MIRA INFORM REPORT
|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN UNILEVER LIMITED |
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Registered
Office : |
Unilever House, B D Sawant Marg, Chakala, Andheri (East), Mumbai –
400099, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
17.10.1933 |
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Com. Reg. No.: |
11-002030 |
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Capital
Investment / Paid-up Capital : |
Rs. 2162.700
Millions |
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CIN No.: [Company Identification No.] |
L15140MH1933PLC002030 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH05398B /
PNEH04468C |
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PAN No.: [Permanent Account No.] |
AAACH1004N |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
manufacturing and marketing of Consumer Products like Soaps and Detergents,
Personal Products, Beverages, Packaged Foods, Others etc. |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary
of Unilever PLC and one of India’s Largest FMCG Company. It is a
well-established and reputed company having excellent track record. The rating
reflect HUL’s market leadership across segments in the fast-moving consumer
goods (FMCG) industry supported by diverse product portfolio includes soaps
and detergents, personal care products, and food as well as beverages. HUL
has strong brands name across categories marked by extensive distribution
network with strong advertising and marketing support. Further, rating
also reflects HUL’s strong financial risk profile marked by strong liquidity
position and decent profitability levels of the company. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
HENKEL RATING
|
HENKEL’s Rating : |
Aa 200, 201 (Low risk) |
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Credit
Rating |
Henkel
Rating (Customer Risk Assesment- CRA) |
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Mira
Inform |
Risk
Category |
Credit
Limit |
Description |
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Aaa |
100 |
Inter Company, credit limit
not required |
Very low risk (blue ships) |
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Aa |
200,
201 |
(120% of Gross Annualised
Sales/365)*Credit Term. |
Low risk |
|
A |
300,
301 |
(100% of Gross Annualised
Sales/365)*Credit Term. |
Moderate risk |
|
Ba |
350 |
(90% of Gross Annualised
Sales/365)*Credit Term. |
Significant risk |
|
B |
400 |
(80% of Gross Annualised
Sales/365)*Credit Term. |
High risk |
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450 |
Very high risk |
||
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Ca
or C |
500* |
NIL/ Legal/ Bad/No Transaction |
Doubtful accounts |
|
007* |
NIL |
Small unrated customers |
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009* |
NIL |
Inactive customers |
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999* |
Initially First Invoice vales,
CRA will be done and based on report the CL would get revised. |
New customer |
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ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of Investigation
books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating=AAA |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
10.09.2014 |
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 DECLINED
MANAGEMENT NON-COOPERATIVE [TEL. NO.: 91-22-39830000]
LOCATIONS
|
Registered Office : |
Unilever House, B D Sawant Marg, Chakala Andheri (East), Mumbai –
400099, Maharashtra, India |
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Tel. No.: |
91-22-39832429/ 39832285/ 32452 |
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Fax No.: |
91-22-39832413/ 28249457 |
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E-Mail : |
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Website : |
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PLANTS : |
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NORTHERN REGION |
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LOCATION |
ADDRESS |
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Barotiwala |
Khasra No. 94-96, 355-409, Village Balyana, Barotiwala IA, Tehsil Kasauli,
District Solan - 174103, Himachal Pradesh, India |
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Etah |
G. T. Road, Etah – 207001, Uttar Pradesh, India |
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Haridwar |
Plot No. 1, Sector 1A, Integrated Industrial Estate, Ranipur, Haridwar
- 249403, Uttaranchal, India |
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Nalagarh |
· Hudbust No. 143, Khasra No. 182, 183, 187/1, Village - Kiralpur, Tehsil - Nalagarh, District Solan - 174101, Himachal Pradesh, India · Khasra No. 1350 – 1318, Bhatoli Kalan, Hill Top Industrial Area, Jharmajri, Tehsil Nalagarh, District Solan - 173295, Himachal Pradesh, India |
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Orai |
A-1, Industrial Area, UPSIDC, Orai, Jalaun - 285001, Uttar Pradesh,
India |
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Rajpura |
A-5, Phase ll-B, Focal Point, Rajpura - 140401, Punjab, India |
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Sumerpur |
A-1, UPSIDC Industrial Area, Bharua, Sumerpur, Hamirpur - 210502,
Uttar Pradesh, India |
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SOUTHERN REGION |
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Cochin |
· Ernakulam North PO, Tatapuram, Cochin – 682014, Kerala, India · Edapally, Cochin – 682024, Kerala, India |
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Hyderabad |
Uppal Kalan, Hyderabad – 500039, Andhra Pradesh, India |
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Chennai |
C.P.T. Campus, Tharamani, Chennai – 600113, Tamilnadu, India |
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Hosur |
Plot No.50 & 51, SIPCOT Industrial Complex, Hosur - 635109,
Tamilnadu, India |
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Bangalore |
Suburb Stage-II, Yashwantpur, Bangalore – 560022, Karnataka, India |
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Mangalore |
Sultan Batter Road, Boloor, Mangalore – 575003, Karnataka, India |
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Mysore |
Plot No. 424, Hebbal Industrial Area, Mysore – 570016, Karnataka,
India |
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Pondicherry |
· Off NH 45-A, Vadamangalam, Pondicherry - 605102, India · No. 3, Cuddalore Road, Kirumambakkam, Pondicherry – 607402, India |
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EASTERN REGION |
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Tinsukia |
Dag No. 21 of 122
FS Grants, Mouza - Tingrai, Off NH No. 37, Doom Dooma Industrial Estate,
Tinsukia - 786151, Assam, India |
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Haldia |
PO Durgachak, Haldia - 721602,Midnapore, West Bengal, India |
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Kolkata |
· 1, Transport Depot Road, Kolkata - 700088, West Bengal, India · 63, Garden Reach, Kolkata - 700024, West Bengal, India · P10 Taratola Road, Kolkata - 700088, West Bengal, India |
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WESTERN REGION |
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Khamgaon |
C-9, MIDC, Khamgaon - 444303, District Buldhana, Maharashtra, India |
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Chhindwara |
5/6 KM Stone, Narsinghpur Road, Lehgadua, Chhindwara - 480002, Madhya
Pradesh, India |
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Chiplun |
Plot No. B-7, Lote Parshuram MIDC, Khed Taluka, District Ratnagiri,
Chiplun – 415722, Maharashtra, India |
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Goa |
Plot Nos. 132-139, Kundaim Industrial Estate, Kundaim, Goa – 403115,
India |
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Mumbai |
Aarey Milk Colony, Goregaon, Mumbai – 400065, Maharashtra, India |
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Nasik |
Plot No. A 8/9, MIDC, Malegaon, Sinnar - 422103, Maharashtra, India |
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Silvassa |
