MIRA INFORM REPORT
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Report Date : |
03.09.2013 |
IDENTIFICATION DETAILS
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Name : |
JOHN DISTILLERIES PRIVATE LIMITED (w.e.f. 01.12.2010) |
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Formerly Known
As : |
JOHN DISTILLERIES LIMITED |
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Registered
Office : |
110, Panthrapalya, Mysore Road, Bangalore – 560039, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
19.09.1996 |
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Com. Reg. No.: |
08-021158 |
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Capital
Investment / Paid-up Capital : |
Rs. 728.124 Millions |
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CIN No.: [Company Identification
No.] |
U51228KA1996PTC021158 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRJ00513C |
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PAN No.: [Permanent Account No.] |
AAACJ4322P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of distillation, packaging,
distribution, marketing and sale of Indian Liquor. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
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MIRA’s Rating : |
B (36) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 3900000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. The
company has tight liquidity position and delay in commercializing its unit. The rating also take into consideration the external borrowing and fluctuation
in raw material prices. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for
business dealings with slight caution.
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term bank facilities: BB+ |
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Rating Explanation |
Having moderate risk of default regarding timely servicing of
financial obligation. |
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Date |
August 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management Non – Cooperative (91-80-28600630)
LOCATIONS
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Registered Office / Head Office
/ Factory 1 : |
110, Panthrapalya, Mysore Road, Bangalore – 560039, Karnataka, India |
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Tel. No.: |
91-80-28600630 / 33723000 |
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Fax No.: |
91-80-28600489 |
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E-Mail : |
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Website : |
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Mumbai Office : |
215 Atrium, 520 C, Andheri Kurla Road, Andheri East, Mumbai – 400059, Maharashtra, India |
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Tel. No.: |
91-22-67488700 / 01 |
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Fax No.: |
91-22-67488777 |
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Factory 2: |
M 21, Cuncloim Industrial Estate, Cuncolim, Margoa – 403 703, Goa, India |
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Factory 3: |
No. 72 and 53, Phase II Industrial Growth Centre Siltara, Raipur District – 493 111, Chhattisgarh, India |
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Factory 4: |
Village Chitali, Taluka Rahata, Ahmednagar District, Maharashtra, India |
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TIE – UP UNITS: |
Ravi Kumar Distilleries Limited No. 89/4A, Katterikuppam Village, Mannadipet Commune, Pondicherry – 605 502, India M/s Diamond Bottling Plant Company Village - Boldi, PO - Dishergarh Via - Neamatpur/Barakar District – Burdwan – 713333, West Bengal, India M/s Goodhost Liquors Private Limited Karmali Chak, Bye Pass Road, Begampur, Patna – 800009, Bihar, India VRV Foods Limited Plot No. 2, Phase III, Sansarpur Terrace, Kangara District, Himachal Pradesh, India Rana Sugar Limited S.C.O. 49-50, Sector 8-C, Madhura Marg, Chandigarh – 160009, India M/s Gemini Distilleries (JKD) Private Limited Plot No. 4 and 5, Industrial Area, Phase-II, Tatisilwai Ranchi - -835103, Jharkhand, India |
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LEASE UNITS: |
Aroma Winery and Distillery, A-8, Sanath Nagar Industrial Estate Sanath Nagar, Hyderabad - – 500 018, Andhra Pradesh, Soaring Spirits Private Limited G9, Emerald Amrutha Hills, Hyderabad, Andhra Pradesh, India Indian Cane Power Limited Duggavati Village, Harapanchalli Taluk, Davangere District, Karnataka, India Ashoka Distillers and Chemicals Private Limited Tehsil Hathin Dist, Palwal, Haryana, India |
DIRECTORS
As on 17.07.2012
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Name : |
Mr. Paul Plathotathil John |
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Designation : |
Managing Director |
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Address : |
17/5, Brunton Road, Bangalore – 560025, Karnataka, India |
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Date of Birth/Age : |
30.09.1965 |
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Date of Appointment : |
01.04.2013 |
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DIN No.: |
00012851 |
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Other
Directorship:
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Name : |
Mr. Krishnan Neelakantan Namboodiri |
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Designation : |
Managing Director |
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Address : |
479-C, 15th Loop Road, Rajeswari Nagar, Bangalore – 560098, Karnataka, India |
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Date of Birth/Age : |
21.08.1952 |
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Date of Appointment : |
01.04.2013 |
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DIN No.: |
00515059 |
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Other
Directorship:
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Name : |
Mr. Sridhar Pongur |
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Designation : |
Whole-Time Director and Chief Operation Officer |
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Address : |
No. 97, 60 Feet Road, Ideal Home Township, Rajarajeswari Nagar, Bangalore – 560098, Karnataka, India |
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Date of Birth/Age : |
10.06.1965 |
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Date of Appointment : |
21.07.2008 |
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DIN No.: |
02154497 |
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Other
Directorship:
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Name : |
Mr. Ranjit Jayantilal Shah |
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Designation : |
Nominee Director |
