MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTHAN NATIONAL GLASS AND
INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
HINDUSTAN NATIONAL GLASS
MANUFACTURING COMPANY LIMITED |
|
|
|
|
Registered
Office : |
2, Red Cross Place, P. B. # 2722, Kolkata - 700 001, West
Bengal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
23.02.1946 |
|
|
|
|
Com. Reg. No.: |
21-13294 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 174.677 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L26109WB1946PLC013294 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALH01957E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH7557G |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturers, Importers and Exporters of Glass Containers,
Glass Bottles, Tumblers, Vials, etc. in various sizes from 5 ML to 3200 ML |
|
|
|
|
No. of Employees
: |
1441 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
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 46000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company 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 |
LOCATIONS
|
Registered Office / Corporate Office / Marketing and Sales Office: |
2, Red Cross Place, P. B. # 2722, Kolkata - 700 001, West
Bengal, India |
|
Tel. No.: |
91-33-22482341/42/43/44/22543100 |
|
Fax No.: |
91-33-22482367/22543130 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
28000 sq. ft. |
|
Location : |
Leased |
|
|
|
|
Factory 1 / Marketing and Sales Office : |
Bahadurgarh - 124 507,
District Jhajjar, |
|
Tel. No.: |
91-1276-211807/802/803/804/805/806/807/808 |
|
Fax No.: |
91-1276-211810/214163 |
|
E-Mail : |
|
|
Area : |
45000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory 2 : |
2, Panchu Gopal Bhaduri Sarani, Rishra - 712 248, District
Hooghly, West Bengal |
|
Tel. No.: |
91-33-26726801/6802/6803/6804 |
|
Fax No.: |
91-33-26726807 |
|
E-Mail : |
|
|
Area : |
40000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory 3 : |
14, RIICO Industrial Area, Nemrana, District Alwar-301705, Rajasthan,
Inida |
|
Tel. No.: |
91-1494-246712 / 513935 |
|
Fax No.: |
91-1494-246713 |
|
|
|
|
Factory 4 : |
P. O. Virbhadra, Rishikesh-249201, District, Dehradun, Uttarakhand,
India |
|
Tel. No.: |
91-135-2470700 |
|
Fax No.: |
91-135-2470777 |
|
|
|
|
Factory 5 : |
Thonadamantham Village, Vezhudavoor S. O., Puducherry-605502, India |
|
Tel. No.: |
91-413-2677319 |
|
Fax No.: |
91-413-2677366 / 2677666 |
|
|
|
|
Factory 6 : |
Nashik Glass Work, F1, MIDC, Malegaon, District, Sinnar,
Nashik-422113, Maharashtra, India |
|
Tel. No.: |
91-25511-228900 |
|
Fax No.: |
91-25511-228999 |
|
|
|
|
Marketing and Sales Office : |
14/15-B, Wellington Estate, 3rd
Floor, 24, Commander in Chief Road, – 600 015, Tamilnadu, India |
|
Tel. No.: |
91-44-28259137/8163 |
|
Fax No.: |
91-44-28259269 |
|
Email : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Chandra Kumar Somany |
|
Designation : |
Chairman |
|
Address : |
2, Ironside Road, Kolkata - 700 019, West Bengal, India |
|
Date of Birth/Age : |
1933 |
|
Qualification : |
I. Sc., FBIM (London) |
|
Other Directorships : |
·
Glass Equipment (India) Limited ·
Hasow Automation Limited ·
Sportlight Vanijya Limited ·
Topaz Commerce Limited ·
The West Coast Paper Mills Limited ·
Ceramic Colours and Containers
Limited ·
R. B. Rodda and Company Limited |
|
|
|
|
Name : |
Mr. Sanjay Somany |
|
Designation : |
Voice Chairman and Managing Director |
|
Address : |
W-22, Greater Kailash, New Delhi – 110 048, India |
|
Date of Birth/Age : |
1958 |
|
Qualification : |
B.Com., Diploma in Diesel Engineering |
|
Other Directorships : |
·
Glass Equipment (India) Limited ·
Hasow Automation Private Limited ·
Sportlight Vanijya Limited ·
Topaz Commerce Limited |
|
|
|
|
Name : |
Mr. Mukul Somany |
|
Designation : |
Voice Chairman and Managing Director |
|
Address : |
2, Ironside Road, Kolkata – 700 019, West Bengal, India |
|
Qualification : |
B. Com. (Hons) |
|
|
|
|
Name : |
Mr. Kishore Bhimani |
|
Designation : |
Director |
|
Address : |
12/4, Sunny Park Apartments, 6, Sunny Park, Kolkata – 700
029, West Bengal, India |
|
Qualification : |
B. A. (Hons in Economics) |
|
|
|
|
Name : |
Mr. Sujit Bhattacharya |
|
Designation : |
Director |
|
Address : |
52-C, Ballygunge Circular Road, Kolkata – 700 019, West
Bengal, India |
|
Qualification : |
FCA |
|
|
|
|
Name : |
Mr. Ratna Kumar Daga |
|
Designation : |
Director |
|
Address : |
8, South End Park, Kolkata – 700 029, West Bengal, India |
|
Qualification : |
B.Com., BIM Graduate (England). (Hons) |
|
|
|
|
Name : |
Mr. Dipankar Chatterji |
|
Designation : |
Director |
|
Address : |
2/1, Nazar Ali Lane, Kolkata – 700 019, West Bengal, India |
|
Qualification : |
FCA |
|
|
|
|
Name : |
Mr. Shree Kumar Bangur |
|
Designation : |
Director |
|
Address : |
16, Alipore Road, Kolkata – 700 027, West Bengal, India |
|
Qualification : |
Graduate |
|
|
|
|
Name : |
Dr. Indrajit
Kumar Saha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rakesh Sharma |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Venkatesan Sridar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Priya Ranjan |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Laxmi Narayan Madhana |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Jagdish Prasad Kasera |
|
Designation : |
Senior President |
|
|
|
|
Name : |
Mr. Ratan Lal Khandelia, |
|
Designation : |
Senior Vice President |
|
|
|
|
Name : |
Mr. Amar Chand Jain |
|
Designation : |
Vice President (Ceramics) |
|
|
|
|
Name : |
Mr. Vinay Saran |
|
Designation : |
Senior Vice President - Marketing |
|
|
|
|
Name : |
Mr. Animesh Banerjee |
|
Designation : |
Senior Vice President |
|
|
|
|
Name : |
Mr. Chandra Singh K Mehta |
|
Designation : |
Plant Head- Nashik |
|
|
|
|
Name : |
Mr. Jalaj Kumar Malpani |
|
Designation : |
Vice President – Commercial |
|
|
|
|
Name : |
Mr. Devdutta Hoare |
|
Designation : |
Exports Head |
|
|
|
|
Name : |
Mr. Kulur Satish Shetty |
|
Designation : |
Plant Head – Pondicherry |
|
|
|
|
Name : |
Mr. Ravindra Kr Sitani |
|
Designation : |
Vice President – Works |
|
|
|
|
Name : |
Mr. Bimal Kumar Garodia |
|
Designation : |
Vice President – Finance |
|
|
|
|
Name : |
Mr. Kuldeep Kumar Sharma |
|
Designation : |
Plant Head – Neemrana |
|
|
|
|
Name : |
Mr. Chandra Kumar Tharad |
