MIRA
INFORM REPORT
|
Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
WHIRLPOOL OF INDIA LIMITED |
|
|
|
|
Formerly Known
As : |
KELVINATOR OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
Plot A-4, MIDC, Ranjangaon Taluka-Shirur District Pune – 419204,
Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
09.07.1960 |
|
|
|
|
Com. Reg. No.: |
11-020063 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1807.218 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29191PN1960PLC020063 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMW01401B DELW00327F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACW1336L |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of
Refrigerator Direct Cool, Refrigerator No Frost, Deep Freezer, Additional
Compressor, Electrical Grade Lamination, Electrically Operated Cash register,
Electronic Cash Register, Scooter, Moped, Microwave Oven, Winding Wire, Tool
and Programmable Laundering Machines. |
|
|
|
|
No. of Employees
: |
2750 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 16890000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having
satisfactory track. Financial position of the company is improving. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Plot A-4, MIDC, Ranjangaon Taluka-Shirur District Pune – 419204,
Maharashtra |
|
Tel. No.: |
91-11-6857688/ 91-20-4061100
/ 2138-660100 |
|
Fax No.: |
91-11-6857701/ 91-2138-232376/
232229 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
A 8, Vaitalik, |
|
Tel. No.: |
91-11-26857180 |
|
Fax No.: |
91-11-26523369 |
|
E-Mail : |
|
|
|
|
|
Corporate
Office 2 : |
Plot No. 40,
Sector – 44, Gurgaon – 122 022, |
|
Tel. No.: |
91-124-4591300 |
|
Fax No.: |
91-124-4591301 |
|
|
|
|
Factory : |
·
Faridabad,
Haryana, India ·
Thirubhuvanai,
Pond cherry, India ·
Ranjangaon,
Maharashtra, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Arvind Uppal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Syed Shahzad Akhtar |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Robert Lawrence Mink |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Anand Bhatia |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Simon J. Scarff |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sanjiv Verma |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Sabharwal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
95,153,872 |
75.00 |
|
|
95,153,872 |
75.00 |
|
Total
shareholding of Promoter and Promoter Group (A) |
95,153,872 |
75.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6,786,053 |
5.35 |
|
|
9,486 |
0.01 |
|
|
633 |
- |
|
|
6,069,881 |
4.78 |
|
|
85 |
- |
|
|
85 |
- |
|
|
12,866,138 |
10.14 |
|
|
|
|
|
|
4,277,229 |
3.37 |
|
|
|
|
|
|
8,421,401 |
6.64 |
|
|
5,188,429 |
4.09 |
|
|
964,761 |
0.76 |
|
|
42,728 |
0.03 |
|
|
343,967 |
0.27 |
|
|
6,943 |
0.01 |
|
|
571,123 |
0.45 |
|
|
18,851,820 |
14.86 |
|
Total Public
shareholding (B) |
31,717,958 |
25.00 |
|
Total (A)+(B) |
126,871,830 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
126,871,830 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Refrigerator Direct Cool, Refrigerator No Frost, Deep Freezer, Additional
Compressor, Electrical Grade Lamination, Electrically Operated Cash register,
Electronic Cash Register, Scooter, Moped, Microwave Oven, Winding Wire, Tool
and Programmable Laundering Machines. |
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|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
Refrigerators |
Nos. |
1883409 |
|
Washing Machines |
Nos. |
561945 |
|
Air Conditioners |
Nos. |
18563 |
|
