MIRA
INFORM REPORT
|
Report Date : |
12.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
GRASIM INDUSTRIES LIMITED (w.e.f. 22.07.1986) BIRLA CELLULOSIC – A Unit of
GRASIM INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
|
|
|
|
|
Registered
Office : |
Birlagram, Nagda, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
25.08.1947 |
|
|
|
|
Com. Reg. No.: |
10-000410 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.917.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17124MP1947PLC000410 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BPLG00117F |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Inorganic Industrial Chemicals. |
|
|
|
|
No. of Employees
: |
71297 (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 325349600 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Birla Group Company. It 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. Directors are reported to be experienced and respectable businessmen. 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Anil Ladha |
|
Designation : |
Company Secretary |
|
Contact No.: |
91-22-24995319 |
|
Date : |
11.04.2012 |
LOCATIONS
|
Registered Office : |
Birlagram, Nagda, |
|
Tel. No.: |
91-7366-246760/ 62/ 64/ 66 / 256556 |
|
Fax No.: |
91-7366-244114/ 246024 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22819520 |
|
Fax No.: |
91-22-22284629 |
|
|
|
|
Administrative Office: |
Staple Fiber Division, Century Bhawan, 3rd Floor, |
|
Tel. No.: |
91-22-24210182-86/ 22025012/ 24210182/ 24303169/ 22043451/ 65991600 |
|
Fax No.: |
91-22-24220892 |
|
|
|
|
Plants : |
FIBRE, PULP CHEMICAL and textiles PLANTS
Staple Fibre
Division Birlagram, Nagda – 456 331, Madhya Pradesh Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar Polyfibres and Grasilene Division
Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka Tel. No. 91-8373-232637-39 Fax No. 91-8373-232465/ 232875 91-8192-247555 Birla Cellulosic
Birladham, Kharach, Kosamba 394 120, District Bharuch, Tel. No. 91-2629-270001/5 Fax No.
91-2629-270010/270310 Grasim Cellulsic
Division Plot no.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Chemical
Division Birlagram 456 331 Nagda, Madhya Pradesh Tel No. : 91-7366 245501 – 03 Fax No. : 91-7366 246767 / 245845 Grasim Chemical
Division Plot no.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Pulp and Fibre Divisions
Birlakootam, Tel. No. 91-495-2483161-3 Fax No. 91-495-2483116 CEMENT PLANTS
Vikram Cement
District Neemuch, Khor – 458 470, Madhya Pradesh Tel. No. 91-7420-230514/ 230614/ 230830/ 235557 Fax No. 91-7420-235524 Aditya Cement
Adityapuram Sawa – Shambhupura, District Chittorgarh, Rajasthan – 312
613 Tel. No. 91-1472-22201972/ 97 Fax No. 91-1472-2220289 Grasim Cement
Grasim Vihar, Village P. O. Rawan, Tehsil Sigma, District Tel. No. 91-7726-288217/20 Fax No. 91-7726-288215/288209 Rajashree Cement
Aditya Nagar, Tel. No. 91-8441-2687221-24/ 288888 Fax No. 91-8441-2687225/ 288624/ 288365 Grasim Cement Division – South
Reddipalayam P.O. : Ariyalur, District Perambalur – 621 704, Tamilnadu Tel. No. 91-4329-249240 Fax No. 91-4329-249253 Birla White
Rajashree Nagar, Bhopalgarh, District Tel. No. 91-2920-26040/ 47/ 89 Fax No. 91-2920-264225/ 264244/ 264222 Grasim Cement –
Kotputli V and P.O. Mohanpura, Tehsil: Kotputli, Dist. Jaipur, Rajasthan –
303108, Tel No.: 91-1421-215719 Fax No.: 91-1421-288665 Textiles Vikram Woollens GH I to IV, Ghironghi, Malanpur, District Bhind – 477 117, Madhya
Pradesh Tel. No. 91-7539-283602/ 283603 Fax No. 91-7539-283339 Other Plants
Bhiwani Textile Mills/ Elegant Spinners
Birla Colony, Bhiwani – 125 021, Haryana Tel. No. 91-1664-242577 / 243126 Fax No. 91-1664-243717 / 242575 Sponge Iron Division
Vikram Ispat, Salav, District Raigad – 402 202, Tel. No. 91-2141-260110/ 260119 Fax No. 91-2141-260104/ 260122 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. Rajashree
Birla |
|
Designation : |
Director |
|
Qualification : |
BA |
|
|
|
|
Name : |
Mr. Madhav L.
Apte |
|
Designation : |
Director |
|
Qualification : |
BA |
|
|
|
|
Name : |
Mr. B. V.
Bhargava |
|
Designation : |
Director |
|
Qualification : |
Commerce Law |
|
|
|
|
Name : |
Mr. R. C.
Bhargava |
|
Designation : |
Director |
|
Qualification : |
Mathematics |
|
|
|
|
Name : |
Mr. Arun kanti
Dasgupta |
|
Designation : |
Director |
|
Qualification : |
Science |
|
|
|
|
Name : |
Mr. Cyril Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Thomas m.