|
Designation : |
Vice President – Commercial |
|
|
|
|
Name : |
Mr. Shammo Roy Choudhary |
|
Designation : |
AVP – HR |
|
|
|
|
Name : |
Mr. Bishnu Kumar Kedia |
|
Designation : |
AVP – Material |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
No. of Shares |
% of No. of Shares |
|||
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|||
|
|
|
|
|||
|
Individuals / Hindu Undivided Family |
14,668,285 |
16.79 |
|||
|
Bodies Corporate |
46,455,555 |
53.19 |
|||
|
Sub Total |
61,123,840 |
69.98 |
|||
|
|
|
|
|||
|
Total
shareholding of Promoter and Promoter Group (A) |
61,123,840 |
69.98 |
|||
|
(B) Public
Shareholding |
|
|
|||
|
(1) Institutions |
|
|
|||
|
|
6,542,537 |
7.49 |
|||
|
(2)
Non-Institutions |
|
|
|||
|
Bodies Corporate |
3,016,500 |
3.45 |
|||
|
Individuals |
|
|
|||
|
|
1,006,029 |
1.15 |
|||
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
15,608,580 |
17.87 |
|||
|
|
29,967 |
0.03 |
|||
|
Sub Total |
19,672,188 |
22.52 |
|||
|
Total Public
shareholding (B) |
26,214,725 |
30.02 |
|||
|
Total (A)+(B) |
87,338,565 |
100 |
|||
|
|
- |
- |
|||
|
(1) Promoter and Promoter Group |
- |
- |
|||
|
(2) Public |
- |
- |
|||
|
Sub Total |
- |
- |
|||
|
Total
(A)+(B)+(C) |
87,338,565 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers, Importers and Exporters of Glass Containers,
Glass Bottles, Tumblers, Vials, etc. in various sizes from 5 ML to 3200 ML |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Glass Plants |
|
|
|
|
a)
Glass Bottels and Vials |
MT |
1030925 |
829374 |
|
b)
Pressed Tublers |
MT |
5000 |
-- |
NOTES:
1.
Installed Capacity and Actual Production has been
given in M.T.
2.
Licensed Capacity is not given as licensing has
been abolished vide Press Note No.9 dated 2 August 1991 and Notification No.
S.O.477 (E) dated 25 July 1991 issued by Government of India, Ministry of
Industry and Department of Industrial Development. The installed capacity is as
certified by the management.
GENERAL INFORMATION
|
Customers : |
·
United Sirits ·
Ernod Ricard ·
Diageo ·
Bacardl ·
Cipla ·
Ranbaxy ·
Himalaya ·
Nestle ·
Unilever ·
Pepsi ·
Coca Cola |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
1441 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
HDFC Bank Limited ·
The Hongkong and Shanghai ·
ICICI Bank Limited ·
Bank of Baroda ·
Axis Bank Limited ·
Export Import Bank of India ·
Standard Chartered Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
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|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Financial Institution : |
·
Life Insurance Corporation of India ·
General Insurance Corporation of India ·
Banking Corporation Limited |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountant |
|
|
|
|
Subsidiaries : |
·
Glass Equipment (India) Limited ·
Quality Minerals Limited |
|
|
|
|
Associates : |
HNG Float Glass Limited |
|
|
|
|
Enterprises over which any person described in [C
(i) to (iv)] above is able to exercise significant influence and with whom the Company has
transactions during the year : |
·
AMCL Machinery Limited ·
Ceramic Decorators Limited ·
Microwave Merchants Private Limited ·
Mould Equipment ·
Mould Equipment Limited ·
Noble Enclave and Towers Private Limited ·
Somany Foam Limited ·
Rungamatte Trexim Private Limited ·
Topaz Commerce Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2557500000 |
Equity Shares |
Rs.2/- each |
Rs. 5115.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
87338565 |
Equity Shares |
Rs.2/- each |
Rs. 174.677
Millions |
|
|
|
|
|
Notes
of which 29051800 Equity
Shares of Rs.2/- each (Previous Year 29051800 Equity Shares of Rs. 2/- each)
were allotted as fully paid up Bonus Shares by capitalisation of General
Reserve and 32121725 Equity Shares of Rs. 2/- each (Previous Year 32121725
Equity Shares of Rs. 2/- each) issued as fully paid up pursuant to a scheme of
amalgamation and arrangement for consideration other than cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
174.677 |
174.677 |
174.677 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11486.818 |
10253.037 |
9177.126 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11661.495 |
10427.714 |
9351.803 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6234.296 |
5486.168 |
4152.381 |
|
|
2] Unsecured Loans |
161.055 |
171.065 |
921.065 |
|
|
TOTAL BORROWING |
6395.351 |
5657.233 |
5073.446 |
|
|
DEFERRED TAX LIABILITIES |
711.837 |
696.955 |
417.671 |
|
|
|
|
|
|
|
|
TOTAL |
18768.683 |
16781.902 |
14842.920 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11567.243 |
11162.834 |
9064.834 |
|
|
Capital work-in-progress |
2278.188 |
274.677 |
820.339 |
|
|
|
|
|
|
|
|
INVESTMENT |
1775.398 |
1470.694 |
1045.846 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2042.734
|
2099.456
|
2157.847
|
|
|
Sundry Debtors |
2480.760
|
2200.971
|
2271.899
|
|
|
Cash & Bank Balances |
42.151
|
46.989
|
113.997
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1277.858
|
2256.060
|
1935.309
|
|
Total
Current Assets |
5843.503
|
6603.476 |
6479.052 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1943.685
|
1524.935
|
1561.502 |
|
|
Other Current Liabilities |
165.539
|
231.211
|
426.714
|
|
|
Provisions |
586.425
|
973.633
|
578.935
|
|
Total
Current Liabilities |
2695.649
|
2729.779 |
2567.151 |
|
|
Net Current Assets |
3147.854
|
3873.697
|
3911.901
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
18768.683 |
16781.902 |
14842.920 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15434.064 |
13599.035 |
13110.359 |
|
|
|
Other Income |
179.501 |
345.499 |
217.007 |
|
|
|
TOTAL (A) |
15613.565 |
13944.534 |
13327.366 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
4100.944 |
3846.736 |
3930.911 |
|
|
|
Manufacturing and other expenses |
8719.047 |
6960.780 |
7151.914 |
|
|
|
Increase/(Decrease) in stocks |
88.435 |
(26.322) |
(114.574) |
|
|
|
TOTAL (B) |
12908.426 |
10781.194 |
10968.251 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2705.139 |
3163.340 |
2359.115 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
510.598 |
471.724 |
434.488 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2194.541 |
2691.616 |
1924.627 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1025.311 |
890.113 |
769.807 |
|
|
|
|
|
|
