MIRA INFORM REPORT

 

 

Report Date :

21.03.2011

 

IDENTIFICATION DETAILS

 

Name :

NESTLE INDIA LIMITED

 

 

Formerly Known As :

FOOD SPECIALITIES LIMITED

 

 

Registered Office :

M-5A Connaught Circus , New Delhi- 110001, Delhi

 

 

Country :

India

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

28.03.1959

 

 

Com. Reg. No.:

55-3786

 

 

CIN No.:

[Company Identification No.]

L15202DL1959PLC003786

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELN0507C

 

 

PAN No.:

[Permanent Account No.]

AAACN0757G

 

 

Legal Form :

A Public Limited Liability company. The company’s shares are listed on the Stock Exchange

 

 

Line of Business :

Subject is engaged in Manufacture of Milk Products, Soluble Beverage Powder, Soyabean Based Products, Surplus Fat, Other Foods -Own Manufacture and Outside Manufacture.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (77)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 23300000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists

 

 

Comments :

The company was promoted by Nestle S.A Switzerland and sells over 30 branded products including coffee, tea, milk products, snacks dressing, soups, noodles, chocolates etc.

 

Subject is a well established and a reputed multinational company having good track. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company 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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

M-5A Connaught Circus , New Delhi- 110001, Delhi, India

Tel. No.:

91-11-23329507 / 23320379 / 23712741 / 2332 9891/23418891

Fax No.:

91-11-23329297 / 23314812 / 23722756 / 2372 5130/23415130

E-Mail :

investor@in.nestle.com

Website :

www.nestle.in

 

 

Head Office :

Nestle House, Jacaranda Marg ‘M’ Block, DLF City Phase II, Gurgaon – 122 002, Haryana, India

Tel No.:

91-124-2389300

 

 

Factory  :

Village Maulinguem (North), Bicholim Taluka – 403 504, Goa, INDIA

 

Plot No. 294-297, Usgao Industrial Area, Ponda – 403 406, Goa, INDIA

 

Ludhiana-Ferozepur Road, Near Kingwah Canal, Moga – 142 001, Dist. Moga, Punjab, INDIA

 

Industrial Area, Nanjangud – 571 301, Mysore District, Karnataka, INDIA

 

P. O. Cherambadi – 643 205, Dist. Nilgiris, Tamilnadu, INDA

 

Patti Kalyana, Kiwana Road, Samalkha – 132 101, Dist. Panipat, Haryana, India

 

Plot No. 1, Sector No. - IA, Integrated Industrial Estate, SIDCUL, Pantnagar - 263 145, District Udhamsingh Nagar (Uttarakhand), INDIA

 

 

Branches :

Located at

 

v      Tamilnadu

v      West Bengal

v      Maharashtra

v      New Delhi

 

 

DIRECTORS

 

As on : 31.12.2009

 

Name :

Mr. Antonio Helio Waszyk

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Shobinder Duggal

Designation :

Director - Finance and Control

 

 

Name :

Mr. Michael W.O. Garrett

Designation :

Non Executive Director

 

 

Name :

Mr. Ravinder Narain

Designation :

Non Executive Director

 

 

Name :

Mr. Christain Schmid

Designation :

Director – Technical

 

 

Name :

Dr. Rakesh Mohan

Designation :

Non Executive Director

 

 

Name :

Mr. Richard Sykes

Designation :

Alternate Director to Michael W.O. Garrett

 

 

Name :

Mr. Pradeep Baijal

Designation :

Non Executive Director

 

 

Name :

Dr. Swati A. Piramal

Designation :

Non Executive Director

 

 

 

 

KEY EXECUTIVES

 

Name :

Mr. B Murli

Designation :

Senior Vice President – Legal and Company Secretary

 

 

Management Committee

 

Mr. Antonio Helio Waszyk - Chairman and Managing Director

Mr. Shobinder Duggal - Finance and Control

Mr. Ganesan Ampalavanar - Sales

Mr. Biplab Baksi - Human Resources

Mr. Shivani Hegde - Foods

Mr. B. Kanann - Chocolate and Confectionery

Mr. Sanjay Khajuria - Corporate Affairs

Mr. Vineet Khanna - Supply Chain

Mr. Virat Mehta - Communications

Mr. B. Murli - Legal and Company Secretary

Mr. Kumaran Nowuram - Dairy

Mr. G.G. Pillai - Nestle Professional

Mr. Christian Schmid - Technical

Mr. Rajkamal Sharma - Exports

Mr. Gary Tickle – Nutrition

Mr. Ajoy Titus - Beverages

 