Connelly |
|
Designation : |
Director |
|
Qualification : |
PHD Chemical
Engineering |
|
|
|
|
Name : |
Mr. Shailendra K. Jain |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. D. D. Rathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mr. Adesh
Gupta |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. K K
Maheshwari |
|
Designation : |
Whole Time
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashok Malu |
|
Designation : |
Company Secretary
|
|
|
|
|
Name : |
Mr. Adesh Gupta |
|
Designation : |
Manager and Chief Financial Officer |
|
|
|
|
Name : |
Mr. R. M. Gupta |
|
Designation : |
Senior Executive President, Vikram Cement and Aditya
Cement |
|
|
|
|
Name : |
Mr. K. C. Jhanwar |
|
Designation : |
Senior Executive President-Chemical Division |
|
|
|
|
Name : |
Mr. S. Natarajan |
|
Designation : |
Joint Executive President and Unit Head - Grasim Cement,
South |
|
|
|
|
Name : |
Mr. Anil K. Pillai |
|
Designation : |
Joint President and Unit Head - Rajashree Cement |
|
|
|
|
Name : |
Mr. L. N. Rawat |
|
Designation : |
Joint Executive President - Rajashree Cement |
|
|
|
|
Name : |
Mr. M. M. Tiwari |
|
Designation : |
Joint Executive President and Unit Head - Grasim Cement,
Rawan |
|
|
|
|
Name : |
Mr. K. C. Birla |
|
Designation : |
Sr. Executive President (Finance) - Cement Business |
|
|
|
|
Name : |
Mr. Rajendra Jain |
|
Designation : |
Executive President, Harihar - Fibre and Pulp Business |
|
|
|
|
Name : |
Mr. Pavan K. Jain |
|
Designation : |
Executive President - Corporate Finance Division |
|
|
|
|
Name : |
Mr. Sunay B. Kamat |
|
Designation : |
Executive President, Birla Cellulosic, Kharach - Fibre and
Pulp Business |
|
|
|
|
Name : |
Mr. Vijay Kaul |
|
Designation : |
Group Executive President (Global Marketing and Pulp
Operations) - Fibre and Pulp Business |
|
|
|
|
Name : |
Mr. S. Krishnamoorthy |
|
Designation : |
President - Textile Business |
|
|
|
|
Name : |
Mr. Prakash Maheshwari |
|
Designation : |
Group Executive President, Chief Operating Officer ( |
|
|
|
|
Name : |
Mr. Indrajit Mitra |
|
Designation : |
Executive President, Grasim Cellulosic, Vilayat - Fibre
and Pulp Business |
|
|
|
|
Name : |
Mr. Lalit Naik |
|
Designation : |
Business Head - Chemical Business |
|
|
|
|
Name : |
Mr. R. K. Shah |
|
Designation : |
Group Executive President and CMO (Mfg. and Projects) -
Cement Business |
|
|
|
|
Name : |
Mr. G. K. Tulsian |
|
Designation : |
Executive President - Chemical Business |
|
|
|
|
Name : |
Mr. Saurabh Misra |
|
Designation : |
Head-Cement Operations |
|
|
|
|
Name : |
Mr. Ashok Malu |
|
Designation : |
Compliance Officer, Company Secretary |
|
|
|
|
Name : |
Mr. Sanjeev Bafna |
|
Designation : |
Dy. Chief Financial OfficerCorporate Finance Division |
|
|
|
|
Name : |
Mr. Adesh Gupta |
|
Designation : |
Chief Financial Officer, Manager, Whole-Time Director |
|
|
|
|
Name : |
Mr. S. N. Jajoo |
|
Designation : |
Chief Marketing Officer - Cement Business |
|
|
|
|
Name : |
Mr. S. K. Saboo |
|
Designation : |
Advisor, Chairman’s Office, Fibre and Pulp Divisions |
|
|
|
|
Name : |
Mr. Pranab Barua |
|
Designation : |
Business Head - Textile Business |
|
|
|
|
Name : |
Mr. K. C. Jhanwar |
|
Designation : |
Senior Executive President - Chemical Division |
|
|
|
|
Name : |
Mr. S. V. Kulkarni |
|
Designation : |
Senior Executive President - Birla Cellulosic Division,
Kharach |
|
|
|
|
Name : |
Mr. S. S. Maru |
|
Designation : |
Senior Executive President - Staple Fibre Division, Nagda |
|
|
|
|
Name : |
Mr. O. P. Puranmalka |
|
Designation : |
Business Head - Cement Business |
|
|
|
|
Name : |
Mr. S. G. Subhrahmanyan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Thomas Varghese |
|
Designation : |
Senior Executive President - Pulp and Grasilene Divisions, Harihar |
|
|
|
|
Name : |
Mr. K. K. Maheshwari |
|
Designation : |
Managing Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
133372 |
0.16 |
|
|
23295546 |
28.57 |
|
|
23428918 |
28.73 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
23428918 |
28.73 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
7569983 |
9.28 |
|
|
55973 |
0.07 |
|
|
88398798 |
10.84 |
|
|
21588263 |
26.48 |
|
|
38054017 |
46.67 |
|
|
|
|
|
|
6806324 |
8.35 |
|
|
|
|
|
|
9084097 |
11.14 |
|
|
840255 |
1.03 |
|
|
3323542 |
4.08 |
|
|
2622613 |
3.22 |
|
|
700929 |
0.86 |
|
|
20054218 |
24.60 |
|
Total Public
shareholding (B) |
58108235 |
71.27 |
|
Total (A)+(B) |
81537153 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
|
4802304 |
-- |
|
|
5369615 |
-- |
|
|
10171919 |
-- |
|
Total
(A)+(B)+(C) |
91709072 |
-- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of a Inorganic Industrial Chemicals. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
||||||||||
|
|
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
1. Viscose Staple Fibre/Polynosic HWM/Hi-Performance/Speciality Fibre |
Tonnes |
333975 |
305087 |
|
2. Sulphuric Acid (Captive and Intermediate Product) |
Tonnes |
297850 |
253622 |
|
3. Carbon-di-Sulphide (Captive and Intermediate Products) |
Tonnes |
61800 |
54221 |
|
4. Rayon Grade Pulp (At Mavoor and Harihar) |
Tonnes |
70000 |
73360 |
|
5. Rayon Grade Caustic Soda |
Tonnes |
258000 |
242037 |
|
6. Stable Beaching Powder |
Tonnes |
29436 |
25672 |
|
7. Man-Made Fibre Fabrics |
Mtr. (in 000’s) |
8832 Spindles |
2284 |
|
8. Industrial Machinery |
Tonnes |
15950 |
## |
|
9. Poly Aluminium Chloride |
Tonnes |
36000 |
37661 |
|
10. Chloro Sulphonic Acid |
Tonnes |
23400 |
14723 |
Notes:
a) Licensed capacity not indicated due to abolition of industrial licences under The Industries (Development and Regulation) Act, 1951
b) The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter.
c) # Includes third party processing.
d) ## Quantitative data can not be given as production represents fabrication, machining, etc. against individual orders for made to order machines/equipment.
e) @ Pursuant to scheme of demerger of Cement business of the Company, the related installed capacity is transferred to Samruddhi Cement Limited but has been disclosed above.
f) *Related installed capacity is transferred pursuant to scheme of sale of Sponge Iron unit but has been disclosed above.
