multi-brand. multi-product. multi-region. multi-national the new jvl agro.

107 Pages·2012·1.93 MB·English

MULTI-BRAND.
MULTI-PRODUCT.
MULTI-REGION.
MULTI-NATIONAL
THE NEW JVL AGRO.
JVL Agro Industries Limited
Annual report 2011-12
Forward-looking statement
In this annual report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take
informed investment decisions. This report and other statements – written and oral –that we periodically make contain forward-
looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever
possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’,
‘believes’ and words of similar substance in connection with any discussion of future performance. We cannot guarantee that
these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement
of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties
materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated,
estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise
Contents
Corporate identity 02 Corporate information 42
Milestones 04 Directors’ profile 43
Managing Director’s review 14 Directors’ Report 44
Business model 16 Corporate Governance 50
Management Discusion and Analysis 20 Auditors’ Report 61
Business drivers 27 Balance Sheet 64
Financial review 34 Statement of Profit and Loss 65
Risk management 38 Notes 66
Corporate social responsibility 40 Cash Flow Statement 80
EVEN AS YOU ARE READING THIS,
A ‘JHOOLA’ PRODUCT HAS PROBABLY
BEEN SOLD SOMEWHERE ACROSS
NORTH, CENTRAL AND EAST INDIA.
9.40 KG EVERY SECOND. 296487
TONNES DURING THE FINANCIAL
YEAR UNDER REVIEW.
MAKING IT MORE THAN JUST A
COOKING MEDIA PRODUCT. AN
INTEGRAL PART OF THE LIVES
OF MILLIONS.
WHICH EXPLAINS WHY EVEN IN A
CHALLENGING AND VOLATILE
2011-12, THE COMPANY REPORTED
A 35.65 PER CENT INCREASE IN
REVENUES AND A 13.73 PER CENT
GROWTH IN PROFIT AFTER TAX OVER
THE PREVIOUS YEAR.
JVL Agro’s is a story of remarkable transformation.
From a long standing manufacturer of hydrogenated
vegetable oil (vanaspati ghee). To one of the fastest
growing vegetable oil capacities in India today.
From a single location as recent as 2006 to four
locations this year.
From the domestic to the international.
A multi-brand, multi-product, multi-region, multi-
country and multi-vertical Company serving the second
most populous country in the world.
Vision 1989, JVL Agro has grown into the Mustard oil and blended oil
To delight the consumer through a largest single-unit manufacturer of Fatty acid
complete vegetable oils solution vanaspati in India today ( 700 TPD) De–oiled Cake
through continuous research and The company also possesses a
development in healthier oil varieties, cumulative vegetable oils capacity of Presence
leading to a single-stop convenience 1500 TPD The Company’s refined oil and
The Company is managed by vanaspati manufacturing units are
Mission
Chairman Mr. D.N. Jhunjhunwala, Mr. located in Varanasi (Uttar Pradesh) and
To extend leadership from saturated S.N. Jhunjhunwala (Managing Director), Dehri-on-Sone (Bihar) and mustard oil
fats to the entire vegetable oils segment Mr Adarsh Jhunjhunwala (Wholetime manufacturing unit in Alwar (Rajasthan)
in the first stage and to agro-based
Director) and executives Headquartered in Varanasi (Uttar
premium food products thereafter,
Pradesh), the Company has offices in
from a single region in India to a global Products
Alwar, Kolkata, Mumbai and Delhi as
manufacturing and marketing presence Vanaspati (hydrogenated vegetable well as a subsidiary in Singapore
oil)
Parentage The Company’s shares are actively
Incorporated as a small-scale Refined palm oil traded on the Bombay Stock Exchange
manufacturer of hydrogenated Refined soybean (BSE), the National Stock Exchange
vegetable oil at 25 tonnes per day in Saturated fats (NSE), Delhi Stock Exchange (DSE) and
2IJVL Agro Industries Limited
the UP Stock Exchange (UPSE). RBD palmolien under Jhoola and vanaspati brand in 2006’
The Company’s products are available Payal brands Recognised as the ‘Emerging
in 18 Indian states and two union Refined soybean oil under Jhoola company of the year 2007’ by Globoil
territories across thousands of retail Health brand Recognition as ‘Globoil man of the
outlets. Mustard oil under Jhoola, Joohi and year 2008’ for Mr. S. N. Jhunjhunwala
Shankar brands (Managing Director) for his industry
Multi-brand
Blended oil under the Joohi Active contribution.
