MIRA INFORM REPORT
|
Report No. : |
314846 |
|
Report Date : |
01.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
BUNGE INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
601C and 601D, 6th Floor, The Capital, C-70, G-Block, Bandra-Kurla
Complex, Bandra (East), Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
12.03.1958 |
|
|
|
|
Com. Reg. No.: |
11-174267 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 147.993 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U15421MH1958PTC174267 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG7034K |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Trading in crude Edible oil, Agricultural
commodities, and other related activities and also Manufacturing and Trading of
Vanaspati, Edible Oils and Bakery Fats and Margarine. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 20269000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. The company has achieved better growth in its sales turnover whereas
has reported a loss from its operations during FY14. The rating also takes in to consideration operational, managerial and
financial support that Bunge India receives from its parent company. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The company can be considered 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.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term Rating = A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
March 03, 2015 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term debt = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
March 03, 2015 |
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.
LOCATIONS
|
Registered Office : |
601C and 601D, 6th Floor, The Capital, C-70, G-Block,
Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-40509898/ 99/ 40509500/ 26533768 |
|
Fax No.: |
91-22-40509898/ 99 |
|
E-Mail : |
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|
Website : |
|
|
|
|
|
Head Office: |
1st Floor, No.1, Old Air Port Road, Kodihall, Bangalore – 560008, Karnataka, India |
|
Tel No.: |
91-80-41265075 |
|
Fax No.: |
91-80-41265075 |
|
|
|
|
Factory 1: |
N.H. 12, P.O. Ramganj, Balaji District Bundi, Jaipur – 323001, |
|
Tel No.: |
91-747-2444840/ 2447623 |
|
Fax No.: |
91-747-2444525 |
|
|
|
|
Factory 2 : |
Foods Factory, Edamalaipatti, Pudur Trichy – 620012, |
DIRECTORS
AS ON 26.09.2014
|
Name : |
Mr. Samir Prempal Jain |
|
Designation : |
Managing director |
|
Address : |
201, Tower 11, Planet Godrej, Keshav Rao Khadye Marg, Mahalaxmi (East), Mumbai, Maharashtra, India |
|
Date of Birth/Age : |
22.09.1972 |
|
Qualification : |
B.Com and C.A |
|
Experience : |
19 Years |
|
Date of Appointment : |
01.03.2012 |
|
PAN No.: |
AAIPJ2477N |
|
DIN No.: |
05255615 |
|
|
|
|
Name : |
Michael David Goettl |
|
Designation : |
Director |
|
Address : |
238, Orchard Blvd, # 40 - 07, Singapore, 237973, Singapore |
|
Date of Birth/Age : |
15.03.1963 |
|
Date of Appointment : |
21.03.2014 |
|
DIN No.: |
06817384 |
|
|
|
|
Name : |
Mr. Sanjay Jindal |
|
Designation : |
Whole-time director |
|
Address : |
C-201, Raheja Regency, #90, Santhome High Road, R.A. Puram, Chennai, 600028, Tamilnadu, India |
|
Date of Birth/Age : |
28.05.1966 |
|
Qualification : |
ICWAI |
|
Experience : |
22 Years |
|
Date of Appointment : |
21.03.2014 |
|
PAN No.: |
AAAPJ0423C |
|
DIN No.: |
06804128 |
|
|
|
|
Name : |
Mr. Alok Mishra |
|
Designation : |
Whole-time director |
|
Address : |
Shah Arcade, Fl No. 1-736, Pl No. 4/5, Sec - 06, Kharghar, Tal - Panvel, Raigad - 410210, Maharashtra, India |
|
Date of Birth/Age : |
16.12.1971 |
|
Qualification : |
LLB |
|
Experience : |
16 Years |
|
Date of Appointment : |
21.03.2014 |
|
PAN No.: |
AJCPM0232H |
|
DIN No.: |
06804127 |
|
|
|
|
Name : |
John Joseph |
|
Designation : |
Director |
|
Address : |
Flat No. 201 Hillscapes, Pashan-Baner Link Road, Pashan, Pune - 411021, Maharashtra, India |
|
Date of Birth/Age : |
26.05.1966 |
|
Date of Appointment : |
31.07.2014 |
|
DIN No.: |
01520069 |
KEY EXECUTIVES
|
Name : |
Gurdeep Kaur |
|
Designation : |
Secretary |
|
Address : |
B-25/397, Gobind Nagar, Near Sheranwala Gate, Patiala - 147001, Punjab, India |
|
Date of Birth/Age : |
16.09.1976 |
|
Date of Appointment : |
10.02.2012 |
|
PAN No.: |
AUXPK1340G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.09.2014
|
Names of Shareholders |
No. of Shares |
|
Bunge Mauritius Holdings Limited, |
14799237 |
|
Vipin Gupta jointly with Bunge Mauritius Holdings Limited, Mauritius |
25 |
|
|
|
|
Total |
14799262 |
AS ON 26.09.2014
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