|
|
|
Less |
TRANSFERRED FROM
REVALUATION RESERVE |
(28.652) |
(28.950) |
(22.355) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1197.882 |
1830.453 |
1177.175 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
333.657 |
278.500 |
99.713 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
864.225 |
1551.953 |
1077.462 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
359.017 |
257.480 |
107.200 |
|
|
|
|
|
|
|
|
|
Add |
Provision
for Proposed Dividend including Dividend Distribution Tax Written Back |
24.733 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
1111.475 |
700.000 |
|
|
|
Debenture Redemption Reserve |
0.000 |
187.500 |
125.000 |
|
|
|
Proposed Dividend on Equity Shares |
131.008 |
131.008 |
87.339 |
|
|
|
Tax on Dividend |
20.824 |
20.433 |
14.843 |
|
|
BALANCE CARRIED
TO THE B/S |
596.143 |
359.017 |
257.480 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
337.510 |
503.026 |
577.277 |
|
|
TOTAL EARNINGS |
337.510 |
503.026 |
577.277 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
852.083 |
497.339 |
648.933 |
|
|
|
Stores & Spares |
637.404 |
379.388 |
489.401 |
|
|
|
Capital Goods (including CWIP) |
439.497 |
666.003 |
513.173 |
|
|
TOTAL IMPORTS |
1928.984 |
1542.730 |
1651.507 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.90 |
17.77 |
61.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4338.100 |
4218.500 |
5113.600 |
|
Total Expenditure |
3561.700 |
3520.500 |
4355.500 |
|
PBIDT (Excl OI) |
776.400 |
698.000 |
758.100 |
|
Other Income |
8.400 |
29.000 |
4.700 |
|
Operating Profit |
784.800 |
727.000 |
762.800 |
|
Interest |
196.300 |
223.800 |
243.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
588.500 |
503.200 |
519.200 |
|
Depreciation |
261.200 |
289.600 |
301.700 |
|
Profit Before Tax |
327.300 |
213.600 |
217.500 |
|
Tax |
66.400 |
46.000 |
43.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
260.900 |
167.600 |
174.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
260.900 |
167.600 |
174.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.53
|
11.13
|
8.08
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.76
|
13.46
|
8.97
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.88
|
10.30
|
7.57
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.18
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.84
|
0.87
|
0.81
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17
|
2.42
|
2.52
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions of the firm |
Yes |
|
4. Premises details |
No |
|
5. Type of Business |
Yes |
|
6. Line of Business |
Yes |
|
7. Promoter’s background |
Yes |
|
8. No. of Employees |
Yes |
|
9. Name of person contacted |
No |
|
10. Designation of contact person |
No |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
----- |
|
14. Estimation for coming financial year |
No |
|
15. Capital in the business |
Yes |
|
16. Details of sister concerns |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
Yes |
|
19. Payments terms |
No |
|
20. Export / Import details |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
------ |
REVIEW
The year was an
eventful year which saw huge escalation in cost for most of the critical
inputs. In this challenging environment the Company reported a gross sales of
Rs. 16729.000 Millions in 2010-11 compared to Rs. 14498.800 Millions in 2009-10
on account of increased scale and higher sales. The Company recorded an EBIBTA
of Rs. 2705.139 Millions and a net profit of Rs. 864.200 Millions in the year.
OUTLOOK
The container
glass industry is poised with the growing awareness on account of rising
hygienic packaging demand, growing population, increasing per capita income of
average Indians and low per capita glass consumption. In order to capitalise
the emerging opportunities, the Company is constantly improving, widening and
emphasising on the various range of colours, size and design possibilities of
glass and investing in technology to improve the weight and strength of glass
containers. The Company is exploring various areas of cost reduction.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL PACKAGING
INDUSTRY
The global
packaging industry today is at an estimated USD 500 billion in revenues, growing
at a CAGR of 3.1%, according to the World Packaging Organization. The industry
is projected to grow at 3.6% CAGR in the next five years mainly driven by
growth in the emerging markets.
INDIAN CONTAINER
GLASS INDUSTRY
The Indian
container glass market is estimated to be a Rs. 30-billion business, accounting
for 12% of the packaging industry and is expected to grow at 10% to 12% per
annum in the future. India's is one of the lowest per capita glass container
consumption at 1.4 kg as compared to 27.5 kg in the USA and 10.5 kg in Japan.
Demand for
container glass is driven by the growth in user industry i.e. liquor, beer,
pharmaceuticals, cosmetics,
perfumery, food
and beverages. The liquor and beer industries are the main users of container
glass with 70% contribution, followed by pharmaceuticals 10%, food products
10%, beverages 6% and cosmetics 4%.
Business in this
industry also differs from one region to another. It is unviable to sell beyond
a limited region as freight cost is critical and glass is prone to damages
during transport.
DOWNSTREAM INDUSTRY OPTIMISM
ALCOHOL AND
BEVERAGE INDUSTRY
The alcohol and
beverage industry, especially IMFL, is expected to sustain 12% CAGR on account
of more liberal attitudes and rise in disposable incomes. However per capita
alcohol consumption (in India) is a mere 1.8 litres per adult while in Russia
it is around 10 litres per adult.
DEMAND DRIVERS
·
Rising consumption among urban women. Expected to
increase from 10% to 25% of all consumers in the ten-year period from 2005 to
2015
·
Rising disposable incomes and changing lifestyles.
·
Higher penetration of international brands like SAB
Miller
·
Diageo, resulting in the introduction of premium
brands
PHARMACEUTICALS
INDUSTRY
India's Pharmaceutical
Industry is the third largest in the world in volume and 14th in terms of
value. The Indian domestic market is currently valued at ~USD 12.3 billion. It
has shown growth at the CAGR of 12 to 15%, as compared to the global average of
4 to 7%. It is projected to grow to USD 20 billion by 2015.
