|
Report Date : |
23.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDIA HOSPITALITY CORP (IHC) |
|
|
|
|
Branch Office : |
15/F, Tower B, Vatika Tower, Sector 54, Golf Course Road, Gurgaon –
122002, Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Year of
Establishment : |
2006 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Not Available |
|
|
|
|
Legal Form : |
Foreign Registry Firm. |
|
|
|
|
Line of Business
: |
Provider of Hospitality and Leisure Services. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was set up as a Blank Cheque Firm in 2006 with the specific mandate
of making investments in the restaurant and hospitability Sector. Management of the company remained non-cooperative providing any
information to us. As per indirect sources, the subject operates a diversified pan –
Indian Hospitality and Leisure Company in India. Its hotel division owns and
operates the Gordon House Hotel, a Boutique four-star hotel located in
Mumbai. It also primarily owns and operates a 29-room hotel in South Mumbai
and operates a 30 room hotel in Pune under a management contract. Its services division operates Birdy’s chain of cakes and savory
retail outlets. It also operates fast food and food court formats under the
names, Dosa Diner, Roti and Casual Dining Formats such as China Joe, just
around the corner and pizzeria and pasta bar. Moreover, it also runs gourmet dining formats such as Tendulkar’s, not
just Jazz by the Bay and All Stir Fry names. Further, this division is also engaged in provision of food for third
party retail outlets and outdoor catering activities. Trade relations are fair. Business is active. Payment terms are
unknown. In view of unavailability of any financial information, the subject
can be considered for business dealings with some 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1 million
Indian tourists in 2012), Thailand (one million), the United Arab Emirates
().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs.7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
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 CO-OPERATIVE
Contact No.:91-124-4976821
LOCATIONS
|
Registered Office : |
89, Nexus Way, Camana Bay, KY1-9007 Cayman Islands |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office : |
15/F, Tower B, Vatika Tower, Sector 54, Golf Course Road, Gurgaon –
122002, Haryana, India |
|
Tel No.: |
91-124-4976821 |
MANAGEMENT
|
Name : |
Mr. Ravi S. Deol |
|
Designation : |
Managing Director and Chief executive Officer chairman |
|
|
|
|
Name : |
Mr. Sandeep Vyas |
|
Designation : |
Executive Director and Chief Operating Officer |
|
|
|
|
Name : |
Mr. Jason Nathaniel Ader |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rajesh Mittal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Rajagopal Nandiwada |
|
Designation : |
Non-Executive Director and Chairman of Audit Committee |
|
|
|
|
Name : |
Mr. Ajay Mehra |
|
Designation : |
Member |
BUSINESS DETAILS
|
Line of Business : |
Provider of Hospitality and Leisure Services. |
GENERAL INFORMATION
|
Customers : |
Retailers · Starbucks Coffee · Sainsbury’s · Café Coffee Day · Costa Coffee |
|
|
|
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Facilities : |
-- |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
Not Available |
CAPITAL STRUCTURE
|
Capital Investment : |
|
|
Owned : |
Not Available |
|
Borrowed : |
Not Available |
|
Total : |
Not Available |
FINANCIAL DATA
[All figures are
in Rupees Millions]
NOT AVAILABLE
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 |
No |
|
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 |
No |
|
12] |
Profitability for last three years |
No |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
No |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
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 |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
No |
|
28] |
Incorporation details, if applicable |
No |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
NEWS:
IS BUYING ADELIE FOR $350 MILLION A GOOD STRATEGY FOR
INDIA HOSPITALITY?
April 26, 2012
It's a deal flavoured by
contrasts. Ravi Deol says he wants to build a "global food empire", and
the latest $350 million acquisition by the company of which he is one of the
three owners is a key piece in that direction. But in the last four years, Deol
has presided over a business that has yielded two faltering acquisitions in the
hospitality space, has never generated a profit and has caused near-total
erosion in shareholder value.
The scale and consistency of
that decline is a stark contrast to the ambition that Deol expressed earlier
this month, when he announced that India Hospitality Corp, his company, had
bought Adelie Food Holdings, a producer of chilled foods like sandwiches,
quiches and pastries in the UK, for $350 million. "It makes us India's
largest food-services company," he told ET on April 12.
But without Adelie, as it was
till a day before that, IHC is a patch of what it once was and what it set out
to be when it started six years ago. From two businesses, it was down to one.
Its turnover had shrunk, from a peak of $41.7 million in 2009-10 to $4.7
million for the six months to September 2011, the latest available. And yet, it
was buying Adelie, which had revenues of 220 million pounds (or, about $350
million) in 2011-about 35 times that of IHC. In its short history, IHC was in
the best financial health when it has raised money to do business, but had not
deployed it.
At its peak, its net worth
was $146 million. But since then, it has run up losses of $96 million, eroding
its net worth to $50 million and cash to $1.9 million. With this, it wants to
buy Adelie for $350 million. "Capital is not a constraint. I am flooded
with investment proposals ever since the Adelie deal was announced,"
claims Deol, who is better known for building Barista, India's first coffee
chain, in the early-2000s. But Deol failed to build shareholder value at IHC.
