MERINO INDUSTRIES LIMITED UNLISTED SHARE
About Merino Industries Limited
Merino Industries Limited is a versatile manufacturer of Interior Solutions with a wide range of products for homes, offices, commercial and public areas. Merino Industries Limited is one of the world’s leading manufacturers and exporters of decorative laminates for interior applications. The Merino group is not limited to laminates and panel products. The company has also extended its arms in Information Technology and Food & Agro products industry.
Merino Industries Limited is headquartered in Kolkata, West Bengal, and has a presence in over 80 countries across 5 continents. It has a network of more than 1,080 dealers across pan India.
The company entered the business of Interior solutions in 1974 and launched plywood as its first product. Merino Industries Limited possesses 4 Manufacturing facilities. The company’s first manufacturing unit was established in Hapur, Uttar Pradesh. Later they built three more facilities in ‘Hosur, Tamilnadu’, ‘Dahej, Gujarat’, and in ‘Rohad, Haryana’. The Group possesses India’s largest manufacturing laminates capacity of 215 Lakh sheets per annum.
Some of the prominent places where products of Merino Industries Limited are used are ‘Golden Temple, Amritsar’, ‘Hilton Hotels, Jaipur’, ‘Delhi Metro Railway Corporation’, ‘IIM Ahmedabad’, and many more.
INCORPORATION DETAILS
CIN | U51909WB1965PLC026556 |
Registration Date | 29 July 1965 |
Category / Sub-Category of the Company | Company Limited by Shares |
Address of the Registered office and contact details | 5, Alexandra Court, 60/1, Chowringhee Road, Kolkata-700020, West Bengal Tel: 033-22901214 E-mail: merinokol@merinoindia.com Website: www.merinoindia.com |
Name, Address and Contact details of Registrar and Transfer Agent, if any | C B Management Services (P) Limited, P-22, Bondel Road, Kolkata- 700019, Tel: 033-2280-6692/93/94, 03340116700/11/16/18/23/28; E-mail: rta@cbmsl.com |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Decorative Laminates | 4823-90-19 | 74.61% |
Furniture & Panel Products | 94036000 | 21.22 |
BOARD OF DIRECTORS
Mr. Rup Chand Lohia (Executive Chairman)
Mr. Prakash Lohia (Managing Director)
Miss Ruchira Lohia (Wholetime Director)
Mr. Prasan Lohia (Wholetime Director)
Mr. Bikash Lohia (Wholetime Director)
Mr. Madhusudan Lohia (Wholetime Director)
Mr. Nripen Kumar Dugar (Wholetime Director)
Dr. Gautam Bhattacharjee (Independent Director)
Mr. Sisir Kumar Chakrabarti (Independent Director)
Mr. Bama Prasad Mukhopadhyay (Independent Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
Name of the Company | Subsidiary | % of shares held |
Merino Panel Products Limited | Subsidiary | 74.65 |
MERINO INDUSTRIES LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 1,03,69,600 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE662B01017 |
PAN No.: | AAACC9186C |
Lot Size: | 50 Shares |
Last Traded Price: | Rs. 3050 |
Market Cap: | Rs. 3162.73 Crore |
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholders’ Name | No. of Shares | % of total Shares of the company |
1 | Promoter’s Shareholding | 98,34,472 | 94.84 |
2 | Public Shareholding | 5,35,128 | 5.16 |
| Total | 1,03,69,600 | 100 |
INDUSTRY OUTLOOK
The global decorative laminates market is estimated to reach US$7.97 billion at a CAGR of over 5.0% by the end of 2025. The growth of the global market is primarily driven by the increasing application of decorative laminates in the construction industry. In addition, the low maintenance and installation costs of decorative laminates are also expected to fuel the global market growth. Furthermore, the technological advancements in printing techniques and manufacturing environmentally-friendly laminates are likely to offer immense growth opportunities for the market players. However, the volatile raw materials prices are expected to hamper the growth of the global decorative laminates market in the coming years.
The decorative laminates market in India has witnessed significant growth in recent years. Decorative laminates, due to their excellent properties, such as water resistance, huge variety, durability,microbe-resistant, and ease of maintenance are used in a wide range of applications such as cabinets, furniture, countertops, and wall panels. The demand for general-purpose decorative laminates is high in all regions due to their easy availability and the high disposable income of consumers. Decorative laminates are used in various end-use sectors such as residential, non-residential, and transportation. Based on the end-use sector, the non-residential segment is projected to lead the decorative laminates market during the forecast period. This is mainly due to the high volume consumption of decorative laminates in non-residential buildings as compared to residential buildings.
The increasing focus of the government for low-cost housing and infrastructure development, coupled with the growth in the construction and furniture industry in the country is believed to benefit the expansion of the Indian plywood and laminates market. Additionally, increasing demand for laminates in various end user industries, such as the furniture industry, real estate industry, coupled with the rapid urbanization in the country are some of the factors anticipated to promote towards the growth of the Indian laminates market. Moreover, the Goods and service tax (GST) has resulted in lowering the price difference of the plywood and laminates sector between the organized and unorganized sectors, which is also anticipated to be one of the major key factors contributing towards the growth of the Indian plywood and laminates market.
