MIRA
INFORM REPORT
|
Report Date : |
13.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN UNILEVER LIMITED |
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Registered Office : |
Hindustan Lever
House, 165/166, Backbay Reclamation, Mumbai – 400 020, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
17.10.1933 |
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Com. Reg. No.: |
11-002030 |
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Capital
Investment / Paid-up Capital : |
Rs.2159.500 Millions |
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CIN No.: [Company
Identification No.] |
L15140MH1933PLC002030 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH05398B /
PNEH04468C |
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PAN No.: [Permanent
Account No.] |
AAACH1004N |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed in the Stock Exchanges. |
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Line of Business : |
manufacturing and marketing of Consumer Products. |
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No. of Employees : |
15000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 110000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Hindustan
Unilever is a well established, professionally managed and a reputed company
having good track. It is the country’s largest consumer products company. The
company’s products are well received in and outside Financial
position of the company appears to be strong and healthy. Payments are always
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) |
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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 |
LOCATIONS
|
Registered Office : |
Hindustan Lever
House, 165/166, Backbay Reclamation, Mumbai – 400 020, |
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Tel. No.: |
91-22-39830000 /
22819949 / 22886373 / 22843987 / 22835911 / 22827219 / 217 / 218 / 222 / 221
/ 210 / 205 / 211 / 214 / 215 / 212 / 209 / 208 / 250 / 216 / 206 / 207 /
22858400 / 22824641 / 22843856 / 22827467 /478 |
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Fax No.: |
91-22-22041920 /
22043117 / 22871970 / 22846958/28249438 |
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E-Mail : |
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Website : |
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Plants : |
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NORTHERN REGION |
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Location |
Address |
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BAROTIWALA |
Khasra No. 94-96, 355-409, Village Balyana, Barotiwala IA, Tehsil
Kasauli, District Solan - 174 103, Himachal Pradesh, India |
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KHALILABAD |
Plot No. D34-D38, Road No. 4, UPSIDC Industrial Area, District Sant
Kabir Nagar, Khalidabad - 271 175, |
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ETAH – BEVERAGES |
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ETAH – INSTANT TEA EXPORTS |
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HARIDWAR |
Plot No. 1, Sector 1A, Integrated Industrial Estate, Ranipur, Haridwar
- 249 403, Uttaranchal |
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NALAGARH |
Hudbust No. 143,
Khasra No. 182, 183, 187/1, Village - Kiralpur, Tehsil - Nalagarh, District Solan - 174101, Khasra No. 1350 – 1318, Bhatoli Kalan, Hill Top Industrial Area,
Jharmajri, Tehsil Nalagarh, District Solan - 173295, Himachal Pradesh, India |
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ORAI |
A-1, Industrial Area, UPSIDC, Orai, Jalaun - 285 001, |
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RAJPURA |
A-5, Phase ll-B, Focal Point, Rajpura - 140 401, |
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SUMERPUR |
A-1, UPSIDC Industrial Area, Bharua, Sumerpur, Hamirpur - 210 502, |
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SOUTHERN REGION |
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Tatapuram PO, |
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DHARWAD |
Plot No.125/126, KIADB Industrial Area,Dharwad, Belur - 580 011,
Dharwad, |
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HOSUR |
Plot No.50 & 51, SIPCOT Industrial Complex, Hosur - 635 109, |
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MANGALORE |
Sultan |
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Plot No. 424, Hebbal Industrial Area, |
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Off NH 45-A, Vadamangalam, No. 3, |
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EASTERN REGION |
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TINSUKIA |
Dag No. 21 of
122 FS Grants, Mouza - Tingrai, Off NH No. 37, Doom Dooma Industrial Estate, Tinsukia - 786 151, |
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HALDIA |
PO Durgachak, Haldia - 721 602,Midnapore, West |
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KOLKATA |
1, 63, Garden Reach, Kolkata - 700 024, West |
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WESTERN REGION |
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KHAMGAON |
C-9, MIDC, Khamgaon - 444 303, District Buldhana, |
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CHHINDWARA |
5/6 KM Stone, |
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CHIPLUN |
Plot No. B-7, Lote Parshuram MIDC, Khed Taluka, District Ratnagiri,
Chiplun – 415 722, |
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Plot Nos. 132-139, Kundaim Industrial Estate, Kundaim, Goa – 403 115, |
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KALWA |
Plot No.7 & 7A, MIDC Industrial Area, Thane - |
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KANDLA |
Shed Nos. 177 & 178, Sector - 1, Plot Nos. 253-257, Sector IV
Kandla Special Economic Zone, Gandhidham - 370 230, Gujarat, India |
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MUMBAI |
Aarey Milk Colony, Goregaon, Mumbai – 400 065, |
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Plot No. A 8/9, MIDC, |
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PUNE |
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SILVASSA |
Survey No.151/1/1, Village Dapada, Survey No.907, Orient Press Complex, Survey No. 297/1/2, Dungrapada, Village Saily,
Silvassa - 396 230, Survey No. 46/11, Plot No 16, Naroli Road, Village Athal, Silvassa -
396 230 |
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CHORWAD |
Plot no 130/1, Holiday Home road, Chorwad, Dist Junagarh– 362250, |
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Overseas
Customer Service Centers : |
·
300, Tel. No. 01 878 5254 Fax No. 01 879 1839 Telex : 918112 ·
303, Tel. No. 212 725 0679 Fax No. 212 725 0718 Telex : 220715 ·
Tel. No. 03 583 1225 Fax No. 03 505 0541 Telex : 2423450 |
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Major
Operating Units At: |
·
Sewree,
Mumbai, ·
Andheri,
Mumbai, ·
Taloja,
·
Garden
Reach, Kolkata, West ·
Shamnagar,
West ·
·
Haldia,
·
Plot
No. 254, Sector IV, Special Economic Zone, Kandla, ·
Chindwara,
·
Pondichery,
Tamil ·
Yavatmal,
·
Pune,
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Branch Office
: |
123, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Harish Manwani |
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Designation : |
Chairman |
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Name : |
Mr. Nitin Paranjpe |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Pradeep Banerjee |
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Designation : |
Executive Director |
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Name : |
Mr. D S Parekh |
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Designation : |
Independent Director |
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Name : |
Mr. Sridhar Ramamurthy |
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Designation : |
Executive Director, Finance and IT and Chief Financial Officer |
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Name : |
Mr. A Narayan |
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Designation : |
Independent Director |
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Name : |
Mr. S Ramadorai |
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Designation : |
Independent Director |
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Name : |
Mr. R A Mashelkar |
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Designation : |
