Scarff, Member- Independent Director ·
Robert Lawrence Mink, Member- Non Executive
Director ·
Mr. Sanjiv Verma, Member- Non Executive Director |
|
|
|
|
Directors Remuneration Committee: |
·
Mr. Anand Bhatia, Chairman ·
S.J Scarff ·
Robert Lawrence Mink |
|
|
|
|
Investors Grievance Committee: |
·
Mr. Anand Bhatia, Chairman ·
Arvind Uppal ·
Mr. Vikas Singhal |
|
|
|
|
Share Transfer Committee: |
·
Mr. Anil Berera ·
Mr. Ravi Sbharwal ·
Mr. Vina Kumar ·
Mr. Anish Duggal |
MAJOR SHAREHOLDERS
(As on 31.12.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
95,153,872 |
75.00 |
|
|
95,153,872 |
75.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
95,153,872 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8,556,208 |
6.74 |
|
|
8,888 |
0.01 |
|
|
833 |
- |
|
|
3,138,218 |
2.47 |
|
|
3,471 |
- |
|
|
3,471 |
- |
|
|
11,707,618 |
9.23 |
|
|
|
|
|
|
5,358,862 |
4.22 |
|
|
|
|
|
|
8,635,611 |
6.81 |
|
|
5,096,461 |
4.02 |
|
|
919,406 |
0.72 |
|
|
855 |
- |
|
|
292,674 |
0.23 |
|
|
97,468 |
0.08 |
|
|
528,409 |
0.42 |
|
|
20,010,340 |
15.77 |
|
Total Public shareholding (B) |
31,717,958 |
25.00 |
|
Total (A)+(B) |
126,871,830 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
126,871,830 |
100.00 |
(1) Indian
Bodies Corporate
Foreign Financial Institutions / BanksBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Refrigerator
Direct Cool, Refrigerator No Frost, Deep Freezer, Additional Compressor,
Electrical Grade Lamination, Electrically Operated Cash register, Electronic
Cash Register, Scooter, Moped, Microwave Oven, Winding Wire, Tool and
Programmable Laundering Machines. |
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Products : |
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||||||||
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Brand Names : |
“WHIRLPOOL”. |
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PRODUCTION STATUS(As on 31.03.2010)
|
Class of Goods |
|
Actual Production (Nos.) |
|
Home Appliances |
|
|
|
Refrigerators |
|
1737150 |
|
Washing Machines |
|
483801 |
|
Air Conditioners |
|
2250 |
|
Microwave Ovens |
|
-- |
|
Other Products |
|
2838 |
|
Semi Finished Goods |
|
36345 |
|
Spares and Accessories |
|
-- |
|
Miscellaneous |
|
-- |
GENERAL INFORMATION
|
No. of Employees : |
Approximately 511 |
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Bankers : |
· ABN Amro Bank N.V. ·
Citibank ·
Deutsche Bank ·
HDFC Bank Limited ·
·
Standard Chartered Bank ·
Hongkong and Shanghai Banking
Corporation ·
Societe Generale ·
Standard Chartered Grind lays
Bank Limited · State Bank of · Bank of ·
Standard Chartered Bank ·
ABN Amro Bank ·
Bank of ·
Punjab National Bank ·
Nova Scotia Bank |
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Facilities : |
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|
|
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Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountant |
|
Address : |
SRB House, 20,
Community Centre, Pushp Vihar (Madangir), |
|
|
|
|
Cost Auditor : |
Ashok K. Agarwal Cost Accountant |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Subsidiaries: |
Kelbex International Limited |
|
|
|
|
Holding Company : |
Whirlpool Corporation Inc., |
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|
|
|
Group Companies : |
|
CAPITAL STRUCTURE
(As on 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000
millions |
|
155000000 |
Preference Shares |
Rs.10/- each |
Rs.1550.000
millions |
|
|
Total |
|
Rs.3050.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
126871830 |
Equity Shares Out of the above : (i) 50,000 (Previous Year 50,000) Equity
Shares were allotted pursuant to a contract for supply of machinery in
earlier years. (ii) 6,601,400 (Previous Year 6,601,400)
Equity Shares were allotted as fully paid up Bonus Shares by capitalisation
out of General Reserves in earlier years. (iii) 4,196,400 (Previous Year 4,196,400)
Equity Shares were allotted as fully paid up Bonus Shares by capitalisation
out of Securities Premium Account in earlier years. (iv) 25,000 ( Previous Year 25,000)
Shares were allotted to Shareholders of erstwhile Aravali Swachalit Vahan
Limited under a Scheme of Amalgamation in earlier years. (v) 75,00,000 ( Previous Year 75,00,000)
Shares were allotted to Shareholders of erstwhile Whirlpool Washing Machines
Limited under a Scheme of Amalgamation in earlier years. (vi) 24,202,188 (Previous Year
24,202,188) Shares were allotted to a Shareholder of erstwhile Whirlpool
Financial India Private Limited under a Scheme of Amalgamation in earlier
years |
Rs.10/- each |
Rs.1268.718 Millions |
|
|
|
|
|
|
152342500 |
10% Redeemable Non Convertible Cumulative
Preference Shares |
Rs.10/- each |
Rs.1523.425 Millions |
|
Total |
|
|
2792.143 Millions |
Notes:
1. 95,153,872 (Previous Year 95,153,872) Equity
shares are held by Whirlpool Corporation Inc.,
2. 152,342,500 (Previous Year 152,342,500)
10% Redeemable Non-Convertible Cumulative Preference Shares are held by
Whirlpool Canada Holding Company, a subsidiary of Whirlpool Corporation Inc.,
3. 10% Redeemable Non-Convertible
Cumulative Preference Shares are redeemable at par at the earliest of the
following events :
(i) at the end of 20 years from the date of
allotment i.e June 20, 2005 for 108,850,000 shares and August 9, 2005 for
43,492,500 shares;
(ii) at any time after the expiry of 30
days from the date on which the Company gives subscribers a notice of its
intention to redeem the shares;
(iii) within 30 days from the date on which
the subscriber gives the Company a notice of its intention to have the shares
redeemed.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2792.143 |
2792.143 |
2792.143 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
874.933 |
256.924 |
285.978 |
|
|
4] (Accumulated Losses) |
0.000 |
(8.205) |
(713.375) |
|
|
NETWORTH |
3667.076 |
3040.862 |
2364.746 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
190.000 |
|
|
2] Unsecured Loans |
1.527 |
1102.354 |
1895.509 |
|
|
TOTAL BORROWING |
1.527 |
1102.354 |
2085.509 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3668.603 |
