1. Summary Information
|
Reference
# |
135-221333-04-020(20120315418) |
Country |
|
|
Company Name |
PROCTER AND GAMBLE HYGIENE AND HEALTH CARE LIMITED |
Principal Name 1 |
Mr. R A Shah |
|
Status |
Good |
Principal Name 2 |
Mr. S Khosla |
|
Our Reference # |
173568 |
Registration # |
11-012971 |
|
Street Address |
P and G Plaza, |
||
|
Established Date |
20.07.1964 |
SIC Code |
-- |
|
Telephone# |
91-22-28266000 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-66939696 |
Business Style 2 |
Market Health Care and Feminine Hygiene Products |
|
Homepage |
Product Name 1 |
Feminine Hygiene Products |
|
|
# of employees |
370
(Approximately) |
Product Name 2 |
Ointment |
|
Paid up capital |
Rs.324,607,360
/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and Promoter Group – 70.64% Public Shareholding –
29.36% |
Banking |
|
|
Public Limited Corp. |
Yes |
Business Period |
48 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A
(63) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company |
|
Procter and Gamble |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.06.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
6,143,330,000 |
Current Liabilities |
2,742,433,000 |
|
Inventories |
653,344,000 |
Long-term Liabilities |
-- |
|
Fixed Assets |
1,903,812,000 |
Other Liabilities |
28,102,000 |
|
Deferred Assets |
-- |
Total Liabilities |
2,770,535,000 |
|
Invest& other Assets |
76,357,000 |
Retained Earnings |
5,681,701,000 |
|
|
|
Net Worth |
6,006,308,000 |
|
Total Assets |
8,776,843,000 |
Total Liab. & Equity |
8,776,843,000 |
|
Total Assets (Previous Year) |
8,268,454,000 |
|
|
|
P/L Statement as of |
30.06.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
10,002,531,000 |
Net Profit |
1,508,763,000 |
|
Sales(Previous yr) |
9,028,677,000 |
Net Profit(Prev.yr) |
2,336,244,000 |
MIRA
INFORM REPORT
|
Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
PROCTER AND GAMBLE HYGIENE AND HEALTH CARE LIMITED |
|
|
|
|
Registered
Office : |
P and G Plaza, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.06.2011 |
|
|
|
|
Date of
Incorporation : |
20.07.1964 |
|
|
|
|
Com. Reg. No.: |
11-012971 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.324.607 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24239MH1964PLC012971 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP10705C |
|
|
|
|
Legal Form : |
A Public limited liability company. The Company's shares are listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Market Health Care and Feminine Hygiene Products |
|
|
|
|
No. of Employees
: |
370 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 24000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a poor of Global P and G Group. Available information indicated high financial responsibility of the
company. Trade relations are fair. Financial position is the company is strong.
Payments are correct and as per commitments. The company is doing of very well. It can be considered good for normal 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 : |
P and G Plaza, |
|
Tel. No.: |
91-22-28266000 |
|
Fax No.: |
91-22-66939696 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
173, 314, 315, Kundaim Industrial Estate, Kundaim-40311, |
|
|
|
|
Factory 2 : |
Plot 2, GDDIDC Honda, Bhuipal, Sattari - 403506, |
|
|
|
|
|
|
|
Factory 3 : |
Khasara No. 1808-09, Village- Doria, Export Park, Thana, Near Ino Pharma,
P.O. Baddi, Tehsil-Nalagarh, District Solan-173205, Himachal Pradesh, India |
|
|
|
|
Factory 4 : |
Village Katha, Near Charak Pharma, P.O. Baddi, Tehsil-Nalagarh,
Solan-173205, |
DIRECTORS
As on 30.06.2011
|
Name : |
Mr. R A Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S Khosla |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. B S Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. A. Henretta |
|
Designation : |
Director (Alternate Mr. Pramod Agarwal) |
|
|
|
|
Name : |
Mr. D.
