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MIRA INFORM REPORT
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Report No. : |
505072 |
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Report Date : |
21.04.2018 |
IDENTIFICATION DETAILS
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Name : |
VARUN BEVERAGES LIMITED |
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Registered
Office : |
F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020 |
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Tel. No.: |
91-11-41706720 |
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Country : |
India |
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Financials (as
on) : |
31.12.2017 |
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Date of
Incorporation : |
16.06.1995 |
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Com. Reg. No.: |
55-069839 |
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Capital
Investment / Paid-up Capital : |
INR 1826.146 Million |
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CIN No.: [Company Identification
No.] |
L74899DL1995PLC069839 |
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IEC No.: [Import-Export Code No.] |
0595023061 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTN : [Goods & Service Tax Registration
No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACV2678L |
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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
: |
The Company is engaged in manufacturing, selling, bottling and distribution of beverages of PepsiCo's (Registered activity) |
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No. of Employees
: |
4896 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Maximum Credit Limit : |
USD 66000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject was set up in 1995 to cater to PepsiCo's bottling
requirement. It is a manufacturer and distributor of sweetened aerated water (soft
drinks), non-sweetened aerated water (soda), packaged drinking water, and
packaged juices.
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low
Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High
Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = AA- |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
15.03.2018 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating = A1+ |
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Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
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Date |
15.03.2018 |
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
31-03-2018.
BIFR (Board for Industrial & Financial
Reconstruction) LISTING STATUS
Subject’s name is
not listed as a Sick Unit in the publicly available BIFR (Board for Industrial
& Financial Reconstruction) list as of 21.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
MANAGEMENT NON-COOPERATIVE: Tel. No.:
91-11-41706720
LOCATIONS
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Registered Office : |
F-2/7, Okhla Industrial Area, Phase I, New Delhi – 110020,
India |
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Tel. No.: |
91-11-41706720 / 41706725 |
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Fax No.: |
91-11-41706722 / 26813665 |
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E-Mail : |
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Website : |
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Head Office / Corporate Office 1 : |
RJ Corp House, Plot No.31, Institutional Area, Sector 44, Gurugram - 122002, Haryana, India |
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Tel. No.: |
91-124-4643100-500 |
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Fax No.: |
91-124-4643303 |
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E-Mail : |
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Website : |
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Corporate Office
2: |
F-34, Sector – VI, Noida – 201301, Uttar Pradesh, India |
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Tel. No.: |
91-120-2422413 / 2422414 / 2530976 / 2531004 / 2550337 |
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Fax No.: |
91-120-2422870 / 2422745 / 2550338 |
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Plants : |
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Manufacturing
Facilities: |
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Backward Integration: |
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DIRECTORS
As on 31.03.2017
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Name : |
Mr. Ravi Kant Jaipuria |
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Designation : |
Director |
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Address : |
Plot No. 7A, Aurangzeb Road, New Delhi – 110011, India |
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Date of Birth/Age : |
28.11.1954 |
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Qualification : |
MBA |
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Date of Appointment : |
16.06.1995 |
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DIN No.: |
00003668 |
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Name : |
Mr. Raj Pal Gandhi |
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Designation : |
Whole-time director |
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Address : |
C-15/10, DLF Phase - 1, Gurugram - 122002, Haryana, India
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Date of Birth/Age : |
07.06.1957 |
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Qualification : |
FCA |
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Experience : |
34 Years |
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Date of Appointment : |
01.11.2013 |
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PAN No.: |
AALPG8397D |
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DIN No.: |
00003649 |
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Name : |
Mr. Varun Jaipuria |
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Designation : |
Whole-time director |
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Address : |
Plot No.7A, Aurangzeb Road, New Delhi – 110011, India |
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Date of Birth/Age : |
10.11.1987 |
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Qualification : |
Graduate from Regents College, London |
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Experience : |
6 Years |
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Date of Appointment : |
01.11.2013 |
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PAN No.: |
AHAPJ9246N |
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DIN No.: |
02465412 |
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Name : |
Mr. Kamlesh Kumar Jain |
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Designation : |
Whole-time director |
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Address : |
D 1404, Park View City-1, Sohna Road, Sector-48, Islampur
(97), Gurugram – 122018, Haryana, India |
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Date of Birth/Age : |
23.06.1962 |
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Qualification : |
CA |
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Date of Appointment : |
01.11.2013 |
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PAN No.: |
AAHPJ2128D |
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DIN No.: |
01822576 |
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Name : |
Mr. Kapil Agarwal |
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Designation : |
Director |
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Address : |
KK-85, Kavi Nagar, Ghaziabad – 201002, Uttar Pradesh, India |
