Cadbury India Limited

We salute all those share holders of Cadbury India who are steadfastly giving their time and money in pursuing the High Court case against compulsory acquisition of shares from remaining minority share holders.

There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India.

We strongly feel that Government of India and SEBI should amend the laws so that Companies using their " brute majority " are not able to " compulsorily " buy out minority shareholders at what they perceive to be the " fair value " . Delisting may be OK . But a High Court Order for selective share reduction ( of Non Promoter Share holders ) is a different matter altogether.

 1 ) If a company wishes to buy back compulsorily then in the voting procedure the majority holder ( promoter ) should be debarred from voting . Only the small share holders should have the Right to vote on that particular Resolution .

2 ) As in the case of land acquisition , the Company should state valid reasons for acquisition of remaining shares ( In Cadbury 's case the remaining 2 odd  % share holders can , frankly , in no way alter  the Company 's policies.)  Only a few more Annual Reports are to be despatched and a few more chairs at the AGM .  ( Cadbury India Limited 's shares were delisted w.e.f  20-01-2003 )

3 ) There should be a soletium  ( a premium over and above the fair value to compensate for compulsory buy out ) of 50 %

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

However , we  sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move.
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Compulsory Back Back of Shares- Violates Fundamental Right to Equality

Regarding the move , earlier of Cadbury India Limited and , now , by Shakti Met-Dor Limited :-

Compulsory Buy Back of Shares ( selectively from minority Non promoter Share holders ) is violative  of Fundamental Right of Equality enshrined in the Constitution of India

Such a move creates two separate and unequal classes of Shareholders , i.e. Promoter Share Holders and Non Promoter Share Holders .

Please read this very informative Post :-

http://www.legalservicesindia.com/article/article/squeeze-out-of-minority-shareholders-1503-1.html

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For Shakti Met-Dor , please click :-

http://www.rareindianshares.info/2013/05/shakti-met-dor-compulsory-acquisition.html

--------------------Regarding Compulsory Cancellation of Shares Moves  by

Cadbury India Limited 

Shakti Met-Dor Limited  ((subsidiary of German giant Hormann Beteilgungs Gmbh )

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The Majority cannot dictate to the Minority to compulsorily sell their Shares and that too at rates set by Majority Appointed Valuers / C A s.

This is what was done by Cadbury India and , now , being done by Shakti Met -Dor (subsidiary of German giant Hormann Beteilgungs Gmbh )

Delisting may be OK . But forced cancellation of Minority shares is not done even in Capitalism

Capitalism means Demand and Supply.

If the Majority wants the Minority 's shares then , to Quote from Mario Puzo 's Godfather " " They should make an offer we cannot refuse ". Let them approach us and buy at a mutually agreeable price but not at a Dictated Price.

Free will transactions are the essence of Capitalism

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http://www.rareindianshares.info/2013/05/corruption-is-there-in-indian-corporate.html http://www.suchetadalal.com/?id=175202d7-a5ce-be2f-492fe1477460&base=sub_sections_content&f&t=Essar%27s+Delisted+Saga

 http://www.business-standard.com/india/news/cadbury-raises-buyback-price/421719/

 http://www.moneycontrol.com/news/business/why-didn39t-you-give-fin-projections-to-ey-hc-asks-cadbury_562074.html

http://seekingalpha.com/news-article/1520805-cadbury-kraft-india-one-of-fastest-growing-operations-for-kraft-globally

http://rareindianshares.blogspot.com/2011/01/cadbury-quit-india.html

http://www.gauravblog.com/?p=1277

http://www.kraftfoodscompany.com/in/en/Brands/index.aspx

http://www.rareindianshares.info/2012/07/ecellent.html

http://altaisadvisors.com/blog/2012/07/08/cadbury-india/comment-page-1/#comment-1517

http://www.rareindianshares.info/2012/11/cadbury-india-or-mondelez-international.html
http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3 --------------------------------------------------------------------------------------------------------------

March 19, 2014

Cadbury India New Name Mondelez India Foods Limited

Monde is Latin for World

 Delez means Delicious

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Cadbury India Limited - Annual Report 2010 - Comments

Year Ended 31-12-2010

Sales ; 2503 crore

Gross Profit : Rs. 314 cr

Net Profit : Rs. 209 cr

EPS : Rs.67 / 20 p.

Share Capital : Rs. 31 cr 07 lakh

Reserves : Rs.701 cr 29 lakh

Chairman's Statement ( Page 1 - Annual Report 2010 )

 "2010 was another good year for Cadbury India Limited . Our net sales grew by 29 . 4 % over 2009 and our profit before tax grew by 6 . 4 %.

The robust growth was fuelled by superior product innovation and sustained investment behind our power brands ---- "
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Blog's Comments

EPS is Rs. 67 / 20 .Cadbury India Limited 's Peer Nestle India quotes ( in a depressed Share Market ) at PE of 46 .
http://www.moneycontrol.com/india/stockpricequote/foodprocessing/nestleindia/NI

At this puts the Market value of one share of Cadbury India Limited at Rs. 3100 /- per share. Considering that it is a Compulsory Back  back and the positive re rating og Cadbury India Limited because of Krafts Foods Brands like Tang , the Buy back should be at Rs. 4500 /- + per share.

http://www.rareindianshares.info/2011/01/cadbury-india-limited.html
http://www.rareindianshares.info/search?q=cadbury+quit

http://www.rareindianshares.info/2012/11/cadbury-india-faces-tax-evasion.html
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Cadbury India - Excellent 2011 Results

For the year ended 31-12-2011

Sales 3488 Cr.
Gross Profit - 448 Cr.
Net Profit - 297 Cr.
EPS - Rs.95- 62 paise.
Dividend -Rs. 2 per share.

Share Capital - Rs.31 Cr.
Reserves- 991 Cr.

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Cadbury has EPS of Rs. 97 . Going by the Peer P E. of 40 of   Nestle India the current Value of one share of Cadbury India is Rs. 4000 Per Share
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Cadbury India Does Well in Year Ending 31-12-12 - EPS Rs.97 / 68 p

For Financial Year Ending 31-12-12

Sales : Rs.4124 cr

Gross profit ; Rs. 451 cr

Net Profit ; Rs. 303 cr

EPS Rs. 97 / 88 p

Dividend : 20 % ( Rs. 2 per share of Rs. 10 )

As on 31-12-12

Share Capital : Rs. 31 cr

Reserves  Rs. 1287 cr

AGM : ( 65 th ) : 25-06-13 at 3 PM ,at Mumbai
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HUM MEHNAT KASH ISS DUNIYA SE
JAB APNA HISSA MANGEY GEY
IK BAGH NAHI; IKK KHET NAHIN
HUM SAARI DUNIYA MANGEY GEY
( Josh Malihabadi )

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March 30, 2012

Cadbury India Doing Very Well - Link to LiveMint Post

Please click the Link :-

http://www.livemint.com/2012/03/28220439/Cadbury-India-hopes-to-sustain.html

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Blog :Important Consideration For Investors . A Court Case is pending For Compulsory Acquisition From Minority Share Holders 

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Rs. 450 Crore Bonanza For Cadbury India ??

Please Click :-

http://www.business-standard.com/article/companies/hefty-price-fails-to-deter-bidders-for-mumbai-s-cadbury-house-113052400791_1.html

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General Warning : Investment in Shares Can be Injurious to Your WEALTH

Disclosure : The Blog writer in his / family names has  holdings in this Company. So please make suitable " provisions " for any vested interest.

NB :All information given in good faith. Please recheck every point before taking any investment decision. No responsibility with this blog / blog writer.