MIRA
INFORM REPORT
|
Report Date : |
04.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
HSIL LIMITED (w.e.f. 27.04.2009) |
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Formerly Known
As : |
HINDUSTAN SANITARYWARE INDUSTRIES LIMITED |
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Registered Office : |
2, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
08.02.1960 |
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Capital
Investment / Paid-up Capital : |
Rs. 132.097 Millions |
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Com. Reg. No.: |
21-024539 |
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CIN No.: [Company
Identification No.] |
L51433WB1960PLC024539 |
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IEC No.: |
0588080632 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00554B RTKH01805G |
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PAN No.: [Permanent
Account No.] |
AAACH7564H |
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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 : |
Manufacturing, Export and Trader of
Sanitaryware and Fittings, Plaster of Paris, Refractories etc. |
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No. of Employees
: |
7000 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 28000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established
company with good track. There has been a good increase in the turnover and
profits of the company. Trade relations are reported as fair. Business is
active. Payments are regular and as per commitments. The company can
be considered good for normal business dealings under 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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. V K Ajmera |
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Designation : |
Sr. General Manager (Corporate Finance) |
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Contact No.: |
91-9811323233 |
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Date : |
15.12.2011 |
LOCATIONS
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Registered Office : |
2, |
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Tel. No.: |
91-33-22487406/ 22487407 |
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Fax No.: |
91-33-22487045/ 22482367 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Head Office : |
11/B/8, Tewari
House, 2nd Floor, |
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Tel No.: |
91-11-65960160/ 61/
62/ 63/ 64/ 25854656/ 25785278 |
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Fax No.: |
91-11-25785278 |
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Email : |
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Corporate Office : |
Unit No. 301-302, III Floor, Park Centra, Sector 30,
N.H-8, Gurgaon – 122001, |
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Tel No.: |
91-124-4779200 / 91-124-4292898 |
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Fax No.: |
91-124-4292899 |
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Email : |
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Building Product
Division 1: |
Bahadurgarh |
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Tel No.: |
91-1276-230485/
87- 232226-8 |
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Fax No.: |
91-1276-230138 |
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Building
Product Division 2: |
Bibinagar Somanypuram
Brahmanapally, Bibinagar District Nalgonda – 508126, |
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Glass Division I : |
Glass Factory Road, Off Motinagar, P.B No. 1930, Sanathnagar P.O.,
Hyderabad– 500 018, Andhra Pradesh, India |
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Tel No.: |
91-40-23831771 |
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Fax No.: |
91-40-23831787 |
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Glass Division II: |
Bibinagar Trading Division: Survey No.17,
Beside Aruna Teja Castings, Bibinagar, District Na Nalgonda – 508126, |
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Trading Division I: |
Bahadurgarh Trading Division: |
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Trading Division
II: |
Tikri Trading Division: P O Tikri Kalan, |
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Faucet Plant: |
G 470-471, Phase I, RIICO Industrial Area, Bhiwadi - 131019, |
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Evoke Stores: |
Located at: ·
· Haryana · Uttar Pradesh |
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Regional Offices: |
Located at: ·
· Chennai · Ernakulam · Mumbai · Pune · Secunderabad |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. R. K. Somany |
|
Designation : |
Chairman and Managing Director |
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Qualification : |
B. Com, FI (Cem), FBIM ( |
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Date of Appointment : |
09.01.1988 |
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Name : |
Mr. Sandip Somany |
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Designation : |
Joint Managing Director |
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Qualification : |
B. Com, Diploma in Ceramics |
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Date of Appointment : |
11.11.1994 |
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Name : |
Mr. Ashok Jaipuria |
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Designation : |
Director |
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Qualification : |
Degree Holder in Associate of Arts in Business Administration |
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Date of Appointment : |
15.05.2004 |
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Name : |
Mr. Binay Kumar |
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Designation : |
Director |
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Qualification : |
BSC |
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Date of Appointment : |
21.09.1996 |
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Name : |
Mr. N. G. Khaitan |
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Designation : |
Director |
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Qualification : |
B. Com, LLB, Bar at Law From Kolkata High Court |
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Date of Appointment : |
29.06.1996 |
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Name : |
Mr. S B Budhiraja |
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Designation : |
Director |
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Qualification : |
BSC (Hons), BE Mechanical, FIMC |
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Date of Appointment : |
30.10.2003 |
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Name : |
Mr. Vishal Marwaha |
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Designation : |
Director |
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Qualification : |
Chartered Accountant |
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Date of Appointment : |
14.07.2005 |
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Name : |
Mr. V K Bhandari |
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Designation : |
Director |
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Name : |
Mr. G L Sultania |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G. L.