Independent Director |
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Name : |
Mr. Gopal Vittal |
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Designation : |
Executive Director, Home and Personal Care |
KEY EXECUTIVES
|
MANAGEMENT COMMITTEE |
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Name : |
Mr. Dev Bajpai |
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Designation : |
Executive Director and Company Secretary |
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Name : |
Mr. Hemant Bakshi |
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Designation : |
Executive Director Sales and Customer Development |
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Name : |
Ms. Leena Nair |
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Designation : |
Executive Director and Human Resources |
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Name : |
Mr. Shrijeet Mishra |
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Designation : |
Executive Director and Foods |
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Name : |
Mr. Nitin Paranjpe |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Sridhar Ramamurthy |
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Designation : |
Executive Director, Finance and IT and Chief Financial Officer |
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Name : |
Mr. Gopal Vittal |
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Designation : |
Executive Director, Home and Personal Care |
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Name : |
Mr. Pradeep Banerjee |
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Designation : |
Executive Director, Supply Chain |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Category
of Shareholder |
Total
No. of Shares |
% of
total No. of Shares |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
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|
|
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|
1134849460 |
52.52 |
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|
1134849460 |
52.52 |
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Total
shareholding of Promoter and Promoter Group (A) |
1134849460 |
52.52 |
|
(B)
Public Shareholding |
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|
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|
66988000 |
3.10 |
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|
4687753 |
0.22 |
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|
20 |
-- |
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|
189878868 |
8.79 |
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|
381954636 |
17.68 |
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|
643509277 |
29.78 |
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|
59875644 |
2.77 |
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|
306528443 |
14.18 |
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|
6525953 |
0.30 |
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|
9670940 |
0.45 |
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|
234905 |
0.01 |
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|
768049 |
0.04 |
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|
7122553 |
0.33 |
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|
3600 |
-- |
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|
29013 |
-- |
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|
1497393 |
0.07 |
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Foreign
Banks |
15427 |
-- |
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|
382600980 |
17.71 |
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Total
Public shareholding (B) |
1026110257 |
47.48 |
|
Total
(A)+(B) |
2160959717 |
100.00 |
|
(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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|
-- |
-- |
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Total
(A)+(B)+(C) |
2160959717 |
-- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
manufacturing and marketing of Consumer Products. |
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Product : |
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PRODUCTION STATUS
(As on 31.03.2011)
|
Particulars |
Units |
Licensed
Capacity |
Installed
Capacity |
|
Soaps |
Tonnes |
397138 |
182917 |
|
Synthetic Detergents |
Tonnes |
1209172 |
292680 |
|
Personal Products |
Tonnes |
332190 |
128524 |
|
Glycerine |
Tonnes |
15286 |
6667 |
|
Fabric Softener |
Tonnes |
2833 |
-- |
|
Fatty Acids |
Tonnes |
96833 |
65000 |
|
Perfumery and Cosmetic products (units) * |
Tonnes |
299000000 |
55000000 |
|
Perfumery and cosmetic products * |
Tonnes |
3022 |
-- |
|
Packet Tea below 1 kg. and tea bags |
Tonnes |
5000 |
-- |
|
Instant Tea / Coffee |
Tonnes |
9833 |
4553 |
|
Frozen Surimi, Fresh and Frozen fish,
Mollusees etc.* |
Tonnes |
16500 |
16500 |
|
Ice-cream/Frozen desserts (Million Litres)
* (g) |
Tonnes |
61 |
20 |
|
Packed Tea* |
Tonnes |
NA |
137747 |
|
Packed Coffee * |
Tonnes |
NA |
22060 |
|
Scourers |
Tonnes |
NA |
43569 |
|
Surface Cleaners (Litres) * |
Tonnes |
NA |
10000000 |
|
Water Batteries (Million Units) |
Tonnes |
17 |
4 |
|
Processed Foods |
Tonnes |
7269 |
2417 |
|
Canned and Processed Fruits and Vegetables |
Tonnes |
42969 |
16471 |
NOTE
a) NA, - Signifies the Non Scheduled
activities for which Industrial License IEMs are not required.
b) Licensed capacities include registered
capacities of industrial activities existing prior to the Industries (Development
and Regulation) Act, 1951 arid capacities as shown in the Industrial
Entrepreneurs Memorandum ((EM) filed with the Government pursuant to
notification no. 477(E) dt. 2707.1991 under the said act.
c) The installed capacities are as per
certificate given by a Director on which the auditors have relied.
d) The capacity mentioned is annual capacity
based on maximum utilisation of plant and machinery.
e) Licensed and installed capacities for the
year indicated above include capacities of entities post merger and closed
units.
f) Synthetic detergents includes Laundry Soap
Capacities.
g) Ice-creams and Frozen Desserts are
alternate capacities.
h) Figures of Licensed / EM Capacities have
been corrected based on the available Licenses / IEMs.
I) * Represent capacities on 3 shift basis,
As on 31.03.2011
Production
|
Particulars |
Units |
Licensed
Capacity |
|
Soaps (‘Million Nos.) |
Tonnes |
3501** |
|
Synthetic Detergents |
Tonnes |
936865** |
|
Personal Products (‘000 nos.) |
Tonnes |
9166942 |
|
Glycerine : Refined |
Tonnes |
NA |
|
Packet Tea |
Tonnes |
94071** |
|
Instant Tea |
Tonnes |
1347 |
|
Packed Coffee |
Tonnes |
15108** |
|
Canned and Processed Fruits and Vegetables |
Tonnes |
48189** |
|
Frozen Desserts and ice Creams (Million
Litres) |
Tonnes |
18 |
|
Water Batteries (‘000 Units) |
Tonnes |
2857 |
Notes :
** Includes:
a)
Third party processing:
Soaps - 227
Million Nos. (2009-10: 229 Million Nos.), Synthetic detergents - 422,192 tonnes
(2009-10: 367,486 tonnes), Personal Products (’000 Nos.) - 545,687 (2009-10:
618,155) Glycerine: Refined - Nil (2009-10: 2,506 tonnes), Packed Tea - 18,018
tonnes (2009-10: 9,399 tonnes), Packed Coffee - 4,865 tonnes (2009-10: 5,138
tonnes), Canned and Processed Fruits and Vegetables - 27,018 tonnes (2009-10:
21,475 tonnes).
GENERAL INFORMATION
|
No. of Employees : |
15000 (Approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lovelock and Lewes Chartered Accountants |
|
Address : |
Mumbai, |
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Associates : |
Capgemini Business Services ( |
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Subsidiaries : |
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Fellow Subsidiaries : |
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Holding Company : |
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Joint Venture : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2250000000 |
Equity Shares |
Rs.1/- each |
Rs.2250.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2159471968 |
Equity Shares |
Rs.1/- each |
Rs.2159.500 Millions |
NOTE
Out of the Above Shares
- 1134849460 Shares of Re.1 each are held by Unilever PLC, the holding
company and its subsidiaries including 794806750 shares of Rs.1 each held
by Unilever PLC
- 795379675 Shares of Rs.1 each are allotted as fully paid up pursuant
to a contract for a consideration other than cash.
