FINANCE II

Electronics Industry
Project Phase I
11 February, 2008

BY
SECTION A, GROUP- 1

Participants:
Abhishek
2007PGP001A

Awasthi
Abhishek Daga

2007PGP002A
Amisha K Shah
2007PGP007A
Arun Hegde
2007PGP020A
Avishar Katiyar
2007PGP025A
Dhiraj Kumar Gautam
2007PGP039A
Dilip Singh
2007PGP042A

Krishna Chaitanya
Bandhakavi 2007PGP063A
S.Arvindkumar
2007PGP126A
Yogesh Bansal
2007PGP180A

Contents
Industry Brief.................................................................................................................3
Company Brief...............................................................................................................4
Bharat Electronics Limited........................................................................................4
Crompton Greaves.....................................................................................................6
Havells India..............................................................................................................8
MIC Electronics.......................................................................................................10
Opto Circuits............................................................................................................12
Salora International..................................................................................................14
Sharp........................................................................................................................16
SPEL Semicondutors................................................................................................18
TVS Electronics.......................................................................................................21
Videocon..................................................................................................................23
Board of Directors........................................................................................................25
Trading volume (Average)...........................................................................................25
Mutual Funds trading in the company stock in the last 6 months................................26
Stock Holder Analysis..................................................................................................26
Corporate Responsiveness towards the society............................................................27
BEL..........................................................................................................................27
Crompton Greaves...................................................................................................27
Havells India............................................................................................................28
MIC Electronics.......................................................................................................28
Opto Circuits............................................................................................................29
Salora International..................................................................................................29
Sharp........................................................................................................................29
SPEL Semiconductors..............................................................................................30
TVS Electronics.......................................................................................................30
Videocon..................................................................................................................30

Industry Brief
Indias electronic industry represents a miniscule of 0.7% of the
global electronic industry. Nevertheless, the demand in the Indian
market is picking up rapidly and substantive investments are
coming in to expand the manufacturing capacity. In spite of that,
India continues to be a major importer of electronic materials,
components and finished equipment. The electronic industry is
growing at a dynamic rate. On the whole, the electronic sector, has
been delicensed, with the exception of aerospace and defence
electronics. Fiscal, investment and trade policies for the electronic
sector have also been shaped to provide the greatest incentive to
encourage foreigners to bring in the much needed investments. All
components, raw materials and capital goods are freely importable
without restriction. The government even renders a duty free
environment for export of electronic hardware and software under
the export-oriented schemes.
Indias electronics industry grew at approximately 20.5%
compounded annually
over the past six years (2002-2007), and was worth USD 16.1 billion
in 2007. The Indian electronic industry is divided into six segments
viz. consumer electronics, computers, strategic electronics,
communication and broadcasting equipment and electronic
components.
Indias entire electronic market was worth around USD16.1 billion in
2007, is expected to become one of the fastest growing electronics
markets globally over the next several years. In the medium term,
there will be a high growth in the India electronics sector. This
market is targeted to hit USD 40 billion by 2010 at an annual rate of
over 20%. ( Source: ISI Analytics Research). This growth will be
aided by trends such as increase in contract manufacturing and set
up in EMS and ODM.

Company Brief
Bharat Electronics Limited
Starting with the manufacture of a few communication equipments
in 1956, BEL now produces receiving valves, Germanium
Semiconductors, radio transmitters, Silicon Devices and Integrated
Circuits. In 1966, BEL set up a Radar manufacturing facility for the
Army and in-house R&D, which has been nurtured over the years.
The first disinvestment (20%) and listing of the Companys shares in
Bangalore and Mumbai Stock Exchanges took place then.
BEL Units obtained ISO 9000 certification in 1993-94. The second
disinvestment (4.14%) took place in 1994. In 1996, BEL achieved
Rs.1,000 crores turnover. In 1997, GE BEL, the second Joint Venture
Company with M/s GE, USA, was formed as also the third JVC with
M/s Multitone, UK, BEL Multitone. The same year, USA imposed
supply restrictions on BEL.In 1998, BEL set up its second overseas
office at Singapore to source components from South East Asia. The
same year, US and European sanctions were imposed on BEL. The
Company was able to overcome the effects of the sanctions and
insulate Indian defence forces from the fall-out of denial regimes by
finding technical solutions to circumvent the denials and by keeping
up the promised deliveries to customers.The year 2000 saw the
Bangalore Unit, which had grown very large, being reorganized into
six Strategic Business Units (SBUs). The R&D groups in Bangalore
were also restructured into Specific Core Groups and Product
Development Groups. The same year, BEL shares were listed in the
National Stock Exchange.In 2002, BEL became the first defence PSU
to get operational Mini Ratna Category I status. In 2003, the
Companys turnover crossed the Rs.2,500 mark. In 2006-07, BEL
achieved a turnover of Rs.3,952.69 crores.
In June 2007, BEL was conferred the prestigious Navratna status
based on its consistent performance. BEL looks forward to leverage
the increased functional autonomy for further business growth and
diversification.
VISION
- To be a world-class enterprise in professional electronics.
MISSION
- To be a customer focussed, globally competitive company in
defence electronics and in other chosen areas of professional
electronics,
through
quality,
technology
and
innovation.
5

CMD
Mr V V R Sastry (57) took over as the Chairman and Managing
Director of premier Defence Public Sector Undertaking Bharat
Electronics Limited (BEL), with effect from February 1, 2007. He
wasDirector (Marketing) of BEL before his elevation as CMD. During
his tenure as Director (Marketing) he took initiatives to bring in
marketing orientation to the organization and gave a strong thrust
to exports.
He has widely travelled abroad. He has worked for 13 months in the
Development Laboratories of Philips (Mullard), UK, on electronic
circuit design and development of microprocessor based electrical
appliances. He also headed BELs New York office for 3 years, during
which he had extensive interactions with the US Department of
Commerce
&
State.
He is a Senior Assessor for the CII-EXIM Bank Business Excellence
Model. Mr Sastry is on the Board of BEL Optronic Devices Limited, a
wholly owned subsidiary of BEL.
Board of directors
Name
Y. Gopala Rao
P.R.K. Hara Gopal
S.K. Mehta
M.L. Shanmukh
V.V.R. Sastry
A.K. Datt
H.S. Bhadoria
Alok Perti
Davinder Kumar
V. Bakthavatsalam
N. Balakrishnan
Ashok Jhunjhunwala
Goverdhan Mehta
S.P. Parashar
K.G. Ramachandran
M. Rammohan Rao
S. Sadagopan
Bhupindar Singh