Survey No.151/1/1, Village Dapada, Khanvel Road, Silvassa - 396230,
India Survey No. 907, Kilwali Road, Amli Village, Near Gandhidham Bus Stop,
Silvassa – 396230, India Orient Press Complex, Survey No. 297/1/2, Dungrapada, Village Saily,
Silvassa - 396230, India Survey No. 46/11, Plot No 16, Naroli Road, Village Athal, Silvassa –
396230, India |
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Overseas
Customer Service Centers : |
Located at: ·
300,
Upper Richmond Road West, London SW 14, 7GJ, United Kingdom. Tel. No. 01 878 5254 Fax No. 01 879 1839 Telex : 918112 ·
303, Tel. No. 212 725 0679 Fax No. 212 725 0718 Telex : 220715 ·
Tel. No. 03 583 1225 Fax No. 03 505 0541 Telex : 2423450 |
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Major
Operating Units At: |
Located at: ·
Sewree,
Mumbai, Maharashtra, India ·
Andheri,
Mumbai, ·
Taloja,
·
Garden
Reach, Kolkata, West ·
Shamnagar,
West ·
·
Haldia,
·
Plot
No. 254, Sector IV, Special Economic Zone, Kandla, ·
Chindwara,
·
Pondichery,
Tamil ·
Yavatmal,
·
Pune,
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Branch Office
: |
123, |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Harish Manwani |
|
Designation : |
Chairman |
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Date of Birth/ Age : |
59 Years |
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Name : |
Mr. Sanjiv Mehta |
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Designation : |
Managing Director and Chief Financial Officer |
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|
Name : |
Mr. Sridhar Ramamurthy |
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Designation : |
Executive Director, Finance and IT and Chief Financial Officer |
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Date of Birth/ Age : |
48 Years |
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Name : |
Mr. Pradeep Banerjee |
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Designation : |
Executive Director, Supply Chain |
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Name : |
Mr. Aditya Narayan |
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Designation : |
Independent Director |
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Date of Birth/ Age : |
61 Years |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Independent Director |
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Date of Birth/ Age : |
68 Years |
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Name : |
Mr. O.P. Bhatt |
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Designation : |
Independent Director |
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Date of Birth/ Age : |
62 Years |
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Name : |
Dr. Sanjiv Misra |
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Designation : |
Independent Director |
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Date of Birth/ Age : |
65 Years |
KEY EXECUTIVES
|
MANAGEMENT
COMMITTEE |
|
|
Name : |
Mr. Sanjiv Mehta |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Sridhar Ramamurthy |
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Designation : |
Executive Director, Finance and IT and Chief Financial Officer |
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Name : |
Mr. Hemant Bakshi |
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Designation : |
Executive Director, Home and Personal Care |
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Name : |
Mr. Pradeep Banerjee |
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Designation : |
Executive Director, Supply Chain |
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Name : |
Mr. Dev Bajpai |
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Designation : |
Executive Director and Company Secretary |
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Name : |
Ms. Geetu Verma |
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Designation : |
Executive Director, Foods |
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Name : |
Mr. Manish Tiwary |
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Designation : |
Executive Director, Sales and Customer Development |
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Name : |
Mr. B. P. Biddappa |
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Designation : |
Executive Director and Human Resources |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
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|
1454412858 |
67.24 |
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|
1454412858 |
67.24 |
|
Total shareholding of Promoter and
Promoter Group (A) |
1454412858 |
67.24 |
|
(B) Public Shareholding |
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|
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|
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|
4462582 |
0.21 |
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|
5298558 |
0.24 |
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|
20 |
0.00 |
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|
78803409 |
3.64 |
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|
315392703 |
14.58 |
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|
403957272 |
18.67 |
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21858599 |
1.01 |
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|
268029610 |
12.39 |
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|
5325530 |
0.25 |
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|
9523931 |
0.44 |
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|
156299 |
0.01 |
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|
1138658 |
0.05 |
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|
7605785 |
0.35 |
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|
3600 |
0.00 |
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|
17940 |
0.00 |
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|
577770 |
0.03 |
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|
23879 |
0.00 |
|
|
304737670 |
14.09 |
|
Total Public shareholding (B) |
708694942 |
32.76 |
|
Total (A)+(B) |
2163107800 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
|
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
2163107800 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
manufacturing and marketing of Consumer Products like Soaps and Detergents,
Personal Products, Beverages, Packaged Foods, Others etc. |
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Products/ Services : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
· Bank of America · Bank of Baroda · Bank of India · Citibank N.A. · Deutsché Bank · HDFC Bank · Hongkong and Shanghai Banking Corporation · ICICI Bank · Indian Bank · Punjab National Bank · Royal Bank of Scotland · Standard Chartered Bank · State Bank of Hyderabad · State Bank of India · Syndicate Bank · Union Bank of India |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Solicitors : |
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Name : |
Crawford Bayley and Company |
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Address : |
Mumbai, Maharashtra, India |
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Holding Company : |
Unilever PLC |
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Subsidiaries
(Extent of holding) : |
· Aquagel Chemicals Private Limited (100%) (with effect from April 01, 2013) · Brooke Bond Real Estates Private Limited (100%) · Daverashola Estates Private Limited (100%) · Hindlever Trust Limited (100%) · Hindustan Unilever Foundation (76%) (with effect from December 19, 2012) · Jamnagar Properties Private Limited (100%) · Lakme Lever Private Limited (100%) · Levers Associated Trust Limited (100%) · Levindra Trust Limited (100%) · Pond’s Exports Limited (90%) · Unilever India Exports Limited (100%) · Unilever Nepal Limited (80%) |
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Trust : |
Hindustan Unilever Limited Securitisation of Retirement Benefit Trust (100% control) (from October, 2012) |
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Fellow
Subsidiaries : |
