MIRA INFORM REPORT
|
Report Date : |
29.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
PARLE BISCUITS PRIVATE LIMITED |
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Registered
Office : |
North Level Crossing, Vile Parle (East), Mumbai – 400057, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
26.09.1974 |
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Com. Reg. No.: |
11-017797 |
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Capital Investment
/ Paid-up Capital : |
Rs.4.950 Millions |
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CIN No.: [Company Identification
No.] |
U15412MH1974PTC017797 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP16474D |
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PAN No.: [Permanent Account No.] |
AAACP0485D |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Exporter of Biscuits and Allied Products |
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No. of Employees
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (78) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 India’s largest manufacturer of biscuits and confectionery.
It is a well-established company having fine track record. Financial position of the company is sound. Fundamentals of the
company are strong and healthy. Products of the company are well known to
consumers. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for 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.
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict
Implications: Apex court order may alter coal import dynamics. Traders go
slowly 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.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. N. B. Gawre |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-66916911 |
|
Date : |
28.10.2014 |
LOCATIONS
|
Registered Office : |
North Level Crossing, Vile Parle (East), Mumbai – 400057, Maharashtra,
India |
|
Tel. No.: |
91-22-66916911/ 12 / 66916929 / 67130300 |
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Fax No.: |
91-22-66916927 / 66916926 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory 1 : |
SP-2/4, RIICO Industrial Area, |
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Tel No : |
91-1494-246312 |
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Fax No. : |
91-1494-246180 |
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Factory 2 : |
36, |
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Tel No : |
91-1276-2341547 / 48 |
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Fax No. : |
91-1276-2341406 |
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Factory 3 : |
Plot No 3, Sector 1, Integrated Industrial Estate, Rudrapur-263153,
Uttaranchal, India |
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Tel No : |
91-594-4247431 / 32 /33 |
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Factory 4 : |
Village Tambati, P.O. Dount, Taluka Khalapur, District Raigad –
410202, Maharashtra, India |
DIRECTORS
As on 26.09.2013
|
Name : |
Mr. Raj Kumar Satyanarayan Nevatia |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
1, Jogesh CHS Limited, 14, Natwar Nagar Road, Jogeshwari (East),
Mumbai – 400060, Maharashtra, India |
|
Date of Birth/Age : |
02.01.1951 |
|
Date of Appointment : |
07.01.1998 |
|
DIN No.: |
00486912 |
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|
|
Name : |
Ms. Santosh Narwal |
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Designation : |
Director |
|
Address : |
H No 1615, Sector – 6, Bahadurgarh, Jhajjar – 124507, Haryana, India |
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Date of Birth/Age : |
15.07.1969 |
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Qualification : |
M.B.A |
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Date of Appointment : |
17.06.2009 |
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DIN No.: |
02701505 |
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|
|
|
Name : |
Mr. Hariharan Kalathu Iyer |
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Designation : |
Director |
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Address : |
11, Giri Vihar, Rammaruthi Cross Lane No. 3 Naupada, Thane – 400602,
Maharashtra, India |
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Date of Birth/Age : |
01.05.1954 |
|
Date of Appointment : |
15.09.2010 |
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DIN No.: |
03086518 |
KEY EXECUTIVES
|
Name : |
Mr. N. B. Gawre |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS
As on 26.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Parle Products Private Limited, India |
|
49499 |
|
Rajkumar S. Nevatia, Parag K. Khansaheb, Parle Products Private
Limited, India |
|
1 |
|
Total |
|
49500 |
Equity Share Break up (Percentage of Total Equity)
As on 26.09.2013
|
Category |
Percentage |
|
Bodies corporate |
99.99 |
|
Directors or relatives of Directors |
0.01 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Biscuits and Allied Products |
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Products : |