- 1316854620 Shares of Rs. 1 each are allotted as fully paid up bonus shares by way of capitalization of shares premium and accumulated profits.
Note :
1. The Company has granted
share options under the Company’s Employees’ Stock Option Scheme and share
options outstanding as at 31st March, 2011 are 2,794,993 (2009-10: 3,135,306).
Of these 482,400 (2009-10: 545,005) options have vested in 2004, 798,949
(2009-10: 874,597) have vested in 2005, 735,800 (2009-10: 810,160) have vested
in 2006, 364,444 have vested in 2007 (2009-10: 403,744) and 413,400 have vested
in 2008 (2009-10: 501,800). During the year 668,391 (2009-10: 1,810,704)
options were exercised and equivalent shares were issued.
2.
During the year 22,883,204 equity shares have been bought back pursuant to the
buy back programme
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (15 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2159.500 |
2181.700 |
2179.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
24179.700 |
23653.500 |
18435.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
26339.200 |
25835.200 |
20615.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
1446.500 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
2772.900 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
4219.400 |
|
|
DEFERRED TAX LIABILITIES |
1893.400 |
2023.100 |
1842.600 |
|
|
|
|
|
|
|
|
TOTAL |
28232.600 |
27858.300 |
26677.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21691.600 |
21621.100 |
16067.800 |
|
|
Capital work-in-progress |
2990.800 |
2739.600 |
4720.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
12606.800 |
12640.800 |
3326.200 |
|
|
DEFERREX TAX ASSETS |
3990.000 |
4511.300 |
4390.900 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
28112.600 |
21799.300 |
25288.600 |
|
|
Sundry Debtors |
9432.000 |
6716.000 |
5368.900 |
|
|
Cash & Bank Balances |
16400.100 |
18922.100 |
17773.500 |
|
|
Other Current Assets |
353.600 |
166.200 |
157.400 |
|
|
Loans & Advances |
6653.600 |
6074.000 |
7421.200 |
|
Total
Current Assets |
60951.900 |
53677.600 |
56009.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
47262.300 |
43737.100 |
33050.000 |
|
|
Other Liabilities |
13486.400 |
9179.500 |
9508.200 |
|
|
Provisions |
13249.800 |
14415.500 |
15279.800 |
|
Total
Current Liabilities |
73998.500 |
67332.100 |
57838.000 |
|
|
Net Current Assets |
(13046.600) |
(13654.500) |
(1828.400) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
28232.600 |
27858.300 |
26677.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (15 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
194011.100 |
175238.000 |
202393.300 |
|
|
|
Other Income |
5860.400 |
3496.400 |
5897.200 |
|
|
|
TOTAL (A) |
199871.500 |
178734.400 |
208290.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
170359.000 |
149753.600 |
175833.100 |
|
|
|
TOTAL (B) |
170359.000 |
149753.600 |
175833.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
29512.500 |
28980.800 |
32457.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.400 |
69.800 |
253.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
29510.100 |
28911.000 |
32204.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2208.300 |
1840.300 |
1953.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
27301.800 |
27070.700 |
30251.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4242.100 |
5050.400 |
5286.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
23059.700 |
22020.300 |
24964.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8021.900 |
5316.600 |
1975.000 |
|
|
|
|
|
|
|
|
|
Less |
Profit and Loss
Balance of Bon Limited |
0.000 |
553.300 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2306.000 |
2202.000 |
2500.000 |
|
|
|
Interim Dividend |
6547.800 |
6543.500 |
7625.600 |
|
|
|
Platinum Jubilee |
0.000 |
0.000 |
0.000 |
|
|
|
Dividend |
7558.200 |
7635.900 |
8719.500 |
|
|
|
Tax on Dividend |
2313.600 |
2380.300 |
2777.800 |
|
|
BALANCE CARRIED
TO THE B/S |
12356.000 |
8021.900 |
5316.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
10589.200 |
9551.400 |
15544.900 |
|
|
|
Other Earnings |
3693.200 |
3451.200 |
3874.00 |
|
|
TOTAL EARNINGS |
14282.400 |
13002.600 |
19418.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12461.900 |
8222.700 |
14421.200 |
|
|
|
Stores & Spares |
306.100 |
142.100 |
179.300 |
|
|
|
Capital Goods |
390.800 |
1149.900 |
306.200 |
|
|
TOTAL IMPORTS |
13158.800 |
9514.700 |
14906.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.58 |
10.10 |
11.46 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
55793.600 |
56104.800 |
|
Total Expenditure |
|
|
48250.900 |
47838.000 |
|
PBIDT (Excl OI) |
|
|
7542.700 |
8266.800 |
|
Other Income |
|
|
506.000 |
776.700 |
|
Operating Profit |
|
|
8048.700 |
9043.500 |
|
Interest |
|
|
0.200 |
5.400 |
|
Exceptional Items |
|
|
587.500 |
444.200 |
|
PBDT |
|
|
8636.000 |
9482.300 |
|
Depreciation |
|
|
562.000 |
571.000 |
|
Profit Before Tax |
|
|
8074.000 |
8911.300 |
|
Tax |
|
|
1802.400 |
2022.100 |
|
Profit After Tax |
|
|
6271.600 |
6889.200 |
|
Net Profit |
|
|
6271.600 |
6889.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
31.03.2009 (15 Months) |
|
PAT / Total Income |
(%) |
11.54 |
12.32 |
11.98 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.07 |
15.44 |
14.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.04 |
35.95 |
41.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Net worth) |
|
1.04 |
1.04 |
1.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Net worth) |
|
2.81 |
2.68 |
3.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82 |
0.79 |
0.96 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT DISCUSSION AND ANALYSIS
Economy and Markets
The world economy
continues to face challenges on the road to sustained recovery, including the
recent developments in the
The economy
experienced a more balanced and positive growth in 2010-11, aided by a solid
recovery in agriculture and continued good performance of industry and
services. There has, however, been a deceleration in industrial growth in the
second half of the year and a further deceleration in the last quarter of
2010-11. This sluggishness is a matter of concern.
The inflation rate
measured in terms of year-on-year change in the WPI is 8.31% for February 2011,
compared to 8.23% in January 2011. This increase is attributed to a surge in
the prices of non-food items, despite a moderation in the inflation of primary
articles, particularly due to a decline in prices of food articles and
minerals. In fact, inflation for non-food articles increased from 23.9% in
January 2011 to 29.8% in February 2011.
The price of crude
oil, which was hovering below USD 80 per barrel till September 2010,
skyrocketed to over USD 100 per barrel in March 2011, and is expected to remain
volatile.
The FMCG markets
in
The Company’s
performance for the year 2010-11 has to be viewed in the context of the
aforesaid economic and market environment.
Home and Personal
Care Business (HPC)
The HPC business
consists of
The opportunity
for growth in
Rural markets
present a tremendous growth opportunity considering relatively lower
penetration in these markets.
