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<p><strong>Dividend Announcement</strong> <br /><br />Sterlite Power Transmission has informed that the Board of Directors of the Company at their meeting held on 10<sup>th</sup> May 2021, approved the payment of Interim Dividend of Rs. 5.30/- per equity share having nominal value of Rs. 2/- each for the financial year 2020-2021. The said Interim Dividend will be payable to those members whose names appear in the Register of Members/ list of Beneficial Owners as provided by the Depositories i.e National Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd (CDSL) as on Record date i.e. Thursday, May 20, 2021.</p> <!--more--> <p><strong>Tax Provisions</strong> <br /><br />Starting from 1st April, 2020 onwards, the Company will deduct TDS as per applicable provisions and TDS rates, while paying dividend. <br /><br /><strong>For Residents</strong> <br /><br />In case of resident shareholders, the rate currently prescribed for TDS is 7.5% for those resident shareholders with valid Permanent Account Number (PAN), 20% for resident shareholders without PAN or invalid PAN. Hence, the shareholders are advised to update their PAN with the Depository Participant, if shares are held in Demat form, and with the Registrar and Share Transfer Agent of the Company, if shares held in Physical form. <br /><br /><strong>For Foreign Residents</strong> <br /><br />Tax shall be deducted at source @20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors ("FIIs") and Foreign Portfolio Investors ("FPIs") in view of specific provision under section 196D of Act.</p>
Motilal Oswal Home Finance is a home financing company of Motilal Oswal Group. The company primarily gives average loans of 8.5 lac to the borrowers. Till Fy20-21, 80% of the loan book has been disbursed in the state of MH and Gujarat. Out of that , 45% of the total loan is disbursed to <strong>Self employed</strong> and 55% loan to <strong>Salaried class</strong>. Total loan book as on 31.03.2021, stands at ~3500 Crores.<!--more--> <strong>NBFC and Covid-19 Crisis</strong> The company which was started few years back has been facing issues since 2019, first due to NBFC crisis and then Covid-19 in 2020. Last year, with the implementation of lockdown, disbursements were halted, collection moderated and asset quality started worsening. However, the second half of FY21 witnessed improved performance by industry players in terms of disbursement and collection and the industry was expected to fully recover and registered a healthy growth in FY22. <strong>Covid-19 Second Wave</strong> As economy was about to come back at the pre-COVID level, the second wave has made situation more grim than previously. The nation wide lockdown was not done, however, most of the states are under lockdown which has severely affected the livelihood of lower and middle income people. This will again put lot of pressure on companies such as Motilal Oswal Home Finance to increase sales and get loan's EMIs on time. <strong>Management Analysis of FY20-21 </strong> 1. The culture of Work From Home, culture implemented by most of the corporates, there is need for bigger homes and also sense of owning house has increased resulting in demand for housing. Most of the states have also offered concession on stamp duty which has made housing more affordable. As result of these developments coupled with discounts offered by builders, there is record high home buying. 2. During the year Motilal Oswal Home Finance registered a robust PBT growth of 48% YoY and PAT growth of 73% YoY (excl. one me tax impact). 3. Disbursements remained muted for the first half of FY21, owing to lockdown, but Motilal Oswal Home Finance gradually picked up and disbursement stood at Rs.273 cr, which was up 42% YoY. 4. The loan book stood at ~ Rs.3,512 crores across 47,665 families as of March 2021. 5. Currently, Motial Oswal Home Finance has in-house collection team comprises of 500+ officers. They have strengthened legal unit to pursue legal cases aggressively such as SARFAESI, section 138 and arbitration cases. <strong>Business Performance of FY20-21 </strong> 1. MOHFL has disbursed Rs. 273 crores during FY21. 2. Average loan size of Rs. 8.6 lakhs. 3. The average tenure of the loan given is 15 years with loan limit of Rs.25 lakhs 4. Geographical reach across 9 states with 104 branches. Collection team of 500+ members along with robust legal team Catering to 47,660+ families 5. Average LTV of 59% as on 31st March, 2021 and Total staff count of 1,316 employees. <strong>Financial Performance of FY20-21 </strong> 1. Loan book stands at Rs.3,512 crores as on 31st March, 2021 2. Net Worth of r 910 crores as on 31st March, 2021 3. Profit stood at r 40 crores during FY21 4. NIM – 6.1%, Spread – 5.1% 5. GNPA – 2.2% and NNPA – 1.5% 6. Provision coverage – 92% 7. Net Debt to Equity – 2.8x 8. Cost to Income – 33% 9. Capital adequacy – 50% <strong>Valuation of Motilal Oswal Home Finance</strong> Currently, the share of Motilal Oswal Home Finance is available at Rs.14 per share in the unlisted market. The Book value as on 31.03.2021 is 1.65, so P/B is 8.48x ( looks highly overvalued).