Microwave Ovens |
Nos. |
-- |
|
Other Products |
Nos. |
-- |
|
Semi Finished Goods |
Nos. |
18891 |
|
Spares and Accessories |
Nos. |
-- |
|
Miscellaneous |
Nos. |
-- |
|
Particulars |
Unit |
Installed capacity per annum |
|
Refrigerator Direct Cool |
Nos. |
1974000 |
|
Refrigerator No Frost |
Nos. |
811200 |
|
Washing Machine |
Nos. |
1043000 |
|
Blade Coffee Grinder |
Nos. |
200000 |
|
Air Conditioners |
Nos. |
93600 |
|
Portable Oven & Small Appliances |
Nos. |
1200000 |
GENERAL INFORMATION
|
No. of Employees : |
2750 (Approximately) |
|||||||||
|
|
|
|||||||||
|
Bankers : |
·
ABN
Amro Bank N.V. ·
Citibank ·
Deutsche
Bank ·
HDFC
Bank Limited ·
Punjab
National Bank ·
Standard
Chartered Bank ·
Hongkong
and Shanghai Banking Corporation ·
Standard
Chartered Grind lays Bank Limited ·
State
Bank of India ·
Bank
of America ·
Standard Chartered Bank ·
ABN Amro Bank ·
Bank of America ·
Punjab National Bank ·
Nova Scotia Bank |
|||||||||
|
|
|
|||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
Address : |
SRB House, 20,
Community Centre, Pushp Vihar (Madangir), |
|
|
|
|
Group Companies / Enterprise where common control
exists and with whom transactions have taken place during the year : |
·
Maytag Sales Inc. ·
Whirlpool (China) Investment Company Limited ·
Whirlpool Greater China Inc. ·
Whirlpool Southeast Asia Pte ·
Whirlpool Europe S.r.l. ·
Whirlpool (Thailand) Limited ·
Whirlpool India Holdings Limited ·
Whirlpool Slovakia Spol s.r.o. ·
Whirlpool Home Appliance (Shanghai) Company,
Limited ·
Whirlpool S.A., Whirlpool (Hong Kong) Limited ·
Whirlpool Colombia S.A., Whirlpool (Australia)
Pty. Limited ·
WFC de Mexico S. de R.L. de C.V. ·
Whirlpool Maroc S. ŕr.l. ·
Whirlpool Argentina S.A ·
Whirlpool South Africa (Pty) Limited, Guangdong ·
Whirlpool Electrical Appliances Company Limited ·
Whirlpool Microwave Products Development Limited ·
Beijing Embraco Snowflake ·
Compressor Company Limited ·
Whirlpool France S.A.S. ·
Whirlpool Sweden A.B. ·
Whirlpool Canada Holding Company ·
Whirlpool Polska S.A. ·
Bauknecht Hausgeräte GmbH ·
Whirlpool d.o.o. Beograd ·
Empressa Brasileira, ·
Comercial Acros Whirlpool, S.A. de C.V. ·
Whirlpool Product Development (Shenzhen) Company
Limited ·
Whirlpool Asia Private Limited ·
Whirlpool SSC Limited ·
Whirlpool Peru S.R.L. |
|
|
|
|
Parties having direct or indirect control over
the Company : |
·
Whirlpool Corporation Inc., USA (Holding Company) ·
Whirlpool Mauritius Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
|
155000000 |
10% Redeemable
Non-Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.1550.000 Millions |
|
|
TOTAL |
|
Rs.3050.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
126871830 |
Equity Shares |
Rs.10/- each |
Rs.1268.718 Millions |
|
53850000 |
10% Redeemable
Non-Convertible Cumulative Preference Share |
Rs.10/- each |
Rs.538.500 Millions |
|
|
TOTAL |
|
Rs.1807.218 Millions
|
Out of the above:
(i) 50000 Equity
Shares were allotted pursuant to a contract for supply of machinery in earlier
years.
(ii) 6601400
Equity Shares were allotted as fully paid up Bonus Shares by capitalisation out
of General Reserves in earlier years.
(iii) 4196400
Equity Shares were allotted as fully paid up Bonus Shares by capitalisation out
of Securities Premium Account in earlier years.
(iv) 25000 Shares
were allotted to Shareholders of erstwhile Aravali Swachalit Vahan Limited
under a Scheme of Amalgamation in earlier years.
(v) 7500000 Shares
were allotted to Shareholders of erstwhile Whirlpool Washing Machines Limited
under a Scheme of Amalgamation in earlier years.