Sultania |
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Designation : |
Executive Director and Secretary
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Qualification : |
Chartered Accountant and Secretary |
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Name : |
Ms. Ruchika Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On (30.09.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
5747719 |
8.70 |
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|
28192010 |
42.69 |
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|
33939729 |
51.39 |
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Total shareholding of Promoter and Promoter Group (A) |
33939729 |
51.39 |
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(B) Public Shareholding |
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|
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|
1459915 |
2.21 |
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|
17531 |
0.03 |
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|
500 |
0.00 |
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|
14713888 |
22.28 |
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|
16191834 |
24.52 |
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|
2053737 |
3.11 |
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|
6507189 |
9.85 |
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|
526360 |
0.80 |
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|
6827546 |
10.34 |
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143929 |
0.22 |
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|
5812600 |
8.80 |
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|
1877 |
-- |
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Clearing Members |
869140 |
1.32 |
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|
15914832 |
24.10 |
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Total Public shareholding (B) |
32106666 |
48.61 |
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Total (A)+(B) |
66046395 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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|
-- |
-- |
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|
-- |
-- |
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|
66046395 |
100.00 |
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Total (A)+(B)+(C) |
66,046,395 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing, Export and Trader of
Sanitaryware and Fittings, Plaster of Paris, Refractories etc. |
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Products : |
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Brand Names : |
Sanitaryware: Hindware, Hindware Art, Hiondware Italian Collection,
Keramag Container Glass: AGI |
GENERAL INFORMATION
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No. of Employees : |
7000 (approximately) |
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Bankers : |
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Facilities : |
Notes:
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Banking
Relations : |
Good |
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Statutory Auditors : |
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Name : |
Walker Chandiok
and Company Chartered
Accountant |
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Address : |
L-41, Connaught Circus, |
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Tel No.: |
91-11-23417716 |
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Fax No.: |
91-11-23418512 |
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Internal Auditors : |
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Name : |
BDO Consulting Private Limited Chartered Accountant |
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Subsidiaries : |
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Entities Where significant influence is exercised by key management
personnel and/or their relatives having transactions with the company : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
100000000 |
Equity Shares |
Rs. 2 /- each |
Rs. 200.000 Millions |
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66050220 |
Equity Shares |
Rs.2 /- each |
Rs.132.100
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66046395 |
Equity Shares |
Rs.2 /- each |
Rs.132.093
Millions |
|
Add: |
Forfeited shares |
|
Rs. 0.004
Millions |
|
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Total |
|
Rs. 132.097 Millions |
Notes:
*Of the above shares, 24,268,638 equity shares of Rs. 2 each (previous year
24,268,638 equity shares of Rs. 2 each) were allotted as fully paid-up by way
of bonus shares by capitalisation of revenue reserves, 67,500 equity shares of
Rs. 10 each fully paid-up (now stands split into 337,500 equity shares of Rs. 2
each, previous year 337,500 equity shares of Rs. 2 each ) were issued to the
equity shareholders of the erstwhile The Associated Glass Industries Limited
pursuant to the scheme of amalgamation and 365,645 equity shares of Rs. 10 each
fully paid up (now stands split into 1,828,225 equity shares of Rs. 2 each,
previous year 1,828,225 shares of Rs. 2 each fully paid up) were issued to the
equity shareholders of the erstwhile Krishna Ceramics Limited pursuant to the
scheme of amalgamation.