DEMAND DRIVERS
·
Increased health awareness
·
Expansion of healthcare facilities in rural and
remote areas
·
Increasing penetration of customised insurance
plans will make healthcare services more affordable
FOOD PROCESSING
INDUSTRY
The retail food
sector of India is expected to more than double from USD 70 billion in 2008 to
USD 150 billion by 2025 on account of the growing consciousness about hygiene
as well as preserving food nutrition, resulting in the preference for glass
packaging.
DEMAND DRIVERS
·
Increasing health consciousness, with a shift from
traditional unpackaged or plastic packed forms to packaged, branded products
·
Increase in penetration of glass containers – currently
10 to 12% of all food and beverages are packed in glass containers in India as
compared to 40-50% in developed markets
COSMETICS
The Indian
cosmetic industry is one of the most rapidly growing industries on account of
rising affordability and therefore expanding consumer base, with sales of
around Rs. 356.6 billion (USD 7.1 billion) in 2009. Market players leverage the
opportunities created by the consciousness for beauty among masses. It is
anticipated that the industry will grow at a CAGR of around 17% between 2010
and 2013.
FLOAT GLASS
INDUSTRY
Float glass has
emerged as the preferred flat glass product. It accounts for 90% of total glass
consumption with a 12% CAGR. The usage of glass in housing as well as
commercial buildings is a rising trend as well owing to its aesthetics and time
saving building value. The demand for float glass is expected to increase at 12
to 15% CAGR in the next three to five years.
INDIAN FLOAT GLASS
FACTS
·
India's per capita glass consumption is 1 kg as
against China's 12 kg, all of ASEAN's 8.4 to 11 kg, Europe's 12.5 kg and 10.4
kg in USA
·
India has only eight float glass lines, as compared
to 196 in China
·
India's total installed capacity for float glass is
estimated to be 4,700 TPD
·
Float glass imports were estimated at 0.1 million
MT, largely from China and Indonesia. To support indigenous manufacture, the
Government has imposed an antidumping duty of USD 130 per ton on imports from
China and Indonesia
DOWNSTREAM INDUSTRY OPTIMISM
REAL ESTATE
The real estate sector
in India is of high importance in the context of the glass industry. An
estimated shortage of 26.53 million houses during the Eleventh Five Year Plan
(2007- 12) provides a big investment opportunity for all ancillary businesses.
The Eleventh Five Year Plan estimates the number of urban dwelling units to
increase from 58.8 million in 2006-07 to 66.1 million in 2011-12, an annual
increase of around 1.5 million units during the period.
AUTOMOBILE
The India is expected
to become the world's seventh-largest automobile market by 2016 and the third
largest by 2030, next only to China and the US. This will see significant
increase in the production of automobiles resulting in the rise of demand in
automobile ancillaries like glass.
HINDUSTHAN NATIONAL GLASS AND INDUSTRIES LIMITED: A
PROFILE
Subject is the
largest container glass manufacturer in India with a market share of over 55%.
HNG's pan-India manufacturing operations are spread over six centres Rishra,
Bahadurgarh, Rishikesh, Puducherry, Nashik and Neemrana and its products are
sold in over 30 countries across the globe. The Company's operational capacity
comprises 11 furnaces and 44 production lines with fully-automated IS machines,
sourced from reputed global technology providers for the glass industry from
Europe and the US.
DIVISIONAL
PERFORMANCE
CONTAINER GLASS DIVISION
INPUT MANAGEMENT
At HNG, the
primary raw material employed in the manufacture of container glass are sand
(Silica and Quartz), Limestone (calcite), Cullet (broken glass), Soda Ash,
Dolomite and Feldspar. The timely availability of quality material from the
closest vicinity is critical due to the cost, utilisation and realisation
implications.
Key highlights,
2010-11
·
Renegotiated terms with the established vendor
network to source primary inputs to reduce material costs
·
The pilot project of white sand processing at
Bankura has been made fully operational. Sourcing amber sand for the Rishra
unit from Bankura has reduced the cost of sand for the Rishra unit therefore,
by 40%. The intent is to replicate the strategy for other units as well
·
Plans to acquire sand mines across various
strategic locations for uninterrupted supply
·
Used 75% local sand for coloured glass at a much
lower cost at the Rishra plant
·
Strategic shift to black soda ash instead of
synthetic soda ash helped lower input cost. Black soda is a by-product of the
paper industry but it is extremely useful and cost effective in glass
manufacture
·
Ensuring high standards of quality of raw material
by running it past a comprehensive quality test. Unless stocks have cleared the
quality tests, invoice booking is not allowed
·
Used 15,000 tonnes of superior quality sand from
Egypt for quality enhancement
OUTLOOK
·
Replace at least 25% of soda ash consumption with
black soda because of the price advantage
·
Plan to procure sand from Bangladesh to leverage on
the logistical advantage at Rishra
·
Engaging more vendors to meet raw material
requirements for the consistently growing capacities
·
Plan to commission a dry cullet plant which will
use minimal water to clean cullet, to get rid of impurities such as plastic,
steel, iron, soil and other contamination
OPERATIONS
MANAGEMENT
In the business of
container glass bottle manufacturing success, is measured in terms of the
extent of volumes and efficiency. At HNG, the Company consistently revamps its
capacity to keep up with the demand-supply dynamics. To improve its production
efficiency, the Company has introduced the cutting-edge Narrow Neck Press and
Blow (NNPB) technology in Rishra and Bahadurgarh. NNPB technology reduces the
bottle weight by 15-35% - translating into lower raw material, energy and
transportation costs delivers superior glass strength and quality as a result
of uniform glass distribution. The final conclusion: better margins. The
Company plans to implement this technology at all its plants in the next few
years.
Main features, 2010-11
·
Enhanced proportion of cullet usage helped save
power and fuel costs and saw a measurable drop in the energy cost
·
Possession of 100 trucks to accelerate
distribution, reducing the dependence on other modes of transportation and the
ensuing extra costs for vehicle rentals
·
Increased higher draw ratio and pack ratio (ratio
of finished bottles produced to molten material drawn) ensure higher production
and lower cost of incremental production; successful in increasing the draw
efficiency
·
Initiative taken to enhance automation in various
processes to increase productivity and quality
·
Seek advice from reputed consultants like KPMG,
Deloitte, Ernst and Young to achieve improvement in several areas like risk
management, sustainability, project advisory and SAP implementation, to set
higher benchmarks in operational abilities
Rishra
·
Higher melting rate of 3.2 MT/M2 was achieved,
compared to the industry benchmark of 3 MT/M2 from two new furnaces which
became operational two years ago
·
Initiated two CDM projects of intense action on
mould cooling blower and reduction of LPG consumption in the Lehr, resulting in
substantial energy savings
·
Automation of line No. 24 improved productivity
Substantially
·
Underway is the new cullet processing plant, which
will deliver metal free cullet, a step towards reducing cost, enhanced furnace
life and improved quality
·
A Pennekamp stacker and Graphodial Spray system
each have been installed for better performance
·
Furnace draw increased by 4 - 5%. Maintained
efficiency levels of 91% to 92%
·
KCR for all 'P' jobs has reduced defect levels by
significant 1%
·
Entered into an agreement with Essar for Coal Bed
Methane gas from Durgapur to replace furnace oil in the production process.