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Address : |
20, 2nd Floor, C.C.I. Chambers, Dinshaw Wachha Road, Mumbai, 400020, Maharashtra, India |
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Date of Birth/Age : |
30.05.1958 |
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Date of Appointment : |
23.04.2011 |
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DIN No.: |
00088405 |
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Other
Directorship:
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KEY EXECUTIVES
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Name : |
Mr. Madhusudhan Papakannu |
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Designation : |
Secretary |
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Address : |
No. 18, 18th Cross, 20th 'B' Main, Kaveri Road, Sms
Layout, Bangalore – 560078, Karnataka, India |
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Date of Birth/Age : |
07.05.1976 |
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Date of Appointment : |
07.08.2008 |
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PAN No.: |
BEVPS3761L |
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BOARD COMMITTEES: |
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AUDIT COMMITTEE: |
Ranjit J. Shah Paul P. John Krishnan N. Sridhar Pongur |
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REMUNERATION COMMITTEE: |
Ranjit J. Shah Paul P. John Sridhar Pongur |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 17.07.2012
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Names of Shareholders (Equity Shares) |
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No. of Shares |
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Paul Plathotathil John |
|
22812832 |
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Krishnan Neelakantan Namboodiri |
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1 |
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Gpe (India) Limited, Mauritius |
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80 |
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Gaja Trustee Company Private Limited, India |
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20 |
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Total |
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22812933 |
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Names of Shareholders (Preference
Shares) |
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No. of Shares |
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Gpe (India) Limited, Mauritius |
|
388050 |
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Gaja Trustee Company Private Limited, India |
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111945 |
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Total |
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499995 |
As on 19.03.2013
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Names of Allottees (Compulsorily Convertible Preference Shares) |
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No. of Shares |
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Gpe (India) Limited, Mauritius |
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122561 |
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Total |
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122561 |
As on 19.03.2013
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Names of Allottees (Optionally Convertible Preference Shares) |
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No. of Shares |
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Gaja Trustee Company Private Limited, India |
|
27439 |
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Total |
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27439 |
As on 28.03.2013
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Names of Allottees (Compulsorily Convertible Preference Shares) |
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No. of Shares |
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Gpe (India) Limited, Mauritius |
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81707 |
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Total |
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81707 |
As on 28.03.2013
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Names of Allottees (Optionally Convertible Preference Shares) |
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No. of Shares |
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Gaja Trustee Company Private Limited, India |
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18293 |
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Total |
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18293 |
Equity Share Break up (Percentage of Total Equity)
As on 17.07.2012
|
Category |
Percentage |
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Directors or relatives of Directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of distillation, packaging,
distribution, marketing and sale of Indian Liquor. |
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Products / Services : |
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GENERAL INFORMATION
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Financial
Institutions: |
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Auditors : |
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Name : |
B S R R and Company Chartered Accountants |
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Address : |
Maruthi InfoTech Centre, 11 12/1, Inner Ring Road, Bangalore - 560071, Karnataka, India |
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PAN N Income-tax PAN of auditor or auditor's firm : |
AAKFB1884H |
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Subsidiary companies: |
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Fellow subsidiaries: |
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CAPITAL STRUCTURE
AFTER 17.07.2012
Authorised Capital : Rs. 1049.995 Millions
Issued, Subscribed & Paid-up Capital : Rs.978.124
Millions
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
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|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
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499995 |
Preference Shares |
Rs. 1000/- each |
Rs.499.995 Millions |
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Total |
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Rs.799.995
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22812933 |
Equity Shares |
Rs.10/- each |
Rs.228.129
Millions |
|
499995 |
Preference Shares |
Rs. 1000/- each |
Rs.499.995
Millions |
|
|
Total |
|
Rs.728.124 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
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I.