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Date of Birth/Age : |
08.06.1964 |
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Qualification : |
B.Com and PGDBM |
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Date of Appointment : |
01.01.2013 |
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DIN No.: |
02079161 |
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Name : |
Ms. Rashmi Dhariwal |
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Designation : |
Additional Director |
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Address : |
Aashray Farms, Opposite N V Farms Sub. PO SP School, Bhatti Mines, Asola Village, New Delhi – 110030, India |
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Date of Appointment : |
19.03.2018 |
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DIN No.: |
00337814 |
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Name : |
Mr. Pradeep Sardana |
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Designation : |
Director |
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Address : |
S-05B, Windsor Court DLF City, Phase-IV, Gurugram – 122002, Haryana, India |
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Date of Appointment : |
28.03.2016 |
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DIN No.: |
00682961 |
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Name : |
Ms. Sita Khosla |
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Designation : |
Additional Director |
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Address : |
163D, The Pinnacle Golf Course Road, DLF-5, Gurugram – 122002, Haryana, India |
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Date of Appointment : |
16.02.2018 |
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DIN No.: |
01001803 |
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Name : |
Mr. Naresh Kumar Trehan |
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Designation : |
Director |
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Address : |
B-4, Maharani Bagh, New Delhi-110065, India |
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Date of Appointment : |
01.12.2015 |
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DIN No.: |
00012148 |
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Name : |
Mr. Ravi Gupta |
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Designation : |
Additional Director |
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Address : |
D-17 A, Kailash Colony, New Delhi – 110048, India |
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Date of Appointment : |
19.03.2018 |
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DIN No.: |
00023487 |
KEY EXECUTIVES
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Name : |
Mr. Ravi Batra |
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Designation : |
Secretary |
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Address : |
B-306, Aditya Apartments Chander Nagar, Ghaziabad –
201011, Uttar Pradesh, India |
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Date of Birth/Age : |
10.03.1967 |
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Date of Appointment : |
12.05.2017 |
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PAN No.: |
ADWPB5767E |
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Name : |
Mr. Kamlesh Kumar Jain |
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Designation : |
Chief Finance Officer |
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Address : |
D 1404, Park View City-1, Sohna Road, Sector-48, Islampur (97),
Gurugram – 122018, Haryana, India |
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Date of Appointment : |
19.09.2014 |
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PAN No.: |
AAHPJ2128D |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on March 2018
|
Category
of shareholder |
No. of fully
paid up equity shares held |
Shareholding as a
% of total no. of shares |
|
|
Promoter & Promoter Group |
134357495 |
73.57 |
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Public |
48257145 |
26.43 |
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Grand Total |
182614640 |
100.00 |
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STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER
AND PROMOTER GROUP
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
A1) Indian |
0.00 |
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Individuals/Hindu
undivided Family |
78535150 |
43.01 |
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RAVI KANT JAIPURIA |
39187870 |
21.46 |
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VIVEK GUPA |
168000 |
0.09 |
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DHARA JAIPURIA |
2015 |
0.00 |
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DEVYANI JAIPURIA |
1765 |
0.00 |
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VARUN JAIPURIA |
39175500 |
21.45 |
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Any Other
(specify) |
55822345 |
30.57 |
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RJ CORP LIMITED |
55822345 |
30.57 |
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Sub Total A1 |
134357495 |
73.57 |
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A2) Foreign |
0.00 |
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A=A1+A2 |
134357495 |
73.57 |
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STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
Category &
Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0 |
0.00 |
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Mutual Funds/ |
8960591 |
4.91 |
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RELIANCE CAPITAL TRUSTEE CO LTD-A/C
RELIANCE CAPITAL BUILDER FUND - 4 - SR B |
6811685 |
3.73 |
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SUNDARAM MUTUAL A/C SUNDARAM LONG TERM TAX
ADVANTAGE FUND |
2011657 |
1.10 |
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Foreign
Portfolio Investors |
24479695 |
13.41 |
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AMERICAN FUNDS INSURANCE SERIES GLOBAL
SMALL CAPITALIZATION FUND |
2504974 |
1.37 |
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SMALLCAP WORLD FUND, INC |
6884988 |
3.77 |
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NORDEA 1 SICAV - ASAIN FOCUS EQUITY FUND |
3328039 |
1.82 |
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STICHTING DEPOSITARY APG EMERGING MARKETS
EQUITY POOL |
2981111 |
1.63 |
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Financial
Institutions/ Banks |
5767 |
0.00 |
|
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Sub Total B1 |
33446053 |
18.32 |
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B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
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B3)
Non-Institutions |
0 |
0.00 |
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|
Individual share
capital upto INR 0.200 Million |
3687498 |
2.02 |
|
|
Individual share
capital in excess of INR 0.200 Million |
951822 |
0.52 |
|
|
NBFCs registered
with RBI |
24010 |
0.01 |
|
|
Any Other
(specify) |
10147762 |
5.56 |
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BUSINESS DETAILS
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Line of Business : |
The Company is engaged in manufacturing, selling, bottling and distribution of beverages of PepsiCo's (Registered activity) |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
4896 (Approximately) |
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Bankers : |
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Facilities : |
NOTE: LONG-TERM
