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7 : Summary, Conclusion and Recommendat ions
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Chapter 7: Summary, Conclusion and Recommendations
An empirical study of the practices of the Capital Budgeting for evaluation of investment
proposals in the corporate sector in India has been made in the preceding chapters.
Comparison, wherever possible, has been made with the practices and procedures in the
foreign countries. It has to be noted that conclusions based upon a study of this type have
to be taken as indicative of broad trends only. However, the results of this study do
indicate that majority of large scale companies in India are aware of the need for a well
formulated capital budgeting decisions. It is proposed to review the important findings of
this study and venture to outline some suggestions and recommendations for the benefit
of academicians, industry as well as for post doctoral research.
An in-depth analysis has been carried out to observe the trend and insight into factors that
influence capital budgeting decisions. The results of the survey and its analysis have been
provided in chapter 5.
The companies in India do have specific amount of average size of annual capital budget
and all project size requires formal quantitative analysis. However, such analysis and use
of capital budgeting method differ on the basis of nature and size of a particular project
under consideration. Surprisingly, the companies under study in India seem to be
planning one year in advance only but here also the period of planning is different for
different projects. This may be due to volatile business environment. The authority to take
final capital budgeting decision rests with the chief finance officer and top management
officials of all the organizations under study.
One of the objectives of this study is to determine the types of capital investments
undertaken and the methods of appraisal used. The responding firms ranked pay back
period as the most important technique followed by internal rate return and net present
value. Thus, pay back period method (59.3%) still continues to be the most favoured
technique though it ignores time value of money and also the cash flow beyond pay back
period followed by IRR. But almost all the company’s are using now multiple techniques
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for evaluating their capital budgeting proposals. In this research study, the company’s
prefer IRR and NPV with the PBP method. The investment in the new projects being
strategic decisions in nature IRR, PBP and NPV are the most preferred techniques while
for expansion, replacement, modernization, etc. PBP is favoured by the respondents.
Another objective of this study is to analyze the problems faced to estimate the cash flows
associated with each capital investment accurately. The cash flow estimation is
considered as the most difficult task in capital budgeting decisions. This can be
understood from the responses of the respondents of the present study. Many respondents
have replied that items like expenses incurred on R&D, market survey, test marketing,
interest on borrowings, depreciation, income taxes etc. have been included in the cash
flows which requires to be excluded actually. In fact, many of them might have been
intending to convey that they include it in the project cost. Even the firms are using
different inflation adjustment methods for their investment appraisal.
One of the objectives of this research is to analyze how ‘Risk’ and ‘Uncertainty’ in the
future estimates in investment projects is being taken care of. Sensitivity analysis is
considered as the most important technique while scenario analysis is considered as the
second important technique for assessing risk. The other more sophisticated techniques
like Decision tree, Monte Carlo simulation, Certainty equivalent, Probability analysis,
Beta analysis has got very low ratings that means these techniques are rarely used in
practice by firms in India.
The researcher wanted to assess suitability of Discounted Cash Flow (DCF) Techniques
in India and the preferences between Net Present Value (NPV) and Internal Rate of
Return (IRR) methods. All the companies responded to my study are using DCF
techniques either IRR or NPV or both which indicates that now these techniques are very
well accepted and used by finance officials of the organizations. With reference to this
Porwal (1976) in his study has mentioned, “As long term planning under the present
conditions is not quite possible in India, the use of DCF methods do not seem to be
efficacious. However, it needs to be mentioned that as conditions improve, it would be
desirable for Indian companies to apply ‘theoretically correct’ techniques in a larger
measure.” Prasanna Chandra (1975) in his study conducted on 20 companies made the
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following observations. “The most commonly used method for evaluating the investments
of small size is payback period method….For investments of large size, the average rate
of return is commonly used as the principle criterion and the payback period is used as a
supplementary criterion. DCF techniques, though not commonly used, are gaining
importance, particularly in the evaluation of large investments.” It appears that now
though the government restrictions are minimized on business but firms are always
working under highly volatile environment. Still no respondents in my study is using only
pay back period method at the same time no organizations are using single technique for
evaluating capital budgeting proposals. Though Pay back period is still a popular
technique, it is always used with some other DCF techniques which are in most of the
cases IRR or NPV. The suitability of DCF techniques even depends on how professional
the organization is. But all the respondents in my study appreciate and use the suitability
of these techniques. In capital budgeting literature, two widely discussed methods for
appraisal of capital investments are the NPV and IRR methods. There is good amount of
controversy exist regarding the superiority of one method over the other. Many authors
argue that the NPV method leads to correct decision (Bierman and Smidt S, 1980). On the
other hand Merret A J and Sykes A (1966) prefer the yield method. In some situations the
NPV and yield methods give contradictory results. Babu C P (1984) explains the reasons
for this phenomenon-“…in capital investment appraisal using the yield like yield to
maturity in bonds, or as a growth rate of an investment is misleading, and is responsible
for the contradictions that exist between the NPV and yield methods.” He further says
that as the NPV criterion is compatible with the objective of the firm, the yields can be
used in such a manner so as to give the same results as that of NPV. The respondents of
my study prefer both the techniques but IRR (40.7%) seems to be given more importance
by them in comparison to NPV (33.3%) as it gives some rate for comparison. When they
were asked to mention frequency of the use of different capital budgeting techniques the
NPV (59.3%) got more preference than IRR (55.5%). Thus, it can be concluded that both
the techniques goes side by side when it comes to selecting one over the other. The
respondents of my study prefer both the techniques but IRR seems to be more favoured
by them as it gives some rate for comparison, however, there is a negligible difference
between the preference for both the techniques i.e. NPV and IRR. The uses of DCF
techniques require determining the minimum acceptable rate of return for using it as a
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discount rate. The study reveals that weighted average cost of capital (55.6%) is
maximum in use for using it as a discount rate. And the preferred methods of estimating
cost of equity are CAPM (capital asset pricing model) and dividend yield plus growth rate
followed by cost of debt plus risk premium. The use of present market values of debt-
equity is more preferred (46.67%) while calculating WACC. Generally, the companies do
not prefer to use different discount rates for different sizes of investment. The maximum
number of companies (70.4%) do prefer to categorize projects into different risk classes
and they feel that fluctuations in expected return as a major risk factor followed by
changes in economic, social and political factors. Sensitivity analysis (81.4%) is
considered as the important technique for assessing risk followed by scenario analysis
(62.9%). There is no major switch in techniques by the companies for investment
appraisal. Almost three fifth of the firms place a limit on the size of its annual capital
budget. There are many reasons responsible for it but the main reason is investment
decisions important for whole group and require central control (38.9%) followed by the
another reason i.e. management wants to control areas of activity and mix of products.
The companies do accept non-economic projects due to many reasons viz., health and
safety, legislation, social and environmental reasons etc. The most of the firms prefer to
go for post audits of their major capital expenditures. The CFOs and Board of Directors
are involved for approving almost all capital budgeting projects in all organizations.
Further, An effort has been made to develop a relationship between the independent variables;
Plant and machinery and sales to explain the variation in the dependent variable as operating
income of the company. The analysis has been carried out with the help of regression analysis.
The period covered in the study is last five financial years (2003-2007). The summarized results
of analysis for each company are provided in the chapter 6.
It is clear from the results obtained that, in most cases the R2 for almost 90 % of the
companies is around 95 %. Thus, it can be said that capital budgeting decisions leading to
investment in plant and machinery and sales together influence almost 95 % variation in
the operating income of a company. Thus, our findings, through the above analysis it can
be stated that proper usage of capital budgeting techniques lead to accurate decision for
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investment in fixed assets especially plant and machinery and hence better operating
income that the better capital budgeting.
Limitations of the study:
It is important to acknowledge and discuss some of the limitations of the study.
The survey was limited to the large scale listed firms only. The capital budgeting
practices of listed firms may not be representative of all firms in India. The survey
questionnaires used in this study were inherently limited in scope which is based upon
stringent underlying assumptions about market conditions and firm behavior. Such an
approach implies a level of universality that may not exist. Further research is needed to
discover whether there are significant cultural and institutional issues related to corporate
financial policies and practices that are unique to India. The results of the study are
compared with the results of previous surveys in the U.S. and other countries of the Asia-
Pacific region. However, such comparisons among the countries must be approached
cautiously because the surveys were conducted at different times and during different
economic conditions. While the survey was mailed to the CFO, the responses were the
opinion of one individual and thus may not fully reflect the firm’s position. It is possible
that this person may not be the best to assess the capital budgeting process if he/she is far
removed from capital management. There is also potential concern about a non-response
bias. In an attempt to limit this limitation, five personalized mailings were sent over a
period of one year. Further, the companies participated in survey will be given a copy of
results. While the survey technique is not without flaws, it has been generally accepted as
a reasonable proxy given the time and personal constraints in large scale companies.