EQUITY
AND LIABILITIES |
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(1)Shareholders' Funds |
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(a) Share Capital |
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728.124 |
728.124 |
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(b) Reserves & Surplus |
|
240.191 |
165.812 |
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(c) Money
received against share warrants |
|
0.000 |
0.000 |
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(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
|
968.315 |
893.936 |
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(3)
Non-Current Liabilities |
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(a) long-term borrowings |
|
167.081 |
247.543 |
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(b) Deferred tax liabilities (Net) |
|
10.741 |
8.999 |
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(c) Other long term
liabilities |
|
0.000 |
0.000 |
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(d) long-term
provisions |
|
12.227 |
18.008 |
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Total Non-current
Liabilities (3) |
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190.049 |
274.550 |
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(4)
Current Liabilities |
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|
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(a) Short
term borrowings |
|
1038.768 |
962.956 |
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(b) Trade
payables |
|
213.205 |
171.446 |
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(c) Other
current liabilities |
|
548.230 |
486.797 |
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(d) Short-term
provisions |
|
28.240 |
35.444 |
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Total Current
Liabilities (4) |
|
1828.443 |
1656.643 |
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TOTAL |
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2986.807 |
2825.129 |
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II.
ASSETS |
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|
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(1)
Non-current assets |
|
|
|
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(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
1136.436 |
1122.859 |
|
(ii)
Intangible Assets |
|
2.279 |
2.336 |
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(iii)
Capital work-in-progress |
|
306.767 |
206.824 |
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(iv)
Intangible assets under development |
|
2.855 |
1.429 |
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(b) Non-current Investments |
|
0.796 |
0.796 |
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(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
111.771 |
92.551 |
|
(e) Other
Non-current assets |
|
14.856 |
6.299 |
|
Total Non-Current
Assets |
|
1575.760 |
1433.094 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.093 |
50.103 |
|
(b)
Inventories |
|
700.145 |
554.265 |
|
(c) Trade
receivables |
|
388.840 |
392.576 |
|
(d) Cash
and cash equivalents |
|
28.129 |
69.989 |
|
(e)
Short-term loans and advances |
|
201.093 |
225.297 |
|
(f) Other
current assets |
|
92.747 |
99.805 |
|
Total
Current Assets |
|
1411.047 |
1392.035 |
|
|
|
|
|
|
TOTAL |
|
2986.807 |
2825.129 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
228.128 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
236.010 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
464.138 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1275.817 |
|
|
2] Unsecured Loans |
|
|
408.271 |
|
|
TOTAL BORROWING |
|
|
1684.088 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2148.226 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
606.949 |
|
|
Capital work-in-progress |
|
|
2.219 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
287.632 |
|
|
DEFERREX TAX ASSETS |
|
|
42.601 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
544.357 |
|
|
Sundry Debtors |
|
|
639.954 |
|
|
Cash & Bank Balances |
|
|
22.959 |
|
|
Other Current Assets |
|
|
224.970 |
|
|
Loans & Advances |
|
|
411.175 |
|
Total
Current Assets |
|
|
1843.415 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
272.773 |
|
|
Other Current Liabilities |
|
|
359.475 |
|
|
Provisions |
|
|
2.342 |
|
Total
Current Liabilities |
|
|
634.590 |
|
|
Net Current Assets |
|
|
1208.825 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2148.226 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4735.623 |
