Search - January 2011 - Vol 3 - Top 500 Manufacturing Companies

EDITORIAL

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LEADING THE PACK

T

he reality called boundaryless market is a bonus with an onus… yes, the flat world market opens up plethora of business opportunities, and creates a level playing field for companies across the globe to compete and excel, and yes, it sets benchmarks, but it is also true that the onus is on everybody who is in the business of manufacturing to match and above all, scale up to the benchmarks already established by leading companies.

And who are these leading companies? Well, these are the companies who have not only progressed and grown but also created the growth ecosystem for the whole value chain; these are the manufacturing companies who are leading the pack.

In a nutshell, it is all about imbibing the best practices and inculcating it in your products and processes. But if you want to compete, you need to know with whom you need to compare yourself with. While the new-age market dynamics prompt us to be better than the best, the yardstick for evaluating our progress in this everchanging market needs to be an ever-evolving one too.

Quantifying the yardstick for evaluating the cream of manufacturing, ‘Top 500 Manufacturing Companies - Listing and Analysis’, is all about leaders and their best practices. This volume shares the expertise that these manufacturing heavyweights have discovered during their journey. Interestingly, each of these top companies have adopted a unique business plan, tried a different route, but with one commonality – they have all reached the pinnacle in their pursuit for perfection, that’s for sure.

Keeping winning as a ‘K’, or a constant, the approach that these top manufacturing companies have adopted to be in this club of excellence are varied. The variation includes raw material strength, quality control, R&D, strong foundation on innovation, production excellence, sustainable business practices, competitive advantage, swift distribution network, superior brand building, talent management, environmentfriendly products & processes, customer satisfaction, diversified portfolio, cost competitiveness, operational excellence and global reach to name the few. You will read all about these strategies in the analysis of the top 13 manufacturing companies, the idea is to share the winning secrets of these ‘best in class’ companies.

The listing, on the other hand, presents the who’s who of manufacturing, being compared and evaluated on very critical parameters. All in all, it’s a must read for those who made it to the list. It will help them evaluate their performance and reach the next level. For those who missed it this time, it is all the more critical, as it will help them chart the growth route to be a part of this ‘A’ list. As you gear up to be the ‘best in class’, it’s time for India to claim its position as the global manufacturing hotspot. Let’s win!

Archana Tiwari-Nayudu archana.nayudu@infomedia18.in

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FOREWORD

W

hile FY09 proved to be a year of shocks and surprises, the period following H1FY10 gradually seemed to calm the nation’s nerves with the uncertainty in the economy paving way for a phoenix-like rebuild. Since our last association with SEARCH magazine as a knowledge partner for ranking the ‘Top-500 Indian Manufacturing companies,’ the global economic

and the corresponding business scenario stand changed. The government’s stimulus packages in the form of duty drawbacks, liquidity through the nation’s banking system etc., acted as insulin to restore the balance between growth and its longevity. Especially since H2FY10, in anticipation of factors such as a faster-than-expected economic recovery, increase in consumer confidence etc., consequently led to

growth in demand of goods & services both indigenously and abroad. The off take of goods and services in turn demonstrated a spiraling effect with an improvement in the employment situation, greater demand for raw materials by manufacturing concerns and higher profits owing to the commodity prices still far away from their peak.

Even though the year FY11 continues to be marked by concerns such as those originating from the European debt crisis, global currency wars etc., the Indian economy has continued to be resilient as reflected by the growth through economic indicators ie. GDP, IIP, export trend etc. With the economy in a transitional phase, CARE Research as the knowledge partner for SEARCH magazine has evolved a comprehensive methodology to bring out the leaders and rank the ‘Top-500 Indian Manufacturing companies’. In addition to taking into account the size of the company (an important parameter for any manufacturing concern), companies were also assessed in terms of their profitability, capital structure and return to the investor community. The methodology adopted ensured that companies, which strategically faced the tidal waves of economic uncertainty and also paced faster than others to gain from the economic growth bandwagon, achieved higher rank than the rest. Going ahead, not only the scalability but also sustainability would be the mantra of success for Indian manufacturing in the event of growing competition both domestically as well as internationally.

D R Dogra MD & CEO CARE Ltd.

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Pg No. 17 Ad Name: Ceratizit SEARCH January 2011 (Vol-III) SEARCH January 2011 (Vol-III)

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Pg No. 17

SEARCH January 2011 (Vol-III)

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Pg No. 18

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SEARCH January 2011 (Vol-III)

Editorial

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Foreword

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MAPPING THE POTENTIAL Indian Economy Assessment FY11

Of Possibilities & Prospects

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RANKING METHODOLOGY Deriving @ Top 500 Manufacturing Companies

MANUFACTURING METRICS Dawn Of The Global Manufacturing ‘Titan’

Top 500 Manufacturing Companies - Listing

CONTENTS

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ANALYSING THE TOP 13

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RELIANCE INDUSTRIES LTD (RIL) In a league of its own

74

TATA MOTORS LTD Reinventing wheels of fortune

54

OIL & NATURAL GAS CORPORATION (ONGC) Intensifying production to maintain lead

76

BHARAT PETROLEUM CORPORATION LTD (BPCL) Refining margins for sustained growth

56

INDIAN OIL CORPORATION (IOC) Leading with a passion to excel

78

HINDUSTAN PETROLEUM CORPORATION LTD (HPCL) Fuelling prospects for dynamic development

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BHARAT HEAVY ELECTRICALS LTD (BHEL) Treading the path of excellence

80

STERLITE INDUSTRIES INDIA LTD (SIL) Steering in the right direction

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TATA STEEL LTD (TSL) Thrusting on raw material security

84

HINDALCO INDUSTRIES LTD (HIL) Forging its way ahead

64

ITC LTD Creating epicentres of growth

89

JINDAL STEEL & POWER LTD (JSPL) Powering progress

71 92 20

STEEL AUTHORITY OF INDIA LTD (SAIL) Maintaining a steel edge

Product index

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Illustration By: Sanjay Dalvi

MAPPING THE POTENTIAL

INDIAN ECONOMY ASSESSMENT FY11

Of Possibilities & Prospects The Indian economy had performed remarkably well even when the world economy was in turmoil in FY09 and 10. Growth rates of 6.7 and 7.4 per cent, respectively, were registered in G D P, in these two years. The performance in FY10 has to be viewed differently, as this was the time when the country faced a serious drought. The Kharif crops had failed and the Rabi crop was just about satisfactory; leaving agricultural growth virtually unchanged for the year. It was also the beginning of a strong inflationary spiral, which was to have a far-reaching impact on the entire economy even in FY11. Tracking the past and tracing promising routes, here’s assessing the Indian economy in FY11…

I

ndustrial growth in FY10 was fairly robust, with growth of around 10.5 per cent, which, however, should be interpreted with caution, as it came over a low growth of 2.7 per cent in FY09.

Therefore, this was a year when the performance of agriculture was unsatisfactory and when that of industry showed a revival.

The government and RBI were in the mode of easing the strings that came under the umbrella of fiscal stimulus. This was quite an appropriate move, considering that the economy could slip into a slowdown. A similar route was followed by countries all over, in the form of tax cuts and higher government expenditure.

The external situation presented a mixed picture. Exports were down due to the global slowdown, as demand fell from the western nations, and growth, hence, turned negative. However, at 2.9 per cent of GDP, the current account deficit was within the range. This was helped by the invisibles account, with software receipts providing

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relief. Further, on the capital inflows side, there was steady improvement of both FDI and FII flows which helped to keep the balance of payments, in a strong position.

The rupee, however, did depreciate on an annual basis, in both FY09 and FY10 since Forex reserves, on the whole, declined from close to $300 billion compared to $255 billion, over two years. The weaker rupee was of help to maintain competitive advantage, given that there was turbulence in the global market.

The performance and prospects for the current year needs to be viewed against these backgrounds.

INFLATION The major problem facing the country, in the aftermath of the last year’s drought, has been inflation. WPI inflation was in the double digit range in April and came down to 8.6 per cent in October. It is expected to move closer to six per cent by March ‘11.

However, these numbers must be

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interpreted with caution, as it comes over a high-base year, when prices had gone up.

Food inflation, in particular, has been a worry, and though the numbers have been coming down, the absolute level of prices have been high. Also there has been a pick up in the price level (in the non-food category), which can be attributed partly to the global developments and mainly to higher demand in the country emanating from higher growth. The CPI indices, for industrial and agricultural labourers, are still in the range of 9 – 10 per cent in the current year.

Inflation trends are important because RBI’s monetary policy has been targeting inflation right from April, where the repo and reverse repo rates have been increased continuously to 6.25 per cent and 5.25 per cent respectively. RBI has, hence, been targeting inflation for a dual purpose: to bring down prices, as well as control the build-up of inflationary expectations. Given this overwhelming pressure to keep inflation

MAPPING THE POTENTIAL

under control, RBI’s outlook towards interest rates will remain, at best, at stable levels, with an increase, in case inflation does not come down substantially. While the target kept for the year is six per cent by March; which is possible on account of the high-base year of last year, the fact that nonfarm prices are increasing will be the focus of RBI’s attention.

how these funds would be deployed.

However, given that the government has indicated that the fiscal deficit will be on target and not lower, it may be surmised that these funds would be kept as a reserve for special purposes, to be decided in course of time.

High growth in both, industry as well as imports, should ensure that tax Industrial growth has been over 10 per cent for the collections are on target this year, INDUSTRY corporate, excise, and first six months, which is a positive sign. However, it through Industrial growth has been over customs collections.

The has been fluctuating during these months, and such government has already lowered 10 per cent for the first six months, which is a positive sign. However, a tendency will continue to persist in the coming its borrowing programme by it has been fluctuating during these months, given the high-base-year effect. It is expected around Rs11,000 crore. This months, and such a tendency will indicates that spending will also be that industrial growth for the entire year would be in as per the budget numbers and continue to persist in the coming months, given the high-base-year that there would be no exceptional the nine per cent range. effect. It is expected that industrial outlays this year. growth for the entire year would be in the one is through the input route for industries LIQUIDITY AND INTEREST nine per cent range. The positive factor for such as food products (including vegetable RATES industry has been the strong performance of oils and sugar), textiles, rubber products Liquidity has been tight for the greater part the capital and consumer durable goods etc. The other is through higher spending of the year, especially after July, as there has segments. This means that the two ends of from the rural areas, which is evident during been a combination of lower growth in the industrial spectrum have shown strong the festival season in particular. deposits and higher growth in credit. This growth signs which are required to keep the GDP GROWTH has been manifested in the recourse sought economy on a high growth path. The main With the service sector showing adequate by banks in the last few months - for funds sectors that have been leading this growth support to the agricultural and industrial - to the RBI, through the repo window, are automobiles, machinery, and consumer sectors, overall GDP growth is well on which has been of the order of around durable goods. The fact that the active target of 8.5 per cent for this year, with an Rs one lakh crore, on a daily basis. Deposits’ demand season is from October onwards upside of 8.8 - 8.9 per cent, going by growth has been affected by slow growth in would mean that the pace of growth will be present trends. The construction sector, in corporate deposits, hoarding of currency by maintained through the second half, though particular, along with finance and banking, public, continuous movement of funds from admittedly, there will be a downward bias would be the main drivers of this sector. deposits into IPOs of public sector on account of the base-year effect. It is also This would more-than-compensate for undertakings, and steady growth in credit true that this year there has also been a lower government spending on social and from the housing and corporate sectors. huge demand for gold as an alternative community services, as per the phased RBI does view this phenomenon to be investment asset. This, at the margin, has temporary, but lasting for a longer timeled to lower household spending on period, and not intrinsic to the system. This consumer durable goods. But, considering CARE ratings expectations can be surmised by the fact that RBI has that growth is still high, the implication is that for the year kept the CRR unchanged, even while it has it has not had a significant impact on the Expectations for FY11 Growth (%) extended the LAF facility and temporarily budgets of households. Further, the GDP 8.8 - 8.9 waived the penalty on SLR maintenance up construction sector would also be showing Agriculture 4-5 to two per cent of the statutory requirement. a revival in the next few months, as this is Industry 9 Advance tax payment in December would the seasonal trend witnessed after Services 9.5 - 10 exert further pressure on the liquidity monsoon. situation, which will keep interest rates in AGRICULTURE withdrawal of the fiscal stimulus announced the GSec market at a higher level. It may be The farm sector, probably, has been the by the government, earlier this year. expected that the 10-year-yield will range most-positive factor for the economy. The between 7.9 - 8.1 per cent for the rest of THE FISCAL DEFICIT monsoon this year has been normal and the year. However, given that inflationary The fiscal deficit is likely to be maintained at the first advance estimates of the ministry of pressures are still there, there could be 5.5 per cent of GDP, as budgeted under agriculture point to an increase of 10.4 per another round of interest rates hike in early ceteris paribas conditions. It may be cent in production of food grains, 10.3 per 2011. recollected that the government received cent in oilseeds, 17 per cent in sugarcane, CAPITAL MARKETS higher-than-budgeted receipts on account and 40 per cent in cotton. The Kharif crop Capital markets have been extremely robust of the 3G auctions. The amount was over accounts for roughly 50-60 per cent of the this year on account of two factors. The first Rs 65,000 crore. It is not clear, as yet, as to total agricultural production. The latest

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reports point towards steady Rabi sowing, notwithstanding the extended monsoon and unseasonal showers in different parts of the country. Therefore, assuming the Rabi crop to also be good, agricultural output is expected to increase between four to five per cent in FY11. This is significant, as agriculture provides two links to industry:

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is that the economy has been Building growth over 8.8 - 8.9 per cent this year will be juxtaposed with FY10. Growth doing well, which is also reflected the real task after three years of consolidation, following will be higher and inflation lower, under stable external conditions. in the corporate results for the the financial crisis that enveloped the world economy. The issue, however, is how the first two quarters of the year, where top-line growth is quite Fiscal consolidation will be the medium term goal of economy will perform in the years distinct. The second is that foreign the government in the next two years, and this will be to come. FY11 has come over relatively adverse conditions in funds are finding valuations possible in FY11, partly due to fortuitous conditions terms of agriculture and inflation in attractive. The easy monetary such as sale of 3G spectrum and disinvestment.

FY10, and hence is an stance of developed countries improvement. But building growth likes the USA, Euro zone, UK, growth. The trade deficit for the first eight over 8.8 - 8.9 per cent this year will be the and Japan, in particular, has diverted funds months of the year was $81 billion, with real task after three years of consolidation, to the emerging markets. India has been a exports touching $140 billion, and imports following the financial crisis that enveloped beneficiary in this. This has also helped around $221 billion. Exports may be the world economy. Fiscal consolidation will companies to raise fresh funds, which were expected to cross $200 billion and reach be the medium term goal of the government Rs79,123 crore, up to November, as round $215 billion for the entire year. in the next two years, and this will be possible against Rs59,149 crore last year. FII inflows The higher capital inflows are hence, a in FY11, partly due to fortuitous conditions too have been rising and were $29.6 billion palliative for the rising trade and current such as sale of 3G spectrum and in the first eight months of the year as against account deficit, which will offer comfort to disinvestment. The same may not be $19.5 billion last year, in the same period. the balance of payments. The higher deficit replicated in a similar manner, though high Interest will continue in this market, as the has, in fact, acted as a natural force towards sustained industrial growth will sustain the disinvestment programme is just about half a rapid appreciation of the currency. With tax revenue collections. Industry, on the way through, with over Rs 15,000 crore to these twin developments taking place, the other hand, will probably be looking towards be mobilised in the last quarter of the year. rupee is unlikely to appreciate substantially the easing of rates in FY11, as inflation settles EXTERNAL SECTOR to cause issues for monetary policy. down to more tolerable levels. RBI will The high capital inflows through FII and FDI hence be playing a critical role, once again, in IN CONCLUSION have helped to counter the trade deficit, monitoring the financial flows in the economy, The overall state of the economy for FY11 is which has been increasing, because imports so as to enable movement on the high positive in all respects, especially when have supported the high level of industrial growth trajectory in the coming years.

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MANUFACTURING METRICS

Dawn Of The Global Manufacturing ‘Titan’ Year 2010 has been one of the landmark years for the Indian manufacturing as well as Indian economy. Many milestones achieved and many more to go, the Indian manufacturing witnessed an era brimming with promising avenues. With the opportunities looking much more vibrant than ever before, the manufacturing sector is set to break its own records and claim its position as the global manufacturing hotspot.

F

ollowing the global financial crisis current fiscal (up to August 2010), IIP during H2FY09, the domestic maintained a double-digit growth of 10.6 macroeconomic environment per cent. changed drastically during FY10.

GROWTH IN IIP This was led by higher domestic demand, The manufacturing output growth rate was accommodative monetary policy by RBI, supported by increase in consumer and continuous stimulus packages durables, capital goods, and intermediate announced by the Government of India goods production in FY10. The strong (GoI). Real GDP growth showed a turnaround from 6.7 per cent in FY09 to 7.4 per cent in FY10. A a: Relative Contribution to GDP Growth strong recovery in the industrial Rs cr sector, combined with the resilient 120.0 services sector, muted the impact 100.0 of a deficient south-west 80.0 monsoon, on overall output. The 60.0 real GDP growth rate for H1FY11 was placed at 8.9 per cent.

40.0 The Index of Industrial 20.0 Production (IIP), clocked a growth 0.0 2005-06 2006-07 2007-08 2008-09 2009-10 of 10.5 per cent during FY10 (2.8 Services Industry Agriculture & allied activities per cent in FY09), bolstered by a GDP growth (RHS) double-digit growth since Source: RBI October 2009.

During the

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performance of the manufacturing sector could partly be attributed to the base effect.

During FY11 (up to August 2010), capital goods and consumer durables continued to record a high growth rate.

During FY10, the net sales of manufacturing companies remained flat.

However, profit after tax showed a remarkable growth of 58 per cent, primarily led by a decline in the interest expense by 12.84 per cent, due to slower interest rate regime.

Rs cr PBDITA improved by 32 per cent 12.0 y-o-y due to a fall in staff cost.

10.0 Raw material cost remained flat 8.0 during FY10.

6.0 During H1FY11, the net sales increased by 22 per cent, over 4.0 H1FY10. This was led by higher 2.0 commodity prices and domestic 0.0 consumption. Operating profit and net profit improved by 16 and 21 per cent respectively, during the same period.

Growth in IIP (y-o-y per cent) 14 12

11.5 10.4

10

10.6

8.5

8 6 4

2.7

2 0

FY 07 FY 08 FY 09 FY 10 FY 11

Source: RBI

Demand of domestic steel is expected to grow at a CAGR of about 9.2% in the period FY11-15.

The performance of the manufacturing sector during FY10 and H1FY11, along with the outlook, can further be viewed in light of the performance of major industries such as steel, cement, automobiles etc, constituting the core of manufacturing activities.

STEEL Domestic crude-steel production increased to a level of 64.8 million tonne in FY10, registering a growth of about 10.8 per cent on a y-o-y basis. During FY10, India continued to remain the net importer of finished steel, to the tune of about 3.2 million tonne. Imports of finished steel showed a notable increase by about 19 per cent on a y-o-y basis whereas exports declined by 28 per cent. Overall steel consumption registered a decent growth of 8.2 per cent on a y-o-y basis, driven by the flat products category which recorded a double-digit growth of 10.6 per cent.

During the last fiscal, steel prices had witnessed some improvement. Driven by the improved demand, steel manufacturers were able to increase steel prices. The contract prices of key raw materials like iron ore and coking coal for FY10 were revised, downwards. Consequently, major steel companies witnessed improvement in profitability margins to some extent in FY10.

In the first half of FY11, consumption of finished steel registered a robust growth of 9.7 per cent on a y-o-y basis. Steel consumption was mainly dominated by the flats category, which registered a healthy growth of 12 per cent on a y-o-y basis.

* Period, April to August, 2010

CEMENT The domestic cement consumption registered an impressive double digit growth of 11per cent on a y-o-y basis in FY10, after witnessing a slight slowdown in the growth momentum in FY09. During the period of the last three fiscals, the industry added about 87 million tonne to its capacity. As a result, the industry’s capacity utilisation rate dropped to a level of 81 per cent in FY10.

During the last fiscal, the average cement prices increased by about three per cent on a y-o-y basis. The industry’s average realisation increased to a level of `3,699 per tonne during FY10, as compared to `3,659 per tonne during FY09. A firm realisation, coupled with decline in power and fuel cost, helped cement manufacturers to register a slight improvement in margins in FY10.

During the first seven months of FY11, domestic cement consumption has registered a growth of 8.4 per cent on a yo-y basis. Cement demand was slightly moderated, especially during the second quarter, due to the prolonged monsoon season. With the retreat in monsoon, the operating rate of the industry has increased

India continued to remain the net importer of finished steel products to the tune of about 2.7 million tonne during the same period. With the beginning of FY11, the steel industry has witnessed a switchover, from the traditional yearly-contract-system to the quarterly contracts for sourcing raw materials. Contract prices of iron ore and coking coal were revised upwards by almost 100 per cent and 55 per cent, respectively for the first quarter of FY11. This upward revision prompted steel manufacturers to increase prices of steel products in the range of Rs2,000 2,500 per tonne in the first quarter of FY11. Contract prices of iron ore and coking coal, for the second quarter, were further revised upwards by 23 per cent and 13 per cent, respectively.

However, steel prices witnessed softening to some extent during the second Domestic cement demand is expected to grow at a CAGR of about 10.4% and reach a quarter of FY11. level of 241 million tonne by the end of FY12.

Demand Trends Demand of domestic steel is expected to grow at a compounded annual growth rate (CAGR) of about 9.2 per cent in the period FY11-15. The construction sector, followed by the pipes & tubes manufacturing sector, and automobiles sector, are likely to drive the domestic demand for steel. Upward revision in contract prices of key raw materials, due to elevated spot prices, is expected to put pressure on the margins of the steel manufacturers in FY11. Especially, the non-integrated steel players are expected to be hit, if they are not able to pass on the input cost-increase through equivalent price hike.

to 79 per cent in the month of October 2010 compared to 70 per cent in the previous month. Since the beginning of this fiscal, the cement industry witnessed a capacity addition of about 20.4 million tonne. The total capacity of industry, as on October 31, 2010, was 272 million tonne.

Cement prices have witnessed a declining trend, especially during the second quarter of FY11. Moreover, increased cost on input and freight has adversely affected the margins of cement manufacturers during the second quarter.

Demand Trends Going ahead, cement companies are likely

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to post an improvement in economies, particularly in case of western their earnings on a sequential countries on a recovery stage, there was a basis, as prices improve with consistent rise in consumer demand. This is acceleration in construction reflected in the total G&J exports, which activities in peak season. grew substantially at 16 per cent y-o-y in However, an increase in the terms of the US dollar during FY10 to the price of coal and freight charges tune of $28.41 billion. will remain a key concern for During H1FY11 too, total imports of the profitability of the cement G&J recorded a significant y-o-y growth of industry. Domestic cement 40.4 per cent, with the imports (especially demand is expected to grow at of rough diamonds) increasing by 45 per a CAGR of about 10.4 per cent cent y-o-y. Correspondingly, the exports of and reach a level of 241 million C&P diamonds gained y-o-y by 63.2 per tonne by the end of FY12. cent. Moreover, total G&J exports increased The domestic CV sales are likely to grow at CAGR of 9-10% till FY15.

Cement’s demand would largely be driven by the focus of GoI on the domestic sales in the development of low-cost housing in rural & aforesaid period. However, the semi-urban regions and infrastructure sharp recovery and subsequent facilities in the country. The industry is uptrend in the global expected to register a capacity addition of commodity prices led to an about 65 million tonne in the period FY11increase in input costs and in 12. The operating rate of the industry is the light of strong competition, expected to decline to a 77 per cent level in the same could not be passed FY12. on completely. Thus, EBITDA margin for the sector fell to AUTOMOBILES 13.5 per cent in the first half of After a brief pause in FY09, the automobile FY11. sales picked up a momentum, again. In the case of personal vehicles, the domestic Demand Trends The domestic G&J sector is poised to grow at CAGR of 10-12% from FY2010-2015. passenger vehicle (PV) as well as the twoCARE’s research foresees a wheeler (excluding electric two-wheeler) by 45.8 per cent on a y-o-y basis during the healthy demand outlook for the sector on sales increased by a healthy 26 per cent in H1FY11. In the month of October 2010, the back of two primary reasons: rising FY10. The commercial vehicle (CV) sales total G&J exports had grown by 37.8 per income levels and lower penetration of too witnessed a healthy recovery, with cent on a y-o-y basis, amounting to a total automobiles. According to CARE’s research, domestic sales scaling up by 34 per cent in of $2.92 billion. The G&J industry has, for the domestic CV sales are likely to grow at the case of medium and heavy commercial the past year, recorded a very high y-o-y CAGR of 9-10 per cent over the five-yearvehicles (MHCV), by 43 per cent in the growth in all segments, mainly due to the period, till FY15. Similarly, the domestic case of light commercial vehicles (LCV), and low base effect. With the global economies passenger vehicle (PV) sales are expected by 26 per cent in the case of three wheelers. coming out of recession, the demand for to grow at CAGR of 14 – 15 per cent, while The sales growth, which was given a kick diamonds and other jewellery has two wheeler sales to grow at a CAGR of start by the centre’s fiscal stimulus packages rebounded, especially from US, Europe, 11-12 per cent till FY15. in the latter half of FY09, was further fuelled China, Middle East and even, Russia.

GEMS & JEWELLERY by the resumption of the economic In India, the year FY10 was a remarkably buoyancy. Lower input costs on one hand Demand Trends good year for the export-oriented industries, and healthy sales volume growth on the With improved demand from western in general; the gems and jewellery (G&J) other helped the sector witness a sharp upmarkets, the G&J industry will continue with industry in particular, with a surge in global tick in the EBIDTA margin, which increased its positive and sustainable growth going jewellery demand, backed by the improving from 11.3 per cent in FY09 to 15.6 per forward. Despite record gold prices in the macro-economic situation in western cent in FY10. range of $1,300 - 1,400 per ounce, the countries. During FY10, the import of The sales growth momentum persisted domestic jewellery industry is now expected rough diamonds (the main raw material), in FY11 as well, with domestic PV sales to undergo a shift in consumption pattern; increased by 14.1 per cent y-o-y while total registering a 32 per cent growth, while towards diamond-studded jewellery. In the G&J import of raw materials grew two-wheelers registering a 28 per cent long-term, the domestic G&J sector is significantly by 20 per cent y-o-y during the growth in April-November 2010 over the poised to grow at CAGR of 10-12 per cent same period. On the export front too, similar period in 2009. Similarly, the from FY2010-2015 while the export market increased imports of rough diamonds momentum continued in the CV segment for the diamond jewellery to grow at 20 per resulted in higher exports of cut & polished as well, with MHCV, LCV, and threecent y-o-y, for the next five years, compared (C&P) diamonds which grew at 20.9 per wheelers registering a respective growth of to the 10 per cent y-o-y growth expected cent on a y-o-y basis. With major world 47 per cent, 26 per cent and 18 per cent in in the gold jewellery segment.

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Photo ©DINODIA

MANUFACTURING METRICS

RANKING METHODOLOGY

DERIVING @ MANUFACTURING COMPANIES While attaining the pole position requires unwavering efforts, ranking the top-notch companies is no less than a tight rope walk and with the number as huge as 500, the complexities aggravate. With the intent of deriving at the most transparent and objective ranking, the minutest of details have been factored in to avoid any error. Here’s a step-by-step approach towards deciphering the top 500 manufacturing companies…

L

isting & analysis of Top 500 Manufacturing companies is all about winners. It’s about celebrating their relentless efforts towards their journey to become the best in class. With such a huge task in hand, ranking leaders among leaders is not only challenging but intimidating too. Zeroing on the most significant parameters that impact companies’ financial performance was the basic intent while selecting the parameters for ranking. To arrive at the most accurate ranking, weighted average has been taken.

