FIEM Industries Ltd.
Snapshot
Registered Office Address
D-34, DSIDC Packaging Complex, Kirti Nagar, New Delhi – 110015.
Phone
91-11-25927919 / 7820
Fax
91-11-25927740
Email
investor@fiemindustries.com
Website
http://www.fiemauto.com/
Issue Open
21/09/2006 Issue Close 27/09/2006 Issue Size 4100000 Issue Type Book Building Face Value Rs.10/- Price Range Rs.125/- to Rs.145/- Tick Size Re 1/- Market Lot 45 Minimum Order Qty 45 Listing Stock Exchange Mumbai, NSE Registrar To The Issue Intime Spectrum Registry Ltd. Book Running Lead Managers IL&FS Investsmart Ltd. ",1]
);
//-->
21/09/2006
Issue Close
27/09/2006
Issue Size
4100000
Issue Type
Book Building
Face Value
Rs.10/-
Price Range
Rs.125/- to Rs.145/-
Tick Size
Re 1/-
Market Lot
45
Minimum Order Qty
45
Listing Stock Exchange
Mumbai, NSE
Registrar To The Issue
Intime Spectrum Registry Ltd.
Book Running Lead Managers
IL&FS Investsmart Ltd.
Analysis Background : FIEM Industries Ltd. (FIL) was incorporated as Rahul Auto (P) Ltd in 1989. Its name was changed to FIEM Industries (P) Ltd in 1992. Subsequently in 1993 it was\n converted into a public limited company and its name was changed to the present name. FIL is a manufacturer of automotive lighting & signaling equipments and rear view mirrors. Its major business comes from the two-wheeler industry. Its diversified products portfolio ranging from rear view mirrors, lamps, wheel covers, warning triangle, complete assembly, mudguards and various sheet metal & plastic parts is catering to the needs of almost all segments of automobile industry viz., two-wheelers, three wheelers, LCVs, HTVs and tractors. Current installed capacity of automotive lighting & signaling equipments is 18 million pieces, for rear view mirrors is 5.5 million pieces and for sheet metal parts is 8 million pieces. FIL set up a manufacturing unit having full-fledged testing laboratory at\n Sonepat, Haryana (Unit I) for manufacturing mirror and automotive lamps in 1993-94. It set up manufacturing units II and III in FY2004 and FY2005 respectively in Tamil Nadu for manufacturing lamps, indicators, reflex reflectors and rear view mirrors. Unit IV was also set up in FY2005 in Karnataka for manufacturing value added products like assembly for rear fender for two wheelers. Presently, FIL is conducting trial at its Export oriented unit (EOU), Unit V at Tamil Nadu for manufacturing mirror plates, mirror assembly, lamps and indicators. FIL is also in process of setting up Unit VI at Himachal Pradesh for manufacturing the components for two and four wheeler segment. ",1]
);
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Analysis
Background :
FIEM Industries Ltd. (FIL) was incorporated as Rahul Auto (P) Ltd in 1989. Its name was changed to FIEM Industries (P) Ltd in 1992. Subsequently in 1993 it was converted into a public limited company and its name was changed to the present name.
FIL is a manufacturer of automotive lighting & signaling equipments and rear view mirrors. Its major business comes from the two-wheeler industry. Its diversified products portfolio ranging from rear view mirrors, lamps, wheel covers, warning triangle, complete assembly, mudguards and various sheet metal & plastic parts is catering to the needs of almost all segments of automobile industry viz., two-wheelers, three wheelers, LCVs, HTVs and tractors.
Current installed capacity of automotive lighting & signaling equipments is 18 million pieces, for rear view mirrors is 5.5 million pieces and for sheet metal parts is 8 million pieces.
FIL set up a manufacturing unit having full-fledged testing laboratory at Sonepat, Haryana (Unit I) for manufacturing mirror and automotive lamps in 1993-94. It set up manufacturing units II and III in FY2004 and FY2005 respectively in Tamil Nadu for manufacturing lamps, indicators, reflex reflectors and rear view mirrors. Unit IV was also set up in FY2005 in Karnataka for manufacturing value added products like assembly for rear fender for two wheelers.
