MIRA INFORM REPORT

 

 

Report Date :

05.04.2012

 

IDENTIFICATION DETAILS

 

Name :

CHOLAYIL PRODUCTS AND SERVICES

 

 

Registered Office :

Srijee Majestic, Plot No.6, II Floor, Along E Road, Koyambedu, Chennai – 600107, Tamil Nadu

 

 

Country :

India

 

 

Year of Establishment :

2007

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners

 

 

Line of Business :

Manufacturer of Hand Made Soaps 

 

 

No. of Employees :

200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The concern can be considered normal for 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Ms. Gayathri

Designation :

Office Assistant

Contact No.:

91-44-42818063

Date :

02.04.2012

 

 

LOCATIONS

 

Registered Office :

Srijee Majestic, Plot No.6, II Floor, Along E Road, Koyambedu, Chennai – 600107, Tamil Nadu, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

 

Website :

www.cholayilcare.com

 

 

Administrative Office / Factory :

‘Cholayil’, No.1583, J-Block, 15th Main Road, Annanagar, Chennai – 600040, Tamil Nadu, India

Tel. No.:

91-44-43471800

Fax No.:

91-44-26161671

E-Mail :

gayathri@cholayilcare.com

 

 

PARTNERS

 

Name :

Dr. A. V. Anoop

Designation :

Partner

Brief Details :

Managing Director - AVA Cholayil Health Care Private Limited

 

 

Name :

Mrs. Priya Anoop

Designation :

Partner

Brief Details :

Director, Spouse of Dr. A. V. Anoop, specialist in culinary arts and ^development of recipes for Sanjeevanam Restaurant.

 

 

Name :

Mr. Vivek Venugopal  

Designation :

Partner

Brief Details :

Director (Business Development), Son-in-law of Dr A. V. Anoop having a Masters in Business Administration (ISB) with varied /business interests and experience.

 

 

Name :

Mrs. Lanchana Vivek

Designation :

Partner

Brief Details :

Director, Daughter of Dr. A.V. Anoop, having completed Post Graduation in MSc-Management (UK) and Bachelors Degree in Law. Her key focus is in developing Sanjeevanam Ayurvedic treatment centre and restaurants. Compliance of all legal/statutory related matters.

 

 

Name :

Mrs. Pratheeksha Prasanth

Designation :

Partner

Brief Details :

Director, Daughter of Dr. A. V. Anoop, having completed Bachelors Degree in Visual Communication and pursuing PG in Fashion Technology. Involves in various projects of Sanjeevanam.

 

 

KEY EXECUTIVES

 

Name :

Ms. Gayathri

Designation :

Office Assistant

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Hand Made Soaps 

 

 

Brand Names :

“MEDIMIX”

 

 

Exports :

 

Products :

Soaps

 

 

Imports :

 

Products :

Chemicals

Countries :

·         Europe

·         South Asia 

 

 

Terms :

 

Selling :

L/C, Credit (30 Days)

 

 

Purchasing :

L/C, Credit (30 Days)

 

PRODUCTION STATUS

 

Particulars

 

 

Installed Capacity

Actual Production

 

 

 

 

 

Handmade Soaps Per Month

 

 

500000

500000

 

 

 

 

 

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

 

No. of Employees :

200 (Approximately)

 

 

Bankers :

·         Axis Bank, Anna Nagar, Chennai, Tamil Nadu, India

·         ICICI Bank, Anna Nagar, Chennai, Tamil Nadu, India

 

Banking Relations :

--

 

 

Auditors :

Not Available

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

Not Divulged

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

NOT DIVULGED

 

The above information has been declined by Ms. Gayathri.

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

This is a partnership firm. The firm was started in the year 2007 to market the Cholayil's existing products. In other words this is the marketing arm of the group. Now we have to first understand the group so that we can know what this firm is marketing. Cholayilcare is an illustrious and esteemed ayurvedic group from Kerala, which has a deep history in providing holistic health care. The Cholayil group consists of:

 

1. Cholayil Prodcuts and Services - It markets the group's soaps - Medimix Bath Soap, Medimix Sandal Soap and Medimix Transparent (Glycerine) which are the company's flagship brands. These products are marketed to Hotels/Hospitals/lndustries at special subsidized prices, the motivations for which is the tremendous visibility garnered and products trials ensured. The institution sales department of CPS caters to more than 4000 hotels across the country. The soaps carry the hotels name and logo printed behind the mini soap pack at no added cost. Deliveries are ensured right at the customer's doorstep.

 

The firms advertisement in the TV media is well known in South India. The TV advertisement appears every hour or some channel or the other and they sponsor a lot of programs on the South Indian language channels. In fact Medimix is a household name and is widely used specially for its medicinal value. Made totally out of herbal extractions the products are 100% allergy free and do not cause any harm to the skin.

 

The Brand equity survey on the Most trusted Brands of India published by the Economic times dated 28the September 2011 ranks MEDIMIX as the 87th leading brand among all categories as against the 89th position in 2009 and has not entered in Top 100 position in 2010. In addition to it Medimix has taken a step forwarded and has taken the 17th position among the Personal care products in India (earlier it was in the 18th position). Added to the above Medimix has taken the 10the position among the most trusted Brands in the Bangalore city.