BORROWINGS Loans and borrowing above are recognised at amortised cost/ fair value taking into account any discount or premium on acquisition and fee or costs that are part of effective interest rate, accordingly the outstanding balances above may not necessarily agree with repayment amounts. a) Terms and conditions of issue and conversion/redemption of compulsorily convertible debentures (CCDs) are as under: All the CCDs have been converted to equity share capital during the year ended 31 December 2016 and hence there are no CCDs outstanding as at 31 December 2016. The particulars as at 01 January 2016 are as under and were recorded at face value of ' 4,198.98 as per erstwhile Indian GAAP. The Company was required to conduct a qualified initial public offer ('QIPO') not later than 48 months from the date of issue of first tranche. If a QIPO by the Company could not be completed prior to the QIPO deadline date on account of the market conditions or non-receipt of internal or external approvals that may be required for such initial public offering, the Company and the promoters (as defined in the subscription agreement) shall ensure that such QIPO occurs within six years from the first completion date. The CCDs shall be converted into such number of equity shares based on the lower-end of the price band at which the QIPO is proposed to enable the debenture holders to realise the agreed return of 18.5% from the equity shares resulting from such conversion. CCDs were compulsorily convertible into equity shares in an initial public offer (IPO). In the event the Company had not filed a Draft Red Herring Prospectus for QIPO with the Securities and Exchange Board of India on or before 31 May 2017, the debenture holders had various exit options including 14% per annum coupon and put option on promoters at an agreed return. The coupon in that case was payable as per the terms of underlying agreement. b) Terms and
conditions of issue and redemption of Non-convertible debentures (NCDs) are
as under: i) Issued to Kotak Mahindra Bank Limited and RBL Bank Limited The Rated Secured Listed Redeemable Rupee Denominated NCDs (3000) are redeemable at par in 5 years and 4 months from the deemed date of allotment and carry a coupon rate of 7.70% per annum. The NCDs are redeemable 10%, 25%,30% and 35% at 30 June 2019, 2020, 2021 and 2022 respectively unless redeemed earlier. These NCDs are secured by way of first pari- passu charge on the moveable and immoveable fixed assets of the Company providing a security cover of 1.30 times. The Audit Committee and Board of Directors of the Company noted the utilisation of the proceeds of NCDs for the year ended 31 december 2017, which was in line with utilisation schedule approved by the Board of Directors. ii) Issued to RBL Bank Limited During the year ended 31 December 2016, the Company had called-up the balance amount of ' 1,800 in single instalment, i.e. 90 percent of the face value of debenture, as per the terms of the underlying agreement. The NCDs were repaid during the previous year from the proceeds of IPO. There were no NCDs outstanding as at 31 December 2016 and details of NCDs as at 01 January 2016 are as under and were recorded at cost of ' 2,000 as per Indian GAAP The Rated Secured Listed Redeemable Rupee Denominated NCD (2000) were redeemable at par in 5 years from the deemed date of allotment and carried a coupon rate of SBI base rate plus 60 basis points. The NCDs were redeemable 30%, 30% and 40% at the end of year third, fourth and fifth years respectively unless redeemed earlier. These NCDs were secured by way of first pari-passu charge on the specified fixed assets of the Company to the extent of 1.25 times of NCDs outstanding. The Audit Committee and Board of Directors of the Company noted the utilisation of the proceeds of NCDs for the year ended 31 December 2016, which was in line with utilisation schedule approved by the Board of Directors. iii) Issued to AION Investments II Singapore PTE Ltd During the year ended 31 December 2016, the Company had redeemed all the NCDs issued to AION Investments II Singapore PTE Ltd and there were no NCDs outstanding as at 31 December 2016. Details of NCDs as at 01 January 2016 are as under and were recorded at cost of ' 3000 as per Indian GAAP NCDs were rated unsecured and carried a coupon rate of 14% for the first eighteen months and 17% thereafter. NCDs were redeemable by the Company on the tenth anniversary from the date of allotment ('Final Redemption Date'). The Company and its affiliates (as defined in the underlying agreement) had right to redeem the NCDs, prior to the final redemption date, under the circumstances and subject to the conditions stated in the underlying agreement. c) Terms and
conditions of issue and conversion of Compulsorily convertible preference
shares (CCPS) are as under: All the CCPS have been converted to equity share capital during the year ended 31 December 2016 and hence there are no CCPS outstanding as at 31 December 2016. The particulars as at 01 January 2016 are as under and were recorded at face value of ' 4,500 as per Indian GAAP. CCPS were compulsorily convertible into equity shares upon expiry of five years from allotment date at a price which was to be calculated at the valuation of the Company computed by an independent valuer or at a price not lower than breakup value (as defined in share subscription agreement), whichever was higher. CCPS were to be mandatorily converted into equity shares prior to a) filing of the red herring prospectus or, b) a third party private equity investment or, c) the conversion of Compulsorily Convertible Debentures. The holders of preference shares had no rights to receive notices of, attend or vote at general meetings except in certain limited circumstances. Each CCPS was entitled to receive dividend at the rate of 10% in the fourth year and at the rate of 20% in the fifth year from the date of issue. There is no dividend for the first three years from the date of issue. d) The Company has complied with all the loan covenants. Short-term
borrowings Working capital facilities from banks are secured by first charge on entire current assets of the Company ranking pari passu amongst the banks and second charge on the movable and immovable assets of the Company pertaining to specific manufacturing units. The working capital facilities carry interest rates ranging between 8.50 to 9.70% (31 December 2016: 9.50 to 10.90% and 01 January 2016: 11 to 12%). At 31 December 2017, the Company had available INR 1,559.12 (31 December 2016: INR 2,102.45 and 01 January 2016: INR 2,404.00) of undrawn committed borrowing facilities. The Company has complied with all the loan covenants. |
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Auditors : |
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Name : |
APAS and Company Chartered Accountants |
|
Address : |
New Delhi, India |
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Name : |
Walker Chandiok and Associates Chartered Accountants |
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Address : |
New Delhi, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Parent and ultimate
parent: |
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Subsidiaries/step
down subsidiaries: |
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Fellow subsidiaries
and entities controlled by parent*: |
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Associate (or an
associate of any member of the Company): |
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Entities in which a
director or his/her relative is a member or director*: |
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Entities which are
post-employment benefits plans: |
|
Note:
*With whom the Company had transactions during the current year and previous year.