This will accumulate significantly in their cost reduction
·
Siemens conducted major training programmes for the
electrical and instrumentation wing; enhancing the learning curve
Bahadurgarh
·
Completed expansion of furnace 4 from 150 MT/day to
300 MT/day; achieved 83% efficiency in the first month of operations
·
Absorbed the NNPB technology for DG jobs (the 500
ml Infusion and 700 ml Roohafza series); resulting in a 20%
·
reduction in bottle weight
·
Trials have been run for NNPB for 105 Hazmola. More
trials continue to be carried out
·
Efficiency of small critical jobs in cosmetic vials
has been improved by selecting jobs strategically. Installed multi-
·
Gob servo feeder on lines 32/36/51/55 with
different weight groups to cater to small customers with less quantity; this
has helped improve their market flexibility
·
Reduction in rejections in neck rings production by
75%
·
Saved 752 m3/day of water by installing waste water
recovery plant. Also installed a cooling tower in the cullet water recycling
system and removed underground water tank, pipelines, or old cooling towers
·
The switch to using grid power in amber line
resulted in cost savings
·
Indigenously developed gas/oil skids resulting in
saving of Rs. 20.000 Millions. The same will be replicated in Neemrana, Rishra
and Nashik
·
Indigenously developed a PCS-7 control system on
furnace-5 for the hearth from Siemens system house resulting in cost saving
·
Built multi storey warehouse (9,324 sq. mts.) for
better and hygienic storage of finished goods
·
New workshop has been erected with an improved
layout
·
Better layout of furnace 4 hot end/cold end has
improved productivity
·
New gas generators installed by modification of
existing gas generator room in a multilevel building
·
Installation for automatic inspection machines for side
wall, bottom and finish in all lines for amber plant is under progress to
improve quality and consistency
Puducherry
·
Maintained efficiency levels of above 90% in spite
of higher number of job changes and power failures
·
Water consumption was reduced from 385 KLD to 330
KLD
·
Furnace oil consumption reduced from 95 kg/draw to
92 kg/draw
·
An SAP - HR Module was successfully implemented.
·
A HEYE pusher was installed on Machine 93 for
better bottle handling
·
Graphoidal system installed to reduce water consumption
and improve delivery system
·
New picker and placer machine was developed locally
for automated packing
·
Waste oil from generators is reused
·
At palletiser, lowerators and elevators, a record
of zero bottle losses was achieved by design modifications
·
Started construction of the sewage treatment plant;
which will result in further reduction in water consumption
·
The wet sand project at the Sand plant has begun.
This project will improve the output and will reduce sand
·
processing costs
Nashik
·
Recorded power consumption below 200 kWh / tonne of
glass draw and LPG consumption below 9 kg / tonne of
·
draw
·
Received the CII Energy and Water Efficiency Award
·
Achieved TPM level 2 from ECS and was accredited
with ISO 22000 and HACCP by SGS
·
Online handling system was installed to improve the
handling of the containers bottles
·
Graphoidal Shear Spray System was installed to
improve cutting parameters of the gob
·
Two stage compressors are under installation, to
further reduce power consumption
Neemrana
·
Achieved 90% efficiency levels
·
Started the RLNG operations in furnace, fore
hearth, lehr and distributor resulting in a cost saving of 30%
·
Received United Beverages and SAB MILLER
accreditation at first attempt
·
Commissioned a 2 MW engine, transferred from
Bahadurgarh; this engine will be used during power failures
·
Produced 6.64 crore of trouble-free 650 ml beer
bottles for AIBA, UB-Kingfisher and Sab Gold
·
All three lines made to run with pocket transfer
from SHEPPEE equipment commissioned in the plant to achieve a significant
reduction in handling losses
·
Entered an agreement with JVVNL for uninterrupted
power supply during forced power cuts with a provision of paying double tariff
for the cut period; resulted in significant cost saving
·
Carried out complete audit of air system and
compressors to reduce the pressure drop resulting in saving 900 KWH of
electrical energy per day
·
Saved 3285 KL/year of water and 2555 litre/year of
oil by commissioning Graphoidal shear spray system
·
Commissioned sand dryers, fired with RLNG
·
Installed forced cooling system on booster
transformer enabling 110% load on transformer
·
Mould cooling blower installed for better product
quality and consistency
·
Construction of new building for workshop and
converting existing workshop in three storeys for gas engine power plant
Rishikesh
·
Installed two 6-1/4 centre machines with minimum
time taken, for optimising production levels
·
Re-commissioned tank no. 7 with enhanced pull from
265 TPD to 308 TPD after installation of side boosters
·
Installed a third line for printing on soft drink
bottles. Recorded highest volume of 639 lacs soft drink bottles printed, and
enhanced the volumes by 45%
·
Improved efficiency of ACL plant by nearly 5%
·
Power consumption per 1000 bottles reduced from 82
units to 57 units through superior value engineering
·
Reduced manpower per 1000 bottles from 1.35 to 0.66
on via enhanced automation
·
Installed automatic conveyor system to reduce
breakage and multiple handling while shifting bottles from plant for ACL
printing
·
Installed a Graphaodial shear spray system to save
cutting consumption by almost 40% and water 4-5 KL/day
·
Increased usage of black Soda from 15 % to 26 %;
saved around Rs. 3.000 Millions per day
·
Increased usage of sheet cullet from 7 to 8% to 12
to 15 %; a significant saving in cost of production
OUTLOOK
·
They intend to double the overall glass production
capacity in the next three years
·
They have begun to seek overseas acquisition
opportunities to enhance capacities and establish international operations
Rishra
·
In 2011-12, they intend to add three new lines,
start a 2 MW waste heat recovery power plant, implement the gas cleaning system
to comply with environmental norms and improve energy efficiencies by 15% in
furnace No. 1
·
Rebuild tank No. 1 and 6 in 2011-12 to increase
capacity by 450 TPD for better quality glass, reduced wastage, to abide by
clean technology norms and use latest machinery
·
Target production of 1150 TPD of glass by the end
of 2011-12
Bahadurgarh
·
They shall install three online shrink packaging
machines and two online palletising machines in the Amber line. Gradually, they
shall also install automatic packing machines in the flint line
·
They also intend to install 132 kv line along with
20 MW sanctioned load (increased from current 6.5 MW load) as an energy cost
saving measure
·
A new gas-based power generation set of 4 MW will
be installed, to reduce power cost substantially
·
They shall put into effect the multi-fuel
burner/combustion system and individual burner control system on all furnaces
which will further reduce energy cost in furnace by 3 to 5%. This will weave in
the flexibility of using different fuels as per availability and price, and
improve furnace control
·
Tie up with HEYE International for implementing
their technology for NNPB in line 36 for DG. Once NNPB stabilises with DG,
further tie-up for TG jobs will be put in place
Puducherry
·
Implementing the Business Excellence system
·
Complete automation of packing activities being
Planned
·
Plans to start rain water harvesting
·
Feasibility of waste heat recovery will be chalked
out
·
Feasibility of biogas usage for operation will be
explored
Nashik
·
Exploring opportunities to acquire few sand and
quartz mines
·
In the process of commissioning LNG operations,
partly replacing LPG and Furnace oil
·
Commission a new facility with a capacity of 650
TPD. All the lines will have advanced side wall, bottom inspection and multi
inspection machines ensuring superior quality output
Neemrana
·
Purchase land alongside exiting facility for
expansion
·
Commissioning of 2.4 MW gas engine from Bahadurgarh
to gear up the plant for 100% power generation by using gas engines during
power shut downs
·
Installation of water harvesting and water
conservation systems
Rishikesh
·
Procure additional land for warehousing and storage
of finished goods and raw material; saving around Rs. 10.000 Millions from the
annual rental cost
·
Install three new back up gen-sets to ensure
continuous supply of power and avoid stoppage of IS machines
·
Complete the remaining systems of rain water
harvesting and water conservation system
QUALITY MANAGEMENT
At HNG, all
products undergo stringent quality tests that address various quality
parameters. Superior product quality helps meet customer requirements leading
to consistent repeat business.