 

The firm Cholayil Products & Services is promoted by Dr A V Anoop, who is the Managing Director of AVA Cholayil Health Care Pvt Ltd. The focus of CPS is to provide Products and Services which benefit the human kind with the knowledge and time tested procedures assimilated from the traditional system of Ayurveda, Naturopaty and Yoga which has been followed in India from time immemorial. The handmade soaps of Medimix Classic, Medimix Handwash are being marketed by CPS in the Southern states of India namely Andhra Pradesh, Karnataka, Tamilnadu and Kerala.

 

2. AVA Cholayil Health Care Private Limited - This is the manufacturing arm of the Group. They are responsible for the manufacture to the hand made soaps that the CPS markets. Cholayil has the pride of manufacturing the largest selling branded ayurvedic soap "Medimix". Dr V P Sidhan is the founding father of the Medimix which is manufactured using a wholly indigenously developed process with manual equipments, It is a handmade soap which naturally hydrates the skin and makes it softer and healthier. The soap is fortified with eighteen herbs uniquely blended to nourish and protect the skin.

 

3. Cholayil Sanjeevanam - This is yet another feather in the cap of Cholayilcare group. Cholayil Sanjeevanam represents total health by integrating the principles of Ayurveda, Naturopathy and Yoga. Cholayil Sanjeevanam is ISO 9001:2008 certified and commenced operations in July 2004. Health and intellect are the two blessings of life. Sanjeevanam seamlessly blends conventional and modern ayurvedic medicinal values based on the above inspirational principle to provide a healthy body, mind and soul to mankind. The firm consists of Treatment centers, Hair and face care units, Vegetarian health restaurants, health products counters etc. The branches of Sanjeevanam has centers all across India.

4. Cholayil Care Herbal Garden - In keeping with its commitment to Ayurveda and health the Cholayil Care group has an exclusive herbal garden attached to Cholayil Herbal Farm, which acts as a feeding center for its R&D and for manufacturing activities. Cholayil care's farm is spread across almost 40 acres enriched with fertile soil and water resources fostering rare medicinal plants, herbs and ornamental species. The farm is located at Vengal around 80 Kms from Chennai Airport. The farm serves as a haven for research scholars and academicians let alone being a liked location for nature admirers.

 

5. Cholayil Ayurvedic Health and Research Academy - Formerly known as Sowparnika Ayurvedic Foundation for Research, health and Education, the Cholayil Ayurvedic Health and Research Academy was born with the sole aim to develop and provide a better quality of life through Ayurveda. Main objectives of the foundation is the propagation of the basic principles of Ayurveda to the whole world and encourage the younger generation to study and practice Ayurveda.

 

The turnover for the group exceeds Rs.1000.000 Millions. The firm is cash rich and loan free. Most reputed brand in South India will sound business ethics and principles.

 

Trade References:

 

·       Hotel Taj Coromandel

Address: 17 Nugambakkam High Road, Chennai – 600034, Tamil Nadu, India

Tel No.: 91-44-66002827

 

·       Apollo Hospital

Address: 21, Greams Lane, Off Greams Road, Chennai – 600006, Tamil Nadu, India

Tel No.: 91-44-28293333 / 28290200

Fax No.: 91-44-2834429

 

·       ITC Windsor, Bangalore

Address: 25, Windsor Square, Golf Course Road, Bangalore – 560052, Karnataka, India

Tel No.: 91-80-22269898

Fax No.:91-80-22264941  

 

·       Te Residency

Address: Avinash Road, Coimbatore, Tamil Nadu, India

Tel No.: 91-422-2241414

 

Press Release:

 

Cholayil Private Limited (CPL), a Chennai-based Rs1000.000 millions FMCG company, today announced the acquisition of Krishna Thulasi, a leading herbal soap brand owned by Krishna Herbals based in Kollam.

 

Announcing this, VS Pradeep, managing director, said the company had targeted a total turnover of Rs 505 crore over the next five years, from the current level of Rs.1000.000 Millions. However, he did not divulge the value of the latest acquisition.

 

CPL had acquired one of Kerala's oldest brands of talcum powder and soap, Cuticura, in 2001, which now has 15 per cent market share in the Kerala market. The company has also planned to launch a number of beauty and cosmetic products like hair cream and face cream shortly. It will also launch a low-price soap brand, My Sop, for markets like Maharashtra and Uttar Pradesh.

 

Addressing a press conference on Monday, Pradeep said that all the Krishna Thualsi brand products, like soap, face gel and shampoo would continue with the same brand tag. The prices and the packaging would also be the same for the time being and the company would change these based on market response. The products will be produced at its manufacturing facilities at Tada in Andhra Pradesh and Haridwar in Uttrakhand.

 

With a turnover of Rs.50.000 Millions, Krishna Thulasi is one of south India's admired brands of herbal soap and other personal care products like herbal shampoo and face beauty gel.

 

With the new brand's presence in the herbal soap segment, it would be a strategic best fit with the company's product range, Pradeep said. The soap is being marketed in the south and would also be exported to countries like Malaysia and the Gulf countries.

 

This brand will leverage our export potential especially in the West Asian markets, he said. Medimix, the flagship brand of Cholayil, is currently exported to around 25 countries.

 

Pradeep said the product portfolio under the Cuticura brand would be extended to other segments and categories soon. The group has also ventured into Ayurvedic treatment segment by opening the first treatment centre, Sadayush, at Mylapore near Chennai, and plans to open more during next year.

 


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.51.05

UK Pound

1

Rs.81.09

Euro

1

Rs.67.39

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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.