GENERAL INFORMATION
|
Suppliers As on 31.03.2010) |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
71297 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes :
Notes:
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors 1 : |
|
|
Name : |
G P Kapadia and Company Chartered Accountants |
|
Address : |
Mumbai |
|
|
|
|
Statutory Auditors 2 : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai |
|
|
|
|
Branch
Auditors : |
|
|
Name: |
Vidyarthi and Sons Chartered Accountants |
|
Address: |
|
|
|
|
|
Solicitors: |
· Mulla and Mulla and Craigie, Blunt and Care · Amarchan and Mangaldas and Suresh A Shroff and Company |
|
|
|
|
Membership (As on 31.03.2010) : |
Confederation of Indian Industry |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Associates: |
|
|
|
|
|
Joint Ventures : |
|
CAPITAL STRUCTURE
After 17.09.2011
Authorised Capital: Rs.1005.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.917.097 Millions
As on 31.03.2011
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
95000000 |
Equity Shares |
Rs.10/- each |
Rs.950.000 Millions |
|
150000 |
15% “A” Series - Redeemable Cumulative
Preference Shares |
Rs.100/- each |
Rs.15.000 Millions |
|
100000 |
8.57% “B” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
300000 |
9.30% “C” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
TOTAL |
|
Rs.1005.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
91698778 |
Equity Shares of Rs.10 each fully paid (Previous Year 91,683,571 Equity Shares) Of the above, 29,532,500 Equity Shares were issued as
fully paid up Bonus Shares by way of Capitalisation of Share Premium and Reserve,
19,360,609 Equity Shares were issued as fully paid up for acquiring the
cement business of Aditya Birla Nuvo Limited pursuant to Scheme of
Arrangement without payment being received in cash, 9,901,495 Equity Shares
represented by Global Depository Receipts. |
Rs.10/- each |
Rs.917.000 Millions |
|
|
|
|
|
|
|
Share Capital Suspense: |
|
|
|
14906 |
Equity Shares (Previous Year 14,906) of Rs.10 each to be issued as fully paid up pursuant to acquiring of cement business of Aditya Birla Nuvo Limited under Scheme of Arrangement without payment being received in cash. Total Issued, Subscribed and Paid up Share Capital
including Share Capital Suspense |
Rs.10/- each |
Rs.0.200 Million |
|
|
Total |
|
Rs.917.200 Millions |
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 |
917.200 |
917.000 |
916.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
80320.700 |
70441.600 |
93754.400 |
|
|
4] Employee Stock Option Outstanding |
99.500 |
95.100 |
104.500 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
81337.400 |
71453.700 |
94775.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5562.100 |
7436.400 |
22050.000 |
|
|
2] Unsecured Loans |
2575.400 |
2939.800 |
11899.500 |
|
|
TOTAL BORROWING |
8137.500 |
10376.200 |
33949.500 |
|
|
DEFERRED TAX LIABILITIES |
2298.200 |
2521.600 |
8643.700 |
|
|
|
|
|
|
|
|
TOTAL |
91773.100 |
84351.500 |
137369.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15418.100 |
17860.600 |
70882.800 |
|
|
Capital work-in-progress |
1009.600 |
429.800 |
12186.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
69102.500 |
63247.900 |
46091.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
8.500 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4216.500 |
4172.400
|
13782.400
|
|
|
Sundry Debtors |
4787.000 |
3450.100
|
5599.300
|
|
|
Cash & Bank Balances |
146.500
|
159.200
|
1133.800
|
|
|
Other Current Assets |
22.000
|
3851.200
|
10458.100
|
|
|
Loans & Advances |
5363.800
|
9.500
|
4.800
|
|
Total
Current Assets |
14535.800
|
11642.400
|
30978.400
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2835.000
|
2014.400
|
10106.400 |
|
|
Other Current Liabilities |
873.700
|
1009.300
|
6762.900
|
|
|
Provisions |
4584.200
|
5805.500
|
5908.800
|
|
Total
Current Liabilities |
8292.900
|
8829.200
|
22778.100
|
|
|
Net Current Assets |
6242.900
|
2813.200
|
8200.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
91773.100 |
84351.500 |
137369.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
45170.400 |
81721.100 |
108287.100 |
|
|
|
Interest and Dividend income |
2519.100 |
2237.000 |
0.000 |
|
|
|
Other Income |
1747.600 |
1520.600 |
3504.500 |
|
|
|
TOTAL (A) |
49437.100 |
85478.700 |
111791.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed
|
19525.800 |
21680.700 |
30850.800 |
|
|
|
Manufacturing Expenses
|
6747.800 |
17002.600 |
27316.900 |
|
|
|
Purchases of Finished and Trade
Goods
|
0.000 |
309.100 |
659.400 |
|
|
|
Payment to and Provisions for
Employees
|
3000.100 |
4809.300 |
6003.900 |
|
|
|
Selling, Distribution, Administration
and Other Expenses
|
2160.200 |
11950.800 |
19285.500 |
|
|
|
Captive Consumption
|
(37.900) |
(106.700) |
(434.300) |
|
|
|
Increase of decrease of Stock
|
(129.700) |
109.800 |
(335.400) |
|
|
|
TOTAL (B) |
31266.300 |
55755.600 |
83346.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
18170.800 |
29723.100 |
28444.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
455.900 |
1203.900 |
1396.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
17714.900 |
28519.200 |
27048.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1762.900 |
3511.400 |
4569.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
15952.000 |
25007.800 |
22478.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4134.900 |
4086.800 |
5998.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (I) |
11817.100 |
20921.000 |
16479.600 |
|
|
|
|
|
|
|
|
|
|
DEBENTURE
REDEMPTION RESERVE NO LONGER REQUIRED |
0.000 |
50.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
22190.700 |
21809.700 |
10644.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
25000.000 |
17500.000 |
2000.000 |
|
|
|
Corporate Dividend Tax |
136.600 |
339.500 |
413.800 |
|
|
|
Proposed Dividend |
1834.000 |
2750.500 |
2750.200 |
|
|
|
Transfer to Debenture Redemption Reserve |
0.000 |
0.000 |
150.000 |
|
|
BALANCE CARRIED
TO THE B/S |
7037.200 |
22190.700 |
21809.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
8250.700 |
7282.600 |
5003.000 |
|
|
|
Other Earnings |
24.600 |
0.300 |
0.500 |
|
|
TOTAL EARNINGS |
8275.3 |
7282.900 |
5003.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7398.400 |
7765.200 |
9953.400 |
|
|
|
Stores & Spares |
65.800 |
1320.600 |
3023.200 |
|
|
|
Capital Goods |
246.500 |
2774.500 |
2326.300 |
|
|
TOTAL IMPORTS |
7710.700 |
11860.300 |
15302.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
128.86 |
191.51 |
179.73 |
|
QUARTERLY RESULTS
Rs.