Main features, 2010-11
·
Scaled up the quality of HNG glasses bottles to the
levels of European glass makers
·
Installation of automated inspection machines to
enhance the quality of products
·
Successfully completed major customer audits
·
Maintained quality standards above industry
benchmark; registered 0.065% critical defects and 1.05- 1.06% major defects
·
Rejection rates fell well beneath the acceptable
industry norms. Attuned quality standards to the requisite parameters of
customers
·
Reduction in rejection rate in complex bottle
designs
·
Conducted regular meetings and brainstorming
sessions to consistently churn out ideas for quality improvement
OUTLOOK
·
Implement a structured process for data collection
which will help detect loopholes and bridge them
·
Plan to get accreditation from Hazard Analysis
Critical Control Point (HACCP)
LOGISTIC MANAGEMENT
HNG's competent
logistics management facilitates rapid product movement at an economical cost,
enhancing customer convenience.
Main features, 2010-11
·
Increased total truck fleet size
·
To transport sand from Allahabad to the Rishra
plant, the Company used its own fleet of vehicles (20 trucks) which proved to
be a cost effective and time saving protocol
·
At Rishra, used two captive tankers to transport
furnace oil to avoid on transit tampering and spill overs
·
GPS systems in their trucks enable stringent monitoring
over movement. This monitoring has resulted in intervening when required to
take necessary action in cases of emergencies, mishaps and delays
·
Possession of a captive transport system has
resulted in a cost saving of around 5%
OUTLOOK
·
Plan to increase the truck fleet size to decrese
dependency on external logistics and match the consistently increasing
capacities
·
They shall also add four tankers at Rishra for
furnace oil Transportation
MARKETING MANAGEMENT
HNG has
consistently understanding customer requirements to manufacture quality
products, deliver in time, provide state-of-the-art technical and product
support, and has a prompt customer feedback model.
Main features 2010-11
·
Enhanced portfolio of value-added products, helped
increase realisations from Rs. 17377 per MT to Rs. 18325 per MT
·
Reinforced their position among customers by
supplying superior quality bottles, on time, at competitive rates
·
Expanded the portfolio for liquor, pharmaceutical
and FMCG products, to include varied product categories.
·
Maintained the market share and regular repeat
Clienteles
·
Added several new export customers
·
Started a 360 degree feedback mechanism in order to
understand customer needs and to serve them better
·
Launched extensive customer connect initiatives to
understand their changing requirements and patterns
·
Participated in national and international trade
fairs like Asia Pharma Expo, CII Brand Conclave, Glasspex, IndiaPack 2010 and
Indspirit in order to enhance brand visibility
OUTLOOK
·
Enhance exports in lines with an increase in
capacities
·
Plan to further expand business in South Asian and
SAARC countries
·
Enter the lucrative Brazilian market for cosmetic
bottles
·
Pharmaceutical bottles will play a pivotal role in
exports and will add to 10-15 % of the revenue pie. A high emphasis will be
placed on pharmaceutical bottles on account of high margins and absence of
competition in this segment
·
Small bottles will be the key growth driver as it
caters to the cosmetic, food and pharmaceutical industries
INFORMATION TECHNOLOGY MANAGEMENT
Information
technology facilitates timing-sensitive and proactive decision-making. HNG
functions on the SAP platform. All its units are connected through this
platform, ensuring better financial management, material management, sales and
distribution, production planning, plant maintenance and quality management.
The SAP central site is located at the Bahadurgarh plant and a disaster
recovery site is located at the Rishra plant.
Main features, 2010-11
·
Consistently upgrading implemented SAP modules
(financial, material, production planning, sales and distribution, plant
maintenance and quality)
·
Rishra plant played a pioneering role in initiating
and implementing SAP-HR; they initiated training sessions based on specific
requirements
·
Implemented the Project System (PS) module to take
care of all the new projects added to HNG portfolio
·
Warehouse Management System (WMS) has already been rolled
out at Nasik, Rishikesh, Puducherry and Neemrana. This module will give us
access to valuable information on warehouse capacity and stock levels of
finished goods
·
Implemented the Treasury Module (TM) for superior
finance management
·
Numbers of sub modules of the HR module are in the
process of implementation
·
Integrated platform has facilitated generation of
the KCR report which is used on a daily and monthly basis. This has reduced
time consumption, enabled real-time and accurate data retrieval and enhanced
proactive decision making
·
Under the plant maintenance module a report called
Downtime Analysis has been developed enabling accurate data collection to
improve productivity
·
Created a report on the cost of packing for one
metric tonne; helping analyze the overall cost - this information has proved
beneficial as it indicates the cost of packing and the quantity of material
used
OUTLOOK
·
Plan to implement organisational management,
personnel management, time management, payroll management and recruitment
module under SAP
·
Develop a portal for customers and sale force
empowering them with relevant data for their decision making
·
Initiate BI (Business Intelligence) and BO
(Business Objectives) modules. This will help streamlining the processes and get
the right data in real time. The entire reporting system will undergo a
paradigm shift and the management will have correct and accurate reports;
enabling them to take quick decisions
·
Plan to develop framework to map commission agents
·
Develop a customer centric portal where they can
easily log in and complaint register for which they will get an ID
·
and the concerned department or person will address
the issue in the best possible manner
FLOAT GLASS DIVISION
HNG Float Glass is
part of the approximately Rs. 20000.000 Millions HNG Group, a leading Indian
container glass manufacturer for nearly six decades. Established in 2006, the
Company commenced commercial operations in February, 2010. HNG Float Glass is
led by Shri Chandra Kumar Somany (Chairman), Shri Sanjay Somany (Director) and
Shri Mukul Somany (Director).