4373.692 |
|
|
|
|
Other operating income |
57.688 |
60.544 |
|
|
|
|
Other Income |
63.678 |
25.322 |
|
|
|
|
TOTAL (A) |
4856.989 |
4459.558 |
4516.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3466.859 |
3124.835 |
|
|
|
|
Purchase of traded goods |
0.000 |
9.954 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress |
(132.613) |
(14.560) |
|
|
|
|
Employee benefits expense |
297.455 |
269.563 |
|
|
|
|
Other expenses |
779.383 |
727.054 |
|
|
|
|
TOTAL (B) |
4411.084 |
4116.846 |
4502.500 (Including
Financial Expenses and Depreciation) |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
445.905 |
342.712 |
|
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
245.725 |
239.406 |
|
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
200.180 |
103.306 |
|
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
88.332 |
76.242 |
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
111.848 |
27.064 |
13.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
37.464 |
5.021 |
4.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
74.384 |
22.043 |
9.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
156.015 |
110.331 |
67.130 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.866 |
1.330 |
0.403 |
|
|
|
Components and spares |
0.020 |
0.067 |
0.015 |
|
|
|
Capital Goods |
3.730 |
6.017 |
2.849 |
|
|
TOTAL IMPORTS |
4.616 |
7.414 |
3.267 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.26 |
0.97 |
0.42 |
|
|
|
Diluted |
3.20 |
0.95 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.53
|
0.49 |
0.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.36
|
0.62 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.18
|
1.03 |
0.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.03 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.25
|
1.35 |
3.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.77
|
0.84 |
2.90 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
Note: Registered office of the company has been
shifted from 17/1, Campbell Road, Austin Town, Bangalore – 560047, Karnataka,
India to the present address w.e.f 01.03.2008
PERFORMANCE OF THE COMPANY:
During the year the Company’s
strategy was to improve the
realization through premiumsation, better pricing,
process efficiency improvement and cost management.
As a part of this strategy company has taken price increase in Karnataka, CSD and export business. The Company has introduced new brands in South markets and also increased the volumes in export business.
Also company has taken effective steps to control the bottle breakage by introducing online bottle supplies in major markets like Karnataka and Andhra Pradesh, which also resulted in optimum utilization of second hand bottles.
The rate of Extra Neutral Alcohol (ENA) which constitutes 45% of cost of raw materials witnessed a 6% jump which has impacted the margins.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY OVERVIEW
The Alcoholic
Beverages Industry comprises mainly of Spirits, Beer and Wine. Indian alcoholic
beverages market is skewed in favor of strong spirits with IMFL being the
dominant category as compared to the global market where beer is the distinct
preference. Contrary to international trends, India continues to remain a
Browns’ market with whisky, rum and brandy being the dominant flavors. India is the third largest spirits market in
the world after China and Russia.
The Indian liquor
industry comprises IMFL, foreign liquor bottled in India (BII), foreign liquor
bottled in origin (BIO) country liquor, beer and wine segments. IMFL segment primarily includes molasses‐based whiskey, rum, brand, gin and vodka. This
segment is dominated by whisky, which accounts for about 60% of its volumes,
followed by rum at about 25%.
The Indian Branded
Spirits Industry was around 270 million cases in Fiscal year 2010‐11.The Indian liquor mark is concentrated in the
southern part of the country, with this region accounting for about 60% of
total IMFL sales. Andhra Pradesh is the largest consumer, while Karnataka and
Maharashtra are the second and third largest consumers of IMFL respectively.
The IMFL segment
has demonstrated a healthy CAGR of about 8‐10% over the last
three to four years. But the growth has not been uniform across different price
segments as the liquor market is highly price sensitive. In the liquor
industry, price sensitivity does not necessarily entail declining volumes;
rather, the consumer tends to switch over to cheaper brands in view of price
increase or recessionary conditions.