Here’s the step by step approach towards ranking the most influential companies of the year…

SELECTION CRITERIA The classification of manufacturing companies from the non-manufacturing companies is based on ‘The Central Excise Tariff Act 1985’. Also, the companies wherein their core business activities do not contribute to excise payments have been excluded. Only the entities listed on BSE or NSE have been considered for ranking.

The ratios as well as other company financials in absolute terms have been sourced through the database – Prowess.

For the purpose of ranking, the annual financials of the companies has been sourced as available in the said database up to December 9, 2010.

A STEP-WISE APPROACH Step 1: A two-tier weighting methodology was used to rank the companies. The diagrammatic re-presentation of the same together with weights so assigned has been illustrated in table 1.

Step 2: Based on the parameters so selected and the weightage specified for the same, the ranking for each group was arrived at.

Step 3: Further each group was assigned a specific weightage to arrive at a weighted value for the purpose of consolidating the said values from all four groups Step 4: The summation of the weighted values for all the four groups was then sorted in descending order to arrive at the ranking of Top- 500 Manufacturing

CLASSIFICATION & ASSUMPTIONS The ranking is based on the consolidated results of the company. In case, where the company does not have any subsidiary or latest data for consolidated results are not available, the standalone results are assumed as consolidated results. The listed subsidiaries of the company qualifying the ranking criteria as detailed above have been excluded. The companies having negative shareholder’s funds have been excluded.

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companies.

The relevance of selection of the parameters with the weightage so appropriated has been detailed below.

However the analytical observation associated with each of the parameters needs to be reviewed in conjunction with the weightage of other parameters in their respective group.

I) SIZE a) Net sales – Net sales is equivalent to Sales of goods - excise duty paid Any manufacturing concern is primarily recognized by its size and the same can well be reflected through the company’s sales activity. Herein ‘Net sales’ has been preferred over “Gross sales” as the latter includes the collection of excise duty from the customers as applicable to the company’s products. Thus a higher levy of excise duty for the company’s product would inflate the company’s gross sales.

The Net sales figure ignores the levy of excise and reflects the value of goods sold with a mark-up on cost.

Ranking Top - 500 Manufacturing Companies

Basis of size - 0.3

Parameters

Weightage

Net sales

0.3

PAT

0.5

Net Fixed Assets

0.2

Table 1: Ranking parameters

SEARCH - THE INDUSTRIAL SOURCEBOOK | J A N U A R Y 2 0 1 1

Basis of Profitability - 0.3 Parameters

Basis of Equity valuation - 0.3

Basis of Capital structure - 0.1

Weightage

Parameters

Weightage

Parameters

Weightage

PBDITA Margin %

0.5

RONW %

0.5

Debt/Equity

1.0

0.5

ROCE %

0.5

365 day Average Market Capitalisation

Analytical observation: Higher the sales, higher the ranking b) Profit after tax (PAT) – PAT is equivalent to PBDITA – Depreciation - Interest – Tax paid The PAT value determines the earnings of the company post operating expenses, interest, depreciation, other non-operating expenses & tax. This parameter reflects the company’s ability to re-cover its overall expenses (operating as well as nonoperating) through a mark-up on the cost of goods manufactured. A company registering high sales but still recording negative PAT figures is probably not prospering as the expenses are still left unrecovered.

Analytical observation: Higher the PAT, higher the ranking. c) Net Fixed Assets- Net Fixed Assets is equivalent to Gross Fixed assets – Depreciation This reflects the book value of assets owned by the company in the form of plants & equipment, land & buildings (required for factory & office space), furniture & fixtures and intangible assets such as goodwill etc. In case of manufacturing companies, presence of fixed assets is essential to ensure the smooth flow of production process. This is also a parameter of size of the company as it broadly captures the capacity available for production of company’s products.

Analytical observation: Higher the Net Fixed Assets, higher the ranking

II) PROFITABILITY a) PBDITA margin % - PBDITA margin is equivalent to PBDITA / Total income PBDITA ratio captures the actual operating efficiency of a business as it ignores the financing cost and the capital charges (depreciation). The same can either be reflected through higher sales realisations (with a greater mark-up on cost), lower cost of operations or a combined mix of both. As PBDITA is calculated after excluding expenses such as raw material costs, other manufacturing expenses and labour/ employee costs, the strategy of the company with regards to sourcing of raw materials also gets captured.

Analytical observation: Higher the PBDITA margin, higher the ranking b) Return on capital employed (ROCE) %- ROCE is equivalent to PBIT / Average capital employed This indicator measures the company’s ability to generate returns in relation to the capital employed. ROCE can also be considered as a measure of efficiency as it gauges profitability in relation to the amount of capital employed. ROCE is particularly useful to analyse the performance in capital intensive sectors as it reflects on whether the capital is employed in productive assets.

In cases where the capital is not employed in righteous areas, the company’s revenue will be impacted leading to a decline in ROCE. Another aspect of decline in ROCE could be viewed from the increasing expenses of the company (including both operating and non-operating expenses barring interest & tax outflow) thereby resulting in lower profits despite better sales performance. Optimally, from the industry’s parlance, the ROCE should be greater than the total cost of borrowings (cost of equity+cost of debt) for the company.

Analytical observation: Higher the ROCE, higher the ranking

employed as in case of ROCE. Analytical observation: Higher the RONW, higher the ranking b) 365-day Average Market Capitalisation – Market capitalisation is equivalent to Share price x Number of shares outstanding The average relates to the 365- day period ending December 16, 2010. In the ranking methodology, the 365–day average market capitalisation has been used as against the market capitalisation of a stock on a particular day. This is in view of the fact that stock markets have been and are always volatile in nature and quoting the indicator as on a particular day may well distort the company’s standing in the market in relation to other equities comprising our list. This indicator stands as a ‘status symbol’ for the listed companies with the company leading the market capitalisation being assumed as a company of good repute with good track record of both the promoters as well as the company in terms of financial performance.

A higher market capitalisation therefore indicates higher confidence of the investors in the company.

Analytical observation: Higher the 365day Average Market Capitalisation, higher the ranking

III) EQUITY VALUATION a) Return on Net Worth (RONW) %RONW is equivalent to PAT /Average Net Worth This indicator measures the company’s ability to generate returns in relation to the company’s net worth. Since net worth comprises of equity share capital, preferred share capital and the various reserves accumulated by the company over the years it can be referred to the shareholders money. This parameter is therefore of utmost significance for the investor community who can gauge the performance of the company based on RONW. Similar to ROCE, this indicator measures the efficiency of the company in generating returns (operating & non-operating) over and above the total expenses (operating & non-operating). However such returns are measured as against the shareholders’ capital as opposed to the total capital

IV)CAPITAL STRUCTURE a) Debt /Equity (times)- Debt /Equity ratio is equivalent to Total debt (longterm & short-term) / equity capital.

This indicator holds paramount importance for the manufacturing concerns from the capital structure point of view. This ratio captures the financial leverage of a company and depicts its financial flexibility.

Generally for capital intensive manufacturing companies, this ratio tends to be higher as operations are asset-intensive. However, a higher debt equity ratio, translates into a higher interest burden and any adversities in a company’s operations may render it difficult to service such fixed obligations.

Hence, for companies which have a volatile revenue model, it may be prudent to have a low financial leverage.

Analytical observation: Lower the Debt/ Equity, higher the ranking

DISCLAIMER This ranking is prepared by CARE Research, a division of Credit Analysis & REsearch (CARE). CARE Research has taken utmost care to ensure accuracy and objectivity while developing this ranking based on information available in public domain. The data pertaining to the companies so ranked has been sourced through Prowess database. However, neither the accuracy nor completeness of information contained in this ranking is guaranteed. CARE Research operates independently of ratings division and this ranking does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. The opinion expressed in this ranking cannot be compared to the rating assigned to the company within this industry by the ratings division. The opinion expressed is also not a recommendation to buy, sell or hold an instrument.

CARE Research and Infomedia18 are not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this ranking and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this product.

J A N U A R Y 2 0 1 1 | SEARCH - THE INDUSTRIAL SOURCEBOOK

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TOP 500 MANUFACTURING COMPANIES - LISTING

NET FIXED ASSETS ( ` CR.)

GROUP RANKING

NET FIXED ASSETS ( ` CR.)

GROUP GROUP RANKING RANKING

BASIS OF SIZE FINAL RANK

COMPANY NAME NET SALES ( ` CR.)

PAT ( ` CR.)

BASIS OF SIZE FINAL FINAL RANK RANK

COMPANY NAME

1 2 3 4 5 6 7 8 9 10 11 12 13

NET SALES ( ` CR.) Reliance Industries Ltd. Oil & Natural Gas Corpn. Ltd. Indian Oil Corpn. Ltd. Bharat Heavy Electricals Ltd. Tata Steel Ltd. I T C Ltd. Steel Authority Of India Ltd. Tata Motors Ltd. Bharat Petroleum Corpn. Ltd. Hindustan Petroleum Corpn. Ltd. Sterlite Industries (India) Ltd. Hindalco Industries Ltd. Jindal Steel & Power Ltd.

S

T

R

203,370.6 98,740.3 253,830.2 33,524.5 102,345.4 19,549.9 40,627.3 95,678.7 123,582.7 111,189.8 24,506.0 60,717.0 11,071.4

A

Expanding Portfolio

1

PAT ( ` CR.)

T

E

Vertical Integration Exploring E&P Operations Overseas

2

3

24,349.6 19,727.6 10,993.7 4,326.9 -2,120.8 4,211.4 6,846.5 2,516.9 1,720.0 1,475.2 5,401.7 4,350.3 3,634.6

G

I

177,224.9 110,697.6 68,267.6 4,163.6 60,337.7 9,799.2 30,491.2 41,929.2 24,957.1 25,160.0 23,350.0 34,826.5 18,736.7

E

1 3 2 12 5 17 9 7 4 6 10 8 18

S

Capacity Expansion Capacity & Capability Enhancement Strategy

4

5

Strong R&D Infrastructure & Worldclass Human Capital

6

Disclaimer: This ranking is prepared by CARE Research, a division of Credit Analysis & REsearch (CARE). CARE Research has taken utmost care to ensure accuracy and objectivity while developing this ranking based on information available in public domain. The data pertaining to the companies so ranked has been sourced through Prowess database. However, neither the accuracy nor completeness of information contained in this ranking is guaranteed. CARE Research operates independently of ratings division and this ranking does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. The opinion expressed in this ranking cannot be compared to the rating assigned to the company within this industry by the ratings division. The opinion expressed is also not a

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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TOP 13 C L A S S

BASIS OF PROFITABILITY

PBDITA MARGIN (%)

ROCE (% )

18.7 38.8 7.1 18.5 7.7 24.5 26.8 9.1 3.9 3.8 28.5 16.1 50.8

13.3 19.6 13.5 11.7 -0.9 29.4 15.5 10.2 6.7 4.9 16.7 9.7 22.9

T

O

S

Self-reliant In Iron Ore

7

BASIS OF CAPITAL STRUCTURE

206 36 361 230 479 51 110 369 453 460 84 287 13

0.5 0.1 0.9 0.0 2.3 0.0 0.5 4.3 1.8 2.0 0.3 1.1 0.8

C

Enhancing focus on R&D and International Business Thrust on Developing ‘Technology For Tomorrow’

8

9

RONW (%)

C O M P A N I E S

DEBT/ EQUITY (TIMES)

U

AVG. 365-DAY MARKET CAPITALISATION ( ` CR.)

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.)

RONW (%)

GROUP GROUP RANKING RANKING

I N

GROUP GROUP RANKING RANKING

B E S T

BASIS OF EQUITY VALUATION

GROUP RANKING

DEBT/ EQUITY (TIMES)

GROUP RANKING

ROCE (% )

BASIS OF CAPITAL STRUCTURE

GROUP GROUP RANKING RANKING

PBDITA MARGIN (%)

GROUP RANKING

BASIS OF PROFITABILITY

169 84 275 50 432 50 175 480 387 410 124 298 248

339,070.6 259,367.3 85,929.0 118,038.1 51,984.6 112,804.5 86,578.5 45,761.8 22,812.2 13,852.8 61,334.7 33,357.5 62,974.0

18.6 20.1 22.1 11.8 -2.2 29.5 21.3 30.1 12.7 13.1 17.9 22.1 41.5

1 2 6 3 10 4 5 11 25 41 8 18 7

C

E

Backward Integration, Organic Growth Plans Beneficiary of Fuel Prices De-regulation

10

11

E

D

Augmenting Global Presence Cost Containment, Enhanced Productivity

12

13

recommendation to buy, sell or hold an instrument.

CARE Research and Infomedia18 are not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this ranking and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this product.

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

J A N U A R Y 2 0 1 1 | SEARCH - THE INDUSTRIAL SOURCEBOOK

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FINAL RANK

BASIS OF SIZE

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67

COMPANY NAME NET SALES ( ` CR.) Hindustan Unilever Ltd. Maruti Suzuki India Ltd. Mahindra & Mahindra Ltd. Hero Honda Motors Ltd. J S W Steel Ltd. Essar Oil Ltd. Bajaj Auto Ltd. Grasim Industries Ltd. Hindustan Copper Ltd. Oil India Ltd. Sun Pharmaceutical Inds. Ltd. Nestle India Ltd. * National Aluminium Co. Ltd. Cipla Ltd. Siemens Ltd. Dr. Reddy’S Laboratories Ltd. Asian Paints Ltd. Ranbaxy Laboratories Ltd. * A C C Ltd. * Ambuja Cements Ltd. * Crompton Greaves Ltd. United Spirits Ltd. A B B Ltd. * Aditya Birla Nuvo Ltd. Lupin Ltd. Bosch Ltd. * Dabur India Ltd. Bharat Electronics Ltd. Tata Chemicals Ltd. Glaxosmithkline Pharmaceuticals Ltd. * Videocon Industries Ltd. ** Bhushan Steel Ltd. Cadila Healthcare Ltd. Ashok Leyland Ltd. Exide Industries Ltd. Titan Industries Ltd. Cummins India Ltd. Rajesh Exports Ltd. Piramal Healthcare Ltd. Colgate-Palmolive (India) Ltd. Jaybharat Textiles & Real Estate Ltd. Ruchi Soya Inds. Ltd. Godrej Consumer Products Ltd. United Phosphorus Ltd. Castrol India Ltd. * Tata Global Beverages Ltd. Welspun Corp Ltd. Jindal Saw Ltd. Jain Irrigation Systems Ltd. Thermax Ltd. Motherson Sumi Systems Ltd. Shree Cement Ltd. Glenmark Pharmaceuticals Ltd. Divi’S Laboratories Ltd.

18,028.7 29,861.1 29,950.2 16,393.5 18,861.9 37,253.4 11,848.1 20,011.9 1,328.7 9,640.4 4,102.1 5,141.9 5,164.4 5,626.5 9,296.2 7,285.7 6,939.2 7,451.8 8,470.6 7,083.2 9,307.3 6,362.5 6,256.9 15,109.0 4,824.1 4,831.9 3,405.6 5,383.0 9,447.8 1,966.2 10,413.6 5,613.8 3,628.1 7,436.2 4,426.6 4,677.2 2,850.9 17,895.3 3,628.1 2,014.8 539.8 14,355.3 2,042.8 5,342.5 2,406.0 5,784.0 7,360.8 7,080.9 3,418.7 3,230.0 6,803.8 3,626.6 2,504.2 951.2

PAT ( ` CR.) 2,164.6 2,545.0 2,871.5 2,231.8 1,553.3 34.7 1,697.1 3,758.6 154.7 2,610.4 1,347.0 655.0 814.2 1,082.6 692.3 351.5 883.9 310.7 1,560.7 1,216.8 859.3 -23.2 354.6 43.6 699.7 590.7 502.4 727.7 723.6 507.9 515.1 842.9 529.8 423.7 580.9 251.3 443.9 193.4 481.7 435.6 19.4 177.7 339.6 513.3 381.1 393.3 610.4 686.2 248.8 143.9 200.4 676.1 331.0 340.3

NET FIXED ASSETS ( ` CR.) 2,499.0 5,563.5 10,520.3 1,706.9 29,308.2 16,628.1 1,933.2 16,559.8 628.5 4,946.5 2,083.6 975.8 7,079.7 2,695.4 1,088.5 3,114.4 1,328.8 5,113.6 6,542.1 6,160.0 1,376.0 6,064.3 789.5 9,880.7 2,264.0 612.9 676.7 543.5 9,155.7 117.2 10,776.3 13,277.7 1,932.6 4,869.3 836.7 280.1 333.7 70.7 2,113.0 260.7 643.3 2,145.7 574.4 1,812.8 137.5 3,694.4 3,833.4 2,854.3 1,792.3 551.1 1,653.8 1,719.4 2,388.1 613.6

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

19 15 13 21 14 11 27 16 213 24 49 64 36 45 37 43 44 34 29 30 32 39 55 20 53 71 100 61 25 158 22 28 79 33 75 86 118 23 77 157 372 26 154 54 146 46 38 41 92 115 47 76 101 221

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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82.4 21.8 14.5 60.4 6.3 0.2 47.0 19.6 14.5 22.1 18.1 125.4 7.8 18.9 20.5 15.0 56.7 -1.9 25.5 17.9 29.0 -1.3 15.8 -0.1 24.0 12.6 56.7 15.9 8.4 29.5 3.3 6.9 23.3 10.1 36.4 34.3 29.5 13.2 24.5 152.9 4.0 6.5 37.9 10.3 80.9 8.0 12.8 14.9 11.8 25.0 10.4 23.9 14.4 24.0

DEBT/ EQUITY (TIMES)

7 164 204 9 259 488 17 66 223 23 50 3 170 88 188 238 12 389 49 91 98 484 297 468 96 197 11 150 284 19 352 93 87 358 43 104 60 421 78 2 376 455 34 266 6 337 227 221 233 174 370 27 124 15

0.0 0.1 1.3 0.0 1.8 3.2 0.5 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.1 0.9 0.1 0.0 0.2 1.5 0.0 1.5 0.4 0.1 0.2 0.0 1.1 0.0 1.7 2.9 0.7 1.0 0.1 0.1 0.0 1.9 0.8 0.0 2.1 1.3 0.0 0.8 0.0 0.5 0.9 0.3 2.1 0.0 0.7 1.2 0.8 0.0

1 89 332 64 384 462 175 162 1 1 64 1 1 1 1 149 100 270 95 72 111 359 1 354 159 89 109 1 294 1 372 455 207 276 92 95 50 394 232 50 417 326 78 240 1 169 258 132 417 50 214 306 235 64

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 57,243.4 39,904.2 35,702.2 36,845.9 22,462.3 17,753.2 34,713.4 21,449.1 42,183.7 31,431.4 36,974.0 28,691.9 26,221.1 26,507.9 24,278.0 23,369.8 22,157.4 20,670.0 17,337.5 18,484.2 17,621.2 17,185.3 17,486.9 8,522.7 16,384.9 17,105.2 16,372.0 14,734.0 8,593.4 16,549.5 6,395.3 7,661.9 12,385.2 8,515.8 11,327.5 11,129.3 11,964.2 2,833.9 9,758.5 10,700.2 12,098.6 3,007.4 10,634.6 7,740.3 10,146.1 6,832.8 5,118.9 5,585.5 8,043.0 8,723.4 5,959.8 7,173.0 7,703.2 9,180.1

RONW (%)

GROUP RANKING

15.8 13.5 17.5 17.0 21.7 3.9 20.0 29.7 16.0 41.5 35.8 19.6 27.0 25.9 13.0 14.3 18.2 19.5 29.1 26.7 14.6 7.3 9.2 8.3 20.3 20.0 19.1 20.5 17.7 36.8 18.4 37.7 21.6 10.8 20.3 8.6 20.8 1.6 21.5 25.1 14.5 3.6 21.2 17.0 21.8 14.5 17.3 15.7 18.0 9.6 8.9 38.2 26.3 44.6

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

82.3 23.0 33.7 61.6 17.0 0.9 72.6 27.8 14.5 22.2 18.2 125.4 7.8 19.0 20.5 22.0 59.5 -3.3 28.0 18.6 36.9 -3.7 15.7 -0.3 35.2 13.5 57.0 15.9 17.5 29.6 6.6 26.2 37.3 12.0 39.4 39.1 29.5 18.8 31.5 155.6 9.9 9.5 44.6 17.9 81.2 11.6 27.7 20.2 24.2 25.0 18.3 45.9 16.8 24.7

9 13 16 15 26 31 17 28 12 19 14 20 22 21 23 24 27 29 34 30 32 35 33 55 39 36 38 40 53 37 70 59 42 54 45 46 44 120 50 47 43 115 48 57 49 65 82 76 56 52 72 62 58 51

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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FINAL RANK

BASIS OF SIZE

68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121

COMPANY NAME NET SALES ( ` CR.) Apollo Tyres Ltd. Bharat Forge Ltd. Voltas Ltd. Jubilant Life Sciences Ltd. Areva T & D India Ltd. * E I D-Parry (India) Ltd. Aurobindo Pharma Ltd. J S L Stainless Ltd. Marico Ltd. Century Textiles & Inds. Ltd. Rashtriya Chemicals & Fertilizers Ltd. National Fertilizers Ltd. Glaxosmithkline Consumer Healthcare Ltd. * Biocon Ltd. United Breweries Ltd. Godrej Industries Ltd. Pidilite Industries Ltd. India Cements Ltd. Havells India Ltd. Shree Renuka Sugars Ltd. ** Alok Industries Ltd. Amtek Auto Ltd. ## Sintex Industries Ltd. Nirma Ltd. M R F Ltd. ** Procter & Gamble Hygiene & Health Care Ltd. *# Britannia Industries Ltd. Chambal Fertilisers & Chemicals Ltd. Pipavav Shipyard Ltd. Ballarpur Industries Ltd. *# Emami Ltd. B E M L Ltd. Madras Cements Ltd. Zuari Industries Ltd. Kesoram Industries Ltd. Gillette India Ltd. *# Torrent Pharmaceuticals Ltd. Gujarat Mineral Devp. Corpn. Ltd. Kalpataru Power Transmission Ltd. Eicher Motors Ltd. * D B Corp Ltd. Gitanjali Gems Ltd. Bajaj Hindusthan Ltd. ** Blue Star Ltd. K S Oils Ltd. Usha Martin Ltd. K E C International Ltd. Kansai Nerolac Paints Ltd. Gujarat State Fertilizers & Chemicals Ltd. Prism Cement Ltd. Rain Commodities Ltd. * Uttam Galva Steels Ltd. Gujarat N R E Coke Ltd. Sterlite Technologies Ltd.

8,132.7 3,330.3 4,808.1 3,785.3 3,578.8 7,557.5 3,575.0 6,122.5 2,660.8 4,595.2 5,677.8 5,060.2 1,986.0 2,368.2 2,257.5 3,405.0 2,198.8 3,529.4 5,429.2 2,816.0 4,558.9 3,438.6 3,281.6 4,618.8 5,671.3 904.2 3,819.1 4,140.7 629.4 3,884.1 1,023.0 2,846.3 2,795.3 6,168.9 4,756.3 853.6 1,903.3 1,065.8 3,900.6 2,961.4 1,057.8 6,527.8 2,053.3 2,525.0 4,053.2 2,508.8 3,904.8 1,815.1 4,017.4 2,873.2 3,638.9 4,540.5 1,439.5 2,430.8

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 653.4 -81.3 384.6 422.0 192.0 567.4 563.1 391.9 233.5 339.5 234.9 171.5 232.8 302.8 89.6 168.3 274.6 351.4 69.6 224.1 157.7 190.4 331.1 249.3 250.8 179.8 103.1 207.3 -48.2 240.4 67.6 224.6 353.7 268.1 237.3 137.1 231.2 279.9 196.1 129.6 174.9 201.6 57.9 211.5 212.5 171.5 189.7 165.5 254.5 258.4 443.3 57.3 6.8 245.9

3,096.1 2,635.1 302.6 4,324.5 890.3 2,177.8 2,280.9 8,181.2 484.7 3,771.8 1,382.8 695.0 232.3 1,413.5 1,115.3 996.2 839.0 5,115.1 1,242.2 1,673.4 8,167.0 5,302.4 2,221.6 2,825.4 1,222.2 196.8 512.4 3,389.4 2,583.0 5,430.0 567.3 318.0 4,010.2 573.7 3,844.7 123.3 651.0 1,351.1 882.2 375.8 647.5 371.4 4,390.1 199.3 1,266.7 3,177.7 720.0 305.8 1,263.4 1,796.0 3,450.1 2,514.2 2,449.8 714.1

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

35 95 81 56 103 42 74 31 132 51 60 78 173 117 143 106 141 52 68 108 40 57 84 62 63 302 107 65 196 48 267 129 73 59 50 331 162 179 97 130 233 58 90 153 87 96 99 194 85 102 67 69 148 136

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15.2 8.3 11.7 20.6 11.0 14.2 25.2 20.8 13.6 18.2 8.8 7.1 19.0 20.3 9.0 10.4 17.9 21.9 6.0 15.9 29.5 20.4 18.8 14.9 11.4 26.2 4.7 17.5 9.2 20.4 25.9 13.1 28.7 7.2 15.6 25.3 21.5 46.8 11.0 8.0 32.9 6.7 32.6 12.1 11.3 20.7 10.5 14.3 13.2 17.8 24.2 10.7 21.9 15.3

21.2 -0.4 32.8 8.0 23.2 21.6 20.7 5.2 35.9 11.4 6.2 7.6 27.4 15.8 4.9 7.0 22.2 7.0 6.2 11.1 2.4 3.0 8.5 6.9 16.2 35.1 9.8 5.6 -1.9 4.5 8.8 8.5 9.6 16.0 6.5 25.8 19.9 18.0 14.0 9.9 20.8 7.9 -2.7 45.8 14.0 6.0 18.6 20.1 12.3 19.5 10.8 2.4 0.0 32.0

DEBT/ EQUITY (TIMES)

148 474 94 250 178 158 80 285 64 235 419 424 77 152 434 392 128 242 443 270 208 326 265 350 264 29 429 332 478 298 171 355 137 329 343 57 116 22 298 382 52 427 232 38 293 273 240 177 290 142 167 438 345 72

0.9 1.5 0.0 1.4 0.9 1.7 1.2 4.2 0.7 1.4 0.7 0.3 0.0 0.3 0.7 0.9 0.5 0.6 2.7 0.9 3.6 1.2 1.4 0.5 0.2 0.0 2.3 1.9 0.8 1.6 0.4 0.4 1.7 1.2 2.0 0.0 0.7 0.2 0.9 0.1 0.5 1.2 2.0 0.0 1.1 0.6 1.0 0.1 0.3 0.8 2.5 2.5 2.0 0.4

256 364 72 350 263 372 311 478 209 336 221 124 1 133 214 251 181 196 442 268 471 321 336 165 119 1 434 402 237 368 152 159 375 321 415 1 204 104 258 99 167 314 408 64 301 196 288 102 138 245 438 437 409 149

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 3,404.7 7,136.5 6,590.5 5,211.2 6,868.8 3,458.7 5,663.9 1,969.2 7,178.7 4,571.8 4,932.8 5,484.9 7,321.1 6,499.2 6,708.1 5,718.4 6,332.3 3,506.2 4,057.7 5,267.0 1,662.5 3,359.2 4,518.4 3,205.5 3,164.0 6,453.0 4,435.4 2,884.4 5,439.1 2,007.7 5,688.9 4,421.9 2,657.4 1,964.6 1,500.2 5,363.1 4,421.5 4,335.5 2,917.7 3,723.9 4,595.7 1,428.2 2,630.5 3,737.3 2,430.1 2,564.1 2,636.4 4,022.8 2,149.3 2,578.3 1,245.6 1,518.7 3,436.6 3,216.6

RONW (%)

GROUP RANKING

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

33.5 -0.8 36.6 22.8 24.7 31.4 35.6 24.5 43.4 20.7 6.9 7.8 27.4 18.8 7.6 9.9 34.6 9.1 16.1 19.4 10.1 6.3 18.4 9.3 21.2 35.1 18.3 14.4 -3.2 11.7 14.0 9.0 25.1 17.3 15.2 25.8 31.3 22.5 19.5 10.8 38.1 9.5 -9.6 45.8 18.6 10.8 25.4 22.6 12.4 28.5 43.2 7.3 0.1 32.0

104 63 67 81 64 102 75 157 61 85 83 77 60 68 66 73 71 101 94 80 180 107 86 110 112 69 88 119 78 155 74 90 126 158 192 79 89 91 116 98 84 197 131 97 139 134 127 95 147 132 209 191 105 108

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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37

FINAL RANK

BASIS OF SIZE

122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175

COMPANY NAME NET SALES ( ` CR.) Sterling Biotech Ltd. * Birla Corporation Ltd. S Kumars Nationwide Ltd. Wockhardt Ltd. Aventis Pharma Ltd. * Vardhman Textiles Ltd. J B F Industries Ltd. Jai Corp Ltd. Ipca Laboratories Ltd. H T Media Ltd. Bombay Rayon Fashions Ltd. Max India Ltd. Whirlpool Of India Ltd. Deccan Chronicle Holdings Ltd. Triveni Engineering & Inds. Ltd. ** Jagran Prakashan Ltd. Rei Agro Ltd. Bayer Cropscience Ltd. A I A Engineering Ltd. J K Tyre & Inds. Ltd. Maharashtra Seamless Ltd. Fertilisers & Chemicals, Travancore Ltd. Nagarjuna Fertilizers & Chemicals Ltd. Balrampur Chini Mills Ltd. ** Gujarat Narmada Valley Fertilizers Co. Ltd. Sundaram-Clayton Ltd. S R F Ltd. Mcleod Russel India Ltd. Berger Paints India Ltd. Tube Investments Of India Ltd. Dalmia Bharat Sugar & Inds. Ltd. Kirloskar Brothers Ltd. Escorts Ltd. ** Prakash Industries Ltd. Arvind Ltd. D C M Shriram Consolidated Ltd. Bajaj Electricals Ltd. Pfizer Ltd. #** Bombay Burmah Trdg. Corpn. Ltd. Raymond Ltd. Bombay Dyeing & Mfg. Co. Ltd. P S L Ltd. Lakshmi Machine Works Ltd. S K F India Ltd. * Atlas Copco (India) Ltd. * J K Cement Ltd. A B G Shipyard Ltd. Akzo Nobel India Ltd. Hindusthan National Glass & Inds. Ltd. Jai Balaji Inds. Ltd. Moser Baer India Ltd. Strides Arcolab Ltd. * Adhunik Metaliks Ltd. Gujarat Fluorochemicals Ltd.