Executive/Nonexecutive
Executive
Executive
Executive
Executive
Executive
Executive
Executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive
Non-executive

Independent/Nonindependent
Non-independent
Non-independent
Non-independent
Non-independent
Non-independent
Non-independent
Non-independent
Non-independent
Non-independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Independent

Crompton Greaves
Crompton Greaves (CGL) is a BM Thapar Group Company,
incorporated in Apr.'37 as a private limited company as Crompton
Parkinson (Works), it later changed to Greaves Cotton & Crompton
Parkinson in Jun.'37 and subsequently after amalgamation in Jan.'66,
changed its name to Crompton Greaves in Aug.'66.
It is mainly concentrating in Power Systems, Industrial Systems and
Consumer Products and Digital business. The company is mainly
engaged in the manufacture, distribution and sale of electrical and
electronic
equipment/
systems.
CGL's
products
includes
Transformers, Switchgears, Motors, Alternators, Fans, Lighting,
Pumps, Electrical Steel Stamping & Laminates, Telecom Business
Solutions and Computer Systems & Software etc.
It is the market leader in number of products in the Electrical
Engineering Sector. The company is the market leader in the
Transformers Business with a market share of 18%. The company's
Stampings Division and Fan Business is a market leader with 23%
market share and 21% market shares respectively. The company
enjoys market leadership for AC Motors and the second position in
AC Generators and DC Motors.
Its manufacturing base covers in 22 locations across five states
(Goa, Gujarat, Karnataka, Maharashtra and Madhya Pradesh) in
India. The Company is also having Engineering Project Division in
Chennai and this was relocated to Gurgaon during 2004-05. The
subsidiaries of CGL are CG Capital and Investments Ltd, CG-PPi
Adhesive Products Ltd and CG Motors Pvt Ltd. It exports its products
to 60 countries worldwide.
The company has collaboration with Westinghouse Electric
Corporation, US, for 400-kv transformers; Emile Haefely,
Switzerland, for bushings; Hundt and Weber, Germany for air-circuit
breakers; Mitsubishi, Japan, for gas-circuit breakers; etc. Also,
collaborations have been entered into for its telecom division with
Graphnet and SDI, US, for fax mail.
During May 2005 the company has completed the acquisition of the
Belgium-based Pauwels Group which is having its manufacutring
facilites in Belgium, Ireland, Cananda, USA and Indonesia. Pauwels
transformer range is upto 500 Kv as against 400 kV for the
company. This acquisition was done under the name of a company
CG International BV which was incorporated in April 2005, in
Amsterdam, Netherlands.
In Sep. 2000, the company disinvested its shareholding in Skycell
Communications for a consideration of Rs 76 cr to a French
8

multinational, Schneider Electric, thereby making a profit of Rs 30

cr. The Company has disinvested its shareholding in CG Glass Ltd,
CG Elin Power Systems Ltd. During 2002 the company has
suspended its Capacitors Division at Pune,Informatics Division at
Bangalore and Industrial Electronics Division at Nashik.
MD
Sudhir Mohan Trehan is the Managing Director of Crompton Greaves
Limited since May 2000. Prior to this, he was the President of CG Digital and looked after the areas of Networking, Informatics and
Telecommunications.
Mr. Trehan is an engineering graduate from the renowned Birla
Institute of Technology at Ranchi and a gold medallist. Thereafter,
he pursued Post Graduate studies (M.S.) at the State University in
Stony
Brook,
NY,
USA.
He began his career in the United Kingdom as a Management
Trainee with Crompton Parkinson Ltd. at Guisely. In 1972, he joined
Crompton Greaves Ltd. in India where he served in various
Departments and Divisions like Transformers, Turbines and
Switchgear.
He is actively involved in various national industry forums like
IEEMA, CII and AIMA - leading names in India. He is currently the
Chairman
of
Maharashtra
State
Council
of
CII.
He was the recipient of the Outstanding Chief Executive of the Year
Award for 2000-2001, instituted by the Indian Institution of Industrial
Engineering, for steps he took towards successfully implementing
his vision of making Crompton Greaves a world-class manufacturing
company.
Board Of Directors

Name
Gautam Thapar
Sudhir Trehan
Scot T Bayman
Omkar Goswami
Sanjay Labroo

Independent/N
onindependent
Chairman/Promot
er
Managing
Director/CEO

Executive
Non
Executive
Executive
Non
Executive
Non
Executive
Non
Executive
9

No of Other
Directorship
17
6

Independent

Independent

Independent

16

Non
Meher Pudumjee
Executive
Non
Karan Thapar
Executive
Non
Satya Pal Talwar
Executive
Valentin
Von Non
Massow
Executive