Last one year has been the year of entrepreneurs and start ups which created a battlefield for new age business ruled and run via smartphone and mobile, targeting the urban youth and millennials. Such startups have written ample stories with young professionals visionaries paving their paths to the hard earned success. Discarding the classic David versus goliath wars, these new age businesses strive hard on the instincts of stability, survival and share in the market. One of the new startups to emerge is Urban Ladder, which is not an exception, allowing people to buy furniture online. Cofounded in July 2012 by Ashish Goel and Rajiv Srivatsa, Urban Ladder is a accreted marketplace for furniture that is backed with funding more than $75 million from investors like Sequoia Capital, Steadview Capital, SAIF partners, Ratan tata etc. Growing massively over the last couple of years.<!--more--> Urban ladder has a popular name in the startup space over the last one decade. Much like other startups, the Bengaluru headquartered entity delivers to more than 100 towns and cities across India. Urban Ladder has dabbled with the idea of going app-only but still holds on strong to the website. It is consistently adding new locations to its delivery map, which is helping the company to expand its business operations and increase revenue. Urban Ladder focuses on stylish and modernistic furniture that comes with the promise of superior quality. However, geographical diversification demands more customized design, material, and quality as the buyers from different states demand for vivid taste and preferences based on social, cultural, religious, weather and other factors. For instance, North Indian states preferred solid wood and carved furniture. In contrast, the south Indian states preferred lightweight and modular furniture. Wester Indian states demand for big sized furniture due to bigger houses, whereas eastern Indian states have a knack for classical carves. Urban Ladder invested heavily in data analytics to understand each geographical preference. They started customized and categorizing products for a specific geography. With over 4,000 products and 35 categories, by the end of 2014, they expanded to 12 cities.By the end of 2015, UL planned to expand its presence to about three dozen cities. To ensure customers didn’t receive damaged goods, special packaging teams were set up in all their 10 warehouses and each product was packed with at least five layers of foam sheets. By controlling the supply chains, they ensured that they reduced the damages to nearly 0.3%, which were previously as high as 25%. <strong>Funding Rounds</strong> To tackle and take on the stiff competition they seek strong financial backing, which they managed after roping in SAIF Partners and Kalaari Capital in November 2013 for a massive $5 million investment. This paved way to innovations and they increased their reach to Chennai and Pune as well. Their revenue also increased and topped the $1 million mark. In July 2014, they raised another whooping USD $21 Million from Steadview Capital (along with existing investors SAIF Partners and Kalaari Capital) as they were reaching the verge to break-even and staved for hefty capital to sustain the humongous growth. Tata Group chairman, Ratan Tata also invested an undisclosed amount in Urban Ladder in November 2014. This was Tata group’s third investment in e-commerce after Snapdeal and Bluestone. <strong>Acquisitions</strong> Urban Ladder had acquired Gurgaon-based furniture and home décor marketplace 'BuynBrag' in 2014. The acquisition was aimed at strengthening the home decor business of Urban Ladder. The acquisition was done privately and the details were not disclosed publicly. BuynBrag had also started operations in 2012. Urban Ladder is continually creating and launching new collections like the Malabar, the Eleanor & Louise, and the Fujiwara range. Urban Ladder launched design consultation as a service in 2016. The furniture exchange offer is provided by Urban Ladder’s partners Zefo and Quikr. <strong>Competitors in the market</strong> While Urban Ladder was planning expansion, it was not the only player in the online furniture market. By October 2016, Urban Ladder decided to take a risky bet. Going offline. Faced with mounting losses, online furniture company Urban Ladder has decided to foray into offline retail as a separate vertical. The company introduced its first shop-in-shop store in Bengaluru within sofa retailer Balini’s store. Doing so, they now came in direct competition with all the big offline & online players such as Home Town, Lifestyle Home Centre, Godrej Interio, Fab India, Style Spa, DLF Pure, Evok (Hindware), Pepper Fry, Fab Furnish and Zensaar. That’s why 'Experience Centre' became a much sought after demand which led to Urban Ladders pivot from a pure-play e-commerce platform to an omnichannel furniture brand. To fuel this, Urban Ladder even explored debt funding and raised around $3 million in venture debt funding as it got ready for the capital intensive world of furniture retailing. <strong>Dilemma of Tough Times</strong> Startups get funded for potential and exponential growth. As Urban delivered average growth in financial year 2017-18 it became difficult for them to raise funds from external investors and had to raise funds through existing investors. By late 2018, Urban Ladder had to let go of around 25% of its employees to manage cost pressure and low bank balance. By Sep 2019, Flipkart was capturing 41% of the online furniture market. The market itself was leap frogging with a CAGR of 80-85% with expectation that it would reach $700 million by 2022 In Apr 2019, its President and COO resigned. By June 2019, it fired 40% of its 1,1100 employee base in an effort to become lean and profitable and closed several verticals. The delay in paying vendors and the long wait also pushed vendors to ask for 100% upfront from the company <strong>Reliance climbed up to the 'Ladder'</strong> In November 2020, Reliance Retail Ventures, Retail arm of Asia's richest person Mukesh Ambani, acquired a 96% stake for over Rs 182 crore. The deal was concluded at 42% of the company's Topline in FY 2019-20. The company has the option of acquiring the remaining stake. It has proposed to make a further investment of up to Rs 75 crore in next few years. In the pandemic hit year of 2020, Reliance Retail Ventures, the subsidiary of Reliance Industries has completed its fund raising exercise and announced that it has raised Rs 47,265 crore ($6.4 Billion) for a 10.09% stake. The war chest was built by the company after it bagged deals with some the leading tech giants and private equity funds. Ambani led Reliance group has waged a retail war and thumping taking on players such as Jeff Bezos-led Amazon, Walmart-owned Flipkart, Swedish home furnishing major Ikea, and smaller rival Pepperfry in the battle for India’s $32 billion worth furniture market.