1,438.2 2,154.0 3,851.3 4,501.7 1,029.6 3,351.1 4,933.5 471.4 1,621.9 1,420.2 1,801.5 769.9 2,583.0 1,035.1 1,925.9 942.0 3,693.2 1,728.3 964.1 4,570.0 1,604.5 2,114.8 1,988.7 1,768.7 2,610.5 5,191.7 2,507.0 1,136.0 1,898.5 2,738.3 2,143.6 2,660.3 2,640.2 1,567.0 3,267.3 3,533.1 2,226.1 831.0 4,241.3 2,549.9 1,913.7 3,768.9 1,230.4 1,599.4 1,269.6 2,053.2 1,807.7 1,041.3 1,381.3 1,930.8 2,452.8 1,310.0 1,449.6 779.1

PAT ( ` CR.) 237.0 557.3 277.3 -1,002.3 157.4 304.3 208.8 91.2 203.5 134.8 162.5 -44.0 145.0 231.1 174.4 175.9 157.2 127.3 171.1 219.5 284.6 -103.9 66.3 209.7 123.8 -44.1 324.4 233.7 120.4 112.9 132.5 112.9 28.6 266.2 53.1 84.3 117.1 136.9 80.7 -52.1 18.4 119.8 99.9 94.3 84.8 224.6 218.1 159.3 154.2 35.4 -393.7 121.0 137.1 350.1

NET FIXED ASSETS ( ` CR.) 3,400.5 1,035.6 2,114.3 3,237.0 172.0 2,601.5 2,116.5 234.8 676.1 840.7 2,711.7 965.1 303.1 1,343.5 1,285.1 394.1 442.5 320.9 242.7 1,952.1 1,207.8 379.9 4,489.0 1,832.1 2,199.2 1,518.6 2,076.1 1,785.9 462.1 634.8 3,053.6 516.0 1,572.0 1,377.3 2,489.1 2,183.4 161.8 93.8 1,579.9 1,533.5 1,160.6 1,601.2 452.4 256.8 182.8 2,282.2 1,975.2 140.4 1,138.1 1,880.4 3,089.8 1,941.2 2,433.5 1,635.8

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

111 120 80 94 283 82 66 419 181 200 113 299 152 192 149 268 110 203 282 70 159 202 89 135 109 72 104 165 182 134 105 142 122 156 93 88 172 340 83 127 164 91 249 220 266 112 126 285 185 140 114 160 137 177

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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4.3 28.9 9.3 -19.1 16.9 8.0 10.5 3.2 20.9 11.3 6.4 -2.6 40.9 13.9 9.6 26.8 8.4 21.8 20.2 17.9 18.9 -22.1 2.1 6.7 3.5 -9.9 18.1 23.0 24.7 3.5 3.5 12.3 1.8 18.2 1.7 3.0 28.5 14.1 4.3 -2.4 1.1 8.5 11.4 13.6 15.0 11.3 9.6 16.0 11.3 1.9 -11.2 4.3 8.1 15.0

DEBT/ EQUITY (TIMES)

107 25 238 500 131 220 367 249 115 219 260 494 62 35 209 31 302 172 81 246 90 499 354 176 401 498 100 45 162 403 309 340 462 120 420 439 133 143 457 477 413 386 241 319 253 212 126 181 218 425 489 320 138 47

1.5 0.4 1.3 6.0 0.0 1.7 1.6 0.0 0.5 0.3 1.3 0.6 0.0 0.4 0.9 0.2 5.0 0.2 0.0 2.1 0.1 5.4 3.3 0.9 0.3 3.1 0.9 0.5 0.5 3.0 2.1 0.6 0.3 0.3 1.9 1.0 0.3 0.0 1.8 1.5 8.4 2.7 0.0 0.0 0.2 1.0 2.7 0.0 0.6 1.7 1.8 1.8 2.7 0.4

361 144 325 496 1 372 366 72 178 143 334 202 1 146 263 111 488 111 50 427 82 491 464 256 131 459 263 175 162 458 424 191 133 124 394 291 136 1 389 352 499 446 1 1 115 276 444 1 193 380 391 387 444 146

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 2,741.5 2,890.0 1,680.8 2,233.0 4,150.2 1,635.9 941.6 4,482.7 3,450.7 3,591.2 2,569.3 4,123.8 2,981.3 3,393.7 2,889.6 3,757.5 2,020.9 3,212.8 3,634.7 712.3 2,710.7 3,239.4 1,384.8 2,409.0 1,816.8 639.9 1,540.4 2,545.6 2,659.1 2,063.1 1,428.5 2,148.6 1,811.3 2,210.0 939.8 870.2 2,292.7 3,157.2 585.2 1,743.1 2,141.9 711.3 2,629.7 2,494.9 2,666.6 1,197.6 1,445.3 2,697.0 2,012.8 1,528.3 1,176.0 1,741.0 1,389.7 1,882.3

RONW (%)

GROUP RANKING

38.3 33.5 20.0 -10.5 22.5 22.7 9.0 25.4 20.5 19.6 21.5 1.9 9.0 45.1 22.2 32.4 16.5 12.9 25.6 10.9 25.9 1.6 19.6 27.9 13.3 5.3 25.2 33.1 10.9 12.9 20.7 10.1 6.7 22.7 13.1 10.1 10.6 23.1 5.6 9.8 14.0 9.2 17.5 10.1 13.5 20.4 30.8 18.2 19.7 12.7 15.2 19.4 29.9 40.7

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

9.1 35.1 14.9 -102.8 16.6 20.0 23.7 3.3 27.4 14.4 10.7 -3.4 41.7 18.8 17.6 29.4 21.0 23.5 20.2 28.5 15.8 -39.0 4.1 13.0 3.8 -32.1 28.4 18.0 24.6 13.0 10.0 15.2 1.8 19.0 3.6 5.8 33.5 14.1 8.7 -5.6 6.0 15.2 11.4 13.6 19.6 17.4 21.0 16.0 14.4 5.0 -23.1 11.8 25.2 21.5

121 117 179 150 92 183 238 87 103 100 133 93 114 106 118 96 153 109 99 277 122 111 202 140 164 309 186 135 125 152 196 146 166 144 241 252 141 113 314 174 149 280 128 136 124 217 195 123 154 190 222 172 198 161

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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39

FINAL RANK

BASIS OF SIZE

176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229

COMPANY NAME NET SALES ( ` CR.) Binani Industries Ltd. Uflex Ltd. Shree Ganesh Jewellery House Ltd. Orchid Chemicals & Pharmaceuticals Ltd. Chettinad Cement Corpn. Ltd. Alfa Laval (India) Ltd. * Honeywell Automation India Ltd. * Jindal Poly Films Ltd. B O C India Ltd. * Kwality Dairy (India) Ltd. Electrosteel Castings Ltd. Supreme Industries Ltd. *# Tecpro Systems Ltd. B A S F India Ltd. Godfrey Phillips India Ltd. Carborundum Universal Ltd. Jubilant Foodworks Ltd. Gokul Refoils & Solvent Ltd. Graphite India Ltd. Astrazeneca Pharma India Ltd. * Greaves Cotton Ltd. *# Ceat Ltd. Responsive Industries Ltd. Dishman Pharmaceuticals & Chemicals Ltd. Amara Raja Batteries Ltd. Balkrishna Industries Ltd. Indo Rama Synthetics (India) Ltd. Orient Paper & Inds. Ltd. Deepak Fertilisers & Petrochemicals Corpn. Ltd. Jyoti Structures Ltd. Welspun India Ltd. Bajaj Corp Ltd. Mukand Ltd. H E G Ltd. Bata India Ltd. * Plethico Pharmaceuticals Ltd. * Fresenius Kabi Oncology Ltd. Asahi India Glass Ltd. Sundram Fasteners Ltd. Century Plyboards (India) Ltd. Gujarat Alkalies & Chemicals Ltd. Himadri Chemicals & Inds. Ltd. Su-Raj Diamonds & Jewellery Ltd. Saraswati Industrial Syndicate Ltd. ** J K Lakshmi Cement Ltd. Texmaco Ltd. Clariant Chemicals (India) Ltd. * Radico Khaitan Ltd. Indian Metals & Ferro Alloys Ltd. Tamil Nadu Newsprint & Papers Ltd. Jayaswal Neco Inds. Ltd. Finolex Industries Ltd. Unichem Laboratories Ltd. F D C Ltd.

2,725.3 2,365.7 3,476.2 1,343.5 1,364.8 892.2 1,173.1 1,744.0 805.0 1,054.1 1,611.0 2,012.0 1,459.0 1,628.4 1,403.2 1,207.9 475.5 2,961.7 1,349.9 397.3 1,396.6 2,859.0 546.8 915.2 1,473.0 1,563.6 2,525.8 1,674.2 1,330.8 2,130.2 2,041.9 330.5 2,009.2 1,133.3 1,097.2 1,251.9 488.5 1,294.9 1,694.8 1,312.3 1,299.9 499.3 3,461.6 2,120.6 1,492.3 931.6 941.6 833.4 593.4 1,094.6 1,762.4 1,454.9 747.4 664.0

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 257.2 188.6 167.4 339.3 107.8 123.3 132.8 204.2 53.2 18.0 206.9 142.1 109.6 96.1 119.7 115.4 33.0 38.6 234.8 57.6 117.5 165.2 38.1 117.3 167.0 219.0 7.1 157.6 165.3 83.4 161.5 83.9 55.8 171.1 62.6 216.9 -33.4 1.4 47.2 183.2 171.8 107.3 71.3 101.4 241.1 93.5 107.6 41.5 41.0 126.1 69.1 132.3 123.1 149.1

2,373.2 1,656.7 19.5 2,072.2 1,243.3 100.1 75.3 1,313.9 1,116.6 18.2 934.8 578.6 131.8 271.4 360.4 637.3 142.9 335.0 544.7 30.4 280.5 1,034.9 328.7 1,200.4 329.9 715.2 1,469.6 1,173.1 1,223.4 177.8 1,571.4 18.4 2,176.8 722.2 137.3 614.4 528.0 1,282.3 741.9 517.3 1,609.0 634.6 60.6 398.8 1,244.9 232.0 161.1 466.9 635.7 2,096.6 1,168.7 902.0 397.0 285.6

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

98 119 121 138 189 329 278 155 254 349 170 169 240 215 228 230 458 139 206 474 234 116 401 222 214 184 125 163 180 186 133 484 124 224 307 210 415 204 197 216 167 347 123 171 161 313 317 321 351 166 168 195 320 346

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14.4 8.5 31.6 -30.2 6.8 34.9 35.7 11.2 3.4 21.7 6.6 21.9 34.5 15.2 16.8 10.6 29.2 7.2 16.6 36.0 28.1 33.8 14.4 8.4 25.5 29.9 0.3 14.7 9.3 15.4 4.7 217.3 2.6 32.3 22.0 15.6 -5.5 -0.4 7.2 27.7 5.9 13.8 8.4 18.2 15.4 21.4 31.3 4.8 4.9 7.2 16.7 17.8 21.5 31.3

DEBT/ EQUITY (TIMES)

160 275 134 472 125 44 55 200 368 276 231 161 67 289 303 252 103 449 76 33 109 92 255 189 101 46 465 202 179 283 263 1 387 26 187 157 492 381 406 70 234 71 444 248 102 140 65 425 278 167 203 152 85 32

3.4 1.4 0.7 1.7 0.9 0.0 0.0 0.5 0.1 4.6 0.8 0.6 1.4 0.0 0.2 0.7 0.1 0.8 0.3 0.0 0.0 0.7 0.9 1.0 0.2 0.7 2.0 0.6 0.8 0.8 3.2 0.0 4.0 0.9 0.1 0.7 2.3 7.5 1.3 0.8 0.2 0.6 1.2 0.5 0.9 0.2 0.0 0.8 0.6 1.7 1.9 1.4 0.1 0.0

467 346 204 380 258 50 1 169 97 487 237 186 346 1 105 223 92 245 124 1 78 218 272 284 105 214 413 200 237 226 462 1 477 258 87 212 433 498 328 249 120 186 306 165 269 115 50 229 196 377 402 346 84 50

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 374.7 993.5 965.9 1,394.3 1,783.7 2,441.0 2,258.8 1,375.0 2,184.2 2,411.6 1,543.3 1,455.7 1,975.8 1,861.3 1,919.2 1,921.5 2,589.7 1,054.2 1,680.4 2,585.5 1,773.0 504.1 2,296.8 1,640.3 1,534.4 1,226.5 637.4 1,071.6 1,222.1 1,247.2 650.8 1,941.9 482.0 1,382.6 1,775.8 1,305.0 2,120.6 1,258.9 1,181.9 1,288.0 924.6 1,817.7 346.7 939.9 811.8 1,692.0 1,664.7 1,729.9 1,786.0 787.1 813.9 1,023.2 1,627.6 1,664.1

RONW (%)

GROUP RANKING

21.4 17.9 7.0 38.2 33.7 21.6 15.9 21.2 16.0 4.7 23.5 13.7 14.2 10.4 8.0 17.9 13.7 3.9 30.0 23.1 14.4 10.7 13.9 25.0 17.7 25.7 8.1 17.7 25.0 10.7 22.9 30.6 15.0 30.0 11.4 20.4 6.8 18.4 9.1 20.1 23.8 33.9 3.8 10.5 27.6 16.0 18.0 9.8 21.4 27.8 15.6 18.3 23.5 27.8

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

57.5 17.7 33.2 -88.0 15.9 35.4 36.2 15.8 3.6 46.7 11.1 38.6 42.3 15.2 18.9 18.8 47.4 9.7 19.3 44.6 28.8 28.8 21.5 15.8 35.0 37.1 0.6 22.3 15.4 18.4 18.1 210.9 2.5 26.2 19.3 26.3 -13.2 -2.6 10.1 42.9 6.8 19.6 8.9 25.5 27.8 21.6 31.6 8.2 7.7 15.6 11.7 25.2 22.9 31.6

362 234 236 206 168 137 143 201 145 138 188 193 156 162 160 159 129 231 176 130 167 325 142 182 185 212 299 229 215 211 293 148 343 199 169 204 151 214 220 205 245 163 405 237 259 175 177 173 170 267 263 233 184 178

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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FINAL RANK

BASIS OF SIZE

230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283

COMPANY NAME NET SALES ( ` CR.) Garden Silk Mills Ltd. G H C L Ltd. Bilcare Ltd. Jyothy Laboratories Ltd. Sujana Metal Products Ltd. ** Sakthi Sugars Ltd. * O C L India Ltd. Electrotherm (India) Ltd. Panacea Biotec Ltd. Balmer Lawrie & Co. Ltd. Essel Propack Ltd. Abhishek Industries Ltd. Wabco-T V S (India) Ltd. Praj Industries Ltd. Mcnally Bharat Engg. Co. Ltd. Asian Star Co. Ltd. Ess Dee Aluminium Ltd. Ramsarup Industries Ltd. Apar Industries Ltd. I S M T Ltd. Bannari Amman Sugars Ltd. Time Technoplast Ltd. Polyplex Corporation Ltd. Wyeth Ltd. #** Abbott India Ltd. #** Finolex Cables Ltd. Heidelberg Cement India Ltd. * Everest Kanto Cylinder Ltd. K R B L Ltd. Monsanto India Ltd. Ruchi Infrastructure Ltd. K S L & Industries Ltd. Piramal Glass Ltd. Mangalore Chemicals & Fertilizers Ltd. Visa Steel Ltd. Phillips Carbon Black Ltd. H B L Power Systems Ltd. Sanwaria Agro Oils Ltd. F A G Bearings India Ltd. * Koutons Retail India Ltd. Sanghi Industries Ltd. R S W M Ltd. Sarda Energy & Minerals Ltd. Navneet Publications (India) Ltd. Grindwell Norton Ltd. Chemplast Sanmar Ltd. Eveready Industries (India) Ltd. Gulf Oil Corpn. Ltd. Elecon Engineering Co. Ltd. Kiri Dyes & Chemicals Ltd. J K Paper Ltd. Shri Lakshmi Cotsyn Ltd. *# Century Enka Ltd. Supreme Petrochem Ltd. *#

2,508.2 1,384.7 1,048.9 642.7 2,653.0 2,007.7 1,359.2 2,004.7 907.0 1,615.1 1,682.2 1,803.1 607.4 734.4 1,809.8 1,467.0 590.0 2,045.7 2,190.1 1,255.4 886.3 1,010.4 1,220.2 285.5 795.6 1,615.2 941.0 651.8 1,579.8 415.4 1,472.7 1,454.7 1,127.7 2,088.2 1,157.1 1,232.6 1,132.4 800.0 801.8 1,203.8 667.5 1,726.5 525.5 531.6 708.9 930.5 1,102.6 1,047.0 1,065.7 805.0 1,205.4 1,539.4 1,228.6 1,610.6

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 63.2 79.7 117.0 74.1 39.8 27.1 163.7 53.3 72.4 118.2 64.8 56.6 78.2 119.8 56.7 30.3 193.3 44.4 17.7 48.5 143.7 97.6 137.3 59.0 77.5 57.6 134.0 15.1 124.6 53.8 19.6 3.6 3.2 53.6 49.9 122.2 99.6 39.5 65.5 80.3 89.0 32.8 144.4 63.8 86.1 -128.2 127.2 -18.2 67.0 -57.0 91.0 91.7 100.2 60.5

1,142.6 2,366.0 887.9 237.8 505.1 2,113.2 1,308.8 1,583.9 863.4 198.4 1,031.1 1,744.1 186.8 144.8 324.9 151.4 378.4 1,538.0 181.1 1,301.0 737.1 687.4 1,388.3 32.6 49.1 447.6 375.1 706.8 353.4 115.9 302.8 1,547.6 856.2 388.2 1,586.7 686.9 429.9 127.9 148.4 160.6 1,611.6 897.9 906.4 94.6 233.5 1,467.4 921.3 605.4 362.2 722.7 900.4 816.1 610.1 285.4

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

131 147 229 381 151 128 174 144 259 218 176 150 393 365 205 257 330 145 190 201 258 255 188 494 377 212 281 334 211 467 247 175 248 178 193 225 262 378 369 277 226 187 291 442 371 250 219 279 280 325 217 199 231 223

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9.4 18.4 24.4 16.2 6.8 10.5 28.0 14.2 22.0 9.6 19.7 20.3 20.5 18.8 7.9 4.8 26.8 9.7 4.9 14.7 27.2 18.0 19.0 29.2 15.2 8.2 18.7 12.3 13.6 15.7 4.3 15.4 17.7 5.8 22.5 15.0 17.1 9.4 13.8 18.8 24.9 12.1 29.3 21.1 19.7 4.8 16.8 3.9 15.2 1.0 19.8 12.9 17.1 7.5

5.0 3.4 8.1 19.7 4.7 1.2 11.8 3.3 5.0 24.6 2.5 3.3 32.4 19.6 13.9 7.0 39.5 2.7 19.5 3.2 18.1 13.5 9.8 21.1 31.4 6.9 18.6 -1.3 22.8 16.3 2.3 0.2 0.7 16.7 3.8 27.7 14.3 23.7 16.7 13.0 5.2 3.1 14.7 19.6 22.5 -6.8 25.9 -4.7 13.6 20.7 19.6 10.3 14.7 16.7

DEBT/ EQUITY (TIMES)

430 348 198 158 447 446 129 390 269 180 341 325 53 136 348 445 20 441 307 383 83 213 243 59 75 417 141 450 149 205 481 409 377 335 278 106 214 193 224 211 228 411 97 123 113 497 105 495 245 353 130 328 210 310

2.1 1.8 0.7 0.0 2.6 4.6 1.0 2.2 1.0 0.0 1.1 3.4 0.0 0.0 1.4 1.6 0.4 3.0 0.6 1.9 0.3 0.8 1.3 0.0 0.0 0.4 0.0 0.8 1.1 0.0 1.8 2.4 4.4 0.3 3.6 1.7 0.8 1.9 0.0 1.3 1.1 5.5 1.0 0.2 0.1 5.7 0.6 1.2 1.6 1.1 1.2 2.8 0.4 0.7

423 391 218 72 440 485 291 431 288 1 300 465 72 1 339 370 152 456 192 401 138 240 326 50 1 158 50 240 301 72 390 436 481 133 473 379 249 405 1 329 304 492 279 122 87 493 186 311 369 304 309 453 148 206

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 332.4 479.6 1,213.0 1,741.9 465.9 224.6 727.0 354.4 1,269.7 1,028.1 737.7 377.2 1,629.5 1,519.8 862.7 1,187.6 1,348.7 245.1 684.1 776.6 1,085.5 1,091.5 644.7 1,792.0 1,444.2 846.9 1,113.1 1,301.2 702.7 1,547.6 882.7 403.9 832.2 371.9 434.5 613.7 812.5 1,158.9 1,128.8 858.6 592.0 305.7 870.6 1,271.3 1,065.0 735.6 470.9 848.0 790.5 922.6 437.2 277.9 538.1 474.3

RONW (%)

GROUP RANKING

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

13.2 8.7 17.0 20.0 8.6 2.3 22.5 8.2 9.0 24.6 4.6 11.3 33.7 19.6 22.4 8.3 45.7 9.7 26.9 9.0 23.2 18.2 20.9 21.3 31.5 9.3 18.1 -2.2 26.0 16.3 5.3 0.5 3.6 13.9 16.1 45.2 22.4 23.1 16.6 17.6 11.4 14.9 25.0 23.0 23.6 -35.4 23.3 -5.7 21.8 18.6 20.6 25.5 18.1 28.0

411 341 216 171 345 462 272 401 210 232 276 386 181 189 250 218 200 449 284 269 228 227 295 165 194 256 225 207 279 187 249 379 261 389 355 297 262 221 223 251 311 421 248 208 230 286 339 258 266 242 352 429 321 336

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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43

FINAL RANK

BASIS OF SIZE

284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337

COMPANY NAME NET SALES ( ` CR.) Surya Roshni Ltd. Nectar Lifesciences Ltd. Savita Oil Technologies Ltd. V I P Industries Ltd. Spice Mobility Ltd. Alembic Ltd. India Glycols Ltd. Shrenuj & Co. Ltd. Sunflag Iron & Steel Co. Ltd. West Coast Paper Mills Ltd. Solvay Pharma India Ltd. * T R F Ltd. Federal-Mogul Goetze (India) Ltd. * Bharati Shipyard Ltd. Ingersoll-Rand (India) Ltd. Advanta India Ltd. * National Steel & Agro Inds. Ltd. Man Industries (India) Ltd. Merck Ltd. * Sujana Universal Inds. Ltd. ** Godawari Power & Ispat Ltd. Surana Industries Ltd. Page Industries Ltd. Elgi Equipments Ltd. J B Chemicals & Pharmaceuticals Ltd. Dhampur Sugar Mills Ltd. ** K P R Mill Ltd. Aarti Industries Ltd. Force Motors Ltd. Himatsingka Seide Ltd. Forbes & Co. Ltd. Pradip Overseas Ltd. H S I L Ltd. Kalyani Steels Ltd. Gujarat Ambuja Exports Ltd. T T K Prestige Ltd. Elder Pharmaceuticals Ltd. Goodyear India Ltd. * Dhunseri Petrochem & Tea Ltd. Tinplate Co. Of India Ltd. Ankur Drugs & Pharma Ltd. Lakshmi Energy & Foods Ltd. ** Hanung Toys & Textiles Ltd. Voltamp Transformers Ltd. Nahar Spinning Mills Ltd. Hikal Ltd. House Of Pearl Fashions Ltd. K S B Pumps Ltd. * D C W Ltd. Esab India Ltd. * Ratnamani Metals & Tubes Ltd. Sujana Towers Ltd. ** Mirc Electronics Ltd. Kirloskar Electric Co. Ltd.