10

Independent

10

Promoter

Independent

Independent

Havells India
Havells India Ltd, a billion-dollar-plus organization, and one of the
largest & India's fastest growing electrical and power distribution
equipment company, manufacturing products ranging from Building
Circuit Protection, Industrial & Domestic Switchgear, Cables & Wires,
Energy Meters, Fans, CFL Lamps, Luminaires for Domestic,
Commercial & Industrial application and Modular Switches.
Havells owns some of the prestigious global brands like Crabtree*,
Sylvania, Concord, Luminance, Claude, Sylvania:Linolite, SLI Lighting
& Zenith.
With 91 branches / representative offices and over 8000
professionals spread over 50 countries across the globe, the group
has achieved rapid success in the past few years. Its 20 state-of-theart manufacturing plants spread over India, Europe, Latin America &
Africa churns out globally acclaimed products like Switchgear,
Luminaires, CFLs etc. Havells India Ltd is a name synonymous with
excellence and expertise in the electrical industry. Its 20000 strong
global distribution network is always ready to service its clients.
The company has acquired a number of International certifications,
like CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia),
SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD
(Bahrain) for various products. Today Havells and its brands has
emerged as the preferred choice for a discerning range of individual
and industrial consumers both in India and abroad.
The essence of its success lies in the expertise of a fine team of
professionals, strong relationship with associates, the ability to
adapt quickly, efficiently and ably supported with the vision to think
ahead.
Vision
"To be a globally recognized corporation that provides best electrical
& lighting solutions, delivered by best-in-class people."
Mission
To achieve our vision through fairness, business ethics, global reach,
technological expertise, building long term relationships with all our
associates, customers, partners, and employees.
Chairman

11

Mr.Gupta has held various responsible positions in Trade and

Commercial associations of the Industry from time to time. He has in
his past served as the President of Federation of All India Electrical
and Trade association and also the president of IEEMA. Mr.. Qimat
Rai Gupta has been recognized by various sections of the industry
for his path breaking work in this segment. Amongst the
acknowledgments bestowed upon him, Mr.Gupta received the elf
made Entrepreneur Award "Udyog Patra" in 1989, Distinguished
Entrepreneurship Award 2004, from the PHD Chamber of Commerce
and Industry in 2004, Udyog Vibhushan from the Institute of Trade &
Industrial Development, Delhi in 2005 and Udyog Ratna from PHD
Chamber of Commerce & Industry for Economic Contribution to
Uttaranchal State in 2005.
Board of Directors
Name

Executive/
Non
Executive

Independent/
Non
Indeppendent

Qimat Rai Gupta

CMD

Surjit Gupta

Non-Executive

Anil Gupta

Jt.MD

Rajesh Gupta

Non Executive

S.B.Mathur

Non-Executive

Non
-Independent
Non
-Independent
NonIndependent
NonIndependent
Independent

Abid Hussain

Non-Executive

Independent

15

D.N.Khurana

Non-Executive

Independent

Avinash Gandhi

Non-Executive

Independent

16

N.
Balasubramaniam
Sabine Gayer

Non-Executive

Independent

Non-Executive

Independent

Owen Non-Executive

Independent

46

Richard
Pyvis

12

No.
of
other
companie
s
associate
d
Nil
5
10
NIL
16

MIC Electronics
MIC Electronics Limited. is a global leader in the design,
development & manufacturing of LED Video Displays, high-end
Electronic and Telecommunication equipment and development of
Telecom software since 1988. An ISO 9001: 2000 certified, it has
marked presence in the highly dynamic domains of:

LED Video, Graphics and Text Displays

LED Lighting Solutions
Embedded, System and Telecom software
Communication and Electronic Products

Today, MIC's flagship products are LED Video Displays (indoor /

outdoor / mobile), that have become an integral part of Sports
Stadiums, Transportation Hubs, Digital Theatres and Theme Parks,
Advertisements and Public Information Displays. Headquartered at
one of the fastest emerging IT cities, Hyderabad (India), it has
nation wide presence in the form of a vast network of marketing,
sales and service support centres in all metros of India. To meet the
demand of its products worldwide, it has offices in Australia,
Dubai and USA. Now the company is gradually setting up
operations in other international markets.
The Company was originally incorporated as a private limited
company on May 17, 1988. Subsequently, the company was
converted into a public limited company on July 29, 1997 and the
company name was changed to MIC Electronics Limited. In 2000,
Phoenix Telecommunications Limited was merged with MICEL. The
company has a global leader in the design, development &
manufacturing of LED Video Displays, high-end Electronic and
Telecommunication equipment and development of Telecom
software. In 2004, the company has sold its First commercial LED
Display product and incorporate subsidiary in Australia. In 2006, the
company has acquired InfoSTEP Inc. USA. In April 2007, the
company has entered into capital market. The company has issued
51,00,000 Equity shares to the public. Issue price is Rs.150/- per
share.
Due to its in-depth knowledge and will to outperform, MIC has
always observed stringent processes and standards in design,
development, engineering and manufacturing of its Electronic,
Telecom and Software products and services. The national award for
Best R & D in Electronics industry by DSIR, Government of
India, in the year 2002 is testimony to the aforementioned.
MIC Vision

13

We commit to provide Quality Products and Timely Services to the

total satisfaction of our customers and continually improve the
effectiveness of the Quality Management System.
Looking at the vision statement of the company it is evident that
MIC believes in building long-term relationships with its clients. Their
commitment to quality, flexibility in providing comprehensive
solutions results in huge wins of trust of clients and builds rock-solid
foundations with other stakeholders of the firm.
CEO
Venkata Ramana Rao Maganti serves as Managing Director and
Chief Executive Officer of MIC Electronics Ltd. Dr. Maganti has over
20 years of managerial experience in the field of embedded
systems, parallel processing, multilingual software & Information
Communication Technologies industry in product design &
development, marketing and business development. Prior to MIC
Electronics, Dr. Maganti worked for about 2 years as Lecturer in VRS
Engineering College & KL College of Engineering in AP, teaching
various subjects in Micro Computers and guided more than 10
projects in the field of embedded Micro controllers. He was invited
as a speaker and chair person at several national and international
technical forums like Institute of Electronics and Telecom Engineers,
Institute of Engineers, India, International Trade Business Meetings,
Seong Nam Business Korea. He serves as Chairman of MIC
Electronics Ltd. Dr. Maganti holds a Bachelor of Engineering
(Electrical and Electronics Engineering) from Andhra University
College of Engineering, Master of Engineering (Applied Electronics)
from PSG College of Technology & PhD (Electronics &
Communication Engineering) from Jawaharlal Nehru Technological
University. He is a Fellow of IETE and Member of IE (I) & ISTE.
Board Of Directors
Name