 

 

 

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

 

 

(1) Indian

 

 

 

 

 

(2) Foreign

 

 

b) Bodies Corporate

60515079

62.76

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

a) Mutual Funds / Axis Bank

2078858

2.16

b) Financial Institutions / Banks

869729

0.90

c) Insurance Companies

5099693

5.29

d) Foreign Institutional Investors

10299180

10.68

 

 

 

B(2) Non-Institutions

 

 

a) Bodies Corporate

1715646

1.78

b) Individuals-

 

 

i. Individual shareholders holding nominal share capital upto Rs.0.100 million

9917410

10.29

ii. Individual shareholders holding nominal share capital upto Rs.0.100 million

5556384

5.76

c) Non-Resident Individual

363737

0.38

 

 

 

Total

96415716

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in Manufacture of Milk Products, Soluble Beverage Powder, Soyabean Based Products, Surplus Fat, Other Foods -Own Manufacture and Outside Manufacture.

 

 

Products :

Product Description

Item Code No. (ITC Code)

Soluble Coffees, Coffee Blends and Tea

21.01.0000

Preparation of Milk, Cream and Cereals

19.01.0000

Milk Concentrated or Condensed

04.02.0000

Noodles

19.02.0000

 

PRODUCTION STATUS AS ON 31.12.2009

 

Particulars

 

 

Unit

#Actual Production

Milk Products and Nutrition

 

 

MT

135391

Beverages

 

 

MT

23353

Prepared dishes and cooking aids

 

 

MT

156601

Chocolate and confectionery

 

 

MT

44593

 

Note :

  1. # Includes product manufactured by contract manufacturers on conversion basis.

 

  1. Comprises 72,502.5 MT treated as licensed capacity which includes 50,000 MT (50,000 MT) covered by Industrial Entrepreneurs Memorandums in terms of Notification No. 477(E) dated 25th July, 1991 of the Department of Industrial Development, Ministry of Industry, Government of India. Licensed capacity is not applicable for the balance.

 

  1. The products are manufactured in integrated plants as certified by the Management on which the Auditors have relied. Hence, in respect of all the above class of goods, individual installed capacities cannot be given, as they are mainly dependent on product mix.

 

  1. Actual production and purchases include purchase of 17,725 MT (13,806 MT) in Milk Products and Nutrition, 322 MT (309 MT) in Beverages, Nil MT (455 MT) in Prepared dishes and cooking aids, 155 MT (61 MT) in Chocolate and Confectionery. The total value of these purchases is Rs. 589.642 millions (Rs. 502.268 millions)

 

GENERAL INFORMATION

 

No. of Employees :

4000 (Approximately)

 

 

Bankers :
  • Citibank NA
  • HDFC Bank Limited
  • lClCl Bank Limited
  • Standard Chartered Bank
  • Punjab National Bank
  • Deutsche Bank
  • State Bank of Hyderabad

 

 

Facilities :

SECURED LOAN

31.12.2008 (Rs. In Millions)

Loans From Banks

 

Secured by a first pari passu charge on all movable assets (excluding plant and machinery), finished goods, work-in-progress, raw material and book debts.

8.177

Total

8.177

 

Banking Relations :

--

 

 

Auditors :

 

Name :

A F Ferguson and Company

Chartered Accountant

Address :

9 Scindia House, Kasturba Gandhi Marg, New Delhi- 110001, India

 

 

Memberships :

v      Confederation of Indian industry

 

 

Holding Company :

v      Nestle S A

v      Maggi Enterprises Limited

 

 