(vi) 24202188
Shares were allotted to a Shareholder of erstwhile Whirlpool Financial India
Private Limited under a Scheme of Amalgamation in earlier years.
Notes:
1. 95153872 Equity
shares are held by Whirlpool Corporation Inc., USA, the Ultimate Holding
Company, through its subsidiary Whirlpool Mauritius Limited.
2. 53850000 10%
Redeemable Non-Convertible Cumulative Preference Shares are held by Whirlpool
Canada Holding Company, a subsidiary of Whirlpool Corporation Inc., USA.
3. 10% Redeemable Non-Convertible
Cumulative Preference Shares are redeemable at par at the earliest of the
following events:
(i) at the end of
20 years from the date of allotment;
(ii) at any time
after the expiry of 30 days from the date on which the Company gives subscribers
a notice of its intention to redeem the shares; or
(iii) within 30
days from the date on which the subscriber gives the Company a notice of its
intention to have the shares redeemed.
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 |
1807.218 |
2792.143 |
2792.143 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2416.533 |
874.933 |
256.924 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(8.205) |
|
|
NETWORTH |
4223.751 |
3667.076 |
3040.862 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
1.527 |
1102.354 |
|
|
TOTAL BORROWING |
0.000 |
1.527 |
1102.354 |
|
|
DEFERRED TAX LIABILITIES |
209.823 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4433.574 |
3668.603 |
4143.216 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3143.229 |
2895.061 |
3058.494 |
|
|
Capital work-in-progress |
137.115 |
132.719 |
20.187 |
|
|
|
|
|
|
|
|
Intangible Assets |
29.135 |
3.321 |
5.922 |
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
114.757 |
732.527 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6673.630 |
4624.863 |
2998.743 |
|
|
Sundry Debtors |
1152.183 |
1397.869 |
820.665 |
|
|
Cash & Bank Balances |
530.949 |
621.777 |
727.779 |
|
|
Other Current Assets |
20.475 |
14.251 |
0.000 |
|
|
Loans & Advances |
1450.459 |
1577.140 |
794.874 |
|
Total
Current Assets |
9827.696
|
8235.900
|
5342.061
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5364.341 |
4761.368 |
2457.889 |
|
|
Other Current Liabilities |
2387.498 |
1827.459 |
2060.577 |
|
|
Provisions |
951.762 |
1124.328 |
591.551 |
|
Total
Current Liabilities |
8703.601
|
7713.155
|
5110.017
|
|
|
Net Current Assets |
1124.095
|
522.745
|
232.044
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
94.042 |
|
|
|
|
|
|
|
|
TOTAL |
4433.574 |
3668.603 |
4143.216 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
26119.288 |
21374.815 |
16466.455 |
|
|
|
Income from Services |
885.397 |
773.943 |
725.162 |
|
|
|
Other Income |
281.241 |
233.753 |
111.472 |
|
|
|
TOTAL (A) |
27285.926 |
22382.511 |
17303.089 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchasing of Trading Goods |
5697.254 |
3978.808 |
2209.451 |
|
|
|
Raw Material Consumed |
13073.646 |
10744.863 |
8564.895 |
|
|
|
Employees Remuneration and benefits |
1907.016 |
1554.057 |
1359.388 |
|
|
|
Operating and other expenses |
5498.009 |
4594.480 |
3390.776 |
|
|
|
Decrease/(Increase) in inventories |
(1784.005) |
(1135.306) |
259.063 |
|
|
|
Miscellaneous expenditure Written off |
0.000 |
94.042 |
94.304 |
|
|
|
TOTAL (B) |
24391.920 |
19830.944 |
15877.877 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2894.006 |
2551.567 |
1425.212 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
56.494 |
82.684 |
173.214 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2837.512 |
2468.883 |
1251.998 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
445.122 |
396.790 |
390.051 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2392.390 |
2072.093 |
861.947 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
732.063 |
621.894 |
156.777 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
1660.327 |
1450.199 |
705.170 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
596.879 |
[8.205] |
[713.375] |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Preference Shares |
45.743 |
417.679 |
0.000 |
|
|
|
Proposed Dividend on Preference Shares |
53.850 |
304.685 |
0.000 |
|
|
|
Tax on Dividend |
15.172 |
122.751 |
0.000 |
|
|
|
Transfer to Capital Redemption Reserve |
984.925 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1157.516 |
596.879 |