Designation

M V Ramana Rao

Managing
CEO

Harsh C Mariwala

Director

Ranjan Kapur

Director

Somendra Khosla

Director

Mangilal Kalani
Anil Goyal

Director
Director

Y Harish
Prasad

Director

Chandra

N Srinivasa Rao

Director
14

Director

&

Atluri Venkata Ram

Director

Vidya
Anisingaraju

Director

U Ramakrishna

Sagar

Director

15

Opto Circuits
Opto Circuits (I) Limited is a BSE/NSE listed company headquartered
in Bangalore, India. OCIs range of products includes, Pulse
Oximeters, Pulse Oximeter Sensors, Fluid warmers, Cholesterol
monitors & recently Stents.
OCI is in a very specialized, technology oriented Opto electronic
industry since 12 years. This segment requires a unique mix of indepth knowledge & niche manufacturing capabilities.
OCI has the status of Export House and has been awarded two star
trading house status by the Federal Government of India. It has ISO
9001-2000 and ISO 13485-2003 quality system certification. OCI
group companies have been awarded CE approval for its products.
The subsidiaries of OCI possess FDA approval for different products
being
manufactured
by
them.
At the heart of OCIs growth plan is its desire to serve customers
through
excellent
quality
&
innovative
products.
In order to ensure the company's short & long term growth, it
invests a large part of its profits in the research and development of
new products and technology. OCI has a world class manufacturing
& R&D facility at Electronics City, Bangalore.

Corporate Objectives
1. Niche
- Drive growth through focussing on a niche
Products
segment
2. Inorganic
- Expand
rapidly
by
acquiring
businesses
Growth
complimentary to the goals of the company
3. Penetrating - Penetrate the high value European and American
new markets
markets

MD
Vinod Ramnani has a wealth of experience to back him. In 1990, he
along with Thomas Dietikar (the American co-promoter of Opto
Circuits) and others decided to establish M/s Elekon Industries Pre
Ltd ., in Singapore. Thereafter, Vinod initiated a move to shift the
manufacturing facilities to the Silicon Valley of India (Bangalore) and
Opto Circuits was formed in 1992 with Vinod as Managing Director.
16

His passion to see Opto Circuits scale new heights is reflected in the
hands on management style in which he manages the company.
Limited. Dr. Muthiah is a member of the Indian Prime Minister's
Advisory Council on Trade & Industry and is the Honorary Consul of
Belgium for Southern India. He is also connected with a number of
Educational, Cultural & Sports Organizations.
Board of Directors

17

Salora International
A Salora group concern, Salora International went public in Mar.'93.
It manufactures colour and B&W television sets and critical TV
components like fly-back transformers, deflection yokes and
loudspeakers.
The company set up Matsushita Television and Audio (India) to
manufacture colour televisions and audio systems under the
Panasonic brand name in technical collaboration with Matsushita
Electric Industrial Company, Japan, commercial production of which
commenced in Feb.'95. The company has also tied-up with
Matsushita to introduce Panasonic cordless telephones and new
models
of
fax
machines.
Salora has the distinction of being the largest exporter of B&W TV
sets during 1993-94 and has earned the status of Golden Export
House from November, 1999. The company, besides its own
products, also exports readymade garments, leather goods and
various other items. A major exporter of cotton knitted garments,
the company is planning to set up a 100% export oriented knitting
unit at Tirupur in TamilNadu. The company has also entered into an
agreement with Mothercare (India) to market children's wear in
Europe
under
the
brand
name
Little
Kingdom.
During 1996-97 the company decided to enter power industry in a
big way by selling high frequency power equipments to Department
of Telecommunications and other major private telecom equipment
manufacturers. The company also launched a complete new range
of "Panasonic" brand fax machines and printers and also
sophisticated whiteboard called "Panaboard" during the year.
Salora's components division has fetched the Sony "Quality
Appreciation Award" and Samsung "Best Vendor Award" during the
year 1999-2000. The company has formed another joint venture
company called Jadoonet.com Ltd, along with M/s Infoquest Ecommerce Pvt Ltd. Jadoonet.com Ltd has been set up to provide
cost effective internet account solution to the mass. It has recently
launched India's first TV based portal. Also the company facility has
been certified for ISO 14001 standard. FX Info Technologies Ltd was
ceased to be the subsidiary company as the shareholding of the
former was reduced to 4,83,040 equity shares.
With revenues exceeding $250 million, Salora International today
has emerged as a diversified entity with interests in sourcing and
procurement,
manufacturing,
supply
chain
management,
distribution, marketing, retail and after-sales service. Over three
decades of enriched experience in electronics helps us serve in
diverse realms like Consumer Electronics, Telecom, Information
18

Technology

and

Lifestyle.

Salora has a pan-India presence with 30 offices and 300 after-sales

service centers to meet and exceed our customers expectations in
telecom and consumer electronics. We are the global service
partners for Sony Ericsson. Our manufacturing facilities are located
at the companys sprawling complex in Noida. The units are ISO
9001:2000,
IEC65
&
ISO
14000
compliant.
Philosophy
The legend SALORA appears in red, pure red, denoting an
organisation full of dynamism and vigor The joint letters, that form
our name, represent unity of strength and vision. The letter A
which appears as inverted V at the end of our name, speaks of an
organization which is willing to explore new horizons, break barriers
of convention and accepted belief. The swish below the initial letters
encompasses our belief that as an organisation its our duty, first
and foremost, to bring smile and spread joie de vivre amongst all
our stakeholders; employees, business associates, suppliers,
dealers, distributors and above all, our millions of customers
CEO
Gopal Sitaram Jiwarajka serves as a Chief Executive Officer and
Managing Director of Salora International Ltd. Mr. Jiwarajka has been
instrumental in setting up seven (7)manufacturing plants for colour
television, audio systems and components. Mr. Jiwarajka has wide
experience of 27 years in Manufacturing, Marketing and Finance. Mr.
Jiwarajka has been Director of Salora International Ltd., since August
20, 1987. Mr. Jiwarajka served as a Director of Other Public
Companies: Panasonic AVC Networks India Co. Limited, SAB
Electronics Ltd., FX Info Technologies Ltd., Salora Floritech Ltd.,
Jadoonet Ltd. and Associated Electronic Research Foundation. Mr.
Jiwarajka is a commerce graduate from Sydecham College Mumbai.
Board of Directors
Name
Executive/
Non
Executive