1,793.9 849.9 1,177.8 670.8 1,039.8 1,134.0 1,203.3 1,908.7 1,349.6 624.5 242.2 861.4 802.3 256.7 374.8 727.2 2,234.0 1,473.7 481.8 2,149.8 825.8 945.0 341.6 676.6 740.5 946.7 834.0 1,297.3 988.5 1,065.8 1,261.8 1,609.5 804.7 1,053.3 1,420.5 508.8 721.6 1,018.8 1,141.1 788.8 1,067.7 693.5 847.6 542.0 1,110.8 538.9 1,843.1 565.6 1,022.8 423.8 852.0 780.4 1,526.7 1,185.4

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 45.2 92.3 86.4 48.4 70.5 39.6 6.0 48.2 94.9 54.7 40.0 48.8 60.6 130.1 47.4 25.2 25.0 45.9 65.5 25.9 56.0 34.7 39.6 57.9 118.8 56.4 50.4 78.7 60.4 9.7 29.2 66.7 27.6 43.3 60.7 52.4 47.2 73.1 72.4 67.2 86.2 91.6 89.8 82.5 53.5 78.4 14.1 64.1 67.6 66.2 81.4 11.6 20.0 51.9

579.2 682.8 189.0 81.7 9.1 397.1 1,293.4 151.3 422.3 1,552.5 37.6 121.8 412.6 1,096.1 23.9 664.9 195.3 471.1 64.0 208.7 827.9 582.2 82.5 72.9 246.9 1,002.4 794.5 421.8 330.0 980.3 403.9 81.4 776.0 241.4 311.1 64.0 556.2 156.6 580.6 655.7 765.1 375.4 375.5 47.3 688.4 659.9 262.4 157.9 731.9 95.9 362.9 354.0 222.4 338.3

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

198 274 275 408 332 272 208 207 232 237 500 367 327 323 485 322 183 227 455 191 271 286 486 404 345 245 276 244 306 239 263 235 292 308 241 453 328 312 253 300 242 348 311 441 252 344 209 421 256 465 315 362 246 269

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8.4 9.2 24.9 32.4 65.9 6.3 -0.3 10.3 14.2 2.6 31.8 24.8 18.6 6.4 6.5 2.4 11.5 6.0 14.1 4.3 7.1 -2.3 34.7 26.5 18.8 5.0 10.4 13.1 8.9 0.6 -2.6 22.7 4.4 8.9 13.4 46.0 6.4 39.1 11.6 12.8 13.1 14.5 18.5 27.7 5.6 13.1 0.1 19.1 9.8 43.1 15.8 5.3 4.6 10.4

DEBT/ EQUITY (TIMES)

412 196 151 86 10 405 459 374 262 344 41 166 155 4 301 435 400 414 183 471 342 467 48 117 112 288 228 247 388 454 485 201 372 385 347 28 322 58 317 207 190 82 145 68 333 118 490 132 286 18 173 407 463 371

2.7 1.0 0.2 0.6 0.0 1.2 3.4 4.2 0.8 2.1 0.0 1.5 0.3 2.8 0.0 0.9 1.5 1.2 0.0 0.3 1.0 1.4 0.6 0.0 0.2 1.5 0.9 1.0 0.5 1.5 1.2 1.8 1.3 0.8 0.4 0.0 1.2 0.0 0.7 0.5 2.6 1.0 1.4 0.0 1.5 1.9 0.6 0.0 0.9 0.0 0.9 1.2 0.5 1.4

443 281 115 196 1 318 465 479 240 417 1 356 129 452 1 272 363 318 1 141 291 341 184 50 122 356 251 281 178 354 314 385 329 226 156 64 309 1 209 169 441 279 345 1 364 394 186 64 251 1 258 314 181 350

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 274.9 731.5 713.5 1,080.5 803.6 734.5 377.3 335.1 494.5 527.7 1,316.3 908.0 826.5 716.1 1,253.5 820.4 86.5 418.1 1,129.0 143.1 625.5 697.8 1,151.8 939.2 771.4 432.6 586.4 412.7 662.9 423.2 519.8 333.5 607.5 646.1 375.4 954.9 706.3 598.3 393.1 567.7 321.9 691.3 597.1 905.4 355.5 654.5 150.9 852.2 355.2 890.1 557.9 705.5 305.3 406.6

RONW (%)

GROUP RANKING

6.8 23.6 11.3 12.6 10.4 10.1 9.9 8.4 13.4 19.5 25.7 10.3 17.5 106.3 18.5 11.0 5.5 9.2 19.7 3.7 15.1 10.5 20.2 14.5 23.5 20.8 19.8 15.6 8.7 9.9 8.2 9.7 14.7 8.9 8.5 15.3 17.2 11.9 12.2 19.2 20.2 31.2 18.2 20.7 17.0 27.9 3.0 20.0 16.1 23.5 18.9 11.0 3.8 8.8

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

19.6 17.6 29.8 36.3 65.9 10.0 -0.7 18.4 25.6 7.0 31.8 38.0 20.6 16.6 6.5 4.1 17.5 11.0 14.1 4.8 12.0 -5.2 42.8 25.0 22.6 11.5 9.6 19.0 13.9 1.3 -4.9 32.3 7.8 13.9 13.9 46.3 10.9 38.4 18.7 22.3 28.7 17.2 26.3 27.7 9.5 20.9 0.1 19.1 19.0 43.1 24.8 8.3 7.0 17.7

434 273 275 226 255 274 392 407 331 324 203 240 257 278 213 265 494 366 224 485 300 288 219 239 268 358 312 364 290 370 333 396 308 296 385 235 281 301 378 315 409 285 305 244 398 291 484 254 393 243 317 283 426 371

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

J A N U A R Y 2 0 1 1 | SEARCH - THE INDUSTRIAL SOURCEBOOK

45

FINAL RANK

BASIS OF SIZE

338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391

COMPANY NAME NET SALES ( ` CR.) Atul Ltd. Walchandnagar Industries Ltd. ** Suashish Diamonds Ltd. Solar Industries India Ltd. S E L Manufacturing Co. Ltd. Surya Pharmaceutical Ltd. Provogue (India) Ltd. V S T Industries Ltd. Gokaldas Exports Ltd. Emco Ltd. Murli Industries Ltd. Greenply Industries Ltd. Meghmani Organics Ltd. Nilkamal Ltd. Kennametal India Ltd. *# Titagarh Wagons Ltd. Andhra Pradesh Paper Mills Ltd. Banco Products (India) Ltd. Sutlej Textiles & Inds. Ltd. Wheels India Ltd. Andhra Sugars Ltd. Nahar Industrial Enterprises Ltd. Pennar Industries Ltd. Kirloskar Ferrous Inds. Ltd. Hatsun Agro Products Ltd. Rico Auto Inds. Ltd. Vikas W S P Ltd. Timken India Ltd. * Mangalam Cement Ltd. Samtel Color Ltd. J V L Agro Inds. Ltd. Value Industries Ltd. ** Agro Tech Foods Ltd. Hitachi Home & Life Solutions (India) Ltd. Sona Koyo Steering Systems Ltd. Tide Water Oil Co. (India) Ltd. Kajaria Ceramics Ltd. Diamond Power Infrastructure Ltd. Tata Sponge Iron Ltd. K C P Ltd. Venky’S (India) Ltd. Bharat Bijlee Ltd. Cosmo Films Ltd. Spentex Industries Ltd. Ind-Swift Laboratories Ltd. Tilaknagar Industries Ltd. Kirloskar Pneumatic Co. Ltd. Natco Pharma Ltd. Ineos A B S (India) Ltd. * Parekh Aluminex Ltd. Shilpa Medicare Ltd. Temptation Foods Ltd. Lloyds Metals & Engineers Ltd. Riddhi Siddhi Gluco Biols Ltd.

1,212.6 514.0 1,195.0 557.1 962.2 1,142.3 493.3 470.5 1,151.0 978.6 572.1 942.6 839.2 1,095.5 370.1 559.8 649.3 466.7 1,186.4 1,247.1 852.8 1,018.9 825.5 806.6 1,141.6 994.6 459.4 320.1 667.5 1,123.3 1,234.1 1,204.7 649.6 637.8 890.0 651.4 730.9 584.2 519.9 643.5 705.5 656.8 961.3 1,252.8 783.9 387.3 452.9 458.7 564.8 634.2 264.9 1,276.7 567.9 745.8

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 55.6 23.4 82.1 58.6 67.1 73.9 21.3 62.0 -1.8 127.3 37.6 40.7 39.6 52.1 52.0 60.2 54.2 78.6 26.3 13.0 88.2 19.5 49.8 49.6 2.8 -4.9 120.0 32.5 118.9 76.5 29.2 4.8 25.1 46.1 16.2 57.8 35.9 50.6 84.5 105.6 53.9 41.2 66.6 -45.1 56.4 34.9 47.9 48.0 49.0 45.4 42.7 63.0 17.9 39.2

425.6 343.1 67.7 138.8 790.7 437.4 757.5 140.7 261.7 220.2 1,079.1 567.7 684.8 242.7 110.4 145.9 904.0 125.2 647.4 427.7 547.9 658.1 189.1 339.1 355.2 623.6 806.1 67.6 319.4 697.6 138.5 790.7 53.4 119.8 468.7 77.9 347.3 191.7 327.4 407.5 133.5 73.2 439.1 861.7 653.7 374.5 79.5 301.4 153.2 490.8 150.8 124.4 318.9 325.3

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

261 417 289 429 260 264 364 451 303 301 296 287 295 297 471 427 298 446 251 265 294 270 363 342 288 284 324 493 353 243 290 238 436 412 316 410 368 411 389 350 387 423 293 236 305 444 466 433 428 360 491 273 407 366

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11.1 9.8 11.7 17.3 19.3 14.0 12.6 8.9 5.9 20.5 22.6 10.2 15.2 11.0 23.9 17.7 22.8 22.4 14.0 7.1 22.1 14.9 12.6 11.6 5.8 9.3 36.3 15.7 28.2 13.2 4.7 11.9 5.5 10.0 8.4 12.7 14.9 17.0 25.2 24.9 13.5 10.5 13.8 7.5 14.9 15.3 16.2 20.5 14.5 17.4 29.6 7.8 6.9 15.7

5.9 8.9 6.7 20.4 7.7 27.7 2.1 24.2 -0.5 0.4 2.9 7.3 4.9 13.6 16.2 11.9 5.1 50.8 3.1 2.7 14.0 1.7 45.2 14.5 0.8 -0.8 15.0 9.4 34.4 1.8 10.0 0.5 17.1 23.3 3.9 31.6 10.4 13.4 22.0 22.1 27.4 17.6 4.7 -9.2 8.8 11.6 26.3 14.2 19.5 9.5 28.8 19.4 6.2 12.8

DEBT/ EQUITY (TIMES)

398 373 379 139 268 114 423 192 486 357 291 391 363 304 127 236 258 14 397 458 152 402 40 282 480 461 56 296 24 416 422 440 334 191 442 95 292 226 73 74 119 256 375 496 320 271 108 175 182 272 37 267 437 250

0.8 0.6 1.8 0.4 2.0 2.4 0.5 0.0 0.8 0.5 3.8 1.7 1.4 1.1 0.0 0.4 1.0 0.3 5.9 1.9 0.5 1.4 1.1 0.0 5.8 1.5 0.1 0.0 0.0 1.7 1.9 1.9 0.0 0.4 1.9 0.0 1.4 1.1 0.0 0.7 0.4 0.1 1.2 9.3 1.6 3.6 0.2 0.4 0.0 1.3 0.8 0.6 0.6 1.2

234 184 386 154 414 435 167 1 226 181 476 377 340 301 1 144 283 136 495 398 169 346 295 64 494 356 97 1 1 380 405 398 1 154 394 1 344 297 1 214 159 100 320 500 371 472 109 149 1 332 229 186 193 306

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 348.8 833.0 455.3 800.6 302.8 303.5 669.1 848.7 502.3 475.9 445.5 421.4 435.1 417.9 898.1 765.5 416.4 718.6 199.4 272.8 338.7 297.3 506.4 477.8 344.3 339.0 401.6 896.7 431.3 115.6 303.9 99.0 680.7 602.6 384.1 584.5 478.3 603.5 534.9 395.5 512.1 587.9 250.2 118.8 262.6 601.7 634.6 564.1 546.6 377.2 662.8 103.1 521.5 344.5

RONW (%)

GROUP RANKING

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

7.7 4.9 14.2 24.1 17.9 28.3 2.6 23.9 -0.6 0.6 13.3 17.3 9.9 23.5 16.2 13.4 10.1 50.7 16.7 6.6 20.3 3.2 24.2 15.1 3.7 -1.6 15.9 9.4 34.3 6.4 20.8 1.1 17.1 33.5 9.1 31.2 21.5 19.9 22.0 31.8 29.3 19.1 8.2 -81.7 14.6 19.3 32.2 17.4 19.5 15.9 53.6 21.9 9.9 20.2

403 260 346 264 421 417 292 253 337 344 351 360 357 359 246 270 369 271 464 439 402 431 327 340 410 414 375 247 349 492 419 495 287 302 382 307 338 304 320 368 323 310 446 500 440 306 294 318 319 383 282 489 326 399

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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47

FINAL RANK

BASIS OF SIZE

392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445

COMPANY NAME NET SALES ( ` CR.) Dynamatic Technologies Ltd. Subros Ltd. Simbhaoli Sugars Ltd. ** Jagatjit Industries Ltd. Oricon Enterprises Ltd. Nagarjuna Agrichem Ltd. Munjal Showa Ltd. Parenteral Drugs (India) Ltd. Henkel India Ltd. * Cmi F P E Ltd. P I Industries Ltd. Anik Industries Ltd. Swaraj Mazda Ltd. Transformers & Rectifiers (India) Ltd. L T Foods Ltd. I F B Industries Ltd. Hawkins Cookers Ltd. Sangam (India) Ltd. Rohit Ferro-Tech Ltd. Gabriel India Ltd. Tamilnadu Petroproducts Ltd. Indoco Remedies Ltd. Relaxo Footwears Ltd. Lanco Industries Ltd. Pricol Ltd. Balasore Alloys Ltd. Jamna Auto Inds. Ltd. Shasun Pharmaceuticals Ltd. Lloyd Electric & Engineering Ltd. Kei Industries Ltd. Automotive Axles Ltd. ** D C M Shriram Inds. Ltd. Empee Distilleries Ltd. Paper Products Ltd. * Oil Country Tubular Ltd. Vesuvius India Ltd. * Heritage Foods (India) Ltd. Sudarshan Chemical Inds. Ltd. Rana Sugars Ltd. Navin Fluorine Intl. Ltd. Gujarat Sidhee Cement Ltd. Parabolic Drugs Ltd. Seshasayee Paper & Boards Ltd. Action Construction Equipment Ltd. Nakoda Ltd. * Goenka Diamond & Jewels Ltd. Jay Shree Tea & Inds. Ltd. Jayant Agro-Organics Ltd. Omax Autos Ltd. Hinduja Foundries Ltd. Thiru Arooran Sugars Ltd. * Rajshree Sugars & Chemicals Ltd. Jay Bharat Maruti Ltd. Andhra Cements Ltd.

444.5 906.1 699.3 691.8 556.9 644.8 1,004.0 413.1 483.5 387.9 595.2 1,216.4 720.3 521.4 1,048.5 611.7 286.2 847.5 824.6 702.9 910.6 404.4 555.4 690.6 836.4 415.1 613.2 801.9 817.1 909.5 268.2 863.5 617.4 586.4 333.0 362.8 888.1 590.4 675.2 429.7 646.9 514.2 509.3 430.5 986.3 536.8 416.0 904.8 865.7 391.3 649.2 580.6 803.8 331.4

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 10.5 28.4 72.0 6.5 38.5 59.8 24.6 30.4 -12.6 27.3 41.9 11.1 21.5 51.3 33.2 53.8 36.8 17.2 32.5 24.0 1.5 42.1 37.8 66.1 24.0 0.3 11.0 3.8 33.8 14.2 9.7 39.1 15.4 37.4 55.8 37.4 5.5 41.2 25.0 89.6 57.3 29.5 39.9 22.3 20.9 41.2 61.8 12.5 14.2 0.4 46.8 46.0 21.0 47.7

289.3 296.1 602.8 371.4 419.6 184.1 262.8 388.0 262.9 28.3 208.8 119.2 125.1 107.4 252.2 90.0 16.9 577.0 380.5 196.5 480.5 227.9 228.4 312.0 260.4 1,163.4 167.5 274.6 300.5 277.9 152.2 308.7 596.6 203.4 88.2 104.2 224.0 109.8 548.0 208.4 77.9 178.1 505.8 82.4 173.4 7.7 170.0 165.3 354.2 597.2 226.7 455.7 202.3 520.2

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

452 333 318 379 386 392 319 438 454 487 409 304 400 448 309 425 499 310 338 391 314 457 424 370 356 326 432 373 354 341 496 337 358 416 483 479 357 435 352 440 413 445 383 473 335 461 456 361 339 414 390 376 375 426

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

48

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14.2 9.7 16.0 5.1 12.3 17.4 6.6 15.9 2.5 11.9 13.9 3.5 7.5 15.3 11.3 10.1 19.8 15.7 11.9 8.9 5.9 14.0 14.4 18.9 10.8 15.9 9.6 7.8 9.8 7.1 12.7 10.9 5.6 12.8 31.2 17.6 5.3 13.5 21.1 33.6 14.3 14.3 22.6 8.7 5.1 9.1 20.5 4.6 7.7 13.6 23.2 23.4 8.9 3.3

3.1 10.5 24.8 1.0 11.1 23.4 9.3 7.7 5.9 15.9 19.0 4.5 10.9 18.2 5.9 35.9 85.0 2.6 8.2 10.8 0.1 12.2 20.9 14.1 5.6 -1.9 10.9 -6.5 7.4 1.0 2.3 12.2 2.8 11.4 36.2 17.8 2.9 23.6 3.1 31.5 46.3 16.9 8.5 14.9 9.1 78.3 23.1 9.6 3.1 -0.2 19.1 10.1 15.3 7.8

DEBT/ EQUITY (TIMES)

393 362 121 482 327 122 408 324 466 261 194 473 378 185 395 79 5 380 364 365 483 280 165 195 403 433 360 493 394 470 418 330 464 308 16 163 469 144 313 21 30 216 217 323 432 8 99 431 452 436 111 186 312 448

2.1 0.7 5.2 0.9 0.3 0.9 0.7 0.8 1.0 0.0 0.9 1.7 0.5 0.3 3.5 0.0 0.3 3.7 1.5 1.0 0.5 0.2 1.3 1.8 1.7 1.0 2.2 2.8 0.7 1.6 0.3 1.4 2.1 0.1 0.0 0.0 2.1 0.8 2.0 0.0 0.2 3.5 1.5 0.2 3.0 0.6 1.2 2.5 1.9 2.7 2.1 3.5 0.6 3.1

425 223 489 263 141 270 212 235 276 1 272 383 162 124 468 1 138 474 359 288 169 115 329 391 375 284 429 449 207 367 129 341 421 92 78 1 426 229 411 78 105 470 352 111 457 200 314 438 404 448 427 469 203 460

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 585.5 279.7 117.2 417.5 416.0 395.9 225.7 517.7 582.0 663.2 426.7 170.0 434.9 505.4 165.2 417.0 511.7 151.2 218.8 369.8 182.8 509.1 382.0 242.6 245.7 175.1 407.1 316.5 226.0 213.9 644.6 170.3 250.3 381.5 481.7 525.2 229.8 353.4 168.4 307.5 221.5 357.1 223.9 470.3 98.8 289.6 361.6 162.9 120.3 324.2 197.8 155.1 169.1 313.9

RONW (%)

GROUP RANKING

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

9.1 14.8 102.5 0.9 14.2 32.7 14.7 10.6 5.8 15.9 34.2 5.2 14.4 18.8 16.1 35.2 112.3 9.6 13.0 17.5 0.2 14.1 41.0 37.9 14.8 -1.2 24.9 -14.9 9.0 1.8 3.1 16.5 5.9 12.9 36.0 17.8 7.4 35.1 7.0 33.9 74.2 24.1 19.2 14.6 24.7 76.0 30.3 14.0 6.2 -0.3 38.4 37.0 25.3 20.2

313 433 463 374 365 367 455 328 316 289 350 479 356 329 475 353 303 481 461 388 474 330 373 438 443 480 363 430 459 465 298 473 448 381 332 322 456 387 478 413 432 390 454 342 491 397 384 477 488 420 458 471 470 416

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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49

FINAL RANK

BASIS OF SIZE

446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500

COMPANY NAME NET SALES ( ` CR.) Bhansali Engineering Polymers Ltd. Genus Power Infrastructures Ltd. Denso India Ltd. M S P Steel & Power Ltd. Siyaram Silk Mills Ltd. M I C Electronics Ltd. ## T V S Srichakra Ltd. Dharani Sugars & Chemicals Ltd. Oudh Sugar Mills Ltd. ## Compuage Infocom Ltd. N R B Bearings Ltd. Kothari Products Ltd. Swaraj Engines Ltd. Orient Abrasives Ltd. Emami Paper Mills Ltd. Mawana Sugars Ltd. ** Nitin Fire Protection Inds. Ltd. Banswara Syntex Ltd. C C L Products (India) Ltd. Excel Crop Care Ltd. Rainbow Papers Ltd. Gillanders Arbuthnot & Co. Ltd. A G C Networks Ltd. **# Nocil Ltd. Lumax Industries Ltd. Steel Strips Wheels Ltd. Sagar Cements Ltd. Kanoria Chemicals & Inds. Ltd. A P L Apollo Tubes Ltd. V S T Tillers Tractors Ltd. Ind-Swift Ltd. Numeric Power Systems Ltd. Eskay K’N’It (India) Ltd. Kalpena Industries Ltd. Dhanuka Agritech Ltd. Dwarikesh Sugar Inds. Ltd. ** Twilight Litaka Pharma Ltd. Kohinoor Foods Ltd. English Indian Clays Ltd. Honda Siel Power Products Ltd. Bodal Chemicals Ltd. Zodiac Clothing Co. Ltd. Garware Polyester Ltd. Nitco Ltd. L G Balakrishnan & Bros. Ltd. Gemini Communication Ltd. Goodricke Group Ltd. * Rathi Steel & Power Ltd. Ferro Alloys Corpn. Ltd. Saurashtra Cement Ltd. Sabero Organics Gujarat Ltd. Bannari Amman Spinning Mills Ltd. Amrit Banaspati Co. Ltd. Gallantt Metal Ltd. Prakash Steelage Ltd.

312.9 654.1 744.1 392.5 660.9 292.8 702.5 575.0 578.4 1,100.6 358.5 572.2 282.4 326.2 391.8 724.3 313.9 630.9 437.5 640.5 275.5 619.6 538.3 439.2 637.3 419.9 484.8 424.8 615.8 346.0 680.6 460.4 816.8 718.8 408.1 469.7 492.4 852.2 336.5 307.1 491.3 322.6 315.2 451.9 555.1 350.2 372.6 755.8 309.9 579.6 430.3 355.0 806.4 432.6 438.2

NET FIXED ASSETS ( ` CR.)

PAT ( ` CR.) 10.5 26.4 18.9 32.0 33.7 62.8 29.8 45.6 19.6 5.8 21.7 71.3 37.4 51.2 7.0 -56.8 37.1 30.9 28.3 38.1 23.6 25.4 34.6 35.0 5.9 14.5 20.3 26.9 29.8 42.3 36.7 37.9 9.8 29.9 36.3 25.1 32.6 -7.0 29.4 12.7 14.0 26.2 27.0 -8.8 24.4 32.6 41.9 4.4 14.0 23.2 38.7 15.1 8.0 23.6 17.6

178.9 70.6 102.6 502.6 201.1 160.8 115.4 386.0 688.8 5.1 168.9 64.5 23.7 132.6 411.2 760.4 94.8 362.6 291.3 111.3 426.0 229.4 21.6 124.2 270.0 422.9 388.5 576.7 120.9 52.8 302.8 72.2 309.2 78.3 38.6 555.4 90.8 107.2 211.3 66.9 234.3 100.7 380.6 612.6 153.5 131.4 68.6 333.1 89.3 355.8 95.4 510.1 46.2 227.3 62.4

GROUP RANKING

TOP 500 MANUFACTURING COMPANIES - LISTING

489 431 399 418 396 477 402 385 355 343 476 434 498 478 449 336 490 382 447 420 464 406 462 468 403 437 422 395 430 488 380 469 359 405 480 388 463 384 472 497 450 492 460 398 443 481 482 374 495 394 470 439 397 459 475

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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11.9 10.9 5.4 16.6 12.1 25.6 9.3 23.6 24.3 1.8 16.5 13.9 18.8 23.5 18.4 9.0 18.6 15.9 14.8 11.3 23.1 13.0 11.0 13.4 7.0 13.0 16.6 21.7 9.7 18.7 14.1 11.4 13.4 7.2 13.2 26.7 13.1 8.5 20.3 8.2 9.7 13.9 16.6 6.0 13.1 27.3 16.7 6.8 11.6 21.7 17.8 19.2 2.4 14.5 9.3

13.4 15.4 9.1 12.9 11.7 22.3 24.3 12.5 2.2 9.2 8.5 6.7 34.0 34.2 1.2 -7.2 17.9 6.7 9.2 21.2 5.8 8.1 13.6 9.0 3.0 4.8 5.1 4.5 14.9 38.8 8.4 19.1 1.7 20.8 31.6 3.8 23.6 -0.8 14.5 16.0 7.3 14.5 7.3 -1.2 18.2 11.2 32.9 1.0 3.9 2.3 32.4 2.7 14.7 8.6 15.9

DEBT/ EQUITY (TIMES)

294 277 428 237 318 69 184 155 274 451 300 359 54 39 366 491 147 336 315 199 243 356 306 339 456 384 351 281 305 42 338 222 415 257 89 224 146 476 169 311 398 254 316 487 215 135 63 475 410 314 61 346 396 331 295

0.8 0.9 0.1 2.1 1.0 0.2 2.0 4.5 4.5 5.4 0.5 0.0 0.0 0.4 2.8 3.2 0.7 3.8 1.2 0.8 1.5 1.3 0.0 0.1 0.7 2.2 1.1 1.3 0.8 0.0 2.0 0.0 1.3 1.4 0.6 2.8 1.9 4.4 0.9 0.0 4.6 0.2 1.4 0.9 0.7 1.9 0.1 2.1 0.1 6.6 0.7 2.7 1.1 1.0 2.8

232 254 82 420 284 120 415 483 484 490 180 50 1 156 450 461 218 475 311 240 362 323 1 84 223 430 295 324 245 64 412 50 334 341 193 454 407 481 254 1 486 105 336 263 209 400 89 422 102 497 221 446 298 284 450

BASIS OF EQUITY VALUATION AVG. 365-DAY MARKET CAPITALISATION ( ` CR.) 498.2 299.3 261.0 273.9 232.8 414.2 212.6 147.5 99.0 70.1 439.1 311.5 471.7 375.2 339.8 106.1 444.0 163.5 313.8 238.4 352.0 230.9 340.4 363.5 230.0 277.6 239.1 185.6 244.6 365.4 127.8 336.5 85.2 170.1 334.8 141.9 277.1 161.7 337.7 450.5 267.6 409.4 298.3 180.1 206.7 323.8 300.1 65.6 412.3 105.0 235.4 192.6 102.3 242.7 270.7

RONW (%)

GROUP RANKING

ROCE (% )

GROUP RANKING

PBDITA MARGIN (%)

BASIS OF CAPITAL STRUCTURE

GROUP RANKING

BASIS OF PROFITABILITY

5.2 17.9 9.1 16.3 20.1 20.9 40.3 52.9 11.4 28.9 11.6 6.7 34.0 39.7 3.8 -24.3 22.8 24.0 14.5 21.4 15.5 14.1 13.6 9.6 4.9 8.9 9.8 9.8 15.5 38.5 14.1 19.1 3.1 33.2 43.9 13.6 36.7 -3.8 25.5 16.0 23.6 14.6 10.2 -1.7 30.0 27.9 35.6 2.6 4.3 19.7 41.3 9.0 26.8 15.6 40.3

335 424 442 436 450 361 451 468 493 496 354 423 334 377 412 498 347 472 418 445 395 453 406 394 460 437 452 469 444 380 486 404 497 466 391 483 425 482 400 348 435 372 428 476 457 408 415 499 376 490 441 467 487 447 427

## Year End June 2009 | ** Year End September 2009 | #** Year End November 2009 | * Year End December 2009 | *# Year End June 2010 | **# Year End September 2010

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51

ANALYSING THE TOP 13

#1 RELIANCE INDUSTRIES LTD (RIL)

IN A LEAGUE OF ITS OWN Impossible is an inspiring word. Nothing aspires leadership at Reliance Industries than this magical word. Keeping its innovative spirits high and a will to achieve the impossible is what motivates the company to break its own records.

India’s largest private sector enterprise, which continues to retain the pole position, plans to broaden its horizons through aggressive exploration, development and appraisal of its existing discoveries and possible inorganic acquisitions.