The Company rolled
out one of the most ambitious cross-category rural marketing efforts through ‘Khushiyon Ki
Doli ’ programme which touched almost 25 million consumers.
Volatile and
rapidly changing commodity markets posed a major challenge in the latter half
of 2010, where both vegetable oil and crude oil prices increased significantly.
The impact of cost inflation was felt in inputs such as Palm oil, laundry
chemicals, packaging and freight cost. The business was managed dynamically
with increased frequency of cost and pricing review, and aggressive cost saving
programmes, which helped to minimise price impact.
The Directors
believe that sustained investments behind brands by way of technology,
innovations, consumer communication and continued focus on market development
will benefit the business in creating long-term value.
Soaps and
Detergents
While there was strong
volume growth in the Soaps and Detergents category, value grew by 6.1% due to
price corrections taken in laundry business in the early part of 2010.
Fabric wash
recorded its highest volume growth on the back of brand innovations (Wheel) and a significant
strengthening of Rin. The
category witnessed significant competitive action and the Company has responded
strongly to defend and grow its market share in this critical portfolio.
Particularly satisfying was the acceleration of Rin growth, a brand that plays in the crucial mid-market segment
of the detergents market, which is poised to grow strongly as
Margins were under
pressure due to rising input cost prices, and price increases were initiated in
the latter part of the financial year. The Company’s cost-effective programmes
delivered exceptionally well to neutralize part of the impact.
The Company will
continue to focus on laundry driving innovation and relevant communication,
even as costs are controlled across the value chain.
Household products
recorded double digit volume growth during the period. Vim bar continues to perform well. Domex continued on its journey to provide better and germ free
toilets to the Indian consumer. During the year, the Company launched OK bar in parts of
Personal
Personal Products
Personal Products
categories comprise Hair Care, Skin Care, Oral Care, Deodorants and Colour
cosmetics. The Personal Products category grew by 15.7% during the year.
Hair Care
continues to be an attractive category with high volume growth, driven through
increased consumption and value growth through premiumisation. The Company had
a strong year, strengthening its position by gaining share across shampoos and
conditioners. Dove led the
premiumisation agenda with a comprehensive re-stage in the second half of the
year. The brand continues to be the fastest growing brand in the category, thus
gaining rapid market share. Clinic
Plus strengthened its leadership position and continued to be the
largest Shampoo brand in the category. The re-positioning of the brand on the
platform of being ideal for strong and long hair platform has been received
well for the brand. Sunsilk continued
to grow with superior product quality and packaging backed by the distinctive
proposition of ‘co-created by experts’. The Company continued its focus on
market development by investing strongly behind the nascent but emerging high
potential hair conditioners segment, thus driving aggressive growth.
The Skin Care
category holds very strong potential as the country becomes more affluent. In
this context, the category delivered strong double digit growth, led by a very
powerful innovation programme and strong market development efforts. Fair and Lovely continued to grow
well on the back of a re-launch of the brand. Pond’s White Beauty continued its strong growth momentum in the
year, growing well ahead of the market. Vaseline
successfully entered many new Skin Care categories during the year
including Skin creams, Male grooming, Premium jelly and Lip formats, apart from
strengthening its core body lotions portfolio. Pond’s Talcum Powder was re-launched in February 2011 and
received good response.
The Company
embarked on a plan to accelerate Oral Care business growth and the planned
actions were put into market during the financial year. Pepsodent Germ Kill credentials were further strengthened with
the launch of a focused and engaging ‘Pappu
and Pappa’ campaign. Closeup continued
to build its freshness credentials and grew in line with the market. The
toothbrush market has witnessed intense competition during the year and the
Company has put in place robust actions to compete in this fast growing market.
With key launches
of 2010 continuing to perform as per business plans, the Colour Cosmetics
category witnessed stable growth during the year. Some of the key forays have
been the re-launch of Elle 18 in
the youth space and entry of Lakmé into
the largest skin sub segment – ‘Fairness’ with the launch of Perfect Radiance Skin Lightening
Compact and Foundation, combining skin benefit with fairness.
Deodorants
business continued to witness growth. During the year, the Company strengthened
its position in anti-perspirants category with the launch of Sure brand both in roll-on and
aerosol spray format. The Company continued to drive new innovations across Dove and Axe led by ‘Go Fresh’ range
of Dove and launch of Axe Musicstar Campaign. The Company has
leveraged digital media to build over a million fans for Axe on Facebook and has leveraged
gaming and viral campaigns to drive high levels of interaction between the
target audience and the brand. The category has significant potential for
growth in future. The Company is now poised to capitalise in this emerging
category with its portfolio of Axe,
Dove and Sure.
Kimberly Clark
Lever Private Limited (KCLL)
KCLL is a Joint
Venture between the Company and Kimberly-Clark Corporation,
Foods
The Foods
portfolio of the Company comprises Beverages (Tea and Coffee), Processed Foods
(Kissan, Knorr and
The Foods business
has delivered strong double-digit growth across the portfolio during the year.
Consumer and Customer needs have been translated into many relevant and
successful innovations in beverages, ice creams and packaged foods segments.
The Company has continued its focus on micro-marketing initiatives in core
categories to increase consumption and penetration. Packaged food represents a
significant consumer and business opportunity, given changing demographic
profiles, rapid urbanisation, dramatic shifts in income pyramid and need for
products with health benefits. This segment is being developed through
products, which combine taste and nutrition and also provide cooking
convenience.
The Company has
proactively managed multiple challenges, which include:
High competitive
intensity from MNC, National as well as local players in many categories; the
Company has responded through increased brand investments and value-enhancing
innovations.
Significant food
inflation across the spectrum leading to market slowdown and downtrading; the
Company has countered this challenge through consumer-centric value packs,
judicious price increases and aggressive cost saving programmes.
Processed Foods
Kissan continues to remain one of the most trusted brands among Indian
consumers. All the categories under Kissan
registered strong growths. By the end of the year, Kissan achieved volume leadership in
the Ketchups category by participating in multiple benefit and price segments.
Kissan also forayed into new market segments in three big categories and the
initial response from the consumers is encouraging. The Company has launched Kissan Fruit and Soya, a delicious
blend of fruit juice and soya milk, which enjoys a differentiated proposition
in this market. The brand has also entered into the Indian (non-sweet) spreads
market with the launch of Kissan
Creamy Spread across key towns. Kissan
Nutrismart has also been launched in Tamil Nadu and Andhra Pradesh as a test
market.
The Company
maintained its value leadership in the soups segment through Knorr. The segment has registered
impressive growth in the year, backed by an increase in volume share across all
the regions. Knorr soups continued
its objective of positioning itself as a healthy evening snack to drive soup
drinking habit and thus lead market growth and category expansion.
Knorr Soupy Noodles has been the highlight of the Packaged Foods
business in 2010-11. The All India launch of this mix was completed in 2010 and
the product has received good response from consumers across all the markets.