Mukesh Ambani's Retail arm, Reliance Retail has been ranked as the second fastest growing retailer in the world during the year 2021. The rankings have been released by Deloitte under the ranking of global retail power houses. However, the retail firm of Reliance Industries (RIL) topped the list in the previous year. It has been ranked 53rd in the list of Global Powers of Retailing, improvement from 56th earlier, according to the Deloitte report. Reliance Retail is the only Indian entry in the global list of 250 retailers. It features consecutively for the 4th time in the list of Global Powers of Retailing and World's Fastest Retailers. E-commerce, it said, is a second growth driver, through both digital commerce (B2C) and B2B.<!--more--> "The company is partnering with WhatsApp to further accelerate Reliance Retail's digital commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp," Deoitte said. Interestingly, Amabi's retail venture has outshined the peers with its spectacular results in the quarter ended on March 31, 2021. During the pandemic hit year, Reliance Retail drove well on the path of revenue and profits. The retail firm reported a 45% jump on year-on-year (YoY) basis in its net profit at Rs 2,247 crore in Q4FY21. The company's revenue surged 23.2% to Rs 47,064 crore for the period, compared to Rs 38,211 crore, an year ago. On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4% from Rs 37,845 crore. Revenue for the FY 2020-21 stood at Rs 1,57,629 crore, lower by 3.3% compared to Rs 1,62,936 crore during the previous year. However, net profit marginally increased 0.6% to Rs 5,481 crore for year year ended on March 31, 2021. The retail firm clock EBITDA of Rs 9,789 crore during the period under review, 1.1% up from the year ago. The company added 1,456 new stores and generated over 65,000 jobs during the distressed and challenging year. Out of these, 826 were introduced in the latest quarter. Total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year. According to the current share price, the market cap of Reliance Retail has crossed the $100 billion mark. It is the fourth domestic firm to achieve this feat. The company is valued at Rs 7.50 lakh crore, surpassing blue chips like Hindustan Unilever and HDFC Bank. US giant Walmart Inc has retained its place as the leader of the charts. Jeff Bezos' e-commerce conglomerate Amazon has improved its positioning to second. Costco Wholesale Corporation of US slipped a rank to be placed third followed by Schwarz Group of Germany. Among the top-10, US retailers took away 70 per cent share. UK's sole entry is Tesco PLC, featuring at 10th place. Other US retailers in the top 10 include The Kroger (5th), Walgreens Boots Alliance (6th) and CVS Health Corp( 9th). German retailer Aldi Einkauf and Aldi International Services are placed at 8th position. The shares of Reliance Retail are roaring aloud in the unlisted market, delivering over 4x return in the last one year. However, the counter has much potential for upside as the firm is still growing. The growth opportunities fares well for RIL, who is keen on shifting its focus to consumer oriented business from the B2B segment. Asia's Richest person Mukesh Ambani is looking to its retail arm in the next couple of years. He has turned the company net debt free, much prior than pledged. RIL holds over 99.95 per cent stake in Reliance Retail via its fully owned subsidiary Reliance Retail Ventures.
<strong>Decoding the PLI Scheme </strong> About a gross of companies have applied for a production linked incentive (PLI) scheme for IT hardware, including Dell, Rising Stars Hi-Tech (Foxconn) and Lava. Majority of the hardware manufacturing firms have applied under category IT hardware companies. According to the ministry of Information and Technology, these companies are expected to expand their manufacturing operations in a significant manner and grow into domestic leaders in IT Hardware production. The target IT hardware segments under the proposed scheme include laptops, tablets, all-in-one personal computers (PCs) and servers. <!--more--> The government of India will reward these entities by incentivising them. The Finance Minister Nirmala Sithraman announced the PLI scheme for the companies in the annual budget on February 1, 2021 and the same was notified on March 3, 2021 for IT hardware. The scheme extends an incentive of 4 per cent to 2 per cent or 1 per cent on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies. The period under review for the scheme shall pertain to a period of four years, that is FY 2021-22 to FY 2024-25. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products. The aim is to ensure India as a manufacturing hub for IT and hardware solutions. Ravi Shankar Prasad, Union Minister for Electronics and IT said that the PLI scheme for IT Hardware has been a huge success in terms of the applications received from global as well as domestic companies engaged in manufacturing electronics hardware products. Over the next four years, the scheme is expected to lead to total production of about Rs 1.60 lakh crore, out of which production worth Rs 1.35 lakh crore is proposed by IT hardware entities, whereas domestic manufactures are likely to contribute about Rs 25,000 crore of production. It is anticipated that the scheme will rope in about Rs 2,500 crore of additional investment in electronics manufacturing and will generate over one lakh direct and indirect employment opportunities in next four years. <div class="yj6qo ajU"></div>