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Imports : |
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Products : |
Chocolate |
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Countries : |
Singapore |
GENERAL INFORMATION
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No. of Employees : |
1500 (Approximately) |
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Bankers : |
· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400 021, Maharashtra, India ·
Allahabad Bank, Kaisarganj, Bahraich – 271903,
Uttar Pradesh, India |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
N. S. Buhariwalla and Associates Chartered Accountants |
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Address : |
201/ 203, Konark Classic, 85, Hill Road, Bandra, Mumbai – 400050,
Maharashtra, India |
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PAN No.: |
AACPB0118L |
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Holding Company : |
· Parle Products Private Limited |
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Wholly Owned
Subsidiary : |
· Arctic Biscuits Private Limited · Antarctic Biscuits Private Limited |
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Subsidiary Company
: |
· Pardee Foods Nigeria Limited (Pardee) · Parlite Foods SARL (Parlite) · Equator Foods Ghana Limited |
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Partnership firm in which the Company is
a Partner (50% share) : |
· Parle Kisan Sewa Kendra |
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Partnership in which the relatives of the
directors of Parle Products Private Limited are partners : |
· Fitrite Packers |
CAPITAL STRUCTURE
As on 26.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000 |
Equity Shares |
Rs.100/- each |
Rs.5.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
49500 |
Equity Shares |
Rs.100/- each |
Rs.4.950 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
4.950 |
4.950 |
4.950 |
|
(b) Reserves & Surplus |
17,811.145 |
15,438.621 |
13,147.724 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
17,816.095 |
15,443.571 |
13,152.674 |
|
|
|
|
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(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
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(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
129.585 |
95.020 |
47.227 |
|
(d) long-term provisions |
188.745 |
588.643 |
368.291 |
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Total Non-current Liabilities (3) |
318.330 |
683.663 |
415.518 |
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(4) Current Liabilities |
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(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
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(b) Trade payables |
4,142.178 |
3,351.113 |
3,077.025 |
|
(c) Other current
liabilities |
912.018 |
619.976 |
506.090 |
|
(d) Short-term provisions |
56.999 |
47.399 |
37.548 |
|
Total Current Liabilities (4) |
5,111.195 |
4,018.488 |
3,620.663 |
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|
|
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TOTAL |
23,245.620 |
20,145.722 |
17,188.855 |
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II.
ASSETS |
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|
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|
(1) Non-current assets |
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|
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(a) Fixed Assets |
|
|
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(i) Tangible assets |
3,880.269 |
3,905.373 |
3,657.546 |
|
(ii) Intangible Assets |
22.970 |
23.977 |
25.258 |
|
(iii) Capital
work-in-progress |
277.913 |
229.611 |
343.571 |
|
(iv)
Intangible assets under development |
4.511 |
0.035 |
0.035 |
|
(b) Non-current Investments |
2,486.474 |
2,068.646 |
2,532.012 |
|
(c) Deferred tax assets (net) |
81.567 |
17.972 |
30.741 |
|
(d) Long-term Loan and Advances |
1,372.462 |
1,311.944 |
922.992 |
|
(e) Other Non-current assets |
12.645 |
4.902 |
3.329 |
|
Total Non-Current Assets |
8,138.811 |
7,562.460 |
7,515.484 |
|
|
|
|
|
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(2) Current assets |
|
|
|
|
(a) Current investments |
4,686.419 |
3,567.787 |
2,743.299 |
|
(b) Inventories |
6,443.409 |
5,739.098 |
4,952.198 |
|
(c) Trade receivables |
1,380.319 |
1,326.247 |
1,032.998 |
|
(d) Cash and cash
equivalents |
1,754.331 |
1,059.196 |
378.452 |
|
(e) Short-term loans and
advances |
770.635 |
770.297 |
523.750 |
|
(f) Other current assets |
71.696 |
120.637 |
42.674 |
|
Total Current Assets |
15,106.809 |
12,583.262 |
9,673.371 |
|
|
|
|
|
|
TOTAL |
23,245.620 |
20,145.722 |
17,188.855 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
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SALES |
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|
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Income |
58115.253 |
55964.113 |
51223.610 |
|
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Other Income |
NA |
NA |
NA |
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TOTAL |