The Company will continue to invest in this category and focus on consumer
relevant innovations in future.
The staples
business, through
The Company
continued its focus on institutional sales of the foods products to
restaurants, hotel chains etc. Although nascent, the business is progressing
well by leveraging the supply chain and product development capabilities of the
Foods Division.
Beverages
The market
witnessed downtrading in Tea segment and the overall growth in the discounted
segment of the market is becoming larger. Notwithstanding such a competitive
context, the business has witnessed strong turnover growth, while maintaining
satisfactory volumes. Commodity inflation continues unabated in the Tea
segment, driven by both local as well as international factors. During the
year, Coffee prices have also increased significantly (at 14 year high) and are
rising further. Spiraling costs continued to exert pressure on margins, which
were mitigated through pricing and supply chain cost savings.
In Tea, given the
faster growth of the discount segment within the market, a strong participation
at the bottom end of the pyramid was undertaken through Brooke Bond Sehatmand and Ruby.
3 Roses continued to perform exceptionally well and has demonstrated
significant growth, strengthening its competitiveness in southern part of
Taj Mahal grew well in the premium end and also registered good growth in the tea
bags segments. The consumption of tea bags was encouraged through media
campaigns and a large sampling initiative carried out with leading airlines. Taaza sales picked up after a slow
start with robust growth in the latter part of the year.
Despite commodity
price pressure, the Company was able to register strong volume growth in
Coffee. In Instant Coffee segment, Bru
had a new thematic campaign on ‘Discover something new’ over
conversations and coffee. This was backed by strong media campaigns and trade
activation programmes. Bru Lite was
introduced in few markets and the initial response has been encouraging. In
conventional coffee, the Company has achieved good volume growth.
The ensuing year
is expected to be very challenging for coffee business given the commodity
price pressures. The Company will take pro-active steps towards ensuring
sustained growth.
The out-of-home
business continues to have high growth potential and has made very good
progress during the year. Investments are being stepped up in the business and
the Company will be expanding the business into new geographies.
Ice Creams
The Kwality Walls
business has had another good year, continuing its consistent growth
trajectory. The three key platforms – Cornetto,
Paddle Pop and Selection Take
Home Tubs, which are popular with youth, children and families
respectively – continued to drive growth for the catagory. Cornetto Double Chocolate, the mid
price Cornetto launched this
year, has been extremely well received by consumers. Cornetto also launched Cornetto
Luv Reels,
The Company is
also expanding the Swirl’s parlours,
a well loved concept of creating and enjoying personalized ice cream. There
were over 130 functional Swirl’s parlours
at the end of the year.
During the year,
input costs have put a significant pressure on profitability. The robust and
well rounded portfolio across Impulse and take-home packs, strong innovations
and well known brands have helped the business to take prudent price increases
and manage its profitability in an inflationary environment. Availability and
visibility being the most important drivers of growth for the category,
investments continue to be made to enhance availability through more freezer
deployment, and using information technology and analytics to drive better
asset utilisation.
Exports Business
The exports business
continued to focus on growth of profitable turnover during the year. Despite a
sluggish recovery in most overseas markets, turnover grew by 9.3%. A robust
value analysis and cost savings programme enabled improve margins, thereby
driving profit growth ahead of turnover growth. The business maintained high
levels of customer service and product quality, and rationalised working
capital levels, thereby improving cash generation.
The Home and
Personal Care segment witnessed an outstanding year driven primarily by Skin
Care and Hair Care categories.
The Pears business
continued its excellent growth after its relaunch last year while sales of Lakmé nearly doubled, albeit on a
small base.
The Foods and
Beverages segment witnessed an excellent year. The flagship Tea bags category
grew with strong sales to
The Marine exports
segment reported a positive contribution in a year, which saw both significant
appreciation of the Rupee against the Euro and increasing raw material prices.
The Rice business also reported profits, despite lower turnover caused by
sluggish demand in Gulf markets.
To fully exploit
the opportunity in export markets and to provide necessary focus, flexibility
and speed to the business, the Board of Directors has decided to demerge FMCG
exports business of the Company into its wholly owned subsidiary Unilever India
Exports Limited (UIEL). The Company will continue to provide the necessary
support to UIEL to drive the growth of exports business. The Demerger of the
FMCG Exports Business shall be subject to necessary approvals of Shareholders,
Statutory Authorities and Hon’ble High Court.
Water
Pureit is a unique in-home drinking water purification system that offers
protection to children and families from waterborne diseases. Pureit has a special Germ Kill Kit
that removes harmful viruses, bacteria and parasites to give drinking water
that is ‘as safe as boiled water’. Most notably, Pureit complies with ‘virus kill’ and ‘bacteria kill’ criteria
of the Environmental Protection Agency (EPA), the regulatory agency in the
In line with Pureit’s mission of protecting lives
from waterborne diseases, the product was launched nationally in 2008 at a very
affordable price. In January 2010, the Company achieved another milestone in
its mission of making safe drinking water available to every Indian with the launch
of Pureit Compact at a price of
just Rs. 1,000. This has now enabled the Company to help safeguard lives in the
segment of society with lower purchasing power, where the incidence of
waterborne diseases is the highest. During the course of the year, Pureit highlighted its safe water
credentials with a communication campaign highlighting the fact that Pureit is the only purifier that can
kill one crore viruses in a litre of water, without needing electricity,
pressurised water, and with an auto shut-off safety system. Also during the
year, the Company launched a new model, Pureit
Marvella. This is being marketed as
The Company has
accelerated the process of re-engineering the business from a mass market to a
Premium Personal Care and Health Care Channel. In line with this strategy, the
business has started inducting right profile business partners (who are capable
of buying and selling premium products) into the business and launched new
innovations which serve to differentiate the business in the premium Beauty and
Wellness space, such as Aviance
Perfect Radiance Beauty Capsules and Serums. This re-engineering should
help in driving the top-line in a profitable manner, going forward.
Beauty and
Wellness
Lakme Lever
Private Limited (LLPL), a wholly owned subsidiary of subject, expanded the
network of Lakmé Beauty Salons during
the year with the opening of 11 Company owned and managed salons, along with 18
franchisee salons. The expansion was focused on metros as well as tier I cities
which offer a substantial potential for expert beauty services. Based on
lessons learnt during the year, the business is now poised for an accelerated
expansion in the coming year. In order to ensure adequate supply of quality
talent of hairdressers and beauticians to meet its growth ambition, LLPL has
entered into an agreement with
CUSTOMER
MANAGEMENT
The year 2010-11
has been a landmark in terms of customer management initiatives. During the year,
the Company restructured the front-end selling system. The process commenced at
the beginning of 2010 and has been fully executed through a number of carefully
crafted steps by the end of the year. This helped streamline the footprint for
the entire portfolio ensuring that all categories (excluding Colour Cosmetics)
can be sold in every store that is on coverage and has led to a sharp increase
in distribution for their brands, especially in Food and in niche categories.