In Millions
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
|
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
|
10439.400 |
12485.200 |
12662.700 |
|
Total Expenditure |
|
6704.800 |
9129.800 |
9574.800 |
|
PBIDT (Excl OI) |
|
3734.600 |
3355.400 |
3087.900 |
|
Other Income |
|
804.300 |
1706.500 |
858.700 |
|
Operating Profit |
|
4538.900 |
5061.900 |
3946.600 |
|
Interest |
|
106.000 |
106.800 |
71.600 |
|
PBDT |
|
4432.900 |
4955.100 |
3875.000 |
|
Depreciation |
|
350.700 |
356.300 |
365.700 |
|
Profit Before Tax |
|
4082.200 |
4598.800 |
3509.300 |
|
Tax |
|
940.900 |
1150.400 |
764.500 |
|
Profit After Tax |
|
3141.300 |
3448.400 |
2744.800 |
|
Net Profit |
|
3141.300 |
3448.400 |
2744.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
23.90
|
24.47
|
14.77
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
35.32
|
30.60
|
20.76
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
53.26
|
84.76
|
22.07
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.35
|
0.24
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.20
|
0.27
|
0.60
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.75
|
1.32
|
1.36
|
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry
Creditors:
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors: |
|
|
|
|
a) Micro, Small and Medium Enterprises |
0.000 |
0.000 |
0.000 |
|
b) Others |
2835.000 |
2014.400 |
10106.400 |
|
Total |
2835.000 |
2014.400 |
10106.400 |
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
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 |
Yes |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
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 |
Yes |
HISTORY
An arm of Aditya Birla Group is aggressively known as the
Grasim Industries Limited. It was incorporated in 25th August 1947, exactly 10
days after
The company started its fabrics Production at
Grasim sets up Birla International Marketing Corporation (BIMC), a merchant
exporter during the period of 1992 and in the same year the company issued
Global Depositary Receipt (GDR) for US$ 90 million. The company ventured into
Sponge iron segment, the Vikram Ispat, India's third largest gas-based sponge
iron plant was commissioned at Salav in Alibag, Maharashtra in the year 1993
and Birla Consultancy and Software Services was sets up in the year, to provide
IT consulting services and for software development. In 1994, the company made
second issue of GDRs for US $100 million. During the period of 1995, the Grasim
established its two Greenfield Cement plants namely Grasim Cement at Rawan
(Chattisgarh) and Aditya Cement at Shambhupura (Rajasthan), the Vikram Woollens
Spinning unit at Malanpur (Madhya Pradesh) was sets up in the equivalent year.
The first phase of the company's fourth VSF plant was made to order in 1996 at
Kharach (
The Lawson Competency Centre was activated as a division of Birla Consultancy
and Software Services, the software arm of Grasim in the year 2000, followed a
tie up with Lawson Software (USA), among Fortune's top five private software
companies. Under the cement business, the four Ready-Mix Concrete plants
commissioned in the year 2001 with an aggregate capacity of 1 million cubic
meters. The company's consultancy and software services spun off; becomes
separate entity, Birla Technologies Limited in 2001 and Grasim divests its
holding in Birla Technologies to PSI Data Systems. VSF Research and Application
Centre was established in the year 2002 at Kharach in
During the year 2003 Grasim's Chemical Division received the SA 8000 (Social
Accountability) and OHSAS 18001 certifications and in 2004, for the recognition
of its social accountability initiatives the Staple Fibre Division and
Engineering and Development Division of Grasim, Nagda received SA 8000:2001
certification from SAI. During the year 2004, the company completed the
implementation process to de-merge the cement business of L and T and made open
offer by Grasim, with the latter acquiring controlling stake in the newly
formed company UltraTech. The company acquired St. Anne Nackawic Pulp Mill,
Some facts on the company embrace, Grasim in Aditya Birla
Group is the world's largest producer of VSF, the 11th largest cement producer
in the world and the seventh largest in Asia, Largest merchant producer of
sponge iron, Second largest producer of caustic soda in India and the Grasim
and Graviera range of fabrics signify the 'power of fashion'.
The Company has posted an impressive performance during the
year. Its turnover increased by 21% at Rs.115520.000 Millions. Net Profit
(before extraordinary items) rose appreciably by 33% at Rs.20480.000 Millions
Cement and VSF businesses continued to be the growth drivers.
The performance of the VSF business has been encouraging. Sales volumes
recorded an increase of 8% at 269,781 tons. Despite the steep rise in input
costs, Operating margins were higher due to realisations being up by 21% at
Rs.103316 per ton.
The Cement business recorded a good performance. Both Production and Sales
volumes grew by 7% at 15.36 Mn. tons and 15.54 Mn. tons respectively. The share
of blended cement increased from 62% to 68%. Higher volumes and economies of
scale contributed to profitability. However, the sharp hike in fuel cost led to
lower operating margins. The Company continued its efforts to achieve over 100
percent capacity utilisation to meet the growing demand. RMC (Ready Mix
Concrete) volumes expanded by 36%, buoyed by the rapid expansion in RMC network.
The White Cement performance too has been good. Production was higher by 12% at
407,882 tons, while Sales volumes extended by 8% at 396,295 tons.
The Sponge Iron business posted improved performance. Production at 562,000
tons reflected an increase of 7%. Sales volumes, however, were lower by 2% at
557,187 tons. Realisations expanded by 24% owing to a surge in global scrap
prices. The gains on this account were offset by higher prices of iron ore,
naptha and propane. The non-availability of adequate quantity of natural gas
and its pricing continued to remain an area of concern.
The Chemical business put up a moderate performance. Production of caustic
soda, which was affected in the corresponding year due to the breakdown of a
captive power plant, grew by 38% at 188,537 tons. Sales volumes too moved in
tandem, growing by 36% at 187,356 tons. But for the cost pressure on key inputs
and fall in realisation, its performance would have been better.
GROWTH OF THE
EXISTING BUSINESSES
Expansion of Viscose
Staple Fibre (VSF) Capacity
A
total capex of Rs.24000.000 Millions has been approved by the Board for the VSF
business. This includes the cost of setting up a 120,000 TPA Greenfield VSF
plant at Vilayat (
Acquisition of
Domsjo Fabriker AB, a Swedish Pulp Manufacturing Company
The Company has, 1/3rd stake in Aditya Holding
AB, Sweden, which controls Domsjo Fabriker AB, Sweden, a leading manufacturer
of specialty pulp used in the manufacture of VSF.
Expansion of
Cement Capacity
A total capex of Rs.
110000.000 Millions has been
approved by the UltraTech Board. This includes brownfield expansions
aggregating to 9.2 million TPA at Chhattisgarh and Karnataka units which are
expected to be operational from early FY14. In the existing projects, UltraTech
is strengthening logistic support, waste heat recovery, etc., for future
growth.
Acquisition of ETA
Star Cement, UAE
In September 2010, UltraTech completed the
acquisition of ETA Star Cement Company LLC with its assets comprising of 2.3
million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4
million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this
acquisition, UltraTech gained direct access to the markets in the
FINANCIAL PERFORMANCE
The Company has reported improved results on the
back of superior performance from VSF, a core business of the Company, which
moved in tandem with the other competing fibres. The performance of the
Company’s Cement subsidiary, UltraTech, was impacted mainly due to the slowdown
in the realty sector. At the consolidated level, while there is no change in
the Revenue and Operating Profit of the Company, on account of the demerger/merger
of the Cement Business, the Net Profit after minority share has been impacted
due to the direct participation of the Company’s shareholders in SCL/UltraTech
on demerger/merger of the Cement business of the Company,
AWARDS AND ACCOLADES
Some of the significant accolades earned by the
Company during the year include:
- Greentech Environment Award 2010 – Gold: Harihar
Polyfibers, Harihar.
- Most Innovative Environmental Project Award 2011 by CII
Godrej Green Business Centre: Harihar Polyfibers, Harihar.