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 |
132.097 |
110.055 |
110.055 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6879.551 |
4767.514 |
2395.260 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
7011.648 |
4877.569 |
2505.315 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3371.937 |
3102.664 |
4315.054 |
|
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2] Unsecured Loans |
564.679 |
1788.911 |
375.482 |
|
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TOTAL BORROWING |
3936.616 |
4891.575 |
4690.536 |
|
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DEFERRED TAX LIABILITIES |
731.184 |
541.185 |
423.094 |
|
|
|
|
|
|
|
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TOTAL |
11679.448 |
10310.329 |
7618.945 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7798.511 |
7457.943 |
4032.358 |
|
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Capital work-in-progress |
562.124 |
77.926 |
1251.510 |
|
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|
|
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INVESTMENT |
1003.823 |
554.070 |
427.526 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2069.896
|
1565.867
|
1469.964
|
|
|
Sundry Debtors |
1614.808
|
1397.372
|
1027.730
|
|
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Cash & Bank Balances |
253.843
|
162.112
|
792.719
|
|
|
Other Current Assets |
4.105
|
4.499
|
8.323
|
|
|
Loans & Advances |
523.442
|
722.412
|
403.082
|
|
Total
Current Assets |
4466.094
|
3852.262
|
3701.818 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1237.289
|
979.487
|
962.622
|
|
|
Other Current Liabilities |
668.564
|
479.425
|
678.329
|
|
|
Provisions |
245.251
|
172.960
|
153.316
|
|
Total
Current Liabilities |
2151.104
|
1631.872
|
1794.267 |
|
|
Net Current Assets |
2314.990
|
2220.390
|
1907.551 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11679.448 |
10310.329 |
7618.945 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
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Income from Operations |
10353.274 |
7887.351 |
6106.435 |
|
|
|
Other Income |
204.909 |
139.171 |
91.453 |
|
|
|
TOTAL (A) |
10558.183 |
8026.522 |
6197.888 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Goods purchased for resale |
1585.594 |
1079.868 |
954.184 |
|
|
|
Personal Cost |
1150.878 |
823.930 |
641.506 |
|
|
|
Manufacturing, Selling and General Expenses |
5940.119 |
4761.896 |
3516.758 |
|
|
|
Increase/ Decrease in Stock |
[284.350] |
[187.181] |
[42.444] |
|
|
|
Loss of Foreign exchange fluctuations |
0.000 |
0.000 |
115.326 |
|
|
|
TOTAL (B) |
8392.241 |
6478.513 |
5185.330 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2165.942 |
1548.009 |
1012.558 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
356.327 |
400.867 |
166.364 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1809.615 |
1147.142 |
846.194 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
534.981 |
490.381 |
278.427 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1274.634 |
656.761 |
567.767 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
372.212 |
132.490 |
166.247 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
875.422 |
524.271 |
401.520 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1500.270 |
1164.753 |
916.236 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
60.000 |
50.000 |
|
|
|
Proposed Dividend on Equity Shares |
165.116 |
110.051 |
88.041 |
|
|
|
Tax on Proposed dividend |
26.786 |
18.703 |
14.962 |
|
|
BALANCE CARRIED
TO THE B/S |
2081.888 |
1500.270 |
1164.753 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
240.864 |
197.549 |
268.659 |
|
|
TOTAL EARNINGS |
240.864 |
197.549 |
268.659 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
575.090 |
466.861 |
307.883 |
|
|
|
Stores & Spares |
144.909 |
82.209 |
27.895 |
|
|
|
Capital Goods |
79.946 |
143.205 |
8.445 |
|
|
|
Others |
510.716 |
344.153 |
306.146 |
|
|
TOTAL IMPORTS |
1310.661 |
1036.428 |
650.369 |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
14.47 |
9.53 |
7.30 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.29
|
6.53
|
6.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.31
|
8.33
|
7.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.39
|
5.81
|
7.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.13
|
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.86
|
1.34
|
2.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.07
|
2.36
|
2.06 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject is the largest Indian sanitaryware manufacturer. The company is
engaged in the manufacture and distribution of sanitary ware and glass
containers primarily in
STRATEGIC
Acquired UK based barwood products, a boutique bathroom products manufacturer Acquired a china clay mine in Andhra Pradesh to secure raw material supply completed Qip of Rs. 1500.000 millions to fund expansion and acquisitions in India and abroad Acquired the cp bathroom fittings business of Havells India Limited.