Building further
on customer initiatives, the Company launched Customer Differentiation Tool
that measures a customer’s performance on sales and execution parameters
aligned to business objectives and reward them accordingly. This also provides
a framework for the Company’s personnel to review each customer’s performance
in a transparent manner, discuss future plans and guide them to perform better
in the market place.The CEO personally felicitated the top 100 customers at a
special function.
The
next-generation technology deployed last year has improved execution
significantly and translated into business benefits in urban markets. This
capability has, therefore, been extended to rural markets as well. This
technology is now supported with improved back-end analytical models for sharp recommendations
and intelligent, scientific and outlet-specific execution that help improve
on-shelf availability and hence ‘throughputs’ per outlet. The on-shelf
availability was supported with an extensive merchandising and visibility
programme. The programme has tripled the scale of operations, and is
significantly more reliable, well-managed and measurable, thus improving the
in-store presence of the Company’s products.
Apart from
investing in infrastructure and setting up cutting-edge processes, the Company
had also embarked on an enormous coverage expansion project, in rural and urban
businesses. With the help of geo-spatial analysis, potential markets were
identified. The coverage expansion was well-supported by the required
infrastructure and the project exceeded its ambition. The urban coverage was
increased by 20%, while the rural coverage was tripled. Today, the Company has
more than 1.5 million outlets under direct coverage, doubling the coverage in
the last two years.
Project Shakti
During the year,
the Company took the Shakti initiative
to the next level by extending the relationship with Shakti Amma to her family, through project Shaktimaan. Project Shaktimaan enrols the
un-employed/under-employed male member of the family to sell the Company’s
products into the satellite villages of Shakti.
The initiative serves two convergent purposes – enhances the livelihood
opportunity of the Shakti family
and improves the quality and depth of the Company’s distribution network. This
initiative strengthens the philosophy behind Shakti, which comprise:
- Leading market development Establish a
suitable livelihood for the underprivileged
- Creating a self-sustaining business
model
- Accessing markets beyond the reach of
traditional distribution models
By the end of
2010, there were more than 23,000 Shaktimaan,
and the Shakti programme had
spread to an astounding 5,00,000 outlets, adding another dimension to the
Company’s distribution and contributing to tripling the rural footprint.
SUPPLY CHAIN
The Company has made
further progress in creating value by delivering world-class service to their
customers and superior quality products to their consumers in a responsive,
cost competitive and sustainable manner. Supply Chain service levels as
measured by CCFOT (Customer Case Fill on Time) were maintained at the high
levels ensuring product availability. ‘Speed’ is the new currency and was
strongly driven through SAP based IT solutions for logistics, planning and
distribution. To improve customer centricity, the team is driving cost
propositions for every category and product and has re-designed Sales and
Operation Planning Process (SandOP) to drive a cross-functional and
collaborative model aimed at delivering continuous improvement.
The factories have
enhanced TPM (Total Productivity Management) capabilities and shown positive
momentum and continuous improvement onthe journey of manufacturing excellence.
‘Throughput’ from existing assets has been improved through the use of TPM
techniques, thus reducing costs.The Company has developed long-term
manufacturing strategy and a capacity augmentation plan aligned to the business
growth. All capacity creation projects were completed on schedule with flawless
ramp-up and smooth delivery during the year. The success of ‘LeverCare’ has
enabled a world-class consumer connect system to help consumers reach the
Company, and equally to help their brands reach out to consumers.
During the year,
the Supply Chain team worked on a strong Cost Effectiveness Programme to
deliver savings throughout the supply chain, by various means including
identification of further opportunities for waste elimination.This has
facilitated the business to achieve a significant cost reduction (around 6% of
supply chain costs), the highest ever in the recent past.
The energy
conservation measures across all manufacturing sites have helped to reduce
specific energy consumption. In addition, sustainable alternative routes of
Bio-fuels are being introduced. This has also helped reduce energy costs and carbon
emissions. The Company is committed to a new strategic approach that
incorporates sustainability as an integral part of the business and a long-term
plan has been drawn up for the purpose. The buying function of the Company has
focused on reducing lead time, procurement cost and developing reliability in
the supply of RM and PM by fully leveraging benefits of scale and synergy
through Unilever’s global buying network.
UNAUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER, 2011
(Rs.
In Millions)
|
Particulars |
30.09.2011 |
30.09.2011 |
|
|
Quarter Ended |
Six Month Ended |
|
|
Unaudited |
|
|
|
|
|
|
a) Net Sales / Income from Operations |
55221.600 |
110260.500 |
|
i) Domestic FMCG – HPC |
41512.400 |
82844.800 |
|
ii) Domestic FMCG – Foods |
9734.700 |
19406.000 |
|
Domestic FMGC – Total (i + ii) |
51247.100 |
102250.800 |
|
Exports |
2888.600 |
5933.600 |
|
Others |
1085.900 |
2076.100 |
|
b) Other Operating Income |
883.200 |
1637.900 |
|
Total Operating Income |
56104.800 |
111898.400 |
|
Total Expenditure |
48409.000 |
97221.900 |
|
(a) (Increase)/decrease in Stock in Trade |
(526.300) |
1376.300 |
|
(b) Consumption of Raw/Packing Materials |
22905.400 |
44046.400 |
|
(c) Purchase of traded goods |
7631.100 |
15329.000 |
|
(d) Employees Cost |
2873.100 |
5735.400 |
|
(e) Depreciation/Amortization |
571.000 |
1133.000 |
|
(f) Advertising and Promotions |
6513.700 |
12843.200 |
|