· Brooke Bond Assam Estates Limited · Brooke Bond Group Limited · Brooke Bond South India Estates Limited · Conopco, Inc. · Corporativo Unilever de Mexico, S.de R.L. de C.V. (merged) · Glidat Strauss Limited · Lever International Marine Sup · Lipton Soft Drinks Ireland Limited · Mascolo Brothers Limited · OOO Unilever Rus · P.T. Unilever Indonesia, Tbk. · Tigi Holdings Limited · Tigi Linea International B.V. · UL Research and Development Vlaa · Unilever (Malaysia) Holdings Sdn Bhd · Unilever ASCC AG · Unilever Asia Private Limited · Unilever Australasia · Unilever Australia Limited · Unilever Bangladesh Limited · Unilever Brasil Limited · Unilever Business and Marketing Support AG · Unilever Canada Inc · Unilever Canada-Food Solutions · Unilever Chile SA · Unilever China Limited · Unilever De Argentina SA · Unilever Deutschland Produktions GmbH and Co. OHG · Unilever Employment Services B.V. · Unilever Europe IT · Unilever Gulf Free Zone Establishment, Arabia · Unilever Industries Private Limited · Unilever Italy Holdings Srl · Unilever Japan · Unilever Korea · Unilever Lipton Ceylon Limited · Unilever Mashreq International Company · Unilever N.V. · Unilever Overseas Holdings AG · Unilever Overseas Holdings B.V. ·
Unilever Pakistan Limited |
|
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Joint Venture : |
Kimberly Clark
Lever Private Limited |
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Employees'
Benefit Plans where there is significant influence : |
· Hind Lever Gratuity Fund · The Hind Lever Pension Fund · The Union Provident Fund |
CAPITAL STRUCTURE
AS ON 30.06.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,250,000,000 |
Equity Shares |
Re. 1/- each |
Rs. 2250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,163,107,800 |
Equity Shares |
Re. 1/- each |
Rs. 2163.108
Millions |
|
|
|
|
|
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,250,000,000 |
Equity Shares |
Re. 1/- each |
Rs. 2250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,162,696,292 |
Equity Shares |
Re. 1/- each |
Rs. 2162.700
Millions |
|
|
|
|
|
·
Reconciliation of the number of shares
|
Equity Shares : |
31.03.2014 |
|
|
Number of shares |
Rs. in Millions |
|
|
Balance as at the beginning of the year |
2162472310 |
2162.500 |
|
Add : ESOP shares issued during the year |
223982 |
0.200 |
|
Balance as at the end of the year |
2162696292 |
2162.500 |
·
Rights, preferences and restrictions attached to
shares
Equity shares:
The Company has one class of equity shares having a par value of Re. 1 per
share. Each shareholder is eligible for one vote per share held. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of Interim
Dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
·
Shares in the company held by its holding company
and subsidiaries of holding company in aggregate
|
Equity Shares of Re.1 held by : |
31.03.2014 |
|
1,114,370,148 shares (March 31, 2013 : 794,806,750 shares) held by Unilever PLC, UK, the holding company |
1114.400 |
|
340,042,710 shares (March 31, 2013 : 340,042,710 shares) held by subsidiaries of the holding company |
340.000 |
·
Details of equity shares held by shareholders
holding more than 5% shares of the aggregate shares in the Company
|
Particulars |
31.03.2014 |
|
Number of shares |
114370148 |
|
Unilever PLC, UK, the Holding Company |
51.53% |
·
Aggregate
number of shares allotted as fully paid up pursuant to contract(s) without
payment being received in cash (during 5 years immediately preceding March 31,
2014)
|
Particulars |
31.03.2014 |
|
No. of equity shares issued in the last 5 years under the
Employee stock option plan/ performance share schemes as consideration for
services rendered by employees |
5703419 |
·
Aggregate
number of shares bought back during 5 years immediately preceding March 31,
2014
|
Particulars |
31.03.2014 |
|
No. of equity shares bought back by the company |
22883204 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
FINANCIAL DETAILS
FILE ATTACHED
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 |
2161.500 |
2162.500 |
2162.700 |
|
Reserves & Surplus |
32967.800 |
24577.700 |
30607.800 |
|
Net
worth |
35129.300 |
26740.200 |
32770.500 |
|
|
|
|
|
|
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 |
|
Sales |
221163.700 |
258102.100 |
280191.300 |
|
|
|
16.702 |
8.558 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
221163.700 |
258102.100 |
280191.300 |
|
Profit |
26914.000 |
37966.700 |
38674.900 |
|
|
12.17% |
14.71% |
13.80% |
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 |
Yes |
|
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 |
LITIGATION DETAILS:
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date: 29.05.2013 |
|
Lodging No: ITXAL/830/2013 Filing Date:
29.05.2013 Reg. No.: ITXA/1873/2013 Reg. Date: 5.10.2013 |
|
Petitioner: COMMISSIONER OF INCOME TAX-1, MUMBAI Respondent: M/S. HINDUSTAN UNILEVER LIMITED Petn. Adv : SURESH
KUMAR
Resp. Adv.: MULLA AND MULLA AND C. B.
AND CAROE (0) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission
Category: TAX APPEALS Last Date: 03.10.2013
Stage: FOR REJECTION [ORIGINAL SIDE MATTERS] Last Coram: REGISTRAR(OS)/PROTHONOTARY and SR. MASTER |
|
Act: Income Tax Act, 1961 UNDER
SECTION: 260A |
INDEX OF CHARGES
|
S.no. |
Charge id |
Date of charge
creation/modification |
Charge amount secured |
Charge holder |
Address |
Service request number
(SRN) |
|
1 |
80067270 |
12/05/1999 |
695,000,000.00 |
DEUTSCHE BANK |
HAZARIMAL SOMANI MARG, FORT,
MUMBAI, MAHARASHTRA |
- |
|
2 |
80067269 |
12/05/1999 |
900,000,000.00 |
PUNJAB NATIONAL BANK |
FORESHORE ROAD BRANCH,
MUMBAI, MUMBAI, MAHARASHTRA - 400023, INDIA |
- |
|
3 |
80067343 |
12/05/1999 |
1,190,000,000.00 |
STANDARD CHARTERED BANK |
M.G.ROAD, MUMBAI, MUMBAI,
MAHARASHTRA - 400023, INDIA |
- |
|
4 |
80067342 |
02/02/1999 |
385,000,000.00 |
HONGKONG AND SHANGHAI
BANKING CORPORATION LIMITED |
52/60, M.G.ROAD, MUMBAI, MUMBAI,
MAHARASHTRA - 400023, INDIA |
- |
* Date of charge modification
CHANGE OF ADDRESS:
The registered office of the company has been shifted from Hindustan Lever House, 165/166, Backbay Reclamation, Mumbai – 400020,
Maharashtra, India to the present w.e.f. 01.01.2012
COMPANY INFORMATION
Subject is a public limited company domiciled in India and is listed on
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company
is a market leader in the FMCG business comprising Home and Personal Care (HPC)
and Foods and Refreshments. The company has manufacturing facilities across the
country and Research and Development centres in Mumbai and Bangalore and sells
primarily in India through independent distributors and modern trade.
ECONOMY AND MARKETS
The year witnessed divergent growth globally, led by strengthening of the US economy, uneven and subdued growth in the Euro area and Japan coupled with a slowdown in Developing & Emerging markets.
In the domestic market, growth continued to be muted with the second successive year of sub 5% GDP growth. The year saw steep currency depreciation in an environment where industrial activity remained in contraction mode, consumption demand continued to weaken, while lacklustre capital goods production pointed to stalled investment demand.
With sluggish growth across the larger economy, further compounded by high consumer inflation and weak sentiment, market growth across FMCG categories moderated throughout the year in both volume and value terms. The discretionary categories and premium segments were particularly under pressure. The operating context for the year was challenging, given the backdrop of a market slowdown, a volatile input cost environment and heightened competitive intensity.
The Company’s performance for the year 2013-14 has to be viewed in the context of aforesaid economic and market environment.
PERFORMANCE OF
BUSINESSES AND CATEGORIES
Home and Personal Care
(HPC)
The Home and Personal Care (HPC) business consists of Soaps, Detergents, Household Care and Personal Products, which includes categories like Skin Care, Hair Care, Oral Care, Colour Cosmetics and Deodorants. During the year, the HPC business registered robust growth ahead of market.