Suggestions/Scope for Further Research study:
Due to the limited scope of the present study, a large number of research issues are not
attempted but are felt in the course of the study. Some of them are as follows.
1. The results of this study reveal a number of subjective factors used by managers to
evaluate proposed investments. So the human side of Capital budgeting would be an
interesting focus for further research.
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2. There is a need to link the survey responses across different areas of financial
management. For example, It would be interesting to know is there a link between use
of a particular capital budgeting method and use of a particular source of finance or
use of a particular method of determining discount rate.
3. As these decisions affect the long term future survival and growth of the organization,
it would also be interesting to study whether the capital budgeting decision makers are
getting any special incentives or otherwise for taking such decision which generate
desired results.
4. Though the conditions in India have improved significantly after economic reforms,
there is a need to study the impact of taxation and government policies on capital
budgeting decisions of firms in India.
5. One of the unexplored areas still is the relationship between the capital budgeting
techniques and the strategic and corporate planning procedures used. Future research
will also be needed to understand why organizations have selected capital budgeting
practices and the extent to which selection and use of capital budgeting practices
matters in the efficiency and viability of a particular investment proposal and their
business as a whole.
6. There is a need to investigate how firms deal with some typical problems of the
capital budgeting decision process in specialized areas such as high technology and
social expenditures because there is a great uncertainty about the cash flows
associated with high technology projects and the benefits from a social project may
only be indirectly associated with identifiable cash flows.
Thus from all the discussions in the preceding pages, I can safely predict that the trend to
adopt and use theoretically superior techniques for capital budgeting decisions will
continue at an accelerating pace and at the same time organization will modify these
practices looking to their changing requirements and will also start using some value
management tools like EVA (economic value added), VIR (value improvement ratio),
SVA (shareholder value analysis), Real Options etc. There will be significant increase in
the use of multiple evaluation techniques with the rapid use of computers. The increased
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sophistication and availability of easily used computer technology is occurring. Therefore
it is simple and less costly to apply refined risk analysis and management science
techniques. The effect of a change of a single assumption could take hours to recompute
before the advent of electronic spreadsheets. Today, analyzing a change in assumption
requires a couple of keystrokes and few seconds to accomplish the results. Let us hope
that the findings of this study will lead to reviewing capital budgeting practices of their
firms by Indian companies.
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Porwal L.S., Capital Budgeting Techniques and Profitability – an empirical study, Indian Management, May 1976, pg 9-13
Prabhakara Babu C. and Sharma Aradhana; Capital budgeting Practices in Indian Industry, ASCI Journal of Management, Volume 25, 1996
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Ross Marc, Capital Budgeting Practices of Twelve Large Manufacturers, Financial Management (winter 1986) vol. 15, issue 4, pp 15-22
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Soldofsky, Robert M.:The What, Why and How of Capital Budgeting for smaller Businesses, Article reprinted in ‘Frontiers of Financial Management’ by Serraino,
241
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242
WEBSITES
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www.prenhall.com/divisions/bp/app/cfldeme/CB/CapitalBudgeting.html; Mathis Rock, Corporate Finance Live, Capital Budgeting, 4/1/03
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http://en.wikipedia.org/wiki/Economic_value_added, accessed on 23.01.2008
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ANNEXURE I : QUESTIONNAIRE
QUESTIONNAIRE FOR RESEARCH STUDY ON
“A COMPARATIVE STUDY OF CORPORATE CAPITAL BUDGETING
PRACTICES IN SELECTED INDIAN FIRMS”
Special Notes:
1. Information provided by you will be kept strictly confidential. It will be used
absolutely for academic purpose only.
2. For most of the questions choice answers are provided. Please either,
a. tick mark the appropriate answer, or
b. Select “yes/no”, or
c. assign rank(s) in priority order.
3. At a few places you may be required to write down some of your
observations/opinions.
4. Kindly send the duly filled in questionnaire to the address given below:
Ms Kamini Shah Senior Lecturer (Finance) SEMCOM College, Opp. Shastri Ground Vallabh Vidyanagar – 388 120
Gujarat (India)
Email id: [email protected] Contact No. 02692-235624 (O) 98252-71629 (M)
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SECTION A
1. Do you / your company use any capital budgeting methods like payback period
(PBP), Net present value (NPV), Internal rate of return (IRR) etc for evaluating
investment decision ?
Yes No
If No, please skip section A and proceed to Section B.
2. What is the average size of your company’s annual capital budget ?
Please
Average size (Rs. in Lacs)
Less than or Equal to Rs. 100
101-500
501-1000
1001-5000
Above 5000
3. What project size requires a formal quantitative analysis in your company?
Size (Rs.)
No specific amount
0 to Rs. 50,000
50,001 to 1,00,000
1,00,001 to 5,00,000
5,00,001 to 10,00,000
10,00,001 to 50,00,000
Greater than 50,00,000
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4. In your company, capital expenditure budgets are prepared for,
Please
1 year ahead
2 years ahead
3 yeas ahead
4 years ahead
More than 4 years ahead
5. “Please indicate the relative importance of each of the following quantitative
techniques used in your firm to rank proposed capital investments and to decide
whether or not they should be accepted for inclusion in the capital budget (on a
scale of 1 to 5, where 1 = not used, 2=unimportant, 3=somewhat important,
4=important and 5=very important).”
Evaluation Technique 1 2 3 4 5
Internal Rate of Return (IRR)
Payback Period (PBP)
Net Present Value (NPV)
Accounting Rate of Return (ARR)
Profitability Index (PI)
Other [pl. specify]
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6. Please the capital budgeting technique used by you for evaluating various
investment decisions. You may tick multiple techniques if used.
Investment Decision ARR IRR NPV PBP Others
1. New Project
2. Expansion of existing operation
3. Merger / Acquisition
4. Replacement of Assets
5. Leasing of Assets
6. Modernization
7. Process or Product improvement
8.
Any other
(please specify) such as canteen,
housing colony , staff welfare
scheme etc.
7. What is the frequency of use of following investment analysis techniques?
Evaluation
Technique
Always
[100%]
Often
[75%]
Sometimes
[50%]
Rarely
[25%]
Never
[0%]
Internal Rate of Return
(IRR)
Payback Period (PBP)
Net Present Value
(NPV)
Accounting Rate of
Return (ARR)
Profitability Index (PI)
Other [pl. specify]
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8. Where your firm uses more than one technique for appraising major investments,
please indicate the relative importance attached to each technique by entering
against the items listed below: 1 for the item to which you attach most importance;
2 for the next most important item; and so on. Please do not enter rankings against
techniques that are not used by your firm.
Evaluation Technique
Internal Rate of Return (IRR)
Payback Period (PBP)
Net Present Value (NPV)
Accounting Rate of Return (ARR)
Profitability Index (PI)
Other [pl. specify]
9. Do you use any cut-off points to evaluate the viability of major capital
investments?
PBP 0-2 years 2-4 years 4-6 years 6-10 years
ARR 11-15% 16-20% 21-30% 31%
NPV/IRR 0-10% 11-15% 16-20% 21-30% 30% or
more
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10. In estimating the cash flows, how do you treat the following items?
Cash flow item Included / excluded
Current market value or acquisition value of an
existing resource to be used in the project (e.g. land)
Expenses incurred prior to deciding on going ahead
with the project like R&D, market survey, test
marketing, etc.
Interest on borrowings
Working capital including changes over the life of
the project
Salvage/realizable value from the project at the end
Depreciation
Income tax (Before/After Income tax)
Any other cash flow(s) – pl. specify
11. What are the inflation adjustment methods used for investment appraisal
by your firm?
Please
Specify cash flow in constant prices and apply a real rate of return
All cash flows expressed in inflated price terms and discounted at the
market rate of return
Considered at risk analysis or sensitivity analysis
No adjustment
Other[pl. specify]
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12. Which rate of discount(s), do you use in your capital budgeting analysis?