R

eliance Industries Ltd (RIL) was incorporated by the visionary Late Shri Dhirubhai Ambani in 1966 as a textile company, ‘Reliance Commercial Corporation’, and led its evolution as a global leader in the materials and energy value chain businesses.

RIL commands a dominant position across the globe as: The largest refining capacity at a single location The largest producer of polyester fibre and yarn The 4th largest producer of paraxylene (PX) The 5th largest producer of polypropylene The 7th largest producer of purified terephthalic acid (PTA) The 7th largest producer of mono ethylene glycol (MEG).

RIL has marked its presence across various verticals be it exploration and production (E&P), refining, polymers, fibre intermediates, polyester, textiles, retail, pharma and special economic zone (SEZ).

The company’s major products and brands – from oil & gas to textiles – are tightly integrated and benefit from synergies across the company. The company enjoys a leadership position in most of its products in India. RIL has 12 world class manufacturing facilities in India.

ACHIEVEMENTS –FY10 RIL made four discoveries during the year. They are: - Well R1 in the KG-V-D3-block - Well AA1, BF1 and AH1 in on-land CB-10 block.

52

Commissioned two new PP Year of Incorporation 1966 lines in Jamnagar resulting in Industry classification Refining & Exploration a polymer production Promoter Reliance Group (Mukesh Ambani) increase by 33 per cent.

Promoters stake 44.74% In April 2010, RIL entered 365-day Avg. Market 339,070.6 into a Joint Venture (JV) with Capitalisation –` crore US-based Atlas Energy, Inc EV – ` crore 400,482.82 under which RIL acquired EPS adjusted–` 49.65 40 per cent interest in Atlas’ β (Beta value) 1.03 core Marcellus Shale acreage P/ BV 2.56 position for $1.70 billion.

Credit Rating CRISIL – AAA Fitch – AAA (ind) RIL has farmed out 20 per CRISIL – P1+ cent PI in the blocks Borojo North and Borojo South in Colombia, and 30 per cent PI in block DG and supplied over 512 billion cubic feet 18 and 25 per cent PI in block 41 in (bcf) of gas within India. The production Oman. It has now 13 blocks in its level currently exceeds 60 mmscmd of international E&P portfolio. natural gas and over 35,000 barrels of crude oil per day. Also, the new SEZ refinery at FINANCIAL PERFORMANCE Jamnagar created a global benchmark by ANALYSIS – FY10 achieving a peak rate of 120 per cent. The During FY10, RIL achieved a record gross refining margins (GRMs) for the year turnover exceeding ` 200,000 crore, a was at $6.6/bbl, a premium of $3.1/bbl over y-o-y growth of 34.38 per cent. The the Singapore complex margin. However, revenue growth was entirely due to volume the GRMs were quite low as compared to and offset by fall in prices. Within a year of last year due to weak demand, high levels of start-up, RIL ramped up production at KGinventories and high crude prices leading to

Segment analysis on consolidated basis Segment

Products

Petrochemical Polyester yarn & fibre, PX, PTA, MEG, PVC, LAB, butadiene, acrylonitrile, caustic soda, olefins, aromatics, etc.

Refining Production & marketing of petroleum products Oil & Gas Exploration & development of crude oil and natural gas Others Textiles, retail and SEZ. Total --

SEARCH - THE INDUSTRIAL SOURCEBOOK | J A N U A R Y 2 0 1 1

Percentage-wise contribution to net sales in FY10 27.50 63.96 6.21 2.33 100.00

Net Fixed Assets ` cr

200000

Financial performance analysis – FY10 All figures in ` crore unless specified

CAGR 28.41%

Consolidated

175000

Parameters

150000

Net Sales

203,370.57

34.38

192,091.87

35.32

125000

PBDITA

41,679.56

63.58

33,032.85

30.12

PAT

24,349.56

62.26

16,235.67

6.05

100000 75000 50000 0

FY 06 FY 07 FY 08 FY 09 FY 10

Net Sales ` cr

225000 200000 175000 150000 125000 100000 75000 50000 25000 0

CAGR 25.23%

Y-O-Y growth %

FY10

Y-O-Y growth %

Net worth

141,002.98

16.28

137,170.61

8.54

Total debt

64,605.52

(15.28)

62,494.69

(15.44)

Net Fixed Assets

25000

FY10

Standalone

177,224.93

(2.03)

165,398.71

(2.35)

PBDITA Margin %

18.67

--

16.22

--

PAT Margin %

10.91

--

7.97

--

ROCE %

13.29

--

8.81

--

RONW %

18.62

--

12.32

--

Debt/Equity - times Interest Coverage -times

0.49

--

0.49

--

14.98

--

11.41

--

1.18

--

1.20

--

Asset Turnover -times Source: Prowess, CARE Research

per cent y-o-y due to higher revenues and sharp increase in GRMs by 32 per cent at $7.9/bbl.

VISION FY11 & BEYOND FY 06 FY 07 FY 08 FY 09 FY 10

weakening of product cracks. The revenues from petrochemical business improved by five per cent and operating profits in the petrochemical business expanded by 25 per cent due to margin expansion and strong domestic growth. The net profit for RIL in FY10 on a consolidated basis improved by 62 per cent y-o-y primarily led by exceptional income of Rs8605 crore due to the sale of RIL shares by Petroleum trust. On a standalone basis, the net profit increased by six per cent primarily due to higher operating profit and other income, partly compensated by higher depreciation (O&G and refinery), interest (lower capitalization) and higher MAT provision.

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 RIL reported a 23 per cent rise in net sales backed by increased revenues from oil & gas business and refinery segment due to incremental volumes coming from SEZ refinery. RIL achieved a volume growth of 13.6 per cent and price realisation improved by 9.2 per cent. PBDITA improved by 28

Financial performance analysis – Q2FY11 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT PBDITA margin % PAT margin %

Standalone Q2FY11 y-o-y growth % 57,479.00 22.69 10,068.00 28.34 4,923.00 27.80 17.31 -8.47 --

Aggressive exploration, development and appraisal of its existing discoveries and possible inorganic acquisitions.

In the refinery business, RIL aims to widen feedstock flexibility and Source: Prowess, CARE Research product slate.

In the petrochemicals segment, RIL plans to shift to specialty products and CY2012. Within the non-OECD markets, improve market shares and margins.

50 per cent of the growth will come from By cancelling all existing non-compete China and the rest of Asia. Higher agreements between RIL and ADA automobile sales, strong economic recovery group, RIL will be keen to enter into and increased investments in road power (excluding gas based power infrastructure will support demand for generation) and telecom business. gasoline in India and China. The By having invested in Deccan 360, petrochemical sector will witness a good delivery and distribution network performance backed by domestic demand company, RIL plans to enter the logistics growth mainly driven by infrastructure, spectrum in India. packaging and automobile sector. The Focus on the Retail business by new polyester segment will witness robust product and service offerings. growth due to improving textile demand coupled with a steep rise in raw cotton and EXPANDING PORTFOLIO cotton yarn prices. On the new initiatives An improved global economic outlook will front, with the non-compete agreement continue to drive demand for key products being cancelled, RIL plans to enter telecom across the company’s value chain. Revenues and power business (excluding gas-based from supply of natural gas & oil will augment power generation). It recently acquired 95 the company’s topline. Of the incremental per cent stake in Infotel Broadband betting growth in oil demand, 77 per cent will be big on high-end data services and the contributed by non-OECD nations by wireless broadband segment.

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53

ANALYSING THE TOP 13

#2 OIL & NATURAL GAS CORPORATION (ONGC)

INTENSIFYING PRODUCTION TO MAINTAIN LEAD Having achieved highest accretion of ultimate reserves in the last two decades from domestic acreages as well as highest-ever production of oil & gas from overseas assets, ONGC has maintained a constant lead among oil E&P companies. The company, having assumed the status of a ‘giant’ in the Indian oil exploration segment, would increasingly emphasise on meeting the country’s oil requirements through new explorations in the oil & gas segment.

O

NGC, incorporated in 1959 by the Government of India (GoI), is actively engaged in the exploration and production of crude oil and natural gas. Other products manufactured by the company include ethane/propane, liquefied petroleum gas (LPG), naptha and superior kerosene oil (SKO). The company was awarded 17 of the total 31 blocks on offer with operatorship rights in 14 of the said blocks during NELP-VIII .The company is also operating five coal bed methane (CBM) blocks ie., Jharia, Bokaro, North Karanpura and South Karanpura Blocks in Jharkhand and Raniganj Block in West Bengal. CBM production from the pilot project at Parbatpur commenced from January 2010. In an effort to tap other alternative sources of energy, the company has set-up a 51 MW wind farm near Bhuj in Gujarat, which entails an investment of Rs308 crore. The energy so generated is utilised for captive-consumption by the company’s plants located at Ankleshwar, Ahmedabad, Mehsana and Vadodara.

ACHIEVEMENTS – FY10 ONGC made 21 new discoveries (14 – Offshore & 7 – Onshore). Of the 21 discoveries, 11 were new project discoveries, while the rest were new pool discoveries.

During FY10, the company recorded its highest accretion of 82.98 million tonne of oil equivalent (MTOE) of ultimate

54

SEARCH - THE INDUSTRIAL SOURCEBOOK | J A N U A R Y 2 0 1 1

reserves (3P) in domesticYear of Incorporation 1959 operated fields in the last two Industry classification Crude oil & natural gas decades.

Promoter Government of India (GoI) The reserve replacement Promoters stake % 74.14 ratio (RRR) was 1.74 for 3P 365-day Avg. Market 259,367.31 reserves – the highest ratio Capitalisation –` crore recorded in the last two EV – ` crore 216,729.09 decades. FY10 was also the EPS adjusted – ` 78.30 5th consecutive year that it has β (Beta value) 0.90 maintained an RRR of more P/ BV 3.23 than 1 as against the global average of less than 1 as Credit Rating ICRA – LAAA Source: Prowess, CARE Research registered by many large oil companies.

It accounted for 79 per cent of India’s won 50 per cent of the blocks, ie. 121 of crude oil and 54 per cent of natural gas the total 242 blocks. production during FY10.

ONGC Videsh Ltd (OVL) registered the FY10 FINANCIAL PERFORMANCE During FY10, ONGC reported net sales of highest-ever production of 8.87 MTOE ` 98,740.34 crore with a y-o-y decline of of oil & gas.

ONGC is in the process of developing three per cent. During the year, the various offshore marginal fields, namely, company’s combined oil & gas production the D-1 field, North Tapti gas field and (including OVL & ONGC’s share in the PSC Cluster-7 fields with a total investment - JV) was recorded at 60.93 MTOE thus of ` 6,160.35 crore. registering a marginal y-o-y decline of 0.5 ONGC is also currently implementing per cent. The subsidy expenses borne by redevelopment projects in Western the company aggregated to ` 11,554 during offshore fields at an estimated cost of FY10 with a y-o-y de-growth of 59 per ` 182 billion, which includes Mumbai cent. However, the expenditure on the High North & South redevelopment write-off of wells and depletion of wells phase II and Heera & South Heera aggregated to ` 13,520 crore; thereby redevelopment. recording a significant y-o-y growth of 45.1 ONGC holds the highest number of per cent. Correspondingly, the PAT declined NELP blocks; with the total eight rounds on a y-o-y basis to 2.1 per cent with the PAT that have been rolled out, ONGC has figure during FY10 at ` 19,727.57 crore.

Turnover 5 - year CAGR of 5.82%

` cr

70000 60000 50000 40000 30000 20000 10000 0

FY 06 FY 07 FY 08 FY 09 FY 10

Capex ` cr

25000

5 - year CAGR of 19.8%

20000

All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage times Asset Turnover times

Consolidated FY10 Y-O-Y growth % 98,740.34 -3.0 44,008.04 1.3 19,727.57 -2.1 101,406.6 10.0 6,267.28 -4.5 110,697.6 10.7 38.84 17.41 19.58 20.06 0.06 67.14 1.03

10000 5000 FY 06 FY 07 FY 08 FY 09 FY 10 Domestic E&P

Integration

Q2FY11 ANALYSIS During Q2FY11, ONGC reported net sales aggregating to ` 14,560.67 crore with a y-o-y growth of 17.9 per cent owing to higher crude sales volume, administered price mechanism (APM), gas price hike and higher net crude realisation due to lower share of the upstream subsidy being borne by the company during the quarter. The subsidy burden for the company during Q2FY11 aggregated to ` 3,019 crore, which accounted for 80.3 per cent of the total contribution by upstream companies as against the higher share of 82-83 per cent of the total contribution borne by ONGC during the previous two quarters.

The net realisations during Q2FY11 stood higher at $62.8/barrel as against $56.4/ barrel during Q2FY10. Correspondingly, the PBDITA as well as the PBDITA margin stood much improved with the former aggregating to ` 5,388.77 crore recording a y-o-y growth of 26.5 per cent. However, the write-off of ` 2,440 crore by the company for dry-well expenditure towards deep-water exploration in KG offshore and

-

Standalone FY10 Y-O-Y growth % 56,785.68 -6.1 34,791.03 4.7 16,767.56 4.0 87,282.6 10.9 4.98 -81.4 71,721.73 13.2 52.57 25.33 20.08 19.91 0 1,718.17 0.92

-

Source: Prowess, CARE Research

Mahanadi offshore impacted the profitability of the company. During Q2FY11, the net profit of the company aggregated to ` 12,621.63 crore with a y-o-y growth of 5.9 per cent.

15000

0

Financial performance analysis –FY1

VISION FY11 & BEYOND

Financial performance analysis – Q2FY11 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT PBDITA margin % PAT margin %

Standalone Q2FY11 y-o-y growth % 14,560.67 17.9 5,388.77 26.5 12,621.63 5.9 79.58 33.98 -

Propel crude oil and gas production by commencing production from the oil fields where discovery has Source: Prowess, CARE Research already been made. In this regard, ONGC plans a fast track appraisal domestic operations during FY11, the and development of blocks such as company plans the development of various Cluster-7, WO Series, B-193, D-1 offshore marginal fields as well as readditional, B-22, North Tapti, etc.

Augmenting production and at the same development projects in major fields.

Through OVL – the company’s whollytime, negating decline from the matured oil fields through technology and capital owned subsidiary – the company would further look to expand E&P operations in intensive improved oil recovery/ other countries with the association of enhanced oil recovery schemes.

Enhance the refining capacity of MRPL global partners, in projects wherever (subsidiary of ONGC) to 15 million required. Further, OVL’s participation in the metric tonne per annum (mmtpa) by Carabobo project is expected to enhance FY12. its 2P reserves by 45 mmt. Going forward, ONGC Energy Centre will continue its the upward movement of crude oil prices holistic research in respect of alternative remains a concern. In case of the same, the energy sources. In this regard, the centre company’s net realisations would stand plans to establish a 100 mw wind farm affected due to the subsidies that are and a photo-voltaic solar plant. required to be provided by the company to For FY11, the company has earmarked the state-run oil marketing companies. capex of ` 26,500 crore for domestic Also, any instances of failures in the operations, ` 8,600 crore for overseas company’s exploration projects would operation and ` 3,200 crore for MRPL. result in lower accretion to reserves and further dent the company’s profitability DRIVING GROWTH margins in the form of a write-off of related Earmarking a budget of ` 26,500 crore for expenses.

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ANALYSING THE TOP 13

#3 INDIAN OIL CORPORATION (IOC)

LEADING WITH A PASSION TO EXCEL India’s flagship national oil company, IOC, with business interests straddling the entire hydrocarbon value chain, believes in leading with a passion to excel. To achieve the next level of growth, IOC is currently forging ahead on a well laid-out roadmap through vertical integration – upstream into oil exploration & production and downstream into petrochemicals – and diversification into natural gas marketing and alternative energy, besides globalisation of its downstream operations.

I

OC was established in 1959 as a result of a merger between Indian Oil Co Ltd and Indian Refineries Ltd. Since then, the company has established itself as India’s premier petroleum company with a presence across various business verticals ie. oil exploration & production, refineries, pipelines and marketing. The company’s product line includes: petrol/gasoline, diesel/gas oil, ATF/jet fuel, kerosene, bulk/ industrial fuels, bitumen, petrochemicals and natural gas. The company’s portfolio of energy brands include: LP Gas, SERVO lubricants, XTRAPREMIUM petrol, XTRAMILE Super Diesel, etc. The company owns and operates 10 of India’s 20 refineries and has the largest network of crude oil, petroleum and product pipeline in the country of 10,899 km with a capacity of 75.26 million metric tonne per annum (MMTA) of oil and 10 million metric standard cubic meters per day of gas. The company’s retail network comprises of 18,643 (47 per cent) outlets. The company has a participating interest in 11 blocks within the country, including two coal bed methane (CBM) blocks and an interest in nine overseas blocks based in Libya, Iran, Yemen, Nigeria, Gabon and Timor-Leste.

ACHIEVEMENTS – FY10 The company’s refining capacity (on a consolidated basis) is 65.7 MMTPA, equivalent to 1.3 million barrels per day.

It accounts for 34.8 per cent of the national refining capacity – the highest in India.

Capacity utilisation of the company’s refineries stood at 102 per cent during

56

FY10, against the average global Year of Incorporation 1959 refinery capacity utilisation of 82 Industry classification Refinery per cent. This is the third Promoter Government of India (GoI) consecutive year in which the Promoters stake % 78.92 company has crossed the 100 365-day Avg. Market 85,928.96 per cent capacity utilisation Capitalisation – ` crore mark.

EV – ` crore 115,292.93 Commissioned India’s largest EPS adjusted – ` 42.10 Naphtha Cracker Complex at β (Beta value) 0.80 Panipat, built at a cost of P/ BV 1.85 ` 14,439 crore.

Crude processing capacity of the Credit Rating CRISIL – AAA CRISIL – PR 1+ Source: Prowess, CARE Research Haldia refinery enhanced from 6 MMTPA to 7.5 MMTPA. Capacity of the Mundra-Panipat pipeline during FY09 to $4.47/barrel during FY10. augmented from 6 to 9 MMTPA in June Correspondingly, the company’s PBDITA 2010. surged by 79.1 per cent on a y-o-y basis Capacity of the Chennai-Trichy-Madurai aggregating to ` 20,327.14 crore. During pipeline augmented from 1.8 to 2.3 the year, the absorption of under-recoveries MMTPA. by the company on sales of sensitive IOC’s research & development division petroleum products declined considerably developed 181 lubes formulations in to ` 15,171.84 crore with a y-o-y FY10, of which 75 per cent were de-growth of 62.4 per cent. However, commercialised; the company’s portfolio higher income, compared on a y-o-y basis includes 215 active patents. on account of lower borrowing cost, inventory gains and foreign exchange gains FINANCIAL PERFORMANCE helped the company post a higher PAT ANALYSIS –FY10 aggregating to ` 10,993.69 crore with a yDuring FY10, IOC reported net sales of o-y growth of 359.3 per cent. ` 2,53,830.23 crore representing a y-o-y FINANCIAL PERFORMANCE de-growth of 12.1 per cent. The company’s ANALYSIS – Q2FY11 throughput during the year declined to 50.7 During Q2FY11, net sales of IOC MMTPA, thus recording a y-o-y de-growth aggregated to ` 77,335.75 crore of 1.3 per cent primarily owing to planned representing a y-o-y growth of 26.8 per revamps and maintenance shutdowns for cent primarily owing to higher crude oil the implementation of various projects, prices. The company reported a refining including those for quality upgradation of throughput of 12.1 mmt during Q2FY11 products. The GRMs of the company with a y-o-y de-growth of 2.2 per cent, however, increased from $3.69/barrel

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while both the domestic marketing sales and pipeline throughput remained flat y-o-y at 15.7 mmt and 15.54 mmt, respectively.

During the quarter, the company reported higher profits as well as profitability owing to higher GRM at $6.63/barrel as against $3.62/barrel during Q2FY10. Furthermore, the subsidy provided by the Government of India (GoI) to the company amounting to ` 7,220 crore during the quarter, on account of under-recoveries during H1FY11 and discounts from upstream oil companies ie. ONGC, GAIL and OIL aggregating to ` 2,140 during Q2FY11, resulted in overrecovery to the company to the tune of ` 3,340 crore during the quarter. During Q2FY11, the company’s PAT aggregated to ` 5,293.95 crore reporting a staggering growth of 17x times as compared to same period the previous year.

VISION FY11 & BEYOND Investments of envisaged in

Rs20,000 crore the company’s

Gross Turnover 5 - year CAGR of 10.30%

` cr

300000 250000 200000 150000 100000

FY 06 FY 07 FY 08 FY 09 FY 10

Sales – Domestic & Export mn.metric tonnes (MMT)

80

5 - year CAGR of 9.1%

70 60 50 40 30 20 10 0

All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

Consolidated FY10 y-o-y growth % 2,53,830.23 -12.1 20,327.14 79.1 10,993.69 359.3 52,462.33 15.3 49,464.76 4.6 68,267.60 18.5 7.06 3.82 13.47 22.10 0.94 9.54 4.45 -

FY 06 FY 07 FY 08 FY 09 FY 10 Domestic

Exports

Standalone FY10 y-o-y growth % 2,69,563.07 -12.3 18,906.55 68.6 10,219.35 246.6 50,552.93 14.9 44,558.55 -0.8 62,849.7 18.8 6.33 3.42 12.77 20.78 0.88 9.63 5.03 -

Source: Prowess, CARE Research

petrochemical segment by FY12.

Grassroot refinery at Paradip having a capacity of 15 MMTPA at an estimated expenditure of ` 29,777 crore to be completed by 201112.

Development of the largest captive plantation for bio-fuel production in India currently underway in Chhattisgarh and Madhya Pradesh.

New pipeline projects at an approximate cost of ` 2,000 crore envisaged for the laying of 2,000 km of pipeline network across India.

Financial performance analysis – Q2FY11 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT PBDITA margin % PAT margin %

Standalone Q2FY11 y-o-y growth % 77,335.75 26.8 7,751.94 430.3 5,293.95 1,761.7 9.91 6.77 -

Source: Prowess, CARE Research

BROADENING HORIZONS

50000 0

Financial performance analysis –FY10

Marketing: IOC, being one of the major players in the marketing of sensitive products like motor spirit (petrol), high speed diesel, LPG and superior kerosene oil, has vastly benefited from the de-regulation of petrol prices from June 2010. CARE Research expects the company to benefit in case of the deregulation of diesel prices by the GoI in the near future, which in turn would result in lowering the under-recoveries to the company. Given the strategic importance of the company, the GoI is expected to continue to support oil marketing companies (OMCs) in terms of the under-recovery-sharing mechanisms and oil bonds/cash issuances to the OMCs. The outlook on the marketing margin for the ensuing years would however, largely be a function of crude oil prices and the timeliness and adequacy of sharing of the under-recoveries.

Refining: With the Indian economy shifting towards stringent emission norms (Euro III and Euro IV), the company will be required to upgrade the refineries to produce cleaner fuels using sour and heavy crudes in order to enhance the gross refining margins (GRMs). Going forward, CARE Research expects that the strong demand from emerging economies such as Asia and Middle-East along with closure of unviable refineries in Europe would provide support to product cracks (GRMs). Additionally, the company’s petrochemical earning is expected to grow owing to the commencement of operations at the company’s Naphtha Cracker Complex at Panipat. Furthermore, the launch of Follow on Public Offer (FPO) (with likely 10 per cent fresh equity infusion and divestment of 10 per cent government’s stake) would facilitate the company to utilise the issue proceeds (only from the 10 per cent equity infusion) towards the capex plans, thereby easing the funding requirements of the company.

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ANALYSING THE TOP 13

#4 BHARAT HEAVY ELECTRICALS LTD (BHEL)

TREADING THE PATH OF EXCELLENCE Electrical equipment giant BHEL has been at the helm of ushering in the indigenous heavy electrical equipment industry in India. With a greater emphasis on private-sector projects and supercritical thermal power projects, the company aims to achieve a turnover of $10-11 billion by FY12. BHEL also plans to deliver 20,000 MW by FY12 by adopting a ‘Capacity and Capability’ enhancement strategy.

B

harat Heavy Electricals Ltd (BHEL) was incorporated in 1964 as a government-owned enterprise to manufacture power plant equipment. Since then, the company has established its domestic market position as the largest supplier of power equipment in India with approximately 74 per cent of the nuclear power generated in the country through the company’s assets.

Presently, BHEL manufactures over 180 products under 30 major product groups catering to industries such as power generation and transmission, transportation, renewable energy, defence, etc. The company’s operations are divided into two segments namely; power and industry, with the former segment contributing approximately 70-75 per cent of the total revenues. The company’s expanse includes 15 manufacturing divisions, two repair units, four power sector regional centres, eight service centres and 15 regional offices.

ACHIEVEMENTS – FY10 Customers in the private sector reposed their confidence in BHEL placing the highest-ever orders aggregating to 14,689 MW of main equipment (in the power division) during FY10.

Achieved an all-time high order booking during a year for hydro sets (including pump and motor) aggregating to 1,739 MW. Signed a memorandum of understanding (MoU) with Mahagenco for setting up a 1,500-1,600 MW capacity plant in Latur.

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Promoted a Joint Year of Incorporation 1964 Venture (JV) company Industry classification Boilers & turbines with Madhya Pradesh Promoter Government of India Power Generating Promoters stake per cent 67.72 Company Ltd 365- day Avg. Market 118,038.11 (MPPGCL) for setting Capitalisation –` crore up a 2x800 MW EV –` crore 107,104.63 Supercritical Thermal EPS adjusted–` 87.26 Power Plant at β (Beta value) 1.01 Khandwa, Madhya P/ BV 6.80 Pradesh on a build, Credit Rating own and operate Source: Prowess, CARE Research basis.

BHEL’s coal-based assets registered a Plant Load Factor Corresponding to the growth in revenues (PLF) of 78.4 per cent higher to the during FY10, the net profit as well as the national average of 77.53 per cent. net profit margin surged on a y-o-y basis Signed an MoU with Toshiba owing to the lower cost of raw material, Corporation, Japan, to establish a JV especially steel, which in turn resulted in company to address the transmission lowering the inventory cost during the year. and distribution business in India and Furthermore, the indigenisation of other mutually agreed countries. technology with respect to transformers, Successfully tested 125 MVAR, 400 kV generators and pulverisers by the company shunt reactor – the only supplier to have further helped lower costs. As on March manufactured, tested and supplied 125 31, 2010, the company’s orderbook MVAR, 400 kV reactor – in the country. measured ` 1,44,300 crore approximating 4.3x the sales volume (on a consolidated FINANCIAL PERFORMANCE basis) during FY10. For the year FY11, the ANALYSIS – FY10 company expects annual order inflows to During FY10, BHEL reported net sales of aggregate Rs 60,000 crore. ` 33,524.51 crore representing y-o-y FINANCIAL PERFORMANCE increase of 24.6 per cent. Notably, during ANALYSIS – Q2FY11 the year, the company received total orders During Q2FY11, the net sales of BHEL aggregating to ` 59,037 crore with the aggregated to ` 8,490.65 crore with a industry segment of the company recording y-o-y growth of 26.2 per cent. Of the same, an all-time high growth of 40 per cent the revenue from company’s power compared y-o-y with orders inflow worth division totaled to ` 6,965 crore (82 per ` 14,366 crore (24.3 per cent of the total cent of the total) with a y-o-y growth of orders received during the year).

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28.3 per cent, while the industry division contributed the rest. The company’s PAT as well as PAT margin also improved significantly with the former accounting for a y-o-y growth of 33.2 per cent aggregating to ` 1,142.28 crore during Q2FY11. The company’s order inflows also improved drastically during the quarter with ` 13,500 crore worth of orders received. Of the same, the power division accounted for ` 11,024 crore of orders (81.7 per cent of the total orders received during the quarter).

VISION FY11 & BEYOND With greater emphasis on private-sector projects and supercritical thermal power projects, the company aims to achieve a turnover in the range of $10-11 billion

by FY12.