[8.205] |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Export of Goods at FOB value |
1575.070 |
1822.674 |
1704.647 |
|
|
|
Service Income |
713.622 |
620.667 |
541.674 |
|
|
|
Interest Income |
36.462 |
252.88 |
|
|
|
TOTAL EARNINGS |
2325.154 |
2468.629 |
2246.321 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
2226.167 |
2662.209 |
2604.748 |
|
|
|
Spare Parts |
142.161 |
187.790 |
0.000 |
|
|
|
Finished Goods |
3616.999 |
1580.623 |
774.187 |
|
|
|
Capital Goods |
88.312 |
135.020 |
64.710 |
|
|
TOTAL IMPORTS |
6073.639 |
4565.642 |
16441.695 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.18 |
10.03 |
4.15 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3rd Quarter |
|
|
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
8141.300 |
5770.600 |
6188.500 |
|
Total Expenditure |
7298.600 |
5380.800 |
5779.900 |
|
PBIDT (Excl OI) |
842.700 |
389.800 |
408.600 |
|
Other Income |
29.000 |
24.900 |
19.800 |
|
Operating Profit |
871.700 |
414.700 |
428.400 |
|
Interest |
12.800 |
9.600 |
9.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
858.900 |
405.100 |
419.000 |
|
Depreciation |
125.600 |
110.000 |
119.100 |
|
Profit Before Tax |
733.300 |
295.100 |
299.900 |
|
Tax |
222.800 |
151.500 |
88.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
510.500 |
143.600 |
211.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
510.500 |
143.600 |
211.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.0.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.08
|
6.48
|
4.08
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.16
|
9.69
|
5.23
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.44
|
18.62
|
10.25
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.57
|
0.57
|
0.28
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.06
|
2.10
|
2.04
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13
|
1.07
|
1.04
|
LOCAL AGENCY FURTHER INFORMATION
Performance of the
Company
During the year ended March 31, 2011 the sales of the Company, was
Rs.32756.600 Millions, up by 22%. Profit before tax and extra ordinary items
was Rs.2392.400 Millions as compared to corresponding profit of Rs.2166.100
Millions in the previous year. The performance of the Company during the year
surpassed all its previous milestones of turnover, profit, cash generation.
This performance has been achieved by focusing on new product launches, product
mix, management, effective working capital management and cost effective
initiatives.
Preference Shares
The Company had issued 15,23,42,500 10% Redeemable Non-Convertible
Cumulative Preference Shares of Rs.10 each to Whirlpool Canada Holding Company
in the year 2005 redeemable at the end of twenty years with call and put
options for redemption to the Company and Shareholder respectively.
The Company had redeemed 9,84,92,500 Preference Shares on request of the
shareholder using the put option and payment was made to the preference
shareholders along with pro-rata dividend till the date of redemption during
the financial year.
The Board of Directors have passed a resolution in its meeting held on
May 09, 2011 to redeem the balance 5,38,50,000 10% Redeemable non convertible
Cumulative preference shares of Rs. 10 each along with pro-rata dividend till
the date of redemption on or before August 31, 2011.
Management
Discussion and Analysis Report (MD and A)
Sales and
Marketing
The year 2010-11 witnessed contrasting market conditions. The first
quarter saw robust consumer demand across all categories and revenue grew in
strong double digits. However, subsequent quarters saw moderation in growth
primarily due to two factors: (1) food inflation which impacted consumer demand
and (2) unabated commodity inflation which necessitated frequent price
increases, further dampening demand. The Company adapted itself to the
different scenarios, focusing on volume when the conditions were good and
profitability as growth moderated. A number of actions were taken to protect
margin: better sales mix, controlling discretionary expenditure, and freezing
recruitment. Where the company did not compromise was in investment in
innovation and expansion of distribution. Keeping with Whirlpool’s tradition of
bringing out first-to-market products with consumer relevant design and feature
innovations, they launched 4 products that quickly achieved marketplace
success.