NA |
NA |
NA |
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EXPENSES |
NA |
NA |
NA |
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PROFIT/(LOSS)
BEFORE TAX |
3340.087 |
3401.083 |
2873.969 |
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Less |
TAX |
967.563 |
1110.187 |
897.050 |
||
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PROFIT/(LOSS)
AFTER TAX |
2372.524 |
2290.896 |
1976.919 |
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2,290.896 |
1,976.919 |
1,186.320 |
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Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Transfer to General Reserve |
2,290.896 |
1976.919 |
1186.32 |
|
|
|
BALANCE CARRIED
TO THE B/S |
2,372.524 |
2,290.896 |
1,976.919 |
||
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|
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||
|
|
Earnings /
(Loss) Per Share (Rs.) |
47939.78 |
42994.26 |
39998.81 |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
|
|
|
|
|
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Net Profit Margin (PBT/Sales) |
(%) |
5.75 |
6.08 |
5.61 |
|
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|
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.38 |
19.08 |
20.12 |
|
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|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.22 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.96 |
3.13 |
2.67 |
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 |
4.950 |
4.950 |
4.950 |
|
Reserves & Surplus |
13147.724 |
15438.621 |
17811.145 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
13152.674 |
15443.571 |
17816.095 |
|
|
|
|
|
|
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 |
51,223.610 |
55,964.113 |
58,115.253 |
|
|
|
9.255 |
3.844 |
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
|
51,223.610 |
55,964.113 |
58,115.253 |
|
Profit |
1,976.919 |
2,290.896 |
2,372.524 |
|
|
3.86% |
4.09% |
4.08% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS NOT AVAILABLE
|
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
LITIGATION DETAILS
|
Case Details |
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|
Bench:- Bombay |
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Presentation Date: 17/04/2013 |
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Lodging No.:- |
CAOST/11894/2013 |
Filing Date:- |
17/04/2013 |
Reg. No.:- |
CAW/1241/2014 |
Reg. Date: |
29/04/2014 |
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Stamp No.:- |
RPWST/11893/2013 |
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Petitioner:- |
STATE OF MAHARASHTRA, THROUGH CO |
Respondent:- |
PARLE BISCUITS PRIVATE LIMITED AND CO |
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Petn.Adv:- |
COVERMENT PLEDER (0) |
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District:- |
NANDED |
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Bench:- |
DIVISION |
Category:- |
CONDONATION OF DELAY |
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Status:- |
Pre-Admission |
Stage:- |
FOR ORDERS (CIVIL SIDE MATTERS) |
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Last Date:- |
09/05/2014 |
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Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
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Act. : |
Food and Safety Standards Act |
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OPERATIONS
The sales for the year amounted to Rs.58115.253 Millions compared to previous years sales of Rs.55964.113 Millions showing an increase of 3.84% in sales.
The Net Profit before Tax is Rs.3340.087 Millions as compared to Rs.3401.083 Millions for the previous year showing a decrease of 1.79%.
SUBSIDIARY
ARCTIC BISCUITS PRIVATE LIMITED
This company is incorporated in Bangladesh under Bangladesh Companies Act, 1994. The company has reported a loss of 9379099 Takas compared to last year profit of 7958062 Takas. The sales turnover is 154176164 Taka against last year sales turnover of 213,979,023 Taka.
PARLITE FOODS SARL, CAMEROON
This company is incorporated in Cameroon under the OHADA Uniform Act relating to Commercial Companies and Economic Interest Group. The company commenced commercial production in July 2006. The company has reported a profit (after tax) of 716,619,617 CFA Francs for the period 1.04.2013 to 31.03.2014 compared to last year profit of 356,006,547 CFA Francs. The sales turn over is 8,249,316,500 CFA Francs against last year sales turnover of 7,577,835,498 CFA Francs.
PARDEE FOODS NIGERIA LIMITED, NIGERIA
Parle Biscuits Private Limited Standalone Balance Sheet for period 01/04/2013 to 31/03/2014 This company is incorporated in Nigeria under The Companies and Allied Matters Act, 1990. The company commenced commercial production on April 2007. The company has reported a profit after tax of 1347,677,849 Naira for the period 1.04.2013 to 31.03.2014 compared to last year profit of 599,830,607 Naira. The sales turn over is 10,855,820,233 Naira against last year sales turnover of 9,189,251,540 Naira.