4143.216 |
4450.255 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2895.061 |
3058.494 |
3117.721 |
|
|
Capital work-in-progress |
132.719 |
20.187 |
131.519 |
|
|
|
|
|
|
|
|
Intangible Assets |
3.321 |
5.922 |
8.550 |
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
114.757 |
732.527 |
860.301 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4624.863 |
2998.743 |
3449.977 |
|
|
Sundry Debtors |
1397.869 |
820.665 |
1000.427 |
|
|
Cash & Bank Balances |
621.777 |
727.779 |
327.618 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
1591.391 |
794.874 |
918.235 |
|
Total
Current Assets |
8235.900
|
5342.061
|
5696.257 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4756.545 |
2457.889 |
2754.905 |
|
|
Other Current Liabilities |
1832.282 |
2060.577 |
2238.505 |
|
|
Provisions |
1124.328 |
591.551 |
550.479 |
|
Total
Current Liabilities |
7713.155
|
5110.017
|
5543.889 |
|
|
Net Current Assets |
522.745
|
232.044
|
152.368 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
94.042 |
188.346 |
|
|
|
|
|
|
|
|
TOTAL |
3668.603 |
4143.216 |
4450.255 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
21374.815 |
16466.455 |
15124.170 |
|
|
|
Income from Services |
773.943 |
725.162 |
521.496 |
|
|
|
Other Income |
233.753 |
111.472 |
91.121 |
|
|
|
TOTAL (A) |
22382.511 |
17303.089 |
15736.787 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchasing of Trading Goods |
3978.808 |
2209.451 |
1835.954 |
|
|
|
Raw Material Consumed |
10760.727 |
8564.895 |
9128.136 |
|
|
|
Employees Remuneration and benefits |
1603.645 |
1359.388 |
1219.557 |
|
|
|
Operating and other expenses |
4528.990 |
3390.776 |
3174.963 |
|
|
|
Decrease/(Increase) in inventories |
(1135.306) |
259.063 |
(607.961) |
|
|
|
Miscellaneous expenditure Written off |
94.042 |
94.304 |
152.145 |
|
|
|
TOTAL (B) |
19830.906 |
15877.877 |
14902.794 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2551.605 |
1425.212 |
833.993 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
82.684 |
173.214 |
172.429 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2468.921 |
1251.998 |
661.564 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
396.790 |
390.051 |
373.486 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2072.131 |
861.947 |
288.078 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
621.932 |
156.777 |
(35.093) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1450.199 |
705.170 |
323.171 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[8.205] |
[713.375] |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Preference Shares |
417.679 |
0.000 |
-- |
|
|
|
Proposed Dividend on Preference Sahres |
304.685 |
0.000 |
-- |
|
|
|
Tax on Dividend |
122.751 |
0.000 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
596.879 |
[8.205] |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1822.674 |
1704.647 |
1833.887 |
|
|
|
Service Income |
620.667 |
541.674 |
344.459 |
|
|
TOTAL EARNINGS |
2443.341 |
2246.321 |
2178.346 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
2849.999 |
2604.748 |
2342.278 |
|
|
|
Finished Goods |
1580.623 |
774.187 |
1023.491 |
|
|
|
Capital Goods |
135.020 |
64.710 |
279.027 |
|
|
TOTAL IMPORTS |
4565.642 |
16441.695 |
15448.71 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.03 |
4.15 |
1.14 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
8794.800 |
5903.200 |
|
Total Expenditure |
|
7770.700 |
5353.900 |
|
PBIDT (Excl OI) |
|
1024.100 |
549.300 |
|
Other Income |
|
53.000 |
36.100 |
|
Operating Profit |
|
1077.100 |
585.400 |
|
Interest |
|
7.800 |
6.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
1069.300 |
578.600 |
|
Depreciation |
|
109.000 |
106.200 |
|
Profit Before Tax |
|
960.300 |
472.400 |
|
Tax |
|
318.300 |
166.900 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
642.000 |
305.500 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
642.000 |
305.500 |
KEY RATIOS
|
PARTICULARS |
|
31.0.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.48
|
4.08
|
2.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.69
|
5.23
|
1.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
182.68
|
10.25
|
3.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.57
|
0.28
|
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.10
|
2.04
|
3.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
1.04
|
37.38 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
a) Total Outstanding dues of Micro and small enterprises |
7.295 |
5.814 |
18.178 |
|
b) Total outstanding dues of creditors other than Micro and Small
Enterprises |
4749.250 |
2452.075 |
2736.727 |
|
Total |
4756.545 |
2457.889 |
2754.905 |
HISTORY
Whirlpool of
In 1994-95, it tied up with the world-famous Whirlpool Corporation, US and the
company acquired its present name. Currently, Whirlpool Corporation, US, and
its subsidiaries hold a 82.33% equity stake in the company.
To keep pace with the fiercely competitive market and to improve its market
share, the company modernised and expanded its refrigerators (single-, two-,
three-door configurations). The company has also set up a plant to manufacture
dual-coated hermetic-grade enamelled copper wire in technical collaboration
with MAG,
Whirlpool Financial India Limited (WFIL), a 100 per cent subsidiary floated in
early 1996, was merged with subject recently. Earlier, Whirlpool Washing
Machines, a 51 per cent subsidiary, and Expo Machinery, a 100 per cent arm,
were merged with Whirlpool of India.
Subject has entered into a joint venture agreement with the United States-based
Transamerica Distribution Finance (TDF). TDF will hold 72% in the joint venture
company, Whirlpool Apple Consumer Credit Private Limited.
In 1999-2000, the company expanded its product range by launching
Airconditioners and Microwave Ovens for the first time. An indigenously
developed -Coffee Grinder, Bag Dryer and Voltage Stabilizer was launched in
2000-01. During 2001-02 the company launched 'Magic Cool series of
Airconditioners-both Windows and
The Faridabad Plant was certified with ISO:9001:2000 from UL Inc.
