At the end of March 2009 (prior to the merger with Kraft), the firm had around Rs. 271.5 Crores in total cash and cash equivalents. Maintaining liquidity is essential for any business, especially to prepare for unexpected events. To establish the optimal cash reserve needed, it is important to identify potential unfavorable events and assign probabilities to them.
These ratios suggest that the company is capable of fulfilling its immediate financial obligations and has an effective operating cycle. Furthermore, it demonstrates the company’s ability to meet its working capital needs by utilizing its current liabilities.
The company’s Debt/Equity ratio is extremely low at 0.02%, indicating that the majority of its funding comes from equity. This demonstrates a secure investment with minimal risk, allowing the company to easily secure additional debt and equity.
In the event of future capital needs, we recommend that the company consider leveraging its finances through borrowing. It is important to note that the company possesses significant growth opportunities.
The company’s Reserves and Surplus enable them to finance projects internally. Additionally, with an interest coverage ratio of 136.88, the company would have no trouble acquiring debt at a potentially low cost. It is important to note that all financial information in this report is based on the March 2009 Final Report as a result of a subsequent merger.
The company has manufacturing facilities in various locations, such as Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh, Bangalore in Karnataka, and Baddi in Himachal Pradesh. It also has sales offices in Mumbai, Kolkata, New Delhi, and Chennai. The corporate office is based in Mumbai. Furthermore, the company operates a Cocoa Research Centre in Kerala. Cadbury India Limited plans to substantially expand its manufacturing capacity at Malanpur in Madhya Pradesh.
The company is involved in operating in five different categories, which include Chocolate, Beverages, Biscuits, Candy, and Gum. In each of these categories, the company provides a diverse range of products.
Cadbury India has consistently been recognized as the 7th Great Place to Work and the leading FMCG company in India by the Great Place to Work Institute. Additionally, the company has taken several steps to enhance safety culture at its plants.
With over 70 percent of the chocolate market share, Cadbury India is a highly esteemed company. It has achieved various accolades, such as winning the “Client of the Year” at EFFIES 2012 and being ranked 4th among Fortune India’s 50 Most Admired companies. Known for its excellent reputation, Cadbury is renowned in the chocolates and beverages industry.
Cadbury has successfully reduced their specific energy consumption, CO2 emissions, waste generation, and water consumption by 5% through a range of initiatives. These initiatives involve the use of biogas for hot water production and the implementation of diffusers in multiple factories. Consequently, carbon emissions have decreased by 8% and energy consumption has been reduced by 5%.
Cadbury India is committed to supporting environmental initiatives and improving the welfare of communities where we work. We partner with national and international organizations to tackle important issues such as hunger (Akshaya Patra), responding to natural disasters (SARVAM), fulfilling wishes (Make-a-Wish), and promoting informal education (Sahyog).
Through a merger with Kraft Foods, Cadbury India gains the advantage of maintaining its skilled and varied group of executives and managers. The decision was made to keep the existing management team while also incorporating prosperous tactics from Kraft Foods, which ultimately forms an exceptional leadership team for Cadbury.
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