99.99 |
|
Others |
0.01 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trading in crude Edible oil, Agricultural
commodities, and other related activities and also Manufacturing and Trading of
Vanaspati, Edible Oils and Bakery Fats and Margarine. |
|
|
|
|
Brand Names : |
-- |
|
|
|
|
Agencies Held : |
-- |
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|
Exports : |
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|
Products : |
-- |
|
Countries : |
-- |
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Imports : |
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|
Products : |
-- |
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Countries : |
-- |
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Terms : |
|
|
Selling : |
-- |
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|
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|
Purchasing : |
-- |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
·
Standard Chartered Bank Sansad Marg, New Delhi, Delhi, India ·
State Bank Of Bikaner and Jaipur I.E. Branch, Kota, Rajasthan, India |
||||||||||||||||||||||
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Facilities : |
|
||||||||||||||||||||||
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Tower
3, 27-32nd Floor, India Bulls Finance Centre, Elphinstone Mills Compound,
Senapati Bapte Marg, Elphinstone (West), Mumbai-400013, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AACFD4815A |
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|
|
|
Cost Auditors : |
|
|
Name : |
N.I. Mehta and Company Cost Accountants |
|
Address : |
115, Jolly Maker Chambers, No. 2, Nariman Point,
Mumbai – 400021, Maharashtra, India |
|
E-Mail : |
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|
|
|
|
Holding company : |
Bunge
Mauritius Holdings Limited |
|
|
|
|
Ultimate Holding Company : |
Bunge
Limited, Bermuda |
|
|
|
|
Bunge Group Company : |
·
Bunge S.A.-Geneva (BSA) ·
Grains and Industrial Products Trading Pte.
Ltd. (GRIPT)\ ·
Bunge Handelsgesellschaft MBH (BHH) ·
Bunge AgriTrade S.A. (BAT) ·
Bunge North America (BNA) ·
Bunge London Limited (BLL) ·
Ecoinvest SA, Switzerland (ECO) ·
Bunge Management Services Inc. (BMSI) ·
Bunge Chia Tai (Tianjin) ·
Grain and Oilseeds Limited (BCT) ·
Bunge Vietnam Limited (BVL) ·
Bunge Barcelona Limited (BBL) |
|
|
|
|
Subsidiary of Ultimate Holding Company : |
·
Bunge Global Markets Inc., USA (BGM) · Bunge Agribusiness Singapore Pte. Limited (BAS) |
|
|
|
|
Associate : |
Bunge
Management Services Incorporation |
|
|
|
|
Subsidiary company : |
Bunge
Foods Private Limited [U74120MH2012PTC236747] |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14,799,262 |
Equity Shares |
Rs.10/- each |
Rs. 147.993 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 |
147.993 |
147.993 |
147.993 |
|
(b) Reserves & Surplus |
6946.300 |
7990.100 |
5441.500 |
|
(c) Money
received against share warrants |
0.007 |
0.007 |
0.007 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
7094.300 |
8138.100 |
5589.500 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
4579.000 |
4586.100 |
4594.800 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
161.500 |
72.800 |
|
(c) Other long term
liabilities |
197.400 |
152.000 |
132.500 |
|
(d) long-term
provisions |
280.900 |
142.600 |
120.400 |
|
Total Non-current
Liabilities (3) |
5057.300 |
5042.200 |
4920.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
8356.600 |
4697.700 |
1902.200 |
|
(b) Trade
payables |
5404.900 |
20131.200 |
6637.500 |
|
(c) Other
current liabilities |
62973.900 |
97805.700 |
40265.700 |
|
(d) Short-term
provisions |
21.900 |
35.500 |
21.300 |
|
Total Current
Liabilities (4) |
76757.300 |
122670.100 |
48826.700 |
|
|
|
|
|
|
TOTAL |
88908.900 |
135850.400 |
59336.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
4754.100 |
2373.200 |
1852.500 |
|
(ii)
Intangible Assets |
1973.300 |
2284.300 |
2635.000 |
|
(iii) Capital
work-in-progress |
99.300 |
2103.200 |
1123.300 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.100 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
332.100 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3162.600 |
728.300 |
973.200 |
|
(e) Other
Non-current assets |
22.600 |
22.300 |
2.000 |
|
Total Non-Current
Assets |
10344.100 |
7511.300 |
6586.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
529.100 |
352.900 |
0.000 |
|
(b)
Inventories |
8600.500 |
4392.300 |
3302.000 |
|
(c) Trade
receivables |
58791.700 |
97561.100 |
43347.500 |
|
(d) Cash
and cash equivalents |
8156.500 |
24906.900 |
5458.000 |
|
(e)