BRIEF OVERVIEW
·
Largest domestic players - well positioned to
capitalise on the high growth potential
·
Commenced production in a record time of 21 months
·
Plant achieved global production efficiency
benchmarks within a short span of 5 months
·
Competitors include Saint Gobain, Asahi, Gujarat
Guardian, Gold Plus, Sejal, etc
·
Certifications: Materials manufactured as per
European standards EN 572-2 and ASTM C1036 -06 (U.S. standards) Certification
for integrated management system confirming to ISO 9001 and 14000, OHSAS 18000
·
Diversified supplier base for each raw material to
reduce any business risks on account of non-supply
·
Product has been well received in the market and the
Company has been increasing presence with a distribution network of 758 agents
spread across India
·
Manufactures glass to meet the needs of
Construction and Auto sectors
·
Existing facility is an integrated glass plant with
a capacity to manufacture toughened insulated glasses for architectural and
automotive applications
·
Planned greenfield expansion in the float glass
business by setting up a plant at Halol, Gujarat
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON DECEMBER 31, 2011
(Rs. in millions)
|
Sr. No. |
Particular |
3 Months Ended |
Year to Date |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
a) Net Sales/Income
from Operations |
5094.100 |
4203.800 |
13616.000 |
|
|
b) Other
Operating Income |
19.500 |
14.700 |
54.200 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) / Decrease in Stock in Trade |
72.100 |
(391.900) |
(474.600) |
|
|
b) Consumption of Raw Materials |
1331.900 |
1197.900 |
3696.500 |
|
|
c) Employees Cost |
324.400 |
323.400 |
952.400 |
|
|
d) Depreciation |
301.700 |
289.600 |
852.500 |
|
|
e) Other Expenditure |
824.400 |
824.900 |
2420.200 |
|
|
f) Power and Fuel |
1802.700 |
1566.200 |
4843.200 |
|
|
g) Total |
4657.200 |
3810.100 |
12290.200 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
456.400 |
408.400 |
1380.000 |
|
|
|
|
|
|
|
4. |
Other Income |
4.700 |
29.00 |
42.100 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
461.100 |
437.400 |
1422.100 |
|
|
|
|
|
|
|
6. |
Interest |
243.600 |
223.800 |
663.700 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
217.500 |
213.600 |
758.400 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
217.500 |
213.600 |
758.400 |
|
|
|
|
|
|
|
10. |
Tax Expense |
43.000 |
46.000 |
155.400 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
174.500 |
167.600 |
603.000 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
174.500 |
167.600 |
603.000 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
174.700 |
174.700 |
174.700 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
2.00 |
1.92 |
6.90 |
|
|
b) Basic and diluted EPS after extraordinary items |
2.00 |
1.92 |
6.90 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
26214725 |
26214725 |
26214725 |
|
|
- Percentage of Shareholding |
30.02 |
30.02 |
30.02 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
61123840 |
61123840 |
61123840 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
69.98 |
69.98 |
69.98 |
NOTES
1. The above results were reviewed by
the Audit Committee and approved by the Board of Directors at its meeting held
on 27th January,2012.
2. The Statutory Auditors have carried out a limited
review of the financial results for the quarter ended 31st December,2011
3. In terms of scheme of amalgamation
under Section 391 to 394 of the Companies Act, 1956 as sanctioned by the
Hon'ble High Court of Calcutta vide its Order dated March 28, 2008 and by
Hon'ble High Court at
4. Pursuant to the Companies
(Accounting Standards) Amendment Rules, 2011 vide GSR914 (E) dated 29th
December, 2011, the Company has exercised the option of adjusting the cost of
assets arising on exchange differences, in respect of accounting periods
commencing from 1st April, 2011, on long term foreign currency
monetary items, which were hither to recognized as income or expenses in the
period in which they arose. As a result, such exchange differences of areas
they relate to the acquisition of depreciable capital assets have been adjusted
with the cost of such assets, to be depreciated over the balance useful life of
the respective assets. Consequent upon this change Capital Work in Progress is
higher by Rs. 58.171 Millions and the charge to the Profit and Loss Account is
lower by this extent.
5. The Company operates mainly in one
business segment, i.e. manufacturing and selling of glass containers
6. There were no investor complaint
pending at the beginning of the quarter. The Company had received 1 complaint
during the quarter and the same was resolved. There were no investor complaint
pending at the end of the quarter.
7. Previous year's / quarter's figures
have been re-arranged / re-grouped wherever necessary.
WEB SITE DETAILS
INTRODUCTION
HNG
was founded by Mr. C K Somany in 1946 following the commissioning of India’s
first fully automated glass manufacturing plant at Rishra (near Kolkata). At
present, it is the key player in India’s container glass industry with a pan
India presence and its plants located at Rishra, Bahadurgarh, Rishikesh,
Neemrana, Nashik and Puducherry. HNG has captured a large share of the Indian
market and also has an increasingly satisfied client base in more than 23
countries.
The benefits of light-weight container glass bottles:
-
Accelerated bottling process
-
Increased bottles per ton
-
Reduced price per bottle
-
Improved bottle quality
-
Enhanced availability
-
Reduced transportation cost
-
Enhanced bottle transparency
-
Increased strength following uniform and optimum wall thickness
MILESTONES
1946
Incorporation of HNG in Rishra (near Kolkata) on the 23rd days
of February
1952 Commissioning of India's first fully automated glass
manufacturing plant with an installed capacity of 30 TPD
2001 Installed capacity was raised to 1100 TPD
Certified with ISO 9001:2000
2002 Production strength was raised to 1800 TPD with the
acquisition of Owens Brockway (India) Limited.