RESEARCH AND DEVELOPMENT
The Company’s unwavering commitment to R&D
and to sustainably surpass “Quality” requirements in a holistic manner has been
endorsed by accreditations from the Ministry of Science and Technology, Government
of India, for the newly set up “Wood and Pulp Research Centre” at Harihar
(Karnataka) and the “Textile Research and Application Development Centre”
(TRADC) at Kharach (Gujarat). The “Birla Research Institute for Applied
Sciences” already enjoys this status. The Pilot Plant facilities at the new
state-of-theart, “Wood and Pulp Research Centre,” became operational in July
2010. It fosters continuous improvements in process, product quality and
environment management of the Pulp plants through ongoing projects in areas
related to Wood morphology, pulping and bleaching optimization and quality
improvement. This centre will help the business in evaluating suitability of
various species of wood for DG pulp and aid customised process design. The
Birla Research Institute for Applied Sciences is actively engaged in
development and patenting of a novel next generation fibre besides having
developed process for Flame Retardant Viscose Fibres for which patents have
been obtained. TRADC has been facilitating the market seeding of new fibres so
developed through evolving their optimal downstream processing techniques and
producing test quantities of finished products with them. These endeavours have
resulted in the Market launch of a Denim collection based on their solvent spun
fibre “Excel” as also a special trousers collection based on a new colour fast
spun dyed fibre. Work is ongoing to develop and seed specialty products based
on functional fibres providing added value and exclusive convenience to their
end-customers. All their R&D Centres are being further strengthened with
new equipment and analytical instruments.
Towards upgrading their environmental standards,
a plant based on a novel process to reduce emissions has been commissioned at
one of their production lines for confirming the results obtained in pilot
trials.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
Globally as well as locally, two clear themes
have dominated the economy in the year gone by, namely, the resurgence in
growth post the economic crisis and the increasing pressure on natural
resources which is pushing the prices of inputs and energy to record levels.
The pressure on resources has been exacerbated further by natural disasters
like earthquake and tsunami in
After the economic crisis, turnaround was faster
in
The macro-economic scenario has impacted the
Company’s businesses. While the VSF business witnessed growing demand and
realisations, these were accompanied by increasing pressure on prices of key
raw materials. The cement industry was marked by volatility in prices due to
oversupply on the one hand and the sluggish demand growth on the other. Global
hardening of energy prices, more particularly in the second half, had an
adverse impact on the cement sector as power, fuel and freight constitute major
part of the cost pie.
STRATEGIC INITIATIVES
Accelerating Growth of VSF Business
With an objective of retaining their leadership
in VSF business and gain from the growing demand for textiles in emerging
market, the Company is setting up a 120,000 TPA Greenfield VSF plant at
Vilayat,
In line with their strategy of backward integration,
they will also establish a caustic soda plant at Vilayat.
Acquisition of Domsjo
Securing pulp availability for VSF expansions
remains an important area of focus. Towards this objective, the Company has
acquired 1/3rd stake in Aditya Holding AB, Sweden, which acquired Domsjo
Fabriker AB (Domsjo), Sweden, at an enterprise value of Swedish Kroner (SEK)
2.12 Billion (approx. Rs. 15700.000 Millions). This will entail an nvestment of SEK 380 Million (approx. Rs. 2800.000
Millions) and will be funded entirely out of internal accruals.
Accelerating Growth of Cement Business
In line with its strategy to scale up its
presence in the cement sector, UltraTech Cement Ltd., (UltraTech), a subsidiary
of the Company, is setting up brownfield expansions aggregating to 9.2 million
TPA at its units in Chhattisgarh and Karnataka. This will increase the capacity
of cement business by 20%. Orders have already been placed for major
equipments. The projects are expected to be operational from early FY14.
UltraTech is working on further projects to consolidate its leadership position
in the business.
Acquisition of ETA Star Cement, UAE
In September 2010, UltraTech completed
acquisition of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding
units of 2.1 million TPA in UAE, 0.4 million TPA in
UltraTech’s capacity thus stands augmented to 52
million TPA which makes it the 9th largest cement company in the World.
Performance Review
FY11 was quite challenging for the cement
industry. While on the one hand, demand growth weakened due to lower realty and
infrastructure spending, extended monsoons and logistical constraints further
dampened the construction activity on the other. On the supply front,
overcapacity continued to plague the industry. During the year, the industry
witnessed capacity addition of around 28 million TPA in addition to the 60
million TPA added in the previous year. Industry capacity utilisation was at
75% against 84% recorded in the previous year.
Surplus scenario together with sluggish demand
and volatile prices adversely impacted domestic realisations which were lower
by 4% as compared to the previous year.
On the cost front, higher imported as well as domestic coal prices
resulted in a 25% increase in energy costs which rose substantially from Rs. 671/ton
to Rs. 838/ton. During the year, imported coal prices
rose by 36% from CIF US$ 89/ton to US$ 121/ton. In addition to normal price
hike in domestic coal, there was a further increase in domestic coal prices in
the range of 30%-150% from 1st March, 2011, onwards. The full impact of the
increase will be seen in FY12. The impact in price hike was partially offset by
improved efficiency. The share of captive power has further increased with
improvement in efficiency of captive power generation plants. 78% of total
power requirement is now met through captive generation. In order to conserve
natural resources, the Company has enhanced the use of alternative fuels.
Freight and handling expenses for domestic dispatches increased on account of
hike in freight rates linked with the increase in diesel prices. The overall
lead distance shortened considerably over the previous year with stabilisation
of new capacities and a close focus on main markets.
Both RMC and White Cement recorded good
performance with the turnover for RMC recording a growth of 24% and that of
White Cement 19%. White Cement Business growth is linked with higher sale of
Wall Care Putty and other white cement products.
The decline in cement prices, coupled with higher
cost, led to severe contraction of margins and PBIDT.
Outlook for Cement Business
The cement industry is likely to grow at over 8.5%
per annum to sustain the growth in infrastructure, housing development and
government initiatives in rural development. Though the government has
demonstrated its intention to pursue aggressive nation building by doubling
capital outlay in XIIth Five-Year Plan, its
implementation is critical. The present surplus scenario may last for
the next 8 to 10 quarters. The pricing environment remains challenging due to
the surplus capacity. With rising energy costs due to greater reliance on
imports, margins may continue to remain under pressure.
Capex Plan – Cement Business
A total capex of Rs.
110000.000 Millions has been
slated for the cement business comprising of Rs.
51500.000 Millions on
expansion projects and Rs.
58500.000 Millions towards
augmentation of the grinding and evacuation facility, logistics infrastructure,
captive thermal power plant, waste heat recovery system, modernisation, etc.
Performance Review
FY11 has been a buoyant year in the history of the
fibre industry with the prices of all fibres reaching their all-time high. This
was mainly driven by:
● Improved
demand for textiles compared to Calender Year (CY) 2009 despite concerns on
consumption in US and European Union markets. Lower purchases in CY 2009 in the
value chain also partly resulted in a higher demand in the current year
(pipeline filling).