ANTARCTIC BISCUITS PRIVATE LIMITED
Antarctic Biscuit Private Limited is a Company incorporated on 21.11.2008 in Nepal , which is a 100% Subsidiary of Parle Biscuits Private Limited. The Financial year of the Company is from 15 July to 14 July. The production has commenced on 28.05.2010. The company has reported a profit of 14,302,404 NPR (after tax) for the period 1.04.2013 to 31.03.2014 compared to last year profit of 6,503,416 NPR NPR. The sales turn over is 321,798,984 NPR against last year sales turnover of 349,579,748 NPR.
EQUATOR FOODS GHANA LIMITED
Equator Foods Ghana Limited is a Company incorporated on 9.05.2011 in Ghana , which is a Subsidiary of Parle Biscuits Private Limited. The financial year of the Company is from January to December. The production has commenced on 19.03.2012. The company has reported a loss of GHC 10,644,651 (after tax) for the period 1.04.2013 to 31.03.2014 compared to last period loss of GHC 56,15,706 (after tax).
INCORPORATION OF A JOINT VENTURE IN UAE
The Company desires to incorporate a Joint Venture in Ras Al Khaimah Free Trade Zone, Ras Al Khaimah, United Arab Emirates with Agro Ventures FZC (Registration No.RAKFTZA-FSC-4012774) representing Doshi Group, and Export Trading Company Limited, UAE (Registration No. IC/3686/10) representing ETG Group, both the Companies are incorporated in UAE, mainly for investing in projects abroad to expand our business activities outside India under any name approved by Ras Al Khaimah Free Trade Zone Authority .
The Share capital of the proposed International Company will be AED 10,000.00 divided into 1000 shares of Aed 10.00 each in which the Company will subscribe 600 Shares of Aed 10.00 each, M/s .Agro Ventures FZC, will subscribe 160 Shares of Aed 10.00 each and M/s. Export Trading Company Ltd, will subscribe 240 Shares of Aed 10.00 each.
INCORPORATION OF A SUBSIDIARY COMPANY IN
SINGAPORE
The Company has decided to incorporate a Special Purposes Vehicle Company (SPV) in Singapore and invest by way of subscription to the equity share capital in or loan to the said company to be incorporated as a wholly owned subsidiary of Parle Biscuits Private Limited in Singapore. The main purpose of the new Company is lending money for the upcoming projects outside India. The name of the Company to be incorporated in Singapore is Oceanic Holdings Pte Limited with an initial share capital of SGD 100.
INCORPORATION OF A JOINT VENTURE IN
ETHIOPIA
The Company has desired to incorporate a Joint Venture in Ethiopia with ETC Agro, India and ETG Ltd, Tanzania (ETG) for the manufacture and sale of biscuits and confectionaries in Ethiopia. The said J.V. Company will be incorporated through a holding company to be incorporated for this purpose in Dubai, U.A.E in which Parle Biscuits Private Limited will hold 60% in its Equity, ETG will hold 24% in its Equity and ETC Agro will hold 16% in its Equity.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10493158 |
24/04/2014 |
120,000,000.00 |
Kotak Mahindra Bank Limited |
27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra - 400051, India |
C04295747 |
|
2 |
10133414 |
11/04/2014 * |
1,250,000,000.00 |
Kotak Mahindra Bank Limited |
27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra - 400051, India |
C04295085 |
*Date of modification Charges
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
NEWS:
ROOTED AND TRUSTED: HOMEGROWN BRANDS LIKE PARLE, TATA SALT, AMUL &
FEVICOL RISE UP THE RANK
Brand India is on a roll, going by the recent speeches from
Indian Prime Minister Narendra Modi. Even the frequency with which global CEOs
have been making India a must-visit spot is an indication of its clout. The
debate rages on about the growth story being real or a bubble, but the jury on
Brand Equity's annual Most Trusted Brands survey has made up its mind.
Four Indian brands have gone up the trust
ranks. Equally noteworthy is the fact that these brands — Parle, Tata Salt, Amul and
Fevicol — have entered the Top 50 overall rankings.
Parle, a brand that has been around for long and is
ubiquitous by its sheer presence across the length and breadth of the country,
is on a sweet high having moved up to 14 from 37 in 2013. This strong showing
is an outcome of its various brands — the flagship Parle-G, which incidentally
is the highest selling biscuit in the world, as well as others like Monaco,
Krackjack and Hide n Seek.