Acharya |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A Vyas |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
619,683 |
1.91 |
|
|
619,683 |
1.91 |
|
|
|
|
|
|
22,310,990 |
68.73 |
|
|
22,310,090 |
68.73 |
|
Total
shareholding of Promoter and Promoter Group (A) |
22,929,773 |
70.64 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
2,242,294 |
6.91 |
|
|
188,788 |
0.58 |
|
|
928,335 |
2.86 |
|
|
756,085 |
2.33 |
|
|
4,115,502 |
12.68 |
|
|
|
|
|
|
879,418 |
2.71 |
|
|
|
|
|
|
3,906,052 |
12.03 |
|
|
482,198 |
1.49 |
|
|
147,793 |
0.46 |
|
|
3,354 |
0.01 |
|
|
106,020 |
0.33 |
|
|
369 |
-- |
|
|
15,384 |
0.05 |
|
|
22,657 |
0.07 |
|
|
9 |
-- |
|
|
5,415,461 |
16.68 |
|
Total
Public shareholding (B) |
9,530,963 |
29.36 |
|
Total
(A)+(B) |
32,460736 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
32,460,736 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Manufacture and Market Health Care and Feminine Hygiene Products |
||||||
|
|
|
||||||
|
Products : |
|
||||||
|
|
|
||||||
|
Brand Names : |
|
PRODUCTION STATUS (30.06.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Formulations: |
|
|
|
|
|
Ointments & Creams |
Tonnes |
3 300 |
3 300 |
1 516 |
|
Cough Drops |
Tonnes |
7 020 |
7 020 |
5 942 |
|
Liquids |
Kls |
25 |
25 |
6.71 |
|
Tablets |
Millions |
1 198 |
1 198 |
485 |
|
Personal Products, |
|
|
|
|
|
Toilet Preparations, etc |
Tonnes |
16 700 |
16 643 |
16 142 |
Notes:
- The installed capacities as at the year-end are as certified by the management
- Actual production includes production under manufacturing arrangement with third parties.
GENERAL INFORMATION
|
No. of Employees : |
370 (Approximately) |
|
|
|
|
Bankers : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Fellow Subsidiaries : |
|
|
|
|
|
Related
Party Disclosures: |
|
|
|
|
|
Ultimate Holding
Company: |
The Procter and Gamble Company, |
|
|
|
|
Holding Company: |
Procter and Gamble Asia Holding, BV, The |
CAPITAL STRUCTURE
As on 30.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32460736 |
Equity Shares |
Rs.10/- each |
Rs.324.607 millions |
|
|
|
|
|
(a) 23541242 (Previous year : 23541242) equity shares were allotted as fully paid-up bonus shares by Capitalisation of General Reserve and Securities Premium
(b) 22929773 (Previous year : 22310090) shares are held by the ultimate holding company, The Procter and Gamble Company, USA, and its subsidiaries of which 21221953 shares (Previous year : 21221953 shares) are held by Procter and Gamble Asia Holding, BV, The Netherlands.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
324.607 |
324.607 |
324.607 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5681.701 |
5021.789 |
4075.806 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6006.308 |
5346.396 |
4400.413 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
28.102 |
22.438 |
54.086 |
|
|
|
|
|
|
|
|
TOTAL |
6034.410 |
5368.834 |
4454.499 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1903.812 |
1303.933 |
1322.855 |
|
|
Capital work-in-progress |
76.357 |
664.409 |
245.148 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
653.344
|
544.062
|
539.828
|
|
|
Sundry Debtors |
310.192
|
286.814
|
225.128
|
|
|
Cash & Bank Balances |
1299.518
|
2323.271
|
880.337
|
|
|
Other Current Assets |
138.862
|
84.395
|
20.091
|
|
|
Loans & Advances |
4394.758
|
3061.570
|
3282.801
|
|
Total
Current Assets |
6796.674
|
6300.112 |
4948.185 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1717.479
|
1871.702
|
1023.100
|
|
|
Other Current Liabilities |
108.045
|
118.335
|
133.605
|
|
|
Provisions |
916.909
|
909.583
|
904.984
|
|
Total
Current Liabilities |
2742.433
|
2899.620 |
2061.689 |
|
|
Net Current Assets |
4054.241
|
3400.492
|
2886.496
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6034.410 |
5368.834 |
4454.499 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10002.531 |
9028.677 |
7728.028 |
|
|
|
Other Income |
380.250 |
302.440 |
387.274 |
|
|
|
TOTAL (A) |
10382.781 |
9331.117 |
8115.302 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