Please
[a] Cost of Capital (Weighted average cost of capital)
[b] Term lending rate of financial institutions
[d] Arbitrary cut-off rate fixed by the management
[e] Any other (Please specify)
13. If you use the cost of capital as the discount rate, how do you estimate the cost of
equity and cost of retained earnings? Please
Capital Asset Pricing Model
[CAPM, based upon the firm’s estimated beta]
Dividend yield plus growth rate
[Discounted Cash Flow method]
Cost of debt plus risk premium
Other [Specify]
14. Do you use different discount rates for different sizes of investment/for different
types of projects?
Yes No
15. If your company is using the Weighted Average Cost of Capital [WACC] for
evaluating the capital budgeting project then how do you define the weights?
Please
A long term target of debt – equity ratio
The present market values of debt-equity
Balance sheet ratios of debt-equity
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16. Do you categorize projects in to different risk classes such as low risk, moderate
risk and high risk? If yes, how do you decide an appropriate class of risk for each
project?
......................................................................................................................
......................................................................................................................
17. According to you, What type of risk is involved in such investments?
Fluctuations in expected return
Non-recoverable
Changes in economic, social and political factors
Fear of obsolescence
18. Please indicate the relative importance of each of the following techniques used in
your firm to assess risk (on a scale of 1 to 5, where 1=not used, 2=unimportant,
3=somewhat important, 4=important and 5=very important).
Evaluation Technique 1 2 3 4 5
Sensitivity Analysis
Scenario Analysis
Decision tree
Monte Carlo simulation
By adjusting the future cash flows
By certainty equivalent approach
By adjusting the discount rate
Subjective assessment
Probability analysis
Shorten Payback period
Beta analysis
Any other (Please specify)
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19. Do you review various projects under capital budgeting at different hierarchical
levels? If yes:
Size of investment [Rs. In Lacs] Management levels – CFO, Management
Committee, CEO, Board
Less than or Equal to Rs. 100
101-500
501-1000
1001-5000
Above 5000
20. Between non-discounted cashflow methods like payback period and discounted
cashflow methods like NPV and IRR, which method is preferred by you? Why?
......................................................................................................................
......................................................................................................................
21. If your preference is for discounted cash flow methods then between NPV and
IRR which method is preferred by you? Why?
......................................................................................................................
......................................................................................................................
22. Has there been a major switch in techniques used over the last 5 years?
Yes No
23. Does your firm place a limit on the size of its annual capital budget?
Yes No
If yes, What are the reasons of capital reasoning?
......................................................................................................................
......................................................................................................................
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24. Are there specific capital expenditure ceilings placed on operating units which
sometimes lead to the rejection of viable projects?
Please
Investment decisions important for whole group and
require central control
Management wants to control cash, because of a shortage
of funds
Management wants to control areas of activity and mix of
products
Shortage of other key resources
Other
25. What are the considerations for the acceptance of non-economic projects?
Please
Health and Safety
Legislation
R & D/Strategically necessary
Social/Environmental
Repair/Maintenance
Other
26. Which are the factors deciding capital budgeting method in your company?
Please
Finance Theory
Experience and Competency
Informal Rule of Thumb
Importance of the Project
Easy to Understand
Familiarity of Top Management
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27. Does your company conduct post audits of major capital expenditure?
Please
Always [100%]
Often [approx. 75%]
Sometimes/on major projects [approx. 50%]
Rarely [approx. 25%]
Never [0%]
SECTION B
28. What are the reasons for not using any appraisal method for capital budgeting?
......................................................................................................................
......................................................................................................................
SECTION C (Details of the respondent)
Name : ....................................
Designation : .....................................
Work Experience with the present company : ……………………….
Have you attended any Management Programmes/courses?
Yes (pl. give details) No
.................................................................................................................................
About the company :
1. Name of the company : .................................
2. Year of Establishment : .................................
3. Nature of business : ..................................
4. Whether Public or Private sector? : ..................................
Thank you for your co-operation
254
ANNEXURE II : COMPANY PROFILES
1. Alembic Ltd.
Alembic Ltd., one of India's leading pharmaceutical companies, was incorporated in
1919. It traces its origin from Alembic Chemical Works Co. Ltd. which was set up in
Vadodara for the manufacture of tinctures, alcohol and pharmaceuticals. The company
manufactures and markets active pharmaceutical ingredients (API), bulk pharma
chemicals, formulations, herbal netraceuticals and veterinary products.
Alembic has plants at Vadodara and Panchmahal in Gujarat and at Solan in Himachal
Pradesh. It has launched a research services division, BioArc Research Solutions, to deal
in outsourced research project of pharma majors.
Indian promoters of the company hold more than 60 percent equity stake in the company,
institutional investors hold more than 10 percent and the Indian public hold more than 20
percent.
2.Arvind Mills Ltd.
The Lalbhai brothers incorporated Arvind Mills in the year 1931. It is now the Flagship
Company of the Lalbhai Group. Currently Mr. Arvind N Lalbhai is the Chairman of the
company. The promoters of the company hold about 34% while the institutional investors
hold about 40% and individuals hold about 21% of the equity.
The company has two main products viz. Fabrics and Garments. The Garments division is
further divided into the Garment Exports Division with Shirts Division and Jeans
Division and the Arvind Brands division. The Arvind Brands manages its own brands
Flying Machine, Newport and Ruf & Tuf in Jeans and Excalibur in Shirts. The company
has licenses from reputed International brands like Arrow, Lee, Wrangler and Tommy
Hilfiger for the Indian market.
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The Registered office of the company is in Ahmedabad (Gujarat) and its manufacturing
units are in Khatrej, Santej (Mahesana) and Ahmadabad in Gujarat and Bangalore in
Karnatak.
Arvind Ltd is a nominated supplier of fabrics to Nike Golf, Marks & Spencer, Arnold
Palmer, Eddie Bauer, Calvin Klein and Columbia Sportswear.
3. Astrazeneca Pharma India Ltd.
Astrazeneca Pharma India (AZPIL) is the 90 per cent owned manufacturing and
marketing subsidiary of Astra Pharmaceuticals AB, Sweden. Astra Pharmaceuticals AB,
Sweden is held by Astrazeneca AB, Sweden. Astrazeneca AB, Sweden is ultimately held
by Astrazeneca plc, United Kingdom.
AZIPL is mandated to discover new chemical entities for treating infectious diseases like
tuberculosis. The company has an R&D facility to discover new drugs as well as a
process R&D facility at its campus in Bangalore.
Astrazeneca Pharma India (AZPIL) is Astrazeneca plc, United Kingdom's publicly--
traded manufacturing and marketing entity. As on 31 December 2006, the company had
897 employees. It's products span seven therapeutic healthcare segments. These include
cardiovascular, critical care, maternal healthcare, oncology, gastrointestinal and
respiratory.
AZPIL's manufacturing facility is spread over 69 acres at Yelahanka--Bangalore. It
conforms to the World Health Organization's cGMP (current Good Manufacturing
Practices) norms and is an ISO 14001 certified company. In 2006, the plant was
accredited by the Japanese FDA to export Terbutaline Sulphate (used to treat patients
suffering from asthma and bronchitis).
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4. Atlas Copco (India) Ltd.
Atlas Copco (India) Ltd. is a world leading provider of industrial productivity solutions
the products and services ranges from compressed air and gas equipment, industrial
tools and assembly systems, to relate after market and rental. Atlas Copco (India) Ltd.
represents both the Atlas Copco and Chicago Pneumatic brands for CT, CMT and IT.
Atlas Copco is an international industrial group with its head office in Stockholm ,
Sweden. In 2004, the group had revenues of approximately Sek 7BUSD and about
27,000 employees.
5.Bajaj Hindusthan Ltd.
Bajaj Hindusthan Ltd is the largest sugar manufacturers in India with an annual turnover
of Rs.1,618.6 crore. A part of the renowned `Bajaj Group', the company was incorporated
in 1931 by late Jamnalal Bajaj under the name of `The Hindusthan Sugar Mills Ltd'. More
than 50 years later, in 1988, it was re--named as `Bajaj Hindusthan Ltd.'
The company, which started its operations with a 400 TCD unit at Lakhimpur, Uttar
Pradesh in 1932, today boasts to have India's largest sugarcane crushing capacity of
89,000 TCD. This capacity is spread over nine plants, most of which are located in
northern Uttar Pradesh, a sugarcane rich area with high recovery rate.