2003 Unveiling of TPM with an objective to improve the
draw-to-pack efficiency by nearly 300 basis points
2005 Acquisition of Larsen and Toubro Plant (Nashik) led to the
escalation of installed capacity to 2150 TPD
2006 Debottlenecking further raised the
installed capacity of HNG to 2435 TPD
2007 Lean Six Sigma was launched to reduce
non-value added time (between production completion and revenue
generation)
2007 Acquisition of Neemrana Plant through the
merger of Haryana Sheet Glass Installed capacity increased to 2540
TPD
2008 ERP was introduced to facilitate timely
decision making, superior inventories management and eliminate data
redundancies
2008 Received ISO 22000 certification
2009 Developed CAD/CAM facilities to design a
variety of bottles in different sizes, customized to the precise
requirements of pharmaceuticals, processed foods, liquor and soft drink
industries
2009 Implementation of SAP
2010 Installed capacity increased to 2825 TPD
through Brownfield expansions
2010 Singed largest deals in the Indian Glass
Industry worth Rs 2.5 billion
NEW DEVELOPMENTS
NNPB Technology
NNPB
is a revolutionary process that not only controls the distribution of glass
inside the container, but also reduces the weight of glass by 33% without
having any adverse effects on the performance of the glass containers.
HNG is the first to introduce and commercialize this technology in India.
HNG
introduced the narrow neck press and blow (NNPB) technology in 2007-08, which
lead to the reduction in the consumption of molten glass per bottle without
compromising on product strength. Facilitating superior glass distribution,
this technology reinforces the bottle's resistance to pressure on the filling
line. It also leads to a decrease in logistics cost and increase in consumer
acceptability of the bottles
HNG
invested a capital of Rs. 100 Cr. to introduce this technology in India. On one
hand, this technology enabled the company to reduce production costs and
wastages; and on the other, it strengthened capacity utilization. Through NNPB,
HNG strives to remain competitive with other packing alternatives and continue
to be the market leader in India.
Narrow Neck Press and Blow Vs Blow and Blow technology:
The parison facilitates
precision in control
Enhanced glass distribution
throughout the bottle
Lighter in weight,
hence a lower consumption of molten glass
Lower cost
GROUP COMPANIES
Glass Equipment (India) Limited
Incorporated
in 1974, Glass Equipment (India) Limited is a reputed Indian container glass
manufacturing company, which accounts for the manufacture of sophisticated
equipment for glass plants. It is also an expert in manufacturing critical
spares for Glass container manufacturing industries and provides solutions in
setting up glass plants on a turnkey basis. GEIL not only provides the
equipments for the glass industries; it provides expert guidance in the entire
process of glass container manufacture.
Glass
Equipment (India) Limited is located in New Delhi (on National Highway No. 10)
at a proximity to the Bahadurgarh Plant.
AMCL
Machinery Limited is based in Butibori ( Nagpur ) on a prolific area of 5000
square meters. It is one of the well known companies in India that deals with
the design and production of machineries for the Rubber and Tyre Industry,
Transit Mixers, Cement Industry and Bulk Handling System. It also accounts for
the supply and installation of mechanical equipments in the given industries.
The company is certified with ISO 9001:2000 and is looking forward to technical
collaborations with the Japanese manufacturers.
Somany
Foam Limited was set up at BHEL Industrial Area, Haridwar with a capital outlay
of INR 360 million. It is one of the fastest growing in India that specializes
in the manufacture of the different types of foam, especially Polyurethane
Foam.
HNG
Float Glass Limited was incorporated in 2006 in Halol ( Gujarat ) under the
flagship of the HNG Group to manufacture the different varieties of float
glass. The company started with a capital outlay of INR 550 Cr and has an
installed capacity of 600 TPD.
HNG
Float Glass Limited was established by the HNG Group for a synergic
diversification of their line of business. This business initiative gave the
Group an opportunity to explore the new arenas of the glass business, which is
booming at present.
NEWS
PRESS REALEASE
HNG Q1 NET SALES UP BY 18% TO RS. 4310.000 MILLIONS FROM RS. 3640.000
MILLIONS IN FY 11 – 12
• Healthy
demand from domestic downstream industries at ~15% CAGR
Kolkata, August 1,
2011: Hindusthan National Glass and Industries Limited, one of the
frontrunners in the Indian packaging industry with over 55% dominant market
share in glass packaging segment has announced its first quarter results for
the financial year 2011-12. HNG has registered a growth of 18% in its net sales
which stands at Rs. 4310.000 Millions
as compared to Rs. 3640.000 Millions
in the last fiscal 10 - 11. The company registered a decrease in net
profit to 260.900 Millions from
Rs. 313.400 Millions in
the first quarter of last fiscal. The decreased profitability is attributed to
increased input costs of power and fuel, and rising interest rates. Power and
fuel cost have increased about 35% over similar quarter last year.
Commenting on the
results, Mr. Mukul Somany, Vice Chairman and Managing Director, HNG said,
“I am extremely pleased to announce that the first quarter has been very
exciting in terms of business developments and overall performance. Revenues
for the quarter improved due to results of healthy demand and our ability to
pass on price hikes to the end user. In this quarter, HNG acquired the assets
of Agenda Glas AG, Germany, having a new state-of-art glass
manufacturing facility. I am happy to share, within months of this acquisition,
we are already witnessing an improvement in capacity utilization which will enhance
cost efficiencies and enable us to turnaround this facility in a short span. We
are making good progress towards our plan to double the company’s existing
capacity through Greenfield and Brownfield expansions over the next four years.
This will further consolidate our position as the leading player in the
organized container glass segment.”
Further commenting
on the future plans of HNG, Mr. Somany added, “We expect growth in our
numbers in the next phase, especially due to the rise in demand from the
growing user industry, viz. liquor, pharmaceutical, food and beverage segments,
which is growing at the rate of ~15% or more“
About Hindusthan National Glass:
The HNG group,
headquartered in Kolkata, was founded by Mr. C.K. Somany, a visionary entrepreneur,
in 1946. HNG is listed on Bombay Stock Exchange, National Stock Exchange and
Calcutta Stock Exchange. It has a present market capitalization of around Rs.
18000.000 Millions. It has a
global presence with manufacturing operations spread across Rishra,
Bahadurgarh, Rishikesh, Puducherry, Nashik and Neemrana in India and Gardelegen
in Germany having strength of 12 furnaces and 48 production lines.
HNG will double
its existing capacity of 3250 TPD to 5975 TPD over next 4 years, by way of both
Greenfield and
Brownfield
expansion in India. HNG group is also diversified into the float glass segment
through HNG Float Glass Limited (an Associate Company).The other companies
under HNG’s wings are Glass Equipment (India) Limited (GEIL), Quality Minerals
Limited (QML), HNG Global GmbH (all are 100 % subsidiaries).
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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. 51.04 |
|
|
1 |
Rs. 81.08 |
|
Euro |
1 |
Rs. 67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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.