Associates/Subsidiaries :

v      Belte Schweiz AG

v      Galderma India Private Limited

v      Nestec York Limited

v      Nestlé (Fiji) Limited

v      Nestlé (China) Limited

v      Nestlé(PNG) Limited

v      Nestlé (South Africa) (Pty) Limited

v      Nestlé (Thai) Limited

v      Nestlé Australia Limited

v      Nestlé Bangladesh Limited

v      Nestlé Brazil Limited

v      Nestlé Central And West Africa Limited

v      Nestlé Deutschland AG

v      Nestlé Egypt S.A.E

v      Nestlé Foods Kenya Limited

v      Nestlé France S.A.S,

v      Nestlé Ghana Limited

v      Nestlé Hong Kong Limited

v      Nestlé Hungaria Kft

v      Nestlé Iran (Private Joint Stock Company)

v      Nestlé Japan Limited

v      Nestlé Korea Limited

v      Nestlé Kuban LLC

v      Nestlé Lanka PLC

v      Nestlé Manufacturing (Malaysia) Sdn. Bhd

v      Nestlé Middle East FZE

v      Nestlé Nederland B.V

v      Nestlé Nigeria PLC

v      Nestlé Pakistan Limited

v      Nestlé Philippines Inc,

v      Nestlé Polska S.A

v      Nestlé Product Technology Centre Lebensmittelforschung GMBH

v      Nestlé Products Sdn..Bhd

v      Nestlé R and D Centre (Pte) Limited

v      Nestlé Romania S.R.L

v      Nestlé Shanghai Limited

v      Nestlé Singapore (PTE) Limited

v      Nestlé Suisse S.A

v      Nestlé Taiwan Limited

v      Nestlé Tianjin Limited

v      Nestlé Trading (Fiji) Limited

v      Nestlé Turkiye Gida Sanayi A.S

v      Nestlé UK Limitrd

v      Nestlé USA Inc

v      Nestlé Vietnam Limited

v      Nestlé Waters Supply Est

v      Nestrade-Nestlé World Trade Corporation

v      Osem Food Industries Limited

v      Osem UK Limited

v      PT Nestlé Indonesia

v      Servcom SA

v      Société des Produits

v      Nestlé S.A.

v      Speciality Foods India Private Limited

v      Nestlé Canada Inc

v      Nestlé Bolivia S.A

v      Nestlé Waters France S.A.S

v      Nestlé R and D Center Shanghai Limited

v      Nestlé Italiana S. P. A

v      Nestlé Maroc S.A

v      Nestlé Portugal S.A

v      Nestlé Panama S.A

v      Nestlé Senegal

v      Nestlé Adriatic doo,

v      Nestlé New Zealand Limited

v      Nestlé Shuangcheng Limited

v      Nestlé Mexico S.A.de C.V

v      Nestlé's Products (Mauritius) Limited

v      Nestlé Business Services S.A.

v      Nestlé Dongguan Limited

v      Nestlé Equatorial Africa Region (EPZ) Limited.

v      Nestlé Cesko S.R.O., Nestlé Product

v      Technology Centre

v      Nestlé Asean (Malaysia) Sdn. Bhd.,

v      Societe Pour L’Exportation Des Produits Nestlé S.A.,

v      Al Manhal Water Factory Company Limited

v      Nestlé Syria Limited

v      Nestlé Manufacturing Limited

v      Nestlé Waters Product Technology Centre

v      Nestlé (Ireland) Limited

 

 

CAPITAL STRUCTURE

 

As on : 31.12.2009

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity Share

Rs.10/- Each

Rs. 1000.000

millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

96415716

Equity Share

Rs.10/- Each

Rs. 964.157

millions

 

 

 

 

 

Note:

 

Of the Above:

 

  1. 73413626 Shares of Rs. 10 each (Previous year 73,413,626) were allotted as fully paid-up bonus shares by capitalization of general reserves Rs. 73.897 millions (Previous year Rs. 73.897 millions) and share premium Rs. 660.239 millions (Previous year Rs. 660.239 millions).
  2. 736331 Shares of Rs.10 each (Previous year 736,331) were allotted as fully paid up pursuant to a contract without payment being received in cash.