CAPITAL STRUCTURE
As on 31.12.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
INR 10/- each |
INR 5000.000 Million |
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
182586940 |
Equity Shares |
INR 10/- each |
INR 1825.870
Million |
|
|
|
|
|
a) Reconciliation of
share capital
|
Particulars |
No. of shares |
INR in Million |
|
|
|
|
|
Equity shares |
|
|
|
Balance as at January 1, 2017 |
182312525 |
1823.130 |
|
Add: Shares issued on conversion of compulsorily convertible debentures |
274415 |
2.740 |
|
Balance as at 31 December
2017 |
182586940 |
1825.870 |
b) Terms/rights
attached to shares
The Company has only one class of equity shares having a par value of INR 10 each. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
c) List of
shareholders holding more than 5% of the equity share capital of the Company at
the beginning and at the end of the year:
|
Shareholders as at
December 31, 2017 |
No. of shares |
% |
|
R J Corp Limited |
55822345 |
30.57% |
|
Ravi Kant Jaipuria and Sons (HUF) |
39187870 |
21.46% |
|
Mr. Varun Jaipuria |
39175500 |
21.46% |
d) Aggregate number of
equity shares issued as bonus, shares issued for consideration other than cash
and shares bought back during the period of five years immediately preceding
the reporting date:
During the year 2013, the Company issued 26,752,733 equity shares of INR 10 each for a consideration other than cash. The Company cancelled 7,999,500 equity shares of INR 10 each pursuant to the scheme of amalgamation of Varun Beverages (International) Limited with Varun Beverages Limited approved by Hon'ble High Court of Delhi on 12 March 2013. Also, 107,012,932 equity shares of INR 10 each have been issued in the ratio of 4:1 as bonus shares during the year 2013.
e) Shares reserved
for issue under options Under Employee Stock Option Scheme, 2013:
|
Particulars |
As on 31.12.2017 |
As on 31.12.2016 |
|
|
|
|
|
No. of equity shares of INR 10 each at an exercise price of INR 149.51 per share |
|
|
|
Options outstanding at the beginning of the year |
3,52700 |
26,75,400 |
|
Less: Options lapsed during the year |
-- |
58,000 |
|
Less: Shares issued on exercise of employee stock options |
2,74,415 |
22,64,700 |
|
|
78,285 |
3,52,700 |
f) Pursuant to
Initial Public Offering (IPO), 15,000,000 equity shares of the Company of INR
10 at INR 445 per equity share
|
Date of allotment |
No. of shares |
Share capital |
Security premium reserve |
|
04 November 2016 |
1,50,00,000 |
150.000 |
6,525.00 |
The equity shares of the Company were listed on Bombay Stock Exchange and National Stock Exchange w.e.f. 08 November 2016.
g) Shares held by
holding and ultimate holding company
Out of equity shares
issued by the Company, shares held by its holding company/ ultimate holding
company are as below:
|
Shareholders as at
December 31, 2017 |
No. of shares |
|
R J Corp Limited |
558.200 |
|
55,822,345 (31 December 2016: 49,932,870, 01 January 2016: 45,387,415) fully paid equity shares of INR 10 each |
|
|
Ravi Kant Jaipuria and Sons (HUF), Ultimate Parent |
391.880 |
|
39,187,870 (31 December 2016: 39,187,870, 01 January 2016: 44,187,870) fully paid equity shares of INR 10 each |
950.100 |
h) Preference share
capital
The Company also has authorised preference share capital of 50,000,000 (31 December 2016: 50,000,000, 01 January 2016: 50,000,000) preference shares of INR 100 each. The Company does not have any outstanding issued preference shares.
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1825.870 |
1823.130 |
5837.660 |
|
(b) Reserves & Surplus |
21142.140 |
19544.240 |
2766.550 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
22968.010 |
21367.370 |
8604.210 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
16017.840 |
11231.270 |
15030.600 |
|
(b) Deferred tax liabilities
(Net) |
1551.510 |
1314.640 |
1481.820 |
|
(c) Other long term
liabilities |
45.980 |
12.240 |
6252.100 |
|
(d) long-term provisions |
658.540 |
539.460 |
384.160 |
|
Total
Non-current Liabilities (3) |
18273.870 |
13097.610 |
23148.680 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1925.880 |
1482.550 |
681.000 |
|
(b) Trade payables |
838.320 |
1444.110 |
992.930 |
|
(c) Other current liabilities |
8823.940 |
8476.710 |
7622.070 |
|
(d) Short-term provisions |
155.450 |
128.040 |
366.340 |
|
Total
Current Liabilities (4) |
11743.590 |
11531.410 |
9662.340 |
|
|
|
|
|
|
TOTAL |
52985.470 |
45996.390 |
41415.230 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
28404.800 |
26351.550 |
25389.830 |
|
(ii) Intangible Assets |
4355.840 |
3563.770 |
3772.030 |
|
(iii) Capital work-in-progress |
119.690 |
689.370 |
320.270 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(v) Goodwill |
19.400 |
0.000 |
0.000 |
|
(vi) Investment in
subsidiaries and associates |
6271.890 |
5005.320 |
0.000 |
|
(b) Non-current Investments |
0.040 |
0.010 |
3039.240 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and
Advances |
6024.900 |
4307.670 |
3295.160 |
|
(e) Other Non-current assets |
568.300 |
516.880 |
50.120 |
|
Total
Non-Current Assets |
45764.860 |
40434.570 |
35866.650 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.010 |
|
(b) Inventories |
3156.700 |
3599.710 |
3507.850 |
|
(c) Trade receivables |
946.900 |
471.440 |
500.520 |
|
(d) Cash and cash equivalents |
312.700 |
149.390 |
195.840 |
|
(e) Short-term loans and
advances |
0.000 |
1341.280 |
1217.650 |
|
(f) Other current assets |
2804.310 |
0.000 |
126.710 |
|
Total
Current Assets |
7220.610 |
5561.820 |
5548.580 |
|
|
|
|
|
|
TOTAL |
52985.470 |
45996.390 |
41415.230 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
|
SALES |
|
|
|
|
|
Income |
34905.580 |
35753.120 |
28640.09 |
|
|
Other Income |
475.320 |
509.210 |