The company plans to equip eight of its plants with power co--generation facilities with
an aggregate capacity of 90 Mw. Besides, the company is also planning to utilise bagasse
for the manufacture of particle board (PB) and medium density fibre broads (MDF),
which are widely used as substitutes for wood and timber. It is setting up three plants --
one of PB with a capacity of 50,000 m3 per annum and two of MDF, each with a capacity
of 80,000 m3 per annum under its wholly owned subsidiary, Eco--tec Products Ltd.
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The company has promoted a portal, E-sugarindia, which aims at providing timely and
accurate information for sugar trading and has been facilitating spot and future trading in
sugar for the last five years. The governments has granted recognition to E-sugarindia to
conduct futures trading in sugar only till 31 May 2007.
6. Berger Paints India Ltd.
Owned by the Dhingra group, Berger Paints India Limited was incorporated in the year
1923. The company was originally formed by Mr. Hadfield and the Dhingra Group took
over it in 1991. Currently Mr. G. S. Dhingra is the Vice-Chairman and Mr. Subir Bose is
the Managing Director of the company. The promoter of the company hold about 74
percent of the equity capital while institutional investors hold about 10 percent and
individuals hold about 14 percent stake in the company.
The company is engaged in the business of manufacturing and marketing of paints &
varnishes in India. Its product range includes synthetic enamel, interior & exterior wall
coatings, wood finish and acrylic emulsions. Enamels are marketed in the brand name of
Luxol Hi Synthetic, Luxol Satin, Luxol Lustre etc. Weathercoat Longlife, Weathercoat
Smooth 100% Acrylic are popular brands of exterior wall coatings. The company has
launched Berger Lewis Color Bank, which is based on computerised paint technology,
having a range of shades.
The registered office of Berger Paints is at in Kolkata and the manufacturing facilities of
the company are situated in West Bengal, Goa, UP, Pondicherry and Jammu & Kashmir.
7. Cadbury India Ltd.
Cadbury India Limited, incorporated in 1948 is the wholly owned Indian subsidiary of the
UK based Cadbury Schweppes Plc. which is a global confectionary & beverages
company. It was originally known as Cadbury-Fry (India) Private Limited and was
renamed in 1989 as Cadbury India Limited. Its registered office is in Mumbai.
It operates in India in the segments of chocolates, Sugar confectionery and food drinks.
Its leading brands in the chocolate segment are Cadbury’s Dairy Milk, Fruit & Nut,
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Crackle, Temptations, 5 Star, Perk and Celebration gift boxes. In the Sugar confectionery
segment its popular brands are Cadbury Dairy Milk Eclairs and Halls. In the food drinks
segment its popular brands are Bournvita, Drinking Chocolate and Cocoa Powder. It has
also diversified into the snacking segment with its Cadbury Bytes.
Its manufacturing plants are located in Thane & Induri in Maharashtra, Malanpur in
Madhya Pradesh, and Baddi in Himachal Pradesh.
8. EIMCO ELECON (India) LIMITED
EIMCO ELECON (India) LIMITED was incorporated in the year 1974 and was
promoted by Environtech Corporation, USA and Elecon Engineering Company Limited,
in India.
Eimco Elecon enjoys an overwhelming lead in the manufacture and supply of mining and
tunneling machines for the metalliferous, coal and civil tunneling industries and sub-
surface construction projects. While supplying over 1200 such machines in India, they
have contributed immensely towards the mechanization of underground activities.
Eimco Elecon is owned by Sandvik AB, Elecon Group & The Indian Public.
Sandvik construction and mining division - a major share holder and technical
collaborator of Eimco Elecon is a global leader in excavation, cutting and drilling tool
technology. Eimco Elecon manufactures tunneling and mining machines for underground
coal and metal mines. Eimco Elecon markets in India excavation technology, designed
and manufacturing by Sandvik mining and construction group and provides related
services to increase productivity in mining.
EIMCO ELECON produces a wide range of underground mining machinery. Its range of
products include Electro Hydraulic Side Dump Loaders, Load Haul Dumpers, Air
Powered Rocker Showel Loaders, Coal Hauler and Low Profile Dump Trucks. Eimco
Elecon also manufactures Blasthole Drills, Hydraulic Cylinders and Air Motors.
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The company is also awarded ISO-9001 Certificate by TUV Management Service GmbH
for Design, Development, manufacturing, Installation and Servicing of Mining and
Construction Machines, Hydraulic Cylinders and Accessories.
9. Elecon Engineering Company Ltd
The Company was established in 1951, in Vallabh Vidyanagar, Gujarat, India, pioneered the
manufacture of material handling equipment in India. During these four decades, Elecon has
designed and implemented several landmark projects in India as well as abroad.
From a modest start of design and manufacture of Elevators and Conveyors from which
incidentally, the company derives its corporate identity. viz. "Elecon". It has grown over the
years to be known as a pioneer of the concept of mechanized way of Bulk Material Handling
Equipment in India. Elecon has, made its presence felt through consistent and satisfactory
performance of its equipment in such core sectors as fertilizer, cement, coal/power generation,
chemical, steel plant and port mechanization etc., across the country.
Elecon is the first company in India to have manufactured sophisticated equipment for
Bulk Material Handling. Its product range includes design, engineering, manufacture,
supply, erection and commission of:
• Wagon tipplers
• Bucket wheel stacker/reclaimers
• Barrel-type blender reclaimers
• Fertilizer reclaiming scrapers
• Limestone pre-homegenizing and blending plants
• Single and twin bucket wheel bridge-type reclaimers
• Crawler-mounted trippers
• Stationary and shift able conveying systems for open cast lignite mines
260
• Integrated coal handling plants for power stations
• Underground mining conveyors
• Open-cast conveying systems
• Ferrous and non-ferrous foundry products
• Helical, spiral bevel helical, planetary and worm reduction gear units and
couplings.
A separate Gear division manufactures
• Helical gears
• Spiral bevel and Helical gears
• Planetary gears
• Worm reduction gears units
• Couplings, and
• Gear boxes for highly specialized and precision applications
Elecon has expertise in providing customised gear boxes for Steel Mills, High Speed
Turbines, Sugar Mills, Marine vessels, Coast Guard Ships, Plastic Extrusions, Antena
Drives and for Satellites in the Indian Space Programme.
10. Gujarat Alkalies & Chemicals Limited (GACL)
Incorporated in 1973 Gujarat Alkalies & Chemicals Limited was co-promoted by Gujarat
Industrial Investment Corporation Limited (GIIC), a wholly owned company of the
Government of Gujarat.
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The promoters' holds about 37 per cent of the total equity of the company while
institutional investors hold around 23 per cent and individuals hold about 26 percent.
Currently Mr. S. G. Mankad is the Chairman and Mr. P.K. Taneja is the MD of the
company.
GACL has integrated manufacturing installations for Caustic Soda, Chlorine, Hydrogen
Gas, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid,
Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, Sodium Ferrocyanide. The
products of the company are classified into Caustic Soda Group, Caustic Potash Group,
Chloromethane Group, Sodium Group, Hydrogen Peroxide Group, Phosphoric Acid
Group etc.
The registered office of GACL is at Vadodara and has two manufacturing units at
Vadodara and Dahej, in Gujarat. It has a well-established nationwide network of dealer
and exports its products to USA, Europe, Australia, Africa, Far & Middle East countries,
China & South Asian Markets.
11. GlaxoSmithKline Consumer Healthcare Ltd
GlaxoSmithKline Consumer Healthcare Ltd is the second largest listed dairy products
company in India with an annual turnover of Rs.1,270 crore. It operates in a niche
segment, malted milk foods and commands a huge market share of 74.5 per cent (2006--
07) followed by Cadbury India (17.2 per cent). Incorporated in 1958, the company is an
Indian associate of GlaxoSmithKline plc U.K. It was formerly known as Smithkline
Beecham Consumer Healthcare Ltd and got re--christened in April 2002, following the
global merger of its parent company, erstwhile SmithKline Beecham with Glaxo
Wellcome plc in December 2000.
The company's product portfolio is grouped under three heads; viz nutritional, vending
and over the counter (OTC) products.