By adopting a ‘Capacity and Capability’ enhancement strategy, the company plans to deliver 20,000 MW by FY12.

Capital investment of ` 5,500 crore for capacity expansion of existing products together with the introduction of higher rating nuclear assets, 765 kV transformers and other associated transmission and

Orders received ` cr

60000 50000 40000 30000 20000 10000 0

FY 06 FY 07 FY 08 FY 09 FY 10

Turnover ` cr

35000 30000 25000 20000 15000 10000 5000 0

FY 06 FY 07 FY 08 FY 09 FY 10

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin per cent PAT Margin per cent ROCE per cent RONW per cent Debt/Equity - times Interest Coverage-times Asset Turnover -times

Consolidated FY10 Y-O-Y growth % 33,524.51 24.6 7,157.04 35.2 4,326.92 38.9 15,895.98 23.0 128.04 -13.9 4,163.55 44.7 18.47 11.17 11.65 11.76 0.01 110.75 9.92 -

Standalone FY10 Y-O-Y growth % 33,226.84 24.8 7,121.36 34.6 4,310.64 37.4 15,917.36 23.0 122.19 -14.9 3,965.45 47.8 18.53 11.22 11.62 11.73 0.01 120.74 10.41 -

Source: Prowess, CARE Research

distribution equipment.

Financial performance analysis – Q2FY11 Inorganic growth in nuclear All figures in ` crore unless specified power, transmission, Standalone transportation and Parameters Q2FY11 y-o-y growth % renewable energy to Net Sales 8,490.65 26.2 ensure diversification.

PBDITA 1,798.15 26.0 To continue with the PAT 1,142.28 33.2 implementation of SAP/ PBDITA margin % 20.77 ERP across the country in areas spanning the PAT margin % 13.20 Source: Prowess, CARE Research technical, commercial and manpower needs of the organisation. country or in other words, source Increased focus on the development of equipment indigenously for all future power low carbon path technologies such as projects of 4,000 MW and above, has ultra supercritical, integrated gasification darkened the future prospects of Chinese combined cycle (IGCC), solar power, power equipment manufacturers, which etc.; the company is also expected to stood as major competitors to BHEL, play a key role in the development and particularly in the private sector. With the deployment of advanced ultra Indian power sector likely to witness supercritical power plant under the massive capacity additions, approximating proposed National Mission for Clean 150,000 MW, over the next decade, a few Coal (Carbon) Technologies. private Indian power equipment Increase in R&D spend to at least ` 900 manufacturing companies have either setcrore by FY12. up or are initiating the process of setting up local manufacturing facilities in collaboration ENCASHING OPPORTUNITIES with leading international players. However, CARE Research expects BHEL’s monopoly BHEL would be in an advantageous position in the power equipment manufacturing as compared to its domestic competitors business in India to continue with once the full indigenisation of supercritical approximately 70-75 per cent of the orders boiler, turbine & generator (BTG) is being received from the Central/State achieved, apart from enjoying the governments. Furthermore, the Central economies of scale due to the sizable Electricity Authority’s (CEA’s) guidelines operations. Going forward, CARE Research directing all the Central and State expects the company to face an adverse government-controlled power producers impact on margins owing to the rising prices to make it mandatory for overseas suppliers of raw material, especially steel, during to set up manufacturing facilities in the FY11.

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ANALYSING THE TOP 13

#5 TATA STEEL LTD (TSL)

THRUSTING ON RAW MATERIAL SECURITY Tata Steel, the first integrated steel plant in Asia, is the world’s second-most geographically diversified steel producer.

By ramping up its production capacity of flat steel items, the steel major aims to enhance its production capacity from the existing 30 mn tonne in excess of 50 mn tonne by CY2015. Along with capacity expansion, Tata Steel has reinforced its strategy towards greater raw material security in order to remain insulated from swings in raw materials prices.

T

ata Steel (TSL) was originally incorporated as ‘The Tata Iron and Steel Company Limited’ on August 26, 1907 as a public limited company. The company was established by Jamsetji N Tata, the founder of the Tata Group. The name of the company was changed to ‘Tata Steel Limited’ with effect from August 12, 2005. In CY2009, Tata Steel was the seventh largest crude steel producer globally.

TSL manufactures a diversified portfolio of steel products, with a product range that includes flat products and long products, as well as some non-steel products such as ferro alloys and minerals, tubes and bearings. The company, through its Indian operations, is the leading manufacturer of ferro chrome and steel wires in India and a leading producer of chrome ore internationally.

ACHIEVEMENTS – FY10 Best ever hot metal (7.23 mn tonne), crude steel (6.56 mn tonne) and saleable steel (6.44 mn tonne) production.

Newly-commissioned Blast Furnace (‘H’ furnace), in its very first year of operation, achieved a production level of 3.07 mn tonne running much above its rated capacity of 2.5 mn tonne per annum (MTPA).

One of the steel melting shops (LD2 shop #2 & slab caster) achieved the best-ever slab production of 3.7 mn

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tonne (previous best Year of Incorporation 1907 3.51 mn tonne in FY09).

Industry classification Steel Sinter plant produced Promoter Tata Group 7.6 mn tonne sinter Promoters stake % 32.48 which is the best ever 365- day Avg. Market Capitalisation – ` crore 51,984.59 (previous best 6.5 mn EV – ` crore 78,134.67 tonne in FY09). Highest EPS adjusted – ` 56.88 ever solid waste utilisation β (Beta value) 1.45 at 90 per cent (previous P/ BV 1.47 best 89.61 per cent) was Credit Rating CARE AA+ achieved.

In line with the company’s expansion plans, the ‘C’ blast furnace half of the year which resulted in significant with a capacity enhancement from 0.4 losses. However, with improvement in the MTPA to 0.7 MTPA was commissioned market conditions, Tata Steel Europe in September 2009. registered a significant turnaround in the Chrome alloys exports (including charge second half of the year with a PBDITA of chrome from Tata Steel KZN) touched around £297 million as compared to a an all-time high and the division recorded PBDITA loss of £476 million in the first half its highest-ever global market share of of the year. six per cent in FY10.

Apart from Tata Steel India, all other Manganese alloys sales recorded an allsteel units had a lower volume of sales time high in FY10 and the company during FY10 as compared to FY09. The gained the status of being the largest company witnessed erosion in the profit producer of manganese alloys in India. margins with the PBDITA margin & PAT margins at 7.73 per cent & -1.99 per cent, FINANCIAL PERFORMANCE respectively, during FY10, as compared to ANALYSIS – FY10 the corresponding margins of 10.03 per Consolidated: During FY10, TSL reported cent and 3.3 per cent, respectively, during net sales of ` 102,345 crore representing a FY09. y-o-y decline of 31 per cent. During the Standalone: During FY10, TSL reported same period, PBDITA declined by 45 per net sales of ` 24,941 crore posting a cent to ` 8,224 crore. The economic marginal increase of about three per cent downturn severely impacted the European on a y-o-y basis primarily led by increased operations of the company during the first volumes. During the same period, the

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ANALYSING THE TOP 13

company recorded a PAT of ` 5,047 crore (FY09, ` 5,202 crore).

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 During Q2FY11, TSL reported net sales of ` 7,107 crore representing a y-o-y increase of about 25 per cent. This was mainly on account of an increase in sales volumes.

PAT increased at a much higher rate of 129 per cent mainly on account of profit on the sale of investments (in group companies like Tata Motors, etc.). Decline in raw material costs and a marginal improvement in realisations also contributed in improving the company’s margins.

VISION FY11 & BEYOND The company is in the process of increasing its crude steel capacity to 9.7 MTPA at its Jamshedpur Works by the end of FY12. The company further plans to increase its capacity significantly

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

Total income 160000 140000 120000 100000 80000 60000 40000 20000 FY 06 FY 07 FY 08 FY 09 FY 10

PAT ` cr

14000 12000 10000 8000 6000 4000 2000 0 -2000 -4000 FY 06 FY 07 FY 08 FY 09 FY 10

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Standalone FY10 y-o-y growth % 24,940.65 2.43 10,272.44 4.75 5,046.80 (2.98) 37,168.75 23.17 25,239.20 (6.33) 16,006.03 10.52 36.63 17.99 8.42 14.92 0.68 4.64 1.76 -

Source: Prowess, CARE Research

` cr

0

Consolidated FY10 y-o-y growth % 102,345.44 (30.58) 8,223.73 (44.93) -2,120.84 (143.74) 23,020.84 (16.94) 53,117.81 (11.35) 60,337.65 (0.55) 7.73 -1.99 -0.85 -2.21 2.31 1.44 1.72 -

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through both brownfield and Financial performance analysis – Q2FY11 greenfield projects.

All figures in ` crore unless specified Along with capacity expansion, Tata Standalone Steel has reinforced its strategy Parameters Q2FY11 Y-O-Y growth % towards greater raw material Net Sales 7,106.75 24.85 security in order to remain insulated PBDITA 3,361.96 68.23 from swings in prices of raw PAT 2,065.13 128.71 materials like iron ore and coking PBDITA margin % 42.88 coal. In the period of next five years, PAT margin % 26.34 the company has set a target to Source: Prowess, CARE Research achieve 50 per cent raw material security on a consolidated basis.

Focus on initiatives like ‘Weathering the BANKING ON CAPEX The industrialisation drive has made Asia Storm’ for the alignment of production the world’s highest steel-consuming region. with demand and long-term business TSL, with its growth strategy, is focussing on restructuring through the ‘Fit for the capturing market in the Asia-Pacific region Future’ programme. These initiatives along with Europe. From the existing have yielded benefits of GBP 1 bn in capacity of about 30 mn tonne, the company FY10 and will be continued to strengthen has embarked on a journey to expand its the company’s business.

In order to improve its customer capacity in excess of 50 mn tonne by services, the company has undertaken CY2015. With its superior Indian operations programmes like ‘Customer First’ and and raw material integration, TSL is likely to supply chain improvement, which will benefit the most from the robust domestic also help the company reduce its steel demand. To capture the growing working capital requirement. market in India, the company has earmarked The company targets to reduce its total a massive expansion plan through greenfield debt to $9.2 billion (H1FY11 $11.79 steel projects in Jharkhand, Chhattisgarh, billion) in the near term; thereby Orissa and Karnataka. However, delay in reducing its net debt/equity ratio at one completion of these projects may have an times as compared to 1.5 times in the impact on the growth plan. The company first half of FY11. has made strategic investments in different In order to capture the market share in parts of the globe for assuring raw materials high growth areas like PVC coating security mainly for its European operations system, etc., the company is focussing – coking coal (Australia, Mozambique) and on various R&D activities in product iron ore (Canada, Ivory Coast), which is development and the marketing of these expected to help the company improve products. profitability in future.

ANALYSING THE TOP 13

#6 ITC LTD

CREATING EPICENTRES OF GROWTH Having travelled through the most challenging as well as opportune times, ITC’s journey of 100 years has been very inspiring. ITC is acknowledged as a global exemplar in sustainable business practices infusing company with a unique source of competitive advantage as it marches into the future. ITC’s diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

H

aving completed 100 years on August 24, 2010, ITC has been offering innovative products & services to its customers since its inception. ITC’s long journey had a small beginning, way back in 1910, when the British-owned ‘Imperial Tobacco Company’ set foot in Calcutta. With continuous focus on exploration, improvisation and innovation, the company was transformed from a single-product company to one of India’s largest multi-business corporate enterprises over a period of 10 decades.

ITC is one of the largest conglomerate business houses in India with diversified presence across various segments namely; fast moving consumer goods (FMCG), paper & packaging, hotels, agri-business and information technology (IT). ITC has established a leadership position in the domestic market in FMCG, IT, paperboards and hospitality industries, with a market capitalisation of over ` 100,000 crore.

ITC is the leader in the domestic cigarettes market, with a market share in excess of 75 per cent by value, which contributed to about 65 per cent of its revenue in FY10. ITC’s non-cigarette business contributed to 35 per cent of its total net sales, with a major contribution from its agri products and paperboards business.

In its 100th year : ITC is present in a range of business sectors such as FMCG, Paper,

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Paperboards & Year of Incorporation 1910 Packaging, Hotels, and Industry classification FMCG, Hotels, Agricultural Agri-business. In the products, Information Technology, FMCG space, this paperboards includes segments such Promoter I.T.C. (F) Group as cigarettes, branded Promoters stake % NA food; personal care 365- day Avg. Market 112,804.51 products; lifestyle Capitalisation –` crore apparel and accessories; EV –` crore 99,456.75 education & stationery EPS adjusted–` 10.64 products; incense sticks β (Beta value) 0.47 and safety matches. This P/ BV 4.67 wide range will further Credit Rating CRISIL AAA CRISIL P1+ stand expanded over ICRA A1+ time.

Source: Prowess, CARE Research This products and services portfolio is This rich repertoire of businesses, represented by over 50 energetic brands and social investments has created brands in a range of more than 650 assets in all sectors of the Indian economy, Stock Keeping Units (SKUs).

The company’s world-class namely, agriculture, industry and services. manufacturing assets comprise 18 FINANCIAL PERFORMANCE owned factories spread across the ANALYSIS 2010 country. More than 195 outsourced On a consolidated basis, ITC registered a factories are also involved in growth in net sales of 33.94 per cent to manufacturing activities.

ITC’s businesses export products to ` 19,549.89 crore in FY10 vis-à-vis FY09. over 90 countries across the world.

The robust growth was mainly driven by The Company’s wholly owned the cigarette division, followed by the subsidiary, ITC Infotech, runs operations paperboard, packaging and FMCG divisions. in the 4 continents of North America, The hotel division continued with its Europe, Africa and Asia. subdued performance. The cigarette The company’s e-Choupals benefit over division accounted for 65 per cent of the 4 million farmers in nearly 40,000 company’s net turnover in FY10. villages.

Furthermore, on a consolidated basis,

ANALYSING THE TOP 13

PBDITA increased by 13.72 per cent to ` 6,974.49 crore, while PAT at ` 4,211.38 crore registered a growth of 8.48 per cent.

With healthy tangible net worth coupled with low debt, the gearing levels are low.

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 ITC reported positive Q2FY11 performance with a 16.85 per cent y-o-y rise in net sales and a 23.45 per cent y-o-y increase in PAT. The growth drivers were an increase in cigarettes, FMCG, agri and paper & packaging divisions.

VISION FY11 FMCG and personal care products: ITC will continue making significant investments in scaling up its trade marketing and distribution infrastructure and is expected to help strengthen the product portfolio and its reach.

Hotels: In view of the positive long-term outlook for the Indian hotel industry, ITC continues to sustain its aggressive investment-led growth strategy. The construction activity of the new super luxury properties at Chennai and Kolkata

Turnover

` cr

20000 16000 12000 8000 4000 0

2006 2007 2008 2009 2010

Turnover by business segments - % 3.45% 13.86%

7.79% 9.09%

65.82%

Agri Business Hotels

66

Fmcg - Cigarettes Fmcg - Others Paperboards, Paper & Packaging

Financial performance analysis –FY10 (` crore)

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

Consolidated FY10 y-o-y growth % 19,549.89 33.94 6,974.49 13.72 4,211.38 8.48 14,458.31 4.30 110.77 (0.76) 9,799.15 6.72 24.53 14.81 29.35 29.46 0.01 85.88 2.93

Standalone FY10 y-o-y growth % 18,627.47 33.24 6,708.74 12.98 4,061.6 7.94 14,064.38 3.29 107.71 (0.70) 9,151.39 6.65 24.79 15.01 28.97 29.09 0.01 83.32 2.99

Source: Prowess, CARE Research

are progressing satisfactorily. In Financial performace analysis –Q2 FY11 addition, several new projects (` crore) including joint ventures and Standalone management contracts are on the Parameters Q2FY11 y-o-y growth % anvil to rapidly scale-up the Net Sales 5,147.18 16.85 business across all the four market PBDITA 1,999.38 20.55 segments.

PAT 1,246.74 23.45 Branded packaged food: ITC is PBDITA margin % 37.93 investing in the manufacturing and distribution infrastructure to PAT margin % 23.65 Source: Prowess, CARE Research support large-scale operations in the wake of growing volumes.

ITC continues to focus on supply chain through a mix of debt and internal accruals, improvements to enhance product the benefits will accrue to the company in freshness, market servicing and margins. the near future.

Education/stationery: The recent SHAPING THE ITC OF enactment of the Right to Education Bill TOMORROW coupled with massive government and ITC’s portfolio of businesses based on private investments in the education proven core competencies, world-class sector will further accelerate growth in human capital, strategic assets such as the education and stationery supplies power brands, trade marketing & sectors. ITC, with its widening, highdistribution infrastructure, deep linkages in quality product range and excellent rural India, its strong balance sheet, the distribution infrastructure, is poised R&D infrastructure, and the unique amalgam advantageously to respond to this of its super-ordinate vision, enduring values opportunity. and competitive vitality constitute a robust TAPPING LUCRATIVE and formidable foundation that lend abiding AVENUES strength to deal effectively with the Given the dominant position of its products challenges and opportunities of tomorrow.

The fast moving consumer goods sector in the domestic market and presence in in India is expected to triple in size to over international market supported by a strong ` 3,55,000 crore by 2018. Foods, The financial profile and its well-established company’s investments in FMCG are marketing and distribution infrastructure, targeted to serve these growing markets. An the business prospect of the company investment opportunity of upto ` 8,000 appears to be encouraging. With the crore over the next 7 to 10 years is expected commencement of the capex undertaken for ITC to drive growth in this sector. by the company in its hotel division, funded

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ANALYSING THE TOP 13

#7 STEEL AUTHORITY OF INDIA LTD (SAIL)

MAINTAINING A STEEL EDGE India’s leading steel-making company, SAIL, is the country’s second-largest producer of iron ore and has the country’s second-largest mines network. These attributes give the company a distinct competitive edge over its peers in terms of captive availability of iron ore, limestone and dolomite. In order to continue to stay ahead of its rivals, SAIL is currently undertaking a massive modernisation-cum-expansion plan to increase steel production to about 24 mn tonnes by FY13.

S

teel Authority of India Ltd (SAIL), incorporated in 1954, was granted ‘Maharatna’ status by the Government of India (GoI). SAIL has been the leading steel-making company in India. Among global crude steel producers, SAIL ranked 16th in CY2009. It is a fully integrated steel manufacturer, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and selling in the export markets. SAIL owns and operates five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, along with three special steel plants – Alloy Steel Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Plant. The company has self-sufficiency in iron ore and operates one of the largest mines networks in the country. SAIL’s captive power plants take care of about 70 per cent of its total power requirement.

SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. It exports steel to as many as 20 countries including the European Union (EU), Middle East and the South-East Asian & neighbouring countries.

ACHIEVEMENTS – FY10 Produced 14.5 mn tonne of hot metal, 13.5 mn tonne of crude steel and 12.6 mn tonne of saleable steel.

The share of value-added steel in overall production grew to almost 38 per cent as compared to 30 per cent in the

previous year and record Year of Incorporation 1954 production of special and Industry classification Steel value-added steel – a growth Promoter Government of India of 24 per cent.

(GoI) Under saleable steel Promoters stake % 85.82% production, the share of flat 365-day Avg. Market 86,578.46 products basket dominated Capitalisation –` crore with plates contributing to EV – ` crore 97,253.11 20.5 per cent, HR coils/ EPS adjusted – ` 16.17 sheets at 24.1 per cent and β (Beta value) 1.32 CR coils/sheets at 8.7 per P/ BV 2.26 cent.

Credit Rating FITCH AAA (ind) Highest-ever labour productivity of 226 tonne/ man/year. added products, almost 38 per cent of the Best-ever sales of long products at 4.45 total saleable steel, reduction in coke rate mn tonne, growth of three per cent and decline in input prices of imported over the last year. coking coal. The company posted a drop of Improvement in the specific consumption 15 per cent in raw material cost and 36 per at 6.72 Gcal/tcs (previous year, it was cent in employee cost on a y-o-y basis.

6.74 Gcal/tcs).

Consequently, the company witnessed an SAIL achieved the best-ever coke rate of increase in PBDITA by 11.3 per cent, with 517 kg/thm, improvement of one per the PBDITA margin improving to 26.8 per cent over the previous year. cent in FY10 as compared to 21.1 per cent Erstwhile Bharat Refractories Ltd (BRL) during FY09. PAT grew by almost 10 per merged with SAIL in July 2009 and was cent on a y-o-y basis and the PAT margin renamed SAIL Refractory Unit (SRU). also improved to 14.6 per cent as compared Cost reduction initiatives resulted in to 11.7 per cent in FY09. The total debt savings of about ` 1,082 crore. increased by 115 per cent on a y-o-y basis on account of additional borrowings for FINANCIAL PERFORMANCE ongoing expansions as well as increase in ANALYSIS – FY10 working capital requirements. This increased During FY10, SAIL reported a decline in net the debt-equity ratio from 0.28 times in sales by six per cent mainly on account of FY09 to 0.5 times in FY10. lower average steel prices. Even though the FINANCIAL PERFORMANCE sales volume increased by seven per cent, ANALYSIS –Q2FY11 the slow pace in recovery of steel prices in SAIL reported a decent eight per cent y-o-y FY10 affected the net sales. growth in net sales during Q2FY11.

SAIL reported improved sales of value-

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71

ANALYSING THE TOP 13

However, the company reported a decline in PBDITA by almost 30 per cent during Q2FY11. Huge increase in input cost impacted profit levels. Rise in input cost was mainly on account of higher cost of imported coking coal. Also, the revised wage structure further pulled down profits.

PAT declined by 34 per cent in Q2FY11, on account of a significant drop in PBDITA and an increase in interest cost and depreciation.

VISION FY11 & BEYOND SAIL is undertaking a massive modernisation-cum-expansion plan to increase the capacity of crude steel production to about 24 mn tonne in FY13 from the current level of 13.5 mn tonne. SAIL has proposed a capital expenditure of about ` 12,225 crore for FY11.

SAIL is also planning to enhance its captive power generation capacity to about 1,900 MW to maintain the ratio of captive power to the total power requirement at the current level of 70 per cent.

To become self-reliant in the area of coking coal, SAIL is scouting for coal

Steel Production mn tonnes

14 12 10 7 6 4 2 0

FY 06 FY 07 FY 08 FY 09 FY 10 Saleable steel

Special steel

Net Sales

` cr

50000 40000 30000 20000 10000 0 FY 06 FY 07 FY 08 FY 09 FY 10

72

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

Consolidated FY10 y-o-y growth % 40,627.34 (6.26) 12,582.04 11.28 6,846.46 9.62 33,738.97 18.61 16,815.19 114.82 30,491.17 48.35 26.83 14.60 15.54 21.28 0.50 13.98 1.73 -

Standalone FY10 y-o-y growth % 40,595.90 (6.25) 12,260.25 10.79 6,754.37 9.46 33,316.70 18.36 15,688.62 134.15 28,641.41 51.90 26.19 14.43 16.35 21.28 0.47 14.96 1.86 -

Source: Prowess, CARE Research

assets abroad on its own and also Financial performance analysis –Q2FY11 through JV, International Coal All figures in ` crore unless specified Ventures Ltd (ICVL).

Standalone Signed memorandums of Parameters Q2FY11 y-o-y growth % understanding (MoUs) with Net Sales 10,806.17 7.68 POSCO for exploring FINEX PBDITA 2,079.26 (29.66) technology and feasibility of iron PAT 1,090.01 (34.47) making technology mark3 (ITmk3) PBDITA margin % 18.58 technology to produce iron ore PAT margin % 9.74 nuggets with Kobe Steel Ltd. Source: Prowess, CARE Research Development of Sitanala coal block at IISCO Steel Plant and revival of Jagdishpur unit of SAIL with an estimated and other value-added steel products. outlay of about ` 3,350 crore.

Among steel producers in the country, Improvement in utilisation of fines to SAIL has the largest marketing network build beneficiation facilities like 4 mnwhich will help it to tap the potential rural tonne capacity pellet plant. market. With the diversified product mix and multi-location production units, SAIL is INCREASING FOCUS ON able to cater to the entire steel requirement VALUE-ADDED PRODUCTS across end-user segments and for Finished steel consumption in India grew consumers throughout the length and by eight per cent in FY10. Going breadth of the country. Emphasis on cost forward, domestic steel consumption is reduction and process improvement expected to grow at a compounded through various measures such as annual growth rate (CAGR) of 9.2 per optimisation of coal blend, reduction in cent in the period FY11-15. Fortunes of specific energy consumption & coke rate, the steel industry are expected to higher BF productivity, etc. will continue to improve with demand picking up from benefit the company. the end-user industries mainly the With plans in place to expand the mining construction, pipe & tube manufacturing operations, SAIL will continue to be selfand automobiles sectors, etc. Enhanced sufficient in iron ore. However, to a large focus of GoI on infrastructure spending extent, SAIL is dependent on the market is expected to spur the demand growth purchase for a key input – coking coal. of steel. This will provide a good Moreover, the recent international practice opportunity for SAIL, which has to purchase coking coal through quarterly ambitious expansion plans. SAIL will be price contracts exposes the company to benefited the most with its constant face volatility in input prices, which still focus on production of auto-grade steel remains a concern.

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ANALYSING THE TOP 13

#8 TATA MOTORS LTD

REINVENTING WHEELS OF FORTUNE Building on the strong foundation of innovation, Tata Motors has been setting inspirational benchmarks since its inception. With a strong emphasis on environmental-friendly products & processes, the company is tapping newer avenues to develop ‘technology for tomorrow’. Reinventing wheels of fortune, the company is well on its way to be the global automotive frontier.

I

ncorporated in 1945, Tata Motors (formerly known as TATA Engineering and Locomotive Company [TELCO]) is part of the Tata Group. Over the years, Tata Motors has moved from being a steam locomotive manufacture to a commercial vehicle manufacturer since 1954 and a passenger vehicle manufacturer since 1991. Tata Motors is the largest automobile manufacturer by revenue in India and a market leader in the commercial vehicle segment. By volumes, Tata Motors is the fourth-largest truck manufacturer in the world in addition to it being the largest commercial vehicle manufacturer in India and among the top three passenger vehicle manufacturers in India.

ACHIEVEMENTS – FY10 AND H1FY11 The company launched a new heavy truck range Prima in May 2009 and also a range of buses through the Prima platform.

The company entered the combat vehicles sector after launching a mineprotected vehicle, as part of its strategy to enhance the scope of its defence business right up to frontline combat vehicles.

The company commissioned its new manufacturing plant in Sanand, Gujarat, with a capacity to manufacture 2,50,000 Nano’s per annum ahead of schedule.

FINANCIAL PERFORMANCE ANALYSIS – FY10

liquidity environment, coupled with government stimulus resulted in higher sales. The total vehicles sold during FY10 increased by 32 per cent to 668 thousand units from 506 thousand units in FY09.

Increase in sales on a consolidated basis is attributable to growth in revenue, both at Tata Motors and Jaguar Land Rover (JLR) business on the back of robust growth in automotive volumes. Higher volumes backed by lower commodity prices along with low interest rates led to an improvement in the profitability of the company.

Promoter Promoters stake as on September 30, 2010 365- day Avg. Market Capitalisation –` crore EV –` crore EPS adjusted–` β (Beta value) P/ BV Credit Rating

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 Tata Motors reported a healthy Q2FY11 performance with a 44.20 per cent y-o-y rise in net sales. The growth was primarily driven by a macroeconomic condition and

Automobile Volumes (Tata Motors) In Units

800000

53,139.88 61.04 1.16 4.48 CARE AA-

the availability of financing. Cost pressures on account of higher raw material prices resulted in a y-o-y decline in PBDITA and PBIDTA margin. Going forward, the PBDITA margins are likely to improve on the back of increase in prices and aggressive cost-reduction measures that the company plans to undertake.

