Description
This is a documentation is about company analysis of supreme industries.
Supreme Industries Limited (SIL)
Company Description Supreme Industries Limited is India’s largest plastic processing company. It offers the widest and most comprehensive range of plastic products in India. Company Information Headquarters Founded in Founder No. of employees Top Management Chairman Managing Director Executive Director Executive Director Shareholding pattern [2] Holders Name Promoters General Public Banks MF Other Companies Foreign Institutions Foreign NRI Foreign Ocb Others
Mumbai, Maharashtra, India 1942 Kantilal K. Mody 13986[1] B. L. Taparia M. P. Taparia S. J. Taparia V. K. Taparia No of shares 63027345 28645251 12977605 11407922 10143734 764300 39370 15748 % of share holding 49.62 22.55 10.22 8.98 7.99 0.60 0.03 0.01
Mission Statement ? To conduct business with ethical practices and WALK the TALK. ? To offer consistent products and services with uncompromising quality supported by continuous improvements and innovations thereby exceeding Customer's expectation. ? To ensure the culture of utmost respect and empowerment to individuals and be a catalyst in enhancing their competencies.
Company Profile - Initially promoted by the family of Kantilal Mody, Supreme Industries (SIL), the Taparia family took control of the company though outright purchase of shares in 1996. - The company operates in various segments viz. Plastics Piping System, Packaging Products, Industrial Components, Material handling system, Cross Laminated Polyethylene Films & Products and Furniture. SIL has also forayed into different types of plastic processing in Injection Moulding, Rotational Moulding (ROTO), Compression Moulding, Blow Moulding etc. - Handling volumes of over 200,000 tonnes of polymers annually effectively makes it the country's largest plastics processors. - It operates 19 technologically advanced manufacturing plants located across the country. Products SIL offers a wide range of products. ? Moulded Furniture ? Performance Films ? Plastic Piping System ? Storage and Material handling products ? Protective Packaging products ? XF Films and products ? Petrochemicals Financial performance 1. Standalone results Particulars (Rs. In Lacs) Year ended 30.06.2011 (Audited) 239598.19 3975.21 243573.40 3324.85 246898.25 159536.67 35933.37 15688.79 211158.83 35739.42 969.81 36709.23 4250.19 32459.04 6188.62
1 a 2 i ii iii 3 b c 4 5 6 7
Net plastic sales Net construction sales Net sales Other operating income Net income(1+a) Goods consumption Total expenses Other expenditure Total expenditure (i+ii+iii) Operating profit (2-3) Other income EBITDA (b+c) Interests EBTDA (4-5) Depreciation and Amortisation
Year ended 30.06.2012 (Audited) 285788.73 6946.00 292704.73 3825.74 296530.47 191509.95 40530.06 17300.43 249340.44 47190.03 1091.51 48281.54 5479.67 42801.87 7246.28
8 9
EBT (6-7) Tax Net profit (8-9) EPS –Basic and diluted(Rs.)
35555.59 11504 24051.59 18.93
26270.42 8773.42 17497 13.77
2. Consolidated Results Particulars
Net plastic sales Net construction sales 1 Net sales a Other operating income 2 Net income(1+a) i Goods consumption ii Total expenses iii Other expenditure 3 Total expenditure(i+ii+iii) b Operating profit (2-3) c Other income 4 EBITDA (b+c) 5 Interests 6 EBTDA (4-5) 7 Depreciation and Amortisation 8 EBT (6-7) 9 Tax 10 Net profit (8-9) 11 Share of profit in associate Consolidated net profit (10+11) EPS –Basic and diluted(Rs.)
Year ended 30.06.2012 (Audited) 285823.02 6916.00 292739.02 3825.74 296564.76 191509.95 40352.12 17513.41 249375.48 47189.28 281.29 47470.57 5480.71 41989.86 7248.51 34741.35 11504 23237.35 930.97 24168.32
Year ended 30.06.2011 (Audited) 239645.45 3975.21 243620.66 3325.09 246945.75 159554.48 35926.89 15725.19 211206.56 35739.19 448.96 36188.15 4251.04 31937.11 6191.02 25746.09 8773.42 16972.67 2611.46 19584.13
The company is mainly engaged in production of plastic products but it has started construction of commercial property as new business. Plastics Revenue Net income Net Profit Segment Profit Other Info Segment Assets Segment Liabilities Capital Expenditure Depreciation/Ammortisation 289614.47 35566.68 137736.43 67805.54 7339.86 7246.28 Construction 6916.00 4377.07 9925.23 740.64 Total 296530.47 24051.59 39943.75 147661.66 38546.18 7339.86 7246.28
SWOT Analysis for the company
Strengths ? ? Specialized in certain products. A wide range or products and vast distribution network. Opportunities Investing in technology for R&D. Strategic partnership with global players. Increase exports ? Weaknesses Limited global presence.