During 2004-05, The Company has successfully completed 10 years of its
operations in
Performance of the
Company
During the year ended March 31, 2010 the
sales of the Company, was Rs. 26800.000 Millions, up by 28%. Profit before tax
and extra ordinary items was Rs. 2166.100 Millions as compared to corresponding
profit of Rs. 956.300 Millions in the previous year. The performance of the
Company during the year surpassed all its previous milestones of turnover,
profit, cash generation, working capital and inventory management. This
performance has been achieved by focusing on new product launches, product mix,
management, effective working capital management and cost effective
initiatives.
Sales and
Marketing
The Sales and Marketing approach in 2009-10
was adjusted to changes as they occurred in the external environment. The year started
on a cautious note as the gloom of recession was still hovering over the
country. The emphasis during this period was on cash and profitability rather
than growth, and the focus was on selling a better mix, control on receivables
and inventory. Marketing investment during this period was prudent and in line
with market growth. However, as they approached the end of the fi rst quarter,
it was evident that the government’s fiscal stimulus was having a positive
impact on business and consumer sentiment, signaling the revival of growth.
Accordingly, the company’s marketing approach changed and they shifted gear
from cautious optimism to aggressive growth manifested by raising volume
targets, accelerating the pace of innovation and increasing brand visibility
Key highlights of
Sales and Marketing in 2009-10 were
·
Resounding success
of WhiteMagic 1-2-3, a fully automatic top load washing machine range launched
in 6-7 kg capacity, which grew segment share by 5 percentage points.
·
Complete revamp of
the Semi-Automatic Washing Machine range, including the introduction of a
plastic cabinet line-up.
·
Launch of 35 new
Split Air Conditioners marketed under the Mastermind Chrome and Mastermind
Aviator and 5 new Window Air Conditioners (Mastermind Deluxe and Royale).
·
Launch of 8
microwaves in Convection and Grill, marketed as Whirlpool Magicook.
·
Launch of a new,
premium range of 24 Frost Free Refrigerators in capacities from 300L- 480L
under Whirlpool Protton, including a unique fully automatic 3-door format.
·
Conducting two
large scale dealer contact programmes in September 2009 and March 2010, through
which 15,000 dealers were contacted in 130 towns on each occasion.
·
Conducting Road
Shows for refrigerators - branded “Kabhi Dekha Hai Aise Magic” - in <1 lakh
population towns in 8 states.
·
Increasing effi
ciency in the Distributor channel by focusing on sub-dealer billing numbers and
frequency.
·
Growing business in
Modern Trade where the volume grew by approximately 60%.
·
Launching new
television campaigns for Purafresh Water Purifi er, WhiteMagic 123 Washing
Machine, Whirlpool Protton, Mastermind Air Conditioner and Diwali
FestivalOffer.
·
Association with
Kings XI Punjab during the 2010 IPL as Official Cooling Partner and getting
prominent players to endorse 4 different categories through separate television
commercials
As is evident from the number of product
launches, the company continued product development and innovation even when
growth had slowed down, enabling a number of new products to be launched as the
business environment improved. Whirlpool’s heritage of launching innovative
products with captivating design was maintained in the new launches of 2009-10,
introducing a number of industry first features, many of them using Whirlpool’s
unique 6th Sense technology. Some of these are:
·
WhiteMagic 1-2-3,
·
Protton 3D is
·
The new range of
Mastermind split air conditioners have
The company has recognized the importance
of expanding distribution to meet emerging demand in small towns in
Energy regulations are becoming stringent.
It is now mandatory to declare energy usage in Air Conditioners and Frost Free
refrigerators. The company was among the first to embrace energy standards even
when it was voluntary and it has endeavoured to market products with high
energy efficiency. In the period, the Frost Free range was upgraded with all
products having energy ratings of 4* or 5*. The new range of split air
conditioners are 3* and above, as is the DC range.
Whirlpool is already a preferred brand and
has been made stronger in the past year. Visibility of the brand was heightened
through a number of low-cost initiatives that encompassed mass media, internet
and outdoor. A massive radio blitz was mounted at the start of the summer in
April 2009, followed by an unprecedented cinema plan in June-July. The brand
was present on Television and Print throughout the year. The brand logo was
enlarged on the cartons and painted on delivery trucks. Dealer Boards and
branding of Housing Societies added to the on-street visibility. The
communication was taken to 3900 screens inside important hospitality and
personal
care outlets, f tness centers, hospitals
and chemists in metros and select states. Strategic alliances were forged with reputed
brands and innovative promotions run such as one year’s free supply of Surf
Excel with washing machines and Reebok wrist watches with Whirlpool products
during Diwali. The brand entered the cricket arena first with on-ground
advertising in international one-day fixtures and subsequently as the official
“Cooling Partner” of the Kings XI Punjab in the 2010 edition of IPL. Media
interest in the company has grown with Whirlpool being featured in electronic
media on more than 20 occasions, and leading business channels now routinely
invite Whirlpool on industry and business related subjects.
A number of external recognitions were
awarded to Whirlpool in 2009-2010 :
1. It was voted as one of the top 25 Best
Employers in India 2009 by Hewitt.
2. The Indo-American Chamber of Commerce
rated Whirlpool as the Best US Company in
3. Whirlpool was conferred the Frost and
Sullivan 2009 Business Development Strategy Leadership Award for Residential
Point-of-Use Water Treatment Systems in
4. WhiteMagic 1-2-3 Washing Machine was
voted Product of the Year and received an award for the ‘Best Innovative Product’ in the Washing
Machine category. (This is the second
time that Whirlpool has been recognized with the ‘Best Innovative Product’ by
Product of the Year awarded in 2009 for Frost Free Refrigerators
with 6th sense.)
5. Whirlpool was voted The Most Trusted
Brand by Reader’s Digest in a survey that included quantitative as well as
qualitative rounds of consumer research.
6. Whirlpool’s Genius and WhiteMagic 1-2-3
won GOOD DESIGNR, the world’s most prestigious world design award. This award
comes from The Chicago Athenaeum:
Finally, Brand Whirlpool also contributed
to society. It spread its festive theme of “Sab Ka Jashn, Sabki Jeet” by
partnering with an NGO, GiveIndia, to participate in the ‘Joy of Giving Week’
(September 27 - October 3) and contributed an amount generated from sales on
September 24, 2009 to the underprivileged in the country.
