@reach.sriharsha wrote:
Viaan Industries
In Sep 2014 Mr. Ripu Sudan Kundra(AKA Raj Kundra) & Mrs. Shilpa Shetty Kundra acquired
defunct Kolkata based Hindusthan Safety Glass company from shareholders and promoters
with intention to improve their Jems and Jewellery business. Following is the news link
https://economictimes.indiatimes.com/markets/stocks/news/shilpa-shetty-raj-kundra-snap-up
-defunct-hindusthan-safety-glass-industries/articleshow/42311328.cms
Currently company business as per its website looks like below( http://www.v-ind.com )
- https://www.viaanstudios.com/
Viaan Studios is a leading developer and publisher of high quality games and
animation.- https://www.chasebid.com/
Bid and Buy website- http://bestnaturalsindia.com/
Best Naturals is one of the first Ayurvedic brands in the world to combine the
power of astrology with Ayurveda. Direct selling and invite only by current
distributor.- https://www.matchipl.com/
Poker app. Looks like they are trying to do their own ‘cricket -IPL’ ‘Kabbaddi’ in poker
arena. Jointly owned by Viaan & International Federation of Match Poker
Do not get confused with IPL terms, this has nothing to do with Cricket IPL
and Rajastan Royals.- http://www.v-ind.com/yo-yo-yogurt/ & http://yoyoooo.in/
Our Pre-mix Major ingredient’s are from USA especially for Yo-Yo and we assure you
only the finest ingredients are used.Viaan Industries also entered into mobile phone business in 2015. Company claims it
imports the phones from China and major revenue comes from selling phones in CIS region.
Related news link.
http://www.thehindubusinessline.com/info-tech/shilpa-shettybacked-viaan-enters-mobile-pho
ne-segment/article7916330.ece ).
About 5 lakh Viaan handsets are currently manufactured in China, which Kundra estimated
will be absorbed by the market within three-four months. “We might assemble the handsets
in India,” Kundra said.
APO Mobiles, a Ukraine registered company, has taken the rights of selling Viaan phones in
7 CIS countries, including Ukraine, Belarus and Kazakhstan, and is also planning to do the
same Europe. “We intend to generate revenues of $ 80 million in one year,” Kuldeep Kumar,
Managing Director of APO, said. . In all these products/Services brand Ambassadors are
Shilpa Shetty and Raj Kundra themselves. In house ambassadors no additional expense.**Financials**Please note since pre 2015 does not qualify I have studied last 2 year available data for
below analysis.
Some interesting snippets from AR 2015-1016Stock manipulation story. This was during very early days of taking over company. Unless
something serious I am missing, I will take this story with a pinch of salt.
**Analysis**
- In year 2015 company was taken over from defunct state by new management and
new management spent money to get into track. So first year earning should not be
considered for all fairness.- In second year company posted 11cr profit but they have not paid any tax. This is not
good. Since the company has many import based products I expected taxes to be
paid in due time.- The current AR financial result do not talk about viaan mobile phone related
business at all. So I hope its gone bad.- Their Poker league can bring some cash. Playing teams have to pay certain amount
and they have also back integrated with Mobile app so that general public can also
pay. Its paid app. So some revenue can flow from it, but very little. Not sure how
much profit/revenue split between viaan and International Federation of Match
Poker.- They seem to have app for each of their business line. For example poker league
is major business and they have paid app through which people can participate
Similarly they have a TV show in colors “Aunty Boli Lagao Boli” which is
integrated with “chasebid” app/website through with people can bid live. The
show might have finished its 1st season. Since I did not see this Sunday(as per
their website). So if some one know about TRP or popularity of this show it would
be great to know how Viaan is doing with respect to its products(TV show &
gaming app).- The company is booking sales, but its trade receivables stands at 60cr. That means
company booked sales but money not received. Please note their sales figure is 135
Cr. so trade receivable is roughly 44% of their sales. Last year Trade receivables
were at 8cr(march 2016) this year March 2017 it is 60Cr. !!!. Close watch on Trade
receivables needed in future also.
- In addition to above details, the Receivable days is increased from 89 days in 2016
95 days in 2017. Which means avg sold item gets its money after more than 3
months.- Short term borrowing (the money needed to run company) increased from 80 lakh to
1.32 cr. This may be valid because as mentioned in AR, they have set up new office
and considerably invested in employees.
- All in all promoters are trying to make good business case by foraying into many
businesses and hope things to work in one or another. One good thing is they are
trying to monetise from various aspect via technology and app.- Following are few questions which I have
○ Can Raj & Shilpa would have done such diversified business with private
company?
○ If it can be done via private company why they chose public company path?
○ Why they did this by acquiring defunct listed company? (This partially
because lots of regulations and also to get their IPO flowing they need good
business to be established)- Shilpa Shetty is associated(director) with another company “Best Deals TV Pvt Ltd”,
which is from Akshay Kumar. Looks like they may be sharing facility etc. In AR some
entries for advances as well. They have agreement to sell their products via
teleshopping looks like. Since Akshay is a Canadian citizen, does it have any other
effect? (Need to check more on this aspect).- In 2017 AR company is claiming their UAE business is doing very good. But its not
mentioned details of its operations. Company has also an office in LONDON.NOTE: Some of the points above might be normal for any company, please provide your comments.
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