? ? ?
?
Threats Plastic industry in India is highly competitive.
SWOT Analysis for the industry
Strengths ? ? To source many other industries. Varied range of products on offer. Opportunities Mergers and Acquisitions. Diversification and expansion in terms of products and region. Technological advancement ? Weaknesses Negligible online presence.
? ? ?
? ? ?
Threats Low cost competitors Substitute products Cheap technology
Strategies in past 2 years In the past 2 years, SIL has primarily expanded its operations in India and that has helped it increase its manufacturing capacity. Also, it has made significant investments in developing the technological sector. Recent happenings Supreme Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 20, 2012, has recommended Final Dividend @ 225% i.e. Rs. 4.50 per share on 12,70,26,870 equity shares of Rs. 2/- each (F.V.)
Industry trends The Plastic industry chain can be classified into two primary segments, viz., the Upstream which is the manufacturing of polymers and the Downstream which is the conversion of polymers into plastic articles. The historical growth of the plastics industry over the last few decades is at an impressive 1214%, which is twice the GDP growth. The growth of the plastics industry has seen the number of processing units grow from 25,000 in the year to 2010 to 30,000 units in 2011. The overall turnover of the plastics processing industry that currently stands at Rs.85,000 crore is expected to touch Rs. 100,000 crore in the year 2012 on the basis of the expected growth of the demand potential to 12.50 million tons from the current 9 million tons. The number of processing units from the current 30,000 is expected to increased to 40,000, a 33% growth which will in-turn also increase the employment potential of the sector. Independent studies show that the industry that currently hires more than 3 million people, directly and indirectly, is expected to employ close to 4 million people in 2012 and 7 million people by the year 2015. The major driver of this growth is the increased standard of living of people in India. Also, many international companies from various sectors such as automobiles, electronics, telecommunications, food processing, packing, healthcare etc. have set-up large manufacturing bases in India. Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest growing markets in the world. According to a CRISIL Report, the world trade in Plastics is expected to reach 140 million tons in 2012 and provides a lucrative opportunity for India, but with just a 1.5% share in world export volumes, India is not in a position to capture this opportunity. The Indian Plastic Industry, going forward, needs to increase investment, upgrade quality and adopt world class technologies. Also, the total number of players in the plastic industry is huge but majority of them operate on smallscale basis. Presently, 75% are in the small-scale sector. Some of the local players include RIL, Finolex Ind., SIL, etc. PEST Analysis of plastic industry Political factor – The growth in plastic industry facilitates employment opportunities and also helps in GDP growth of the country. Government should come up with reforms to attract foreign investment. Also, assisting plastic industry will automatically help other industries which indirectly depend on plastic industry. Economic factor – Competition in the market has helped in keeping a check on rising prices of plastic products and plastic raw materials used by other industries. Social factor – A lot of plastic waste is generated due to increase in its consumption and little has been done by the industries to recycle it. Technological factor - Industry is constantly upgrading to latest technologies used by global competitors through strategic partnerships.
Competitor Jain Irrigation Systems Ltd. is one of the big competitors for Supreme Industries. It is a multinational organization with presence in 120 countries. Its subsidiary in plastic industry is Jain Plastics and Chemicals Ltd. Having a global presence has helped it grow at a faster pace compared to Supreme Industries Ltd. Sources
1 2
http://en.wikipedia.org/wiki/Supreme_Industrieshttp://economictimes.indiatimes.com/supreme-industries-ltd/shareholding/companyid-12969.cmshttp://www.supreme.co.inhttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Supreme-IndustriesLtd/509930http://cipet.gov.in/plastics_statics.html
doc_788081793.docx
This is a documentation is about company analysis of supreme industries.