The Company markets products under
brand Globoil India Legend 2011 award
the Jhoola, Payal and Joohi umbrella
received by the Chairman Sri D. N.
brands.
Accreditations
Jhunjhunwala.
Vanaspati is marketed under the ISO 9001-2008 certified
Jhoola brand
Recognised as the ‘Fastest-growing
Annual Report 2011-12 I3
Acquired a Rajasthan-based
Milestones
mustard seed-crushing and refining
plant
Invested in Adamjee Extraction,
Sri Lanka, for import of saturated
Commenced Switched vanaspati Increased vanaspati fats under the Jhoola brand
production with a processing from chemical production capacity to
Product sales in the states of UP,
25-TPD capacity to state-of-the-art 200-TPD
Bihar, Jharkhand, Madhya Pradesh,
mechanical technology
Uttaranchal and Chhattisgarh.
1990 1993 1995 1999 2000 2005 2006
Achieved 100-TPD Installed a 60-TPD refined oil Introduced a fractionation
production at unit at Jaunpur; introduced unit of 200-TPD capacity
Varanasi crude soybean and
palmolein oil
4IJVL Agro Industries Limited
Capacity of mustard seed crushing
increased from 200 to 400 MTPD,
solvent extraction plant capacity
increased from 250 to 450 MTPD and
Commissioned an edible oil
storage capacity of mustard seed
refinery/ saturated fats unit in
increased (by 6400 MT) at Alwar unit.
Bihar
Commencement of production from
Commence production of a new
the biggest unit (1200 MTPD) of the
refinery in Uttar Pradesh, plant
Commenced development of Company at Haldia.
supplied by Alfa Laval with the
the Haldia Unit with 1200
Introduction of refined oil in the
latest technology.
MTPD refining capacity and
mustard oil market of Eastern India of
Initiated de-oiled cake exports captive power plant.
the Company.
2007 2008 2009 2010 2011 2012
Emerged as the first Uttar Commenced commercial Company became listed on
Pradesh vanaspati manufacturer to production from the Bihar the National Stock
commission a 3-MW power plant unit Exchange of India Ltd.
Formed a wholly-owned Introduced products in
Singapore subsidiary under JVL Jammu and Kashmir,
Overseas Pte Ltd Himachal Pradesh and
Introduced products in the West Bengal
North-eastern states.
Performance highlights, 2011-12
Financials Operations Corporate
Revenue increased 35.65 % from Saturated fats (vanaspati) production Completed the doubling of Alwar seed
` 2180.79 cr in 2010-11 to 124570.52 MT in 2010-11 to 94910 crushing capacity to 400 TPD
`2958.23 cr MT in 2011-12.* Acquired 500 acres in Bihar to
EBIDTA increased 20.50 % from Refined oils production increased commission an agro-based complex
`86.14 cr in 2010-11 to `103.80 cr 23.02 % from 125293.54 MT in Set up a subsidiary in Indonesia
Post-tax profit surged 13.73 % from ` 2010-11 to 154136 MT Signed an agreement to acquire
50.02 cr in 2010-11 to `56.89 cr Mustard oil production increased 12500 acres land in Ethiopia (with the
Cash profit strengthened 13.47% from 22.26 % from 41483.70 MT in 2010-11 option to acquire 62,000 acres)
`58.63 cr in 2010-11 to `66.53 cr to 50718 MT
*In view of increasing demand the
Company is manufacturing more refined
oil than Vanaspati.
Annual Report 2011-12 I5
Attractive past.
Stable present.
Exciting future.
4 9 3 2 4 0 2 2 9 3 3 3
1 7 2 1 1 8 2 0 8 7 6 5
4. 0. 8. 3. 6. 3. 9. 0. 6. 5. 8. 6.
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Net sales (`cr) EBIDTA (`cr) Profit after tax Cash profit
(`cr) (` cr)
6IJVL Agro Industries Limited
4 9 3 3 1 4 0 0 0 3 2 9
8 8 4 1 4 7 2 0 8 3 0 3
2. 3. 4. 5. 0. 4. 4. 3. 9. 4. 2. 7.
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Earnings per share Book value per Gross block Networth
(`) share (`) (`cr) (`cr)
Annual Report 2011-12 I7
From the rural
to the global.
8IJVL Agro Industries Limited