3992.149 |
3513.947 |
2984.034 |
|
|
|
Raw and Packaging Material Consumed |
2996.993 |
2382.736 |
2358.864 |
|
|
|
Purchase of Finished Goods |
905.310 |
408.445 |
6.686 |
|
|
|
Increase/(Decrease) in Finished Goods |
(6.582) |
4.663 |
(40.989) |
|
|
|
Payments to and provisions for employees |
505.682 |
434.573 |
346.419 |
|
|
|
TOTAL (B) |
8393.552 |
6744.364 |
346.419 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1989.229 |
2586.753 |
2460.288 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.260 |
0.251 |
0.005 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1988.969 |
2586.502 |
2460.283 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
221.550 |
250.258 |
143.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1767.419 |
2336.244 |
2316.583 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
258.656 |
538.590 |
528.104 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1508.763 |
1797.654 |
1788.479 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2780.928 |
2014.745 |
1259.759 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.900 |
179.800 |
179.000 |
|
|
|
Dividend |
730.367 |
730.366 |
730.366 |
|
|
|
Tax on Dividend |
118.484 |
121.305 |
124.126 |
|
|
BALANCE CARRIED
TO THE B/S |
3289.940 |
2780.928 |
2014.746 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Business process outsourcing income |
3.021 |
10.884 |
6.229 |
|
|
|
Research and Development and other cross charges |
2.371 |
2.623 |
1.916 |
|
|
|
Exports of goods calculated on f.o.b.
basis (excludes Rupee exports to |
48.070 |
96.922 |
79.913 |
|
|
|
Others (freight, insurance etc.) |
2.704 |
9.050 |
5.384 |
|
|
TOTAL EARNINGS |
56.166 |
119.479 |
93.442 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw & Packing Materials |
1034.470 |
843.882 |
939.044 |
|
|
|
Spare Parts |
16.298 |
26.315 |
27.875 |
|
|
|
Capital Goods |
85.679 |
240.292 |
90.967 |
|
|
TOTAL IMPORTS |
1136.447 |
1110.489 |
1057.886 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
46.48 |
55.38 |
55.10 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.09.2011 1st
Quarter |
31.12.2011 2nd Quarter |
|
Net Sales |
|
3020.500 |
3548.200 |
|
Total Expenditure |
|
2670.700 |
2935.700 |
|
PBIDT (Excl OI) |
|
349.800 |
612.500 |
|
Other Income |
|
127.700 |
127.400 |
|
Operating Profit |
|
477.500 |
739.900 |
|
Interest |
|
0.000 |
0.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
477.500 |
739.900 |
|
Depreciation |
|
64.300 |
65.500 |
|
Profit Before Tax |
|
413.200 |
674.400 |
|
Tax |
|
(14.600) |
162.500 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
427.800 |
511.900 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
427.800 |
511.900 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
PAT / Total Income |
(%) |
14.53
|
19.26
|
22.04
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.67
|
25.87
|
29.98
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.31
|
30.72
|
36.94
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.44
|
0.53
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.46
|
0.54
|
0.47
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.48
|
2.17
|
2.40
|
LOCAL AGENCY FURTHER INFORMATION
BUSINESS PERFORMANCE
The Company delivered strong business results during the Financial Year. The sales at Rs.10370.000 Millions are higher by 14% versus sales of Rs.9140.000 Millions in the previous Financial Year. The Healthcare business has shown sales growth of over 9% behind increased sales of Vicks Vapo Rub, Vicks Inhaler and Vicks Cough drops. Similarly, the Feminine Hygiene business also continues to grow in higher double digits with the various variants of Whisper Sanitary Napkins showing a healthy growth. Whisper has in fact increased its market share to its all time national high with growth across all major Brand forms. Overall, the Company continued to focus on driving consumer meaningful innovations backed by distribution expansion and strong advertising support thereby recording a valuable growth across all areas of business.
