MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	ORGANIC INDIA PRIVATE LIMITED (w.e.f. 02.11.2006)
Formerly Known As :	IITC ORGANIC INDIA PRIVATE LIMITED (w.e.f.11.01.2002) INDO-ISRAEL TRADING CORPORATION PRIVATE LIMITED (w.e.f.14.10.1998) INDO ISRAEL TRADING COMPANY PRIVATE LIMITED
Registered Office :	Plot No.266, Faizabad Road, Kamta, P. O. Chinhat, Lucknow – 227105, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.02.1997
Com. Reg. No.:	20-021420
Capital Investment / Paid-up Capital :	Rs.859.804 Millions
CIN No.: [Company Identification No.]	U74130UP1997PTC021420
PAN No.: [Permanent Account No.]	AAACI5675E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture and Sale of Herbal Infusions, Ayurvedic Formulations and Agro Products.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company possesses a moderate financial profile marked by increasing networth profitability resulting into gradually wiping off a part of its accumulated losses, leading to modest capital structure. Further, the company has maintained a sound liquidity profile owing to zero gearing and favourable gap between trade receivable and payables. Management has witnessed a better increase in its sales volume as well as net profitability during FY13. Moreover, as per provisional financial statements of FY 14, the company has successfully maintained the business as well as liquidity profile by delivering a satisfactory performance reporting significant improvement in profitability and wiping off its accumulated losses. The ratings also take into consideration, the hascent but rapidly growth seen in the organic industry as a result of eschewing the products made from artificial chemicals which portrays a huge potential and untapped market. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with slight caution.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Santosh Singh
Designation :	Accounts Manager
Contact No.:	91-9956296679
Date :	25.08.2014

LOCATIONS

Registered Office :	Plot No.266, Faizabad Road, Kamta, P. O. Chinhat, Lucknow – 227105, Uttar Pradesh, India
Tel. No.:	91-522-2701579
Mobile No.:	91-9956296679 (Mr. Santosh Singh)
Fax No.:	91-522-2701395
E-Mail :	accounts@organicindia.com info@organicindia.com export@organicindia.com santosh@organicindia.com alok.kumar@organicindia.com
Website :	http://www.organicindia.co.in http://www.organicindia.com
Area :	8400 Sq.ft.
Location :	Rented
Branch Offices :	Located at: · Rajasthan · Uttar Pradesh · Madhya Pradesh

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Yoav Lev

Designation :

Director

Address :

Khasra No.48, Near Iise, Kalyanpur, Lucknow – 226022, Uttar Pradesh, India

Date of Birth/Age :

12.12.1964

Date of Appointment :

09.11.2013

DIN No.:

00183462

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74130UP1997PTC021420	ORGANIC INDIA PRIVATE LIMITED	Director	09/11/2013	17/02/1997	-	Active	NO
2	U74120UP2013PTC055728	LEV TRUE WELLNESS PRIVATE LIMITED	Director	19/03/2013	19/03/2013	-	Active	NO

Name :

Mr. Krishan Gupta

Designation :

Managing Director

Address :

A-Block 197-A, Sushant Lok, Phase – 1, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

20.06.1965

Date of Appointment :

21.01.2008

DIN No.:

02010933

Name :

Mr. Dinesh Kumar

Designation :

Alternate director

Address :

A-306, Indira Nagar , Lucknow - 226016, Uttar Pradesh, India

Date of Birth/Age :

10.05.1973

Date of Appointment :

02.12.2013

DIN No.:

00124932

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74130UP1997PTC021420	ORGANIC INDIA PRIVATE LIMITED	Alternate director	02/12/2013	01/09/1998	-	Active	NO
2	U72100UP1999PTC024640	IITC DIGITAL COM PRIVATE LIMITED	Director	07/08/1999	07/08/1999	-	Strike off	NO
3	U01134UP1998PTC023813	GANGA YAMUNA AGRO TECHNOLOGIES AND PLANTATION PRIVATE LIMITED	Director	16/04/2001	16/04/2001	-	Active	NO
4	U74120UP2013PTC055728	LEV TRUE WELLNESS PRIVATE LIMITED	Additional director	21/03/2013	21/03/2013	12/02/2014	Active	NO
5	U70100UP2014PTC063056	JDP GREEN INFRACON PRIVATE LIMITED	Director	03/03/2014	03/03/2014	-	Active	NO

Name :

Holly B Lev

Designation :

Director

Address :

1859 Field Road, Charlottesville VA United States of America

Date of Birth/Age :

28.08.1956

Date of Appointment :

30.09.2013

DIN No. :

06715553

Name :

Christopher Jeremy Dean

Designation :

Alternate director

Address :

16, Kingsley street, Byron Bay

NSW 2481

Date of Birth/Age :

11.01.1951

Date of Appointment :