Short-term loans and advances |
2472.000 |
1091.100 |
643.200 |
|
(f) Other
current assets |
15.000 |
34.800 |
0.000 |
|
Total
Current Assets |
78564.800 |
128339.100 |
52750.700 |
|
|
|
|
|
|
TOTAL |
88908.900 |
135850.400 |
59336.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
60970.100 |
46626.200 |
26342.600 |
|
|
|
Other Income |
2490.400 |
1418.500 |
839.500 |
|
|
|
TOTAL |
63460.500 |
48044.700 |
27182.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
63560.800 |
47611.000 |
26915.100 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(100.300) |
433.700 |
267.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
53.500 |
49.800 |
17.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(153.800) |
383.900 |
249.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(49.400) |
129.000 |
80.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(104.400) |
254.900 |
169.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
790.600 |
535.700 |
366.200 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
686.200 |
790.600 |
535.700 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(7.05) |
17.22 |
11.45 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
(0.17) |
0.55 |
0.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.17) |
0.29 |
0.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02) |
0.05 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.82 |
1.14 |
1.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02 |
1.05 |
1.08 |
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 |
147.993 |
147.993 |
147.993 |
|
Reserves & Surplus |
5441.500 |
7990.100 |
6946.300 |
|
Money received against share warrants |
0.007 |
0.007 |
0.007 |
|
Net
worth |
5589.500 |
8138.100 |
7094.300 |
|
|
|
|
|
|
long-term borrowings |
4594.800 |
4586.100 |
4579.000 |
|
Short term borrowings |
1902.200 |
4697.700 |
8356.600 |
|
Total
borrowings |
6497.000 |
9283.800 |
12935.600 |
|
Debt/Equity
ratio |
1.162 |
1.141 |
1.823 |
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 |
26342.600 |
46626.200 |
60970.100 |
|
|
|
76.999 |
30.764 |
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 |
26342.600 |
46626.200 |
60970.100 |
|
Profit/ (Loss) |
169.500 |
254.900 |
(104.400) |
|
|
0.64% |
0.55% |
(0.17%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
UNSECURED LOANS
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Debentures |
4550.000 |
4550.000 |
|
Deferred payment liabilities |
29.000 |
36.100 |
|
SHORT TERM
BORROWINGS |
|
|
|
Working capital loans from banks |
2067.000 |
4684.700 |
|
Deferred payment liabilities |
7.100 |
13.000 |
|
Commercial paper |
5000.000 |
0.000 |
|
|
|
|
|
Total |
11653.100 |
9283.800 |
CHANGE OF ADDRESS
The Registered Office of the company has been shifted from B - 401 and
501, Business Square, Andheri- Kurla Road, Chakala, Andheri (East), Mumbai -
400093, Maharashtra, India to the present address w.e.f.29.04.2013.
FIXED ASSETS
·
Land
·
Buildings
·
Plant and equipment
·
Furniture and fixtures
·
Vehicles
·
Office equipment
·
Computer equipments
·
Leasehold improvements
·
Goodwill
·
Brands and trade marks
·
Computer software
PRESS RELEASES
TOP FIVE BUNGE
EXECUTIVES RESIGN AFTER INTERNAL AUDIT INTO POSSIBLE FINANCIAL IRREGULARITIES
MUMBAI/NEW DELHI: Five top executives at the Indian unit of
American company Bunge have resigned amid an internal audit into possible
financial irregularities at the world's largest oilseeds processor and owner of
domestic edible oils brands Dalda and Amrit.
The company's
director Ashish Saxena and chief financial officer Anand Vora have quit over
what two senior executives with direct knowledge of the development described
as "management differences" arising out of the outcome of the audit.
Two other directors of the company - Sudhakar Rao Desai and Sanjay Jain - along
with human resources head Sangram Chavan have quit for better prospects, the
senior executives said.
"The company recently
completed a compliance audit and found some irregularities in the setting up of
the new oil processing plant at Kandla, Gujarat," said one of the persons
quoted above.
The person said the
parent company had objected to the manner in which its Indian subsidiary paid
for the factory land in Kandla. Bunge was of the view that the transaction may
not be compliant with the US Foreign Corrupt Practices Act (FCPA), an
anti-corruption law.
BUNGE INDIA SET TO REVIVE PALM OIL BRAND
LOTUS
Friday,
22 November 2013
Bunge India is resurrecting the Lotus brand of
palm oil, 10 years after acquiring it along with the more popular Dalda, from
Hindustan Unilever.