 

Of the Above:

 

  1. 32166274 Shares of Rs.10 each (previous year 32166274) are held by Nestle S.A
  2. 27463680 Shares of Rs.10 each (Previous year 27463680) are held by Maggi Enterprises Limited =, the ultimate holding company being Nestle S.A

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2009

31.12.2008

31.12.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

964.157

964.157

964.157

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4848.793

3769.340

3220.084

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

5812.950

4733.497

4184.241

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

8.177

28.711

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

8.177

28.711

DEFERRED TAX LIABILITIES

319.972

368.810

286.974

 

 

 

 

TOTAL

6132.922

5110.484

4499.926

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8962.048

7529.922

6018.085

Capital work-in-progress

796.273

1091.689

736.979

 

 

 

 

INVESTMENT

2032.555

348.992

944.014

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4987.379
4349.117

4012.153

 

Sundry Debtors
641.863
455.933

534.901

 

Cash & Bank Balances
1555.863
1936.893

377.604

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
1380.487
1237.589

1453.883

Total Current Assets
8565.592
7979.532

6378.541

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
5875.906
5066.494

4599.744

 

Provisions
8347.940
6773.157

4977.949

Total Current Liabilities
14223.846
11839.651

9577.693

Net Current Assets
(5658.254)
(3860.119)

(3199.152)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6132.622

5110.484

4499.926

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2009

31.12.2008

31.12.2007

 

SALES

 

 

 

 

 

Income

51293.767

43242.450

35043.532

 

 

Other Income

377.976

338.852

254.405

 

 

TOTAL                                     (A)

51671.743

43581.302

35297.937

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Consumed and Purchase of goods

24570.317

21386.673

17522.681

 

 

Manufacturing and other Expenses

16465.167

13563.778

11231.159

 

 

Adjustment due to Increase/ Decrease in finished goods

(86.545)

(345.448)

(673.059)

 

 

Impairment loss / Gain on fixed Assets

103.168

3.084

11.758

 

 

Provision for contingencies

323.201

304.916

(590.367)

 

 

Additional Employee Cost

0.000

0.000

753.650

 

 

TOTAL                                     (B)

41375.308

34913.003

28255.822

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

10296.435

8668.299

7042.115

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

13.985

16.430

8.545

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

10282.450

8651.869

7033.570

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1112.692

923.601

747.432

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

9169.758

7728.268

6286.138

 

 

 

 

 

Less

TAX                                                                  (I)

2619.730

2387.446

2148.016

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

6550.028

5340.822

4138.122

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1001.053

125.159

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

655.003

534.082

NA

 

 

Interim Dividend

3.470

2.217

NA

 

 

Final Proposed

1.205

1.156

NA

 

 

Special

--

723.118

NA

 

 

Corporate Dividend Tax

794.713

696.398

NA

 

BALANCE CARRIED TO THE B/S

1454.391

1956.971

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

2453.405

2682.417

2782.554

 

 

Commission Earnings

807.696

670.148

476.934

 

 

Other Earnings

0.474

21.612

7.432

 

TOTAL EARNINGS

3261.575

3374.177

3266.920

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1925.727

878.110

725.956

 

 

Stores & Spares

65.663

69.028

53.826

 

 

Capital Goods

533.150

920.389

480.361

 

 

Others

62.238

71.981

13.722

 

TOTAL IMPORTS

2586.778

1939.508

1273.865

 

 

 

 

 

 

Earnings Per Share (Rs.)

67.94

55.39

42.92

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

31.03.2010

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 Sales Turnover

14854.200

14713.000

16414.000

16755.200

 Total Expenditure

11709.700

11794.100

13136.200

13594.700

 PBIDT (Excl OI)

3144.500

2918.900

3277.800

3160.500

 Other Income

34.900

55.300

54.000

93.400

 Operating Profit

3179.400

2974.200

3331.800

3253.900

 Interest

5.500

3.700

0.500

1.000

 Exceptional Items

0.000

0.000

0.000

0.000

 PBDT

3173.900

2970.500

3331.300

3252.900

 Depreciation

309.900

303.900

305.800

357.900

 Profit Before Tax

2864.000

2666.600

3025.500

2895.000

 Tax

845.400

718.300

839.900

861.000

 Reported PAT

2018.600

1948.300

2185.600

2034.000

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

2018.600

1948.300

2185.600

2034.000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2009

31.12.2008

31.12.2007

PAT / Total Income

(%)
12.67

12.25

11.72

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
17.87

17.87

17.93

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
52.31

49.82

50.70

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
1.57

1.63

1.50

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.44

2.50

2.29

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.60

0.67

0.66

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Financial Results and Operation :