Exports
The Company’s Export business has achieved
a turnover of Rs 1970.000 Millions in 2009-10, which represents a 10% growth in
turnover over 2008-09. This was achieved in spite of the global recessionary
conditions prevailing in most parts of the world. In volume terms too the
company recorded 11% growth over last year implying no deterioration in price
and mix. The reason behind the success was due to the strategic focus on
countries which are less affected by the economic recession, primarily the
Oceania region (
Finance and
Accounts
During the year, the Company has shown
strong business performance on all fronts. The Company focused on all the key
financial parameters, viz. revenue, cost, working capital and cash flow. On the
cost side, the Company continued with its P3B initiative to optimize the cost
footprint including initiatives in “Design to Value” i.e. the product being
redesigned to drive cost efficiencies and enhance margins. During the year the
Company became a debt free Company. The Company also achieved its target of
highest ever cash generation during the year. The company continues to have a
strong focus on cash generation through improvement in inventory and
receivables management.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure
and Developments
Market growth was modest in the first
quarter of the financial year 2009-2010 but picked up as the year progressed.
The General Elections saw the ruling alliance return to power, signaling
political stability at the centre. Strong GDP growth in the face of a
contracting global economy infused confidence in business; the fiscal
stimulus provided relief from inflationary
pressures; and implementation of the 6th Pay Commission stimulated consumer
purchase. All these combined to change the consumer sentiment from apprehension
during the last two quarters of 2008-2009 to positive as the new financial year
progressed. The home appliance industry in particular was among the first to
witness revival of growth.
Overall, the home appliance industry,
comprising Refrigerators, Washing Machines, Microwaves and Air Conditioners, grew
by 15-20%. The estimate of category growth is 15-20% for Refrigerators and
Microwaves and 20-25% for Washing Machines and Air Conditioners.
Some developments that can be seen in the
appliance industry are:
·
There is distinct
preference for high-end products. For example fully automatic washing machines
and split air conditioners are growing faster than the category average.
·
There is higher
demand for large capacity products driven by changing lifestyles, e.g. weekly
vs. daily shopping and infrequent heavy-load washing vs. daily light-load
washing. This is fuelling demand for large capacity refrigerators and washing
machines respectively.
·
Energy
consciousness is increasing and is becoming an important purchase criterion,
especially in Air Conditioners.
·
Consumers are
paying greater attention to design and aesthetics while choosing a brand.
·
Health and wellness
trends have resulted in demand for health-related features in home appliances.
For instance, Water Purification products are increasingly being seen as a
necessity.
·
Barriers to owning
a washing machine (availability of laundry, “dhobi”, and domestic help) are
coming down. This segment has seen high growth over the recent past.
·
Emergence of
modular kitchens has given birth to a new genre of appliances called Built-In
appliances where the products (Ovens, Dishwashers, Hoods, etc.) integrate with
the cabinetry of the kitchen.
·
Trade expectations
have changed. The emergence of “modern trade” has thrown up the necessity for
Trade Marketing and Key Account Management practices as well as improving
customer management practices.
Outlook And
Opportunities
Penetration of home appliances is still
very low and the long term growth opportunity for this industry is very
attractive. Out of every 100 consumers living in urban
Growth is expected at both ends of the
market. Growth of entry level products will be stimulated by first time buyers
while the sophisticated products will be fuelled by the replacement market, new
housing and modular kitchens. Within the home appliance industry, categories/
segments that are expected to grow ahead of the industry average are washing
machines, microwaves and air conditioners.
Outlook on
Threats, Risks and Concerns
Demand is likely to be robust in the next
financial year. However, competitive activity is also likely to rise and a
number of existing competitors have announced investments in new plants and
expansion into new categories and brands. New players are also entering the
country, lured by the attractiveness of the market. These will impose pressure
on market share and advertising and promotion budgets will need to be increased
to maintain brand saliency. Distribution expansion and efficiency will also be
a key driver to stay ahead of competition.
Cost pressures will continue to be a
concern: on one hand, the increase in demand drives inflation of material costs
and on the other, regulations on energy and sustainability will add cost to the
products.
The lack of a well developed supply base of
components and materials necessitates imports and thus there is consequential
risk arising from currency fluctuations.
Segment wise Performance,
Internal Controls and Financial Performance
The company operates in only one segment of
White Goods. Domestic sales in value terms grew by 30% and overall sales grew
by 28%.
CONTINGENT LIABILITIES
|
Particulars |
(As on
31.03.2010) Rs. in millions |
(As on
31.03.2009) Rs. in millions |
|
Claims against the Company not
acknowledged as debts. These claims are in respect of various
cases filed by the ex-employees and consumers. It has been estimated that the
liability arising on the Company should the actions be successful is
Rs.148.751 Millions (Previous Year Rs.150.558 Millions). The legal
proceedings are going on and therefore it is not practicable to state the
timing of any payment. The management is of the opinion that it is possible,
but not probable, that the action will succeed and accordingly no provision
for any liability has been made in these financial statements. |
148.751 |
150.558 |
|
|
|
|
|
Others |
|
|
|
On account of pending appeals of Income Tax |
-- |
-- |
|
On account of pending appeals of Excise Duty |
147.983 |
94.177 |
|
On account of pending appeals of Custom Duty |
25.602 |
22.859 |
|
On account of pending appeals of sales tax assessments |
155.457 |
175.420 |
These cases as mentioned in point (b) above
for which the total estimated liability, should the actions be successful, is
Rs.329.012 Millions (Previous year Rs. 292.456 Millions). The legal proceedings
are going on and therefore it is not practicable to state the timing of any
payment. of all the cases. On the basis of current status of individual case
and as per legal advice obtained by the Company, wherever applicable, the
Company is confident
of winning the above cases and is of view
that no provision is required in respect of these cases.
(c) During the Income-tax assessments of
various years, the Assessing Officers have made certain disallowances of
Rs.1093.847 Millions (Previous Year Rs.510.734 Millions), other than transfer
pricing adjustments over the past few years. The Company’s appeals against
these orders are pending before the CIT Appeals/Appellate Authorities. The
Income-tax department has also appealed against the Company before the
Appellate Authorities for certain matters wherein the CIT Appeals have ordered
in favour of the Company.