The opportunity for growth in India continues to be immense across all HPC categories. This fact is also reflected in high levels of competitive intensity in the marketplace. The Company believes that both unwavering focus on competitive growth in core categories as well as market development to build segments of future are critical for sustained growth and long term value creation. While focusing on the core categories, the Company has also invested significantly in the segments of future, i.e. the segments which are expected to drive future growth.
Rural continues to be a key area of focus for the Company. During the year, the Company reached out to 8,500 villages across India with an ambition to improve the health and hygiene of children, through school contact and Mohalla programmes. At the School Contact Programme, the Company’s brands, Lifebuoy and Pepsodent, encouraged and educated children on the importance and correct method of handwashing and brushing their teeth. In the Mohalla programme, the Company demonstrated to consumers the benefits and usage of new and emerging categories, such as facewash, hair conditioners and fabric conditioners.
In a highly competitive scenario, where new brands and offerings are entering the market almost every quarter, the Company delivered competitive growth, driven by innovation, sharper in-market execution, competitive marketing and trade investments behind the brands. The Company sustained strong focus on innovation across the portfolio and continued to delight consumers with a range of exciting offerings launched during the year. The Company has also significantly stepped up investment in Digital Media, which is expected to be the media channel of the future. The Company continued to leverage and benefit from the inputs received from Unilever across various aspects of the business, including technology, innovation and communication.
Volatile and rapidly changing commodity markets, including vegetable oil and crude oil, coupled with depreciating currency markets continued posing a major challenge during the year. There were also regulatory changes in the space of media availability, leading to more efficient media buying and better deployment of non-TV led media. Even in this challenging environment, the Company delivered profitable growth through robust cost-saving programmes and judicious pricing, without compromising on the competitiveness of brand investments, both in terms of technology as well as advertising and promotion.
Soaps and Detergents
The Soaps and Detergents segment delivered healthy volume led turnover growth of 8.0% during the year. Further, growth during the year was profitable as segmental profit increased by 10.5%, through a mix of cost savings, supply chain efficiencies and judicious pricing.
Soaps category recorded a very successful year with strong volume growth in a market which saw an overall decline in volumes. The growth was driven by prompt and decisive pricing actions on Lifebuoy, Lux, Breeze and Dove, which gained consumer franchise. These actions were supported by consumer centric activations, effective advertising and sustained high levels of distribution. The growth was witnessed not only in the core bars business, but also in the liquids portfolio, led by Lifebuoy Handwash, where the Company continues to invest behind developing the market through a mix of building penetration and increasing consumption.
Detergents category recorded another year of steady growth with a good balance of price and volume growth. Notwithstanding a challenging economic environment, where category growth slowed and the rate of premiumisation came off, for the Company the performance in the category continued to be led by the premium end. Surf continued to lead category premiumisation with double digit growth, buoyed by the continuing momentum on Surf Excel Easy Wash, since its relaunch in the previous year. The performance in Rin was led by the bars portfolio while powders were re-launched towards the end of the year, with an improved product and new thematic communication. Wheel’s performance progressively stepped up over the year, with the second half benefiting from the re-launch of the powders portfolio as significant investments were made to deliver a superior formulation resulting in quality enhancement for the segment. The brand was further supported by a range of impactful activation including the Gold Coin programme, which was well received. The emerging market development categories of Machine Wash (with Surf Excel Matic) and Fabric Conditioners (with Comfort) continued to perform well. Besides, the Company also initiated the creation of Detergent Liquid market in India with the launch of Surf Excel Detergent Liquid. The Company will continue to focus on driving innovations, exercising cost control across the value chain and delivering effective communication to win in the Detergents category.
Household Care category delivered double digit growth during the year on the back of robust volumes. Vim, which continues to delight consumers through superior product quality and strong advertising, is now a Rs. 1000+ crore brand. Innovations, such as the Anti-Germ mix (bar and liquids) and the monthly tub pack, continue to drive consumption and premiumisation in urban India. At the same time, strengthening the presence across key price points in dishwash bars helped reach new consumers in rural India. Domex strengthened the toilet cleaning business through the launch of an innovative product, Domex Zero Stain. The innovation, aimed at hygiene conscious users who have high incidence of stain problem in toilets, has helped fuel brand growth. Domex Toilet Academy (DTA) programme was launched during the year with an aim to eradicate open defecation by building toilets and improving sanitation facilities. Through the right partnerships, DTA is helping promote the importance of safe and hygienic sanitation practices in local communities.
Personal Products
Personal Products categories comprise Skin Care, Hair Care, Oral Care, Colour Cosmetics and Deodorants. In a challenging market environment, where the growth of discretionary categories has been particularly under pressure, the Personal Products segment delivered a healthy turnover growth of 9.2%. Segmental profit was up by 6.1%, as the Company continued to invest for competitive growth in its core categories, whilst building the segments of the future.
Skin Care category registered good growth in a slowing market. Fair and Lovely was re-launched with a new mix - the ‘Best Ever’ Fair and Lovely - a product that was tailor-made to deliver superior skin lightening results in India. Fair and Lovely registered a step up in its growth trajectory post the re-launch. Vaseline Healthy White, with a proposition of not just giving moisturisation but also instant and lasting skin whitening, was very successful, resulting in double-digit growth for the brand. Dove and Lakmé also grew very well during the year, powered by strong marketing inputs. Lakmé delivered a strong performance during the year on the back of a range of exciting innovations that were launched. Lakmé skin forayed into the anti-aging segment with the launch of Youth Infinity skin cream. In addition, under Lakmé, a new Complexion Care (CC) cream was introduced, the Perfect Radiance range was relaunched and the facial cleansing portfolio was revamped with the addition of new Clean Up range. Pond’s launched BB+ cream in India to leverage on the global beauty trend catering to consumers looking for instant optical radiance.
Hair Care delivered a strong year of volume led broad based double digit growth. Dove, Sunsilk and Clinic Plus grew in double digits during the year. The TRESemmé proposition of ‘Salon like hair, at home everyday’ has been well received by consumers. The brand which was introduced in September 2012 has made very good progress and been instrumental in accelerating the premiumisation agenda. The fact that the brand neared the significant milestone of Rs. 100 crores of annual turnover in its very first full year post launch is an example of efficiently leveraging the global Unilever portfolio to win locally with consumers. In addition, the Company launched Toni and Guy, another premium brand from the global Unilever hair portfolio. It is the first time that the Company launched the brand through e-commerce. Going forward, Toni and Guy will be rolled out in select stores across India. The Company continued to focus on market development by investing strongly behind the emerging high potential hair conditioners segment, thereby growing ahead of the market.