In August 2006, IHC raised $103 million on a London stock exchange and listed
at a market capitalisation of 69 million pounds (about $130 million)
This peaked at 124 million pounds (about $185
million) in November 2008, before 98% of that value was wiped out in the
backdrop of two bleeding businesses and an illiquid stock. Deol wants to list
IHC again. He wants to grow Adelie in the UK. He also wants to transport
learnings from Adelie to its Indian businesses, and become the largest supplier
of chilled foods to coffee shops and quick-service restaurants in the country.
It's one of the reasons, he says, why IHC bought Adelie. And someone was
willing to sell to it.
INDIA HOSPITALITY CORP TO DELIST SHARES FROM AIM
Jan 20, 2012
AIM-listed India Hospitality
Corp. (IHC), which has interests in restaurant and hospitality businesses, is
delisting from the London market due to lack of liquidity and attractive
fundraising options.
The development comes as IHC sold its flagship airline catering business to Switzerland-based Gategroup Holding AG in November 2010 at a valuation of $92 million.
While IHC initially sold 74 per cent, Gategroup Holding recently exercised its option to buy the remaining stake.
According to IHC, the historical trading activity in the shares does not offer meaningful volumes and a quick, significant acquisition can be delayed due to the process of filing a new document and seeking shareholder approval. Further, the company sees no prospect of raising additional capital on AIM at an acceptable valuation while it is incurring expenses and spending management time to run a listed entity.
For delisting, IHC will need approval of at least 75 per cent of its shareholders in an extraordinary general meeting, to be held on March 5, 2012, in New York.
IHC had announced a special dividend after selling the airline catering company called Skygourmet Catering Private Limited. The company had raised $100 million (about Rs.4600.000 Millions Millions) through an initial public offer at the London Stock Exchange in 2006 and in 2007, it acquired Skygourmet and the restaurant chain Mars Restaurants from private equity firm Navis Capital and entrepreneur Sanjay Narang for $110 million.
"Following its divestment of Skygourmet, IHC is now focused around building its future in the food services industry. It intends to continue to exploit the emerging market opportunity offered by the rapidly growing Indian economy - both organically and through acquisitions in this sector both in India and internationally," the filing stated.
IHC currently operates hotel, restaurant and patisserie business of Wah. Mars Restaurants owns fast food formats like Dosa Diner and Roti besides dining formats like Pizzeria and Pasta Bar and Tendulkar's. It also owns Gordon House Hotels as part of the Mars Group.
INDIA HOSPITALITY,
BARISTA LAVAZZA DEAL TALKS FALL APART
April 01, 2014
NEW DELHI: Takeover talks
betweenBarista Lavazza and
diversified hospitality company India
Hospitality Corp (IHC) have ended without an agreement, dealing a blow to
Italian firm Lavazza Spa's efforts to find a buyer for the coffee chain, an
official aware of the development said.
"The exclusivity term of the due diligence
(for India Hospitality Corp) has lapsed," the official said requesting not
to be named. Lavazza has now constituted a new M&A team to drive the
process of selling Barista that currently operates 180 stores across the
country, the person said.
"We have no comments to offer," a
Barista Lavazza spokesperson said in response to an E Tquery. IHC chairman Ravi Deol, who incidentally stewarded Barista in its infancy days,
said his company had no interest in Barista. "We don't believe in the
business," he told ET in a text message.
However, early this month when ET asked Deol if
IHC was reviewing Barista, he had said, "We keep getting various
proposals. There is no view on Barista yet."
ETin its March 12 edition had reported that
Lavazza's asking price for Barista might play a spoilsport in its talks with
IHC. Two people in the know of the negotiations had said Lavazza was looking at
a valuation of at least Rs.800.000 Millions, which IHC was not willing to shell
out.
Lavazza has invested around Rs.2400.000 Millions
on Barista, including the cost of acquisition from serial entrepreneur
Sivasankaran in 2007.
Even though Lavazza has been able to trim
Barista's losses fromRs18.6 crore in March 2011 to Rs10.2 crore in March 2013,
revenues of the coffee chain fell from Rs95.5 crore to Rs80.3 crore during the
same period due to intense competition, according to an internal report
prepared for a PE firm, which was reviewed by ET.
Barista was the first among the modern crop of
specialty cafes in the country, setting up shop in 2000. It opened 128 cafes in
India and another three in Sri Lanka before losing out to Cafe Coffee Day,
which currently operates the largest number of cafes in the country.
Others such as UK chain Costa Coffee, and more recently American brands Starbucks and Dunkin Donuts, are also competing for share of the
consumer's wallet.
Industry estimates peg the cafe market at about
Rs14000.000 Millions, posting growth of 13-14%.
But a slowing economy, weak consumer sentiment
and escalating costs have slowed the growth of cafes.
Barista's ownership has changed hands at least
thrice since its inception. Lavazza had acquired the coffee chain along with
the Fresh and Honest coffee vending machine business from Sivasankaran's Sterling Infotech Group for $125 million. The Tata group too had owned the chain
for a short period before selling out to Sivasankaran.
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.58.77 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.80.57 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.