262
The company has an installed capacity to manufacture 94,060 tonnes of malted milk
products per annum, spread over three facilities located at Nabha (Punjab), Rajmundry
(Andhra Pradesh) and Sonepat (Haryana). It has a strong marketing and distribution
network comprising over 1,800 wholesalers and over four lakh retail outlets across
India.
Some of its famous brands are Crocin (paracetamol), Eno (antacid) and Iodex (balm).
12. GMM Pfaudler Limited (GMM)
GMM Pfaudler (GMM) was incorporated on Nov. 17, 1962, as a private company and
converted into a public company on Sep. 09 1963. The company is a manufacturer of and
dealer in various types of structural steel works, industrial machinery and glass lined
chemical vessels. GMM also manufactures wiped film evaporators, agitated nutche
filters, mixing systems and polytetrafluoroethylene (PTFE)-lined equipment. It has
supplied over 9000 reactors for different corrosive processes to suit clients` specific
needs, glass-lined stainless steel reactors and lab reactors.
GMM Pfaudler`s fluoro polymer division manufactures various PTFE products, such as
teflon envelope gaskets, nozzle liners and bushes, and control system pipes internally
lined by isostatically molded PTFE liners. Its filters and filter-dryers are utilized in the
inorganic and organic chemical, fine chemical and Pharmaceutical industries.
The company`s client list includes Alembic, Hoechst Schering Agrevo, Bayer India,
Cheminova India, Chemplast Sanmar, Cipla, Colour-Chem, Gharda Chemicals, GE
Plastics India, Glaxo India, Hindustan Inks and Resins, Indian Organic Chemicals and
many more. In December 2007, the Company incorporated a wholly owned subsidiary,
GMM Mavag AG. GMM is based at Gujarat, India.
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GMM Pfaudler has a state of the art plant spread over 20 acres at Karamsad Gujarat, 450
Kms north of Mumbai. GMM Pfaudler is the largest manufacturer of Glass-lined
equipment in India. We also manufacture Wiped Film Evaporators, Agitated Nutche
Filters, Hi efficiency Mixing systems, PTFE lined equipment and much more.
GMM Pfaudler a truly world-class organization with ISO9001 certified processes is
accredited by ASME & TUV for U Stamp & ADM - HP 0 respectively.
13. Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC)
The Government of Gujarat and the Gujarat State Fertilizer Company Ltd. jointly
incorporated Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC) in 1976.
Currently Mr. S. G. Mankad is the Chairman of the company. The promoters hold about
44% of the total equity shares in the company, while institutional investors hold above
24% and individuals hold about 28%.
The business activities of GNFC include Fertilizers, Chemicals and Information
Technology. The fertilizer division manufactures, imports and trades in Urea, Ammonium
Nitrophosphate, Calcium Ammonium Nitrate, Diammonium Phosphate, Muriate of
Potash etc. The chemical division manufactures chemical and petrochemical such as
Methanol, Acetic Acid, Formic Acid, Methyl Formate, Ammonium Nitrate, Nitric Acid,
Calcium Carbonate and Catsol.
The GNFC IT Division provides services such as Infotower, which is an IT Infrastructure
for setting up IT operations, be it Software Developments or IT Enabled Services IT
market. GNFC provides satellite based communication network services using VSAT
technology. The Network Solutions provided by GNFC include the installing,
commissioning and maintenance of LAN/WAN. The company's ISP Services provide E-
Mail, Web Services, News groups, lnternet Chat, Virtual Private Network, Server
Collocation, Corporate Intranet etc. The GIS Services available with the company include
Map Creation and Maintenance, Digital Photogrammetry, Digital Image Processing, GIS
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for Hydrography, Dynamic Terrain Visualization etc. GNFC also has the license to
provide Internet Gateway Service.
The registered office of GNFC is at Bharuch (Gujarat). It has a variety of Technology
Partners such as Linde AG (Germany), Texaco (USA), BASF (Germany), Haldor Topsoe
(Denmark), Snamprogetti (Italy), ICI (UK), Kemira OY (Finland), Plinke (Germany),
Toyo Engineering (Japan), Du Pont (USA) etc.
14. Grasim Industries Ltd.
Incorporated in the year 1947, Grasim Industries Ltd. is a flagship company of the Aditya
Birla Group. It diversified its business into the manufacturing of Viscose Staple Fiber
(VSF), Chemicals, Sponge iron, Cement and textiles.
The promoters hold the 25% of the equity while institutional investors hold about 43% of
the total share capital of the company. Individual investors hold a significant share of
about 13%. Currently Mr. Kumar Mangalam Birla is the Chairman of the company.
Grasim's products include viscose staple fibre (VSF), grey cement and white cement,
sponge iron, chemicals and textiles. Viscose Staple Fibre (VSF) is a man-made,
biodegradable fibre, which is widely used to manufacture fabrics for both woven and
knitted garments. Cement produced by the company are oil well cement, cement and
clinker. These have brand names like Birla Plus, Birla Super and Birla Ready Mix
concrete. .
The registered office of the company is in Nagda (M. P). The manufacturing plants of the
company are spread throughout the country. The cement plants are located in
Raipur(Chhatisgarh), Reddipalayam(TN), Shambhupura (Rajasthan), Batinda (Punjab),
Jawad (MP), Jodhpur (Rajasthan), Malkhed (Karnataka). The sponge iron plant is in
Raigad (Maharastra). And the chemical and textile plants are in Ujjain and Malanpur in
MP, Harihar (Karanataka) and Bhiwani (Haryana).
The registered office of the company is in Nagda (M. P)
265
15. Hipolin Limited :
Hipolin Limited is a detergent manufacturing company. Other product range include
dental hygiene products, Toilet soaps etc. They have over 700 agents and distributors, and
their products are even being exported to Russia, Ukraine, UAE and Africa. Their
manufacturing facilities comprise a 40,000 Sq.Mt. plant involved exclusively in the
manufacture of detergents (low- foam powders for industrial use and high- foam
formulations for domestic consumption), with built up area of 5900 Sq. Mt
Hipolin have developed & can manufacture any detergent powder in latest Pouch Packing
machine as per our customer's specifications, brand & packaging.
Manufacturing facility for toothpaste & toothbrush or any cosmetics as per customer's
need is spread over 3585 Sq. Mt. & the built up area on same is 1206 Sq. Mt. with fully
automatic plant. Infrastructure includes continuous power & water supply,
demineralization water plant, effluent water treatment plant etc.
16 J. B. Chemicals & Pharmaceuticals Ltd.
J. B. Chemicals & Pharmaceuticals Ltd. (JBCPL) is one of India’s fastest growing,
professionally managed, global pharmaceutical companies manufacturing a wide range of
innovative specialty medicines for domestic and international markets. A flagship
company of the Unique Group, it is also known to many as “Unique”.
Its product portfolio consists of pharmaceutical specialties in various dosage forms,
herbal remedies, diagnostics, generic drugs, active pharmaceutical ingredients (APIs).
Some of the products within these categories enjoy leadership positions in the Indian and
foreign markets.
J B Chemical & Pharmaceuticals Ltd. is a customer driven, financially sound company,
consistently enhancing value for its shareholders by rewarding them with healthy
dividends year after year. Headquartered in Mumbai, it has a large global presence with
operations in over 50 countries across the globe.
266
52% of the Company’s revenue comes from exports to USA, Europe, Latin America,
Africa, SE Asia. To further enhance its strength in foreign markets, JBCPL has also
entered into joint venture and strategic tie ups with key partners in USA etc.
17. KSB Pumps Ltd.
KSB Pumps Ltd., India was established in 1960 and is global leader in manufacturing
large and small pumps, valves etc.
KSB Pumps is Efficient, economically and reliably in applications that range from
building services to industrial processes, water engineering, mining and energy
technology. KSB pumps and valves provide and distribute water to private, public and
industrial buildings. They solve heating and air-conditioning problems. Chemical,
petrochemical and many other companies use them to transport aggressive, corrosive,
explosive, solids-laden and viscous liquids. KSB products deal with industrial and
municipal waste water. And they stand up to every temperature and pressure that power
generation can throw at them.
18. Larsen and Toubro
Larsen and Toubro, founded by two Danish engineers, Mr.Henning Holck Larsen and
Soren Kristian Toubro as a partnership firm in 1938, was incorporated as a company in
1946. It is one of the flagship company of Larsen & Toubro Group & the largest
engineering & construction conglomerate in Asia.