Says Mayank Shah, deputy marketing manager, Parle Products,
"For a brand to enjoy the kind of trust we do, it needs to be true to who
it is, be relevant and be the consumers' friend by helping them out."
Equally sweet has been the journey of Tata Salt, the
category leader from Tata Chemicals that was launched in 1983 and today
occupies nearly 57 per cent of the overall market.
In the survey rankings the brand has moved up to 16th
position (from 28 in 2013) and Richa Arora, COO - consumer product business,
Tata Chemicals attributes the success of the brand to multiple reasons:
consumers' propensity to remember the brand's pioneering efforts like
addressing the micronutrient deficiency issue through iodised salt, consistent
delivery on quality as well as the communication over the years.
For the last 12 years the eponymous salt brand has been
positioned around the 'desh ka namak' thought and has been taking that core
proposition further. "The renditions (of the core thought) have changed to
make it more contemporary but the spirit of 'desh ka namak' has remained strong
and consistent," she adds.
The utterly butterly girl, gracing Amul butter packs since
the 1960s, remains strong and healthy as the brand moves up to the 44th rank
this year (from 68 in 2013). Amul, a brand with firm Indian roots, is a great
example of a successfully run cooperative organisation. Out of every rupee
spent by consumers on product, 80 paise goes back to the milk producer.
From milk to cheese, beverages, ghee, milk powders and ice
cream the brand has come a long way and today finds a place in most Indian
households. RS Sodhi, managing director, GCMMF (Amul) demystifying the winning
formula says, "To succeed in selling, one should have a good product, easy
availability to its intended consumer and awareness about that product to the
consumer."
If you are able to live up to the expectation of consumers
and delight them in terms of price and quality, the brand builds itself, he
adds. And so it remains top of mind even with a bare bones approach to
advertising and a not very expansive marketing budget.
CHILD'S PLAY: BRANDS
CASH IN ON MICKEY MOUSE, ANGRY BIRDS, CHHOTA BHEEM MERCHANDISE
The confectionary giant Parle Products
had to create excitement for its Milk Shakti cream biscuits
basis a valuable consumer insight. Typically regular cream biscuits though
liked by the kids are resisted by the mothers who are the gatekeepers on the
kids eating habits, and on the other hand the dogood biscuits are something
that the kids do not take to easily, according to Mayank Shah, group product
manager, Parle Products.
The solution came from the iconic characters Tom & Jerry
who were licensed and imprinted on the biscuits before they were baked. The
characters helped the kids relate to it even while keeping the mom happy. Its
success has already made the brand launch another variant - this time a twin
cream offering in chocolate and strawberry flavours continuing with the
character imprint.
In its pursuit of strengthening its portfolio in the kids
segment in India, the lighting division of the Dutch major Philips decided to
take the character route by launching Disney-themed LED lighting products.
Hero Cycles, a leading player in the kids cycle
category with over 30 per cent share, was convinced about the potential of this
segment, more than any other. Earlier this year
they launched the range of branded bicycles: Mini Mouse and Princess for girls
and Mickey Mouse, Spiderman and Cars for boys, amongst others.
"The characters work very well for the kids by
increasing their preference since it is akin to owning the character"
shares Rajesh Gulati, president, corporate strategy and planning, Hero Cycles.
With this offering, the brand is looking at a completely new segment, the
gifting market, in a big way.
The new range is currently selling 5000 units a month and
plans are to clock 100,000 pieces by March 2015. These and many other brands in
India have started to look at character licensing keenly in a bid to increase
sales as well as create a favourable disposition for their brand in a cluttered
market.
While licensing in the US and Europe is at a much more
evolved level, India is just about starting to get there. Disney is leveraging
the art of storytelling and creation of sustainable IPs very well having
emerged as the largest brand licensor in India.
Shares Abhishek Maheshwari, head, consumer products, Disney
India, "Over Rs.10000.000 Millions is being spent on Disney products by
consumers in India and there are over 3000+ SKUs in the market that range from
toys to stationery fashion to home solutions,
food, health and beauty."