 

Net Profit for the year 2009 increased by 22.6%. The net profit margin has been positively affected by tax benefits. Operating margin has been positively affected by better sales mix, improved net realizations, energy cost savings and scale efficiencies, partially offset by higher expenditure on advertising and sales promotion and actuarial losses on retirement benefits. The Company continued to emphasize cash generation and delivered strong operating cash flow during the year. Surplus funds have been prudently invested after ensuring that such investments satisfy the Company's criteria of safety, liquidity and returns.

 

The Company supplemented the Provision for Contingencies with further amount of Rs. 323 Million (net) for contingencies resulting mainly from issues, which are under litigation dispute and other uncertainties requiring management judgment.  This was after the reversal / utilization of Rs. 134 Million provision, due to satisfactory settlement of certain disputes and other matter for which provision was no longer required.

 

The current year has also commenced as per plan. Raw materials costs, in particular the recent spike in milks solids and sugar whose prices are at record high levels, continue to pose an ongoing challenge. The economic environment has not completely stabilized yet, but the Directors are confident of the long-term business prospects of the Company.

 

Exports :

 

During the year, Export Sales at Rs. 3,286 million were lower by 2.9%. This was largely on account of lower exports to Russia and Bangladesh, partially offset by improved realizations due to the depreciation of Indian Rupee in the first nine months of the year.

 

Exports of culinary products, continued to grow steadily notwithstanding the slowdown in some of The importing markets. Sales of noodles and sauces particularly grew satisfactorily. The overall performance was, however, negatively impacted due to lower exports of infant nutrition products to Sri Lanka and Bangladesh.

 

In continuation of efforts to develop more products for the Indian ethnic community abroad, certain new products were shipped out during the year. These should help to form a base for future growth.

 

Dividends :

 

The Board of Directors has recommended a final dividend of Rs. 12.50 per equity share of the face value of Rs. 101- each for the year 2009, amounting to Rs. 1,205 Million.

 

This is in addition to the two Interim Dividends for 2009, aggregating to Rs. 36.00 per equity share, paid in May 2009 and November 2009 (amounting to Rs. 3,471 Million).

 

The total payout for 2009 would be Rs. 5,470 Million (including the corporate dividend tax). Future dividends will continue to be based on the needs of the Company to deploy internal accruals for business expansion and an appropriate debt equity ratio.

 

Sales :

 

The Company believes that while its products must be available to as many people who may prefer to buy them, the freshness and quality of the stocks is important and the distribution system needs to continuously improve to ensure this despite a larger reach. The retail trade in lndia is predominantly fragmented General Trade where the Distributors play a major role in the route-to-market. In order to use this network more efficiently and be able to better track the movement of stocks through this pipeline, the Company has decided to connect the Distributors through a uniform, robust and integrated Distribution Management System and in the last quarter of the year, started the process of Advanced Sales Automation. This will increase transparency, accuracy, speed, enable enhanced efficiencies in trade spends and ultimately, execution in the market. It will also liberate the frontline sales force from some of their administrative burden and enable them to focus more on their core function. It will improve white-collar productivity and internal controls.

 

Opportunities:

 

  • Potential for expansion in smaller towns and other geographies.
  • Recovery of 'Out of Home' segment.
  • Leverage Nestle Technology to develop more products that provide Nutrition, Health and Wellness at affordable prices.

 

 

Fixed Assets

 

v      Freehold Land

v      Leasehold Land

v      Building

v      Railway Siding

v      Plant and Machinery

v      Furniture and Fixture

v      Information Technology

v      Equipments

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Profile

 

Subject is a subsidiary of  Nestlé S.A. of Switzerland. With seven factories and a large number of co-packers, subject is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.


The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

 

Overview

 

Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

 

After India’s independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of Nestlé’s Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of  their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestlé Agricultural Services,

 

Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

 

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices.

 

Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.

 

Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.

 

Presence Across India

 

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. Nestlé India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

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. 45.09

UK Pound

1

Rs. 72.82

Euro

1

Rs. 63.43

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

77

 

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.