L&T carries out its diversified activities through its different divisions viz, Construction-
ECC, Engineering & Construction-Projects, Heavy Engineering-Manufacture, Electrical
& Electronics, Information Technology and Machinery & Industrial Products division.
The ECC (engineering construction & contracts) division of L&T is the largest division
of the company. It constructs all kinds of buildings, provides infrastructural facilities,
takes up hydropower & irrigation projects, constructs thermal & non conventional power
plants & offers electrification services to major industries.
267
The heavy engineering division supplies equipment to Process plant industries, Defence,
Nuclear, Power & Aerospace sectors. The equipment plants are situated at
Powai(Mumbai), Hazira(Surat) & Ronali(Vadodra). The Electricals & Electronics
Division manufactures low voltage switchboards at their Faridabad & Powai plants. IT
division offers software solutions to various industries. The Machinery & Industrial
Products division manufactures construction & mining equipment, welding machineries,
metal cutting tools, rubber processing & plastic processing machinery, crushing
equipments & paper machineries.
L&T has no identifiable promoter group. As on September 2005, the Institutional
Investors hold 54.83 percent whereas the Indian Public holds 23.44 percent. The
remaining is held by others. The company is headed by the Chairman cum MD
Mr.A.M.Naik.
19. LANXESS India Private Ltd.
The erstwhile ABS Plastics Limited now LANXESS ABS Limited (the ‘Company’)
played a pioneering role in developing the market for the versatile engineering
thermoplastic material – Acrylonitrile Butadiene Styrene (ABS) in India, when it started
its operation in 1978 by manufacturing and marketing ABS polymer under the brand
name of ABSOLAC. Since then the company has been continuously growing through a
planned process of aggressive market development and consolidation, technology
updation and capacity build up. The company also set up India’s first modern and
dedicated Styrene Acrylonytrile (SAN) plant in 1993, with technical know-how from M/s
JSR, Japan for manufacture of various grades of ABSOLAN – SAN.
Some of the prominent clients of LANXESS ABS include Samsung, LG, Videocon, BPL,
Ford, Hero Honda, Cello, Lexi and Bajaj.
LANXESS India Private Ltd. (which is 100% subsidiary of LANXESS AG Germany)
acquired 89,63,564 equity shares of Rs.10/- each in Bayer ABS Ltd (BABS) constituting
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50.97% of paid-up capital of the paid up share capital of Bayer ABS Limited from Bayer
Industries Private Ltd and became a holding Company of the Company.
20. Oil and Natural Gas Company Limited (ONGC)
To focus on core business of Exploration & Production, ONGC has set strategic
objectives of:
• Doubling reserves (i.e. accreting 6 billion tonnes of O+OEG).
• Improving average recovery from 28 per cent to 40 per cent.
• Tie-up 20 MMTPA of equity Hydrocarbon from abroad.
ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company
in Asia, as per Platts 250 Global Energy Companies List for the year 2007. ONGC ranks
23rd Leading Global Energy Major amongst the “Top 250 Energy Majors of the World in
the Platt’s List” based on outstanding performance in respect of Assets, Revenues, Profits
and Return on Invested Capital (RIOC) for the year 2007.
ONGC is the only fully–integrated petroleum company in India, operating along the
entire hydrocarbon value chain:
• Holds largest share of hydrocarbon acreages in India.
• Contributes over 78 per cent of Indian’s oil and gas production.
• About one tenth of Indian refining capacity.
• Created a record of sorts by turning Mangalore Refinery and Petrochemicals
Limited around from being a stretcher case for referral to BIFR to the BSE Top
30, within a year.
• Interests in LNG and product transportation business.
269
ONGC owns and operates more than 15000 kilometers of pipelines in India, including
nearly 3800 kilometers of sub-sea pipelines. No other company in India, operates even 50
per cent of this route length.
21. Panacea Biotec Limited :
Panacea Biotec is a research based health management company involved in research,
manufacturing and marketing. It controlled a 1.6 per cent share of the Indian drugs &
pharmaceuticals market in 2006--07. The company was established in 1993 after the
merger of Panacea Drug (formed in 1984) and Radicura Pharma (formed in 1988). The
Chairman of the company is Mr. Soshil Kumar Jain and the promoters of the company are
the Jain family who hold 65 per cent stake in the company.
The company has two main businesses, namely vaccines and formulations. The vaccines
business contributed the bulk -- 78.9 per cent of gross turnover, while the formulations
business contributed 21 per cent of gross turnover in 2006--07. Its R&D segment
contributed a mere 0.1 per cent in 2006--07.
The company has been supplying oral polio vaccines to UNICEF over the last seven
years. In 2006--07, it started supplying Recombinant Hepatitis B Vaccine to UNICEF.
Sales to UNICEF grew from Rs.65.8 crore in 2000 to Rs.641.6 crore in 2006--07.
Panacea's research activities are concentrated around vaccine development,
biopharmaceuticals, drug delivery projects and drug discovery. It has four R&D centres --
Laksh (Mohali, Punjab); Sampann (Lalru, Punjab); Vaccine & Biological research centre
(Delhi) and Biopharmaceutical R&D centre. On 11 February 2008, it opened its fifth
R&D facility -- GRAND dedicated towards advanced drug delivery systems at Navi
Mumbai.
The company's manufacturing facilities are located at New Delhi, Lalru in Punjab and
Baddi in Himachal Pradesh. All these facilities are WHO cGMP compliant. These
270
facilities manufacture tablets, capsules (including soft gelatin), ointments (transgel
formulation) liquids, herbal formulations and vaccines.
22. Siemens Ltd.
Werner Von Siemens founded Siemens in Berlin in 1847. In India Siemens Ltd. was
incorporated in the year 1957. Here it is in the field of electrical and electronics
engineering. It deals in business segments like Energy, Healthcare, Industry, Information
& Communication, Lighting and Transportation.
The promoters hold above 55 per cent stake in Siemens Ltd., and institutional investors
also hold about 27 percent while individuals hold just about 14 per cent. Currently Mr.
Deepak S. Pareekh is the Chairman of the company.
In the Energy sector, it offers expertise in areas from power plants to meters and in the
Industry sector it builds airports, and also produces contactors. In Transportation the
company delivers complete high-speed trains, right down to safety relays, whereas in
Lighting, it illuminates large stadiums and also manufacture small light bulbs. In
Healthcare the company executes complete solutions for hospitals, and also makes
hearing aids. In the Communication segment, it provides a complete spectrum of products
from large public networks to mobile phones. Some of the products manufactured/traded
by the company are switchgears, electric motors, generators, control boards, X-ray
equipment, electromedical equipment, measuring and control instruments, accessories etc.
The registered office of Siemens Ltd. is situated at Mumbai. The plant locations of the
company are at Aurangabad, Kalwa and Nasik in Maharashtra, at Vadodara in Gujarat,
and Verna in Goa.
271
23. Sun Pharmaceuticals Limited :
Sun Pharmaceuticals commenced operations in 1983 in two states namely -- West Bengal
and Bihar. It was listed on the Indian bourses in 1994. With a market capitalisation of
Rs.22,467.8 crore on 18 February 2008, the company ranks first among the 239 listed
drugs & pharmaceutical companies.
The company manufactures formulations and active pharmaceutical ingredient's (API's)
for both the domestic as well as the international market. Almost 63.2 per cent of the
company's formulation's gross sales emanated from the domestic market in 2006--07.
Exports of formulations and bulk accounted for 10.3 per cent and 18.5 per cent of gross
sales respectively. USA is Sun's largest export market.
The company has one of the highest R& D spends in the country. It set up its first
research center, Sun Pharma Advanced Research Center (SPARC) in 1993 in Baroda,
Gujarat -- India to develop generics that adhere to international development standards.
The laboratories at SPARC are equipped to carry out organic synthesis, develop
formulations, biotechnology, pharmacokinetics (studies that track the absorption,
distribution, metabolism and excretion (ADME) ) and bioequivalence studies. It set up a
second research center in Mumbai, spread over 50,000 sq ft of floor area, to develop
generics for the developed markets.
24. Tata Steel Limited
Tata Steel is the largest private sector steel producing company in India. It manufactures
steel through the blast furnace or basic oxygen furnace route. It commenced commercial
production in 1911. Tata Steel enjoyed a 10.4 per cent share in 2005--06 in the domestic
steel market.