Turnover / Gross Sales ` cr

100000

40000

200000

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45,761.83

60000

400000

0

1945 Automobiles – Commercial and passenger Vehicles Tata Group 37.02%

80000

600000

Increase in demand for vehicles on the back of improved economic condition, benign

74

Year of Incorporation Industry classification

20000 FY 06 FY 07 FY 08 FY 09 FY 10

0

FY 06 FY 07 FY 08 FY 09 FY 10

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover –times

Consolidated FY10 Y-O-Y growth % 95,678.72 27.74 9,536.11 304.01 2,516.89 N.M.* 8,397.63 41.36 35,192.36 0.62 41,929.20 6.28 9.13 -2.41 -10.21 -30.06 -4.29 -2.49 -2.43 --

Standalone FY10 Y-O-Y growth % 35,149.34 37.11 4,832.99 81.95 2,240.08 120.36 14,965.47 20.75 16,625.91 26.28 16,436.04 12.64 11.97 -5.55 -9.52 -16.33 -1.11 -3.84 -2.45 --

*N.M. – Not MeaningfulSource: Prowess, CARE Research

VISION FY11 & BEYOND Tata Motors plans to aggressively implement cost-reduction efforts to offset increase in input costs.

The company also plans to pursue opportunities in the international markets as they recover from the downturn.

JLR to focus on increasing its presence in

the emerging markets such as China and the Middle East along with launching new products and variants and new technology initiatives for emission-level reductions.

RIDING GROWTH WAVE Tata Motors has been the market leader in

Financial performance analysis – Q2FY11 All figures in ` crore unless specified

Standalone Q2FY11 y-o-y growth % Net Sales 11,504.07 44.20 PBDITA 1,175.97 -19.23 PAT 432.07 -40.66 PBDITA margin % 10.15 -PAT margin % 3.73 -Parameters

Source: Prowess, CARE Research

the commercial vehicle segment with a market share of over 60 per cent in both, the domestic and exports markets.

The company is also a significant player in the passenger vehicle segment. CARE Research foresees a healthy demand outlook for the automobile sector on the back of rising income levels and lower penetration of automobiles, which augurs well for the company’s growth.

Furthermore, JLR is also expected to maintain a healthy profitability on the back of new product launches, favourable change in product & market mix and cost reduction measures.

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ANALYSING THE TOP 13

#9 BHARAT PETROLEUM CORPORATION LTD (BPCL)

REFINING MARGINS FOR SUSTAINED GROWTH The core strength of Bharat Petroleum Corporation has always been the ardent pursuit of qualitative excellence for maximisation of customer satisfaction. Thus, B PCL has today become one of the most formidable names in the petroleum industry. Going forward, the company plans to become a leading player in the upstream sector by increasing its exploration portfolio and acquiring producing fields.

B

harat Petroleum Corporation Ltd (BPCL) was incorporated in November 1952 by Shell Petroleum Company. In 1975, the Government of India (GoI) acquired a 100 per cent equity stake in the company.

Presently, GoI holds 54.93 per cent stake in it.

BPCL is a leading player in the petroleum sector with an aggregate refining capacity of 21.5 million tonne per annum (MTPA) (Mumbai Refinery – 12 MTPA and Kochi Refinery – 9.5 MTPA) and retail outlets numbering to over 8,600 as on March 31, 2010. Furthermore, it is the largest supplier of LPG cylinders in the country catering to approximately 28.30 million consumers in FY10.

RESEARCH & DEVELOPMENT (R&D) Research and development (R&D) is an integral part of BPCL’s strategy for achieving sustainable growth and profitability. To enhance R&D capabilities, BPCL is continuously strengthening the infrastructure and manpower resources at its Corporate R&D Centre, Greater Noida, Uttar Pradesh as well as at its Product & Application Development Centre, Sewree, Mumbai and the R&D Centre at Kochi Refinery.

BPCL’s initiatives in the area of R&D are discussed separately in the MD&A.

NON-CONVENTIONAL ENERGY INITIATIVES BPCL has placed strong emphasis on the development of non-conventional/

Sales volume

Gross Refinery Margin (GRM)

Million Metric Tonnes

US$/bbl (Mumbai refinery)

30

5

25

4

20 3

15 10

2

5

1

0

76

FY 06 FY 07 FY 08 FY 09 FY 10

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0

FY 06 FY 07 FY 08 FY 09 FY 10

Year of Incorporation Industry classification Promoter Promoters stake % 365- day Avg. Market Capitalisation –` crore EV –` Crore EPS adjusted–` β (Beta value) P/ BV Credit Rating

1952 Refinery Government of India 54.93% 22,812.23 40,504.00 42.53 0.73 1.87 CARE AAA PR1+ CRISIL AAA P1+(Negative outlook)

Source: Prowess, CARE Research

renewable sources of energy. A number of initiatives have been undertaken in tapping non-conventional energy sources like biodiesel, wind energy, solar energy and fuel cells in order to develop alternate sources of energy.

BPCL has focussed on promoting green fuels with a view to protect the environment by reducing pollution and dependency on imported fuels. Tracts of unproductive, barren and non-cultivable fallow land are being used for the growth of Jatropha and Karanj plants. The plantations would contribute towards environment protection, prevention of soil erosion and provide feedstock for manufacturing bio-diesel.

BPCL has been one of the first energy companies to successfully generate power

through windmills. Windmills with a capacity of 5 MW (four windmills of 1.25 MW each) in the hilly range of Kappatguda in Karnataka are currently in operation and the power produced by them is being sold to Karnataka State Electricity grid. BPCL has plans to make further investments in windmills in the states of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh.

Work is going on for the setting up of a 1 MW capacity grid connected solar farm at BPCL’s LPG bottling plant in Lalru, Punjab.

As the power generated from the plant is proposed to be sold to the Punjab State Electricity Board, BPCL has signed a Power Purchase Agreement with the Board. The farm, which will be spread across an area of 4 acre (1.62 hectare), has been conceived to avail of carbon emission credits under the Kyoto protocol.

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage times Asset Turnover -times

Consolidated FY10 Y-O-Y growth % 1,23,582.67 (9.51) 5,312.68 10.75 1,719.98 137.52 14,800.42 6.24 26,662.36 10.06 24,957.06 19.62 3.90 1.26 6.74 12.68 1.80 3.53 5.84

-

Standalone FY10 Y-O-Y growth % 1,22,058.55 (9.75) 4,577.13 13.18 1,537.53 108.96 13,086.71 7.90 22,165.48 4.76 16,187.10 15.60 3.42 1.15 7.38 12.63 1.69 3.48 8.71

-

Source: Prowess, CARE Research

ACHIEVEMENTS – FY10 Market sales volume touched a level of 27.70 Million Metric Tonne (MMT) in FY10, as compared to 27.16 MMT in FY09 demonstrating a growth of 1.99 per cent over the previous year.

A new refinery of 6 MTPA capacity at Bina in Madhya Pradesh, which was being executed by Bharat Oman Refineries Ltd (BORL), a company promoted by BPCL along with Oman Oil Company (OOCL), has been completed.

The crude oil receipt facilities at Vadinar and crude oil tankages & intermediate product tankages at the Bina refinery site have been commissioned. The VadinarBina crude oil pipeline has been commissioned and crude oil has been received in refinery tanks.

- A fuel quality upgrade project was commissioned in January 2010 at Mumbai Refinery costing ` 390 crore for improving the quality of motor spirit (MS) and high speed diesel (HSD) to meet Euro IV equivalent norms.

FINANCIAL PERFORMANCE ANALYSIS – FY10 BPCL reported a decline in net sales by 9.51 per cent to ` 1,23,582.67 crore at consolidated level mainly due to drop in realisations as volumes were up by 1.99 per cent to 27.70 MMT in FY10. The profitability of the company improved by 137 per cent to ` 1719.98 crore due to the decline in interest cost, lower depreciation charge and increase in other income. Interest costs for FY10 declined due to the refinancing of

short-term loans by long-term loans leading to lower interest cost.

Financial performance analysis – Q2FY11 All figures in ` crore unless specified

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 During Q2FY11, BPCL reported a 30 per cent increase in sales to ` 35,434.77 crore, mainly on account of higher throughput and receipt of cash compensation of ` 2,940 crore from the Government of India (GoI).

The company also received an upstream discount of ` 820 crore, in respect of crude oil/ LPG/ superior kerosene oil (SKO) purchased from upstream companies, which has been accounted during the quarter. BPCL, during Q2FY11, reported a PAT of ` 2,142.22 crore as against a loss of ` 158.77 crore in Q2FY10. Average gross refining margins (GRM) during Q2FY11 stood at $2.8 per barrel compared to $3.57 per barrel during Q2FY10.

VISION FY11 & BEYOND BPCL plans to become a leading player in the upstream sector by increasing its exploration portfolio and acquiring producing fields.

The company also plans to enhance focus on research and development activities and international business.

DE-REGULATION EFFECT Marketing: BPCL, being one of the major players in the marketing of sensitive products like motor spirit (petrol), high speed diesel (HSD), LPG and SKO in the country, plays a very

Standalone Q2FY11 y-o-y growth % Net Sales 35,434.77 30.79 PBDITA 3,020.09 623.70 PAT 2,142.22 NM PBDITA margin % 8.40 PAT margin % 5.96 Parameters

Source: Prowess, CARE Research

important role in the GoI’s socioeconomic policies. Due to this strategic importance, GoI is expected to continue to support the oil marketing companies in terms of the under-recovery sharing mechanisms and oil bonds issued by the government to the OMCs. Refining: India is increasingly shifting towards stringent emission norms (Euro III and Euro IV). Players will be required to upgrade their refineries to produce cleaner fuels using sour and heavy crudes in order to enhance GRMs. It is widely believed that going forward, strong demand from emerging economies such as Asia and Middle-East along with closure of unviable refineries in Europe would provide support to product cracks. With the GoI de-regulating the prices of petrol from June 26, 2010, the decision bodes well for BPCL. Furthermore, the situation on under recoveries may further improve if diesel gets deregulated.

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ANALYSING THE TOP 13

#10 HINDUSTAN PETROLEUM CORPORATION LTD (HPCL)

FUELLING PROSPECTS FOR DYNAMIC DEVELOPMENT H PCL, one of the Navaratna companies, accounts for about 20 per cent of the market share and about 10 per cent of the nation’s refining capacity. Additionally, the company owns the country’s largest lube refinery with a capacity of 335,000 metric tonne, thereby amounting for 40 per cent of the national capacity of lube oil production. Ranked 10th among the Top 500 Manufacturing Companies, H PCL is fuelling prospects for dynamic development with its diversified portfolio.

H

industan Petroleum Corporation Ltd (HPCL) was originally incorporated in July 1952 as Standard Vacuum Refining Company of India Ltd. In 1974, the name of the company was changed to its present name. Presently, the Government of India (GoI) holds about 51 per cent stake in the company.

HPCL is one of the major players in crude oil refining and marketing of various petroleum products. It has an aggregate refining capacity of 14 million metric tonnes per annum (MMTPA) with two refineries – one on the west coast in Mumbai (Maharashtra) and the other on the east coast in Visakhapatnam (Andhra Pradesh).

Furthermore, HPCL is setting up a 9-MMTPA refinery at Bhatinda (Punjab), which is slated to commence its commercial production by December 2010/March 2011.

ACHIEVEMENTS – FY10 Market sales volume touched a level of 26.3 Million Metric Tonne (MMT) in FY10, as compared to 25.4 MMT in FY09 representing a growth of 3.5 per cent over the previous year.

The company’s refineries at Mumbai and Visakhapatnam achieved a combined throughput of 15.76 MMT resulting in capacity utilisation of 113 per cent.

The green fuels projects for the

78

production of petrol at the Year of Incorporation 1953 Mumbai and Visakhapatnam Industry classification Oil and Gas- refining and refineries have been Marketing completed and are Promoter Government of India producing Euro III/IV quality Promoters stake % 51.11 petrol.

365day Avg. Market 13,852.82 The Mumbai refinery Capitalisation –` crore became the first Indian EV –` crore 31,842.78 Public Sector Refinery to EPS adjusted–` 40.02 commence production of β (Beta value) 0.78 Euro IV quality petrol and P/ BV 1.21 the project was dedicated to the nation in January Credit Rating CRISIL – AAA CRISIL – P1+CRISIL – FAAA 2010.

Source: Prowess, CARE Research The company is reaching the rural customers through schemes like ‘HP Gas Rasoi Ghar’ and reduction in interest expenses during the ‘Rajiv Gandhi Gramin LPG Vitarak’. year aggregating to ` 932.13 crore represented a y-o-y de-growth of 55.9 per FINANCIAL PERFORMANCE cent primarily owing to the treasury’s ANALYSIS – FY10 strategy of retiring high-cost debt and During FY10, HPCL reported net sales of replacing them with a lower-cost debt. ` 1,11,189.8 crore representing y-o-y Correspondingly, the PAT figures during decline of 14 per cent. However, on a FY10 aggregated to ` 1,475.15 crore with standalone basis, the petroleum product a y-o-y growth of 94.8 per cent. Also, the sales (including exports) by the company absorption of under-recoveries by the aggregated to 26.3 mn tonne recording company aggregating to ` 1,225 crore on y-o-y growth of 3.5 per cent during FY10. sales of sensitive petroleum products during During the year, the company reported a the year helped to scale up the company’s rise in depreciation at ` 1,250.52 crore profit as well as the net profit margin. recording a y-o-y growth of 17.3 per cent, FINANCIAL PERFORMANCE mainly owing to the commissioning of the ANALYSIS – Q2FY11 Euro IV fuel projects at Mumbai and During Q2FY11, HPCL reported sales Visakhapatnam refineries. However, the

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aggregating to ` 30,870.23 crore with a y-o-y growth of 25.3 per cent. However, during the quarter, the gross refining margins (GRM) declined to $2.7/barrel as against $3.72/barrel during Q1FY11.

Importantly, during the quarter, the company reported positive PAT figures as against a loss of ` 136.68 crore during Q2FY10, owing to the receipt of subsidies amounting to ` 2,832.17 crore from the GoI for under-recoveries in H1FY11, discounts from upstream companies ie.

ONGC and GAIL towards purchase of crude oil and cooking fuel aggregating to ` 810 crore. Correspondingly, the PBDITA and PAT margins stood much improved at 8.76 per cent and 6.72 per cent during Q2FY11. Importantly, the de-regulation of gasoline prices and upward revision in prices of high speed diesel (HSD) and cooking fuels enabled the company to lower under-recoveries during the quarter.

Sales Volume ‘000 Tonnes

30000 25000 20000 15000 10000 5000 0

FY 06 FY 07 FY 08 FY 09 FY 10 Light Distillates Heavy Ends

Middle Distillates Lubes & Greases

Gross Refinery Margin (GRM) US$ per barrel

7 6 5 4 3 2 1 0

FY 06 FY 07 FY 08 FY 09 FY 10 Gross Refining Margin - Mumbai Refinery Gross Refining Margin - Vizag Refinery

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover - times

Consolidated FY10 Y-O-Y growth % 111,189.8 -14.0 4,545.94 5.1 1,475.15 94.8 12,275.57 10.2 24,353.25 1.2 25,160.0 31.6 3.75 1.22 4.9 13.05 1.98 3.59 5.4 -

Standalone FY10 Y-O-Y growth % 108,461.69 -13.7 4231.7 5.7 1,301.18 126.4 11,557.97 7.7 21,302.37 -6.4 19,194.26 15.2 3.6 1.11 6.98 12.14 1.84 3.12 6.47 -

Source: Prowess, CARE Research

VISION FY11 & BEYOND

Financial performance analysis –

HPCL’s venture into wind farm Q2FY11 project envisages capacity All figures in ` crore unless specified addition of another 25 MW in Standalone Rajasthan following the already Parameters Q2FY11 y-o-y growth existing capacity of 25 MW % commissioned in Rajasthan and Net Sales 30,870.23 25.3 Maharashtra.

PBDITA 2,723.83 660.8 Assessing the feasibility of setting PAT 2,089.61 NM up a new refinery on the west PBDITA margin % 8.76 coast of India, especially in view PAT margin % 6.72 of various constraints being Source: Prowess, CARE Research experienced in the expansion/ modernisation of the company’s Mumbai Refinery. future. However, given the strategic New projects are either envisaged/ importance of the company, GoI is under construction to expand distribution expected to continue to support OMCs infrastructure of the company. Some of in terms of the under-recovery sharing them include: Bahadurgarh-Tikrikalan mechanisms and oil bonds issuances to Pipeline, Tikrikalan Terminal, additional the OMCs. The outlook on the tankage at MDPL locations, re-sitement marketing margin for the ensuing years of marketing terminals at Vizag and would however largely be a function of Ennore Terminal Project. crude oil prices and the timeliness and adequacy of the sharing of underOUTLOOK recoveries.

Marketing: HPCL, one of the major Refining: With the Indian economy players in the marketing of sensitive shifting towards stringent emission products like motor spirit (petrol), HSD, norms (Euro III and Euro IV), the LPG and superior kerosene oil (SKO) in company will be required to upgrade the country, has vastly benefited from the refineries to produce cleaner fuels the de-regulation of petrol prices from using sour and heavy crudes in order to June 2010. With the marketing to the enhance GRMs. Going forward, CARE refining sales ratio of the company being Research expects that strong demand the highest among other oil marketing from emerging economies such as Asia companies (OMCs), CARE Research and Middle-East along with closure of expects the company to be the biggest unviable refineries in Europe would beneficiary, in case of de-regulation of provide support to product cracks diesel prices by the GoI in the near (GRMs).

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ANALYSING THE TOP 13

#11 STERLITE INDUSTRIES INDIA LTD (SIL)

STEERING IN THE RIGHT DIRECTION With consolidated revenues of ` 24,410 crore, Sterlite is one of India’s largest non-ferrous metals and mining company. The company’s structurally low-cost position across commodities, excellent liquidity and strong cash flow augurs well for the company to steer the growth momentum in these unprecedented markets. With a clear focus on augmenting capacity across its businesses and strengthening low-cost position, the company is well placed to lead the growth trajectory.

I

ncorporated in 1975, Sterlite Industries Chhattisgarh. SIL’s wholly Year of Incorporation 1975 (SIL) is an integrated metals and mining owned subsidiary SEL is Industry classification Copper and Copper products company primarily dealing in copper, building a 2,400 MW thermal Promoter Vedanta Group zinc and aluminium. Additionally, it has coal-based power plant in Promoters stake % 52.80% also developed a commercial power Orissa, which is expected to 365- day Avg. Market 61,334.72 generation business as well. While its come on line in phases by Capitalisation –` crore operations are predominantly located in FY11.

EV –` crore 73,929.60 India, SIL also has mining operations in EPS adjusted–` 13.15 ACHIEVEMENTS – Australia and a precious metals refinery in β (Beta value) 1.41 FY10 the UAE. SIL operates through four of its SIL issued American principal subsidiaries namely; Hindustan P/ BV 0.63 depository shares (ADS) of Zinc Ltd (HZL), Copper Mines of Tasmania, Credit Rating CRISIL AA+/ P1+ $1.6 billion and also raised Bharat Aluminium Company Ltd (BALCO) Source: Prowess, CARE Research $500 million through and Sterlite Energy Ltd (SEL). Additionally, it procurement and construction contract convertible senior notes is also a minority stake holder in Vedanta for the 1,980 MW IPP project at during FY10.

Aluminium Ltd (29.5 per cent) with the Talwandi Sabo, Punjab. Project SIL acquired the Skorpion Zinc Mine in remaining 70.5 per cent being held by SIL’s completion is expected by Q2FY14.

Namibia from Anglo American Plc for a parent company, Vedanta Resources. cash consideration of approximately SIL’s copper business consists of the FINANCIAL PERFORMANCE $707 million. smelting and processing of copper from its ANALYSIS – FY10 210 kilo tonne per annum (KTPA) zinc refinery at Tamil Nadu, a refinery and two During FY10, SIL reported net sales of smelter at Dariba and 1 million tonne copper rod plants at Gujarat and a precious ` 24,506 crore, representing a y-o-y per annum (MTPA) concentrator at metal refinery at Fujairah, UAE. SIL also increase of 15.3 per cent. This owns the Mount Lyell copper was primarily on account of mine in Australia, which With a significant backward integration leading to a higher volumes in the zinc and contributes about seven per cent to its copper concentrate low cost of operations and a healthy liquidity position, copper business backed by revival requirements. HZL is a fully SIL is expected to have a competitive advantage over in commodity prices in FY10.

PBDITA and PAT increased in line integrated zinc producer dealing its peers going forward. with the increase in net sales for in products like refined zinc metal, FY10. SIL registered a strong refined lead metal, silver, cadmium Rampura Agucha commissioned profitability with an operating margin of and sulphuric acid. The company has mining successfully at HZL. 28.45 per cent and a net margin of 19.57 and smelting operations located in Rajasthan Exploration activities at HZL resulted in per cent. Interest coverage of the company and Andhra Pradesh and a zinc ingot melting a reserve and resource base of 103.03 was robust at 16.57x as at the end of FY10 and casting plant at Haridwar. BALCO has MT for FY10 as compared to 83.4 MT with a y-o-y decrease in interest cost as a partially integrated operations with two for FY 2009. result of the repayment of a high interestbauxite mines, captive power plants and The company revived an engineering, bearing debt. The company issued ADS of refining, smelting and fabrication facilities in

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ANALYSING THE TOP 13

$1.6 billion and also raised $500 million through convertible senior notes during FY10. The net worth of the company increased to ` 22,067 crore as at the end of FY10 from ` 13,897 crore as at the end of FY09, while the debt of the company increased to ` 9,260 crore as at the end of FY10 from ` 7,014 crore as at the end of FY09. Consequently, the gearing of the company stood at 0.25x as of March 31, 2010.

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 Despite a 20 per cent y-o-y decrease in net sales for Q2FY11, PBIDTA of SIL increased by 74.4 per cent over the previous year quarter mainly due to a decrease in its raw material cost (mainly copper concentrate) and high other income. As a result, the PBIDTA margin of the company doubled to 19 per cent as compared to 9.5 per cent for the same quarter last year. This, along with the significant reduction in the company’s interest cost during the quarter, led to a 91 per cent y-o-y increase in net profit of SIL

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

Consolidated FY10 y-o-y growth % 24,505.95 15.29 7,855.61 11.23 5401.68 15.16 37,012.00 44.50 9,259.99 32.03 23,350.00 35.67 28.45 19.57 16.67 17.89 0.25 16.57 1.27

Source: Prowess, CARE Research

to ` 400.9 crore for Q2FY11. At the same time, the PAT margin of the company increased to 11.7 per cent as compared to 5.4 per cent for Q2FY10.

VISION FY11 & BEYOND The new 325 KTPA aluminium smelter at BALCO is expected to commission in phases from Q4FY11 onwards. The 1,200 MW captive power plant to support the facility is scheduled to come on line in phases between Q3FY11 and Q2FY12.

The first unit of the 2,400 MW coal-

Segment wise revenue break-up 33%

3% 2% 51%

Alluminium Others

based commercial power plant at Jharsuguda, Orissa, was commissioned in June 2010, while the remaining three units are expected to be commissioned in phases by the end of FY11.

` cr

ON AN EXPANSION SPREE

30000 25000 20000 15000 10000 5000

82

All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT PBDITA margin % PAT margin %

Standalone Q2FY11 y-o-y growth % 2,906.72 -19.65 648.96 74.42 400.87 91.34 18.98 11.72 -

Source: Prowess, CARE Research

Zinc & Lead

Turnover increase at CAGR of 17%

0

Financial performance analysis – Q2FY11

SIL’s future performance will be driven largely by its ability to successfully complete the ongoing organic growth plans across the sectors without any time or cost overrun and to leverage on its low-cost position.

11% Copper Power

Standalone FY10 y-o-y growth % 13,114.88 13.56 1,356.62 -22.05 824.13 -33.35 22,268.08 58.61 5,322.20 38.96 1,826.80 10.98 9.00 5.47 5.57 5.97 0.24 5.91 7.88 -

FY 06 FY 07 FY 08 FY 09 FY 10

SIL is one of the major players in the metals space with a well-integrated nature of operations. After facing challenging market conditions during the second half of FY09 and FY10 due to the recessionary economic environment, globally, SIL is well-placed to benefit from a sustained recovery in demand and commodity prices as well as a positive outlook for commodities in the emerging markets such as India. SIL is presently

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undergoing expansions to add up capacities in all four of its major segments namely; copper, zinc & lead, aluminum and power, to better leverage on the integrated nature of its operations. The company is also setting up captive power plants to support these new facilities in an effort to sustain its low-cost advantage. With a significant backward integration leading to a low cost of operations and a healthy liquidity position, SIL is expected to have a competitive advantage over its peers going forward.

SIL’s future performance will be driven largely by its ability to successfully complete the ongoing organic growth plans across the sectors without any time or cost overrun and to leverage on its low-cost position.

ANALYSING THE TOP 13

#12 HINDALCO INDUSTRIES LTD (HIL)

FORGING ITS WAY AHEAD Hindalco Industries is the world’s largest aluminium rolling company and one of the leading producers of aluminium and copper. Its well-crafted growth and integration hinges on the three cornerstones of cost competitiveness, quality and global reach. The company is determined to maintain profitability in the uncertain macroeconomic environment by channelising efforts to maximise free cash flow from its existing operations and reducing leverage to smoothly progress through a calibrated approach. The company’s ongoing focus on cost optimisation, operational excellence and the integrated business approach will ensure its long-term success.

H

indalco Industries is the flagship As for its aluminium business, the Year of Incorporation 1958 company of the Aditya Birla company is an integrated player; bauxite is Industry classification Aluminium and Group. The company commenced sourced from captive mines and is Aluminium products operations in 1962 and has been subsequently converted to various end Promoter Aditya Birla Group listed on the Indian stock exchanges since products. In the copper business, the Promoters stake % 32.08% 1968. The company is engaged in the company is mainly involved in job work.

365- day Avg. Market 33,357.53 manufacture of aluminium from its facility Hindalco operates captive power generation Capitalisation –` crore located at Renukoot in Uttar Pradesh, which facilities aggregating 1,358 MW as at end of EV –` crore 40,984.30 has an alumina refining capacity of 7,00,000 FY10.

EPS adjusted–` 9.42 tonne per annum (TPA) and a smelting β (Beta value) 1.33 ACHIEVEMENTS – FY10 capacity of 345,000 TPA. P/ BV 1.48 Expansion of the Hirakud smelting Over the years, the company has grown Credit Rating CARE AA+(Is)CRISIL capacity from 143,000 TPA to 155,000 to become the largest integrated aluminium AA/ P1+ TPA. manufacturer in India. Hindalco is also one Source: Prowess, CARE Research Expansion of Muri Alumina Refinery of the lowest cost producers of primary from 110,000 TPA to 450,000 TPA is aluminium in the world. The company has of 8.72 per cent. This was primarily on complete. its own captive mines and captive power Highest-ever copper cathode production account of lower aluminium prices and plants helping it to have better cost control. with improvement of 12 per cent over softness in the company’s end-markets The company is also engaged in the copper FY09. during H1FY10, especially in the case of business by operating a custom smelting Novelis. Furthermore, change in facility. The acquisition of Novelis With the ongoing strengthening of backward integration the status of Idea Cellular (Idea) in 2007 enabled Hindalco to become a global corporation and & setting up of 3,380 MW of captive power generation from a JV to an associate company in proportionate revenue rank among the top five aluminium to facilitate its metal production, Hindalco is expected resulted from Idea not getting included in majors worldwide. to maintain cost competitiveness. consolidated revenue.

The The company also enjoys the company witnessed a healthy position of being the largest Sharp reduction in copper conversion growth in the profit margins with the vertically integrated aluminium company in cost despite rising input cost pressure.