COMPANY OVERVIEW AND OPERATING RESULTS
The company’s flagship brand, ‘Original Choice’, with a presence across three flavors Whisky, Brandy and Rum, registered sales of over 9.7 million cases in FY 12 with a significant market share of 31% in Karnataka’s economy whisky segment maintaining its leadership position in India’s largest whiskey consuming state.
During the year, in line with its premiumisation strategy, the company launched Grand Duke Whisky in Karnataka and Andhra Pradesh and the initial response has been very encouraging. Mont Castle Brandy catering to the premium segment also recorded significant volume growth and has an established presence with a loyal brandy customer base.
Manufacturing and Distribution platform
Different states
of India are completely different markets. States can bebroadly classified into
Government controlled and Open markets. Complicated and heavy tax structures
and regulatory dynamics require wide spread manufacturing and distribution
platforms. The company has made significant investment to set up its wn
manufacturing / bottling units or tied up with local bottling plants to enjoy
economic efficiencies and invested in a strong distribution network and
platform for future growth.
The company has established itself in both kinds of markets in terms of relationships with the relevant regulatoryauthorities, local state manufacturing and appointment of distributors and connect with retailers. In line with its strategy to grow its key brands,their Company has expanded its manufacturing units and tied up with third parties for additional capacities. Currently the company has 13 manufacturing units spread across 11 states which account for more than 50% of the spirits onsumption in India with a total bottling capacity of1.25m cases per month. Of these 4 are owned by the company with a primary distillation and bottling plant at Chitali, Maharashtra with capacity to produce 50KLPD of Rectified Spirit and 29KLPD of Extra Neutral Alcohol and a 750KL malt and grape spirit plant at Goa.
The company acquired the old distillery in Chitali Maharashtra with the objective of turning it around and backwad integrating into ENA production. The distillery has been refurbished; investment in Effluent Treatment Plant (ETP) completed and trial runs have begun.
However, full scale production and complete
integration of ETP has to
be completed and is expected to begin in 2012
The company’s core business has reported strong results. Profits have been however impacted due to unproductive capacity of the primary distillery at Chitali.
With leadership in
Karnataka and Andhra Pradesh, the company has expanded its distribution reach
in Northern and Western India. It currently operates in 11 states across India.
The company has a strong distribution network of 200+ sales persons with 17,000 POS (Point of Sales) outlets all India with 7,500 outlets in Karnataka.
BACKGROUND
Subject was
incorporated on 19 September 1996. The registered office of the Company is
located at Bangalore, Karnataka, India. The Company is engaged in the business
of distillation, packaging, distribution, marketing and sale of Indian Liquor.
On 1 December
2010, the Company changed its status from a public limited company to a private
limited company and has changed its name from John Distilleries Limited to John
Distilleries Private Limited.
UNSECURED LOAN
|
PARTICULARS |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
from other parties |
99.921 |
122.683 |
|
|
|
|
|
Total |
99.921 |
122.683 |
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10279263 |
19/03/2011 |
6,474,000.00 |
ICICI BANK LIMITED |
MYTREE CENTER, HOSUR ROAD, BOMMANAHALLI, BANGALORE, KARNATAKA -
560068, INDIA |
B10253045 |
|
2 |
10259839 |
31/03/2010 |
13,750,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA
- 400013, INDIA |
A83433482 |
|
3 |
10169184 |
18/07/2009 |
2,440,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA
- 400013, INDIA |
A66790155 |
|
4 |
80016212 |
26/11/2008 * |
1,065,000,000.00 |
STATE BANK OF INDIA |
OVERSEAS BRANCH, NO. 65, ST MARKS ROAD, BANGALORE, KARNATAKA - 560001,
INDIA |
A52428562 |
|
5 |
80016216 |
08/06/2013 * |
1,670,000,000.00 |
STATE BANK OF INDIA |
OVERSEAS BRANCH, NO.65, ST.MARK'S ROAD, BANGALORE, KARNATAKA - 560001,
INDIA |
B78921624 |
Note: * Date of
charge modification
CONTINGENT
LIABILITIES: (As on 31.03.2012)
Holders of
CCPS/OCPS are eligible for cumulative dividend for cumulative of 0.001%. The
CCPS/OCPS were issued on 18 March 2011 and accordingly the dividend for the
year ended 31 March 2012 amounts to Rs 5192.