The company sources its raw materials, viz, iron ore, coal and limestone from its captive
mines. Its iron ore mines are located at Naomundi and Joda--Bamnipal in Jharkhand and
272
Sukhinda in Orissa. West Bokaro Colliery at Jharkhand and Birshibpur in Orissa are two
of its important coal mines.
The company's steel plant having a capacity of around five million tonnes is located at
Jamshedpur in Jharkhand. Additionally, the company has a production facility in
Jamshedpur which manufactures welded steel tubes. The company also has a ferro
chrome plant in Orissa, bearings plant in West Bengal and wire manufacturing facilities
in Maharashtra and Karnataka
Tata Steel acquired Europe's second largest steel producer, Corus in April 2007 for USD
13.8 billion. This acquisition makes Tata Steel the world's fifth largest steel producer. The
company is targeting a 30 million tonne capacity by 2015.
25. Transpek Industries Limited
Transpek Industry Limited was set up in 1965 initially for manufacturing Transparent
Acrylic Sheets. There lies the origin of the word "Transpek". Since then the Company has
grown to become one of the leading manufacturers and exporters of a range of chemicals
servicing the requirements of customers from a diverse range of industries - Textiles,
Pharmaceuticals, Agrochemicals, Polymers, etc. Since inception, Transpek has evolved as
a ‘First Time’ manufacturer of several products in India and also pioneered the
development of the market for the same.
Over a decade of presence in the international market, Transpek has earned for itself a
name for being a quality supplier. With its expertise in handling Chlorine and Sulphur,
Transpek has indigenously developed process for chlorinated chemicals like Thionyl
Chloride and Chloro Acetyl Chloride. Today the capacity for Thionyl Chloride at
Transpek is
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26. Vadilal Enterprises Limited:
Vadial Enterprises Limited is one of the leading manufactures of Ice Cream in India with
the brand name “Vadilal” since 1920. Vadilal Group is also engaged in Process Foods,
Real Estate & Constructions, Chemicals & Super Specialty Gases & Forex Business.
Vadilal Industries is the flagship company of the Group having primary interest in Ice
Cream and Processed Foods. Vadilal enjoys one fourth of Indian Ice-Cream market share.
Own largest cold chain strengthens the distribution network across the country the largest
outside Europe.
27. Voltamp Transformers Ltd., Vadodara
Voltamp Transformers Ltd. was initially incorporated as Private Limited Company and
established in year 1963 in Vadodara – a city 400 km North of Mumbai (INDIA).
The Company has installed facility to manufacture Oil filled Power and Distribution
Transformers up to 50 MVA, 132 KV Class, Resin Impregnated Dry type Transformers
up to 5 MVA, 22 KV Class (In Technical collaboration with MORA, GERMANY) and
Cast Resin Dry type Transformers up to 12.5 MVA, 33 KV Class (In Technical
collaboration with HTT, GERMANY). There are total four Sheds one each for Oil filled
Power Transformers, Oil filled Distribution Transformers, Resin Impregnated Dry type
Transformers and Cast Resin Dry type Transformers . The factory is spread over 6 acres
of land and has a built up area of 10,000 sq. mtr. The total installed capacity is around
4000 MVA per annum.
The turnover of the GROUP for the year ended 31.03.2007 was about Rs. 400 Crores. 70
% of the present annual sales is from Project Business. Most of Projects Transformers
orders are through leading consultants of International repute like Engineers India Ltd.,
Davy Power Gas, Uhde India Ltd., Chemtex Engg. Ltd., Dalal Consultants Ltd., Bechtel,
Mecon, Development Consultants Ltd., Fichtner Consulting Engineers Pvt. Ltd.
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The Company had been given the accreditation of ISO 9001 : 2000. M/s. ISOQAR are the
certifying body for the above accreditation.
28. Wipro Limited
Wipro Limited was incorporated in 1945 as an oil factory. Later in 1980s Wipro entered
the Infotech sector. It is a flagship company of the Wipro Group providing IT services,
product engineering, technology infrastructure services, Business Process Outsourcing
and consulting services and solutions.
The Indian promoters hold more than 80 percent of the total share capital of the company
while the Indian public holds about 7 percent and institutional investors hold about 6
percent. Currently Mr. Azim H. Premji is the chairman and Managing Director of the
company.
Wipro's has clients across a spectrum of industries such as consumer electronics, finance,
Government, insurance, manufacturing, media & entertainment, mobile devices, Telecom
- equipment vendors and service providers, travel & transportation etc. To these clients
the company offers services such as application development, deployment &
maintenance, business intelligence, business consulting, CRM, data warehousing,
enterprise application services and security, industrial automation, space communications,
technology consulting, network management, testing services, system design, Web
services, wireless networks, software application development and maintenance etc. The
company also provides consultancy services like security governance, e-governance etc.
Wipro has its headquarter in Bangalore, besides it has 54 development centers and 30
offices spread over North America, Europe, Middle East and Asia Pacific.
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ANNEXURE III : Sales of Companies Under Study
Rs. Crore (Non-Annualised)
Company Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
12 mths 12 mths 12 mths 12 mths 12 mths
Alembic Limited 566.98 614.7 572.98 666.45 722.58
Arvind Mills Ltd 1551.97 1457.85 1702.53 1623.39 1850.47
Astrazeneca Pharma Ltd 196.11 210.89 246.42 293.68
Atlas Copco Limited 324.2 439.32 618.91 800.42
Bajaj Hindusthan Limited 620.45 458.27 527.62 892.39 1531.4
Berger Paints Limited 669.64 771.24 949.9 1121.83 1326.78
Cadbury India Limited 827.25 885.28 1006.02 1149.97
EIMCO Elecon Limited 82.13 84.62 97.88 92.14 97.17
Elecon Engg. Limited 181.78 187.7 322.57 507.74 841.92
Glaxosmithkline Pharma. Ltd 911.71 987.82 1092.28 1237.2
GMM Pfaudler Limited 58.49 67 90.53 114.54 128.48
GNFC Limited 1466.38 1555.05 1897.76 2284.5 2961.32
Grasim Industires Limited 5426.8 6136.2 7211.85 7661.08 9624.18
Gujarat Alkalies Limited 763.32 812.46 1048.22 1095.21 1232.66
Hipolin Limited 19.2 22.94 15.58 25.42 23.79
J B Chemicals Limited 299.04 320.98 377.27 480.99 547.1
KSB Pumps Limited 262.66 332.44 397.45 452.02 512.1
L&T Limited 8776.29 9894.52 13378.1 15029.03 17971.31
Lanxess ABS Limited 395.04 472.58 477.48 572.97
ONGC Limited 35283.51 33086.16 46850.37 49797.47 59686.9
Panacea Biotech Limited 287.33 273.57 339.16 548.68 842.95
Siemens Limited 1511 1915.55 2925.18 4794.71 8058.26
Sun Pharma Limited 789.83 892.89 1044.37 1353.02 1722.14