In Oral Care, significant investments were made to sustain competitive position in the category, as competitive intensity stepped up dramatically in the course of the year. The Company continued to focus on strengthening the Oral Care brands and the portfolio, despite the intense competitive pressure. Pepsodent Germicheck was re-launched during the year with an improved formulation with better germ attack power. Pepsodent also continued to strengthen its expertise and authority credentials through the Expert Protection range and with a strong dental community programme. The growth in Closeup continued to be led by a range of exciting activations. The Company has also significantly revamped its toothbrushes business model by pruning and sharpening the portfolio during the year.
In the Deodorant portfolio, through Axe, the Company continued to deploy exciting innovations and impactful campaigns. The ‘AXE Blast’ campaign, endorsed by a popular Bollywood youth icon, was well received by consumers. The Company has strong innovation plans for the forthcoming year in this category. The Company currently imports a large portion of deodorants in the aerosol form. Unilever is in the process of implementing a project to establish a world class deodorants manufacturing facility in India. This facility will provide a regular supply of high quality deodorant products to cater to markets across the world, including India.
Lakmé Colours has had an exceptional year with high double digit growth. The reinvention of the brand as ‘Pro-stylist’ across makeup, skin and salon has brought its expert credentials to the forefront through premium innovations in skin care and makeup. In makeup, the Company has launched the 9 to 5 platform - to address working women, many first to market innovations under Absolute like Gel nails and Face Stylist and limited editions like Pop Tints. The premium segment contribution for makeup has grown particularly well in the last two years. The Lakmé brand has seen a step up in investments and all key innovations have been executed through the beauty advisory channel, where expansion of footprint and activation through bringing the brand proposition alive at retail has contributed to the market development. Lakmé has also leveraged the digital communication channel, through ‘how to’ videos, to educate consumers on using makeup and adopting new regimes in skin care.
Foods Beverages
(FandB)
The Foods and Beverages (FandB) portfolio of the Company comprises Tea, Coffee, Processed Foods, Frozen Desserts, Ice Creams, Bakery products and Out of Home operations, including BRU World Café.
During the year, FandB business delivered strong double digit growth in a challenging market context. This was driven by a single minded focus on the core brands and driving market development across key categories. The Packaged Food category continues to represent a significant consumer and business opportunity, given the shifts in the income pyramid, increase in working women, growing health concerns and the need for taste with convenience. The Company is consistently focused on developing newer offerings that can best fulfil existing and emerging consumer needs. The Company continues to focus on driving availability and distribution, alongside building salience for its brands and relevance. In addition, the Company is driving upgradation across categories with strong research and development support from Unilever and a deep insight into Indian consumer and customer needs.
Beverages
The Beverages segment delivered 12.4% turnover growth in the
year, well ahead of the market, on the back of a strong double digit
performance in Tea. This was accompanied by a significant step up in segmental
profits which increased by 22.4%.
At the onset of the year, the Packet Tea market witnessed steep commodity inflation which drove market to volume decline. Despite this environment, the Company delivered competitive and profitable growth. The double digit growth across all brands was driven by a strengthened mix and focused in-market activities.
The Company drove its five leading brand positions across India, with all brands recording healthy volume growth and growing across major geographies. Across both the premium and popular price segments, brands grew competitively. Taj Mahal and 3 Roses continued to drive premiumisation and Red Label and Taaza offered unbranded tea users a good mix of superior, great tasting tea and value. Taj Mahal and Lipton continued to grow the tea bags market through market development. The Company strengthened its position in every segment of tea bags market, particularly flavoured and green tea.
The Instant Coffee market was challenged for growth in the context of steep commodity inflation in the previous year with the accompanying drop in consumption, particularly in the core South markets. In this context, the Company’s focus was to drive back lapsers to the category, through enhanced product experience and market development efforts. The Company also continued to drive BRU Gold – a premium offering, targeted at new age consumers of coffee in the non-traditional markets. BRU Gold met with good success as the franchise grew competitively ahead of markets.
Packaged Foods
The Packaged Foods segment of the Company comprises culinary
products such as jams, ketchups and squashes under Kissan; soups, soupy noodles
and meal makers under Knorr; branded staples (atta and salt) under Annapurna;
bakery products under Modern; and frozen desserts / ice creams under Kwality
Wall’s and Magnum. The segment delivered 10.0% turnover growth with a segmental
profit growing by 65.5% during the year, as the Company continued to drive
efficiencies and mix, while continuing to invest in building this business.
Kissan sustained its strong, consistent performance, delivering another year of double digit growth, driven by impactful activation around unlocking everyday relevance. A strong insight of the ‘Tiffin-moment’ being a stress point in the mother’s life resulted in a solution in the form of ‘Kissan Rolls’, where mothers could give their kids healthy vegetables made tastier with Kissan in the form of a roll. This singular message, along with our reiteration of the fact that Kissan is made from 100% tomatoes through ‘Kissanpur’, made Kissan the brand of choice. During the year, Kissan moved up 70 places in India’s Most Trusted Brands. The consumer preference, along with a strong distribution increase across both Ketchup and Jam, resulted in the business growing significantly faster than the market.
The performance of Knorr in the year was led by Soups, with the convenient Instant Soups single serve format doing particularly well. The Company has increased the focus on core soup markets and ensured that the brand salience is at its highest in these markets. The Company also invested behind the instant ‘cup-a-soup’ range, as this portfolio is driving growth for the soups category, given its consumer offering of tasty and healthier products, at a very affordable price. Knorr Soupy Noodles was restaged at the start of the year. The Knorr Meal Maker portfolio was also re-launched and has met with an encouraging initial response.
During the year, the Company focused on growing the Annapurna business profitably. Towards achieving this objective, the Company made sharp choices on the brand’s footprint and improved its cost structure. As a result, there is a significant progress in brand profitability, which now allows the Company to be competitive and invest back in the brand.
The Company also significantly focused on young nascent experiential marketing. Given that most of the play is in market development categories, it is critical that consumers sample the Company’s products and discover the great taste and convenience that the products offer.
Modern Foods, a portfolio of Bakery Foods, continued its momentum delivering strong double digit growth with improved profitability. The Company stepped up distribution network in new geographies and this initiative has yielded encouraging results. Key innovations like Oats and Ragi Wheat Bread, festive Cakes and Cookies, coupled with improved operational efficiencies contributed well to the growth and profitability of the Modern Foods business.
During the year, the Frozen Desserts business faced a challenging external environment with slowing discretionary spends and a shorter season. But with long term positive outlook, the Company continued investing behind the distribution expansion and building big brands. Cornetto grew ahead of market on the back of distribution and strong communication. Cornetto also remained at the forefront of the Company’s digital strategy. Cornetto’s Facebook page was adjudged as No.1 in India by an advertising magazine. Magnum, Unilever’s most premium ice cream brand, was test piloted in Chennai during 2013 and met with a very good response. Magnum was rolled out to four more cities in the beginning of 2014. Modern Trade performance has been very good in Ice Creams as the Company strengthened its position in this key channel. During the year, the Company also rolled out Perfect Stores programme, a first for the category and the performance across these stores has been leading overall category growth. Availability and visibility are still the core drivers of the business and the Company continued investing behind them. The Company is driving efficiencies in the business, particularly in asset management and infrastructure, while stepping up investments behind big impulse brands, viz. Magnum, Cornetto and Paddle Pop.