Domestic Phone maker Lava International is preparing to raise funds via rights issue as it seeks to capitalize on the incentives offered by the government to boost local manufacturing of electronics. The 15-day issue opens on 4th of May, 2021 and can be subscribed till 18th day of the same month. "The Company board of directors in their meeting held on April 30, 2021 have accorded their approval to the issue and allotment of equity shares by way of rights issues to the existing equity shareholders of the company as on April 23, 2021, the record dates, pursuant to 62(1)(a) and other applicable provisions of the Companies Act 2013, if any, read with the rules framed thereunder.", the company wrote to its equity shareholders.<!--more--> The additional funds which shall be raised by the means of rights issue, inter-alia, shall be utilized for business development, meeting its working capital requirements and for general corporate purposes. However, the company has mentioned that the fund requirements and deployment described is based on internal management estimates and has been appraised by any bank, financial institution or any other external agency. These are based on the current circumstances of the company. The company is issuing shares at a price of Rs 533 apiece under its rights issue. The company is entitled for equity shares of face value of Rs 10 each at a premium of Rs 523 per share to shareholders, as on the record date. The company is planning to issue 1.15 per cent of total outstanding equity shares 12.48 crore. The company is likely to issue 14.35 lakh equity shares. According to this mathematics, The company has offered one equity share for every 87 shares held. At the current price quoted in the right issue, the company is valued at Rs 6,650 crore, just 1.27 times its revenue. The phone maker is in the list of homegrown firms, racing to hit primarily with their initial public offering (IPO). Lava has plans to raise around Rs 1,400 crore via primary route. However, the clearity is much awaited. The company’s plans signal the comeback of Indian phone manufacturing, years after domestic producers were edged out of India’s massive smartphone market by Chinese rivals offering cheaper phones with better specs. Smartphone shipments in India hit a record 50 million in the September quarter, according to a report by market research firm Canalys. The government has been working actively on making India an alternative manufacturing hub to China and has announced production-linked incentives and other benefits. Lava is trying to reap benefits from the opportunity created by the PLI scheme for mobile manufacturing in India, which is ruled by Chinese and Korean players. Lava now eyeing a market share of 5 per cent in the smartphone segment. Phone makers are expected to benefit from the government’s new production-linked incentive (PLI) scheme, which offers 4-6% incentive for mobile manufacturers. Lava is one of five domestic manufacturers that have won approvals for the scheme. The company reported Rs 5,264 crore revenue for the year ended on March 31, 2020, compared with Rs 5,108 crore a year ago. The company managed a net profit of Rs 107 crore on that revenue, compared to Rs 73 crore in the previous year. Noida headquartered Lava International is eyeing expansion with exports in focus. It has submitted proposals to make low-cost phones for telcos in the US. The company has overseas operations in 11 countries including Thailand, Nepal, Bangladesh, Sri Lanka, Indonesia, Mexico and some West Asian countries. Lava’s comeback strategy is to replicate the success of Chinese smartphone makers by offering phones with top-notch specifications at lower price points. But the smartphone market share of Lava was 6 per cent in 2015, according to Counterpoint Research, which dwindled to below 1 per cent in 2020.
Reliance Retail, a retail arm of Mukesh Ambani's Reliance Industries (RIL), has outshined the peers with its spectacular results in the quarter ended on March 31, 2021. Reliance Retail continues to be the driver of revenue and profits for Mukesh Ambani. The retail firm, on 30 April reported a 45% jump on year-on-year (YoY) basis in its net profit at Rs 2,247 crore in Q4FY21. The company's revenue surged 23.2% to Rs 47,064 crore for the period, compared to Rs 38,211 crore, an year ago. On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4% from Rs 37,845 crore.<!--more--> Revenue for the FY 2020-21 stood at Rs 1,57,629 crore, lower by 3.3% compared to Rs 1,62,936 crore during the previous year. However, net profit marginally increased 0.6% to Rs 5,481 crore for year year ended on March 31, 2021. The retail firm clock EBITDA of Rs 9,789 crore during the period under review, 1.1% up from the year ago. Despite the Covid-19 pandemic, the company added 1,456 new stores and generated over 65,000 jobs during the distressed and challenging year. Out of these, 826 were introduced in the latest quarter. total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year. "Reliance Retail delivers a resilient performance against the backdrop of an unprecedented and challenging operating environment, arising from the COVID pandemic situation that emerged at the start of the year,” the company said in a release as it declared its results." Reliance’s online bets – JioMart and Ajio.com – continue to be the drivers of growth. As per Reliance, its grocery vertical hit all-time high revenues with a double digit quarterly growth. "3x growth in JioMart Kirana partnerships over last quarter has extended to 10 new cities and taking the count to 33 cities," said the company. Ajio.com – the company’s fashion and lifestyle e-commerce bet – has seen four times growth in revenue over the last one year. Meanwhile, Reliance Trends, the company’s fashion and lifestyle stores, now contributes over 55% to the retail arm’s total revenue. Last year, Reliance Retail Venture, the holding company for Reliance Retail, raised about Rs 47,265 crore from global private equity funds by selling 10.09% stake. Unlisted shares of Reliance Retail have more than trebled since January last year. It still has more upside potential. According to the current share price, the market cap of Reliance Retail has crossed the $100 billion mark. It is the fourth domestic firm to achieve this feat. The company is valued at Rs 7.50 lakh crore, surpassing blue chips like Hindustan Unilever and HDFC Bank. <div class="yj6qo"></div> <div class="adL"></div>