464.16 |
|
|
TOTAL
|
35380.900 |
36262.330 |
29104.250 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
14546.230 |
13023.620 |
12029.530 |
|
|
Purchases of Stock-in-Trade |
158.910 |
803.470 |
3164.740 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(662.040) |
(168.440) |
(318.440) |
|
|
Excise duty |
4281.070 |
5957.100 |
0.000 |
|
|
Prior period items |
0.000 |
0.000 |
9.790 |
|
|
Employees benefits expense |
3191.260 |
2800.650 |
2457.470 |
|
|
Other expenses |
6169.980 |
6322.730 |
5556.870 |
|
|
TOTAL |
27685.410 |
28739.130 |
22899.960 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
7695.490 |
7523.200 |
6204.290 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1917.140 |
3886.540 |
1388.530 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
5778.350 |
3636.660 |
4815.760 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
2736.420 |
2494.560 |
2626.210 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
3041.930 |
1142.100 |
2189.550 |
|
|
|
|
|
|
|
Less |
TAX |
685.950 |
247.130 |
673.080 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
2355.980 |
894.970 |
1516.470 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
FOB value of exports (intermediate and finished
goods) |
NA |
NA |
162.940 |
|
|
Interest |
NA |
NA |
71.830 |
|
|
Guarantee commission |
NA |
NA |
29.190 |
|
|
TOTAL
EARNINGS |
NA |
NA |
263.960 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Components and Stores parts |
NA |
NA |
1977.280 |
|
|
Capital Goods |
NA |
NA |
236.940 |
|
|
TOTAL
IMPORTS |
NA |
NA |
2214.220 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
12.91 |
6.16 |
11.34 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Current Maturities of Long term debt |
2883.230 |
1882.920 |
1828.880 |
|
Cash generated from operations |
5500.940 |
8026.550 |
5468.300 |
|
Net cash flow from operating activity |
5013.730 |
7516.550 |
5102.270 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
9.90 |
4.81 |
6.38 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
36.86 |
75.84 |
57.22 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
20.81 |
38.12 |
23.85 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
2.44 |
2.09 |
1.77 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.23 |
0.25 |
0.21 |
LEVERAGE RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.58 |
0.54 |
0.64 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.91 |
0.68 |
2.04 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.51 |
0.54 |
1.12 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
1.43 |
1.43 |
3.43 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
4.01 |
1.94 |
4.47 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
6.75 |
2.50 |
5.29 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
4.45 |
1.95 |
3.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
10.26 |
4.19 |
17.62 |
SOLVENCY RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
0.61 |
0.48 |
0.57 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.35 |
0.17 |
0.21 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.43 |
0.46 |
0.21 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
11.41 |
8.01 |
3.00 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
0.61 |
0.48 |
0.57 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 643.00/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
5837.660 |
1823.130 |
1825.870 |
|
Reserves & Surplus |
2766.550 |
19544.240 |
21142.140 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
8604.210 |
21367.370 |
22968.010 |
|
|
|
|
|
|
Long Term borrowings |
15030.600 |
11231.270 |
16017.840 |
|
Short Term borrowings |
681.000 |
1482.550 |
1925.880 |
|
Current Maturities of Long term debt |
1828.880 |
1882.920 |
2883.230 |
|
Total
borrowings |
17540.480 |
14596.740 |
20826.950 |
|
Debt/Equity
ratio |
2.039 |
0.683 |
0.907 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR In
Million |
|
Sales
|
28640.090 |
35753.120 |
34905.580 |
|
|
|
24.836 |
(2.371) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
28640.090 |
35753.120 |
34905.580 |
|
Profit |
1516.470 |
894.970 |
2355.980 |
|
|
5.29% |
2.50% |
6.75% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.12.2017 |
31.12.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1825.870 |
1823.130 |
|
(b) Reserves & Surplus |
|
15868.410 |
15112.820 |
|
(c) Non-controlling interest |
|
(14.320) |
(129.060) |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
17679.960 |
16806.890 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
16869.950 |
12183.610 |
|
(b) Deferred tax liabilities
(Net) |
|
1501.510 |
1286.390 |
|
(c) Other long term
liabilities |
|
119.810 |
154.470 |
|
(d) long-term provisions |
|
732.640 |
605.880 |
|
Total
Non-current Liabilities (3) |
|
19223.910 |
14230.350 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
3533.650 |
4111.290 |
|
(b) Trade payables |
|
1909.460 |
2745.900 |
|
(c) Other current liabilities |
|
10321.600 |
10282.940 |
|
(d) Short-term provisions |
|
167.500 |
135.200 |
|
Total
Current Liabilities (4) |
|
15932.210 |
17275.330 |
|
|
|
|
|
|
TOTAL |
|
52836.080 |
48312.570 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
35411.660 |
33558.490 |
|
(ii) Intangible Assets |
|
4374.150 |
3596.460 |
|
(iii) Capital work-in-progress |
|
1454.380 |
955.780 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(v) Goodwill |
|
19.400 |
0.000 |
|
(b) Non-current Investments |
|
0.040 |
0.010 |
|
(c) Deferred tax assets (net) |
|
80.040 |
68.350 |
|
(d) Long-term Loan and Advances |
|
192.190 |
163.190 |
|
(e) Other Non-current assets |
|
1617.040 |
1444.650 |
|
Total
Non-Current Assets |
|
43148.900 |
39786.930 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
4388.940 |
4899.260 |