Water
Pureit is the world’s largest selling range of water purifiers in non-pitcher and non-faucet mount segment. Pureit was ranked as the most trusted brand in water purifiers in Brand Equity’s 2013 Most Trusted Brands Survey. The brand continues to strengthen its position in a slowing and weak consumer durables market. During the year, Pureit’s new product innovations focused on driving superior functionality and aesthetics at a lower cost, with the launch of Pureit Marvella Slim RO, a premium water purifier at an affordable price. Pureit Marvella Slim RO has helped Pureit strengthen its position in the electric water purifier segment. The launch of ‘Save 3 Gas Cylinders’ communication for storage purifiers was another testimony to Pureit’s pioneering innovativeness in terms of driving market development of water purifiers by establishing cost and convenience advantage over conventional methods of purification. Pureit associated with Miss India World 2013 winners, to spread awareness about the importance of safe drinking water under its ‘Unilever Pureit Protecting Lives Programme’. During the year, the Company focused on widening its distribution reach for its range of purifiers in different retail formats across the country. Substantial progress was made in evolving the Germkill kits business for storage purifiers and also improving in-store execution for the premium range of purifiers. The focus on driving category premiumisation continues with the launch of Pureit Ultima UV + RO towards the end of the year. The product, which by far is the most premium offering from Pureit, offers advanced technology and superior aesthetics met with a very encouraging response from consumers in the early days since its launch.
Exports Business
FMCG Exports
(Unilever India Exports Limited)
Unilever India Exports Limited (UIEL) is a wholly owned subsidiary of the Company, engaged in FMCG Exports business. The focus of the FMCG exports operation is two-fold (a) to develop overseas markets by driving distribution of ethnic brands, such as Kissan, BRU, Brooke Bond, Lakmé, Pears among the Indian diaspora in international markets, (b) to effectively provide cross border sourcing of FMCG products to other Unilever companies across the world.
The Home and Personal Care segment in the exports business has witnessed a stable year, driven primarily by Soaps and Hair Care. Brands like Pears have registered healthy growth in the focused markets through strong advertising and activation support and have received strong accolades from the consumers in the UK market. For Unilever sourcing countries, Lifebuoy has delivered double digit growth post its launch across Asian markets. Fair and Lovely and Vaseline Jelly continue to show stable growth in the key geographies of the Middle East. The Foods and Beverages segment of the business witnessed a modest growth. Instant Tea / Packet Tea and premix witnessed strong double digit growth, whereas coffee sales remained steady. The profitability of the overall segm
ent improved significantly with
focused cost reduction programmes.
Non-FMCG Exports
In the specialty business, which continued to be a part of the Company post the demerger of FMCG Exports business to UIEL, Rice maintained a flat performance, while continuing to focus on expanding geographies, seeding opportunities and marketing/ brand building initiatives to accelerate growth in the coming years.
Leather (Pond’s
Exports Limited)
The Leather business performed well with improved operating profitability and robust double digit sales growth. This performance was achieved through new product designs, excellent customer service, world class quality and cost innovations.
Beauty and Wellness (Lakme Lever Private Limited)
Lakme Lever Private Limited (LLPL), a wholly owned subsidiary of the Company, has 225 salons, of which 57 are Company owned / managed and 168 are franchisee salons. LLPL delivered double digit salon growth for the fourth consecutive year, although the market slowed down by consumers pulling back on discretionary spends. Net expansion improved from 8 salons in the previous year to 36 salons in this financial year. Innovations like the Perfect Radiance and Youth Infinity facial rituals have delighted consumers and driven growth. The flagship Lakmé Absolute Salon, which magnifies the backstage experience with professional styling expertise and bespoke beauty rituals, was launched in Mumbai. The Company will continue to support LLPL to drive growth in this attractive market opportunity.
Hindustan Unilever
Network
Hindustan Unilever Network business consists of three major brands, Aviance (Personal Care), Lever Ayush (Health Care) and Lever Home (Detergents, Household Care and Toothpaste).
The year has been extremely challenging for the entire direct selling industry, including for the Company, due to ambiguity on acceptable norms for direct selling in India. As responsible corporate citizens, the Company has always conducted its business within the framework of Indian law and has recently re-launched its compensation plan to be more competitive. The Company is reviewing the strategy for this business.
Kimberly Clark Lever Private
Limited (KCL)
KCL is a Joint Venture between the Company and Kimberly- Clark Corporation, USA, with infant care diapers as its primary product category. The year witnessed a strong growth delivery by Huggies brand led by Huggies Wonder Pants. The re-launched Huggies Wonder Pants with improved product features and performance had a good growth momentum throughout the year. The low penetration levels in India’s infant care diapers markets offer significant growth potential for this category. This growth opportunity has attracted increased levels of competitive intensity in the recent past with multinationals making significant investments in India.
To participate effectively in this growth opportunity, KCL
aims to bring in regular innovations to the market through sustained and
appropriate investments in the short to medium term. As a Joint Venture
partner, the Company remains committed to this business.
OUTLOOK
Global economic indicators are expected to improve, led by positive prospects in advanced economies. Despite a strengthening external demand, uncertainty continues to loom large on the economic horizon of some emerging economies owing to domestic fragilities. The global economic climate continues to be volatile, uncertain and prone to geo-political risks.
For India, economic activity is expected to improve modestly, driven by global economic revival and moderation in inflation. Upside pressures on inflation and consumption, hinge on the vagaries of the monsoon and the pace of revival of the investment climate will determine to a very large extent India’s economic performance, going forward.
FMCG markets are expected to grow; however, uncertain global economic environment, inflation and competitive intensity continue to pose challenges. While the near term conditions pose a challenge for the economy, the medium to longer term secular trends based on rising incomes, aspirations, low consumption levels, etc. are positive and an opportunity for the FMCG sector, in general and for the Company, in particular.