Presently, FIL is conducting trial at its Export oriented unit (EOU), Unit V at Tamil Nadu for manufacturing mirror plates, mirror assembly, lamps and indicators. FIL is also in process of setting up Unit VI at Himachal Pradesh for manufacturing the components for two and four wheeler segment.
FIL has entered into a number of joint ventures (JV) and MoUs for forming strategic alliance. The company has set up a JV with Sung San Co. Ltd., Korea and Daewoo Motors (India) Ltd.; it has\n also entered into an agreement with Korea Air Conditioners Co. Ltd. FIL has signed an MoU with Aspock Holding, GmbH, Austria and ZADI Divisione Fanaleria CEV Spa, Italy for engaging into the business of manufacturing auto components, using technical know how of these companies and also to cater to foreign market. FIL has entered into a technical support agreement with Ichikoh Industries Lt, Japan in November 2005. Ichikoh is a supplier to the major Japanese vehicle manufacturers such as Nissan Motor Co. Ltd, Toyota Motor Corporation, and Fuji Heavy Industries. FIL would get exposure to Japanese market as well.Object of the Issue : Setting up of new manufacturing facilities at Nalagarh, Himachal Pradesh (Unit VI) for automotive lighting and signaling and rear view mirrors. \n Setting up of an Export Oriented Unit (EOU) at Achettipalli, Hosur, Tamil Nadu (Unit V) for supply of rear view mirrors. Expansion of existing manufacturing facilities at Unit I and Unit II. Repayment of Term loan from Standard Chartered Bank to the extent availed for the purposes of new projects and expansion plans as mentioned above. To meet the expenses of issue.Strength : FIL is increasing its automotive lighting & signaling equipments by 13 million pieces to 31 million pieces. The rear view mirror production capacity would increase by ",1]
);
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FIL has entered into a number of joint ventures (JV) and MoUs for forming strategic alliance. The company has set up a JV with Sung San Co. Ltd., Korea and Daewoo Motors (India) Ltd.; it has also entered into an agreement with Korea Air Conditioners Co. Ltd. FIL has signed an MoU with Aspock Holding, GmbH, Austria and ZADI Divisione Fanaleria CEV Spa, Italy for engaging into the business of manufacturing auto components, using technical know how of these companies and also to cater to foreign market.
FIL has entered into a technical support agreement with Ichikoh Industries Lt, Japan in November 2005. Ichikoh is a supplier to the major Japanese vehicle manufacturers such as Nissan Motor Co. Ltd, Toyota Motor Corporation, and Fuji Heavy Industries. FIL would get exposure to Japanese market as well.Object of the Issue :
Setting up of new manufacturing facilities at Nalagarh, Himachal Pradesh (Unit VI) for automotive lighting and signaling and rear view mirrors.
Setting up of an Export Oriented Unit (EOU) at Achettipalli, Hosur, Tamil Nadu (Unit V) for supply of rear view mirrors.
Expansion of existing manufacturing facilities at Unit I and Unit II.
Repayment of Term loan from Standard Chartered Bank to the extent availed for the purposes of new projects and expansion plans as mentioned above.
To meet the expenses of issue.Strength :
FIL is increasing its automotive lighting & signaling equipments by 13 million pieces to 31 million pieces. The rear view mirror production capacity would increase by
FIL derives various tax benefits. As per the provisions of Section-80 IC the company can claim deduction @ 100% for the period of five assessment years and thereafter @30% for subsequent assessment years for its Unit VI at Himachal Pradesh. Similarly, as per the provisions of Section 10B FIL can claim deduction @ 100% for its newly established 100% EOU at Tamil Nadu. Net sales and net profit of FIL have grown at a CAGR of 34.62% and 58.75% respectively from FY2002 to FY2006. Net sales and net profit of the company for FY2002 were Rs.37.64 crore and Rs.1.18 crore respectively. The same for FY2006 were Rs.123.6 crore and Rs.7.51 crore.Weakness : Revenues of FIL are concentrated in the\n hands of a few customers. FIL derived around 69.33% revenue from its single customer, TVS Motor Co. Ltd. in FY2006. Similarly, top three customers contributed 82.33%, 85.17% and 85.14% to the total revenue in FY2004, FY2005 and FY2006 respectively. The company is facing increase in raw material costs of bulbs, wires, steel and plastics. Also, there is an increase in transportation costs due to increasing crude oil prices. FIL is unable to pass these costs to its customers due to competition from unorganized sector. There are no entry barriers for setting up an automotive components plant. Thus, many players from the organized as well as the un-organized sector enter the industry. The entry of these players result in excess capacity, competition and resultant price pressure on the products.",1]
);
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5.5 million pieces to 11 million pieces. This would aid the company in catering to growing demand for auto components and also achieve economies of scale.