The Income Tax Authorities (Transfer
Pricing Officers) have reduced the loss by Rs.973.449 Millions (Previous Year
973.449 Millions) for the Assessment year 2005-06, Rs.796.793 Millions (previous
year Rs.796.793 Millions) for the Assessment year 2004- 05 and Rs.169.909
Millions (previous year Rs.362.814 Millions) for the Assessment year 2003-04 on
account of transfer pricing adjustments. The Company has gone into appeal with
Income Tax Appellate Tribunal against the aforesaid adjustments which have been
adjusted against the brought forward losses from earlier years. Depending on
the outcome of the afore-mentioned cases, assessments for the subsequent
periods to March 31, 2010 could include demands/settlements on the similar
items, amounts whereof could not be ascertained.
The Company has recognized deferred tax
assets considering that there would not be any adjustments to returned losses on
account of the above cases. The management, based on expert opinion, believes
that the Company has good chances of success.
FIXED ASSETS
·
Land Freehold
·
Land Leasehold
·
Leasehold Improvement
·
Buildings
·
Plant and Machinery
·
Furniture, Fixture and
Office Equipment
·
Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE
YEAR ENDED
SEPTEMBER 30, 2010
(Rs. In Millions)
|
Particulars |
3 Months Ended
Sep 2010 Unaudited) |
6 Months Ended
Sep 2010 (Unaudited) |
|
1. Income a) sales (Gross) b) Less: Trade discounts
and Rebate c)
Less : Excise Duty |
8709.500 (670.400) (428.400) |
17275.500 (2036.400) (1057.700) |
|
d)
Net Sales/Income from Operations |
5610.700 |
14181.400 |
|
e)
Other Operating Income |
292.500 |
516.600 |
|
Total Income |
5903.200 |
14698.000 |
|
2. Expenditure |
|
|
|
a) Increase ( - )/ Decrease in stock in trade and work In progress |
(947.900) |
(410.200) |
|
b) Consumption of Raw Materials |
3267.000 |
7193.000 |
|
c) Purchase of Traded Goods |
1222.200 |
2494.700 |
|
c) Employees Cost |
533.600 |
1022.400 |
|
d) Depreciation |
108.200 |
215.100 |
|
e) Other Expenditure |
1279.000 |
2824.700 |
|
Total |
5460.100 |
13339.700 |
|
3. Profit from Operations before Other Income, Interest and
Exceptional Items (1-2) |
443.100 |
1358.300 |
|
4. Other Income |
36.100 |
89.000 |
|
5. Profit before Interest and Exceptional Items (3=4) |
479.200 |
1447.300 |
|
6. Interest |
6.800 |
14.600 |
|
7. Profit after Interest but before Exceptional Items |
472.400 |
1432.700 |
|
8. Exceptional Item-VRS-Amortizations |
-- |
-- |
|
9. Profit ( + )/Loss ( - ) from Ordinary Activities before Tax |
472.400 |
1432.700 |
|
10. Tax Expense |
|
|
|
1.
Deferred Tax |
63.300 |
177.800 |
|
2.
Fringe Benefit Tax |
-- |
-- |
|
3. Income Tax |
103.600 |
307.500 |
|
4. Income Tax (Net of MAT credit entitlement
of Rs.111 Millions, Previous Period Rs. 00.6 Millions; YTD Current Period
Rs.181.700 Millions; YTD Previous Period Rs. 15.100 Millions. Previous Year
Rs. 53.900 Millions.) |
|
|
|
4. Income Tax relating to earlier period |
-- |
-- |
|
11. Net Profit ( + )/Loss ( - ) from Ordinary Activities after Tax |
305.500 |
947.700 |
|
12. Extraordinary Items (Net of Tax Expenses Rs. Nil) |
-- |
-- |
|
13. Net Profit for the period |
305.500 |
947.700 |
|
14. Paid up Equity Share capital (Face Value Rs 10per share) |
1268.700 |
1268.700 |
|
15. Reserves excluding revaluation resolves per balance sheet of the
previous accounting year |
NA |
NA |
|
16. Earning Per Share(EPS) Basic and Diluted before Extraordinary Items Basic and Diluted after Extraordinary Item |
2.13 2.13 |
6.84 6.84 |
|
17. Public Shareholding §
No of
Shares §
Percentage
of Shareholding |
31,717,958 25.00 |
31,717,958 25.00 |
|
18. Promoters and promoter group shareholding a. Pledged Encumbered §
No of Shares §
Percentage01shares(as. %of total share holding of
promoter and promoter group) §
Percentage of shares (as a % of total share
capital of the company) b. Non-encumbered §
No of Shares §
Percentage of shares (as a % of total
shareholding of promoter and promoter group) §
Percentage of shares (as a % of total share
capital of the company) |
Nil NA NA 95153872 100 75 |
Nil NA NA 95153872 100 75 |
NOTES
1.
The Company's operations predominantly comprise
only one product segment i.e. Home Appliances. The above figures reflect this
segment results as per AS 17.
2.
The company has during the current quarter,
redeemed 10% Redeemable Non-Convertible Cumulative Preference Shares amounting
to Rs. 434.900 Millions alongwith up tot the date of redemption. The Board of
Directors at is meeting held on October 28, 2010 have approved further
redemption of 10% Redeemable Non-Convertible Cumulative Preferences Shares
amounting to Rs. 550.000 Millions along with the dividend up to the date of
redemption. The above redemption of preference shares is pursuant to demand
option exercised by Preference shareholders.
3. For the purpose of calculating Earnings Per Share (EPS), the dividend
on preference shares for the period ended September 30, 2010 has been
considered.
4. Exceptional
item for the quarter ended September 30, 2009 of Rs. 23.500 Millions represents
a charge for a voluntary retirement scheme given to certain employees of the
Company in earlier years, which is being charge d off over a period of 60
months.
5. Details of Numbers of Investor complaints during the quarter ended
September 30, 2010: Opening -Ni, Received and Disposed off -Nil, Pending -Ni.
6. Previous period figures have been regrouped wherever necessary.
8. The above results, as reviewed by the audit committee, have been
approved by the Board of Directors in its meeting held on October 28, 2010.