• A 3-Door Frost Free Refrigerator marketed as Protton was launched in
300 and 300 L capacities which attained >30% market share in the very first
year. The Company has firm plans to enlarge this portfolio and broaden the
appeal to a larger consumer base.
• In Air Conditioners, the Company grew by over 100% on the back of a
larger range in Split Air Conditioners in the Mastermind Aviator and Mastermind
Chrome series. The range was further enhanced with the introduction of two new
series – Mastermind Protton and Mastermind Elegance in Q4. Whirlpool now has an
enviable range of high performance Air Conditioners with different options in
styling, color and graphics, energy ratings and price points for consumers to choose
from.
• ACE Wash Station – was launched in the semi automatic segment of
Washing Machine. This highly innovative product, distinguished by its unique
design and platform for sorting clothes, became a leader in its segment within
3 months of launch, demonstrating how low cost innovation can create
value even in a commoditized market segment.
• 2 new models of Microwaves were launched in the year helping the
category grow by > 40%. They continue to have a very robust pipeline of new products
which would be launched in ensuing quarters.
Following the 3600 brand activation programme of 2009-10 that saw
increased visibility of the Whirlpool brand, the Company maintained round the
year presence in key media through different campaigns: ACs, followed by 3-door
refrigerator campaign in summer, and Ace during the festival season. Use of
Outdoor and Out-of-Home channels continued and >6500 screens in the latter
run their campaigns throughout the year.
The key emphasis of the brand in 2010-11 went beyond visibility to focus
on increasing brand affinity, with initiatives to enhance the level of consumer
engagement with the brand. Three initiatives taken during the year are
described below.
• Ek Jodi Kapda: The Company launched this campaign during Onam in
Kerala (August 2010) and its success saw it extend into an all-India campaign
during Diwali. Ek Jodi Kapda is a platform created for contributing clothes for
the under-privileged sections of their society. The cause, implemented in
partnership with a leading NGO Goonj, was endorsed by Shabana Azmi and
advertised on TV, Radio and Print, supported by huge on-ground activation such
as branded vans and opening of collection centres at retail counters. By
facilitating a platform where consumers could bring happiness to the less
privileged in the festive period, Whirlpool strengthened its credentials as a
caring company that believed in creating happiness not only for its customers
but for the community at large. The result of this campaign was staggering: 180
tons of clothes were collected across the country with more than 25 lakh
consumers directly engaging with the brand during this time.
• Road Shows: A massive consumer contact program was done on Refs and
Aircon category at the start of the summer season, particularly in towns where
Whirlpool presence was weak. This helped in expanding billing points in the
smaller towns of the country.
• Social Media: The Company engaged with the consumers directly through
Facebook and Twitter and they have more than 1 Lakh fans on their website with
whom they have a continuous dialogue every day.
The Company continues to expand distribution by opening up distributors
in smaller towns. The dealer contact programme initiated a couple of years ago
has become a biannual event with the first conducted at the onset of summer and
the second prior to the festive season. Over 10,000 dealers across the country
are contacted on each occasion during which old relationships are strengthened
and new ones started. The Company also created a new format of exclusive Brand
Shops, focusing on large urban centres. Approximately 70 such outlets were
operational as they exited the year. There are plans to expand the footprint of
Brand Shops in the ensuing quarters.
Finally, the Company restructured the front end of the organization to
improve execution and bring focus on emerging businesses. (a) It merged the
Sales and Service at the regional level. This change was done to have a single
point of ownership in improving the pre and post purchase experience and hasten
speed in decision making. (b) To accelerate growth in new businesses it
strengthened the regional structure by having dedicated business managers for
Air Conditioners and Microwaves, Power Accessories and Water Purifiers.