OPERATIONS
Underwent a debottlenecking exercise at the sanathnagar glass facility, resulting in capacity expansion (50 tpd) Achieved enhanced capacity utilization and improved efficiencies at all manufacturing plants improved production efficiencies at the container glass unit from 80% to 88% Achieved 6-20% weight reduction in 13 bottles through the introduction of narrow neck press and blow technology
MARKETING AND
DISTRIBUTION
Launched the cornice collection, an elegant collection of sanitaryware, tiles and faucets, as a part of the 50th year celebration rebranded the crabtree brand of chrome plated bathroom fittings as benelave Launched 1.5 litres flushing closet – nano, probably the most efficient closet in the world in the non-vacuum assisted category
Launched ceramic tiles as part of the hindware italian collection brand strengthened dealership network with addition of 150 dealers and over 2000 retailers Launched 66 new products in the container glass division and added 30 new customers
ANALYSIS OF PERFORMANCE
Following a moderate slowdown, the Indian economy bounced back in 2009
-10. The Government’s fiscal stimulus accelerated the economic recovery and put
to rest concerns related to economic stability. In this backdrop, HSIL
continued with its robust performance, reporting a significant rise across all
operating and performance parameters. In 2009-10, HSIL achieved a 26.70%
increase in gross revenue, 37.25% increase in EBITDA, 48.64% increase in cash
profit and 30.57% increase in the post-tax profit. The operating margins and
net profit margins strengthened to 19.63% and 6.65%, respectively.
The following reasons were the major contributors to this commendable
performance:
·
Application of differentiated strategy in
positioning the Company’s products
·
Continuous modification in the product offering,
based on the consumer preference and demand
·
Increased focus on the value-added product segment
·
Rationalization of energy consumption and other
major operational costs
·
Undertaking process innovation for better capacity
utilization
·
Enhanced production in the Container Glass Division
with fully operational activities in the new glass unit at Bhongir
The Company continued to focus on ensuring a strong balance sheet
together with a consistently growing Profit and Loss account. The debt equity
was maintained at a comfortable 1.25 with a strong interest cover of 3.86. The
reserves (excluding Business Reconstruction Reserve) stood at Rs 3790.700
Millions and the total net worth of the Company increased to Rs. 3900.800
Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
HSIL’s core purpose for doing business revolves around one overarching
objective: to strive passionately to enrich the quality of life of customers
across a wide social spectrum, transcending the barriers of time and space.
Over more than five decades, it has been continually investing its energies and
resources to fulfill the customer-centric agenda. Admittedly, ‘customer’ is a
generic expression; it encompasses hundreds of thousands of people with multiple
aspirations and innate desires. Remarkably, these aspirations continually
evolve for products and services in line with global standards and perceptions
and technological breakthroughs. Consequently, before we deliver, we try to
anticipate those unstated and unmet customer desires and needs, based on
socio-economic backgrounds, go back to our drawing board and start thinking.
From sanitaryware to wellness, from faucets to kitchen appliances,
anticipation is the mother of all
innovation and delivery at HSIL. Anticipation involves trying to understand the little nuances of the
customer’s life and being able to deliver on time. besides, the element of
speed is important to leverage a particular opportunity. Once the strategy is
finalised, we focus on accelerated
delivery. HSIL stands for better value
across all price points. the result is enhanced visibility across a wide
customer cross section. On the other hand, we enhance our offerings to each new customers and to access new markets.
while HSIL predominantly caters to the Indian market, both the building
products Division and the Container glass Division have extended their presence
internationally, following the model of anticipation and delivery. India’s
economic miracle and rapid urbanisation are driving opportunities in the
sanitaryware, wellness, bathroom accessories, faucets and kitchen appliances
segments. we believe, the opportunity is enormous and unprecedented: around 590
million people will live in India’s urban areas in 2030, nearly twice the population
of the uS today; 91 million urban households will elevate to the level of
middle class, up from 22 million today*; furthermore, the per capita income of
average Indian households have increased from USD 300 to USD 1,700 in the last
two decades, since the commencement of economic liberalisation**. these facts
help us anticipate the contours of future markets and the demands of emerging
customers, so that we can deliver with speed.