9. The statement of Assets and Liabilities as at September 30, 2010 is
as given below.:
(Rs. In Millions)
|
Particulars |
30.09.2010 (Unaudited) |
|
Shareholders’ Funds: |
|
|
a) Capital |
2357.200 |
|
b) Reserves and Surplus |
1805.900 |
|
Deferred Tax Liability (Net) |
63.000 |
|
Loan Funds |
0.600 |
|
Total |
4226.700 |
|
|
|
|
Fixed Assets |
3078.000 |
|
Investments |
-- |
|
Deferred Tax Assets (Net) |
-- |
|
Current Assets, Loans and Advances |
|
|
a) Inventories |
5042.800 |
|
b) Sundry Debtors |
1213.700 |
|
c) Cash and Bank Balances |
822.800 |
|
d) Other Current Assets |
-- |
|
e) Loans and Advances |
1565.900 |
|
Less: Current Liabilities and Provisions |
|
|
a) Liabilities |
6535.600 |
|
b) Provisions |
960.900 |
|
Miscellaneous Expenditure (to the extent not written off or
adjustment) |
-- |
|
Profit and Loss Account |
-- |
|
Total |
4226.700 |
Limited Review
The limited Review
as required under Clause 41 of the listing Agreement has been completed by the
Statutory Auditors for the quarter ended September 30, 2010. The Corresponding
figures as at September 30, 2009 in the
statement of Assets and Liabilities have not been reviewed by the Statutory
Auditors.
AS PER WEBSITE DETAILS
Corporate Info: Core Competencies
Innovation: Unique and compelling solutions valued by the
customers and aligned to the brands create competitive advantage and
differentiated shareholder value.
Operational Excellence (OPEX): A methodology for
solving problems and continuous improvement of products and processes through
pursuit, acquisition, and utilization of knowledge using critical thought and
planned experimentation helps them achieve operational excellence.
Customer Excellence: Excelling the customer expectation from the
company, its brands, products and services are a three-step process. The three
steps are: Know a customer, Be a customer, Serve a customer.
Knowing
a customer helps them know who the customers are, how to treat them, how they
add value, and what the drivers of brand loyalty are. This information is
gathered from the customer's data base history. This way they are better able
to customize products for them and recommend the right product to solve
problems. Being a customer is important to share customer knowledge and
insights, drive actions based on customer insights, be passionate about the
brands and customer loyalty and provide a positive voice for the brands. They
show empathy for customers and seek to resolve their problems by creating
consistent customer touch-points, with the endeavor always being to provide
unique solutions for the customer.
Corporate Info: History
Whirlpool Corporation has been honored with two iF Product
Design Awards 2009, respectively, for the Whirlpool Glamour Oven and for
GREENKITCHEN, a kitchen eco-system design concept. The announcement was made in
Nov 08 by the if Industries Forum Design GmbH., and represents GREEN Kitchen's
second design award in the past two months, following its Gold SPARK Award, won
in October 2008.
2009: Whirlpool was voted Product of the Year and received
the award for the 'Best Innovative Product' in the popular refrigerators
category. This was based on 40,000 consumers across 36 towns in
2009: Hewitt ‘Best Employers in
2009: Named one of the “100 Best Corporate Citizens” by Chief
Responsibility Officer (formerly Business Ethics) magazine in 2009 and from
2000-2007
2008: Included in the Dow Jones Sustainability, FTSE4Good
and KLD Global Sustainability Indexes, three of the world’s most comprehensive
reviews of sustainable business practices
2008: Whirlpool brand was named one of the 10 top greenest
brands by
2008: Named one of the “2008 World’s Most Ethical Companies”
by Ethisphere magazine
2008: Whirlpool OF
2008: The year 2008-09 saw Whirlpool
2008: The Business Today - Mercer
-TNS Study – 2008. ‘Top 20 Best Companies to work for in
Sustainability Leadership Recognition
Received the 2009 ENERGY STAR Sustained Excellence award,
the company’s 10th ENERGY STAR award in 11 years.
Whirlpool brand was named one of the 10 top greenest brands
by
The LEAF House received Legambiente’s (
Founding sponsor of the
Commitment to Employees Recognized
·
Named one of the “Top 20 Global
Companies for Leaders” by FORTUNE magazine for focus on developing leaders
within the company
·
Named one of the top 50 companies for
African-American MBAs to work by Black MBA magazine
·
Named one of "The Best Companies
to Work For" in
·
Named one of the “50 Best Employers in
·
Named one of the “Best Companies to
Work for in
·
Named one of “25 Noteworthy Companies
for Diversity” by DiversityInc magazine for the excellent community
philanthropy, employee-resource groups and measurement of diversity success
·
Received a score of 100 percent on the
Human Rights Campaign’s Corporate Equality Index for six consecutive years
(2004-2009)
·
2007: Received the 2007 Cause Marketing
Golden Halo Award for Business,
·
2006: Whirlpool Corporation acquires
Maytag and become the Worlds largest white goods company.
·
2006: Honored with the 2006 National
Award for Ethics and Values from the Confederación de Cámaras Industrials de
loss Estados Unidos Mexicans.
·
2005: Received the 2005 American
Business Ethics Award, which honors companies that exemplify high standards of
ethical behavior in their everyday business conduct.
·
2003: A new mission statement of
"Everybody creating loyal customers for life" was adopted.
·
2002: The Aircon range was successfully
launched and the Whirlpool of India acquired 6% market share.
·
2001: Whirlpool
·
2002: The ' Whirlpool Strategic
Architecture ' was launched as a famework to achieve the vision. The revenues
of Whirlpool Corp. soared to $10.5 Billion.
·
1999: Whirlpool of
·
1998: This year gave birth to a new company
vision that says, "Every Home Everywhere with Pride, Passion and
Performance."
·
1996: Whirlpool Washing Machines
Limited and Kelvinator India Limited merged together to form Whirlpool of India
Limited
·
1995: Whirlpool Corp. acquired majority
of stake in the TVS Whirlpool Limited The DC manufacturing facility of
Kelvinator
·
1993: First time Whirlpool became the
No.1 stand-alone brand in
·
1991: The company introduced and
committed globally to its Worldwide Excellence System, which is a TQM program
dedicated to exceeding customer expectations. The vision to globalize
'Whirlpool Corp'. was realized in the same year.
·
1990: Company established joint venture
with Matsushita Electric Company of
·
1989: This was a historic year since
the revenues catapulted to heights of over $6 Billion mark. Also, the joint
venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed
to manufacture and market appliances in
·
1987: Whirlpool tied-up with Sundaram
Clayton Limited of
·
1986: The 'Kitchen Aid' division of
Hobart Corporation was purchased.
·
1978: Within a decade company doubled
its feat of $1 Billion mark and reached the $2 billion revenue level.
·
1968: The
·
1958: The company moved out of country
for the first time and invested in Brazilian appliance market through purchase
of equity in Multibras S.A.