While the sales have grown by 14%, the Profit before Tax (PBT) and the Profit after Tax (PAT) have decreased versus previous Financial Year but they still maintain a healthy margin. This is primarily due to increased investments in marketing initiatives, higher commodity prices and impact of higher excise duty for nine months. However the Company still maintains a healthy 15% After Tax margin that will enable then to invest in category growth and defend increased competition.
Healthcare Business
Healthcare business at Rs.4140.000 Millions (vs. previous Financial Year’s Rs.3810.000 Millions) posted a growth of 9% this Financial Year across Vicks Vapo Rub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler thereby consolidating the market leadership in its respective categories. This was driven by focused spending on key business drivers and increased spending on proven equity building advertising.
The Vicks Cough Drops business had an excellent Year, with the brand growing at 18%. The growth was driven by increased investment on proven advertising and driving awareness of flavors by using other relevant touch points for the Brand like radio and wall-painting, which increased consumption further. Given the passion for cricket among its consumers, the Brand also executed a first ever cricket focused program with the launch of ‘Vicks Cricket Jockey Hunt’ spread over 16 top cities in the Country.
Vicks Inhaler shipments grew impressively driven by increased demand in the category and improved supply.
Vicks Vapo Rub had a continued strong volume growth driven by continued focus on the successful ‘blanket of warmth’ advertising via augmented media spend and on There ongoing strategy of upsizing consumers to drive consumption
Vicks Action-500 faced aggressive competitive challenge from generics during the Financial Year. During the second half of the Financial Year, the Company invested in superior advertising support for the product. This helped to recover demand for the product, with exit market share higher compared to previous Financial Year. They will however continue promoting the benefits of the product and expanding its distribution to ensure a good growth of Vicks Action 500 in the Financial Year ahead.
Vicks will continue to innovate to ensure it stays the most
trusted cough and cold care Brand in
Feminine Hygiene
Business
Feminine Hygiene business recorded yet another Year of high growth, with sales at Rs.6230.000 Millions (vs. previous Financial Year’s Rs.5320.000 Millions) translating to a growth of over 17%. Whisper has increased its market share with growth across all major Brand forms. Whisper Choice reached its all time high share overtaking competition to become the largest mid tier Brand form. This growth is driven, both, by increase in penetration among non-users and consumption among users.
During the Financial Year, a number of initiatives were designed to win with the consumers’ needs across segment.
The top tier consumers were delighted by the “10X Clean/Dry Protection” and the addition of scent to the pad promised by top tier Whisper Ultra. In order to reach more consumers with there product offering, by addressing their biggest barrier of affordability, Whisper Choice was priced down. The price down was supported by new communication above the line which increased awareness and massive distribution drives to ensure availability.
As a result, Whisper Choice has become the largest distributed Brand form in the market.
The Company continued its disproportionate focus on the Point of Market Entry consumer. The Whisper school program reached a total of 2.5 million menstruating girls across private and government schools. At the same time, by constantly innovating to meet the consumers’ needs, Whisper ensured that the top-tier Brand was sampled in the more urban schools, and the more economical mid-tier Choice Ultra in the upcountry schools. As opposed to Whisper Choice last Financial Year, the better product in the mid tier line up – Choice Ultra was sampled free to government school consumers. Not only did the program reach out to more potential consumers, but it also increased its depth by reaching out to lower class towns.
MANAGEMENT DISCUSSION
AND ANALYSIS
Review of Economic
Scenario and impact of Union Budget 2011
The Economic Survey 2010-11 presented by the Hon’ble Finance Minister to the Parliament states that the Indian economy has emerged with remarkable rapidity from the slowdown caused by the global financial crises of 2007-09. The survey further states that notwithstanding the tightening of money markets and moderate growth in deposits, the financial situation remained orderly with a pick up in credit growth, vibrant equity market and stable foreign exchange market. The survey further states that though the down side risks of global events, particularly movement in prices of commodities like crude oil (exacerbated by the political turmoil in the Middle East), remain, the Indian economy is poised to further improve and consolidate in terms of key macroeconomic indicators.