(g) Other Expenditure |
8441.000 |
16758.600 |
|
Profit / (Loss) From Operations before other Income Interest and
Exceptional Items |
7695.800 |
14676.500 |
|
Other Income |
776.700 |
1282.700 |
|
Profit/(Loss) before Interest and Exceptional items |
8472.500 |
15959.200 |
|
Interest |
5.400 |
5.600 |
|
Profit / (Loss) after interest before Exceptional items |
8467.100 |
15953.600 |
|
Exceptional Items |
444.200 |
1031.700 |
|
Profit / (Loss) From Ordinary activities before Tax |
8911.300 |
16985.300 |
|
Tax Expenses |
(2022.100) |
(3824.500) |
|
Net Profit/(Loss) From Ordinary activities after Tax |
6889.200 |
13160.800 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
6889.200 |
13160.800 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
2161.000 |
2161.000 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
|
Public Share
Holding |
|
|
|
Before Extraordinary
Items |
|
|
|
-Basic |
3.19 |
6.09 |
|
-Diluted |
3.19 |
6.09 |
|
After
Extraordinary Items |
|
|
|
-Basic |
3.19 |
6.09 |
|
-Diluted |
3.19 |
6.09 |
|
Average of
Public Share Holding |
|
|
|
- Number of Shares |
1026110257 |
1026110257 |
|
- Percentage of shareholding |
47.48% |
47.48% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter
and promoter group) |
NA |
NA |
|
- Percentage of shares(as a % of the total share capital of the
company) |
NA |
NA |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
1134849460 |
1134849460 |
|
- Percentage of Share (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
100.00% |
|
- Percentage of Share (as a % of the total share capital of the
company) |
52.52% |
52.52% |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
AS ON 30TH SEPTEMBER, 2011
|
Particulars |
30.09.2011 Quarter
Ended |
30.09.2011 Six
Month Ended |
|
|
Unaudited |
|
|
Segment Revenue
(Sales and Income from Services) |
|
|
|
- Soaps and Detergents |
25925.500 |
51475.900 |
|
- Personal Products |
16126.300 |
32433.300 |
|
- Beverages |
6532.600 |
12618.200 |
|
- Packaged Foods |
3318.400 |
7039.200 |
|
- Exports |
2909.300 |
5972.700 |
|
- Others (includes Chemicals, Water, etc.) |
1160.700 |
2226.700 |
|
Total Segment
Revenue |
55972.800 |
111766.000 |
|
Less : Inter
segment revenue |
0.000 |
0.000 |
|
Net Segment
Revenue |
55972.800 |
111766.000 |
|
Segment Results
(Profit Before Tax from ordinary activities) |
|
|
|
- Soaps and Detergents |
3212.300 |
5572.900 |
|
- Personal Products |
3940.300 |
8072.900 |
|
- Beverages |
877.300 |
1631.300 |
|
- Packaged Foods |
164.700 |
338.500 |
|
- Exports |
240.200 |
477.000 |
|
- Others (includes Chemicals, Water, etc.) |
(78.000) |
(103.600) |
|
Total Segment
Results |
8356.800 |
15989.000 |
|
Less : Interest Expense |
(5.400) |
(5.600) |
|
Add/(Less) : Other unallocable expenditure net of unallocable income |
559.900 |
1001.900 |
|
Total Profit
Before Tax from ordinary activities |
8911.300 |
16985.300 |
|
Capital Employed
(Segment assets and less Segment liabilities) |
|
|
|
- Soaps and Detergents |
(3757.400) |
(3757.400) |
|
- Personal Products |
642.600 |
642.600 |
|
- Beverages |
1248.000 |
1248.000 |
|
- Packaged Foods |
1470.400 |
1470.400 |
|
- Exports |
1544.900 |
1544.900 |
|
- Others (includes Chemicals, Water, etc.) |
(504.500) |
(504.500) |
|
Total Capital
Employed in segments |
644.000 |
644.000 |
|
Add : Unallocable corporate assets less corporate liabilities |
39124.000 |
39124.000 |
|
Total Capital
Employed in company |
39768.000 |
39768.000 |
STATEMENT
OF ASSETS AND LIABILITIES AS ON 30TH SEPTEMBER, 2011
|
Particulars |
30.09.2011 Quarter
Ended |
30.09.2011 Six
Month Ended |
|
|
Unaudited |
|
|
Shareholder’s Funds |
|
|
|
a) Capital |
2161.000 |
2182.100 |
|
b) Reserves and Surplus |
37607.000 |
34701.900 |
|
Loan Funds |
1978.800 |
0.000 |
|
Total |
41746.800 |
36884.000 |
|
|
|
|
|
Fixed Assets (Including CWIP) |
24289.600 |
24465.400 |
|
Investments |
26556.800 |
21866.600 |
|
Net Deferred Tax Asset (Net) |
2038.200 |
2352.400 |
|
Current Assets, Loans and Advances |
|
|
|
a) Inventories |
25108.200 |
23845.100 |
|
b) Sundry Debtors |
7587.800 |
6282.500 |
|
c) Cash and Bank Balances |
15644.800 |
21156.200 |
|
d) Other Current Assets |
439.400 |
487.100 |
|
e) Loans and Advances |
8150.300 |
6741.800 |
|
Current Liabilities and Provisions |
|
|
|
a) Current Liabilities |
(60231.500) |
(63051.700) |
|
b) Provisions |
(7836.800) |
(7261.400) |
|
Net Current Assets |
(11137.800) |
(11800.400) |
|
Total |
41746.800 |
36884.000 |
Fixed assets:
- Land
- Buildings
- Plant and
Machinery
- Railway
Sidings
- Furniture,
Fixtures and Office Equipments
- Motor
Vehicles
Website details:
Business
Description
Subject is an India-based fast moving consumer goods company. The
Company operates in seven business segments. Soaps and detergents includes
soaps, detergent bars, detergent powders and scourers. Personal products
include products in the categories of oral care, skin care (excluding soaps),
hair care, talcum powder and color cosmetics. Beverages include tea and coffee.
Foods include staples (atta, salt and bread) and culinary products
(tomato-based products, fruit-based products and soups. Ice creams include ice
creams and frozen desserts. Others include chemicals and water business. As of
March 31, 2011, the Company had over 35 brands spanning 20 distinct categories.
Its portfolio includes household brands, such as Lux, Lifebuoy, Surf Excel,
Rin, Wheel, Fair and Lovely, Ponds, Vaseline, Lakme, Dove, Clinic Plus,
Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality
Walls and Pureit. For the fiscal year ended 31 March 2011, subject's revenues
increased 12% to RS202.80B. Net income before extraordinary item increased 7%
to RS22.96B. Revenues reflect an increase in soap and detergent revenue, higher
revenues from personal products, an increase in income from processed foods and
higher ice creams income. compared due to year end change. Net income was
partially offset by an increase in depreciation expenses.
Board of Directors
Mr. Harish Manwani
Non-Executive
Chairman of the Board
He is also President Asia and Africa, Central and
Mr. Pradeep
Banerjee
Executive Director
- Supply Chain, Whole - Time Director
He joined the Company as a Management Trainee in 1980. He has held a
series of assignments in Supply Chain, Research and Development and Categories.