TATA Steel Limited 9788.49 11917.88 15867.62 17132.94 19771.19
Transpek Limited 44.88 61.67 74.15 86.1 88.92
Vadilal Enterprises Limited 97.39 115.45 112.48 117.28 126.46
Voltamp Limited 133.51 211.57 300.15 485.08
Wipro Limited 4050.03 5192.69 7278.44 10264.1 13758.5
276
ANNEXURE IV : Gross Fixed Assets (GFA) of Companies Under Study
Rs. Crore (Non-Annualised)
Company Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
12 mths 12 mths 12 mths 12 mths 12 mths
Alembic Limited 363.28 439.17 501.62 527.15 565.29
Arvind Mills Ltd 2046.71 2080.83 2213.4 2271.83 2888.66
Astrazeneca Pharma Ltd 64.66 68.13 74.3 79.37
Atlas Copco Limited 75.06 189.87 198.99 219.67
Bajaj Hindusthan Limited 334.08 586.96 1278.64 2508.43 3202.25
Berger Paints Limited 134.65 157.34 200.46 237.31 258.65
Cadbury India Limited 335.59 371.1 425.04 512.39
EIMCO Elecon Limited 46.54 64.79 76.1 88.23 87.99
Elecon Engg. Limited 147.57 150.35 173.24 213.38 251.11
Glaxosmithkline Pharma. Ltd 491.22 504.64 517.74 528.23
GMM Pfaudler Limited 38.62 40.29 48.75 50.34 51.96
GNFC Limited 2096.5 2090.57 2128.22 2177.95 2702
Grasim Industires Limited 5600.2 5807.19 6056.71 6420.52 7977.65
Gujarat Alkalies Limited 1607.82 1614.13 1669.21 1869.23 2024.18
Hipolin Limited 9.89 9.94 10.06 10.58 10.42
J B Chemicals Limited 143.55 184.86 197.58 219.6 305.77
KSB Pumps Limited 138.8 148.37 154.64 181.74 209.95
L&T Limited 6304.99 1983.9 2100.89 2582.13 3340.59
Lanxess ABS Limited 250.49 263.12 276.65 283.49
ONGC Limited 58477.74 66192.61 97655.28 81249.08 89832.12
Panacea Biotech Limited 128.11 148.22 191.3 304.78 506.39
Siemens Limited 552.49 552.33 559.37 801.46 963.43
Sun Pharma Limited 407.73 536.15 659.99 775.06 870.61
TATA Steel Limited 12393.79 13269.47 14957.73 16470.71 18426.52
Transpek Limited 65.49 72.54 64.71 78.02 92.63
Vadilal Enterprises Limited 25.65 30.31 31.92 32.21 35.26
Voltamp Limited 11.81 15.14 18.09 24.25
Wipro Limited 1256.55 1473.39 2013.73 2976.9 4225.4
277
ANNEXURE V : Plant and Machinery of Companies Under Study
Rs. Crore (Non-Annualised)
Company Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
12 mths 12 mths 12 mths 12 mths 12 mths
Alembic Limited 307.72 377.97 383.37 393.19 381.2
Arvind Mills Ltd 1274.92 1306.39 1369.72 1458.36 1415.07
Astrazeneca Pharma Ltd 39.44 41.93 45.11 44.28
Atlas Copco Limited 40.62 36.94 37.72 35.01
Bajaj Hindusthan Limited 212.41 327.15 501.54 967.36 2019.93
Berger Paints Limited 72.01 81.94 101.93 126.76 141.64
Cadbury India Limited 263.14 277.33 306.87 332.01
EIMCO Elecon Limited 39.99 56.93 66.4 78.3 78.5
Elecon Engg. Limited 115.96 119.18 138.94 165.39 201.22
Glaxosmithkline Pharma. Ltd 302.79 306.36 283.05 290.89
GMM Pfaudler Limited 24.35 24.88 32.25 33.13 34.79
GNFC Limited 1958.42 1945.24 1924.54 1991.55 2451.9
Grasim Industires Limited 4538.67 4711.04 4858.76 5046.04 5520.45
Gujarat Alkalies Limited 1508.08 1513.07 1535.28 1575.2 1800.55
Hipolin Limited 6.98 7.04 7.09 7.27 7.05
J B Chemicals Limited 79.94 107.75 112.16 119.25 162.62
KSB Pumps Limited 104.81 110.37 118.33 126.63 154.28
L&T Limited 4491.8 1006.06 1298.76 1442.27 1806.86
Lanxess ABS Limited 206.39 209.71 228.5 235.79
ONGC Limited 54636.3 62120.38 89194.72 72824.98 78775.52
Panacea Biotech Limited 35.76 77.41 89.18 112.05 219.56
Siemens Limited 224.63 241.51 237.34 295.63 410.06
Sun Pharma Limited 201.4 293.75 381.43 481.32 571.27
TATA Steel Limited 10923.64 11202.27 11673.64 13531.96 13943.32
Transpek Limited 58.02 61.89 48.93 59.78 71.52
Vadilal Enterprises Limited 22.82 27.23 28.81 29.01 32.16
Voltamp Limited 7.02 9.81 11.28 12.89
Wipro Limited 681.55 731.86 950.26 1345.2 1765.3
278
ANNEXURE VI : Profit After Tax (PAT) of Companies Under Study
Rs. Crore (Non-Annualised)
Company Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
12 mths 12 mths 12 mths 12 mths 12 mths
Alembic Limited 31.52 31.26 52.04 78.52 70.68
Arvind Mills Ltd 129.33 96.75 127.35 127.16 119.56
Astrazeneca Pharma Ltd 24.51 25.75 43.06 48.74
Atlas Copco Limited 33.77 23.1 50.56 72.04
Bajaj Hindusthan Limited 6.21 28.35 61.02 140.44 191.44
Berger Paints Limited 33.42 44.03 52.12 70.29 83.07
Cadbury India Limited 45.65 46.21 45.96 68.81
EIMCO Elecon Limited 4.97 7.42 8.75 8.24 8.68
Elecon Engg. Limited 1.73 2.17 9.79 27.92 54.89
Glaxosmithkline Pharma. Ltd 76.35 73.16 107.15 126.93
GMM Pfaudler Limited 2.37 6.21 7.61 12.22 12.09
GNFC Limited 84.72 116.91 224.02 294.72 326.47
Grasim Industires Limited 367.58 779.26 885.71 863.21 1535.81
Gujarat Alkalies Limited 28.04 63.15 144.28 197.97 186.56
Hipolin Limited 0.21 0.35 0.48 0.34 0.03
J B Chemicals Limited 48.54 51.04 59.15 70.93 71.02
KSB Pumps Limited 18.28 30.65 37.75 50.55
L&T Limited 433.1 532.75 983.85 1011.6 1402.23
Lanxess ABS Limited 25.34 38.83 16.28 27.08
ONGC Limited 10529.32 8664.43 12983.05 14430.78 15642.92
Panacea Biotech Limited 21.42 16.45 30.07 60.94 146.81
Siemens Limited 139.38 151.37 254.75 360.11 596.54
Sun Pharma Limited 231.41 240.6 306.46 461.29 628.93
TATA Steel Limited 1012.31 1746.22 3474.16 3506.38 4222.15
Transpek Limited -3.1 2.55 5.13 5.02 4.65
Vadilal Enterprises Limited -0.02 -0.92 0.4 0.27 0.29
Voltamp Limited 9.97 14.97 23.02 39.56
Wipro Limited 813.23 914.88 1494.82 2020.5 2842.1
279
ANNEXURE VII : Total Assets of Companies Under Study
Rs. Crore (Non-Annualised)
Company Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
12 mths 12 mths 12 mths 12 mths 12 mths
Alembic Limited 67.12 71.76 98.44 107.48 137.69
Arvind Mills Limited 526.15 564.53 638.77 705.15 919.44
Astrazeneca Pharma Ltd 94.3 130.02 164.49 161.3 141.43
Atlas Copco Limited 707.6 747.45 1097.93 1254.06
Bajaj Hindusthan Limited 508.84 575.99 660.53 703.9
Berger Paints Limited 13261.54 13933.92 16695.61 19257.36 32095.71
Cadbury India Limited 230.69 389.68 412.17 534.23
EIMCO Elecon Limited 197.4 246.8 340.47 537.49 745.31
Elecon Engg. Limited 39.41 42.43 46.54 48.88 52.51
Glaxosmithkline Pharma. Ltd 11524.06 8952.33 11003.24 13214.11 17388.32
GMM Pfaudler Limited 6606.89 7308.79 8094.34 8855.59 11260.87
GNFC Limited 145.89 167.44 178.79 243.06
Grasim Industires Limited 211.09 239.82 279.49 347.7
Gujarat Alkalies Limited 277.81 365.4 320.27 385.85
Hipolin Limited 4067.5 5286.49 6664.11 9508.3 13327.2
J B Chemicals Limited 69025.7 80321.77 94942.76 114334.39 136872.52
KSB Pumps Limited 88.49 84.23 80.04 95.07 103.82
L&T Limited 250.45 369.39 572.98 1295.35 3412.44
Lanxess ABS Limited 294.68 357.9 412.83 507.35 706.36
ONGC Limited 2654.8 2957.74 3239.41 3674.54 3787.49
Panacea Biotech Limited 1587.98 1557.05 1472.27 1651.82 1829.53
Siemens Limited 1549.6 1945.3 2825.58 4430.86 5800.32
Sun Pharma Limited 871.6 1436.66 3229.5 3606.72 3871.55
TATA Steel Limited 2105.31 2112.94 2311.96 2496.3 3384.88
Transpek Limited 303.7 357.32 436.2 528.14 632.16
Vadilal Enterprises Limited 296.29 441.77 473.86 1016.51 1041.36
Voltamp Limited 17 17.3 16.86 16.04 14.93
Wipro Limited 60.44 92.66 121.33 170.7