The Union Budget 2011-12 was presented admist generally optimistic growth outlook with notable improvements in private savings and investment rates, as well as a resumption of private consumption demand. While highlighting the strong and robust performance of the economy, the Finance Minister struck a tone of caution with respect to a number of challenges that the economy currently faces. Foremost amongst all was the trend of inflation that originated with supply bottlenecks but has become more generalized in recent times. Overall, the policy prescriptions outlined in the budget sends a signal that the general direction, in which the economy is headed, is on course to deliver high growth and therefore does not warrant any significant course correction.
Monsoon does play an important role on the economy of a
Country like
The FMCG Sector and
Indian consumers
Performance Overview
and Outlook
The Company operates in a single reportable business and
geographical segment. The Company’s core business is manufacturing, marketing
and distribution of Healthcare and Feminine Hygiene products. Under these
businesses it has in its portfolio: VICKS –
Healthcare Business
Healthcare business at Rs.4140.000 Millions (vs. previous Financial Year’s Rs.3810.000 Millions) posted a growth of 9% this Financial Year across Vicks Vapo Rub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler thereby consolidating the market leadership in its respective categories. This was driven by focused spending on key business drivers and increased spending on proven equity building advertising.
The Vicks Cough Drops business had an excellent Year, with the brand growing at 18%. The growth was driven by increased investment on proven advertising and driving awareness of flavors by using other relevant touch points for the Brand like radio and wall-painting, which increased consumption further. Given the passion for cricket among its consumers, the Brand also executed a first ever cricket focused program with the launch of ‘Vicks Cricket Jockey Hunt’ spread over 16 top cities in the Country.
Vicks Inhaler shipments grew impressively driven by increased demand in the category and improved supply.
Vicks Vapo Rub had a continued strong volume growth driven by continued focus on the successful ‘blanket of warmth’ advertising via augmented media spend and on there ongoing strategy of upsizing consumers to drive consumption.
Vicks Action-500 faced aggressive competitive challenge from
generics during the Financial Year. During the second half of the Financial
Year, the Company invested in superior advertising support for the product.
This helped to recover demand for the product, with exit market share which was
higher compared to previous Financial Year. They will however continue
promoting the benefits of the product and expanding its distribution to ensure
a good growth of Vicks Action 500 in the Financial Year ahead. Vicks will
continue to innovate to ensure it stays the most trusted cough and cold care
Brand in
Feminine Hygiene
Business
Feminine Hygiene business recorded yet another Year of high growth, with sales at Rs.6230.000 Millions (vs. previous Financial Year’s Rs.5320.000 Millions) translating to a growth of over 17%. Whisper has increased its market share with growth across all major Brand forms Whisper Choice reached its all time high share overtaking competition to become the largest mid tier Brand form. This growth is driven, both, by increase in penetration among non-users and consumption among users.
During the Financial Year, a number of initiatives were designed to win with the consumers’ needs across segment.
The top tier consumers were delighted by the “10X Clean/ Dry Protection” and the addition of scent to the pad promised by top tier Whisper Ultra. In order to reach more consumers with there product offering, by addressing their biggest barrier of affordability, Whisper Choice was priced down. The price down was supported by new communication above the line which increased awareness and massive distribution drives to ensure availability. As a result, Whisper Choice has become the largest distributed Brand form in the market.
The Company continued its disproportionate focus on the Point of Market Entry consumer. The Whisper school program reached a total of 2.5 million menstruating girls across private and government schools. At the same time, by constantly innovating to meet the consumers’ needs, Whisper ensured that the top-tier Brand was sampled in the more urban schools, and the more economical mid-tier Choice Ultra in the upcountry schools. As opposed to Whisper Choice last Financial Year, the better product in the mid tier line up – Choice Ultra was sampled free to government school consumers. Not only did the program reach out to more potential consumers, but it also increased its depth by reaching out to lower class towns.
FIXED ASSETS
·
Land
- Freehold
·
Land
- Leasehold
·
Buildings
·
Plant
and Machinery
·
Furniture
and fixtures
·
Office
equipment
·
Moulds
and Dies
·
Vehicles
WEB DETAILS
Profile
Subject is one of
Subject takes pride in being voted
History:
In historical terms Procter and Gamble's relationship with India dates back to when Vicks Product Inc. India, a branch of Vicks Product Inc. USA established in 1951, was engaged in the manufacture (under loan license) and sale of what is today India's Number One Health Care brand - the famous range of VICKS products.