02/12/2013

DIN No. :

06715555

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74130UP1997PTC021420	ORGANIC INDIA PRIVATE LIMITED	Alternate director	02/12/2013	18/10/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Alok Kumar
Designation :	Company Secretary
Address :	Plot No.10, Phoolbagh Colony, Gudamba Kursi Road, Lucknow – 226021, Uttar Pradesh, India
Date of Birth/Age :	23.05.1983
Date of Appointment :	10.03.2011
PAN No.:	ARFPK3497H

Name :	Mr. Santosh Singh
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
OI (India) Holdings LLC, USA	51588250
Fabindia Overseas Private Limited, India	34392167
Total	85980417

AS ON 30.09.2013

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	60.00
Bodies corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of Herbal Infusions, Ayurvedic Formulations and Agro Products.

Products :

Item Code No. (ITC Code)	Product Description
12119099	Herbal Infusions
12119032	Psyllium Husk
30049011	Formulations and Ayurvedic Syrup

Exports :

Products :

Herbal Infusions, Ayurvedic Formulations and Agro Products

Countries :

· USA

· Australia

· Czech Republic Australia

· UK

Imports :

Products :

Raw Material

Countries :

USA

Terms :

Selling :

Cash and Credit

Purchasing :

Cash, Credit and Advance

GENERAL INFORMATION

Suppliers :	ACG – Mumbai
Customers :	Fabindia Overseas Private Limited
No. of Employees :	250 (Approximately)
Bankers :	· ICICI Bank Limited Regd. Off- Landmark, Race Cource Circle, Vadodara – 390007, Gujarat, India · HDFC Bank · Axis Bank

Banking Relations :	--
Auditors :
Name :	V G Associates, Chartered Accountants
Address :	Dalippur Tower, C D Block 1st Floor, R. No. 5B and 6A 6, Sapru Marg, Lucknow – 226001, Uttar Pradesh, India
PAN No.:	AAEFV8325M

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
89400000	Equity Shares	Rs.10/- each	Rs.894.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
85980417	Equity Shares	Rs.10/- each	Rs.859.804 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	859.804	515.882	515.882
(b) Reserves & Surplus	93.079	(53.868)	(186.007)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	952.883	462.014	329.875
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	16.595	8.605	3.730
(d) long-term provisions	33.004	17.937	0.000
Total Non-current Liabilities (3)	49.599	26.542	3.730
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	15.594	18.328	2.266
(c) Other current liabilities	42.567	22.061	11.461
(d) Short-term provisions	0.191	0.264	0.000
Total Current Liabilities (4)	58.352	40.653	13.727
TOTAL	1,060.834	529.209	347.332
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.911	106.290	119.561
(ii) Intangible Assets	1.020	0.476	0.000
(iii) Capital work-in-progress	0.000	0.000	3.495
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	267.466	0.100	0.000
(c) Deferred tax assets (net)	17.393	0.000	0.000
(d) Long-term Loan and Advances	12.944	33.924	20.765
(e) Other Non-current assets	15.810	71.643	40.751
Total Non-Current Assets	352.544	212.433	184.572
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	122.358	86.322	60.555
(c) Trade receivables	347.803	149.434	66.396
(d) Cash and cash equivalents	206.354	24.102	18.596
(e) Short-term loans and advances	21.886	9.572	15.217
(f) Other current assets	9.889	47.346	1.996
Total Current Assets	708.290	316.776	162.760
TOTAL	1,060.834	529.209	347.332

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from operations	985.226	596.681	442.073
	Other Income	21.357	47.155	4.871
	TOTAL (A)	1,006.583	643.836	446.944
Less	EXPENSES
	Cost of Materials Consumed	325.643	214.140	189.479
	Profit Prior Period Expenses	0.918	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.956)	(4.320)	(0.308)
	Employees benefits expense	86.234	79.127	59.808
	Exceptional Items	0.000	0.000	6.245
	Other expenses	216.783	196.063	142.519
	TOTAL (B)	622.622	485.010	397.743
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	383.961	158.826	49.201
Less	FINANCIAL EXPENSES (D)	4.748	0.519	0.388
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	379.213	158.307	48.813
Less/ Add	DEPRECIATION/ AMORTISATION (F)	8.291	13.076	13.961
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	370.922	145.231	34.852
Less	TAX (H)	109.256	5.849	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	261.666	139.382	34.852
	Earnings / (Loss) Per Share (Rs.)	3.26	2.70	0.68

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	26.00	21.65	7.80
Net Profit Margin (PBT/Sales)	(%)	37.65	24.34	7.88
Return on Total Assets (PBT/Total Assets}	(%)	47.80	27.45	10.14
Return on Investment (ROI) (PBT/Networth)		0.38	0.31	0.10
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		12.14	7.79	11.86