Supreme Industries Limited (SIL)
Company Description Supreme Industries Limited is India’s largest plastic processing company. It offers the widest and most comprehensive range of plastic products in India. Company Information Headquarters Founded in Founder No. of employees Top Management Chairman Managing Director Executive Director Executive Director Shareholding pattern [2] Holders Name Promoters General Public Banks MF Other Companies Foreign Institutions Foreign NRI Foreign Ocb Others
Mumbai, Maharashtra, India 1942 Kantilal K. Mody 13986[1] B. L. Taparia M. P. Taparia S. J. Taparia V. K. Taparia No of shares 63027345 28645251 12977605 11407922 10143734 764300 39370 15748 % of share holding 49.62 22.55 10.22 8.98 7.99 0.60 0.03 0.01
Mission Statement ? To conduct business with ethical practices and WALK the TALK. ? To offer consistent products and services with uncompromising quality supported by continuous improvements and innovations thereby exceeding Customer's expectation. ? To ensure the culture of utmost respect and empowerment to individuals and be a catalyst in enhancing their competencies.
Company Profile - Initially promoted by the family of Kantilal Mody, Supreme Industries (SIL), the Taparia family took control of the company though outright purchase of shares in 1996. - The company operates in various segments viz. Plastics Piping System, Packaging Products, Industrial Components, Material handling system, Cross Laminated Polyethylene Films & Products and Furniture. SIL has also forayed into different types of plastic processing in Injection Moulding, Rotational Moulding (ROTO), Compression Moulding, Blow Moulding etc. - Handling volumes of over 200,000 tonnes of polymers annually effectively makes it the country's largest plastics processors. - It operates 19 technologically advanced manufacturing plants located across the country. Products SIL offers a wide range of products. ? Moulded Furniture ? Performance Films ? Plastic Piping System ? Storage and Material handling products ? Protective Packaging products ? XF Films and products ? Petrochemicals Financial performance 1. Standalone results Particulars (Rs. In Lacs) Year ended 30.06.2011 (Audited) 239598.19 3975.21 243573.40 3324.85 246898.25 159536.67 35933.37 15688.79 211158.83 35739.42 969.81 36709.23 4250.19 32459.04 6188.62
1 a 2 i ii iii 3 b c 4 5 6 7
Net plastic sales Net construction sales Net sales Other operating income Net income(1+a) Goods consumption Total expenses Other expenditure Total expenditure (i+ii+iii) Operating profit (2-3) Other income EBITDA (b+c) Interests EBTDA (4-5) Depreciation and Amortisation
Year ended 30.06.2012 (Audited) 285788.73 6946.00 292704.73 3825.74 296530.47 191509.95 40530.06 17300.43 249340.44 47190.03 1091.51 48281.54 5479.67 42801.87 7246.28
8 9
EBT (6-7) Tax Net profit (8-9) EPS –Basic and diluted(Rs.)
35555.59 11504 24051.59 18.93
26270.42 8773.42 17497 13.77
2. Consolidated Results Particulars
Net plastic sales Net construction sales 1 Net sales a Other operating income 2 Net income(1+a) i Goods consumption ii Total expenses iii Other expenditure 3 Total expenditure(i+ii+iii) b Operating profit (2-3) c Other income 4 EBITDA (b+c) 5 Interests 6 EBTDA (4-5) 7 Depreciation and Amortisation 8 EBT (6-7) 9 Tax 10 Net profit (8-9) 11 Share of profit in associate Consolidated net profit (10+11) EPS –Basic and diluted(Rs.)
Year ended 30.06.2012 (Audited) 285823.02 6916.00 292739.02 3825.74 296564.76 191509.95 40352.12 17513.41 249375.48 47189.28 281.29 47470.57 5480.71 41989.86 7248.51 34741.35 11504 23237.35 930.97 24168.32
Year ended 30.06.2011 (Audited) 239645.45 3975.21 243620.66 3325.09 246945.75 159554.48 35926.89 15725.19 211206.56 35739.19 448.96 36188.15 4251.04 31937.11 6191.02 25746.09 8773.42 16972.67 2611.46 19584.13
The company is mainly engaged in production of plastic products but it has started construction of commercial property as new business. Plastics Revenue Net income Net Profit Segment Profit Other Info Segment Assets Segment Liabilities Capital Expenditure Depreciation/Ammortisation 289614.47 35566.68 137736.43 67805.54 7339.86 7246.28 Construction 6916.00 4377.07 9925.23 740.64 Total 296530.47 24051.59 39943.75 147661.66 38546.18 7339.86 7246.28
SWOT Analysis for the company
Strengths ? ? Specialized in certain products. A wide range or products and vast distribution network. Opportunities Investing in technology for R&D. Strategic partnership with global players. Increase exports ? Weaknesses Limited global presence.