Gopal Jiwarajka

Executive

R. Khaitan

Executive

Sushil Jiwarajka Executive

S.R. Jiwarajka

Non

Independen
t/
Non
Indeppende
nt

No.
of
other
companie
s
associate
d
6

Non
-Independent
Non
2
-Independent
Non1
Independent
Independent 4
19

Gautam
Khaitan
P.N. Mehta
Patanjali
Keswani
Sanjeev
Duggal

Executive
Executive

Independent

Executive
Executive

Independent
Independent

2
2

NonExecutive

Independent

Sharp
Incorporated in 1985 as Kalyani Telecommunications and Electronics
Pvt Ltd, the company was converted into a public limited company
in the same year. The name was changed to Kalyani Sharp India in
1986. The company was promoted by Bharat Forge (BFL), the
flagship of the Kalyani House of Industries. In 1989, it entered into a
joint venture with Sharp Corporation, Japan - a leading manufacturer
of
consumer
electronic
products
to
manufacture
VCRs/VCPs/VTDMs. Sharp's VCR technical know-how was transferred
to
the
company.
The company manufactures consumer electronic goods such as
TVs, VCRs, VCPs and audio products. The products were sold under
the Optonica brand name. Due to intense competition from other
brand names and the entry of global brands like Sony, Panasonic,
Akai, Goldstar, etc, the performance of the company was affected.
After Sharp Corporation, Japan, acquired the majority stake in the
company in 1995, the company started selling the entire series of
its products under the Sharp brand name. Currently under Japanese
management, Sharp has a production base in 26 countries with 33
plants, and its products are used in 133 countries. The acquisition
by Sharp has helped Kalyani Sharp's marketing efforts to build up its
market
share.
Company also expanding its dealer network especially in the
Northen & Eastern Regions which help the company to increase the
market share of CTV in those part in India. Company launched
unique scheme like 7 years warranty for CTV etc. New CTV and
VCR/VCP model having better features, new Audio models, under
SHARP brand were introduced in the export and domestic market.
Company continues to show an impressive performance of VCRs
exports mainly to USA from its 100% Export Oriented Unit (EOU).
Company
mainly
exported
to
U.S.A.

20

Company has received awards from Department of Electronic, Govt.

of India for excellence in area of Consumer Electronics, & All India
Electronic and Computer Software Export Promotion Council has
selected for Excellence in Export under panel 'Consumer
Electronics'.
During 2000-2001 the company has introduced new range of CTV
and high end Audio models and a range of Microwave Ovens.The
company has accredited with ISO-9001 certification in the month of
February,2001.
To compete with the Indian Market the company plans to introduce
small audio as well as CD Mini component and Mini component with
VCD.The company has also absorbed the Technology and know-how
thru training of engineers at Japan/Malaysia and Sharp Corporation's
Engineers
are
being
invited
to
India.
The name of the company has been changed during May 2005 from
Kalyani Sharp India Ltd to Sharp India Ltd..
Company Objective
At Sharp India, our challenge is to create a balance between work
time and personal time, with products that can benefit people's
lives at work, at home, and everywhere in between. Sharp
consumer electronics can enhance your enjoyment, add to your
comfort and open new perspectives. Sharp business products can
boost your productivity and reduce costs. Sharp products are
designed to help individuals, families, and corporate teams connect
effortlessly, communicate clearly, and unleash creativity like never
before. Sharp is dedicated to improving people's lives through the
use of advanced technology and a commitment to innovation,
quality, value, and design
Board of Directors

Name of Director

a) T.Mori

Category

Non Executive

Number of
Directorships
of other
public
limited
companies
1

b) T. Yamazaki"

Executive

c) N. Yanagisnila'

Executive

21

d) Y. Mizuno"
ej S. S. Vaidya

Executive

Non-Executive.
Independent

I) K. Kawabe

Non-Executive

g) Mr. M.Takahashi

Non-Executive

h) Mr.M. Eiryu

Non-Executive,

i) Mr.F.Misuge

Independent

Non-Executive.
Independent

22

SPEL Semicondutors
Spel Semiconductor Ltd (SSL) (earlier known as Spic Electronics and
Systems Ltd) was incorporated as a private limited company in
Dec.'84 and thereafter converted into a public limited company in
Mar.'86. It was promoted by Southern Petrochemical Industries
(SPIC). SSL went public in Aug.'88 to part-finance the cost of setting
up a sophisticated electronic project for manufacture of computer
tapes, diskettes, jumbo rolls and integrated circuits. The company
entered into a technical collaboration with Computer Resources, US,
for a magnetic media project to produce computer tapes and floppy
discs. The company received the ISO 9002 certificate for integrated
circuit packing operations. On 1st Nov'95, the company was
converted into 100% EOU under Electronics Hardware Technology
Park scheme. Through this, it can concentrate more on exporting its
products to the world. SPEL Semiconductor Limited is the leading
one-stop turnkey Wafer Sort, IC Assembly & Test subcon facility in
India. Having established a track record at home, SPEL turned its
attention to the more demanding global market in 1995. It has since
been exclusively serving the Silicon Valley and other parts of the
world for over 12 years now. SPEL focuses on Lead frame based
Packages - both Surface mount & Through hole.
The company is planning to add 56 pin and 80 pin ICs in the coming
years. With the increased capacity and additional types, the
company is in a position to face the demand of ICs types. During
2000-01 under review, the company has secured the renewal of
Licence to operate as 100% Export Oriented Unit (EOU) under the
Electronic Hardware Technology Park (EHTP) Scheme for a period
upto December' 2004. As a specialty, SPEL offers onsite & offshore
Test Engineering support to Customers. SPEL ensures better
interaction & services to Customers through a Sales & Technical
support office based at Santa Clara, USA.
Vision
To be the Natural Destination for global Customers seeking costeffective Offshore turnkey IC Assembly & Test services.
Mission
SPEL Semiconductor Limited, an IC Assembly & Test Subcontractor
for over 17 years, works as one Team to achieve Zero defect, Just-intime, Cost-effective solutions with Service that is uncompromised.
Corporate Objectives
Profit