·
1957: The company was rechristened as '
The Whirlpool Corporation.'
·
1948: First 'Whirlpool' brand automatic
washer with dual distribution was introduced. It included two product lines one
each was distributed through Sears and Nineteen Hundred.
·
1929: Upton Machine Company merged with
Nineteen Hundred Washer Company of NewYork .
·
1916: First order of washers was sold
to Sears, Roebuck and Co.
·
1911: Louis Upton founded the Upton
Machine Company in this year to produce motor-driven wringer washers.
·
1908: The first Automatic washer was
launched to public in late 1908, by 1900 Corporation which in 1911 was renamed
to Upton Machine Company.
Corporate Indo: Transformation Streams
Whirlpool
is transforming into a completely customer-centered company where the customer
lies in the core of every of the functions. This focus has arrived as direct
consequence of the core competency of customer excellence. It allows them to
build Customer Loyalty. The transformation is made up of five elements:
·
Market leadership through customer
loyalty
·
Innovation
·
Diversity with inclusion and core competencies
·
Passion for customer excellence
·
Operational excellence
The
elements of the transformation hold the promise of making Whirlpool a growing
company and thereby increasing value for the shareholders. The five elements
are the basis for describing the strategy internally and guide the development
of the plans and initiatives.
Whirlpool has swiftly moved from
being a World Class Manufacturer to a World Class Marketer using the
brand-building framework. They are dedicated to creating unique branded solutions
that build customer loyalty and achieve brand excellence.
Corporate Info: Whirlpool
Whirlpool,
right from its inception in 1911 as first commercial manufacturer of motorized
washers to the current market position of being world's number one manufacturer
and marketer of major home appliances, has always set industry milestones and
benchmarks. The parent company is headquartered at
Whirlpool
initiated its international expansion in 1958 by entering
Soon
Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into
Indian refrigerator market as well. The same year also saw acquisition of major
share in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions
were merged to create Indian home appliance leader of the future, Whirlpool
Today,
Whirlpool is the most recognized brand in home appliances in
In
the year ending in March '09, the annual turnover of the company for its Indian
enterprise was Rs.17190.000 Millions.
The company's brand and image speaks of
its commitment to the homemaker from every aspect of its functioning. It has
derived its functioning principles out of an undaunted partnership with the
homemakers and thus a slogan of “You and whirlpool, the world's best homemaker”
dots its promotional campaigns. The products are engineered to suit the
requirements of ‘smart, confident and in-control' homemaker who knows what she
wants. The product range is designed in a way that it employs unique technology
and offers consumer relevant solutions.
Press Release
Whirlpool
of
Unveils
Durga Puja and Diwali promotion offer ‘Is
Diwali April Fool Bano Ya Whirlpool Chuno’ and launches
innovative products across five categories
Kolkata,
September 30, 2008: Partnering the consumers and adding
more magic to the festive season, Whirlpool Corporation, world’s No.1 Home
Appliance Company and one of India’s leading durables marketers; today unveiled
their festive promotion “IS
DIWALI APRIL FOOL BANO YA WHIRLPOOL CHUNO”. The company also
launched a whole new range of innovative products across five categories
(Refrigerators, Washing Machines, Air Conditioners, Microwave Oven and Water
Purifiers
Whirlpool
of
Providing
an insight on the consumer buying trend this festive season, Mr. Tamal Kanti
Saha, Vice President, Sales, Whirlpool Of
Whirlpool’s
consumer promotion for the festive period, ‘Is Diwali April fool bano ya
Whirlpool chuno’, promises to give the best – in – class real value to
its consumers. Apart from assured gifts that varies from winning a win dinner
set, pendant, etc on scratching the Whirlpool scratch card, the consumers will
also get a chance to win assured discounts, i.e., scratch and get assured
discounts of upto Rs. 2000/- on Whirlpool Purafresh Water Purifiers. This is
not it, to provide more value to the customers, consumers can also win 20
Whirlpool grill mechanical microwave at a special price of Rs. 3500/- with
Whirlpool’s Special Microwave Combo offer and win also avail Magi Club
vouchers* worth Rs. 3500/- and above
Whirlpool
‘Is Diwali April Fool Bano Ya Whirlpool
Chuno’ offer
·
Assured Gifts Scratch and get a chance
to win dinner set, pendants etc.
·
Assured Discount Scratch and get
assured discount of up to Rs.2000 on Purafresh Water Purifiers
·
Special Microwave Combo Offer Get 20
grill mechanical microwave oven at a special price of Rs.3500/- on focus
category only.
·
Magiclubvouchers worth Rs.3500+ Offer applicable on select products and in
select cities only
Launch
of
·
Genius and
Fusion Refrigerators
·
Professional
washing machines
·
Max
Microwaves
·
Mastermind Air
conditioners
·
‘Purafresh’
Reverse Osmosis Water Purifiers
Announcing
the Consumer Promotion offer, Mr. Tamal Kanti Saha, Vice President, Sales,
Whirlpool Of India, said “We have
always believed in understanding the needs of the consumers and providing them
with a Real Value solution. This year the festive promotion yet again
reiterates the commitment to our consumers. This year’s Diwali offer by
Whirlpool has been made by considering the prevailing market scenario and
consumer’s interface with promotions in the past few years.” “With the launch
of this innovative Festive Promotion ‘IS DIWALI APRIL FOOL BANO YA WHIRLPOOL
CHUNO’, the company expects a growth of 20% over 2007 this festive
season”, he further added
Further adding to the
festive spirit, Whirlpool of India unveiled it new range of products that
includes Whirlpool revamped ‘Genius
and Fusion’ range of refrigerators, Whirlpool ‘Professional’ series of washing
machine and Refrigerators, Whirlpool ‘Mastermind’ air conditioners, Whirlpool ‘Max’ Microwave Ovens and
Whirlpool ‘Purafresh’ Reverse Osmosis Water
Purifiers. All the newly launched products boast company’s patented 6th Sense technology connoting
intuitive understanding of a woman’s needs.
Unveiling
the new range of innovative products, Mr. Saha said, “Understanding our consumers and innovating accordingly has always been
our focus. With the launch of the innovative range of products, we aim to
provide our consumers the best possible solution, a mix of innovation and
technology. We are confident that our newly launched products will create the
magic in Homemaking”
The
newly launched products and the consumer Promotion will be supported by a
multi-media campaign including Brand New TVC. The promotion will also be
supported in Print and through a host of below the line activities such as
innovative marketing tie-ups, in-shop display, promotions, direct marketing and
product demonstrations.