Exports
During the year, the Export business of the company achieved a turnover
of Rs.1690.000 Millions. This achievement was in the face of appreciating
Indian Currency and steep increase in the raw material cost.
Their neighboring markets in the SAARC region performed excellently and
delivered a volume growth of over 80%. They expect to maintain the momentum in
these markets through range and network expansion in these low penetrated
markets.
The new range of Mastermind and Proton World Series Refrigerators were
launched in Australia and initial results are encouraging. They achieved
breakthrough in select Latin American markets with their No-Frost Range. This
has laid the foundation for entering other markets in that region. In Middle
East, Europe and Africa, they were able to expand their range and advance into
select CIS Markets despite competitive market conditions. Further geographic
expansions in African markets were achieved through their range of Semi
Automatic Washers. South East Asia continues to deliver steady volumes,
particularly Philippines.
Going forward, the acceleration of new product development in India and
investment in new platforms will translate to a wider product range for export
markets. The Company’s focus on low cost innovation will also benefit the
export business for low income economies.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure
and Developments
Despite demand being uneven in the last fiscal, the home appliance
Industry saw strong growth. Volumes in the Refrigerator and Washer categories
are estimated to have grown by 15 and 11% respectively, while Air Conditioners
saw growth exceeding 20%. It is poised to become the largest category within
home appliances in next 2 – 3 years. Microwave, even on a small base registered
a growth of 20% in the last fiscal. Low household penetration growing
disposable income presents strong growth opportunity for the future.
In terms of consumer trends, there are some discernable trends.
• There is distinct preference for high-end products. For example fully
automatic washing machines and split air conditioners are growing faster than
the category average.
• Lifestyle changes are influencing demand of large capacity products.
New formats such as multi-door refrigerators are finding quick acceptance.
• Energy efficiency is a key determinant in selecting a product.
• Styling, Design and Colour that reflect the buyers personality are
factors considered in the purchase process. Consumers are willing to pay a
premium for good design.
• Heightened awareness on health hazards is fuelling growth of
preventive products like Water Purifiers. Health features are increasingly
finding their way in Air Conditioners.
• Investment in new kitchens and the presence of a number of
international kitchen manufacturers is contributing to the growth of large
kitchen appliances such as cook tops, chimneys, dishwashers and ovens.
• Retail environment continues to evolve. Customer experience in the
shop is a critical touch point.
Outlook and
Opportunities
The long term growth of home appliances is secure given India’s low
ownership of appliances even in urban markets. India’s consumer pyramid offers
opportunities to ladder products across capacities, formats and prices. Growth
of nuclear families and increasing demand the homemaker’s time are other
factors that will drive demand. Government spending on infrastructure,
particularly electricity augurs well for sustained demand from all town
classes, particularly non-metro markets.
NATURE OF
OPERATIONS
Whirlpool of India Limited is a leading manufacturer of home appliances.
It is primarily engaged in manufacturing and trading of Refrigerators, Washing
Machines, Air Conditioners, Microwave Ovens and small appliances and caters to
both domestic and international markets. It also provides services in the area
of product development, information technology, accounting and procurement
services to Whirlpool Corporation, USA and other group companies.
CONTINGENT LIABILITIES (As on March 31, 2011)
(a) Claims against
the Company not acknowledged as debts – Rs.124.752 Millions
These claims are
in respect of various cases filed by the ex-employees and consumers. It has
been estimated that the liability arising on the Company should the actions be
successful is Rs.124.752 Millions.
The legal proceedings are going on and therefore it is not practicable to state
the timing of any payment. The management is of the opinion that it is
possible, but not probable, that the action will succeed and accordingly no
provision for any liability has been made in these financial statements.