- Generate sufficient profit that enables our remaining

three Corporate Objectives.
23

Competence - Widen product portfolio to cover New Packages, make

Process Improvements and improve effectiveness of
Manpower by Training.
Stakeholders - Strengthen relationship with all stakeholders Customers, Employees, Vendors, Investors and
Lenders.
Growth
- Achieve growth by Market spread & distribution,
Customer
spread,
Revenue
and
Technology
improvements.
It is evident from the above statements that the company values
the societal concerns. SPEL has also undertaken tremendous
initiatives towards the environmental factors and has consistently
made an effort to keep the same clean and green. As per SPEL Our
environment provides all the resources essential for mankind. It is
now in risk due to problems affecting the environment like pollution,
global warming, destruction of forests, etc. We need to protect our
environment and conserve the resources for the future generation. If
no steps are taken, living on this planet would become impossible.
SPEL understands that every individual has a responsibility towards
our environment. They are willfully devising measures and
encouraging employees to care for the environment and protect it
through conservation of resources, waste minimization and proper
disposal, pollution prevention and planting of trees.
CEO
Dr. Muthiah completed his Bachelors degree in Engineering from
the University of Madras and subsequently did his Management
studies at the University of Detroit. The Anna University, Chennai,
India conferred an honorary Doctorate Degree in Science on him. Dr.
Muthiah has been the CEO of the company since July 2001. Dr.
Muthiah is connected with several leading industries in various
capacities such as Chairman, President, Vice Chairman and Director.
He heads the $650 million Southern Petrochemical Industries
Corporation Limited. Dr. Muthiah is a member of the Indian Prime
Minister's Advisory Council on Trade & Industry and is the Honorary
Consul of Belgium for Southern India. He is also connected with a
number of Educational, Cultural & Sports Organizations.

24

Board of Directors

25

TVS Electronics
A flagship of 90 years old TVS group,TVS Electronics Ltd is into the
business of IT Management Services and Computer Peripherals. TVS
Electronics got its present name after the merger of erstwhile TVS
Electronics Limited under a scheme of merger which was duly
approved by shareholders and Hon'ble High Court of Madras.
Pursuant to this merger,the company is in the process of allotting
one equity share for every one equity held by the shareholders of
erstwhile
TVS
Eletronics
Ltd.
During 2002-03 two new products viz TVS Sprint,a retail automation
product and TVS Proton,World's quickest Bill printer were launched.
The above products are indigenously developed one. The company
is having plants at Tumkur(Bangalore),Guindy(Chennai).
Chairman
Mr Venu Srinivasan is a Bachelor of Engineering from Madras
University and a Master in Science from Purdue University, U.S.A. He
is the eldest son of (Late) Mr. T S Srinivasan and grandson of (Late)
Mr. T V Sundaram Iyengar, the founder of the TVS group of
companies.
Mr. Venu Srinivasan now aged about 54 years (born on 11th
December, 1952 ) has been the
Managing Director of Sundaram - Clayton Limited since May, 1979
and the Managing Director of TVS Motor Company Limited from
1986. Since July, 2002 he is the Chairman & Managing Director of
TVS Motor Company Limited.
He was the Chairman of the Confederation of Indian Industry (CII)
(Southern Region) and has been associated with CII for nearly 17
years in various capacities. He was also the Past President of
Automotive Research Association of India, Pune, a Past President of
the Society of Indian Automobile Manufacturers & Association of
Indian Automobile Manufacturers. At present, he is the Honorary
Consul General of Republic of Korea, Chennai.

26

Board of Directors

27

Videocon
The Company's principal activity is to manufacture and market a
wide range of electrical and electronic products, which includes Air
conditioner, Refrigerators, Programmable Washing Machine and
assemblies
and
sub-assemblies.
The
Company
has
its
manufacturing plant at Aurangabad.
Vision
Videocons mission is a reflection of continuity and change
Videocons mission expression has been crafted to envelope both
extant and emerging realities:
To delight and deliver beyond expectation through ingenious
strategy,
intrepid
entrepreneurship,
improved
technology,
innovative products, insightful marketing and inspired thinking
about the future.
Values
Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group,
completed his education in Ahmednagar and Pune. He was a
successful sugarcane and cotton cultivator. As a next logical step to
vertical integration, he boldly took upon an entrepreneurial venture
by importing machinery from Europe to set up the Gangapur Sakhar
Karkhana (Sugar Mill) in 1955. Those were the times when the
village did not even have electricity. Thus was unleashed an
Industrial
Revolution.
The die was cast. Over the years, Nandlalji's path-breaking attitude
found expression in a myriad ways, earning him the well-deserved
reputation of the pioneer of industrial activity in Marathwada India.
In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar
and Pradeep into business. Through a technical tie up with Toshiba
Corporation of Japan, he launched India's first world-class color
Television: Videocon. Today, Videocon is household name across the
nation- India's No. 1 brand of Consumer Electronics & Home
Appliances, trusted by over 50 million people to improve their
quality of life.
MD and CEO
Venugopal Dhoot (Born 1944 in Mumbai, India) is an Indian business
tycoon. He is an alumni of prestigious Sydenham College, Mumbai.
28