● Continued
support of various stimulus packages across the globe.
● The
significant drop in production of cotton in China (6.5 million tons in CY 2010
against 7.0 million tons in CY 2009) and Pakistan (1.9 million tons in CY 2010
against 2.1 million tons in CY 2009) due to vagaries of nature resulted in a
significant increase in prices of cotton and consequently of VSF and PSF.
● Cost
push effect — High cost of pulp and increase in crude price also contributed to
price rise.
The business earned PBIDT of Rs. 14790.000
Millions at a standalone level. Production and sales remained at last year’s
levels as acute water shortage in June-July 2010 led to an extended shutdown at
the Nagda plant. The Company achieved 98% capacity utilisation (excluding
shutdown period). At standalone level, operating margin moderated marginally
due to the rise in pulp prices and other input costs. Average pulp cost increased
by 27%.
At the consolidated level in the business, PBIDT
grew by 21% with better performance from the Company’s pulp JVs in
Sector Outlook
Global VSF demand is expected to grow at 5-6% in
both the textiles and the non-woven segments over the long term. The entire
fibre market pie is expanding, on account of the population growth and
prosperity in key emerging markets. Increasing consumer awareness about the
benefits of cellulose fibres has attracted greater focus on offering innovative
VSF variants, in terms of colour, texture and other value-added properties. The
trends promise huge innovations in specialty fibres and their applications.
The profitability
in the short term will be governed by the prices of competing fibres, inputs
and energy costs. Cotton production in the forthcoming season will also be the
key influencing factor.
Business Outlook
The Company’s efforts are aimed at creating
differentiation in quality as well as range of fibres vis-ŕvis its competitors
in the next year. The business will also continue to invest in building a
strong R&D base for both fibre and pulp. VSF business is poised for
accelerated growth with sizable expansion projects under implementation and
rising demand.
Performance Review
The chemical business achieved record production
and sales volume supported by a capacity utilization of 94%. This is despite
the water shortage impacting operations in the first half. Sales volumes grew
by 5%. Chlorine and HCl prices recovered from the abnormally low levels in the
last year. However, caustic soda prices declined due to cheap imports. Higher
raw material and energy cost led to lower operating margin.
During the year, a 10,000 TPA Chlorinated
Paraffin Wax plant was commissioned for increasing the captive use of chlorine.
The capacity of the plant will be doubled in FY12.
Sector Outlook
The demand outlook for caustic looks positive with
higher offtake from the aluminium and fibre industries and normal demand growth
from the other end-user industries. Caustic prices have improved in the last
quarter, and the trend is expected to continue with a gradual gain in capacity
utilisation in the industry.
Business Outlook
A 182,500 TPA Caustic plant and a 60 MW power
plant are being put up at Vilayat alongside the VSF plant, mainly for captive
use. This will entail an investment of Rs.
7720.000 Millions. The
Business expects to maintain high capacity utilisation given the favourable
demand outlook.
Grasim Bhiwani Textiles Limited (GBTL)
The Textile subsidiary, GBTL, recorded a revenue
growth of 19% from Rs. 2880.000 Millions to Rs. 3420.000
Millions, driven both by higher offtake in the Ready Made Garment segment and
better pricing. The business has also intensified its focus on high-end
segments like women’s wear. Higher fibre and yarn prices were passed on to
customers. As a result, the business was able to maintain its PBIDT margin. The
Company earned a net profit of Rs.
43.000 Millions during the
year.
FIXED ASSETS
·
Land
·
Building
·
Railway
Sliding
·
Plant
and Machinery
·
Ships
·
Furniture,
Fittings and Office Equipments
·
Vehicles
·
Intangible
assets – Computer Software and Trade Mark
WEBSITE
DETAILS
PROFILE:
Company was incorporated on 25 August 1947, just 10 days after
MILESTONES
Grasim hives off its sponge iron business by
way of slump sale
Grasim commissions a
Vikram Cement and Aditya Cement wins the
Federation of Indian Mineral and Industries' "Social Awareness Award for
the year 2008-09".
Grasim's plants Vikram Cement (Khor, Madhya
Pradesh) and Aditya Cement (Sambhupura, Rajasthan), have won the TERI (The
Energy and Resources Institute) CSR Award for their sterling work in 37
villages among 12,550 families in the area of healthcare.
Mr. Ratan Shah, the Group Executive President and Chief Marketing Officer,
Cement and Mr. R. M. Gupta, Sr. Executive President, Vikram Cement and Aditya
Cement, received the Award at the hands of the honourable President of India,
Mrs. Pratibha Patil on 5 June at Vigyan Bhavan,
Grasim commissions brownfield expansion at Aditya Cement at Shambhupura
(Rajasthan).
Grasim divests Shree Digvijay Cement Company Limited.
Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani
Textiles Limited.
Eighteen ready-mix concrete plants commissioned.
Formed joint venture company, Birla Jingwei Fibres Company Limited and
acquired VSF plant in
Acquired St. Anne Nackawic Pulp Mill,
Completion of the implementation process to
demerge the cement business of L and T and completion of OpenOffer by Grasim,
with the latter acquiring controlling stake in the newly formed company
UltraTech.
UltraTech Board reconstituted with Mr. Kumar
Mangalam Birla taking over as Chairman.
The Staple Fibre Division and Engineering and
Development Division of Grasim, Nagda receives SA 8000:2001 certification from
SAI in recognition of its social accountability initiatives.
The board of engineering major, Larsen and Toubro Limited (L and T)
decides to de-merge its cement business into a separate cement company,
UltraTech CemCo Limited, now UltraTech Cement Limited.
Grasim's Chemical Division receives the SA 8000 (Social Accountability)
and OHSAS 18001 certifications.
Grasim divests
Merger of Dharani Cements Limited in Grasim Industries Limited.
VSF Research and Application Centre set up at Kharach in
Consultancy and software services spun off; becomes separate entity,
Birla Technologies Limited.
Grasim acquires 10% stake in L and T. Subsequently increases stake to
15.3% by October 2002.
Four Ready-Mix Concrete plants commissioned with an aggregate capacity
of one million cubic meters.
2000
The Lawson Competency Centre is set up as a division of Birla
Consultancy and Software Services, the software arm of Grasim, following a tie
up with Lawson Software (USA), among Fortune's top five private software
companies.
Atholville Pulp Mill at
The cement business of Group company, Indian Rayon and Industries
Limited demerged to Grasim.
Grasim's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor
are closed down owing to lack of raw material.
Third issue on 16 September 1999 to Indian Rayon's GDRs holders: Three
GDRs in Grasim for every 10 GDRs in Indian Rayon, on de-merger of its Cement
business into Grasim. Nos: 1,624,336
The first phase of Grasim's fourth VSF plant is commissioned at Kharach
(
Grasim commissions two
Vikram Woollens, spinning unit at Malanpur (Madhya Pradesh) set up.