Signify Innovations India, formerly known as Philips Lighting India, said its brand EcoLink is expected to clock five-fold growth and will be a Rs 500-crore brand by 2023, according to a top company official. Signify is expanding beyond lighting and switches and is entering into the Fans category through EcoLink brand and has plans to add more products to make it a home electrical brand for value-conscious buyers. Besides, Signify Innovations has also made India a development hub for the EcoLink brand, which was launched in 2019, to cater the value-conscious segment.<!--more--> "Our ambition is to make EcoLink a Rs 500 crore brand in three years till 2023," Signify Innovations India Vice Chairman and Managing Director Sumit Joshi told PTI. The brand has crossed the business of Rs 100 crore in the first year of operation, he added. “Now we are taking the second step and entering into the market, which is quite a significant size market. We have invested quite a bit, ensuring that our manufacturing and products are extremely good. Now it is time, when we will also invest in our front end, where we will invest in creating EcoLink as a brand. We are investing in the go-to market,” Joshi said. Presently, India is the biggest market for EcoLink, which has a current portfolio featuring more than 300 lighting products. Besides, the brand is also present in markets such as Indonesia, the Middle East and a few parts of Europe. “But it is also unique that India is a development hub for the brand as well for all the categories, in which we are getting into,” Joshi added. After fans, Signify Innovations has plans to expand its offering and foray into several new segments step by step and create disruption with affordable prices with quality. The company is leveraging its R&D strength and innovation to bring new products. “We have decided Fan is a great opportunity to enter into. It''s a big Rs 11,000 crore plus category,” he said. Signify Innovations would leverage its existing sales and distribution network for the EcoLink branded fans. “We have a great relationship and most distributed brand in the lighting. We have a leverage point there,” Joshi said. The newly launched range of EcoLink fans features more than 36 products in the ceiling fans category. According to the Indian Fan Manufacturers Association data, fans which are essential items for the masses and have one of the highest levels of penetration of 74 per cent of households across India. Companies such as Orient Electric, Havells India, Crompton Greaves, Bajaj Electricals, Usha International, Polar, Luminous operate in this segment. PTI KRH DRR DRR
Tamilnad Mercantile Bank which is predominantly having branches in South India, has come up with excellent FY21 numbers. The highlights of the business is mentioned below. <ol> <li>Deposit has increased from 36825 Crores to 40970 Crores. <span style="font-size: 14pt;"><strong>[Growth of 11.2%]</strong></span></li> <li>Advances has increased from 27715 Crores to 31069 Crore. <span style="font-size: 14pt;"><strong>[Growth of 12.10%]</strong></span></li> <li>Net-Profit of ~600 Crores in FY21 as compared to ~400 Crores last year. <span style="font-size: 14pt;"><strong>[Growth of 50%]</strong></span></li> <li>Gross NPA stands at 3.44% in FY21 as compared to 3.62% last year.</li> </ol> <!--more--> TMB bank has shown this exceptional performance on the back of lower provisioning, increase in advances and revision of interest rates. As per management commentary, for a next year TMB would lay thrust on consistent CASA growth, credit growth with specific thrust on retail lending and introduce call centre operations, and among others. <strong>Below is the graphical representation of TMB last 5 year growth</strong> <img class="alignnone wp-image-15753" src="https://unlistedzone.com/storage/knowledge-logo/15.png" alt="" width="414" height="311" /> <img class="alignnone wp-image-15754" src="https://unlistedzone.com/storage/knowledge-logo/16.png" alt="" width="414" height="310" /> <img class="alignnone wp-image-15755" src="https://unlistedzone.com/storage/knowledge-logo/17.png" alt="" width="413" height="310" /> <img class="alignnone wp-image-15756" src="https://unlistedzone.com/storage/knowledge-logo/18.png" alt="" width="411" height="308" /> <strong>Valuation of TMB bank</strong> As on 31.03.2021, the book value of TMB is 321 per share. TMB share is available in the market at Rs.520 per share. So, P/B 1.61x, which is looks quite a reasonable valuation. <strong>IPO Plans</strong> As per management, TMB bank is soon filling for an IPO to raise 1000-1300 Crores from the market. The IPO would be a mix of fresh shares and OFS.
LAVA which has a wide product portfolio that encompasses tablets, feature phones, and smartphones having various models in bar at multiple price points to suit all categories of consumers, is looking to make a mark in the smart phone industry in India which is dominated by Chinese players like BBK which owns brands like VIVO, One-plus and OPPO and Xiaomi with brand like Redmi and Mi having more than 60% market share.<!--more--> As per commentary from the management, they are looking to acquire market share of 5% at the end of this financial year. Lava is a dominant player in feature phone category with 20% market share but due to rise in demand for smart phones in India even at lower strata of population, they are building smart phones in 4G and 5G technology. In the first of its kind experiment, Lava in January launched a smart phone a "made-to-order" which allows users to make a smartphone as per their requirements. For example, if you need more RAM, same can be increased or phone running out of space, same can be increased. So, this looks a very good prospect as far as user experience is concerned. Lava founder Shri Hari Om Rai is the man behind launching of PLI scheme is India for mobile manufacturing and they are the front runner in getting chance to make phone under this scheme. As per scheme, every participant has to put some minimum investment and have to manufacture minimum number of mobile phones. However, due to pandemic situation Lava like other players did not meet the criteria. However, they are hopeful for meeting the same this fiscal year.