Mr. Banerjee became the Vice President -Technical (Home and Personal Care) in
2003 and later moved to UK in 2005 as Vice President-Global Supply Chain for
Personal Care Category. He served as the Vice President for Global Procurement
in
Mr. Raghunath
Anant Mashelkar
Non-Executive
Independent Director
He is presently also the President of Global Research Alliance, a
network of publicly funded RandD institutes from Asia-Pacific, Europe and
Mr. Aditya Narayan
Non-Executive
Independent Director
He is the Non-Executive Chairman of ICI India Limited, now known as
AkzoNoble India Limited. Starting as a Management Trainee with ICI India in 1973,
he grew through diverse functions and businesses, including serving in senior
positions like the CEO of the Fertilizer and Explosives businesses of ICI
India. He was also a Corporate Planning Manager at ICI Group head quarters in
Mr.Subramanian
Ramadorai
Non-Executive
Independent Director
He is the Vice-Chairman of Tata Consultancy Services Limited. He is also
on the Boards of a number of reputed companies and educational institutions -
Tata Industries, Tata Technologies, Bombay Stock Exchange and the MIT Sloan
School of Management. Mr. Ramadorai was conferred the esteemed Padma Bhushan by
the President of India in recognition of his contributions to IT industry of
the country. In 2008, Mr. Ramadorai was recognised as the 'International CEO of
the Year' at the 14th Annual LT Bravo Business Awards and the 'Asia Talent
Management of the Year' at CNBC's 7th Asia Business Leader Award. In April
2009, Mr. Ramadorai was awarded the CBE (Commander of the Order of the
Mr. Sridhar
Ramamurthy
Chief Financial
Officer, Executive Director - Finance and IT, Director
He joined the Company in May 1989 and worked in a number of finance and
commercial roles in
Mr. Gopal Vittal
Executive Director
- Home and Personal Care, Director
He, an alumnus of
Press
Release:
HUL conferred with Corporate Governance Award
23-12-2011: Hyderabad :
Hindustan Unilever Limited (HUL) has been awarded the National Corporate
Governance Award 2011 by the Institute
of Company Secretaries of India (ICSI) for excellence in Corporate
Governance at presentation ceremony of the 11th ICSI National Award for
Excellence in Corporate Governance 2011 held at Hyderabad
The award was received by Dev
Bajpai, Executive Director - Legal, HUL, on behalf of the company from his
Excellency Shri ESL Narasimhan, Governor of Andhra Pradesh and Dr. M Veerappa
Moily, Hon'ble Union Minister for Corporate Affairs, Government of India.
Speaking about the award Dev Bajpai said, "high standards of corporate
governance have been fundamental to the business of HUL since its inception.
This recognition will certainly inspire us to further raise the bar on
corporate governance in HUL." The ICSI bestows this award every year to
those it considers to be the two best-governed companies in
Award Selection Process
The selection of the winning
companies for translating good corporate governance into reality is made by a
jury of distinguished practitioners in their respective fields, reflecting the
prestigious nature of the award. The 20-member jury was chaired by Hon'ble Mr.
Justice RC Lahoti, former Chief Justice of India. Some of the other eminent
members of the jury included Ms. April Chan, President, Corporate Secretaries
International Association, Mr Grant Kirkpatrick, Head, Corporate Affairs
Division, OECD, Mr. Naresh Chandra, Former Cabinet Secretary, Government of
India, Mr VK Shunglu, Former Comptroller and Auditor General of India, Dr RA
Mashelkar, President, Global Research Alliance, National Chemical Laboratory,
Mr Philip Armstrong, Head, Global Corporate Governance, Forum United States of
America, Mr TS Krishna Murthy, Former Chief Election Commissioner of India and
Mr Anil Murarka, President, The ICSI.
The evaluation process for the award
selection involved a number of rounds of screening, including feedback from
Independent Directors of the company on governance practices. The companies
were short-listed on the basis of performance in key areas of corporate
governance including: Board independence and governance; Board systems and procedures;
Transparency and disclosures compliances; Consistent shareholder value
enhancement and value enhancement for other stakeholders; Corporate Social
Responsibility; and other good corporate governance initiatives.
This award recognises not only the
governance practices of HUL, but also the contribution made by the company
towards its stakeholders and society at large.
Hindustan Unilever Limited – Results for September Quarter 2011
31-10-2011: Hindustan Unilever Limited (HUL) announced results for the September
Quarter 2011.
During the quarter, Domestic
Consumer business grew at 18.5% with strong underlying volume growth of 9.8%.
Growth has been broad based, and ahead of market. All segments have delivered
double digit growth for the third consecutive quarter.
Soaps
and Detergents grew by 21.8%. Growth in Laundry was ahead of market,
underpinned by double digit growth in Rin, Surf and Wheel. Vim was relaunched
during the quarter with “100 Nimbuon Ki Shakti”. Skin Cleansing had one of its
strongest quarters with all segments of the portfolio performing well. Lux and
Lifebuoy grew in double digits while the premium portfolio registered its 10th consecutive quarter of double digit
growth. Lux was relaunched during the quarter with superior product and salient
advertising.
Personal Products grew by 18.2%.
Growth in Skin Care accelerated with Fair and Lovely, Vaseline and Pond’s
growing in strong double digits. Fair and Lovely has been modernized and is
yielding good results. Vaseline and Pond’s continue to build segments of future
with differentiated benefits and aspirational offerings - Vaseline Total
Moisture was relaunched with 3 variants and Pond’s White Beauty was extended
with Naturals range during the quarter. The face washes range was expanded with
introduction of Dove Face Wash. Hair and Oral delivered double digit growth
amidst heightened competitive intensity. Nourishing Oil care range and Re. 1
sachets were introduced under Dove during the quarter to expand the consumer
franchise.
Beverages grew by 14.6%, with all
brands delivering double digit growth. New range of flavored and green tea bags
was launched under Taj Mahal. Packaged Foods growth at 20.9% was broad based.
Kissan range was relaunched with a new brand visual and “100% Real”
proposition. Knorr Soupy Noodles range was extended with an accessible Rs.5
pack. Kwality Walls continued its strong growth momentum led by innovations and
distribution expansion.
Pureit continues to expand its
portfolio with the latest entry into fast growing “RO water purifier” segment
with “Marvella RO”. Distribution across modern electronic retail chains is
being scaled up and “Go to Market” integration is expected to be completed by
the year end.
Inflation and commodity costs
continued to be high. Cost pressures were managed dynamically through
aggressive savings programmes coupled with judicious pricing. Cost of Goods
Sold is up by 340 bps due to high input costs, especially in Soaps and
Detergents.The overall competitive intensity remained high and AandP spends at
11.8% of sales was maintained at competitive levels. Brand investment was
stepped up in Personal Products, Beverages and Packaged Foods while spends in
Soaps and Detergents were recalibrated in line with industry trends.The
business continues to focus on driving buying efficiencies, cost saving
programmes and return on marketing investments, with good results.
Profit before interest and tax
(PBIT) grew by 30.1% with PBIT margin being up by 130 bps. Profit after tax but
before exceptional items, PAT (bei), grew by 22.3% to Rs. 652 crore during the
quarter. Net Profit at Rs.689 crore grew by 21.7%.
The
Board of Directors have declared an interim dividend of Rs.3.50 per share for
the accounting year ending 31st March
2012.
Harish Manwani, Chairman commented:
“Against the backdrop of a challenging environment, we have delivered one of
our strongest quarters with topline growth well ahead of the market and
improved operating margins. We will continue to leverage consumer insights to
deliver winning innovations and maintain relentless focus on execution, cost
management and building organizational capabilities for competitive advantage.”
About Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is
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 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.51.83 |
|
|
1 |
Rs.79.43 |
|
Euro |
1 |
Rs.65.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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.