*Source: Mckinsey global Institute, India’s urban awakening: building
inclusive cities, sustaining economic
growth
**Source: economic times
Building Products Division
The Building Products division the focus of HSIL’s building products
division extends beyond sanitaryware to include wellness products, faucets,
kitchen appliances and ceramic tiles. with increasing urbanization and enhanced
consumer awareness on aesthetics and hygiene, all our products in this division
will enjoy greater recall. Consider this: a un study suggests far more people
in India have access to a mobile phone than to a toilet. It is projected that
15 mn new homes would be constructed in India by 2013. besides, government
impetus to improve sanitation, along with investments towards construction of
more homes represents the primary growth drivers for HSIL’s building products
Division.
HSIL is suitably equipped to leverage this opportunity on the strength
of superior quality, advanced technologies and innovative designs. In pursuance
of our philosophy of anticipating and delivering, we foresee market scenarios
and trends and try to create rejuvenating experience for the customer. In other
words, we create the pride of ownership.
Building Products operational review Successful acquisition of UK based
barwood products Launch of the Cornice Collection of sanitaryware and Faucets
Rebranding of the Crabtree brand of chrome plated bathroom fittings as benelave
Introduced ceramic tiles as part of the Hindware Italian Collection brand 100%
capacity utilization and improved efficiencies at bhiwadi, bahadurgarh and
bibinagar to secure raw material supply, acquired a China Clay mine in Andhra
Pradesh
Financial review building products gross revenues grew 36% from Rs.
3879.000 millions to Rs. 5268.100 millions 10% rise in average realizations of
products47% growth in EBLT from Rs. 722.300 millions to Rs. 1061.500 Millions
PERFORMANCE
ANALYSIS
Revenues for the year 2010-11 crossed the Rs. 10.000 millions milestone.
Net Profits surged by 67% to reach Rs. 873.500 millions, strengthening the growth
momentum throughout the organization. The Company has in place increased
capacity, improved manufacturing efficiency and an expanding sales network to
drive accelerated growth. Effective cost control has resulted in improved
margins.
Financial highlights of 2010-11 include the annual revenue increase by
33% nearing Rs.11300.000 millions, EBITDA growth of 40% crossing Rs. 2160.000 millions, EBIT Margin improved by
234 basis points to 15.75%, Cash Profit growth of 41% to Rs. 1598.500 millions
which is indicative of the Company’s financial strength and an EPS jump of 52%
touching Rs. 14.47 per share
The Container Glass Division experienced gross revenue growth of 31% to
stand at Rs.6008.900 millions and the Building Products Division experienced a
gross revenue growth of 36% to stand at Rs. 5268.100 millions.
The Company continued to focus on ensuring a strong balance sheet
together with a consistent growing profitability. The debt equity was
maintained at 0.65 in 2010-11 as against 1.25 in 2009-10, an interest cover of
6.08 in 2010-11 as against 3.86 in 2009-10. The total net worth of the Company
increased to Rs. 6034.900 millions in 2010-11 as against Rs. 3900.800 millions
in 2009-10.
The profits were a result of increased capacity, acquisitions, improvement
in manufacturing efficiency, extension of sales network and control of costs.
Both business divisions contributed strongly to HSIL’S commendable performance
for the year. ongoing business expansion and business improvement initiatives
have demonstrated favorable outcomes. Focused approach towards customers
through deeper penetration in the market, new product introductions and market
promotions have had an overarching benefit for business dynamics. our
consistent and dedicated focus on premium products across all product
categories in the Building Products Division continues to depict favorable
results.
The following strategies were the major contributors to this
COMMENDABLE
PERFORMANCE:
Differential positioning of the Company’s products Continuous
developments in the product offering, based on the consumer preference and
demand Increased focus on the value-added product segments of faucets, kitchen
appliances and tiles Cost control measures undertaken Enhanced distribution
network strength Continuous process innovation for better capacity Utilization
BUSINESS DIVISION
REVIEW
Performance of the Building Products Division in 2010-11 The divisional
gross revenues grew 36%, mainly on account of higher share of premium products segment and increased
volume. major initiatives Strengthened distribution channel to deepen
market reach
Rebranding the hindware logo Launched new products and brands Acquired
Barwood Products, UK organized numerous architects and plumbers meets Enhanced
production efficiencies through in-process Innovation
PERFORMANCE OF THE
CONTAINER GLASS DIVISION IN 2010-11
The divisional gross revenues increased 31%, on account of increased
production volume and better product mix
at the production units. major initiatives The container glass green
field facility at Bhongir continued successful operations
The debottlenecking exercise at the Sanathnagar facility led to capacity
expansion of 50 TPD Strengthened quality checks Secured and strengthened raw
material supplier base optimized fuel consumption
AWARDS AND
RECOGNITION
HSIL awarded The BIZZ Award in 2011 for being an Inspirational Company.