<p>The Dr Shield Face Mask by STUDDS is a state-of-the-art FFP2 grade respiratory mask, designed to offer robust protection against pollution, dust, and various viruses and microbes. This advanced face mask is crafted with five distinct layers, each serving a specific purpose in filtration and protection.</p> <p>The first layer, made from non-woven fabric, acts as the initial barrier, filtering out larger dust particles. The second layer, also constructed from non-woven fabric, targets particles larger than 10 microns. The crucial third and fourth layers consist of high-grade melt-blown fabric, which is key in filtering out particulate matter as small as PM 2.5 microns. Finally, the fifth layer, made from non-woven fabric, provides additional fine filtration, ensuring comprehensive protection.</p> <p>Not only is the mask highly effective in filtration, but it also emphasizes user comfort. It includes a nose clip for a secure and snug fit, ensuring perfect sealing. This feature also helps in maintaining optimal pressure during both inhalation and exhalation. Adding to the user's peace of mind, the masks are pre-sanitized and intended for one-time use.</p> <p>Priced at Rs.125, the Dr Shield Face Mask by STUDDS is a premium choice for those seeking high-level protection combined with comfort in their daily lives.</p>
Haldiram is a no new name to Indian households and families. The brand is highly renowned amongst all classes and sections of the society. The business has grown leaps and bounds through its sheer exemplary efficiency from being extraordinary amongst the ordinary. The story of the iconic bhujia maker is quite inspirational. It grew from a small namkeen shop in Bikaner, Rajasthan into a multi-billion dollar company. It began in 1918 as a part-time hobby for extra income has today become a behemoth enterprise in the food industry in India generating over to Rs. 7000 crore in annual revenues combining the business of Kolkata, Delhi, and Nagpur Groups<!--more--> <strong>Beginning of the Story and forming Haldiram in 1938</strong> At the age of 12 , when most children went to school, Ganga Bhishen Agarwal spent his days in Bikaner inventing the omnipresent snack Bhujia. Soon Haldiram bhujia became irresistible to customers. The most important changes he made to the bhujia was making it out of 'moth dal' Moth lentils rather than besan. This amendment in delicacy changed his life overnight as moth is very popular and easily available in Rajasthan. He also focussed on making it the fine crispy bhujia we know today transforming it from the fat, slightly bland version from before his time. The boy in his early days in business also demonstrated a knack for marketing by setting the price point such that the product was more exclusive and not just considered a commodity, selling for 5 paise a kilo as opposed to the earlier 2 paise under his grandfather Bhikharam. Determined to take bhujia beyond the boundaries of Bikaner, they shifted base to Nagpur in 1970. Their they had opened first full-production unit to introduce a delectable variety of savouries, sweets and beverages to the market. The success of this venture led them to expand and evolve as a brand, that is an integral part of every Indian household today. Today, the company has three areas of operations with Delhi-based Haldiram Snacks and Ethnic Foods in the northern region, Nagpur-based Haldiram Foods International in western and southern regions and a much smaller Kolkata-based Haldiram Bhujiawala in the eastern region. <strong>Timeline of History and Family Dispute</strong> <ol> <li style="list-style-type: none;"> <ol> <li><strong>1937</strong> - <span class="JsGRdQ">The Haldiram story began in 1937, when Gangabhisan Agarwal set up shop in Bikaner.</span></li> <li><strong>1955</strong>- <span class="JsGRdQ">Kolkata was the first of the family's forays outside home, when Rameshwarlal Agarwal, Gangabhisan's youngest son, set up the "Haldiram Bhujiawala" in the Burrabazar area.</span></li> <li><strong>1970</strong> - <span class="JsGRdQ">Success of Kolkata shop and to cater the rising demand of products they had opened their first manufacturing unit in Nagpur.</span></li> <li><strong>1983</strong> - <span class="JsGRdQ">First retail outlet was setup in Delhi. This has got very good response from Delhi crowd and as well as among the tourists.</span></li> <li><strong>1990</strong> - The Agarwal siblings split in the early 1990s, dividing business operations in four different zones. While Manoharlal and Madhusudan got the north Indian markets, Shiv Kishan the south and west markets, and Prabhu Shankar and Ashok the markets in east India.</li> <li><strong>1999</strong>- The matter had gone to court for the use of Brand name of Haldiram.</li> </ol> </li> </ol> <strong>From Rags to Riches</strong> The business that began in a small shop now spans not only all regions of the country, but also marks its presence in international markets. It has a tremendous presence across the globe. In contemporary times, Haldiram products are exported to several countries worldwide, including Sri Lanka, United Kingdom, United States, Canada, United Arab Emirates, Australia, New Zealand, Japan, Thailand, and others. Haldiram boast of its portfolio of over 400 products, ranging from <em>Namkeens</em> and <em>Snacks</em>, <em>Sweets</em>, <em>Refreshment drinks</em>, <em>Frozen foods</em>, <em>Ready to cook dishes</em> and <em>Quick-service restaurants.