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	515.882	515.882	859.804
Reserves & Surplus	(186.007)	(53.868)	93.079
Net worth	329.875	462.014	952.883
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	442.073	596.681	985.226
		34.973	65.118

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	442.073	596.681	985.226
Profit/(Loss) After Tax	34.852	139.382	261.666
	7.88%	23.36%	26.56%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	No
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	No

INDEX OF CHARGES

.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10022981	08/04/2006	440,000.00	ICICI BANK LIMITED	REGD OFF-LANDMARK, RACE COURSE CIRCLE, VADODRA, GUJARAT - 390007, INDIA	A02564086

NOTE:

The Registered office of the company has been shifted from A-306, Indira Nagar, Lucknow – 226016, Uttar Pradesh, India to the present address w.e.f. 22.09.2009

FIXED ASSETS:

· Land

· Building

· Factory Building

· Plant and Machinery

· Office Equipments

· Computer Equipments

· Furniture and Fixtures

· Vehicles

WEBSITE DETAILS

NEWS / ARTICLES

Organic India aims at Rs.2000.000 MILLIONS turnover by 2015-16

Sep 13, 2012

NEW DELHI: 

FMCG firm Organic India today said it is looking at three-fold growth in turnover to Rs 2000.000 Millions by 2015-16 and has plans to launch organic grocery items such as rice, dal and spices next year.

"With rapid expansion and awareness of organic products, we expect robust growth in our business. We are hoping to touch a revenue of Rs 2000.000 Millions by 2015-16," Organic India Managing Director and Global CEO Krishan Guptaa told reporters here.

The company had clocked a turnover of Rs 700.000 Millions in last financial year, of which 40 per cent came from the domestic market and rest from exports, he added.

In order to expand the business, the Lucknow-based firm will introduce various grocery items next year.

"We have done the soft launch of items like rice, dal, various spices among others. These will be commercially launched in the market next year," Guptaa said.

The company rolled out four new organic products -- green tea, chyawanprash, desi ghee and a health supplement for men. These will also be marketed across the world.

"We are currently exporting our products to 32 countries all over the world. Our products are certified by various agencies in India, the US, Europe and Israel," Guptaa claimed.

Organic India at present works with about 20,000 farmers with their 80,000 acres of land. It supports them financially with advance payments, offers free medical treatments and finally procure the raw material from them for processing.

The company, established in 1997, currently helps farmers in organic farming in Uttar Pradesh, Rajasthan, Madhya Pradesh and Karnataka.

Guptaa said the company has so far invested Rs 100 crore on various activities, including setting up a finishing and packaging plant at Lucknow.

"We are looking to set up another finishing unit at a different location," he said without sharing details.

FABINDIA ACQUIRES A 40% STAKE IN ORGANIC INDIA

Mar 6, 2013

LUCKNOW: Fabindia has acquired a 40% stake in Organic India, a Lucknow-based organic food and supplements firm founded in 1997 by a former Osho disciple who came to India in his younger days in search of Moksha but ended up founding a business that deals in the produce from mother Earth.

Fabindia, that runs a chain of 170 stores nationwide selling traditional Indian ethnic fabrics and handicrafts, will become a significant minority shareholder in Organic India by merging its own organic division into it and the New Delhi-based ethnic products retailer will also pump Rs 15 crore into Organic India as part of the deal. Organic India is promoted by Isreali-citizen Yoav Lev, 48, and his wife Bhavani, the daughter of former Seagram chairman Edgar Bronfman Sr. Lev is popularly known among his business circles by his Indian name Bharat Mitra, a name conferred on him by his spiritual guru Sri Poonja who described him as a 'friend of India'.

"When I go to meet people they say that they had expected a Bengali guy named Mitra and not a foreigner," he says adding that even his father calls him by his Indian name. Before meeting Sri Poonja in Lucknow, a young Lev spent four years at the Pune ashram of mystic guru Rajneesh. The company, that also has offices in the US, Australia and Israel, has seven foreigners among its eight Board members. Most overseas citizens have taken local names such as Kamal, Prasad, Shankara in addition to their original names.

Mitra co-founded Organic India in 1997 with his wife whose original name was Holly Bronfman and who is also a disciple of Sri Poonja. Today, Organic India is engaged with a few thousands marginal farmers in several clusters of about 2.4 million hectres in Uttar Pradesh, Andhra Pradesh and Rajasthan who grow tulsi, fruits and vegetables, spices, herbs among other products to make a whole host of herbal supplements, medicines, spices, edible oils and other food products.

Organic India was started by Mitra at the suggestion of his guru. "When he asked me to start a private limited company I honestly didn't know what a private limited company was," he says.

But now Mitra has a firm vision of turning Organic India into a Rs 1500.000 Millions FMCG player in India this year, in addition to growing its exports business. Currently Organic India generates almost 60% of its annual revenue from exports to 35 countries including the US, Australia, Israel, UK, Germany and many other European nations.