Contingent
liabilities not provided for:
ABD Private
Limited (formerly known as BDA Limited) (a competitor of the Company) has sought
a stay order on the trademark registration of "ORIGINAL CHOICE", and
challenged the registration by filing two separate proceedings (one appeal and
one rectification) before Intellectual Property Appellate Board (IPAB). The
appeal was dismissed by IPAB and subsequently by Madras High Court. An Special
Leave Petition (SLP) against the said orders was also dismissed by Hon'ble
Supreme Court. The rectification proceeding is pending before IPAB.
In parallel
proceedings, ABD Private Limited (formerly known as BDA Limited) filed
objection before West Bengal Excise Commissioner against the Company's
application for label registration, which was allowed by the Commissioner. On
appeal, Principal Secretary set aside the Commissioner order and approved the
label. The appeal filed by ABD Private Limited against the principal secretary
order has been dismissed by West Bengal Taxation Tribunal(WBTT). On appeal
against the WBTT order, Calcutta High Court has remanded the matter back to
WBTT and hearing is before the said Tribunal is pending.
In another
proceedings, Wodka Gorbatschow KG, the owners of the brand 'Gorbatschow Vodka'
has filed the case against the Company for alleged passing off its bottle
design. The Hon'ble Bombay High Court has granted interim injunction against
the company pending final disposal.. The Company has decided to contest the
matter. The impact of the above cases cannot be quantified.
One of the
vendor of Chitali Distillery Limited (CDL) (merged with the Company with effect
from 1 October 2010) had filed a case for Rs 3.107 Millions for wrong
deductions made from vendor bills by CDL in 2008. The case is pending for
hearing before Shrirampur Court.
The Excise
Range officer had raised a demand of Rs 5.411 Millions on the Company, by
disallowing CENVAT credit not claimed on duplicate invoices. The Credit was
subsequently reversed by the Company. However, the a penalty of Rs 500,000 was
levied on the Company. The Company has filed a case in Bombay High Court,
challenging the levy of penalty.
The Sale tax
authorities has raised a demand of Rs 3.563 Millions for consumption of
rectified spirit for manufacture and bottling of country liquoron behalf of one
of the customers. The Company has paid a sum of Rs 1,725,000 under protest
against the demand raised. The case pending for hearing at Sales Tax Appellate
Tribunal, Mumbai. The Excise authorities has denied the cenvat credit amounting
to Rs. 1.817 Millions paid as purchase tax on molasses, the matter is pending
with CESTAT for hearing.
The Service
tax department has raised a demand of Rs. 1.165 Millions paid in respect of
goods transport agency service availed by the company and Rs. 23.364 Millions
in respect of operational income derived by company, on account of manufacture
of liquor by contract bottling units. The company has paid the said amount to
the department, however filled an appeal to commissioner of central excise
demanding for the refund.
FIXED ASSETS
Tangible, owned
- Freehold land
- Buildings
- Plant and
machinery
- Vehicles -
transportation
- Vehicles -
others
- Computers
- Furniture and
fittings
- Railway
sidings
Intangible, owned
- Computer
software
PRESS RELEASES
JOHN DISTILLERIES SEEKS FOREIGN PARTNER
BANGALORE: John Distilleries (JDL), founded by NRI businessman Paul John, has mandated Morgan Stanley to scout for potential suitors interested in picking up a major stake in the country's fifth largest alcoholic beverage company by volume.