Cautionary Statement
Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Company’s objectives, projections, estimates and expectations, may constitute ‘forward looking statements’ within the meaning of applicable laws and regulations and actual results might differ
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
· Railway Sidings
· Furniture and Fixtures
· Office Equipments
·
Motor Vehicles
· Others
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Claims against the company not acknowledged as debts |
|
|
|
Income-tax matters |
5459.000 |
4685.600 |
|
Sales tax matters - Rs. 528.400 Millions (March 31, 2013 - Rs. 517.200 Millions) net of tax |
800.500 |
783.500 |
|
Excise duty, service tax and customs duty matters - Rs. 1326.100 Millions (March 31, 2013 - Rs. 937.100 Millions) net of tax |
2008.900 |
1419.600 |
|
Other matters including claims related to employees/ ex-employees, property related demands, etc - Rs. 457.400 Millions (March 31, 2013 - Rs. 528.100 Millions) net of tax (a) It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. (b) The company does not expect any reimbursements in respect of the above contingent liabilities. (c) Future cash outflows in respect of the above are determinable only on receipt of judgements/ decisions pending with various forums/ authorities. |
692.900 |
800.000 |
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2014
(Rs. in Millions)
|
Particulars |
Unaudited Results for the
Quarter ended 30th June 2014 |
|
1.a. Net Sales from Operations (Net of excise duty) [sum of (i) to (iii)] |
75707.800 |
|
i) Domestic FMCG - HPC |
59130.000 |
|
ii) Domestic FMCG - Foods |
13652.300 |
|
Domestic FMCG - Total (i+ii) |
72782.300 |
|
iii) Others |
2925.500 |
|
1.b. Other Operating Income |
1455.600 |
|
1. Total Income from operations (net) [1.a. + 1.b.] |
77163.400 |
|
2. Expenses [sum of (a) to (g)] |
64665.200 |
|
a) Cost of materials consumed |
31028.200 |
|
b) Purchases of stock-in-trade |
9014.600 |
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(146.500) |
|
d) Employee benefits expense |
3356.700 |
|
e) Depreciation and amortisation expense |
667.200 |
|
f) Advertising & Promotions |
9448.800 |
|
g) Other expenses |
11296.200 |
|
3. Profit from operations before other income, finance costs and exceptional items (1-2) |
12498.200 |
|
4. Other income |
2021.100 |
|
5. Profit from ordinary activities before finance costs and exceptional items (3+4) |
14519.300 |
|
6. Finance costs |
62.500 |
|
7. Profit from ordinary activities after finance costs but before exceptional items (5-6) |
14456.800 |
|
8. Exceptional Items - net credit/ (charge) |
396.400 |
|
9. Profit from Ordinary Activities Before Tax (7+8) |
14853.200 |
|
10. Tax expense |
4284.700 |
|
11. Net Profit from Ordinary Activities After Tax (9-10) |
10568.500 |
|
12. Extraordinary Items |
- |
|
13. Net Profit for the period (11+12) |
10568.500 |
|
14. Paid up Equity Share Capital (face value Re. 1 per share) |
2163.100 |
|
15. Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
|
|
16.i Earnings Per Share (EPS) before extraordinary items (of Re. 1/- each) (not annualised): (a) Basic - Rs. |
4.89 |
|
(b) Diluted - Rs. |
4.88 |
|
16.ii Earnings Per Share (EPS) after extraordinary items (of Re. 1/- each) (not annualised): (a) Basic - Rs. |
4.89 |
|
(b) Diluted - Rs. |
4.88 |
|
A. PARTICULARS OF SHAREHOLDING 1. Public
Shareholding - Number of Shares |
708,694,942 |
|
- Percentage of Shareholding |
32.76% |
|
2. Promoters
and Promoter Group Shareholding a)
Pledged/Encumbered - Number of shares |
Nil |
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
NA |
|
- Percentage of shares (as a % of the total share capital of the company) |
NA |
|
b)
Non-Encumbered - Number of shares |
1,454,412,858 |
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
67.24% |
|
PARTICULARS |
Quarter ended |
|
B.
INVESTOR COMPLAINTS (Nos.) |
30th June, 2014 |
|
Pending at the beginning of the quarter Received during the
quarter Disposed of during
the quarter Remaining unresolved at the end of the
quarter |
Nil 22 22 Nil |
|
Particulars |
Unaudited Results for the Quarter ended 30th June 2014 |
|
Segment Revenue (Sales and Other
operating income) Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc) |
38475.800 21595.600 8365.600 5437.800 3029.100 |
|
Total Segment Revenue Less: Inter Segment Revenue |
76903.900 - |
|
Net Segment Revenue |
76903.900 |
|
Segment Results
(Profit before tax and interest from ordinary activities) – Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc) |
5318.000 5966.500 1362.500 590.500 (154.500) |
|
Total Segment Results Less: Finance Costs Add/(Less): Other unallocable income net of unallocable expenditure |
13083.000 (62.500) 1832.700 |
|
Total Profit Before Tax from ordinary activities |
14853.200 |
|
Capital
Employed (Segment assets less Segment liabilities) – Soaps and Detergents Personal Products Beverages Packaged Foods Others (includes Exports, Water, Infant Care Products, etc) |
(4342.400) (6160.300) 2435.900 1574.100 (105.200) |
|
Total Capital Employed in segments Add: Unallocable corporate assets less corporate liabilities |
(6597.900) 50038.300 |
|
Total Capital Employed |
43440.400 |
Notes on Segment Information
1. Segment
Revenue, Results and Capital Employed figures represent amounts identifiable to
each of the segments. Other “unallocable income net of unallocable expenditure”
mainly includes interest, dividend, gain on sale of investments (net), expenses
on common services not directly identifiable to individual segments, corporate
expenses and exceptional items.
Capital Employed
figures are as at 30th June, 2014, 30th June, 2013 and 31st March, 2014.
Unallocable corporate assets less corporate liabilities mainly represent
investment of surplus funds and cash and bank.
2. Previous
period figures have been re-grouped/reclassified wherever necessary to conform
to this period’s classification.
Notes:
1. Net Sales grew by 13.2% during the quarter. Domestic Consumer Business (FMCG + Water) grew by 13.3% with a 13.3% growth in HPC and 13.4% growth in Foods businesses.
2. Operating Profit (Profit from Operations before Other Income, Finance costs and Exceptional Items) for the quarter at Rs. 12498.200 Millions (JQ’13: Rs. 10191.600 Millions) grew by 22.6%.
3. Profit after tax from ordinary activities before Exceptional Items net of tax and prior period tax adjustments (refer note 6 and 7 below) for the quarter at Rs. 10196.800 Millions (JQ’13: Rs. 8851.300 Millions) grew by 15.2%.
4. Employee benefit expense for the quarter includes a one-time credit of an amount of Rs 324.400 Millions on account of adjustments for un-utilized pension corpus relating to earlier periods. (JQ ’13 : Nil )
5. Other income includes interest income, dividend income and net gain on sale of other non trade current investments aggregating to Rs. 881.000 Millions (JQ’13: Rs. 797.400 Millions) and net gain on sale of non current investments Rs 1062.200 Millions (JQ’13 : Rs. 727.500 Millions) and interest on income tax refunds of Rs. 77.900 Millions (JQ’13: Rs. 242.600 Millions).
6. Exceptional items, net credit in JQ’14 include profit on sale of surplus properties Rs. 401.500 Millions (JQ’13: 1062.500 Millions) and restructuring expenses Rs. 5.100 Millions (JQ’13: Rs Nil).
7. Taxation for the quarter includes net write back of excess tax provisions of earlier years amounting to Rs. 105.600 Millions (JQ’13: Rs. 642.100 Millions).