PBDITA margin and PAT margins at 16.13 India with a dominant market share of the Increase in hot metal production by per cent and 6.81 per cent, respectively, down stream rolled products segment. around six per cent. during FY10. The PBDITA of the company Hindalco’s major products include standard grew substantially, reflecting improvement and speciality grade aluminas and hydrates, FINANCIAL PERFORMACE in operations across the company. The aluminium ingots, billets, wire rods, flat ANALYSIS – FY10 company’s focus on cost management rolled products, extrusions and foil, During FY10, HIL reported net sales of measures helped in the growth in PBDITA, continuous cast copper rods, copper ` 60,717 crore representing a y-o-y decline led by improvement in operational efficiency cathodes among others.

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ANALYSING THE TOP 13

in power consumption, carbon consumption, etc. and cost-effective sourcing of raw materials.

FINANCIAL PERFORMACE ANALYSIS – Q2FY11 In Q2FY11, HIL reported a revenue growth of 19.23 per cent y-o-y owing to the strengthening of aluminium prices on the London Metal Exchange (LME) during this period. Net sales were also boosted by an improved product mix on account of higher sales of value-added products that were the key growth drivers for the aluminium business. The appreciating rupee and lower sales volume due to smelter outage at Hirakud facilities impacted the company’s performance. In the copper business, revenues were higher mainly on account of higher copper prices at LME. PBITDA recorded a robust 17 per cent increase with improved efficiencies and planned cost

Capacity: Hydrate & Alumina add Production ` cr

1600000 1400000

Financial performace analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

saving initiatives. The company was benefitted from higher aluminum LME and better by-product realisation in its copper business. PAT increased in line with PBILDT coupled with lower interest cost for the period due to the lower average interest rate.

The brownfield expansions at Muri and Hirakud facilities have been commissioned and are expected to deliver the targeted cash flows as scheduled.

HIL expects to leverage on the economies of scale and cutting-edge technology in greenfield upstream projects and highend downstream products.

The company is focussing on five greenfield sites to increase the capacities in the coming years.

HIL is striving on maintaining profitability in the uncertain macroeconomic environment.

The company has channelised efforts to maximise free cash flow from existing operations.

Plans to strengthen the balance sheet and have reduced leverage to smoothly progress through a calibrated approach.

1000000 800000 600000 400000 200000 FY 06 FY 07 FY 08 FY 09 FY 10 Installed Capacity (mtpa) Production (mtpa)

Consolidated Turnover increased at CAGR of 50% ` cr

70000 60000 50000

RESTING ON STRONG FOOTING

40000 30000 20000 10000 0

86

FY 06 FY 07 FY 08 FY 09 FY 10

Standalone FY10 Y-O-Y growth % 19,513.52 7.14 3,643.12 -11.04 1915.63 -14.11 27,910.97 17.48 6,356.90 -23.63 11,437.61 23.30 17.15 9.02 5.58 6.77 0.23 4.72 1.99 -

Source: Prowess, CARE Research

VISION FY11 & BEYOND

1200000

0

Consolidated FY10 Y-O-Y growth % 60,716.96 -8.72 10,293.85 154.16 4350.26 1001.36 21,570.82 36.84 23,999.10 -15.25 34,826.48 0.15 16.13 6.81 9.67 22.09 1.11 5.93 1.78 -

HIL is one of the lowest cost producers of primary aluminium in the world. A fall in global demand and realisation for the commodity is expected to have lesser impact on the company due to its efficient cost structure. With the expected upward trend for prices of aluminium going forward,

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Financial performace analysis – Q2FY11 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT PBDITA margin % PAT margin %

Standalone Q2FY11 y-o-y growth % 5,859.94 19.23 780.45 17.11 433.81 26.09 13.13 7.30 -

Source: Prowess, CARE Research

profitability of the company is expected to improve. The firmness in the commodity prices and also the demand in the key markets in which the company operates, are encouraging. However, the higher input cost remains a concern for the company.

With aggressive cost containment, enhanced asset productivity and the higher share of value-added products, the outlook of the company remains cautiously positive.

Through the acquisitions of Novelis, HIL has created a strong manufacturing and marketing network in American and European markets, which is expected to benefit the company going forward. With the ongoing strengthening of backward integration ie., enhancement in alumina refining capacity from 1.5 MTPA to 4.5 MTPA, enhancement in aluminium smelting capacity from 0.5 MTPA to 1.7 MTPA and the setting up of 3,380 MW of captive power generation to facilitate its metal production, the company is expected to maintain cost competitiveness.

ANALYSING THE TOP 13

#13 JINDAL STEEL & POWER LTD (JSPL)

POWERING PROGRESS Resting on the pillars of perseverance, a passion for excellence and a firm commitment towards all stakeholders and the community at large, Jindal Steel & Power Ltd has been one of the leading players in steel, power, mining, oil & gas and infrastructure. With such a vast portfolio, the company is consistently tapping new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses. Its enterprising spirit and ability to discern future trends have been the driving force behind the company’s remarkable growth and the recognition it has received only further lends credence to this.

J

indal Steel & Power Ltd (JSPL) was promoted as Orbit Steel (OSPL) in 1979 by OP Jindal. In June 1998, OSPL became a public limited company with its name changed to Jindal Steel & Power Ltd. In early 1998, under a restructuring exercise, Jindal Strips Ltd (JSL), JSL’s Raigarh and Raipur units (both in Chhattisgarh) were hived off and merged with JSPL. JSPL is one of India’s leading steel producers and has notably expanded its steel and power operations over the past decade.

The company has an annual steel-making capacity of 3.0 mn tonne. JSPL also has a 1.37 mn tonne per annum (MTPA) sponge iron plant, which is coal-based. The Raigarh unit is an integrated steel plant producing value-added products like heavy structurals, rails, plates & coils, rounds and other steel products. The Raipur plant of the company carries out machining and engineering jobs.

Moreover, JSPL has captive iron ore mines in Tensa valley in Sundergarh, Orissa.

It also has three captive coal mines (two in Chhattisgarh and one in Orissa) with an approximate geological reserve of around 513 mn tonne. The company mines almost 6 mn tonne of coal (also an additional of about 6 mn tonne for its power subsidiary) for captive use every year. JSPL forayed into the power segment through its wholly owned subsidiary, Jindal Power Ltd (JPL).

JPL has an operational 1,000 MW (4X250 MW) thermal power plant at Raigarh, Chhattisgarh. The company also has a

captive power capacity of about 358 MW for steel plant at Raigarh.

ACHIEVEMENTS – FY10 The company recorded the highest production at DRI plant, coke oven, sinter plant, blast furnace, plate mill and power plant in FY10.

JSPL produced 13,09,408 tonne of sponge iron as against the previous year’s production of 12,48,511 tonne and achieved a capacity utilisation rate of 95.6 per cent.

The company generated 2,976 million units of power during FY10 as against 2,831 million units during previous year.

The production of calibrated iron ore at captive mine at Tensa in Orissa was 1.23 mn tonne as against a production of 1.04 mn tonne in FY 09. The company has exported 0.61 mn tonne of iron ore fines in FY10 as against 0.91 mn tonne last year.

The production of coal at captive mines was 5.99 mn tonne registering a marginal increase over the last year.

JSPL substituted imported limestone and costly limestone with indigenous dolomitic limestone and stabilised its use in electric arc furnace (EAF).

Process development activities in FY10 helped in achieving high productivity and reduction in the coke rate.

As a part of the renewable energy development, JSPL installed solar power

Year of Incorporation Industry classification Promoter Promoters stake % 365-day Avg. Market Capitalisation –` crore EV – ` crore EPS adjusted – ` β (Beta value) P/ BV Credit Rating

1979 Steel & Power Naveen Jindal 58.42% 62,973.98 73,719.07 15.89 1.45 9.38 ICRA LAA

generators with a total capacity of about 25 KW for captive use.

FINANCIAL PERFORMANCE ANALYSIS – FY10 JSPL reported a marginal increase in net sales by about two per cent during FY10.

The company’s steel operations put a drag on the overall financial performance but the power business did well in FY10.

JPL, the company’s power subsidiary, was able to achieve a 22 per cent growth at the income level and a notable 47 per cent growth at the PAT level in FY10.

Consequently, JSPL witnessed an increase in consolidated PBDITA by 12 per cent, with the PBDITA margin improving to a healthy 50.8 per cent in FY10 as compared to about 45.4 per cent during FY09. PAT also grew by almost 21 per cent on a y-o-y basis and the PAT margin improved to 30.8 per cent compared to 25.5 per cent in FY09.

On a standalone basis, the company

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ANALYSING THE TOP 13

recorded a decline in the net sales by five per cent on a y-o-y basis. To support the ongoing expansion, the total borrowing level increased by a whopping 69 per cent on a y-o-y basis. Lower price realisation on account of slower recovery in steel prices and higher interest and depreciation costs impacted the company’s PAT which declined by four per cent in FY10.

FINANCIAL PERFORMANCE ANALYSIS – Q2FY11 JSPL posted a strong growth of 43 per cent in net sales in Q2FY11 on the back of a robust demand for steel and power. Notable growth in sales was backed by a rise in volume (sale of steel products was up by 15 per cent) and improvement in realisation. Production of power was also up by 11 per cent as two units of 135 MW each were commercially commissioned during the second quarter.

The company reported a healthy growth in the PBDITA and PAT level by more than 50 per cent each. The company’s PBDITA margin increased to 37.4 per cent in Q2FY11 compared to 35.3 per cent in the same period last year. PAT margin also increased to

Financial performance analysis – FY10 All figures in ` crore unless specified

Parameters Net Sales PBDITA PAT Net worth Total debt Net Fixed Assets PBDITA Margin % PAT Margin % ROCE % RONW % Debt/Equity - times Interest Coverage -times Asset Turnover -times

12000

20.7 per cent compared to 18.8 per cent in the second quarter last year.

All figures in ` crore unless specified

JSPL is setting up a 540 MW captive thermal plant in two phases of 270 MW each at Raigarh, Chhattisgarh.

The company is also working on a 6 MTPA integrated steel plant at Angul, Orissa, along with a captive thermal power plant of capacity 810 MW. JSPL is also planning a 6 MTPA integrated steel plant at Jharkhand and a brownfield expansion of 3 mn tonne at Raigarh.

JSPL is planning to set up an integrated steel plant of 1.7 MTPA, a 6 MTPA sponge iron and a 10 MTPA iron ore pellet plant in Bolivia.

The company is envisaging a foray into cement business by setting up a 2 MTPA slag and flyash cement plant at Raigarh.

The company is installing a 1.5 MTPA gas-based hot briquetted iron (HBI) plant at Sohar Industrial Port area in Oman.

JSPL has an ambitious target of increasing its power generation capacity by 11 times from the existing 1,000 MW to 11,500 MW by the end of FY20.

5 year CAGR at 43.7%

8000 6000 4000 2000 FY 06 FY 07 FY 08 FY 09 FY 10

PAT (Consolidated) ` cr

4000 3500 3000 2500 2000 1500 1000 500 0

90

5 year CAGR at 58.7%

EXPANDING FOOTPRINT

FY 06 FY 07 FY 08 FY 09 FY 10

Financial performance analysis – Q2FY11

VISION FY11 & BEYOND

10000

0

Standalone FY10 y-o-y growth % 7,347.44 (4.60) 2,703.80 1.35 1,479.68 (3.70) 6,746.10 24.57 8,383.26 68.93 13,929.27 55.02 33.18 18.16 12.66 24.24 1.24 7.69 0.69 -

Source: Prowess, CARE Research

Total Income (Consolidated) ` cr

Consolidated FY10 y-o-y growth % 11,071.39 1.58 6,004.82 12.27 3,634.56 20.86 10,416.79 47.72 8,604.29 6.05 18,736.65 36.13 50.82 30.76 22.90 41.50 0.83 11.08 0.72 -

JSPL is well-placed in terms of access to captive raw materials, integrated steel operations, diversified product portfolio, economies of scale and operating efficiencies.

With these attributes, the company is at an advantageous position to reap benefits from the growing domestic steel market. The increase in the steel-making capacity by the

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Parameters Net Sales PBDITA

Standalone Q2FY11 y-o-y growth % 2,299.61 42.81 862.00 50.75

PAT PBDITA margin % PAT margin %

478.17 37.39 20.74

56.77 -

Source: Prowess, CARE Research

company will be absorbed by the increasing demand for steel products. The company’s constant efforts to look for backward integration of raw materials and captive power for steel operation will help to reduce cost and enhance profitability.

India is facing a huge power deficit. Peak deficit in the country in FY10 was almost 13 per cent. With the addition of power generation capacity, the company will be able to capitalise on the growing power need in the country. However, decline in prices of merchant power can put some restriction on the topline growth.

JSPL has acquired coal and iron ore mines in Africa and Bolivia. The company’s upcoming HBI plant at Oman provides certain incentives such as availability of natural gas at attractive tariff, good connectivity with ports, etc. With these initiatives, the company will be able to access Middle East and African markets. Venture into the cement business will provide the company a new revenue stream by tapping the growing domestic cement market.

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CARE’s ratings are widely accepted by the lenders & investors. CARE’s leadership position in Banks/FIs ratings authenticates the same. CARE is recognised by all statutory authorities in India for its credit rating activities. It is the founder member of Association of Credit Rating agencies in Asia (ACRAA). Making its footprints count, CARE provides technical assistance to Credit Rating agencies in Mexico, Ecuador, Nepal, Bangladesh and Maldives. Apart from holding leadership position in Banks/FIs ratings, CARE also holds leadership in IPO grading, sub-sovereign ratings as well as structured finance ratings.

CARE RESEARCH CARE Research & Information Services is an independent division of CARE. CARE Research services a variety of business research needs with credible, high quality research and analysis on various facets of the Indian Economy and Industries. It provides an insightful input on industry performances by assessing trends and predicting their impact on the future. CARE Research also provides customised research and sector research.

DISCLAIMER This ranking is prepared by CARE Research, a division of Credit Analysis & REsearch (CARE). CARE Research has taken utmost care to ensure accuracy and objectivity while developing this ranking based on information available in public domain. The data pertaining to the companies so ranked has been sourced through Prowess database. However, neither the accuracy nor completeness of information contained in this ranking is guaranteed. CARE Research operates independently of ratings division and this ranking does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. The opinion expressed in this ranking cannot be compared to the rating assigned to the company within this industry by the ratings division.

The opinion expressed is also not a recommendation to buy, sell or hold an instrument.

CARE Research and Infomedia18 are not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this ranking and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this product.

GLOSSARY BCF

Billion Cubic Feet

CAGR

Compounded Annual Growth Rate

GRM

Gross Refining Margins

EBITDA

Earnings Before Interest, Tax, Depreciation & Amortisation

EPS

Earnings Per Share

OPM

Operating Profit Margin

MCAP

Market Capitalisation

MTPA

Million Tonne Per Annum

PAT

Profit After Tax

PBT

Profit Before Tax

PBIT

Profit Before Interest & Tax

PBDITA

Profit Before Depreciation, Interest, Tax and Amortisation

ROCE

Return On Capital Employed

RONW

Return On Net Worth

TPA

Tonne Per Annum

J A N U A R Y 2 0 1 1 | SEARCH - THE INDUSTRIAL SOURCEBOOK

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PRODUCT INDEX

To know more about the products in this magazine, refer to our ‘Product Index’ or write to us at search@infomedia18.in or call us at +91-22-3003 4684 or fax us at +91-22-3003 4499 and we will send your enquiries to the advertisers directly to help you source better.

Products

Pg No

Adjustable adaptors ............................................................ 85 Air circuit breakers ............................................ Front gatefold Air compressors................................................................. 73 Air operator/airless shot blasting......................................... 83 Air purifiers ........................................................................ 13 Animal feed technology........................................................ 9 Automation ....................................................................... 11 Automation of manual operations ...................................... 75 Baking ovens...................................................................... 83 Basic & detailed engineering (including utilities)................... 75 Bearings .......................................................... 67, 68, 69, 70 Blast room paint spray booths ........................................... 83 Bottle feeders .................................................................... 25 Brewing ............................................................................... 9 Cables ............................................................................... 65 Carbide rods ..................................................................... 17 Castors .............................................................................. 21 Centreless grinder feeders ................................................. 25 Centrifugal air blowers ....................................................... 81 Chain pulley blocks ............................................................ 23 Chocolate/cocoa .................................................................. 9 CI castings ......................................................................... 87 Circular connectors............................................Back gatefold Cleaning section equipment ................................................. 9 CNC lathes ................................................ Back inside cover CNC tap chucks & tap adaptors ........................................ 85 CNC tap holders & pull studs............................................ 85 CNC tools holders & pulley studs ..................................... 85 CNC turning centers .................................. Back inside cover CNC vertical lathes ........................................................... 87 CNC vertical machines ...................................................... 87 CNC vertical turning lathes ................................................ 87 CNC/VMC machines.............................................. 5, 6, 7, 8 Colour sorting ..................................................................... 9 Command panel systems ................................................... 10 Conduit systems ................................................Back gatefold Console systems ................................................................ 10 Construction management (including plant commissioning assistance) .............................................75 Contactor ......................................................... Front gatefold Control & automation........................................................ 65 Controls & automation ...................................................... 75 Conveyors ...................................................................21, 93 Countersinks...................................................................... 63 Crabs................................................................................. 23 Cranes .........................................................................12, 23 Custom-designed power systems ...................................... 29 Customised equipment building from concept ................... 75 Cutting tools ................................................................17, 88 Diamond tools ................................................................... 63 Digital almen gauges & almen strips ................................... 61 Drill sleeves ....................................................................... 85 Drilling tools ...................................................................... 63 Drink Technology India-2010 ............................................. 18 Dust collecting systems ...................................................... 81 Electric wire rope hoists .................................................... 12 Electrical & automation ...................................................... 19 Electrical CAD/CAE software ............................................. 10 Electrical systems ............................................................... 65 Electronic components ...................................................... 19 Enclosure cooling units ...................................................... 10 Enclosure systems .............................................................. 10 Engines .............................................................................. 73

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Products

Pg No

EOT cranes ....................................................................... 12 EOT/HOT cranes .............................................................. 23 Excavators.......................................................................... 73 Exhibitions ......................................................................... 18 Extruded products ............................................................... 9 Fan & filter units ................................................................. 10 Feeder accessories ............................................................. 25 Feeders for FMCG ............................................................ 25 Feeders for furnaces .......................................................... 25 Flameproof hoists .............................................................. 23 Floating holders ................................................................. 85 Flour milling ......................................................................... 9 Forging press feeders ......................................................... 25 Gearboxes ......................................................................... 23 Glide wheels...................................................................... 21 Goliath cranes.................................................................... 23 Goods lifts ......................................................................... 23 Grain handling ..................................................................... 9 Grinding & dispersion .......................................................... 9 Grooving & parting tools ................................................... 17 Gun drills ...........................................................................63 Heart valve frames............................................................. 14 Helical geared motors........................................................ 12 HP-speed blast wheels ....................................................... 83 Industrial automation.......................................................... 11 Industrial batteries .............................................................. 65 Industrial cable glands.........................................Back gatefold International Packtech India-2010 ....................................... 18 Isolators ............................................................ Front gatefold Jib cranes .....................................................................12, 23 Land survey & selection ..................................................... 75 Large enclosures ................................................................ 10 Lathe machines .................................................................. 87 Lawn mowers.................................................................... 73 Machine tool accessories ................................................... 85 Material handling equipment .............................................. 12 MCBs ............................................................... Front gatefold MCC & PCC enclosures ................................................... 10 MCCBs..............................................................................65 Mechanical products .......................................................... 19 Metal cutting tools ................................................ Back cover Metering solutions & relays ................................................ 65 Meters ...............................................................................65 Milling cutters...............................................................17, 63 Modular tooling systems .................................................... 63 Monorail trolleys ................................................................ 23 Motor control centers........................................................ 65 Motorised chain pulley blocks ............................................ 23 Motors & drives................................................................. 11 Multi-functional tools .......................................................... 17 MV switchgears.................................................................. 65 Oil milling ............................................................................ 9 Oil-sealed high vacuum pumps .......................................... 81 Pasta .................................................................................... 9 PC enclosures.................................................................... 10 Peeing machines ................................................................ 61 Plano milling machines ....................................................... 87 Plant electricals................................................................... 75 Plastic pellets........................................................................ 9 Plat trucks ..........................................................................21 Pneumatic conveying systems ............................................ 81 Power & connectors .......................................................... 19 Power distribution components ......................................... 10

SEARCH - THE INDUSTRIAL SOURCEBOOK | J A N U A R Y 2 0 1 1

Products

Pg No

Power distribution systems (HT & LT) ............................... 75 Power quality management systems................................... 65 Power systems................................................................... 29 Procurement services......................................................... 75 Quick-change tapping chucks/tap adaptors ......................... 85 RCCBs ............................................................. Front gatefold Reamers ......................................................................63, 88 Reaming & tapping ............................................................. 85 Recovery unit & consumables ............................................ 83 Reverse engineering........................................................... 75 Reverse pulse jet-type bag filters ........................................ 81 Reversible tapping attachments .......................................... 85 Rice milling equipment ......................................................... 9 Robotic shot peening machines.......................................... 83 Roll turning lathes .............................................................. 87 Root blowers ..................................................................... 81 Security systems................................................................. 13 Self opening die-heads ....................................................... 85 Shock and noise isolation ................................................... 25 Shot blasting ...................................................................... 61 Small junction/distribution boxes ........................................ 10 Solid carbide drills with IC .................................... Back cover Solid carbide drills ................................................. Back cover Solid carbide mills ................................................. Back cover Solid carbide reamers with IC............................... Back cover Solid carbide reamers ........................................... Back cover Solid carbide special drills ...................................... Back cover Solid carbide special mills ...................................... Back cover Solid carbide special reamers ................................ Back cover Special economic zone ...................................................... 96 Special purpose machines .................................................. 87 Specialized material handling systems ................................. 75 Spindle nose toolings ......................................................... 17 SSM nuts ...........................................................................85 Statutory approvals ............................................................ 75 Storage systems ................................................................. 93 Switch disconnectors ........................................ Front gatefold Switches ........................................................... Front gatefold Switchgear products........................................................... 65 Switchgears ........................................................................ 11 Taps ...................................................................................63 Thermal processes............................................................... 9 Transfer trolleys.................................................................. 23 Travelling machines ............................................................ 12 Trolleys ..............................................................................21 Turning holders .................................................................. 17 Twin-screw co-rotating extruders....................................... 14 Twin-screw elements ......................................................... 14 Twin-screw extruders ........................................................ 14 Universal quick change chucks/adaptors for drilling ............. 85 Utility engineering and environmental projects ................... 75 Vacuum cleaners ................................................................ 13 Vertical boring lathes .......................................................... 87 Vertical turning lathes ......................................................... 87 Vibration ............................................................................25 Vibratory feeders ............................................................... 25 Water purifiers ................................................................... 13 Wear parts.........................................................................17 Wheel barrows.................................................................. 21 Wheels ..............................................................................21 Wire rope hoists ................................................................ 23

ADVERTISERS’ LIST

To know more about the advertisers in this magazine, refer to our ‘Advertisers’ List’ or write to us at search@infomedia18.in or call us at +91-22-3003 4640 or fax us at +91-22-3003 4499 and we will send your enquiries to the advertisers directly to help you source better.

Pg No

Advertiser

Tel. No.

E-Mail

Website

BIC

ACE Designers Ltd

+91-80-22186700 acedesigners@acemicromatic.com

www.acedesigners.co.in

93

Aravali Engineers

+91-120-2401105 varchasv@aravaliengineers.com

www.aravaliengineers.com

25

Base Vibration Isolators Pvt Ltd

+91-80-28381030 sales@baseisolators.com

www.baseisolators.com

9

Buhler (India) Pvt Ltd

+91-80-22890000 sujit.pande@buhlergroup.com

www.buhlergroup.com

FGF

C&S Electric Ltd.

+91-11-30887520 ravi.gautam@cselectric.co.in

www.cselectric.co.in

95

Care Analysis & Research Ltd

+91-22-67543456 Revati.Kasture@careratings.com

17

Ceratizit (India) Pvt.Ltd.

+91-33-24947146 info@ceratizitindia.co.in

www.ceratizit.com

29

Delta India Electronics Pvt Ltd

+91-124-4169040 gazala.masood@delta.co.in

www.deltaelectronics.co.in

13

Eureka Forbes Limited

+91-80-30251500 fandb@eurekaforbes.com

www.eurekaforbes.com

BC

G W Precision Tools India Pvt Ltd

+91-80-40431252 info@gwindia.in

www.gwindia.in

75

Grindwell Norton Limited

+91-80-28472900 Projmarketing.Gnoblr@saint-gobain.com

www.sgindiaprojects.com

63

Guhring India Private Limited

+91-80-40322500 info@guhring.in

www.guhring.in

73

Honda Siel Power Products Ltd

+91-120-2341050 ho.mktg@hssp.com

www.hondasielpower.com

BGF

Hummel Connector Systems Pvt Ltd

+91-11-26894005 info.in@hummel.com

www.hummel.com

65

Larsen & Toubro Ltd

+91-22-67525656 ss-ccd@lth.ltindia.cm

www.larsentburo.com

96

Mahindra World City Jaipur Ltd

+91-141-3003474 jaipurinfo@mahindraworldcity.com

www.mahindraworldcity.com

83

Mecshot Blasting Equipments P Ltd

+91-291-2740609 pradeep@mecshot.com

www.mecshot.com

88

Metcut Toolings Private Limited

+91-836-2333092 info@metcutindia.com

www.metcutindia.com

25

Prodaid Engineers ( P ) Ltd.

+91-80-65345363 prodaid@vsnl.net

www.prodaid.in

19

R S Components

+91-120-4519100 marketing@rs-components.co.in

www.rsindia.com

12

Reva Industries Ltd

+91-129-4185400 reva@revacranes.com

www.revacranes.com

21

Rexello Castors Pvt Ltd

+91-22-40917777 rexello@vsnl.com

www.rexellocastors.com

81

Ricon Engineers

+91-79-22744796 info@ricongroup.com

www.ricongroup.com

FIC

Rittal India Pvt Ltd

+91-80-23519792 info@rittal-india.com

www.rittal-india.com

10

Rittal India Pvt Ltd - Eplan Division

+91-22-39527200 eplan@rittal-india.com

www.eplan.in

87

Sahil Alloys & Machine Tools (P) Ltd

+91-1871-241925 surajfoundry@vsnl.com

www.sahilalloys.com

11

Siemens Ltd

+91-22-27623727 motors.in@siemens.com

www.siemens.com

67-70

SKF India Ltd

+91-20-66112435 yogendra.ghaisas@skf.com

www.skfindia.com

14

Steer Engineering Pvt Ltd

+91-80-23723309 info@steerworld.com

www.steerworld.com

61

Surface International

+91-09413329749 info@surfaceint.com

www.surfaceint.com

23

Techno Industries

+91-79-25830742 info@technoind.com

www.technoindustries.com

85

Tools & Appliances Corporation

+91-2764-233983 imi@imitoolsindia.com

www.imitoolsindia.com

18

VDMA

+91-33-23217073 vdmaindia@eth.net

www.vdma.org/nuv

5-8

Yamazaki Mazak India Pvt Ltd

+91-20-27351417 sudhir_patankar@mazakindia.com

www.mazak.com Our consistent advertisers

FGF = Front Gatefold, COC = Cover on Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BGF = Back Gatefold, BC = Back Cover

94

SEARCH - THE INDUSTRIAL SOURCEBOOK | J A N U A R Y 2 0 1 1

Vol 14 No 01

January 2011

Vol 14 No 01

January 2011

Reg No: G2 / NMD / 81 / 2011 - 2013 RNI No: 67827 / 98 Date Of Posting 22nd & 23rd Of Every Previous Month / English & Monthly.

Licence to Post at Mumbai Patrika Channel Sorting Office, Mumbai GPO., Mumbai 400 001.

Date Of Publication: 18th of Every Month

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