Currently,
Whirlpool products are available across 12,000 retail outlets across the
country.
About
Whirlpool:
Whirlpool
Corporation is the world’s leading manufacturer and marketer of major home
appliances, with annual sales of more than $19 billion, more than 80,000
employees, and more than 60 manufacturing and technology research centers
around the world. The company markets Whirlpool, Maytag, Kitchen Aid,
Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names to consumers
in nearly every country around the world. Additional information about
the company can be found at http://www.whirlpoolcorp.com.
Offer
applicable on select products and in select cities only
About
Whirlpool Genius
·
Unique Features
·
Colour Finishes: All
new range of colours and finishes
·
6th Sense Fast Forward Ice -
Makes ice 30% faster
·
Fresh Ever Vegetable Box –
keeps the vegetables fresh for longer period of time
·
Health Guard:
Special anti bacterial coating on the gaskets prevents germs and bacteria from
growing and thereby contaminating the refrigerator
·
Unique utility drawer – Genius
comes with 20 its extra storing space for items that does not need
refrigeration
·
Jumbo Bottle Rack –
Stores 2 liter bottles with ease.
Whirlpool
‘Genius with Fast Forward
Ice’ is available in 8 finishes in the capacity of 180
liters, priced between Rs. 8,200 to Rs. 10,800
About
Whirlpool Fusion
Unique
Features
·
6th Sense Frost Control:
Automatically maintains optimum level of frost inside the freezer. Provides
freedom from the hassle of defrosting.
·
6th Sense Auto Cool:
Automatically adjusts the cooling according to the change in seasons and
according to the frequency of door opening. Ensuring that all the food items
are kept at the optimum temperature, thereby maintain freshness for a longer
duration.
·
E-light: For
the 1st time ever, an emergency light on the refrigerator. Provides light
equivalent to a 40 watt bulb for 2 hrs during a power cut.
·
6th Sense Fast forward Ice: Makes
ice super quick, up to 30% faster
Retains
cooling for up to 17hrs during a power cut: Keeps food fresh during the long
power cuts that are prevalent in most parts of
Whirlpool
‘Fusion’ is
available in 4 finishes in the capacities of 200, 230 and 260 liters,
priced between Rs 10,700 to Rs 13,900
About
Whirlpool ‘Mastermind’ Air Conditioners
Unique
Features –6th Sense MPFI Cooling System: The 6th Sense MPFI
cooling system technology uses a unique Multi Capillary design which provides
instant cooling while reducing the power consumption. The benefit: Faster
cooling at Lower Power consumption.
Spectra
wide Heat Exchangers: Spectra wide heat Exchangers ensure
better air distribution through maximizing the surface area. This unique
angular design ensures better cooling as compared to conventional air
conditioners.
Energy
Rating: The Mastermind range of Air Conditioners is extremely
energy efficient and is certified by Bureau of Energy Efficiency. The
mastermind ranges of Air Conditioners are available from 1 to 4 Star rating.
This helps consumer save Rs 6500 on Electricity bills annually.
HEPA
Filter: The HEPA (High Efficiency Particulate Air) filter,
introduced for the first time in the Split AC segment in
6th
Sense Air Flow: Automatically selects an appropriate run mode (Cool, Fan,
Dry) according to indoor temperature. This is made possible by an intelligent
microprocessor which has been designed keeping in mind the comfort
requirements.
Whirlpool
‘Mastermind’ Air conditioners are available in 4 capacities (0.8Ton, 1 ton, 1.5
Ton, 2 Ton) in both Window and
About
Whirlpool Professional Washing Machine
Unique
Features:
·
6th Sense Intelligent features- Hot wash,
6th sense feature enabling optimal water and det level selection as per wash
load
·
Wool-Mark Approved -
Allows the user to wash delicates and woolen clothes in the machine without
worrying about the clothes getting distorted.
·
CE Approved -The machine
is perfectly safe and conforms to essential requirements of the relevant
European health, safety and environmental protection legislation.
·
Whirlpool ‘Professional’ is available in 5-7 Kgs capacities,
priced between Rs.16,000 – Rs. 27,000
About
Whirlpool Max Microwave ovens: The first ever super ever compact
microwave oven, offering large cooking capacity with 28cm turn table
Unique
Features:
·
Round in shape and not rectangular
·
28 cm turntable
·
Micro Tawa and Crisp Function
·
LCD Electronic Display
·
Painted steel cavity
·
3D System
·
Quartz Grill
·
Crisp Function
·
Jet Defrost
·
Jet Start
·
Child Lock
·
5 Power levels
·
30’ Minute timer
·
24 Hour Clock
·
Max will be available in 6 vibrant
colors
About Whirlpool
‘Purafresh’ Reverse
Osmosis Water Purifiers
Unique
features
·
The range constitutes of:
·
Purafresh Deluxe (Ideal for a small
family)
6.5 liter tank capacity
Water level indicator to suggest level of water in the tank
Automatic operation
·
Purafresh Elite (Idea for large family)
8.5 Liter tank capacity
Child lock for preventing spillage due to wrong use by child
Automatic operation
·
Purafresh Platinum – First DIRECT FLOW
RO in Indian market without tank (Ideal solution for a modern home with stylish
kitchen)
Unique features (first time in
·
Online RO water - Flow rate 72 liter
per hour
·
Unique electronic consumer interface to
show all product function
·
Filter change indicator (which suggest
the time to change the filter/membrane)
·
Very high efficiency advance RO
membrane (750 Gallon Per Day output)
·
The new products are priced between Rs.12,500
– Rs. 22,900. The entire Purafresh range comes with 6th Sense Purify and
Protect Technology, through impregnated silver ceramic cartridge
CMT REPORT (Corruption, Money Laundering and
Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No records exist designating subject or any
of its beneficial owners, controlling shareholders or senior officers as
terrorist or terrorist organization or whom notice had been received that all
financial transactions involving their assets have been blocked or convicted,
found guilty or against whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist
to suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceeding for making any
prohibited payments or other improper payments to government officials for
engaging in prohibited transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
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.45.30 |
|
|
1 |
Rs.71.73 |
|
Euro |
1 |
Rs.60.40 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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.