He was born into a wealthy farming family. He is married, and has

two children. His personal fortune is estimated as the equivalent of
1.6 Billion United States dollars, making him a billionaire.
His father, the late Nandlal Madhavlal Dhoot, set his sons up in his
business, Videocon Electronics. The company's major breakthrough
came when it received one of India's first licenses to make color
televisions. As of 2006, Venugopal is its chairman, and it now makes
a wide range of electric and electronic items. His company recently
bought a color picture tube unit from the French company
Thompson SA, and a refrigerator business from Swedish company
Electrolux. According to Forbes, he is the eighteenth richest man in
India. His brother, Rajkumar, is a member of the Indian Parliament.
Board of Directors

Name

Executive/
Executive

Venugopal N Dhoot

Non-Executive

Pradeepkumar N Dhoot

Non-Executive

Naveen B Mandhana

Non-Executive

Subash S Dayama
Avinash Malpani
Deepak Kumar Jain

Non-Executive
Non-Executive
Non-Executive

Hiren N Shah

Non-Executive

Non Independent/
Indeppendent
Non-independent
Non-independent
Independent
Independent
Independent
Independent
Non-independent

29

Non

Board of Directors
Company
Name
BEL
Crompton
Greaves
Havells
MIC
Electronics
Opto
Circuits
Salora
Sharp
SPEL
Videocon
TVS
Electronics

No.
of
non- No.
independent
independent
directors
directors
9
9
3
6

of Stockholding of
Directors
NA
0.09%

4
7

7
5

3.45%
9.18%

NIL

3
6
4
3
5

5
3
4
4
4

NIL
NIL
NIL
6.69%
1.08%

Here, we see that BEL which is a PSU has the highest number of
directors. The companies in the non-govt sector have directors as
less as 7. Most of the companies have a balance between the no of
directors which are independent and non-independent. We have
only 5 companies wherein the directors have stockholdings. When
the director has invested in the company, his decisions tend to be
influenced by his personal interests. However, when the directors
have no direct stake in the company, they make be ready to take
more risks as their wealth is not at stake.

Trading volume (Average)

Company
Name
BEL
Crompton
Greaves
Havells
MIC Electronics
Opto Circuits
Salora
Sharp
SPEL

Volume yearly

Volume weekly

125537
229147

Volume
monthly
35191
139572

46312
540593
61499
33497
52842
113639

31575
18654
41822
4428
31943
107444

8550
4098
26278
1579
19867
44187

30

25695
145923

Videocon
TVS Electronics

143933
32938

69189
18232

58190
15224

As we see in the above table, the volumes are the highest for
Crompton Greaves and the least for Salora. This data is useful to an
investor from the point of view of liquidity. A small investor would
like to withdraw money as and when he needs it. If the volumes of a
particular stock are low, the investor might not be able to liquidate
his position. Thus he would not want to invest in such a stock.
The reason for lower volumes could be that a major proportion of
the holdings is with the promoters (as can be seen in the table
stockholder analysis). Thus the quantity of stock available in the
market for trading purposes is less.

Mutual Funds trading in the company stock in the

last 6 months
Company Name
BEL
Crompton Greaves
Havells
MIC Electronics
Opto Circuits
Salora
Sharp
SPEL
Videocon
TVS Electronics

No.of MFs investing

29
33
5
2
1
1
NIL
NIL
NIL
NIL

Out of the 10 companies, mutual funds have traded in 6 of them.

However, only BEL and Crompton Greaves has been able to
generate interest from a large no. of MFs in India.

Stock Holder Analysis

Company
Name

Promote
rs&
Director
s%

BEL

75.86

Instituti FIIs
onal
%
investor
s
%
3.66
12.16
31

Emplo
yees

India
n
Publi
c
%
2.88

MF
%

6.6
3

Crompto
n
Greaves
Havells
MIC
Electroni
cs
Opto
Circuits
Salora

39.13

4.09

16.36

9.4

67.31
37.17

3.96
18.37

14.96

12.96
44.49

30.3

29.98

66.67

0.06

Sharp

80(Forei
gn)
55.99
36.72

2.64
3.81
2.87

0.02

60.08

0.38

2.38

SPEL
Videocon
TVS
Electroni
cs

20.
42

39.62
4.66

24.84 3.7
8
19.98 0.0
1
44.01
60.37 0.0
4
39.90

In all the companies, we find that employees hold no part of the

equity share capital. Majority of the equity of BEL is held by the Govt
of India. The promoters hold two-thirds in the case of Havells India
and Salora International. The promoter holding is the least for Sharp.
When the promoters hold a major chunk of the capital, it reflects
their confidence in the future of the company. A reduction in the
proportion of holdings may be due to personal reasons too.
FIIs hold as low as 0.02% in the case of SPEL. In the present times,
most of the companies which have bright future growth prospects
tend to attract foreign investments.

Corporate Responsiveness towards the society

BEL
It is the constant endeavour of your Company to adopt and maintain
the highest standards of ethics in all spheres of business activities.
Your Companys philosophy of Corporate Governance is based on
the principles of honesty, integrity, accountability, adequate
disclosures and legal compliances. It strives for transparency in
decision making and shall avoid conflicts of interest. It also accords
importance to adherence to adopted Corporate values and
objectives and discharging social responsibilities as a corporate
citizen. In keeping with its professional approach, company is

32

implementing the precepts of Corporate Governance in letter and

spirit.

