RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits
RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits
6. Manufacturing Agreement Parties: Globus Spirits Limited C-631 New Friends Colony New Delhi – 110 065 & Imperial Spirits Limited Govindhapuram Chittur Taluka Palakkad District Kerala Date: 01.04.2009 Period: 01.04.2009 – 31.03.2010 Imperial Spirits Limited (ISL) shall manufacture, process and pack IMFL Products of brands of GSL as follows at their Distillery/Bottling Unit at kerala : i. Black Lace XXX Rum ii. Goldee Fine Brandy iii. Samurai Grape Brandy iv. Hannibal Legendary XXX Rum v. Academy Deluxe Brandy vi. Academy XXX Rum vii. Samurai XXX Rum viii. Globus Premium VSOP Brandy ix. Trojan XXX Rum This Agreement may be renewed for further periods upon such terms and conditions as may be mutually agreed upon. The terms will be reviewed every year and suitable changes made on mutual consent. • The Company had on 01.03.2008 entered into a Manufacturing Agreement with The Devicolam Distilleries Limited (DDL), Parakkamugal, Kusumagiri, P.O. Kakkanad, Kochi – 682030, Kerala for manufacture, process and pack of IMFL Products of such brands as specified by the Company at DDL’s Distillery/Bottling Unit. The Brands that were manufactured by DDL were Samurai Grape Brandy, Goldee Fine Brandy and Black Lace XXX Rum. The said Manufacturing Agreement was valid for the period from 01.03.2008 to 31.03.2012. The Company has terminated the Manufacturing Agreement entered into with The Devicolam Distilleries Limited, Parakkamugal, Kusumagiri, P.O. Kakkanad, Kochi – 682030, Kerala w.e.f 01.02.2009 in terms of clause 7.1 of the said Manufacturing Agreement. • The Company had on 15.04.2007 entered into a Manufacturing & Usership Agreement with Associated Distilleries Limited (ADL), C-631 New Friends Colony, New Delhi – 110 065 for manufacture of such brands as specified by the Company to be manufactured at the bottling plants of ADL at Haryana. The Brands that were bottled by ADL for Haryana, Chandigarh and Kerala were as follows : For Haryana : i. Samurai Whisky ii. White Lace Duet Gin iii. Hannibal Legendary Rum iv. White Lace Gin For Chandigarh: i. Samurai Gold Whisky ii. White Lace Vodka iii. Hannibal Legendary Rum iv. White Lace Duet Gin v. White Lace Gin For Kerala: i. Samurai Grape Brandy ii. Black Lace XXX Rum The said Manufacturing & Usership Agreement was valid for the period from 15.04.2007 to 31.03.2010. The Company has terminated the Manufacturing & Usership Agreement entered into with Associated Distilleries Limited, C-631 New Friends Colony, New Delhi – 110 065 w.e.f 27.03.2009 as the Company has started bottling of its own IMFL brands at Haryana and 103
hence the Company would be marketing and selling its own products in the states mentioned on its own. • The Company has entered into a Lease Agreement dated January 30, 2009 with Jagatjit Industries Ltd. (JIL), having its registered office at Post Office : Jagatjit Nagar (Hameera), Dist. : Kapurthala, Punjab – 144802 and corporate office at 4 th Floor, Bhandari House, 91 Nehru Place, New Delhi – 110019 for lease of a part of the Company’s factory to JIL for the purpose of manufacture of IMFL. The Lease shall be for a period of 5 (Five) years and shall commence on the date the D-2 license is granted by the Excise Commissioner of State of Haryana to JIL. The Lease Agreement will become operative only after JIL received the D-2 License, duly issued by the Excise Commissioner, State of Haryana as approval for the partial subleasing of the Company’s facilities for IMFL bottling to JIL for manufacture of JIL’s Indian Made Foreign Liquor (IMFL) brands. JIL will operate and manage the Bottling Plant and manufacture and sell the IMFL under its own trade name and/or brand name. JIL would be paying a monthly lease rental of Rs. 150000/- (Rupees One Lac Fifty Thousand only) per month to the Company. EXPORT OBLIGATIONS: The Company has no export obligations pending as of now. SWOT ANALYSIS – As envisaged by the Company’s management. STRENGTHS • Geographical presence in 6 States: Haryana, Rajasthan, Kerala, Andhra Pradesh, Karnataka & Uttar Pradesh • Multifeed Stock (Grain and Molasses) • Low Term Loan outstanding of Rs.169.81 lakhs as on June 30, 2009 • Knowledge of Industry - Commercial & Technical • Country Liquor Volumes: 4.14 lakhs cases / month - 5 Million cases per annum • Low Overhead cost • Bottling high quality IMFL products • Developed and launched own IMFL Brands OPPORTUNITIES • Potential to add capacity in both locations. • Fuel Ethanol (world wide phenomenon) • Further products possible – Animal Feed, CO2, Bio-fertilizers and Power • Medium sized Distilleries in both locations. • Acquiring/Developing IMFL Brands • Country Liquor Branding WEAKNESSES • No Brand presence in IMFL segment. • Lack of