Organic India has charted out its growth plan for the next five years as the company plans to enter herbal cosmetic and beauty products as well as opening 500 Organic India branded beauty and wellness saloons nationwide.

Initially, Mitra says he had a tough time converting farmers in UP to grow tulsi from traditional rice, paddies among other produce. "A white man going to their fields and asking them to grow tusli...... they were never prepared to do that," Mitra says in his home in the outskirts of Lucknow. He says farmers considered it risky to mass produce tulsi fearing if Organic India backed out it would be difficult for the farmers to sell in such large quantities. Currently, tulsi tea is the company's largest selling product contributing almost 20% of the company's annual revenues.

The Fabindia deal is structured to merge Organic India with Fabindia's arm that aggregates organic products from hundreds of producers and farmers nationwide. William Bissell, managing director of Fabindia, says Organic India will now also source from farmers in more than 200 artisan clusters nationwide where Fabindia purchases its products from. Also, the partnership will pave way for a larger presence at Fabindia's stores nationwide, he says. Fabindia also gets access to Organic India's dealers in many countries.

ORGANIC INDIA EYEING RS 5000.000 MILLIONS TURNOVER

The company is counting on the rising demand for quality herbal supplements in India and abroad

October 13, 2013 

Organic India, a leading manufacturer and exporter of herbal formulations and food supplements, is eyeing Rs 500 crore turnover in the next two-three years.

The company, which clocked revenue of Rs 1500.000 Millions last year, is counting on the rising demand for quality herbal supplements in India and abroad.

The Lucknow-based company is also keen on consolidating its position in the domestic market, which accounts for nearly 40 per cent of its sales.

Sixty per cent of its revenue comes from export markets spanning the US, Europe and Asia.

The US alone accounts for 35 per cent of its overseas sales.

"We export our products to 40 countries. Now, we are in the process of setting up exclusive retail stores in Indian starting with Lucknow," Organic India Managing Director and global Chief Executive Officer Krishan Guptaa said. The company has tie-ups with some leading retail chains.

The company, which primarily started as herbal and tulsi tea manufacturer and exporter, has over the years expanded its portfolio to include formulations made from 100 herbs.

In a novel initiative, the company has collaborated with Lucknow's Adarsh jail, where about 300 inmates are engaged in packaging its products.

Organic India has a central packaging plant in Lucknow, with local processing centres at several centres, from where it sources tulsi and other herbs. In Azamgarh district alone, Organic India sources tulsi cultivated across 1,500 acres.

Tulsi accounts for 50 per cent of its herbal input material, while tea formulations form 40 per cent of its shelf products, Guptaa informed Business Standard. "This year, we exported nearly 2,000 tonnes of dehydrated mango fruit," he said.

The company begun developing its back-end farming chain in 1997 and commenced commercial production and sales in 2007.

Its products include organic spices, herbal tea, ghee, medicines, Ayurvedic supplements/formulations, chyawanprash and organic food grain.

The company recently launched several new products, including a herbal aphrodisiac preparation.

ORGANIC FOOD MARKET TAKES OFF

April 20, 2014

Farmers can achieve better yield, but they are struggling to market organic products owing to lack of government support

Organic food market in India is expanding at a staggering rate of 400 per cent every year according to a report published by Confederation of Indian Industry (CII) but the farmers are unable to realise the full potential of the crops grown with natural fertilizer.

It is because they are marginalised by the government which extended maximum support to corporate entities, said G.V. Ramanjaneyulu, Director of Secunderabad-based Centre for Sustainable Agriculture (CSA).

Addressing a seminar on organic farming at Andhra Chamber of Commerce and Industry (ACCI) here on Saturday, Mr. Ramanjaneyulu said empirical data gathered from about nine lakh farmers across the country proved that the difference in yields of organic and conventional systems of agriculture was just about five per cent.

The cost of production came down by 10 to 15 per cent and returns were higher by at least 10 per cent.

Farmers were able to achieve better yields but they struggled in marketing the organic products due to the lack of government support. Post-harvest and supply chain issues bothered the farmers and the government rarely came to their rescue.

Mr. Ramanjaneyulu stressed the need for a major shift in fertilizer usage from NPK to organic manures and chemical-based pesticides which have high concentrations of heavy metals, to eco-friendly substances.

The rising costs and inability of farmers to sustain the present levels of production were issues of concern around the world and the only long-term solution was organic farming.

A global action plan and concerted action were essential to deal with the imminent crises in agriculture sector in which technology plays a limited role, the CSA Director observed. ACCI Chairman M. Murali Krishna and former ZP chairman Kadiyala Raghava Rao were present.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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.60.50
UK Pound	1	Rs.100.33
Euro	1	Rs.79.91

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis done by :	SUB
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.