FIL derives various tax benefits. As per the provisions of Section-80 IC the company can claim deduction @ 100% for the period of five assessment years and thereafter @30% for subsequent assessment years for its Unit VI at Himachal Pradesh. Similarly, as per the provisions of Section 10B FIL can claim deduction @ 100% for its newly established 100% EOU at Tamil Nadu.
Net sales and net profit of FIL have grown at a CAGR of 34.62% and 58.75% respectively from FY2002 to FY2006. Net sales and net profit of the company for FY2002 were Rs.37.64 crore and Rs.1.18 crore respectively. The same for FY2006 were Rs.123.6 crore and Rs.7.51 crore.Weakness :
Revenues of FIL are concentrated in the hands of a few customers. FIL derived around 69.33% revenue from its single customer, TVS Motor Co. Ltd. in FY2006. Similarly, top three customers contributed 82.33%, 85.17% and 85.14% to the total revenue in FY2004, FY2005 and FY2006 respectively.
The company is facing increase in raw material costs of bulbs, wires, steel and plastics. Also, there is an increase in transportation costs due to increasing crude oil prices. FIL is unable to pass these costs to its customers due to competition from unorganized sector.
There are no entry barriers for setting up an automotive components plant. Thus, many players from the organized as well as the un-organized sector enter the industry. The entry of these players result in excess capacity, competition and resultant price pressure on the products.
Peer group\n comparison :For Financial Year 2006 COMPANY Sales (Rs. in Cr) NPM(%) D/E EPS(Rs.) BV Per Share(Rs) P/E RONW(%) FIL 123.60 6.01 0.98 9.68 35.8 - 27.05 Minda Industries Ltd. ",1]
);
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Peer group comparison :For Financial Year 2006
COMPANY
Sales (Rs. in Cr)
NPM(%)
D/E
EPS(Rs.)
BV Per Share(Rs)
P/E
RONW(%)
FIL
123.60
6.01
0.98
9.68
35.8
-
27.05
Minda Industries Ltd.
268.02 4.73 1.87 12.06 36.76 13.22 32.82 Lumax Industries\n Ltd. 412.07 2.21 1.15 11.05 71.46 14.84 15.46Valuation : For FY2006, Net sales of FIL increased by 23.78% from Rs.99.85 crore in FY2005. Net profits\n increased by 138.89% over previous financial year due to increase in volumes. Post issue EPS is Rs.6.34. Post issue P/E will be in the range of 19 - 23 for a price band of Rs.125/- to Rs.145/-. Industry average P/E is 41.65. Net worth for FY2006 is Rs.27.77 crore. ",1]
);
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268.02
4.73
1.87
12.06
36.76
13.22
32.82
Lumax Industries Ltd.
412.07
2.21
1.15
11.05
71.46
14.84
15.46Valuation :
For FY2006, Net sales of FIL increased by 23.78% from Rs.99.85 crore in FY2005. Net profits increased by 138.89% over previous financial year due to increase in volumes.
Post issue EPS is Rs.6.34. Post issue P/E will be in the range of 19 - 23 for a price band of Rs.125/- to Rs.145/-. Industry average P/E is 41.65.
Net worth for FY2006 is Rs.27.77 crore.
team bbmclubcontact only on helpbbmclub@gmail.comwww.bcozindia.com \n\t\n\n\t\n\t\t \nFind out what India is talking about on - Yahoo! Answers India \nSend FREE SMS to your friend\'s mobile from Yahoo! Messenger Version 8. Get it NOW\n \n\n \n __._,_.___\n \n \n \n \n Messages in this topic (1)\n \n \n \n Reply (via web post)\n \n \n Start a new topic \n \n \n \n \n ",1]
);
//-->
Snapshot
Registered Office Address
D-34, DSIDC Packaging Complex, Kirti Nagar, New Delhi – 110015.