(b) Others:-
- On account of pending appeals of Excise Duty and Service Tax – Rs.358.646 Millions
- On account of pending appeals of Custom Duty – Rs.30.563 Millions
- On account of pending appeals of Sales Tax assessments – Rs.165.085 Millions
FIXED ASSETS
·
Land Freehold
·
Land Leasehold
·
Leasehold Improvement
·
Buildings
·
Plant and Machinery
·
Furniture, Fixture and
Office Equipment
·
Vehicles
BUSINESS DESCRIPTION
Subject is a manufacturer of home appliances. The Company is
primarily engaged in manufacturing and trading of refrigerators, washing
machines, air conditioners, microwave ovens and small appliances. It caters to
both domestic and international markets. It also provides services in the area
of product development, information technology, accounting and procurement
services to Whirlpool Corporation, the United States and other related
companies. It operates in two geographical segments: sales within India, which
represents sales made to customers located within India, and sales outside
India, which represents sales made to customers located outside India. During
the fiscal year ended March 31, 2011, the Company produced 1,883,409 units of
refrigerators, 561,945 units of washing machines and 18,563 units of air
conditioners. As of March 31, 2011, the Company operated 70 Whirlpool Brand
Shops. For the nine months ended 31 December 2010, Whirlpool of India Limited's
revenues increased 27% to RS21.04B. Net income increased 36% to RS1.19B.
Revenues reflect an increase in income from operations, higher other income and
a raise in income from other operating income. Net income also reflects a
decrease in interest expenses and higher gross and operating profit margins.
The Company is an India based Company.
MORE BUSINESS DESCRIPTION
Whirlpool Corporation (USA) is a global manufacturing and marketing company of major home appliances, with manufacturing and technology centres worldwide. Manufacturing operations and marketing activities are located in North and South America, Europe and Asia. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht, Consul and other major brand names to consumers in more than 170 countries. The Whirlpool Corporation also is a significant supplier to Sears Holdings Corp, which owns and controls the Kenmore brand name.
Board of Directors
Arvind Uppal
(Executive Chairman of the Board, Managing Director)
Mr. Arvind Uppal is Executive Chairman of the Board, Managing Director of subject. Mr. Arvind Uppal is a B.Tech from IIT Delhi and is a post graduate in Management from the Faculty of Management Studies, Delhi. He has over 22 years of experience in business development, International marketing and General management. Prior to joining Whirlpool he was with Nestle in India and overseas. He is a Director in Tuscan Ventures Private Limited.
Anil Berera (Whole
Time Director)
Mr. Anil Berera has been appointed as Whole Time Director of subject, effective November 03, 2011. He was previously working as Regional Finance Director - India and South Asia at Gillette India and as Chief Financial Officer with Avon.
Anand Narain Bhatia
(Non-Executive Independent Director)
Mr. Anand Bhatia is Non-Executive Independent Director of subject. He is an Economics graduate from Cambridge University (U.K). He has over 30 years of working experience at senior level with Unilever plc worldwide. Currently he is a director in EID Parry (India) Limited., HGS Pvt Limited, Sowar Private Limited
Simon James Scarff
(Non-Executive Independent Director)
Mr. Simon James Scarff is Non-Executive Independent Director of
subject. He
is the Non-Executive Director and Chairman of GlaxoSmithKline Consumer
Healthcare Limited. He worked for over 23 years with Smithkline with specific
reference to Marketing. In 1999 he was awarded the prestigious honour of the
Officer of the Order of the British Empire by Her Majesty, The Queen of
England.
Sanjiv Verma (Non-Executive
Independent Director)
Mr. Sanjiv Verma is Non-Executive Independent Director of subject. Mr. Verma is an Engineering Graduate from Indian Institute of Technology (IIT). He has over 25 years of experience working in various leadership positions. His last assignment was as General Manager India and SEA, and Managing Director Baxter India. He is a Director of Bengal Aerotropolis Private Limited and J. V. D. Health Private Limited He is Founder Trustee of Chronic Health Care Foundation of India. He along with him brings his key strengths in Strategic thinking and influencing skills for business growth and profitability, Business Leadership skills, Analytical capabilities, People Management in a multicultural, multinational environment.