|
(c) Trade receivables |
|
1502.450 |
1313.450 |
|
(d) Cash and cash equivalents |
|
944.600 |
657.020 |
|
(e) Short-term loans and advances |
|
0.000 |
0.000 |
|
(f) Other current assets |
|
2851.190 |
1655.910 |
|
Total
Current Assets |
|
9687.180 |
8525.640 |
|
|
|
|
|
|
TOTAL |
|
52836.080 |
48312.570 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.12.2017 |
31.12.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
45162.360 |
45314.610 |
|
|
Other Income |
|
126.530 |
357.330 |
|
|
TOTAL
|
|
45288.890 |
45671.940 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
18555.090 |
16768.990 |
|
|
Purchases of Stock-in-Trade |
|
277.690 |
928.390 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(732.220) |
(318.550) |
|
|
Excise duty |
|
5128.370 |
6702.780 |
|
|
Employees benefits expense |
|
4628.440 |
4210.300 |
|
|
Share of profit in associate |
|
(13.500) |
(23.780) |
|
|
Other expenses |
|
8947.320 |
9063.030 |
|
|
TOTAL |
|
36791.190 |
37331.160 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
8497.700 |
8340.780 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
2121.750 |
4325.350 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
6375.950 |
4015.430 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
3466.410 |
3222.080 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
2909.540 |
793.350 |
|
|
|
|
|
|
|
Less |
TAX |
|
768.950 |
312.960 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
2140.590 |
480.390 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
11.52 |
2.92 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
|
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
Subject (the 'Company') is a public limited Company domiciled in India with its equity shares listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India (NSE). The Company was incorporated on 16 June 1995 under the provision of the Companies Act, 1956. The Company is engaged in manufacturing, selling, bottling and distribution of beverages of PepsiCo's brand in geographically predefined territories as per franchisee agreement with PepsiCo India Holdings Private Limited ("PepsiCo India").
MANAGEMENT DISCUSSION &
ANALYSIS
ECONOMIC OVERVIEW
& OUTLOOK
Global economy
Global economic activity, which has been on an upswing since mid-2016, continues to firm up in 2017. Global output is estimated to have grown by 3.7% in 2017 led by broad- based growth, with positive surprises in Europe and Asia. It is further encouraging that global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage points to 3.9%, reflective of the increased global growth momentum.
Indian economy
2017 was an interesting year for the Indian economy. Firstly, the path-breaking Goods and Services Tax (GST) became a reality. Leaving aside the initial short-term disruptions associated with any major structural reform, the benefits of GST over the medium term are indisputable.
The year also witnessed significant steps being undertaken towards resolution of problems associated with nonperforming assets of the banks under the Bankruptcy Code, the implementation of a bank recapitalization package for public sector banks, further liberalization of the foreign direct investment regime, etc. Further strengthening the momentum of reforms was the Union Budget 2018, which focused on uplifting the rural economy, strengthening of the agriculture sector, healthcare for the economically less privileged, infrastructure creation and improvement in the quality of education of the country.
The Indian economy is now a US$2.5 trillion economy, the seventh largest in the world and is estimated to grow at 6.6% in 2017-18, as per second advanced estimates released by CSO. Given the positive developments and the series of major reforms undertaken over the past year, the IMF estimates the Indian economy to regain its fastest growing economy tag by growing 7.4% in 2018 and 7.8% in 2019. The key engines supporting the upturn are largely domestic and policy-driven, though a synchronous upturn in global growth will, undoubtedly, provide some tailwind.
SOFT DRINKS MARKET
OVERVIEW & OUTLOOK
The information in this section includes data published by Euromonitor International Limited.
World soft drinks
market
The Global soft drink market comprises carbonates, packaged juices, bottled water, sports/energy drinks, ready-to-drink tea and coffee.
The per capita global soft drink consumption increased from 353 bottles in 2011 to 391 bottles in 2016 and is further expected to reach 434 bottles by 2021. In terms of per capita consumption of soft drinks, Asian and African economies (VBL's key markets) are well behind mature markets like US and Germany. The forecasted per capita volume consumption CAGR for the period of 2016-21 in India (15.1%), Sri Lanka (13.1%), Morocco (12.6%), Nepal (20.0%), Zambia (7.0%), and Zimbabwe (6.1%) where the Company's recently established presence surpasses the projections of several other global markets.
Soft drinks market in
india
The Indian soft drinks market is estimated to be a INR 355 billion opportunity and is expected to continue its robust growth trajectory with a projected volume CAGR of 1 5.9% over the next five years, led by broad-based growth across the various categories, especially juices and bottled water.
Key Growth drivers
Low per capita consumption: At 44 bottles per capita consumption in 2016, the soft drinks market in India is relatively under-penetrated compared to matured markets like U.S. (1,496 bottles), Mexico (1,489 bottles) and Germany (1,221 bottles) and even the developing markets like Brazil (537 bottles). India's per capita soft drinks consumption is expected to almost double and reach 84 bottles by 2021.