Phone
91-11-25927919 / 7820
Fax
91-11-25927740
investor@fiemindustries.com
Website
http://www.fiemauto.com/
Issue Open
21/09/2006 Issue Close 27/09/2006 Issue Size 4100000 Issue Type Book Building Face Value Rs.10/- Price Range Rs.125/- to Rs.145/- Tick Size Re 1/- Market Lot 45 Minimum Order Qty 45 Listing Stock Exchange Mumbai, NSE Registrar To The Issue Intime Spectrum Registry Ltd. Book Running Lead Managers IL&FS Investsmart Ltd. ",1]
);
//-->
21/09/2006
Issue Close
27/09/2006
Issue Size
4100000
Issue Type
Book Building
Face Value
Rs.10/-
Price Range
Rs.125/- to Rs.145/-
Tick Size
Re 1/-
Market Lot
45
Minimum Order Qty
45
Listing Stock Exchange
Mumbai, NSE
Registrar To The Issue
Intime Spectrum Registry Ltd.
Book Running Lead Managers
IL&FS Investsmart Ltd.
Analysis Background : FIEM Industries Ltd. (FIL) was incorporated as Rahul Auto (P) Ltd in 1989. Its name was changed to FIEM Industries (P) Ltd in 1992. Subsequently in 1993 it was\n converted into a public limited company and its name was changed to the present name. FIL is a manufacturer of automotive lighting & signaling equipments and rear view mirrors. Its major business comes from the two-wheeler industry. Its diversified products portfolio ranging from rear view mirrors, lamps, wheel covers, warning triangle, complete assembly, mudguards and various sheet metal & plastic parts is catering to the needs of almost all segments of automobile industry viz., two-wheelers, three wheelers, LCVs, HTVs and tractors. Current installed capacity of automotive lighting & signaling equipments is 18 million pieces, for rear view mirrors is 5.5 million pieces and for sheet metal parts is 8 million pieces. FIL set up a manufacturing unit having full-fledged testing laboratory at\n Sonepat, Haryana (Unit I) for manufacturing mirror and automotive lamps in 1993-94. It set up manufacturing units II and III in FY2004 and FY2005 respectively in Tamil Nadu for manufacturing lamps, indicators, reflex reflectors and rear view mirrors. Unit IV was also set up in FY2005 in Karnataka for manufacturing value added products like assembly for rear fender for two wheelers. Presently, FIL is conducting trial at its Export oriented unit (EOU), Unit V at Tamil Nadu for manufacturing mirror plates, mirror assembly, lamps and indicators. FIL is also in process of setting up Unit VI at Himachal Pradesh for manufacturing the components for two and four wheeler segment. ",1]
);
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Analysis
Background :
FIEM Industries Ltd. (FIL) was incorporated as Rahul Auto (P) Ltd in 1989. Its name was changed to FIEM Industries (P) Ltd in 1992. Subsequently in 1993 it was converted into a public limited company and its name was changed to the present name.
FIL is a manufacturer of automotive lighting & signaling equipments and rear view mirrors. Its major business comes from the two-wheeler industry. Its diversified products portfolio ranging from rear view mirrors, lamps, wheel covers, warning triangle, complete assembly, mudguards and various sheet metal & plastic parts is catering to the needs of almost all segments of automobile industry viz., two-wheelers, three wheelers, LCVs, HTVs and tractors.
Current installed capacity of automotive lighting & signaling equipments is 18 million pieces, for rear view mirrors is 5.5 million pieces and for sheet metal parts is 8 million pieces.
FIL set up a manufacturing unit having full-fledged testing laboratory at Sonepat, Haryana (Unit I) for manufacturing mirror and automotive lamps in 1993-94. It set up manufacturing units II and III in FY2004 and FY2005 respectively in Tamil Nadu for manufacturing lamps, indicators, reflex reflectors and rear view mirrors. Unit IV was also set up in FY2005 in Karnataka for manufacturing value added products like assembly for rear fender for two wheelers.
