The Company also proved its dedication to Research and Development by continuously innovating and discovering new processes and products. In 1988, SWGL developed Industrial Gelatine Protein Colloid (IGPC) as an import substitute for the defence sector. This resulted in the Company getting the prestigious National Award for Import Substitution from the Government of India in 1992. In 1990, it improved its liming technology, a major step towards rationalisation and reduction of cost. In 1991, it established the photographic grade gelatine and in 1992 it developed two new products, namely-Haemaccell-a plasma expander used for surgical purposes, and Spray-Dried Gelatine, thus gaining an edge over its competitors. Also in 1991, it started exporting gelatine in a small way to countries like United Kingdom, Switzerland, Germany and Bangladesh.
The Company has diversified into vermiculture. It has upgraded its effluent treatment plant for constraining the odour of the raw material used in the production of gelatines.
The Shaw Wallace group, after the demise of its founder Mr. Manu Chabbria has been in the process of selling off its businesses and has already exited the flagship company ShawWallace & Company Ltd., which has been bought by Vijay Mallaya's UB Group.
The other companieswhich have been sold off include Hindustan Dorr Oliver Ltd., and Mather & Platt Pumps Ltd.. Recently they sold Falcon Tyres Ltd to wealth sea pte ltd at a price of 151.70 currently stock is trading at 850 rs. The next company in line for the sell off could be Narmada Gelatines Ltd.
The company has an installed capacity of 2750 mtpa for Gelatine,4200 mtpa for Ossein, 10,500 mtpa for Dicalcium Phosphate and 2500mtpa for Bone Meal, on a single shift basis.
Gelatine & its Consumers
Gelatin is a niche product industry derived from the protein, collagen.The Gelatin industry at present consists of three large players whocontrol 58% of the world market and a small group of about 25companies who share the balance of the world market. More than 80%of gelatin production is undertaken in high cost continents andcountries such as North America, Europe and Japan.
The principal end-users of gelatine are the food, pharmaceutical, photographic industries, with users in technical applications.
The largest market for gelatine is the food and food processing industry. The consumption of gelatine for this industry (ediblegelatine) is estimated to represent some 61 % of the total market. This market also includes the nutraceutical segment, which is the market for health supplements, vitamin capsules and tablets.
The second largest market for gelatine is the pharmaceutical industry with an estimated consumption of around 21 % of the total market.
The photographic industry is the third largest consumer of gelatine, absorbing some 13% of the total market in various applications. In addition to the three types of gelatine produced for the above-mentioned industries, technical gelatine is also produced. This is used in the manufacture of abrasive papers, in sizing paper and textiles, and in the production of printer's rollers and matches.
COMPANY FIN DATA:
Equity Share Capital 4.03 Book Value 95.23
DIVIDEND 25% Market Cap 27.2 cr
Share holding: Promoters hold 75% Private Corporate Bodies holds 7.01% public holds 17.47%
DEBIT: it has only 1.8 cr debit
LAST 5 YEARS FINANCIAL DATA
| | Mar ' 09 | Mar ' 08 | Mar ' 07 | Mar ' 06 | Mar ' 05 |
| | | | | | |
| Sales | 68.98 | 56.22 | 52.86 | 50.33 | 46.11 |
| Other Income | 1.03 | 1.37 | 1.19 | 1.26 | 1.87 |
| Stock Adjustment | 0.94 | -2.38 | 0.25 | -0.99 | -0.79 |
| Raw Material | 30.92 | 27.71 | 25.58 | 25.54 | 22.82 |
| Power And Fuel | 12.16 | 11.39 | 9.87 | 9.90 | 9.35 |
| Employee Expenses | 6.97 | 6.90 | 6.59 | 7.51 | 6.20 |
| Excise | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Admin And Selling Expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Research And Development Expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Expenses Capitalized | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other Expenses | 7.16 | 5.43 | 5.85 | 5.26 | 5.27 |
| Provisions Made | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Operating Profit | 10.83 | 7.17 | 4.72 | 3.11 | 3.26 |
| Interest | 0.46 | 0.29 | 0.27 | 0.41 | 0.69 |
| Gross Profit | 11.40 | 8.25 | 5.64 | 3.96 | 4.44 |
| Depreciation | 1.48 | 1.36 | 1.30 | 1.58 | 1.27 |
| Taxation | 3.49 | 2.48 | 1.76 | 0.14 | 1.20 |
| Net Profit / Loss | 5.86 | 4.34 | 2.38 | 0.93 | 1.87 |
| Extra Ordinary Item | 0.00 | -0.07 | -0.20 | -1.31 | 0.10 |
| Prior Year Adjustments | -0.57 | 0.00 | 0.00 | 0.00 | 0.00 |
| | | | | | |
| Equity Capital | 4.03 | 4.03 | 4.03 | 4.03 | 4.03 |
| Equity Dividend Rate | 25.00 | 20.00 | 15.00 | 11.00 | 0.00 |
| Agg.Of Non-Prom. Shares (in Lacs) | 10.08 | 10.08 | 9.43 | 8.43 | 8.43 |
| Agg.Of Non PromotoHolding(%) | 25.00 | 25.00 | 23.39 | 20.91 | 20.19 |
| OPM(%) | 15.70 | 12.75 | 8.92 | 6.17 | 7.07 |
| GPM(%) | 16.28 | 14.32 | 10.43 | 7.67 | 9.25 |
| NPM(%) | 8.37 | 7.53 | 4.40 | 1.80 | 3.89 |
| EPS (in Rs.) | 14.54 | 10.77 | 5.91 | 2.31 | 4.64 |
CAUSION: LIQUIDITY IS MAIN CONCERN FOR THE STOCK
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