The BIZZ award is given by world Confederation of Businesses, houston, Texas
HSIL awarded The BIZZ Award in 2011 – The Peak of Success Award for its
excellence in Business Model by world Confederation of Businesses, houston,
Texas
HSIL receives Business Superbrand 2010-11; HSIL has been selected as a
Business Super brand three times over HSIL honoured with Golden Peacock
Innovation Award 2011 HSIL has been rated the fastest growing building
products company in the Sanitaryware and
tiles category by Construction world
Magazine, 4 times Brand hindware honoured with Power Brand 2010-11 (India’s Most Powerful Brands chosen by
consumer) by IIPM Brand hindware
honoured with Star Brand 2011 from
IIPM
Readers Digest Trusted Brands - Gold Award 2011 awarded to hindware in Sanitaryware
category hindware has been chosen
amongst ‘The 100 Most valuable Brands in
India’ by the 4P‘s journal (also the only
bathroom brand in this selection) Confederation of Indian Industry Green
Building Council (CII GBC) 7th National
Award for ‘The Most Innovative water
Saving Products’ for 2010 hindware’s Nano EWC has been conferred the Elle
Deco International Design Awards (EDIDA)
in 2010 hindware has been honoured consistently with Consumer Super brand Award by Super brands Limited,
U.K. League of American Communication Professionals (LACP), USA Awards for Best Annual Report 2009/10-
won Platinum Award in 2 categories viz.
Best Report Financials and Best Report
in Consumer Durable Category. overall
Ranking 4th, worldwide out of 4400 entries other awards and recognitions achieved by us:
2010 IMM Award for Excellence as Eminent organization Golden Peacock National
quality Award 2010 BIZZ Awards 2010 for being Inspirational Company Capexil
Award 2009 IES Excellence Award 2009
Golden Peacock Environment Management Award 2009 Elle Deco International
Design Award (EDIDA) in 2008 for Poncho
Kids Series
FIXED ASSETS:
· Land Freehold
·
· Building
· Leasehold Improvements
· Plant and Machinery
· Office Equipments
· Vehicles
· Computers
· Furniture and Fixtures
As per Website
Details:
Profile
Subject has made a humble beginning in 1936, when the
Somany's were stockbrokers in
Today, the Somany Group has a diversified range of products encompassing glass containers, sanitaryware, bathroom fittings,
OVERVIEW
Subject is the flagship company of the Somany Group.
Subject was incorporated as Hindustan Twyfords Limited in
1960 by the Somany Group in collaboration with Twyfords, Limited,
Over the last four decades, Subject has earned respect in the Indian and international markets with its commitment to innovation, unwavering quality and customer satisfaction.
Subject has three strategic businesses - Building Products Division and Container Glass Division (AGI Glasspac).
Some Interesting Facts
Building Products Division
- "Hindware" brand has been recognized as a Super brand consecutively for the last four years.
- More than 40 Million plus satisfied customers, over the world.
- Commands more than 1/3 of the Indian Sanitaryware market share.
- A diversified product basket comprising a range of Sanitaryware, bathroom fittings, bathtubs and whirlpools, and kitchen appliances.
- Recognized amongst the top 300 companies in the country and is also rated amongst the 100 best small and medium sized companies in the world by Forbes Magazine.
- Hindware manufactures ten sanitary ware pieces every two minutes; 310 every hour and 2.7 million each year.
- Possesses
the largest distribution network in
- Institutional customers in the Building Products Division: DLF, Unitech LandT, Raheja's and many more.
Container Glass Division
- AGI Glasspac has a capacity to produce 953 million bottles per annum and the capability to manufacture 400 different products in three colours.