Presently, FIL is conducting trial at its Export oriented unit (EOU), Unit V at Tamil Nadu for manufacturing mirror plates, mirror assembly, lamps and indicators. FIL is also in process of setting up Unit VI at Himachal Pradesh for manufacturing the components for two and four wheeler segment.
FIL has entered into a number of joint ventures (JV) and MoUs for forming strategic alliance. The company has set up a JV with Sung San Co. Ltd., Korea and Daewoo Motors (India) Ltd.; it has\n also entered into an agreement with Korea Air Conditioners Co. Ltd. FIL has signed an MoU with Aspock Holding, GmbH, Austria and ZADI Divisione Fanaleria CEV Spa, Italy for engaging into the business of manufacturing auto components, using technical know how of these companies and also to cater to foreign market. FIL has entered into a technical support agreement with Ichikoh Industries Lt, Japan in November 2005. Ichikoh is a supplier to the major Japanese vehicle manufacturers such as Nissan Motor Co. Ltd, Toyota Motor Corporation, and Fuji Heavy Industries. FIL would get exposure to Japanese market as well.Object of the Issue : Setting up of new manufacturing facilities at Nalagarh, Himachal Pradesh (Unit VI) for automotive lighting and signaling and rear view mirrors. \n Setting up of an Export Oriented Unit (EOU) at Achettipalli, Hosur, Tamil Nadu (Unit V) for supply of rear view mirrors. Expansion of existing manufacturing facilities at Unit I and Unit II. Repayment of Term loan from Standard Chartered Bank to the extent availed for the purposes of new projects and expansion plans as mentioned above. To meet the expenses of issue.Strength : FIL is increasing its automotive lighting & signaling equipments by 13 million pieces to 31 million pieces. The rear view mirror production capacity would increase by ",1]
);
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FIL has entered into a number of joint ventures (JV) and MoUs for forming strategic alliance. The company has set up a JV with Sung San Co. Ltd., Korea and Daewoo Motors (India) Ltd.; it has also entered into an agreement with Korea Air Conditioners Co. Ltd. FIL has signed an MoU with Aspock Holding, GmbH, Austria and ZADI Divisione Fanaleria CEV Spa, Italy for engaging into the business of manufacturing auto components, using technical know how of these companies and also to cater to foreign market.
FIL has entered into a technical support agreement with Ichikoh Industries Lt, Japan in November 2005. Ichikoh is a supplier to the major Japanese vehicle manufacturers such as Nissan Motor Co. Ltd, Toyota Motor Corporation, and Fuji Heavy Industries. FIL would get exposure to Japanese market as well.Object of the Issue :
Setting up of new manufacturing facilities at Nalagarh, Himachal Pradesh (Unit VI) for automotive lighting and signaling and rear view mirrors.
Setting up of an Export Oriented Unit (EOU) at Achettipalli, Hosur, Tamil Nadu (Unit V) for supply of rear view mirrors.
Expansion of existing manufacturing facilities at Unit I and Unit II.
Repayment of Term loan from Standard Chartered Bank to the extent availed for the purposes of new projects and expansion plans as mentioned above.
To meet the expenses of issue.Strength :
FIL is increasing its automotive lighting & signaling equipments by 13 million pieces to 31 million pieces. The rear view mirror production capacity would increase by
FIL derives various tax benefits. As per the provisions of Section-80 IC the company can claim deduction @ 100% for the period of five assessment years and thereafter @30% for subsequent assessment years for its Unit VI at Himachal Pradesh. Similarly, as per the provisions of Section 10B FIL can claim deduction @ 100% for its newly established 100% EOU at Tamil Nadu. Net sales and net profit of FIL have grown at a CAGR of 34.62% and 58.75% respectively from FY2002 to FY2006. Net sales and net profit of the company for FY2002 were Rs.37.64 crore and Rs.1.18 crore respectively. The same for FY2006 were Rs.123.6 crore and Rs.7.51 crore.Weakness : Revenues of FIL are concentrated in the\n hands of a few customers. FIL derived around 69.33% revenue from its single customer, TVS Motor Co. Ltd. in FY2006. Similarly, top three customers contributed 82.33%, 85.17% and 85.14% to the total revenue in FY2004, FY2005 and FY2006 respectively. The company is facing increase in raw material costs of bulbs, wires, steel and plastics. Also, there is an increase in transportation costs due to increasing crude oil prices. FIL is unable to pass these costs to its customers due to competition from unorganized sector. There are no entry barriers for setting up an automotive components plant. Thus, many players from the organized as well as the un-organized sector enter the industry. The entry of these players result in excess capacity, competition and resultant price pressure on the products.",1]
);
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5.5 million pieces to 11 million pieces. This would aid the company in catering to growing demand for auto components and also achieve economies of scale.