The iconic characters of Mickey-Mini Mouse, Toy Story, Cars,
Superheroes, Star Wars and the rest are becoming ubiquitous. Closer home,
Chhota Bheem created by Hyderabad-based Green Gold Animation has emerged as
pure-play Indian success story.
Launched in 2008, the character amassed a huge fan following
amongst kids and families in a short span. As per Rajiv Chilaka, managing
director & founder, Green Gold, today the character has a life much beyond
the small screen and is present in over 3000 SKUs ranging from comic books,
home video to apparel, toys, back to school merchandise, shoes etc.
Nearly 40 per cent of it's revenues are coming from the
licensing and merchandising opportu- nities that range from juice packs to a
soon to be launched mosquito repellent brand. Chhota Bheem has even reached
global shores - in Indonesia it is telecast in the local language and in
Singapore in Tamil to cater to the resident population there.
Adds Chilaka, we are looking at the global market keenly and
have plans to go global not just in content but even in L&M (licensing
& merchandising) space. Even brand owners have started seeing
character-licensing differently. Says Anand Singh, director, Cartoon Network
Enterprises, South Asia, Turner International India, "Earlier there were
fears of cannibalisation and about the character becoming more prominent than
the product." A slew of successful campaigns with brands like Cadbury Gems
& Dairy Milk, McVities, Real juice have helped them realise that character
licensing actually complements marketing activities, he adds.
Ben10, the biggest boy's franchise globally, is one of
Turner's most successful characters and has more than 75 licensees across
categories in India. More localised success stories could be coming to the fore
in which Bollywood is emerging as a key player. Already films like Krrish 3 and
Dhoom 3 have opened up the immense possibilities of licensing.
Yash Raj Films' Dhoom 3, released last year managed more
than 20 partners that ranged from a specially created Dhoom tyre launched by
Ceat to Barbie collector dolls and Hot Wheels bikes from Mattel, marking the
California based toy company's maiden merchandising association with Bollywood.
FOOD AND PERSONAL CARE MARKETERS LIKE PEPSICO AND PARLE PRODUCTS GO
LOCAL EN MASSE
NEW DELHI: Three years ago when, for the first time in its
history, beverage maker PepsiCo tweaked the taste of its Pepsi cola brand with
higher fizz in Andhra Pradesh to challenge rival Thums Up's dominance in the
state, it was an unheard-of move. The jury is still out on whether it paid off
well for PepsiCo or not, but increasingly makers
of consumer goods, from biscuits and packaged snacks to beverages and even hair
oil, are customising products to cater to regional preferences.
Reason: they are either unable to challenge regional brands
or capture market share in smaller but captive
markets.
"The next wave of growth in packaged consumer products
will come from community-specific and regional-focused efforts. Many companies
are working closely with us in this direction," says Devendra Chawla,
president (food & FMCG) at the country's largest organised retailer Future
Group, although he declined to mention specific examples.
PepsiCo Foods' Rs.10000.000 Milliosn plus national snack
brand Kurkure is now selling locally relevant
variants like Mumbai Chatpata, Bengali Jhaal and South Spice Mix mainly in
captive markets like Maharashtra,
Kolkata and Chennai, respectively. India is among the few markets where the New
York-headquartered PepsiCo has regionalised its brands to such minute detailing. Says Vidur Vyas, PepsiCo's marketing director
- foods: "Making Kurkure regionally relevant is core to our strategy. It
helps us gain share in key markets."
PepsiCo has been facing stiff competition from local brands
like Balaji and Garden in the west and Haldiram's
in the north. It has been losing share to such regional biggies in the
Rs.75000.000 Millions salty snacks market, a category it dominated till four
years back.
The country's largest biscuit maker Parle Products
challenged West Bengal stronghold brand Bisk Farm by launching its Top crackers
in the state last year in the buttery segment, and managed 15-20% share in
general trade within the year. Enthused, Parle rolled out products like
Fulltoss Jhalmuri Kolkata Bhel in that region. Says Mayank Shah, group product
manager at Parle Products: "Locally relevant products have helped us not
only help in getting a foothold in new markets, but they are also great testing
grounds."
British firm United Biscuits, maker of McVitie's, says it
has begun customising its products for different cities. The digestives segment
is growing more rapidly in markets like Chennai;
indulgence products like cream biscuits sell better in Punjab and Delhi.
