Harrisons Malayalam Limited

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Industry Profile Company Profile Company History General and Financial Health Corporate Plans Industry Prospects

Indian Tea Industry- 172 Year old. Accounts for 31 % of Global Tea Production. Assam, West Bengal, Kerala, Tamil Nadu- Major Tea growing states. Employs 2 Million people indirectly. Major competing countries- Sri Lanka, Kenya, China, Indonesia.

Date of Establishment Revenue Market Cap Corporate Address

Chairperson MD Total Income Net Profit

: 1978 : 81.7119 ( USD in Millions ) : 1291.87835 ( Rs. in Millions ) : 24 / 1624 ,Bristow Road , Willingdon Island Kochi-682003, Kerala www.harrisonsmalayalam.com :Sanjiv Goenka :Pankaj Kapoor :Rs. 3733.258 M( year ending Mar 2011) : Rs. 39.493 M ( year ending Mar 2011)

Incorporated in 1978- primarily engaged in production of tea. Has business interests in areas of rubber, spices and horticulture crops, tissue culture, engineering and services and clearing and shipping. Part of RPG Enterprises (tyres, cables, power transmission, telecommunications, pharmaceuticals, specialty chemicals, retail and consumer marketing, hotel and tourism, entertainment and agri-business). Currently the company owns 20 estates, 8 rubber factories and 12 tea factories across Kerala, Karnataka and Tamil Nadu. HML has successfully created brands like Harrison's Gold, Mountain Mist, Surya and Spencer's.

Under horticulture crops, it produces areca nut, banana, cardamom, cocoa, coffee, coconut, pepper and vanilla as well as limited quantities of organic tea and spices. The company has employee strength of 15000 people. Business Areas Tea Rubber Engineering Services. Tissue Culture Clearing and Shipping Outlook In order to increase productivity, the company is modernizing its factories and implemented replanting programme

Liquidity
Liquidity tells us the companys ability to meet

short-term financial obligations

Liquidity Ratio
Current Ratio Quick Ratio Working Capital

2011
1.534809069 0.954761109 2384.12

2010
1.274142 0.558819 1298.64

Profitability ratios tells us how well management controls expenses and is making profit using the assets.

Profitability Ratio
Net profit ratio Return on equity Return on investment Operating profit ratio

2011

2010

0.010774105 0.012439152 0.009168087 0.014320642

0.028264 0.031288 0.023539 0.035251

Tells us how quickly the companys resources can be converted to cash or sales.

Management Ratio

2011

2010

Inventory turnover

12.86841159

9.169287

Fixed assets turnover

0.8614279

0.831767

Total assets turnover

0.8509372

0.832805

Tells us the degree and effect the company use of debt to finance its operation

Debt Ratio

2011

2010

Debt to equity ratio

0.3567882

0.32922

Proprietary ratio

0.7370347

0.752321

Dividend payout = Dividend per share/earning per share


2011 2010

=1.50/2.14 = 2/5.37

= 70.09% = 37%

Dividend payout has improved in 2011. There is more payout and less retained earnings.

Profit after tax= 394.93 L( 2011), 991.10 L ( 2010) No of equity shares 18455405( 2011) 18455405( 2010) EPS=PROFIT AFTER TAX/ NO OF EQUITY SHARES 2011= 2.14 2010 = 5.37

The companies capital structure mainly consist of equity shares.


Share capital 31 748 L

Debt capital

11 327 L

Category Promoters holding( Indian and foreign) Mutual funds

Shares held 9284005 7160

% of holding 50.31 0.04

Non resident Indians


Corporate bodies TOTAL

158906
8968956 18455405

0.87
48.59 100.00

The future plan is to grow commercially important medicinal plants. As the Global market awareness towards organic products is increasing, entry into the Organic league is expected to bring good dividends. Developing own Direct Tea Exporting Division. Maximizing revenue from inter crops.

Focus on R&D. Ensure Stability in prices. Focus on Mechanization.

Thank You..!!!

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