FIL derives various tax benefits. As per the provisions of Section-80 IC the company can claim deduction @ 100% for the period of five assessment years and thereafter @30% for subsequent assessment years for its Unit VI at Himachal Pradesh. Similarly, as per the provisions of Section 10B FIL can claim deduction @ 100% for its newly established 100% EOU at Tamil Nadu.
Net sales and net profit of FIL have grown at a CAGR of 34.62% and 58.75% respectively from FY2002 to FY2006. Net sales and net profit of the company for FY2002 were Rs.37.64 crore and Rs.1.18 crore respectively. The same for FY2006 were Rs.123.6 crore and Rs.7.51 crore.Weakness :
Revenues of FIL are concentrated in the hands of a few customers. FIL derived around 69.33% revenue from its single customer, TVS Motor Co. Ltd. in FY2006. Similarly, top three customers contributed 82.33%, 85.17% and 85.14% to the total revenue in FY2004, FY2005 and FY2006 respectively.
The company is facing increase in raw material costs of bulbs, wires, steel and plastics. Also, there is an increase in transportation costs due to increasing crude oil prices. FIL is unable to pass these costs to its customers due to competition from unorganized sector.
There are no entry barriers for setting up an automotive components plant. Thus, many players from the organized as well as the un-organized sector enter the industry. The entry of these players result in excess capacity, competition and resultant price pressure on the products.
Peer group\n comparison :For Financial Year 2006 COMPANY Sales (Rs. in Cr) NPM(%) D/E EPS(Rs.) BV Per Share(Rs) P/E RONW(%) FIL 123.60 6.01 0.98 9.68 35.8 - 27.05 Minda Industries Ltd. ",1]
);
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Peer group comparison :For Financial Year 2006
COMPANY
Sales (Rs. in Cr)
NPM(%)
D/E
EPS(Rs.)
BV Per Share(Rs)
P/E
RONW(%)
FIL
123.60
6.01
0.98
9.68
35.8
-
27.05
Minda Industries Ltd.
268.02 4.73 1.87 12.06 36.76 13.22 32.82 Lumax Industries\n Ltd. 412.07 2.21 1.15 11.05 71.46 14.84 15.46Valuation : For FY2006, Net sales of FIL increased by 23.78% from Rs.99.85 crore in FY2005. Net profits\n increased by 138.89% over previous financial year due to increase in volumes. Post issue EPS is Rs.6.34. Post issue P/E will be in the range of 19 - 23 for a price band of Rs.125/- to Rs.145/-. Industry average P/E is 41.65. Net worth for FY2006 is Rs.27.77 crore. ",1]
);
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268.02
4.73
1.87
12.06
36.76
13.22
32.82
Lumax Industries Ltd.
412.07
2.21
1.15
11.05
71.46
14.84
15.46Valuation :
For FY2006, Net sales of FIL increased by 23.78% from Rs.99.85 crore in FY2005. Net profits increased by 138.89% over previous financial year due to increase in volumes.
Post issue EPS is Rs.6.34. Post issue P/E will be in the range of 19 - 23 for a price band of Rs.125/- to Rs.145/-. Industry average P/E is 41.65.
Net worth for FY2006 is Rs.27.77 crore.
team bbmclubcontact only on helpbbmclub@gmail.comwww.bcozindia.com \n\t\n\n\t\n\t\t \nFind out what India is talking about on - Yahoo! Answers India \nSend FREE SMS to your friend\'s mobile from Yahoo! Messenger Version 8. Get it NOW\n \n\n \n __._,_.___\n \n \n \n \n Messages in this topic (1)\n \n \n \n Reply (via web post)\n \n \n Start a new topic \n \n \n \n \n ",1]
);
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