- AGI
Glasspac is the second largest manufacturer of Glass Containers in
- Institutional customers in the Container Glass Division are Coca Cola, Pepsi, GlaxoSmithkline, Pfizer, AstraZenca, Ranbaxy, Hindustan Unilever, Priya, Reckitt Benkinser, Seagram, Sab Miller, McDowell, Shaw Wallace and United Breweries among others.
Retail Division (EVOK)
- Made a foray through its subsidiary into retail by launching Home Interior Fashion Mega stores providing speciality home interior solutions with the 'EVOK' brand
Subject, is the first company in the Building Materials Industry to be awarded the prestigious ISO 9001, 14001 and OHSAS 18001 certificate, awarding effective quality management and environment systems.
Subject has its corporate office at Park Centra Gurgaon,
supported by 8 regional offices and area offices in all states. HINDWARE
Sanitaryware is manufactured at - Bahadurgarh, Haryana (near
INTERNATIONAL COLLABORATION
KERAMAG the number one selling brand from
TEUCO
For more than three decades, Teuco has been evolving,
innovating and researching the best ways to harness the energy of water for the
benefit of people and their well-being. The story characterised by a strong
desire to break new ground, by adoption of the best contemporary design
solutions for every bathroom interior, and by investment in the most
sophisticated technology. A story that has revolutionised the very concept of
looking after oneself. One philosophy, and one only, inspires the day-to-day
activity of Teuco: the culture of well-being, reflecting the high quality of
products and services enjoyed by everyone who chooses to discover the world of
Teuco.
PRESS
RELEASES:
New Delhi, 11.03.2011: HSIL Limited,
the group behind
Hindware’s gorgeous collection of the 3D Travertino tiles offers exceptional
features that enhance the appeal and give the desired look to floors and walls.
A key element of these unique 3D tiles collection is that it offers ‘Infinity
Design’ - unlimited image variations that give a more natural aspect to the
covering. The 3D image printed on the ceramic tiles follows the entire surface,
with high and low relief embossing that adds more depth and character to tile
designs.
The 3D Travertino tiles exude sophistication in design and with the added advantage of 3D imagery, these tiles are a visual delight and an ideal choice for walls and floors. Available in the unique size of 45 x 90 cms, the 3D Travertino tiles come in 3 varieties- Travertino HD, Travertino HD Ludo and Luna.
Mr. Sandip Somany, Joint Managing Director, HSIL Limited said, “Hindware
is one of the most prestigious and trusted brands in the sanitaryware segment
across millions of Indian households. Having recently forayed into the tiles
segment, it gives me immense pleasure to announce the addition of new 3D
Travertino tiles from Hindware’s Italian Collection. We as a company, are
committed to provide our customers with the best of designs, quality,
innovations and price. The new 3D tiles collection is bound to lend the desired
contemporary feel to living spaces of our customers. These tiles are carefully
sourced from different centers across the globe use advanced technology and
processes to produce the final premium product. We hope to keep rolling out
more such innovative products from our tiles division and delighting our
customers time and again.”
Making it one of the most trusted names amongst millions of households across
India, some of the long list of Hindware’s recognitions include: ‘The Largest
Ceramic and Sanitaryware Company’ at Construction World Annual Awards 2010,
‘India´s 100 Most Valuable Brands’ by 4Ps magazine and ICMR, CII- Godrej GBC
award for ’The Most Innovative Water Saving Products’ 2010, Elle DECO
International Design Award 2010, ‘Business Superbrand 2010’, ‘Power Brands of
India’ award 2010, ‘Golden Peacock Innovation Award 2011’ and many more.
About HSIL Limited
HSIL Limited is the largest Indian manufacturer of sanitary
ware products, with a dominant market share of over 42% in the industry. HSIL’s
portfolio of products includes Building products & Container Glass in
addition to the international brands such as TEUCO and Keramag, all of which
enjoy great popularity with consumers. HSIL Limited products are available
across the length and breadth of the country and are supported by over 1400
direct dealers and 12000 sub dealers HSIL Limited was the first Company 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. 53.22 |
|
|
1 |
Rs. 82.86 |
|
Euro |
1 |
Rs. 69.12 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
69 |
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.