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and whoever wants to be first must be slave of all. For even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many.”

20 Jun 2015


AKZO NOBEL INDIA LTD;  Today I present the details of a multinational company Akzo Nobel .  It is a Dutch multinational active in the fields of decorative paints  and speciality chemicals. Headquartered in Amsterdam  .  The company has activities in more than 80 countries and employees approximately 47000  people.  Sales in 2014 were EURO 14.3 billion.  Following the acquisition of ICI, the company has restructured in 2nd January 2008 and rebranded itself in 25th April of the same year.

Akzo Nobel India Ltd. is incorporated in the year 1954, is a Mid Cap company having a market cap of Rs.5989.78 crore operating in paints and pigment sector. Over the years, it witnessed sustained expansion growth and transformation in 2008, Akzo Nobel NV become owner of the entire equity share capital of Imperial Chemical Industries Ltd by virtue of which the company became a member of the Akzo Nobel Group.  Akzo Nobel India manufactures and markets paints, coatings and speciality chemicals.  DULUX is most popular brand of its decorative coatings business while the performance quoting business provides solution to many industries and sectors. All their manufacturing facilities have an ISO  14001 certification of Environmental Management System.  

DULUX, from the house of Akzo Nobel, the leading global paints and coating company has been conferred the title of Super Brand by the Super Brand Council.  The Super Brand Council, an independent authority on branding has awarded DULUX as the only super brand in the paint category.  Akzo Nobel has just completed 60 years of service to its customers and in spirit celebration.

They have also commissioned a factory at Gwalior manufacturing water-borne decorative paints established at an investment of Rs.140 crores.  This factory has enhanced their company production capacity by 30%.  One of their products (Dulux Super Clean) launched  last year has been accorded the status of products of the year 2014 innovation and sustainability continue to underline all their efforts in Akzo Nobel India Ltd.  Deluxe strength its professional portfolio by introducing Weather Shield Nat-Gen - Exterior Emulsion with innovative Puma technology.Dulux is its most popular brand of its decorative coating business while the performance coating business provides solutions to many industries and sectors including Automotive, consumer electronics, Power, Aviations, Shipping & Leisure Crafts, Construction, Oil and Gas, Water & Waste water, Food and beverages etc.  The chemical business in India sells more than 30 products grouped under organic peroxides, Metal alkalies and polymer.With the employees strength 2000 + Akzo Nobel India has manufacturing  sites , offices and distribution networks spread across the country. Decreasing strength in Crude Oil price in the international market is also a plus point to the company. We may also look into the financials of the company.

Financials - Equity Capital - 46.66Cr., Share Price as on 19-06-2015 - Rs.1269.05 PE - 28.84, EPS - 44.16, F/V of share Rs.10/-, B/V - 221.30 Industry PE - 48.43. Bonus History - 03.08.1966 - 2:5, 03.08.1978 - 1:3, Dividend - 2001 to 2015  55% 150% without any interruption. Gross  Sales in crores (2011 to 2015) 1096.82 , 1942.52, 2179.74, 2371.71, and 2469.79.  Net Profit in Cr. from (2011 to 2015) - 176.65, 201.78, 218.83, 150.22 and 186.31.

Their last 4th quarter result shows 18.3% less when compared to 2014.  Hence the share price decreased a lot in the share market.  This multi national share is now available in a good PE ratio 26. But industry PE is 48.43. Therefore clients can consider it for long term investment , minimum period of three years for capital appreciation including bonus.  The company authorities told that their performance will be increased in the current year better than last year.  I have holdings in this company but no vested interests.

Thanks,                                                            See you later.