In 1964, a public limited company, Richardson Hindustan Limited (RHL) is formed which obtains an Industrial License to undertake manufacture of Menthol and de mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler.
In May 1967,
RHL introduces CLEARASIL, then
In 1979, RHL launches VICKS ACTION 500. It also commenced campus recruitment in this year and began recruitment from IIM campuses as Day I recruiters.
In 1984, RHL sets up an Ayurvedic Research Laboratory. This is in keeping with the Company's mission of delivering products of superior quality to address the common ailments of the people such as cough and colds.
In October 1985,
after RHL becomes an affiliate of The Procter and Gamble Company,
In 1989,
Procter and Gamble
In 1991,
Procter and Gamble
In 1992, The
Procter and Gamble Company, then increases its stake in Procter and Gamble
In 1993,
Procter and Gamble
In 1996, Goa Honda Factory starts its operations, manufacturing Vicks Vaporub.
In 1998, Goa Kundiam Factory starts its operations, manufacturing Whisper pads.
In 1999 Procter and Gamble India Limited changed the name of the Company to Procter and Gamble Hygiene and Health Care Limited.
In the same year Mediker Shampoo business is divested to Marico Industries.
In 2000,
Procter and Gamble Hygiene and Health Care Limited introduced Whisper Ultra - a
revolutionary and unique product in the history of menstrual products in
In August 2000, Subject launched Vicks Plus Medicated Lozenges, a product that provides medicinal relief from sore throat. The uniqueness of Vicks Plus Medicated Lozenges lies in its anti-bacterial ingredient CPC (Cetylpyridinium Chloride), which actually provides medicinal relief from a sore throat.
In August 2000, Vicks Action 500+ was relaunched in an attractive True Blue pack. The change from green to blue packaging brings Vicks Action 500 + in line with the new global packaging colours used for the Vicks range of products worldwide.
In April 2001, Procter and Gamble Hygiene and Health Care Limited reduced the prices of Whisper Ultra from Rs.80 to Rs.65 for a pack of ten, making it affordable to Indian consumers.
In May 2002, Whisper announced a unique knowledge sharing initiative for women – The Whisper Diary of Secrets. The Whisper Diary of Secrets is a full-color 48-page, booklet designed to provide the new age woman with information that she seeks on feminine hygiene, health and beauty.
In August 2002, Procter and Gamble Hygiene and Health Care Limited announced the launch of Whisper “Money Back” offer, which offers consumers a chance to experience Whisper’s superior performance, helping them forget the wetness; and if they are not satisfied, they get their money back.
In June 2002,
Procter and Gamble Hygiene and Health Care Limited announced the launch of New
Improved Vicks VapoRub –
In July 2002, Procter and Gamble announced the launch of Vicks Action500+ Night tablets, a specially designed cold medicine that gives consumers multi-symptom relief from bothersome cold symptoms like headache and breathing difficulty, hence allowing restful sleep at night.
In October 2002,
In October 2003, Subject launched New Vicks Formula 44 Cough Syrup which uniquely provides safe, effective and long lasting relief for up to eight hours from tough persistent coughs due to colds, as compared to four-hour relief provided by a single dose of most popular cough syrup brands.
In May 2004, Subject they commenced test marketing an economically priced and competitively superior performing, WHISPER Choice pads in the southern states of Karnataka, Tamil Nadu, Andhra Pradesh and Kerala. At an affordable introductory price of Rs.26 for ten pads, WHISPER Choice provides three distinct benefits: 1) superior protection vs. other pads in its price range; 2) With its unique dri-weave top sheet it provides one tenth the wetness of ordinary (non woven) top sheet pads and 3) double adhesive coverage to ensure that the pad stays in place much better than ordinary pads.
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.50.59 |
|
|
1 |
Rs.80.34 |
|
Euro |
1 |
Rs.67.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.