Second issue of GDRs on 15 June 1994 for US $100 million. Nos: 4,878,048
Birla Consultancy and Software Services is set up, to provide IT
consulting services and for software development.
Grasim sets up Birla International Marketing Corporation (BIMC), a
merchant exporter.
First GDR issue on 2 December 1992 for US$ 90 million. Nos: 6,933,745
A third production line is added at Vikram Cement.
Vikram Cement's second production line is commissioned.
Vikram Cement — Grasim's first cement plant goes on stream at Jawad
(Madhya Pradesh).
Grasim's third rayon plant – at Harihar, Karnataka – goes into
production.
VSF and Pulp plant at Harihar (Karnataka) based on in-house engineering
and know-how.
Nagda commences production of rayon grade caustic soda — for VSF
production.
Rayon production commences at Mavoor, Kerala.
Composite textile mill at Bhiwani (Haryana).
Inception of Engineering Division for plant and machinery for VSF.
VSF production commences at Nagda (Madhya Pradesh).
Production of fabrics at
Grasim Industries incorporated.
ACQUISITIONS AND RESTRUCTURING
2007
Grasim divests Shree Digvijay Cement Company Limited.
Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani
Textiles Limited.
Formed joint venture company, Birla Jingwei Fibre Company
Limited and acquired VSF plant in
Acquired St. Anne Nackawic Pulp Mill,
Completion of the implementation process to de-merge the cement business of L and T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech.
UltraTech Board reconstituted with Mr Kumar Mangalam Birla
taking over as Chairman.
The board of engineering major, Larsen and Toubro Limited (L and T) decides to de-merge its cement business into a separate cement company, UltraTech CemCo Limited, now UltraTech Cement Limited
Grasim divests
Merger of Dharani Cements Limited in Grasim Industries Limited.
Consultancy and software services spun off; becomes separate entity, Birla Technologies Limited.
Grasim acquires 10 per cent stake in LandT. Subsequently
increases stake to 15.3 per cent by October 2002.
Atholville Pulp Mill at
Dharani Cements Limited.
Shree Digvijay Cements Limited.
The cement business of Group company, Indian Rayon and
Industries Limited transferred to Grasim.
BUSINESS
DESCRIPTION
Grasim Industries Limited (Grasim) is a company of the
Aditya Birla Group. The Company has four segments: Fibre and Pulp, Chemicals,
Cement and Textiles. Fibre and Pulp segment includes Viscose Staple Fibre and
Rayon Grade Pulp. Chemicals include Caustic Soda and Allied Chemicals. In
cement, Grasim through its subsidiary UltraTech Cement Limited (UltraTech), has
a capacity of 52 million tons per annum. Cement segment includes Grey cement,
Ready-mix concrete and White cement. Textile segment includes yarn. In August
2011, it acquired Aditya Birla Power Ventures Ltd. The Companies operating
facilities are located in
PRESS
RELEASE
Birla
Cellulosic plans expansion at Kosamba
April
12, 2012
The Gujarat-based Birla Cellulosic, a viscose staple fibre
unit of Grasim Limited, will expand its exiting facilities and set up a textile
research and application development centre at its plant at Kosamba near
Bharuch. The cost of the project is about Rs.2600.000 Millions. The R and D centre is being set up at Kosamba
because it has the necessary infrastructure and is also close to Mumbai.
According to company sources, Rs.2000.000 Millions would be
invested in putting up the third VSF manufacturing line at Kosamba to add
35,000 tpa by 2007. In addition, Rs.300.000 Millions will be invested on
setting up a textile research and application development centre and Rs.300.000
Millions on de-bottlenecking to increase capacity from the existing 60,000 tpa
(175 tpd) to 72,000 tpa (200 tpd) by April 2004. The proposed R and D centre
will cater to the entire value chain under one roof and is slated for
completion by December 2004.
Grasim
reports better performance for Q3FY12
24
January 2012
|
|
Rs. in Millions |
|
|
Consolidated net revenue |
6,36.400 |
|
|
Consolidated net profit |
66.900 |
|
|
Capex under implementation |
|
|
|
|
VSF and allied chemicals |
3,40.000 |
|
|
Cement |
11,00.000 |
17%Consolidated
financial performance:
Grasim Industries Limited, an Aditya Birla Group company, today announced
its results for the third quarter ended 31st December 2011. The company’s
performance has been encouraging. Cement business has been the major driver.
Net revenue increased by 17 per cent at Rs. 636.400 Millions (Rs. 546.100
Millions). PBIDT grew by 23 per cent from Rs. 126.700 Millions to Rs.1,55.400
Millions. Net profit at Rs. 66.900 Millions (Rs. 50.200 Millions) rose by 33
percent.
Production and sales volumes:
|
Products |
|
Production |
Sales |
||||
|
|
Q3FY12 |
Q3FY11 |
Per cent change |
Q3FY12 |
Q3FY11 |
Per cent change |
|
|
Viscose staple fibre |
M.T. |
84,233 |
83,026 |
1 |
78,215 |
84,621 |
(8) |
|
Cement (consolidated)* |
Mn M.T. |
10.44 |
9.90 |
5 |
10.44 |
9.93 |
5 |
|
White cement |
Lakh M.T. |
1.54 |
1.47 |
5 |
1.50 |
1.44 |
4 |
|
*Including Star Cement volumes |
|||||||
Viscose
Staple Fibre (VSF)
The business performance was subdued due to the challenging
environment. After witnessing an upturn in September, sentiments were affected during
the quarter as cautious approach was adopted by the textile value chain, given
the Euro zone uncertainties. Consequently, demand and prices remained under
pressure, impacting volumes by 8 per cent. Increase in input costs due to rupee depreciation, impacted operating margins.
Cement subsidiary (UltraTech Cement)
UltraTech reported revenue of Rs. 4,86.500 Millions and PAT of Rs. 59.800
Millions. The sector demand growth improved to around 10 per cent during the
quarter on account of a lower base effect in the corresponding quarter. The
sector capacity utilisation during the quarter improved to 73 per cent as
compared to 68 per cent in the preceding quarter. Although post-monsoon, the
pricing scenario indicated some improvement, the pricing environment is
expected to remain challenging.
Variable cost rose
by 16 per cent, mainly on account of increase in energy cost. This is
attributable to 30 per cent rise in the price of domestic coal during Q4
FY10-11 and continuous increase in price of imported coal as also the
rupee devaluation
by approximately 14 per cent.
Chemical business
The chemical
business continued to deliver good performance. Caustic production at 68,741
tonnes grew by 3 per cent supported by full capacity utilisation. Sales volumes
were higher by 6 per cent. Caustic prices remained firm in line with
international trends.