"Regional differences are becoming quite stark
now...the metros especially have a life of their own, and are almost like
unique countries," says Jayant Kapre, president, UB. The biscuits
category, at 12,000 crore, has been growing at 10-12%, but is fraught with
challenges like low margins and price-sensitivity.
Future Group which rolled out its own brand Ektaa two years
back, under which it only sells commodities catering to regional tastes, is
looking to add more variants. It has been selling rice in variants like Red
Matta from Kerala, Sona Masoori from Andhra Pradesh, Govind Bhog from West
Bengal and Basmati from Punjab at its Big Bazaar and Food Bazaar stores under
the Ektaa umbrella. Future Group's Chawla says: "India is like many
countries put together as taste varies every 200 km; besides, the size of each
region is large enough to launch region-focused brands." The retailer
expects Ektaa to be a 100-crore brand within two years.
Dairy giant Amul, which sells butter, ice-cream and cheese
nationally, says its regional products like fermented milk drink Shrikhand has
captive markets like Gujarat and Maharashtra. The same is the case with Amul
Basundi, a traditional Gujarati dessert made from concentrated milk. Says R S
Sodhi, MD of Gujarat Cooperative Milk Marketing Federation (GCMMF), maker of
Amul: "The regional products don't have a huge national market but they
are meeting our expectations and those of consumers as well. They complete our
portfolio."
Customisation is not just restricted to foods but personal care products as
well. Dabur, which makes Vatika shampoo and Amla hair oil, is calling the same
product different names across cities to drive consumption. So its Amla hair
oil is called Amla Usiri in Hyderabad, and Amla Nelli in Tamil Nadu. Says
George Angelo, Dabur's executive director - sales: "The reality is India
is a continent in itself - a mix of different markets. So, you need to add a
distinct local flavour to your brands to help them gain acceptability."
ELECTION FEVER: COMPANIES LIKE COCA-COLA, HERO TO PUSH LOW-PRICED
PRODUCTS; BUT PARLE, GODREJ NOT ENTHUSED
NEW DELHI|KOLKATA: Any large grouping of people forced to
sit around waiting for hours is a good target for savvy marketers. India's
election season should therefore be a significant opportunity for product
sampling and sales, thanks to the spate of mass gatherings in the run-up to
voting. But views on this are mixed. While Coca-Cola and shampoo maker
CavinKare are among those looking to exploit campaign time, others prefer to
stay well clear. Consumer goods companies such as Parle Products, Godrej Consumer Products, Marico, Dabur and Rasna don't
plan any increased distribution or sales pitches. Some said this was because
political parties often expect donations and products for free, adding that
mismanagement is rife at election rallies.
But Tata Global Beverages and two-wheeler maker Hero
MotoCorp, along with Coca-Cola and CavinKare, are planning on pushing
low-priced products in key constituencies or drumming up election fever through
high-decibel advertising.
While election meetings offer a captive audience, a direct
association with election gatherings would not really work out as an
opportunity, said Mayank Shah, group product manager at Parle Products.
"Everything is arranged by political parties," Shah said. "We
have, in any case, very good distribution existing in rural markets, even in
remote villages where rallies aren't even held."
Consumer sentiment is unlikely to shift during elections and
special initiatives don't make sense for that reason, said Vivek Gambhir,
managing director of Godrej Consumer Products, which makes Cinthol soaps and
Good Knight mosquito repellent. "However, we
are hopeful of a boost in consumer spending after the elections with stability,
so it makes sense to prepare ourselves for that," he said.
Companies typically take advantage of mass public events to
engage in marketing exercises.
Last year's Kumbh Mela saw such initiatives by companies such as Hindustan
Unilever, Coca-Cola and Emami.
But the elections are a different matter. Soft drink
concentrate maker Rasna CMD Piruz Khambatta said company is worried about the
impact of elections on business. In rural markets, distribution of products
often slows at election time as people are busy with rallies. "Moreover,
hoarding and billboard costs have gone up since political parties too have
started putting their ads. It's a challenging situation since it coincides with
peak summer season," said Khambatta.
