- Stock Valuation and Financial Performance

Shirdi Industries was incorporated as Shirdi International Engineers Private Limited under the Companies Act, 1956 on December 15, 1993 in Mumbai. The name of the company was changed to Shirdi Industries Private Limited on May 9, 1997. Subsequently, the company was converted into a public limited company and the name again was changed to Shirdi Industries Limited vide a certificate dated June 12, 1997.

The products manufactured by the company are sold under the brand name of “ASIS” and enjoy reputation in the market and the present customers include builders in Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu and furniture manufacturers across the country.

Shirdi Industries have a nationwide sales and distribution network in the form of its own marketing offices, dealers, distributors, sub-dealers and retailers. The company has a pan India marketing network consisting of 15 marketing offices and over 115 exclusive distributors. It has also implemented an enterprise resource planning (“ERP”), software system developed by SAP, which integrates the management and allocation of resources for all segments of the business operations ranging from human resources to quality control. Further, the company also has implemented a business intelligence system developed by SAP.

Its Business area:

Shirdi Industries is a wood based interior furnishings solutions provider, primarily engaged in the manufacture of an array of wood based panel products which include medium density fibre (“MDF”), boards, particle boards, prelaminated MDF and particle boards, laminates, flooring, door skins, panel doors, modular furniture and other allied products.

The company along with the manufacturing of wood based panel products, trades in steel, chemicals, paper, thin boards and other related items required for the furniture industry, which include PVC wrapped profiles and PVC edge bends. It also trades in transferable export incentives by offering forward sell options to exporters and purchase options to the importers at deferred payment basis.

Initially the company during the time of incorporation was engaged in the business of providing consultancy services in connection with tax, export and import related matters. Subsequently, it ventured into trading in export incentives, wood based furnishing products and various commodities.

The company has executed agreements for exclusive distributorship rights in India for PVC wrapped profiles which are used for producing edge solutions in modular furniture, with AGT Furniture Components, Turkey, and with PROBOS – PLASTICOS SA, Portugal for the distribution of PVC edge bends, used to cover the edges of boards used for manufacturing furniture.

Shirdi Industries manufactures plain and pre-laminated particle boards conforming to E 1 grade and the production of MDF boards conforming to E 1 grade is in the advance stage of development. The company has also received an ISO 9001-2008 certification for manufacture and supply of all the products manufactured in the plant located at Uttarakhand. The products manufactured by the company qualify for ECO mark and related ISI standards and are marked on request.

Further, the company’s Pantnagar unit qualifies for Clean Development Mechanism (CDM) and Voluntary Carbon Standards (VCS) credits. The aforesaid unit is entitled to generate 82,000 units of both CDM and VCS credits per year. As per the current applicable procedure, the company is entitled for VCS credit for a period of 30 years and CDM credit for 10 years from the date of commencement of the manufacturing facility at Pantnagar i.e. from February 2007.

The company currently proposes to implement expansions at the manufacturing facilities at Pantnagar, Uttarakhand, and also establish a new manufacturing facility at Gummidipoondi near Chennai, Tamil Nadu, for establishing a MDF Plant for producing MDF board of thickness 8mm to 25mm and another MDF Plant for producing MDF board from 2.3mm to 8mm, decorative laminate line, a printing line and pre-lamination lines. It also proposes to establish a manufacturing facility at Bhiwandi, District Thane, Maharashtra, for manufacturing edge solutions for wood based furniture products.

Group companies:

Dytel Finance & Investments Private Limited:This company incorporated dated June 5, 1995 is in the business of finance and investments.

Asis Global Limited: The company incorporated in India vide a certificate of incorporation dated July 10,1995 is in the business of trading in textiles, electronic items, tyre tubes, etc

Rachana Finance & Investments Private Limited: This company incorporated in India vide a certificate of incorporation dated June 5, 1995 is in the business of finance and investments.

Pratibha Finance & Investments Private Limited: The company incorporated in India vide a certificate of incorporation dated August 23, 1995 is in the business of finance and investments.

Asis Logistics Limited: The company incorporated in India vide a certificate of incorporation dated March 31, 1994 is in the business of logistics solutions through land, air, water and space.

Manhar Properties Private Limited:This company incorporated in India vide a certificate of incorporation dated August 7, 1995 is in the business of builders, developers, and architects.

Poona Pearls Biotek Limited: This company incorporated vide a certificate of incorporation dated March 11, 1996 is in the business of poultry farming, horticulture, pisciculture, sericulture, floriculture, dairies and cultivator of various food grains.

Labh Capital Services Private Limited:This company incorporated in India vide a certificate of incorporation dated June 15, 1992 is in the business of consultants for capital services such as share and stockbrokers, investments portfolio manager, registrar, share transfer agents..

Repute Properties Private Limited: This company incorporated in India vide a certificate of incorporation dated July 28, 1995 is in the business of building, developing, and architecture.

Swanbay Technologies Private Limited: This company incorporated in India vide a certificate of incorporation dated August 21, 1997 is in the business of clearing and forwarding of goods pertaining to import and export, transportation of goods in respect of goods through import and export.

Key Milestones:

1993-94 - The company was incorporated on December 15, 1993.

1994-95- The company introduced a new concept in the business of trading of transferable export incentives by offering forward sell options to exporters and purchase options to the importers at deferred payment basis.

 1995-96 - Commencement of trading of various items required by the furniture industry.

The company was among first few companies in India who had started importing MDF Board in 1995.

1997-98 -The company was converted into a public company and the name was changed to Shirdi Industries Limited vide a certificate of change of name dated June 12, 1997.

2003-04-In October, 2003, the company acquired operating plant and machinery and stock of rawmaterial and finished goods from Jyoti Panels Private Limited and additionally invested in plant and machinery for production of Panel Doors and Furniture Components at Navi Mumbai.

2007-08-The company has set up a plant for the manufacture of Plain Particle Board, Plain MDF Board, Pre-laminated particle Board, Pre-laminated MDF Board, Doors and Door Skins, Furniture, Components, High Pressure laminates, Flooring, etc at Pantnagar , Uttarakhand and commenced the production in the month of February, 2007.

- The company acquired land at Gummidipoondi, near Chennai, Tamil Nadu, with a view of setting up a new manufacturing facility thereon.

2008-09 -The company has implemented expansion and diversification programme at Uttarakhand.

-The company received BB+/STABLE for fund based and P4 for LC rating from Crisil vide their letter dated December 10, 2008.

- The company has taken over selected plant and machinery related to Particle board, Prelamination, impregnation, ceiling tiles and utility from Rampur plant of Kitply Limited. The machinery shall be used in implementing the expansion plans proposed for FY 2009-10.

- The company has signed agreement as exclusive distributor with M/s AGT Furniture Components, Turkey and M/s. Probos- PLasticos SA, Portugal for the supply of PVC Wrapped Profiles, Membrane Pressed Panels and PVC Edge Bends.

2009-10-The company commenced operations at its manufacturing facilities located at Coimbatore, Tamil Nadu on October 5, 2009 and expansion of capacity laminates.

Certification:

The company has received an ISO 9001-2008 certification for manufacture and supply of all the products manufactured in the plant located at Uttarakhand by TUV-NORD vide certificate dated February 12, 2009.The products manufactured by the company qualify for ECO mark and related ISI standards and are marked on request.