Lotus is now being
soft-launched for selling packaged palm oil in the Indian market for institutional
clients in select regions and also as a retail brand for the southern market,
Dinesh Agarwal,business head
for Dalda, said.
“We have plans to
get into palm oil under Lotus. We would sell mostly to institutions and in some
southern Indian markets we would sell to households,” Agarwal said. While Bunge
India’s current brands like Dalda, Amrit, Ginni and Gagan in a range of
vanaspati, soyabean, mustard and groundnut oils cater to the retail consumer
market, Lotus would be targeting the hitherto untapped market for palm oil, a
relatively cheap cooking medium mostly used by eateries and restaurants in
India, he said. Consumption of palm oil, in fact, is highest among all edible
oils in the country followed by soya bean and mustard oil.
“We have just
started production at Kandla and supplying to the northern markets, mostly to
the business-to-business segment in bulk packaging.”
Bunge in India is
now focusing on expanding the range of edible oils under its flagship Dalda
brand with an aim to cover almost all cooking mediums used in every part of the
country by March.
“We are now
launching soya bean, mustard, groundnut and sunflower oil constituting 85% of
country’s consumption basket. And by March we would be getting into the rest
15%, which includes oils from rice bran, sesame, coconut, olive and also cotton
seed,” Agarwal said.
Bunge need to
expand its portfolio as vanaspati is now suffering average yearly de-growth of
about 4%.
EDIBLE OIL SECTOR
SEEING CONSOLIDATION
Crushing
disparity shrinks operational viability, small units rent out / sell facility
to large ones for valued added products
Mumbai
December 10, 2014
Faced with disparity in the crushing and refining
business, the edible oil sector
is passing through a consolidation phase, with small units selling or renting
out facilities to large ones for value-added products.
“With sustained fall in oil and elevated seed
prices, domestic crushing units face a disparity of $40-50 a tonne. This means
imported oil will be cheaper by $40-50 a tonne than through domestic seed
crushing, Since the disparity continues for a few years, small units are
renting out or selling their manufacturing facility to big players. There is
widespread consolidation happening in the edible oil industry,” said B V Mehta,
executive director, Solvent Extractors’ Association, the apex industry body
with about 850 registered members.
For example, Gwalior (Madhya Pradesh)-based Advantage
Oils has acquired the Bundi (Rajasthan)-based seed crushing and vegetable oil
refining business of Bunge India, producer and distributor of the Dalda brand
of edible oil, for an undisclosed sum. The Bundi unit’s seed crushing capacity
is 800 tonnes a day and refining facility is 200 tonnes a day.
“There is enough domestic capacity to procure
vegetable oil. Therefore, we sold out our Bundi manufacturing unit,” said a top
Bunge official, on condition of anonymity, adding, “We retain our brands with
us.”
Ruchi Soya Industries has also sold its 50 per cent stake in a
Hyderabad-based Gemini Edibles and Fats India
(GEFI) to Singapore-based Golden Agri International India Holding for $17.88
million (Rs 1000.000 Millions).
GEFI incurred losses for three out of five years
since its existence, owing to unfavourable government policy, which made the
edible oil business unviable. In FY14, GEFI recorded a net loss of Rs 40.000
Millions, which, though small, is a significant loss for edible oil
companies. Operating as a subsidiary of Golden Agri-Resources (GAR), the
world’s second-largest palm oil plantation company, Golden Agri
International is engaged in the production of palm-based edible oils and fats.
With a market capitalisation of $5.7 billion, GAR has 470,600 hectares under
palm plantation in Indonesia.
“GEFI had a lot of forex exposure, which due to
depreciation in the rupee, turned out as losses. That apart, the company
invested immensely in brand building and other promotional activities. The most
striking of the reasons for the sell-off was the business un-viability,” said
Pradeep Chowdhry, managing director of GEFI, producer of Freedom brand edible
oil, in addition to cheese and fats.
The sector has recommended the government raise
the import duty on crude palm oil to make the refining and fats business
viable. Owing to a five per cent difference between crude and refined oil,
the edible oil business has suffered immensely. Since the edible oil crushing
and refining business offers disparity, large players are focusing on
value-added segment, where business potential is quite high. “Producers of
value-added products enjoy a different ball game all together. While primary
edible oil producers face disparity, margins are high for producers of
value-added soya products,” said Anil Agrawal, managing director, Sanwaria Agro
Oils.
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. 62.59 |
|
|
1 |
Rs. 92.46 |
|
Euro |
1 |
Rs. 67.51 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
49 |
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.