nation-wide presence. • Limited distribution network of IMFL THREATS • Effluent Related Issues as the Central Pollution Control Board have strict pollution control norms and as per the norms set by the Central Pollution Control Board all the distilleries have to follow zero discharge of water. Though at present both the distilleries of the Company have installed the necessary equipments for zero discharge facility, but there may be stricter norms in future and the distilleries may need to further strengthen the effluent issues of water and air • Low Cost Manufacturing units outselling Company’s produce in the market • More Distilleries coming up attached to Sugar Mills • New Plants with better efficiencies • Market Perception and sustainability BUSINESS STRATEGY The Company is engaged in the business of manufacture, marketing and sale of Industrial Alcohol, Country Liquor, and Indian Made Foreign Liquor (IMFL). The Company has established 104
- Page 79 and 80: BASIS FOR ISSUE PRICE The Issue Pri
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- Page 136 and 137: Date of Agreement: 25.3.1995 vide D
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- Page 150 and 151: 22.08.1995 • Change in Authorised
- Page 152 and 153: DIN: 00769308 01.08.2009) Term: 3 y
- Page 154 and 155: Limited in 1983 and later promoted
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- Page 166 and 167: Chart 1: BEHROR UNIT, RAJASTHAN 139
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- Page 172 and 173: PROMOTERS Mr. Ajay Kumar Swarup and
- Page 174 and 175: Sl. No. Name of Shareholder No. of
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6. Manufacturing Agreement<br />
Parties:<br />
<strong>Globus</strong> <strong>Spirits</strong> Limited<br />
C-631<br />
New Friends Colony<br />
New Delhi – 110 065<br />
&<br />
Imperial <strong>Spirits</strong> Limited<br />
Govindhapuram<br />
Chittur Taluka<br />
Palakkad District<br />
Kerala<br />
Date:<br />
01.04.2009<br />
Period:<br />
01.04.2009 – 31.03.2010<br />
Imperial <strong>Spirits</strong> Limited (ISL) shall<br />
manufacture, process and pack IMFL<br />
Products of brands of GSL as follows<br />
at their Distillery/Bottling Unit at<br />
kerala :<br />
i. Black Lace XXX Rum<br />
ii. Goldee Fine Brandy<br />
iii. Samurai Grape Brandy<br />
iv. Hannibal Legendary XXX<br />
Rum<br />
v. Academy Deluxe Brandy<br />
vi. Academy XXX Rum<br />
vii. Samurai XXX Rum<br />
viii. <strong>Globus</strong> Premium VSOP<br />
Brandy<br />
ix. Trojan XXX Rum<br />
This Agreement may<br />
be renewed for further<br />
periods upon such<br />
terms and conditions<br />
as may be mutually<br />
agreed upon. The<br />
terms will be reviewed<br />
every year and<br />
suitable changes made<br />
on mutual consent.<br />
• The Company had on 01.03.2008 entered into a Manufacturing Agreement with The<br />
Devicolam Distilleries Limited (DDL), Parakkamugal, Kusumagiri, P.O. Kakkanad, Kochi –<br />
682030, Kerala for manufacture, process and pack of IMFL Products of such brands as<br />
specified by the Company at DDL’s Distillery/Bottling Unit. The Brands that were<br />
manufactured by DDL were Samurai Grape Brandy, Goldee Fine Brandy and Black Lace XXX<br />
Rum. The said Manufacturing Agreement was valid for the period from 01.03.2008 to<br />
31.03.2012.<br />
The Company has terminated the Manufacturing Agreement entered into with The Devicolam<br />
Distilleries Limited, Parakkamugal, Kusumagiri, P.O. Kakkanad, Kochi – 682030, Kerala w.e.f<br />
01.02.2009 in terms of clause 7.1 of the said Manufacturing Agreement.<br />
• The Company had on 15.04.2007 entered into a Manufacturing & Usership Agreement with<br />
Associated Distilleries Limited (ADL), C-631 New Friends Colony, New Delhi – 110 065 for<br />
manufacture of such brands as specified by the Company to be manufactured at the bottling<br />
plants of ADL at Haryana. The Brands that were bottled by ADL for Haryana, Chandigarh and<br />
Kerala were as follows :<br />
For Haryana :<br />
i. Samurai Whisky<br />
ii. White Lace Duet Gin<br />
iii. Hannibal Legendary Rum<br />
iv. White Lace Gin<br />
For Chandigarh:<br />
i. Samurai Gold Whisky<br />
ii. White Lace Vodka<br />
iii. Hannibal Legendary Rum<br />
iv. White Lace Duet Gin<br />
v. White Lace Gin<br />
For Kerala:<br />
i. Samurai Grape Brandy<br />
ii. Black Lace XXX Rum<br />
The said Manufacturing & Usership Agreement was valid for the period from 15.04.2007 to<br />
31.03.2010.<br />
The Company has terminated the Manufacturing & Usership Agreement entered into with<br />
Associated Distilleries Limited, C-631 New Friends Colony, New Delhi – 110 065 w.e.f<br />
27.03.2009 as the Company has started bottling of its own IMFL brands at Haryana and<br />
103
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