The promoter and private equity investor Gaja Capital, which holds about 35%
stake in the Bangalore-based maker of Original Choice whiskey, has valued the
company at about Rs 9000.000 000, said banking sources with knowledge of the
matter.
The Rs 4500.000 Millions JDL's Original Choice sells over 10 million cases with
strong presence in the southern markets. The brand is the largest selling in
Karnataka, the home turf of domestic liquor heavyweight United Spirits (USL).
This development comes 60 days after Vijay Mallya-led USL, which commands a 53% share in the Indian spirits market, hived off controlling stake to the world's largest spirits maker Diageo for approximately Rs 55000.000 Millions. The USL sale is widely expected to set off further consolidation moves in a sector where MNC brands are gaining ground.
The deal, which is likely to see two existing shareholders offload majority
stake, would also give an exit window to India focused private equity fund Gaja
Capital, which had entered the company two years ago.
Sources briefed on the matter said that smaller international firms like
Italian spirits maker Gruppo Campari and American spirits maker Beam Global
could be attracted to a potential deal, but a definite picture would emerge
only after Morgan Stanley starts an official search for a foreign partner. The
transaction could give foreign buyer a strategic foothold in the country's
bigger whiskey markets.
A region wise break-up of the Indian Made Foreign Liquor market, which accounts
for 36% of the overall alcoholic beverage space, shows that South accounts for
49% of sales, West 30%, North 12%, and East 9%. JDL's brand portfolio also
include Mont Castle Brandy, Grand Duke premium whisky, and Big Banyan Wines.
What makes Indian liquor companies sport high valuations as well as attractive
to foreign players is the strong entry barriers that protect the local
incumbent players.
Financial services company Anand Rathi, in its report on the Indian alcoholic
beverage market, pointed out limited distribution networks and importantly the
tight government control of the liquor market at the state level, are some of
the barriers new entrants are weighed down by.
GAJA CAPITAL BACKED JOHN DISTILLERIES TO SELL STAKE
23 JANUARY 2013
After USL, John Distilleries Private Limited - maker of Original Choice Whisky is planning to sell stake and rope in a foreign partner in the business.
The company has mandated Morgan Stanley to scout for the potential suitors.
In 2011, Gaja Capital invested around $12 Mn for 35% stake in the company. It is now looking for an exit with the new partner coming in.
JDPL is the flagship company of Paul John Enterprise promoted by Paul P. John, who has interests in liquor, hospitality and furnishing fabric business. JDPL is engaged in the business of blending, marketing and sale of IMFL with four owned units and four leased units.
As on June 30, 2012, the total installed capacity for IMFL (including leased
capacity) was 17.2 Mn cases p.a. (14.7 Mn cases p.a in respect of owned units),
and for malt spirit was 0.9 Mn cases p.a .
JDPL markets its product under its flagship brand and sbquo; ‘Original Choice’.The company’s portfolio also includes - Mont Castle Brandy, Grand Duke premium whisky, and Big Banyan Wines.
The JDL's Original Choice sells over 10 Mn cases with strong presence in the
southern markets.
A region wise break-up of the Indian Made Foreign Liquor market, which accounts
for 36% of the overall alcoholic beverage space, shows that South accounts for
49% of sales, West 30%, North 12%, and East 9%.
Recent deal in this space includes – Globus Spirits Limited received around R90
Cr from Templeton Strategic Emerging Markets Fund IV, L.D.C and the promoters;
Makers of Aristocrat whiskey - Jagatjit Industries acquired a clutch of brands
from Scotland's George Sinclair Sons;
United Spirits sold controlling stake to British spirit major – Diageo.
United Spirits was also planning to sell a 49% stake in its Glasgow-based arm
Whyte and Mackay to pay off UB Group's $4 bn debt.
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 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.65.86 |
|
|
1 |
Rs.102.52 |
|
Euro |
1 |
Rs.87.06 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLV |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
4 |
|
--BUSINESS SCALE |
1~10 |
-- |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
36 |
|
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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.