VSF and chemical capex
The VSF (120,000
TPA) and chemical (182,500 TPA) greenfield projects at Vilayat, Gujarat and
brownfield expansion (36,500 TPA) of VSF at Harihar, Karnataka are in line with
the schedule. The construction activity is in full swing. These projects are
slated for commissioning in FY13. A total capex of Rs. 3,400 crore has been
earmarked for the VSF and chemical business for expansion projects and modernisation.
Further, plans are afoot to set up a 180K TPA greenfield VSF plant in Turkey in
joint venture with Group companies. Grasim has invested 1/3rd of the initial
capital required for acquiring land and meeting initial expenses.
Cement capex
The Chhattisgarh
and Karnataka brownfield expansion projects aggregating 9.2 million TPA, are on
track. Both
these projects are
expected to be operational by Q1FY14.
A total capex of
Rs. 11,00.000 Millions is under implementation in the cement business towards
the expansion projects, strengthening of logistic infrastructure, setting up of
captive thermal power plants, ready-mix concrete
plants and
modernisation projects.
Outlook
In VSF, the demand may remain volatile in the present macro economic
conditions. In cement, the surplus scenario should subside gradually over a
period of 2-3 years with an expected growth in demand. The changed pricing
mechanism by Coal India Limited with effect from January 2012 will lead to
increase in energy costs. The rising energy cost is a challenge in both the
businesses in the present context.
Capacity
expansions under implementation will enable the company to grow at a rapid pace
and consolidate its leadership even further.
5 September
2011
Cement performance for August 2011
The cement production of UltraTech Cement, the Aditya Birla company, for the
period April-August 2011 stood at 15.830 Millions mt as against 15.810 Millions
mt during April-August 2010.
Dispatches stood at 158.6 Millions mt during April-August 2011 vis-ŕ-vis 15.760
Millions mt in the corresponding period last year.
Cement production for the month of August 2011 grew by 2.3 per cent at 3.020
Millions mt, and dispatches at 3.060 Millions mt by 3.4 per cent over that of
August 2010.
1 August 2011
Cement performance for July 2011
The cement production of UltraTech Cement, the Aditya Birla company, for the
period April-July 2011 stood at 128.05 Millions mt as against 1286.000 Millions
mt during April-July 2010. Dispatches stood at 1279.400 Millions mt during
April-July 2011 vis-a-vis 1280.500 Millions mt in the corresponding period last
year.
Cement Production for the
month of July 2011 grew by 7.3% at 309.800 Millions mt, and dispatches at
313.300 Millions mt by 7.4% over that of July 2010.
30 July, 2011
Grasim reports better performance for Q1FY12
|
|
Rs. In Millions |
|
Consolidated net revenue |
59370.000 |
|
Consolidated net profit |
7520.000 |
|
Capex under Implementation |
|
|
VSF and Allied Chemicals |
34000.000 |
|
Cement |
110000.000 |
Consolidated Financial Performance:
Grasim Industries Limited, an Aditya Birla Group Company, today announced
results for the 1st quarter ended 30th June 2011. The Company has recorded
higher revenue and net profit led by better performance of both its businesses,
VSF and Cement. Net Revenue at Rs.59370.000 Millions (Rs.51190.000 Millions)
increased by 16 per cent. PBIDT grew by 19 per cent from Rs.14640.000 Millions
to Rs.17480.000 Millions. Net profit was higher by 31 per cent at Rs.7520.000
Millions (Rs.5750.000 Millions).
Production and sales volumes:
|
Products |
|
Production |
Sales |
||||
|
|
Q1FY12 |
Q1FY11 |
Per
cent change |
Q1FY12 |
Q1FY11 |
Per
cent change |
|
|
Viscose Staple Fibre |
M.T. |
69,898 |
69,328 |
1 |
54,839 |
67,302 |
-19 |
|
Cement (Consolidated)* |
Mn M.T. |
10.32 |
9.92 |
4 |
10.34 |
9.85 |
5 |
|
White Cement |
M.T. |
120,982 |
133,015 |
-9 |
1,22,277 |
1,33,052 |
-8 |
|
*Including Star Cement volumes |
|||||||
Viscose
Staple Fibre (VSF)
The textile industry witnessed a significant softening
in prices of all fibres from their peak level as cotton prices declined
sharply. The high inventory level in the value chain has resulted in lower
demand.
Despite the challenging environment, revenue grew by 5
per cent aided by higher realisations.
Higher margins and better performance from the Pulp JVs resulted in an enhanced
operating profit. During the quarter, production was impacted due to the
suspension of operations at Nagda because of water shortage. The plant resumed
operations from 30th June, 2011 with the arrival of monsoons. The total
shutdown has lasted for 27 days as against 55 days in the last year including
31 days in the corresponding quarter.
Cement
Subsidiary (UltraTech Cement)
UltraTech Cement clocked in revenues of Rs.46170.000
Millions and PAT of Rs.6690.000 Millions. The quarter was adversely impacted by
the 30 per cent increase in the domestic coal price
in March, 2011.
Alongside, imported coal price rose by 30 per cent YoY resulting in a substantial escalation in costs. The
domestic volumes were hit by the present economic slowdown and surplus
scenario.
Chemical Business
Production grew by 5 per cent though operations were affected due to the water
shortage at Nagda. Caustic prices moved upwards, driven by positive sentiments in
the domestic and international markets.
Stand-alone Financial Performance
The standalone results for the quarter have also been impressive with Net
Profit up by 40 per cent.
|
Rs. In Millions |
||||
|
|
Quarter ended |
% Change |
||
|
|
30.06.11 |
30.06.10 |
||
|
Net revenue |
10440.000 |
9640.000 |
8 |
|
|
PBIDT |
4540.000 |
3610.000 |
26 |
|
|
Net profit |
3140.000 |
2240.000 |
40 |
|
VSF and Chemical Capex
The VSF expansion projects at Vilayat,
Cement Capex
A total capex of Rs.110000.000 Millions has been slated for the cement business with Rs.51500.000 Millions on expansion projects and Rs.58500.000 Millions towards instituting bulk packaging terminals, setting up of ready-mix concrete plants, captive thermal power plant, modernisation etc.
At the Chhattisgarh and Karnataka brownfield expansions aggregating 9.2 million TPA, civil work has begun. Both these projects are expected to be operational by Q1FY14.
Outlook
The environment in both the businesses has become very
challenging. In VSF, the pressure is caused by correction in cotton prices and
market conditions in
Grasim hopes that while the present scenario will improve gradually, the
Company will be able to face the present challenges through its backward
integration and cost leadership in VSF business and brand image, distribution
network and operating efficiency in Cement business. Both VSF and cement will
benefit from rising consumption as well as investment in
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.51.55 |
|
|
1 |
Rs.81.95 |
|
Euro |
1 |
Rs.67.57 |
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.