</em> <strong>Manufacturing Units </strong>The Nagpur headquartered company has manufacturing plants in Nagpur, New Delhi, Kolkata, Bikaner. Haldiram has its own retail chain stores and a range of restaurants in Nagpur and Delhi. <strong>Positioning</strong> The initiatives undertaken by the company helped Haldiram to uniquely position its brand. Haldiram also gained an edge over its competitors by minimizing promotion costs. Success of Haldiram is a sheer example of 'word of mouth' or 'mouth to mouth' publicity. Appreciating the company's efforts at building a brand, an analyst said, "Haldiram once was just another sweet maker but it has moved into trained brands first by improving the product quality and packaging. Through its clever products and brilliant distribution it had moved into the star category of brands." <strong>Steps ahead in Leadership</strong> In 1994, the unit was awarded the International Award for Food & Beverages by the Trade Leaders Club in Barcelona, Spain. The unit also received the Brand Equity Award15 in 1998. Manoharlal Agarwal, who played a key role in the success of the Delhi unit, was included in the eighth edition of Distinguished Leadership by the Board of Registrars of The American Biographical Institute16. Haldiram was also admitted as a member of Snack Food Association, US. <strong>From Bikaner shop to French Bakery</strong> While largely remaining closely guarded from the prying eyes of the public, Manohar Lal Agarwal and his brother have been pushing boundaries in the business. The recent venture with the second largest bakery chain in the world, Brioche Dorée, is proof that Haldiram is set on broadening their reach. For the first time, the bakeries will only be serving vegetarian food tailored to the Indian market. Similar to PepsiCo in the past, breakfast products giant Kellogg’s has also recently shown interest in partnering with or buying a stake in Haldiram (Nagpur and Delhi enterprises), valuing them at $3 billion. <strong>Pricing</strong> Haldiram charge a decent premium owing to the branded and well packaged products. They give a huge importance to good presentation and lively packaging as a way of differentiation from other non-branded unorganised products and thus demand a premium for it. But since the premium is so small that consumers usually don’t mind given the trusted high-quality products. At the same Haldiram, is facing stiff competition from other branded competitors like Bikaji, Lehar, Bikano etc. Thus the pricing has been the key factor contributing to their success. Thus competitive pricing is the backbone of its marketing mix business strategy. To charm the more price sensitive customers, Haldiram has come up with small one-time consumption packages of 40 grams which are priced at Rs. 10 for its most famous Bhujia. Company has introduced different products under various weights, which have different pricing. <strong>Marketing Strategies:</strong> From the initial days onwards Haldiram never invested much in Marketing and advertising to expand his brand they gained their business majorly through word of mouth. But now due to the intense competition, they realized the importance of marketing and advertisement and started gaining attention from them. One of the major recent campaigns is with Haldiram tied up with a Bollywood movie under Rajshri production 'Prem Ratan Dhan Payo', starring Salman Khan and Sonam Kapoor. It launched a contest for promotions through which they distributed 1.5 crore packets of snacks. The family business of Haldiram is divided into 4 main entities having businesses in North India, South & West and East Market and having combined revenue in excess of 7000 crores. Below, we are analyzing the financials of one of the group company called <strong>Haldiram Snacks Private Limited having business in the North Indian markets.</strong> <strong>Shareholding Pattern</strong> Haldiram Snacks Private Limited is largely owned by a couple of trusts, holding 64.67% stake in the <em>Sweets</em> and <em>Namkeen</em> maker. According to the details till FY 2019-20, Radhe Krishna Trust holds 39.53% and Annapurna Trust holds 25.14% stake in the company. Haldiram manufacturing company has 15.94% stake of the Haldiram Snacks. <img class="alignnone wp-image-15550" src="https://unlistedzone.com/storage/knowledge-logo/Haldirams-Shareholding-Pattern.png" alt="" width="358" height="358" /> <strong>Cash Flow (Fig. in Crores)</strong> In year 2019 and 2020, the company has generated negative free cash flow due to higher capital expenditure. However, cash flow of the company is constantly rising, except a sharp fall in 2019, when its cash flow plunged 60.8% to Rs 194 crore, compared to Rs 496 crore in 2018. In 2020, it managed a cash flow of Rs 372 crore, 91% higher than the previous year. <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td width="210">Particulars</td> <td width="78">2015</td> <td width="77">2016</td> <td width="74">2017</td> <td width="88">2018</td> <td width="76">2019</td> <td width="78">2020</td> </tr> <tr> <td>Cash Flow from Oprating Act</td> <td>216</td> <td>334</td> <td>305</td> <td>496</td> <td>194</td> <td>372</td> </tr> <tr> <td>Capital Expenditure</td> <td>144</td> <td>223</td> <td>233</td> <td>387</td> <td>424</td> <td>494</td> </tr> <tr> <td>Free Cash Flow</td> <td>72</td> <td>111</td> <td>72</td> <td>109</td> <td>-230</td> <td>-122</td> </tr> <tr> <td>Cash Flow from Investing Act</td> <td>-140</td> <td>-283</td> <td>-233</td> <td>-344</td> <td>-314</td> <td>-478</td> </tr> <tr> <td>Cash Flow from Financing Act</td> <td>-72</td> <td>-54</td> <td>-64</td> <td>-68</td> <td>137</td> <td>38</td> </tr> </tbody> </table> </div> <strong>Balance Sheet</strong> <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td width="210">Particulars</td> <td width="78">2015</td> <td width="77">2016</td> <td