KEY FINANCIALS OF MERINO INDUSTRIES LIMITED (In Rs. Lakhs)
Particulars | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 1,47,372.22 | 1,47,212.68 | 1,21,879.24 | 1,13,765.61 |
EBITDA | 22,053.22 | 24,113.33 | 21,061.00 | 21,340.60 |
EBITDA margin | 14.96% | 16.38% | 17.28% | 18.76% |
Finance Cost | 1,834.19 | 1,731.16 | 1,421.14 | 1191.42 |
Depreciation | 5,976.49 | 4,235.38 | 3756.6 | 2949.8 |
Other Income | 1,519.35 | 1,963.10 | 2,029.62 | 2,636.02 |
Profit Before Tax | 15,761.89 | 20,109.89 | 17,912.88 | 19,835.40 |
Total Tax | 2,967.99 | 6,026.95 | 5,859.49 | 6,233.18 |
Profit After Tax (PAT) | 12,793.90 | 14,082.94 | 12,053.39 | 13,602.22 |
PAT margin | 8.59% | 9.44% | 9.73% | 11.69% |
EPS | 108.58 | 121.94 | 102.98 | 115.94 |
BALANCE SHEET OF MERINO INDUSTRIES LIMITED (In Rs. Lakhs)
Particulars | 2020 | 2019 |
ASSETS | ||
NON CURRENT ASSETS | ||
Tangible assets | 55,153.16 | 48,232.55 |
Intangible assets | 163.27 | 234.34 |
Financial assets | 16,663.47 | 10,684.27 |
Other non current assets | 307.97 | 607.05 |
TOTAL NON CURRENT ASSETS | 72,287.87 | 59,758.21 |
CURRENT ASSETS | ||
Inventories | 43,932.13 | 39,355.45 |
Biological assets other than bearer plants | 658.21 | 679.86 |
Financial assets | 2,919.69 | 3,495.31 |
Trade receivables | 17,746.13 | 19,624.63 |
Cash and cash equivalents | 4,266.89 | 1,205.12 |
Tax assets | 2,278.73 | 1,090.62 |
Other current assets | 3,377.27 | 3,191.09 |
TOTAL CURRENT ASSETS | 75,179.05 | 68,642.08 |
TOTAL ASSETS | 1,47,466.92 | 1,28,400.29 |
EQUITY AND LIABILITIES | ||
EQUITY | ||
Equity share capital | 1,047.03 | 1,047.03 |
Other equity | 82,104.39 | 71,123.09 |
Non controlling Interest | 9,492.53 | 8,084.00 |
TOTAL EQUITY | 92,643.95 | 80,254.12 |
LIABILITIES | ||
NON CURRENT LIABILITIES | ||
Borrowings | 6,600.61 | 3,023.11 |
Financial liabilities | 1,145.85 | 14.81 |
Tax liabilities | 3,647.26 | 4,670.44 |
Other non current liabilities | 90.40 | 96.49 |
TOTAL NON CURRENT LIABILITIES | 11,484.12 | 7,804.85 |
CURRENT LIABILITIES | ||
Borrowings | 11,444.96 | 15,439.36 |
Trade payables | 19,111.81 | 16,925.69 |
Financial liabilities | 9,791.62 | 5,605.74 |
Other current liabilities | 2,084.71 | 1,536.98 |
Provisions | 892.00 | 494.35 |
Tax liabilities | 13.75 | 339.20 |
TOTAL CURRENT LIABILITIES | 43,338.85 | 40,341.32 |
TOTAL LIABILITIES | 54,822.97 | 48,146.17 |
TOTAL EQUITY AND LIABILITIES | 1,47,466.92 | 1,28,400.29 |
DIVIDEND AND RETAINED EARNINGS
Particulars | 2020 | 2019 | 2018 |
Dividend (In Rs.) | 7.00 | 3.50 | 3.50 |
Retained Earnings (Consolidated) (In Rs. Lakhs) | 67,386.43 | 58,200.70 | 47,276.73 |
PERFORMANCE OF THE COMPANY
In FY 2019-20, Merino launches 3 products, namely ‘Ply Meister’, ‘Infusio’, ‘Impreza’.
The company has successfully maintained the credit rating of AA- in 2019-20.
Consolidated Revenue from Operations in FY 2020 of Merino Industries Limited remained almost the same as revenue from operations in FY 2019. The Consolidated Total income for FY 2020 stood at Rs. 1,48,891.57 Lakhs as compared with the previous year's figures of Rs. 1,49,175.78 Lakhs.
During FY 2020, revenue (including inter-segment transfer) generated from Laminates Segment was Rs. 75,314.33 Lakhs as against Rs.73,452.42 Lakhs, Panel Products Rs. 21,416.06 Lakhs as against Rs. 19,889.12 Lakhs and Potato Flakes Rs. 6,098.70 Lakhs as against. 6,795.41 Lakhs.
EBITDA of the company has decreased by 8.54% from Rs. 24,113.33 Lakhs in FY 2019 to Rs. 22,053.22 Lakhs in FY 2020. As revenue was almost the same, it can be easily assessed that EBITDA margins went down from 16.38% in FY 2019 to 14.96% in FY 2020.
Merino Industries Limited booked a profit of Rs. 12,793.9 Lakhs in FY 2020, 9% less than the profit of Rs. 14,082.94 Lakhs for FY 2019.
EPS for FY 2020 for the company’s shareholders was Rs. 108.58, against EPS of Rs. 121.94 for FY 2019.
The company’s total borrowings in FY 2020 were Rs. 18,045.57 Lakhs. The debt-to-equity ratio of the company is 0.1 for FY 2020. This shows that the company has more than enough capacity to pay all its debt at once.
The Current Ratio of the company is 1.73, stating that the company is maintaining good liquidity.
Merino Industries Limited has consistently and progressively given dividends to its shareholders. For FY 2020, the company gave a dividend of Rs. 7 per equity share.
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