Crompton Greaves
Crompton Greaves Limited (Crompton Greaves', CG' or the
Company') continues to remain committed to highest levels of
Corporate Governance and seeks to achieve a healthy blend of
performance with conformance; creating the environment and the
means through which corporate objectives are attained. The
Company is committed to maintaining high standards of ethical
behavior and Corporate Governance, and to serving its shareholders
with honesty, fairness and integrity. The 5 CG Values of Performance
Excellence, Leading Edge Knowledge, Nurturance, Customer
Orientation and Intellectual Honesty are well entrenched in the
performance culture of the Company and permeate all actions of its
employees. The Company strives to achieve well-defined levels of
Business Excellence by continuously benchmarking itself against
standards like the CII-Exim Bank Business Excellence Model and the
CII HR Excellence Model. The dividend and capitalisation policy, the
vendor development practices and the customer proximity
initiatives all reflect the requisite balance between the interests of
its various stakeholders - shareholders, employees and business
partners.
This year, the Company has aggressively increased its initiatives in
Community Development through declaration of a formal Statement
of Intent' on Corporate Social Responsibility and has taken concrete
steps towards fulfilling its plans of giving back' to Society. Adequate
attention is given to the Environment dimensions as well as Health
& Safety, and impact of business actions, incorporating benchmarks
and standards in these areas, into business processes.
This year, as a concerted effort to achieve validation to its Health &
Safety as well as Environment thrust, several of the Company's
manufacturing Units have received ISO 14001 and OHSAS 18001
Certifications. Hence, as at date, all the Company's manufacturing
Units have been certified.

Havells India
While it acquires companies and builds internally, Havells never
loses sight of its responsibility as a good corporate citizen. It
believes that serving people with meager or no means is the duty of
every well-to-do person. It consistently puts that philosophy into
action and has initiated several projects for social causes. This has
33

greatly increased the number of children attending school regularly

and also alleviates hunger.
Corporate Social Responsibility (CSR) at QRG portrays the deep
symbiotic relationship that the group enjoys with the communities it
is engaged with. As a responsible corporate citizen, it tries to
contribute for social and environmental causes on a regular basis.

MIC Electronics
MIC believes that best corporate governance practices should be
enshrined in all activities of the company. This will help the company
in conducting the affairs of the company in an efficient manner and
also helps in achieving its goal of maximizing value for all its
stakeholders. Its corporate philosophy envisages complete
transparency and adequate disclosure with an ultimate aim of value
creation for all players i.e. stakeholders, creditors, Employees.
The Company is in compliance with the requirements of revised
guidelines on Corporate Governance stipulated under Clause 49 of
the Listing Agreement with the Stock Exchanges, and with the
adoption this year, of a code of conduct for Non- Executive Directors
also, which has been put on in the website of the company at
www.micelectronics.com

Opto Circuits
OCIs philosophy on corporate governance continues to envisage
transparency, accountability, integrity, consistent value systems,
delegation and responsibility. The company tries to work on these
principles in all its interactions with shareholders, employees,
customers, suppliers and statutory authorities. The corporate
governance comprises of factors like regulations, compliance,
policies and economic environments, voluntary practices and
disclosures. The company is committed to achieve and maintain
high standards of corporate governance.

Salora International
Salora International Limited follows a system of Corporate
Governance which ensures transparency fairness, independence,
accountability, integrity and social responsibility. The Company has
been following the regulatory compliances with strong emphasis on
Corporate Governance to protect investors' interests in letter and
spirit. The Company also ensures that Corporate Governance
practices are periodically reviewed and revised incorporating
appropriate checks and balances at various levels of management.
The Company is committed to ethical values and sell discipline
34

through standards of good governance hinging on transparency

efficiency efficacy, full disclosure in its dealings, appropriate checks
and balances directed at sustaining shareholder's interests,
achieving financial propriety and overall organizational goals.

Sharp
According to Sharp India Sharp India Limited (SIL) believes in good
governance, fair, efficient and transparent business operations and
in fairness to all the stakeholders in the Company, with proper
disclosure of relevant financial and non-financial information.
Sharp India has been actively pursuing environmentally friendly
technologies and has shown significant emphasis on technologies
that promote lesser power consumption. They have been sourcing
these technologies from the parent company, Sharp Electronics,
Japan.
They also have a detailed code of conduct towards various
stakeholders. The detailed code is summarised under the following
heads
Practice of Fair and Open Management

Enhancement of Customer Satisfaction

Disclosure of Relevant Information /Protection and Security of

Information

Contribution to Conservation of the Global Environment

Sound, Equitable Economic Activities

Respect for Human Rights

Creating a Safe, Fair, Motivating Work Environment

Harmony with the Community

SPEL Semiconductors
The Company's philosophy of Corporate Governance is proactively
meeting its obligations to its Shareholders and creating goodwill
with
all
its
Stakeholders.
SPEL has always believed that sound Corporate Governance
practices is the cornerstone of any enterprise and thus form an
integral part of its business policy. Even before the standards were
made mandatory, SPEL has been continuously gearing itself to
surpass these. The results of good CO practices are reflected in
confidence reposed by the various Stakehoiders. SPEL believes to
enhance the long-term Shareholders value and maximize interest of
other Stakeholders. Various measures have been undertaken to
enhance and further this endeavor.
35

TVS Electronics
The report on Corporate Governance reflects the commitment of the
organization to its values and business ethics and provides a picture
to the Shareholders on management of the organization and the
methodology the Board functions with transparency, accountability,
professionalism, risk management and code of ethics, as its basic
principles.
The Company acknowledges the need and importance of corporate
governance and has adhered to the underlying principles of
corporate governance and complied with the code of corporate
governance as an integral part of its day-to-day operations.

Videocon
The initiatives by Videocon include a first-rate academic haven for
the high-school education of underprivileged girls and a 100%
world-class, charitable hospital specializing in cancer and heart
surgery for the benefit of societys marginalised sections. Videocons
deep-rooted commitment to environment conservation translates
into process improvements that help recycle CRT glass, curb carbon
emissions and other pollutants. Among others, the groups India
glass plant has supported a large-scale initiative like the plantation
of
over
2,00,000
teak
trees.
The groups sponsorship of cricketing events across the globe
underlies its commitment and passion for sports as well as its goal
to uplift the spirits of a global audience. Videocon has not forgotten
the grassroots either; the Videocon School of Cricket launched in
Kolkata under the guidance of former India captain, Saurav Ganguly,
aims to inspire budding cricketers in the age group of 10 to 17 years
to greater heights

36