Growing middle-class: India's economic liberalization in 1991 opened the floodgates for the arrival of a robust middle-class. Strong aspirations of the Indian middle-class will lead to an increase in the demand for premium products including beverages.
Electrification in India: The Union government's ambitious plan to complete rural electrification of 18,458 villages by May 1, 2018 is set to be achieved before target.
Rising affordability: Aggregate consumer expenditure is likely to increase from ' 45 trillion in 2010 to nearly ' 150 trillion by 2020 - a more than threefold increase in 10 years. This will be accompanied by an increase in affluent and aspiring households from 48 million to more than 100 million in the same time period. The growing aspirations combined with rising affordability are expected to contribute towards a growing market for beverages in India.
Increasing urbanization and innovation: Rising urbanization in India has accelerated the demand for beverages. Higher spending on packaged products and continuous innovations catering to specific requirements, especially in rural India, in terms of pack sizes and glass bottles to enhance product affordability will strengthen growth rates. VBL's core markets in India are expected to continue their growth momentum with increased penetration in rural and semi-urban markets and rising brand awareness.
Location: Majority of Indian population lives in hot and dry climatic regions or temperate regions being potential consumers for Varun Beverages.
Shift from unorganized to organized: With increased compliance post the roll-out of the Goods and Services Tax (GST), a shift of business is expected from the unorganized to organized players, which would translate into increased market share for organized players like Varun Beverages.
BUSINESS OVERVIEW - A
KEY PLAYER IN THE BEVERAGE INDUSTRY
VBL Presence
Varun Beverages Limited (VBL) is a key beverage player with presence across 6 countries, 3 in the Indian Subcontinent (India, Sri Lanka, Nepal) contributing ~90% to revenues, while 3 in Africa (Morocco, Zambia and Zimbabwe) contributing ~10%.
Symbiotic
Relationship with PepsiCo
The Company enjoys a strong, symbiotic and long-standing relationship with PepsiCo spanning over two decades, since their entry into India. It accounts for ~51% of PepsiCo's sales volumes in India. The Company tactfully combines PepsiCo's insights, resources and experience with its own bottling, distribution and sales to ensure a win-win situation.
VBL manufactures, sells and distributes products under trademarks and brands owned by PepsiCo which includes carbonated soft drinks, carbonated juices, juice-based drinks, energy drinks and packaged bottled water, through its extensive manufacturing facilities and well-entrenched distribution network. The Company has been granted franchise rights for various PepsiCo products across 21 States and two Union Territories in India, as well as for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
Business Model
VBL's unique business model, end-to-end execution
capabilities and presence across the entire value chain (from investments in manufacturing
facilities, distribution and warehousing, customer management and in-market
execution, to managing cash flows and future growth) makes it an undisputed
leader in the industry. Other than the concentrate, consumer marketing and
brands provided by PepsiCo, VBL charters its own success through having
complete control over the manufacturing and supply chain process, driving
market share gains, enhancing operational excellence for cost efficiencies and
judicious capital allocation strategies.
The soft drinks distribution entails relatively complex logistics because of the nature of the packaging, and refrigeration requirements. The Company procures raw material (concentrate from PepsiCo and sugar/other raw materials from approved suppliers), manages manufacturing, bottling and packaging at its production facilities, transports finished goods to the warehouses in trucks and delivers them to the retail outlets through its extensive distribution reach, and also in some cases directly. The products are stored by the retailer in visi-coolers provided and owned by VBL.
The Company has invested significantly in creating a solid infrastructure and it has 20 state-of-the-art manufacturing facilities in India and 5 internationally. It has also made investments in setting-up backward integration facilities for production of preforms, crowns, corrugated boxes and pads, plastic crates and shrink-wrap films to ensure operational efficiencies and quality standards. The Company's production facilities are strategically located near target markets, facilitating logistics costs optimization. Further, it constantly looks for avenues to optimize these costs.
VBL has a robust supply chain with 72 depots, 2,100+ owned vehicles and 1,000+ primary distributors. The Company, with its dedicated and experienced sales staff focuses on driving growth and expanding market share across categories through consumer push management within its designated sales regions in licensed territories. It undertakes local level promotion, in-store activations, customer relation management, merchandizing, individual account management and evaluation of high demand region for strategic placement of vending machines and visi-coolers. Presently, it has installed ~474,500 visi-coolers across various markets.
VBL has also significantly invested in technology to maximize its distribution efficacy, and automate field work processes through GPRS-enabled handheld device system called SAMNA (Sales Automation Management for the New Age) for real-time sales information.
The Company has presence in 21 States and two Union Territories in India. It leverages its strong execution track record for expanding operations through acquisition of several new sub-territories from PepsiCo, contiguous to existing operations, offering economies of scale advantage. As far as international expansion is concerned, the Company has a growing presence in emerging markets beyond India, characterized by low per capita consumption and expected to deliver volume growth significantly above the world average. The Company plans to further explore opportunities into new geographical markets where it could leverage its operational experience or the market offers significant volume growth.