? ? ?
?
Threats Plastic industry in India is highly competitive.
SWOT Analysis for the industry
Strengths ? ? To source many other industries. Varied range of products on offer. Opportunities Mergers and Acquisitions. Diversification and expansion in terms of products and region. Technological advancement ? Weaknesses Negligible online presence.
? ? ?
? ? ?
Threats Low cost competitors Substitute products Cheap technology
Strategies in past 2 years In the past 2 years, SIL has primarily expanded its operations in India and that has helped it increase its manufacturing capacity. Also, it has made significant investments in developing the technological sector. Recent happenings Supreme Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 20, 2012, has recommended Final Dividend @ 225% i.e. Rs. 4.50 per share on 12,70,26,870 equity shares of Rs. 2/- each (F.V.)
Industry trends The Plastic industry chain can be classified into two primary segments, viz., the Upstream which is the manufacturing of polymers and the Downstream which is the conversion of polymers into plastic articles. The historical growth of the plastics industry over the last few decades is at an impressive 1214%, which is twice the GDP growth. The growth of the plastics industry has seen the number of processing units grow from 25,000 in the year to 2010 to 30,000 units in 2011. The overall turnover of the plastics processing industry that currently stands at Rs.85,000 crore is expected to touch Rs. 100,000 crore in the year 2012 on the basis of the expected growth of the demand potential to 12.50 million tons from the current 9 million tons. The number of processing units from the current 30,000 is expected to increased to 40,000, a 33% growth which will in-turn also increase the employment potential of the sector. Independent studies show that the industry that currently hires more than 3 million people, directly and indirectly, is expected to employ close to 4 million people in 2012 and 7 million people by the year 2015. The major driver of this growth is the increased standard of living of people in India. Also, many international companies from various sectors such as automobiles, electronics, telecommunications, food processing, packing, healthcare etc. have set-up large manufacturing bases in India. Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest growing markets in the world. According to a CRISIL Report, the world trade in Plastics is expected to reach 140 million tons in 2012 and provides a lucrative opportunity for India, but with just a 1.5% share in world export volumes, India is not in a position to capture this opportunity. The Indian Plastic Industry, going forward, needs to increase investment, upgrade quality and adopt world class technologies. Also, the total number of players in the plastic industry is huge but majority of them operate on smallscale basis. Presently, 75% are in the small-scale sector. Some of the local players include RIL, Finolex Ind., SIL, etc. PEST Analysis of plastic industry Political factor – The growth in plastic industry facilitates employment opportunities and also helps in GDP growth of the country. Government should come up with reforms to attract foreign investment. Also, assisting plastic industry will automatically help other industries which indirectly depend on plastic industry. Economic factor – Competition in the market has helped in keeping a check on rising prices of plastic products and plastic raw materials used by other industries. Social factor – A lot of plastic waste is generated due to increase in its consumption and little has been done by the industries to recycle it. Technological factor - Industry is constantly upgrading to latest technologies used by global competitors through strategic partnerships.
Competitor Jain Irrigation Systems Ltd. is one of the big competitors for Supreme Industries. It is a multinational organization with presence in 120 countries. Its subsidiary in plastic industry is Jain Plastics and Chemicals Ltd. Having a global presence has helped it grow at a faster pace compared to Supreme Industries Ltd. Sources
1 2
http://en.wikipedia.org/wiki/Supreme_Industrieshttp://economictimes.indiatimes.com/supreme-industries-ltd/shareholding/companyid-12969.cmshttp://www.supreme.co.inhttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Supreme-IndustriesLtd/509930http://cipet.gov.in/plastics_statics.html
doc_788081793.docx