8. Previous period figures have been re-grouped/reclassified wherever necessary, to conform to this period’s classification.
9. The text of the above statement was approved by the Board of Directors at their meeting held on 28th July, 2014.
PRESS
RELEASES
UNILEVER HELPS FAMILIES LIVE MORE SUSTAINABLY AT HOME
21-05-2014 : New Sunlight Living Challenge calls on Mumbai residents to reduce water usage at home to help create a brighter future for children
MUMBAI, 21 May 2014– A new programme from Unilever is challenging Indian families to live more sustainably to create a brighter future for children, while having fun together. The Sunlight Living Challenge forms part of Unilever’s Project Sunlight, a long-term initiative to motivate millions of people to live more sustainably.
The Sunlight Living Challenge calls on people of all ages to help protect the health of the planet by taking small, positive steps towards building a ‘greener’, more sustainable lifestyle in their own homes. Over the next three months, a group of 10 families from across Mumbai will be trying to do exactly that by reducing unnecessary water usage.
The children from these participating families are being urged to become water saviors and focus on saving water in their homes, through small everyday actions. Children will lead this challenge, by spreading awareness about ideas to save water and coming up with water-saving innovations. The families will be quizzed on their Water IQ and their daily progress and experiences will be monitored. At the end of the campaign, the most responsible family will win the ‘Water Champions Award’ and a prize
The launch of the Sunlight Living Challenge is the second phase of Project Sunlight, an ongoing Unilever initiative that has seen millions of people go online and pledge an ‘act of sunlight’: a promise to change their lifestyle to help preserve the planet for generations to come.
The Sunlight Living Challenge is supported by the release of a new Unilever film, "The Way Kids See It". The film brings to life the hopes, dreams and plans for a better world that are nurtured by our children. These children’s stories will motivate families – especially adults – to live more sustainably.
The Sunlight Living Challenge is open to everyone. Those wishing to take part can do so in three simple steps:
Visit www.projectsunlight.co.in to SEE "The Way Kids See It" film and read about the different activities available as part of the Sunlight Living Challenge
ACT by choosing an activity to complete and, in doing so, take small, positive steps to a more sustainable lifestyle at home
JOIN a like-minded community of individuals sharing their personal stories and tips to inspire others to take part using #brightfuture
It also follows international research showing that 70% of children know ‘a lot’ or ‘something’ about four or more of the major global issues, such as climate change and world hunger. [1] The findings revealed that 75% of parents view activities that help protect the environment as a good way to spend time with their kids, while, eight out of 10 children were found to be eager to do more ‘green’ activities together with their family, particularly if they are fun.[2]
The Mumbai challenges follow a similar initiative that took place in the UK last year. It saw 12 families from different parts of the country significantly reduce their household waste and cut their weekly shopping bills just by taking small, everyday steps to live more sustainably.
13% DOMESTIC CONSUMER SALES GROWTH, OPERATING PROFIT (PBIT) UP 23% IN
JUNEQUARTER 2014
Mumbai, July 28th, 2014: Hindustan Unilever Limited announced its results for the quarter ending 30th June 2014.
During the quarter, the Domestic Consumer business grew at 13%, ahead of market, with 6% underlying volume growth. All segments registered double digit growth.
Soaps and Detergents:
Broad based double digit growth
In Skin Cleansing, Dove, Pears, Lux, Lifebuoy, Liril and Hamam grew well. There was a step up in price growth as judicious pricing actions were taken to manage input cost inflation. Lux was re-launched during the quarter with improved product sensorials and aesthetics.
In Laundry, growth was led by the premium segment with Surf sustaining its strong growth momentum and Rin accelerating across both powders and bars. Wheel continued to show improved growth post its re-launch at the end of last year. Comfort Fabric Conditioner continued to lead market development and deliver robust growth. Vim led the performance in Household Care.
Personal Products:
Strong growth in a challenging environment
In Skin Care, growth stepped up with Fair and Lovely, Pond’s and Lakme delivering double digit growth. Fair and Lovely continued to build momentum post
its re-launch in SQ 2013. Pond’s growth was led by premium skin lightening and talc and a new Pond’s Men range was launched during the quarter. Both Lakme and the overall facial cleansing portfolio sustained robust growth.
Hair Care delivered another quarter of volume led double digit growth driven by Dove, with Clinic Plus doing well and TRESemmé continuing to make good progress.
In Oral Care, investments were continued to sustain our competitiveness in the category. Close Up delivered double digit growth with the re-launch of the core and the introduction of the new ‘Diamond Attraction’ variant. The recovery of Pepsodent is making progress.
Colour Cosmetics maintained its high growth momentum across both Lakme and Elle 18. Lakme continues to strengthen its position in premium make up driven by exciting and contemporary innovations.
Beverages: Double
digit growth in Tea and Coffee
Tea delivered a strong volume led performance, driven by strengthened brand equities and focused in-market activities. A new premium offering, ‘Taj Mahal –
A Flavour of Darjeeling’ was added to the portfolio. Green Tea registered another quarter of high growth on sustained market development. In Coffee, growth stepped up on the core andBru Gold continued to do well.
Packaged Foods:
Kissan, Knorr, Kwality Walls and Magnum grow in double digit
Market development activities continue to be the key driver of growth in this segment. The quarter saw a step up in the growth rate as Kissan delivered another robust performance, driven by impactful activation while Knorr growth wasled by Instant Soups which more than doubled sales. Ice Creams registered one of its strongest quarters driven by Magnum which continued to perform very well and through sharper in-market execution on Kwality Walls during an extended summer season.
Water: Strengthening
category leadership
In a challenging durables market, Pureit delivered double digit growth, led by the solid performance of premium devices. The initial response to Pureit Ultima, which was launched in the last quarter with superior functionality and aesthetics, has been very encouraging.
Profitable growth
sustained
The operating environment remained challenging with market growth further slowing down. Overall competitive activity remained high despite the lower media intensity in the quarter. Given this context, investments were sustained at competitive levels across segments with absolute A&P spends increasing by Rs 55 Crores. Cost inflation continued to be managed through a mix of judicious pricing and cost savings. Profit before interest and tax (PBIT) grew by 23% and PBIT margin improved by +130 bps. The results of the quarter include a one time credit of about Rs. 32 Crores (~45 bps) on account of adjustments for unutilized pension corpus relating to earlier periods. Profit after tax before exceptional items, PAT (bei), grew by 15% to Rs. 1020 Crores while Net Profit at Rs.1057 Crores, was up 4%, impacted by the higher exceptional income arising from the sale of properties and tax credits in the base quarter.
Harish Manwani, Chairman commented: “We continue to grow ahead of our markets and have delivered another quarter of strong top and bottom-line performance. While we are seeing headwinds on market growth, consumer spending and inflation, we remain focused on managing the business for long term competitive and profitable growth and implementing our strategy with even greater rigor.”
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.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
80 |
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.