UNSECUREDLOAN
|
Unsecured Loan |
31.12.2017 (INR
in Million) |
31.12.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Compulsorily convertible debentures |
0.000 |
0.000 |
|
Non-convertible debentures |
0.000 |
0.000 |
|
Deferred value added tax |
466.470 |
592.610 |
|
|
|
|
|
Total |
466.470 |
592.610 |
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G82728510 |
100166198 |
AXIS BANK LTD. |
27/03/2018 |
- |
- |
1200000000.0 |
2ND FLOOR, RED FORT CAPITAL, PARSVNATH TOWERS,GOLE MARKET, BHAI VEER SINGH MARG,NEW DELHIDL110001IN |
|
2 |
G69785426 |
100139412 |
AXIS BANK LTD. |
07/12/2017 |
- |
- |
1500000000.0 |
2ND FLOOR, RED FORT CAPITAL, PARSVNATH TOWERS,GOLE MARKET, BHAI VEER SINGH MARG,NEW DELHIDL110001IN |
|
3 |
G61673851 |
100133244 |
KOTAK MAHINDRA BANK LIMITED |
10/10/2017 |
- |
- |
1000000000.0 |
Kotak Aerocity, IBIS Commercial BlockAsset Area 9, Hospitality Dist, Delhi AerocityNew DelhiDL110037IN |
|
4 |
G53451779 |
100126501 |
HDFC BANK LIMITED |
01/07/2017 |
- |
- |
1690000.0 |
HDFC BANK HOUSE, SENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
5 |
G52464138 |
100096356 |
AXIS TRUSTEE SERVICES LIMITED |
12/04/2017 |
18/08/2017 |
- |
3000000000.0 |
AXIS HOUSE, BOMBAY DYEING MILLSCOMPOUND, PANDHURANG BUDHKAR MARG, WORLIMUMBAIMa400025IN |
|
6 |
G38882361 |
100084754 |
THE FEDERAL BANK LTD |
27/02/2017 |
- |
- |
1000000000.0 |
FEDERAL TOWERSP B NO 103ALWAYEERANAKULAMKe683101IN |
|
7 |
G42026369 |
100094285 |
HDFC BANK LIMITED |
21/02/2017 |
- |
- |
8778824.0 |
HDFC BANK HOUSE, SENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
8 |
G37186830 |
100080392 |
HDFC BANK LIMITED |
12/12/2016 |
- |
- |
1360000000.0 |
HDFC Bank House, Senapati Bapat MargLower Parel (West)MumbaiMH400013IN |
|
9 |
G36741304 |
100079344 |
HDFC BANK LIMITED |
03/12/2016 |
- |
- |
2000000000.0 |
HDFC Bank House, Senapati Bapat Marg,Lower Parel (West),MumbaiMH400013IN |
|
10 |
G35009653 |
100075658 |
HDFC BANK LIMITED |
29/11/2016 |
- |
- |
5538260.0 |
HDFC Bank House, Senapati Bapat Marg,Lower Parel (West)MumbaiMH400013IN |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
|
a. Guarantees issued on behalf of subsidiary and other
companies# |
959.440 |
1226.050 |
|
b. Claims against the Company not acknowledged as debts (being contested):- |
|
|
|
i. For excise and service tax |
120.540 |
91.010 |
|
ii. For sales tax / entry tax |
26.890 |
614.610 |
|
iii. For income tax |
3.130 |
3.130 |
|
iv Others* |
229.030 |
230.740 |
|
Note: #includes guarantees for loans given on behalf of subsidiaries for business purposes. *excludes pending matters where amount of liability is not ascertainable. |
||
FIXED ASSETS
FIXED ASSETS:
Tangible Assets:
- Leasehold Land
- Freehold Land
- Buildings
- Plant and equipment
- Furniture and fixtures
- Vehicles
- Office equipment
- Computer equipment
- Containers
- Refrigerator
- Post-mix Vending Machines
Intangible Assets:
- Computer software
- Licenses and franchise
- Franchise
PRESS RELEASE
VARUN BEVERAGES TO
SET UP GREENFIELD PRODUCTION FACILITY IN PUNJAB
Apr 05, 2018
PepsiCo India's bottling partner Varun Beverages today announced setting-up of a greenfield production facility for select beverages in Punjab.
In a BSE filing, the company said its plans to set-up a greenfield production
facility (subject to receipt of necessary approvals) to create in-house
production capacity for Tropicana fruit juices, Quaker Oats milk-based
Beverages and Gatorade.
VarunNSE -1.63 % Beverages said this facility will be the
first fully backward integrated facility in India to manufacture the complete
range of above products including carbonated soft drinks (CSD) at a single
location.
"Juice market in India is expected to show strong double-digit growth. The
setting-up of this production facility is in-line with our endeavour to
strengthen our presence in fast growing categories," Varun Beverages
Chairman Ravi Jaipuria said.
"The addition of these product categories to our portfolio will result in
better asset usage as the seasonality in these categories is relatively lower
and will augment our return ratios and profitability metrics going
forward," he added.
Foundation stone for this new production facility is being laid by Punjab Chief
Minister Captain Amarinder Singh at Pathankot today.
VARUN BEV GETS
PEPSICO'S FRANCHISED SUB-TERRITORY IN J'KHAND
23 March 2018
Varun Beverages today said it has acquired PepsiCo India's previously franchised sub-territory in Jharkhand along with a manufacturing facility.
"The company has concluded the acquisition of PepsiCo India's previously franchised sub-territory in Jharkhand along with one manufacturing unit at Jamshedpur," it said in a BSE filing.
PepsiCo India's bottling partner Varun Beverages is now a franchisee for PepsiCo products across 21 states and 2 Union Territories.
Shares of Varun Beverages were trading 0.68 per cent lower at Rs 605 apiece on BSE.
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 records 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
|
INR |
|
US Dollar |
1 |
INR 65.68 |
|
|
1 |
INR 93.98 |
|
Euro |
1 |
INR 81.30 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE FACTORS
|
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.