The CEO of a leading national retail chain spoke in a
similar vein, saying the company is in a hurry to run most of its promotions
before polls since a large section of consumers in cash-rich and politically
motivated markets such as Uttar Pradesh and Andhra Pradesh spend little on
purchases and instead funnel the money into
rallies at poll time.
"We are planning as many promotions as possible before
the elections, since there will invariably be a dip in consumption in the next
quarter. However, the impact will be relatively lower in the top cities where
consumption is led by credit and debit cards," he said.
A senior official at a top Indian durable maker with
significant presence in rural markets said the brand will steer clear of any
campaign or sales push adjacent to poll rallies.
"There are two risks - it may send wrong connotations
of the brand getting associated or closer to some political party and there are
risks of demand for donation to political parties. We have, in fact, faced such
a situation before," he said.
Coca-Cola, maker of Thums Up and Sprite aerated drinks, said
it would focus on introducing rural consumers to its beverages by distributing
products in key constituencies. "We are strongly focused and alive to the
rural opportunity and are leveraging our distribution and supply chain to meet
consumer demand," a company spokesman said.
Chennai-based CavinKare is also looking forward to the
elections. It will push sales of its Chik shampoos and fruit drinks since these
products would have strong demand, especially during poll rallies.
Others such as Britannia and Emami are still weighing their
options. Emami director Aditya V Agarwal said the company is looking at the
idea of promotions and sampling its summer products such as Navratna hair oil,
Boroplus talcum powder and Zandu balm which would have a direct connect with
people.
"The opportunity for sampling is huge, but we are still
reviewing the strategy with caution since it can get nasty. There are
possibilities that the brand may get wrongfully associated with a political
party or leader and whether Election Commission may have any issues," said
Agarwal.
PARLE CUTS PRICES OF MASS-END BRANDS, OTHERS MAY FOLLOW
Parle Products has taken an indirect
price cut on Parle G by about 4% (Rs 5 for a pack of 75 gm now as against 72 gm
earlier), which makes it 10% cheaper to Britannia's Tiger, its rival in the
glucose biscuit segment, according to a Religare report.
MUMBAI: Parle Products, the leader in the overall biscuit
space, has challenged rival Britannia Industries by cutting the price of some
of its popular and mass-end brands, which could trigger a price war in these
segments.
Parle Products has taken an indirect price cut on Parle G by about 4% (Rs 5 for
a pack of 75 gm now as against 72 gm earlier), which makes it 10% cheaper to
Britannia's Tiger, its rival in the glucose biscuit segment, according to a
Religare report. The Mumbai-based biscuit major has also cut the price of its
Bourbon biscuits by 17% to Rs.20 for a pack of 150 gm, down from Rs.24. The
price change positions the brand at a marginal discount to Britannia's Bourbon,
which is priced at Rs 26 for a 100 gm pack.
The Religare report said the price cut also positions Parle's Bourbon at a
discount to Mcvitties, which has priced its Bourbon at Rs 24 for a 100 gm pack.
The move comes even as raw material prices are not entirely benign.
While Parle Products did not divulge its strategy on price
change, analysts suggest that Parle's decision could be in response to a slow
growth in the glucose segment of the biscuit industry, with an objective to
boost volumes.
So would Britannia give a fitting response? "We expect that in response to
slowing industry growth, there will be a slew of interventions from
competition, and our responses will be in line with long-term brand
strategy," said a Britannia spokesperson.
"Most price increases in the current financial year - to the tune of
around 1-1.5% last quarter - have been on account of cost inflation, which has
been moderate. We ensure that in a highly competitive industry we do not lose
consumer preference on a key attribute like value-delivered," the
Britannia spokesperson said.
In the last six months, the price of wheat, a key commodity that goes into
making biscuits, has risen by up to 8%, although sugar prices have come down by
around 7%.
In the Rs 21,000-crore plus biscuit market, analysts said the share of
organized market has gone up to more than 50%. With consumers upgrading to the
more premium variety of biscuits, the glucose biscuit market is said to be
slowing down as compared to its pace of growth a decade ago. By way of a price
cut and increase in the grammage, Parle Products could be playing the discount
card to woo consumers and, at the same time, increase volumes.
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.61.35 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.77.92 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
78 |
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.