PRESS RELEASES
INDIA'S
CEAMA ANNOUNCES APPOINTMENT OF NEW PRESIDENT
New
Delhi, December 9 Asia Pulse - Consumer Electronics and Appliances Association
(CEAMA) of India has announced the appointment of Videocon (BSE:511389)
Director Anirudh V Dhoot as its new President.
The
industry body, which represents consumer durables firms in India, said Dhoot
will replace Y V Verma, who is currently the Chief Operating Officer of LG
Electronics India.
"In
order to see augmentation in the industry, every function of various government
bodies has to work in partnership for desired growth ... I will continue to
garner support from all members, as well as, the government and highlight
relevant industry issues at appropriate forums and times," Dhoot said.
CEAMA
has felicitated Samsung Electronics (KSE:005930) President and CEO South West
Asia Jung Soo Shin as the 'Man of Electronics' and Whirlpool of India Chairman
and Managing Director Arvind Uppal with the 'Man of Appliances award'.
RESEARCH IN MOTION
APPOINTS SUNIL DUTT AS INDIA MD
New
Delhi, December 8 Asia Pulse - BlackBerry-maker Research in Motion on Tuesday
announced the appointment of Sunil Dutt as its Managing Director for India.
Dutt
is an industry veteran with 27 years of extensive experience in the Indian
mobile technology and telecom sector.
"Dutt
brings a wealth of experience to RIM. His strong managerial and communication
skills, as well as an institutional understanding of the technology and telecom
sector, will be instrumental in driving the next stage of our business' growth
in India," said Urpo Karjalainen, Senior Vice - President (APAC) for
Research In Motion.
Until
recently, Dutt worked for Hewlett Packard India Sales Pte Limited as President,
Personal Systems Group, and was responsible for expanding their business in the
enterprise, mid-market and consumer space.
Prior
to that, Dutt worked in senior positions for companies like Samsung India
Electronics Limited, Nokia India Pte Limited, Whirlpool of India Limited, Wipro
Limited and Philips India.
CEAMA appoints Videocon's
Anirudh Dhoot as President
New Delhi, December 07, 2011 (PTI) -- Consumer Electronics and Appliances Association (CEAMA) of India today announced appointment of Videocon Director Anirudh V Dhoot as its new President.
The
industry body, which represents consumer durables firms in India, said Dhoot
will replace Y V Verma, who is currently the Chief Operating Officer of LG
Electronics India.
"In
order to see augmentation in the industry, every function of various government
bodies has to work in partnership for desired growth ... I will continue to
garner support from all members, as well as, the government and highlight
relevant industry issues at appropriate forums and times," Dhoot said.
CEAMA
has felicitated Samsung Electronics President and CEO South West Asia Jung Soo
Shin as the 'Man of Electronics' and Whirlpool of India Chairman and Managing
Director Arvind Uppal with the 'Man of Appliances award'.
Sunil Dutt appointed RIM managing director for India
New Delhi, December 6 -- Canadian BlackBerry maker Research in Motion (RIM) Tuesday said it has appointed Sunil Dutt, who has worked with Hewlett Packard India and Samsung India Electronics, as its managing director for India operations.
The
decision came after Frenny Bawa quit last month.
"Dutt
brings a wealth of experience to RIM," said Urpo Karjalainen, senior vice
president Asia-Pacific for RIM.
"His
strong managerial and communication skills as well as an institutional
understanding of the technology and telecom sector will be instrumental in
driving the next stage of our business's growth in India," he added.
Dutt
is an industry veteran with 27 years of extensive experience in the Indian
mobile technology and telecom sector.
Earlier,
he worked for Hewlett Packard India sales as president, personal systems group
and was responsible for expanding their business in enterprise, mid-market and
consumer space.
Prior
to that, Sunil worked in senior positions for companies like Samsung India
Electronics, Nokia India, Whirlpool of India, Wipro Limited and Philips India.
India
has over one million BlackBerry users.
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.49.85 |
|
|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
TOTAL |
|
54 |
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.