width="74">2017</td> <td width="88">2018</td> <td width="76">2019</td> <td width="78">2020</td> </tr> <tr> <td>Share Capital</td> <td>33</td> <td>33</td> <td>33</td> <td>33</td> <td>33</td> <td>33</td> </tr> <tr> <td>Reserves</td> <td>542</td> <td>604</td> <td>852</td> <td>1107</td> <td>1469</td> <td>1774</td> </tr> <tr> <td>Borrowings</td> <td>320</td> <td>286</td> <td>238</td> <td>183</td> <td>335</td> <td>401</td> </tr> <tr> <td>Other Liabilities</td> <td>187</td> <td>216</td> <td>250</td> <td>353</td> <td>404</td> <td>533</td> </tr> <tr> <td>Total Liabilities</td> <td>1083</td> <td>1139</td> <td>1372</td> <td>1676</td> <td>2240</td> <td>2741</td> </tr> <tr> <td>Fixed Assets</td> <td>653</td> <td>755</td> <td>813</td> <td>802</td> <td>888</td> <td>1103</td> </tr> <tr> <td>Capital WIP</td> <td>38</td> <td>68</td> <td>83</td> <td>265</td> <td>380</td> <td>446</td> </tr> <tr> <td>Investments</td> <td>24</td> <td>68</td> <td>70</td> <td>159</td> <td>222</td> <td>217</td> </tr> <tr> <td>Other Assets</td> <td>369</td> <td>248</td> <td>406</td> <td>451</td> <td>750</td> <td>975</td> </tr> <tr> <td>Total Assets</td> <td>1083</td> <td>1139</td> <td>1372</td> <td>1676</td> <td>2240</td> <td>2741</td> </tr> </tbody> </table> </div> <strong>Profit and Loss</strong> <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td width="210">Particulars</td> <td width="78">2015</td> <td width="77">2016</td> <td width="74">2017</td> <td width="88">2018</td> <td width="76">2019</td> <td width="78">2020</td> </tr> <tr> <td>Sales</td> <td>1,770</td> <td>2,004</td> <td>2,449</td> <td>2,623</td> <td>3,094</td> <td>3,801</td> </tr> <tr> <td>Cost of Materials Consumed</td> <td>1,078</td> <td>1,196</td> <td>1,529</td> <td>1,363</td> <td>1,800</td> <td>2,194</td> </tr> <tr> <td>Purchase of Stock in Trade</td> <td>21</td> <td>20</td> <td>37</td> <td>215</td> <td>133</td> <td>246</td> </tr> <tr> <td>Change in Inventory</td> <td>-10</td> <td>-0.05</td> <td>-0.28</td> <td>6.20</td> <td>-32.80</td> <td>-3.53</td> </tr> <tr> <td>Employee Benefit Expenses</td> <td>110</td> <td>124</td> <td>159</td> <td>174</td> <td>255</td> <td>326</td> </tr> <tr> <td>Other Expenses</td> <td>290</td> <td>469</td> <td>455</td> <td>305</td> <td>412</td> <td>464</td> </tr> <tr> <td>Oprating Profit</td> <td>281</td> <td>195</td> <td>269</td> <td>559</td> <td>526</td> <td>575</td> </tr> <tr> <td>OPM %</td> <td>15.87%</td> <td>9.71%</td> <td>10.98%</td> <td>21.32%</td> <td>17.01%</td> <td>15.12%</td> </tr> <tr> <td>Finance Cost</td> <td>24</td> <td>20</td> <td>16</td> <td>11</td> <td>19</td> <td>33</td> </tr> <tr> <td>Depreciation</td> <td>71</td> <td>84</td> <td>103</td> <td>87</td> <td>120</td> <td>152</td> </tr> <tr> <td>Profit Before Tax</td> <td>191</td> <td>91</td> <td>281</td> <td>401</td> <td>507</td> <td>434</td> </tr> <tr> <td>Tax Expenses</td> <td>63</td> <td>29</td> <td>90</td> <td>151</td> <td>162</td> <td>118</td> </tr> <tr> <td>Profit After Tax</td> <td>128</td> <td>62</td> <td>191</td> <td>253</td> <td>347</td> <td>319</td> </tr> <tr> <td>NPM</td> <td>7.23%</td> <td>3.08%</td> <td>7.80%</td> <td>9.64%</td> <td>11.23%</td> <td>8.38%</td> </tr> <tr> <td>EPS</td> <td>39</td> <td>19</td> <td>58</td> <td>77</td> <td>105</td> <td>95</td> </tr> </tbody> </table> </div> The sales of the company have been rising consistently from year 2015 to 2020. The total revenue during the period has surged up to 115% to Rs 3,801 crore from Rs 1,769 crore. The operation profit margin has remained in double digits, barring year 2016. The company has witnessed a consistent rise in Profit after Tax (PAT), which increased up to 150% between 2015 to 2020. The company generated a PAT of Rs 128 in 2015 and Rs 318 in 2020. The net profit margin has remained near double digits during the period under review. <strong>Graphical Representation of Haldiram Snacks Private Limited Financials</strong> <img class="alignnone wp-image-15558" src="https://unlistedzone.com/storage/knowledge-logo/11-3.jpg" alt="" width="530" height="398" /> <img class="alignnone wp-image-15574" src="https://unlistedzone.com/storage/knowledge-logo/12-3.jpg" alt="" width="530" height="397" /><img class="alignnone wp-image-15575" src="https://unlistedzone.com/storage/knowledge-logo/13-3.jpg" alt="" width="530" height="398" /> <img class="alignnone wp-image-15565" src="https://unlistedzone.com/storage/knowledge-logo/14-1.jpg" alt="" width="530" height="397" /> <img class="alignnone wp-image-15566" src="https://unlistedzone.com/storage/knowledge-logo/15-1.jpg" alt="" width="530" height="398" /> <strong>Valuation of Haldiram Group</strong> In 2019, Kellogg had made an interest in the growth story of Haldiram and at that time it was valued at $3Billion of the whole group. However, things didn't work out due to some complications in the business structure of Haldiram and the ongoing dispute in the court. Kolkata Group has taken Delhi and Nagpur entities to the court for the fight of brand ownership and trademark. <a href="https://unlistedzone.com/storage/knowledge-logo/AR-2020-1.pdf">Annual report of Haldiram Snack Private Limited 2020</a> <a href="https://unlistedzone.com/storage/knowledge-logo/AR-2019.pdf">Annual Report of Halidram Snack Private Limited 2019</a> <a href="https://unlistedzone.com/storage/knowledge-logo/AR-2018.pdf">Annual Report of Haldiram Snack Private Limited 2018</a> <a href="https://unlistedzone.com/storage/knowledge-logo/AR-2020-1.pdf">Annual Report of Haldiram Snack Private Limited 2017</a> <a href="https://unlistedzone.com/storage/knowledge-logo/AR-2020-1.pdf">Annual Report of Haldiram Snack Private Limited 2016</a>
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