INTRODUCTION OF REPORT:

COMPANY HISTORY
To think of the future, you need to think of your past. It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay Mansukhani started a company called Onida with just a goal of manufacturing television sets and going beyond convention. By the end of that year, we started assembling television sets at our factory in Andheri, Mumbai. With the passage of time, superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name.

It wasnt about consumer electronics. It was always about the consumer. What really sets Onida distinct from others are that we have always tried to pave our own road and create a niche by understanding what exactly does the consumer need. What is it that others are not offering? Then we asked some more questions: 1. Is there an inherent consumer need that is not being met by the current products in the market? 2. Is there anything we can significantly add, upon entering the category? 3. Is there something that the other product players have overlooked, which we can address? Only when do we have an affirmative answer on any of the above, do we work on the offerings? Thus, when we say, our products are different; we are so because we cater to something that others do not. Some of the innovations that surprised the world. After having established a reputation for being an intelligent and pioneering innovator in the application of technologies: we were the first to launch the Webcruiser TV, the worlds first built-in Internet TV which offers the benefits of a personal computer and a TV, and that too, equipped with a a modem, printer port and a cordless keyboard with it; the first to launch the ultimate in Flat TV technology with Onida Black with a high picture clarity with DVMC which ensures uniform scanning at the centre and corners of the TV screen. Again, the Onida Twister was the first TV that turned to face the viewer; we were the first to introduce SRS technology for surround sound in Audio port. In 1999, we were the first to introduce the pure flat TV in the country. The Candy was the first instance of any brand providing a multi-coloured cabinet option to its customers.

COMPANY PROFILE:
Mirc Electronics Limited has ventured in the field in 1981. It is principally engaged in the designing, branding, assembly and marketing of Televisions & other products in India and overseas under brand name of? ONIDA?

ONIDA? Brand is ranked as premium brand among domestic brands. We have wide distribution network through 33 branches with 230 Customer Relation centers spread across India. The annual turnover of the company is US $ 400 Million with 1500 employees. Mirc Electronics Limited has a technological association with JVC, Japan for Color Television. In co-operation with JVC, we are able to develop worldclass products. Be it features, looks or size we have an unmatched range of televisions to suit the diverse preference of customers. We have full-fledged R & D centers in Mumbai and Delhi and our R & D engineers are also located in JVC, Japan.Our constant efforts to introduce products of substance that offer the very best in technology and the finest design have made Onida a leading player in the electronics and entertainment business today. Our Wada plant near to Mumbai is completely dust proof automated plant accredited to ISO-9001. We have installed capacity of our Wada plant is 2.5.Million sets per annum. We are having backward integration for vital components such as PCB, Tuner and Speakers etc. we have in house fullfledged moulding facilities followed by painting shop. We have branch office in Dubai. Dubai branch commence operations from 2001. With the help of Dubai office Mirc Electronics Ltd. is able to create good presence of ONIDA brand in Middle East & Africa. Apart from Middle East ONIDA products are also available in Russia & Ukraine.

DETAILS OF COMPANY:
Company:
Mirc Electronics Limited

Brand name:
Onida

Phone:
91-22-26871273

Fax:
91-22-26871290

Web:
www.onida.com

COMPANY HEAD OFFICE / QUARTERS:

Onida House G-1 MIDC, Mahakali Caves Rd Andheri (E), Mumbai, Maharashtra-400093

LOCATIONS OF FACTORY
1) 2)

Village kudus, bhiwandi wada, taluka wada, dist. Thane Khasra No. 158, vill- Raipur, pargana bhagwanpur, roorkee, dist.haridwar, Uttaranchal. Khasra No. 399 to 405 to 410, 158 kms milestone, delhi roorkee highway NH 58 village mundiyaki pargana manglorur, Tehsil roorkee, dist. Hariwar - 247670

3)

Country:
India

MANAGEMENT TEAM BOARD OF DIRECTOR:

1) MR. GULU L. MIRCHANDANI, CHAIRMAN AND MANAGING DIRECTOR

2) MR. VIJAY J. MANSUKHANI, MANAGING DIRECTOR 3) MR. MANOJ MAHESHWARI, DIRECTOR 4) MR. VIMAL BHANDARI, DIRECTOR 5) MR. RAJAN KAPUR, DIRECTOR

COMPANY SECRETARY AND HEAD-CORPORATE AFFAIRS:

MR.ANOOP PILLAI

PRODUCTS OF THE COMPANY:

Washing Machines: In 2003-04 we launched the washing machine with Hydrofall technology which addressed the need of having a more powerful cleaning system. Then we realised that people still used their hands for cleaning so we launched the Triomatic technology which gives the perfect hand wash. Then

we realised that people still keep bending to wash clothes so we launched a washing machine with a higher and wider vent so you dont have to bend. Air conditioners: Instant Cooling, No Waiting. The New ONIDA 2010 Range of Air Conditioners is designed to provide Instant Cooling in peak summer when it is needed the most. Onida ACs have high energy efficiency and heavy duty cooling due to its advanced design of large multi bend cooling coils, highly efficient compressors and high air throw. Only ONIDA ACs have unique and advanced features like i-cool, Actual Savings Meter, One Touch AC & Fan Auto control, Large Display & Biosleep with 3 stage control. We also have launched first of its kind Pre-Cool Air Conditioners wherein you can switch on your AC even if you are not at home. You just have to send an SMS and the AC is on. DVDs: With a multimedia player: Today's day & age requires you to capture video on their camcoders, digital camera and mobiles. The Onida Atom, a touch screen high definition multimedia player with Card Reader & USB port. It directly plays movies, music and pictures through your camcorder, camera, USB & mobiles. We also have launched the Karaoke DVD player where you can sing along with the recorded music. Whats more we have also launched the Blu Ray DVD Player which enables you play Blu Ray Media and can store up to 50 GB High Definition Video & Audio. Microwave Ovens: Be a multi cuisine chef at the touch of a button: Onida Black Beauty microwave comes with Indian Auto cook menu which makes cooking so simple even your husband can become a multi cusine chef at the touch of a button.

LCDs: Our understanding of the needs of the Indian Consumers and contemporary market dynamics guide us to introduce pioneering products as an ongoing process. In keeping with this trail blazing spirit, we have launched a range of LCD TVs, each unique by itself. There is a first-of-its-kind LCD TV with 1000 watts of pulsating sound to rock your living room and appeal especially to the younger generation. For those who wish to upgrade to an LCD TV, we have another first - A 24 LCD TV with Full High definition at a suprisingly affordable price. Whats more! We even have LCD TVs in vibrant colours to match your decor. Mobiles: With the cellphone market already heavily penetrated, there was a need for a mobile that could stand apart. So what we sought to do was make every single Onida Mobile do so much more than what an ordinary cellphone does. So the moment you turn it on, you would realise that its fully-loaded. So many features. So many things. And so easy. But all these features are there in it for a reason. All of them to help you do better, enjoy better, listen better, work better or simply talk better.

LEDs: We have launched a range of LED TVs offering unique propositions. We have also ensured that our range of LED TVs cuts across all the size segments, from 22 to 40 to meet the requirements of wide range of consumers. All our LED TVs are designed with Full HD capability. We have also designed the LED TVs with the unique eye Care Technology so that your TV viewing is pleasurable.

OPERATIONAL PERFORMANCE:
During the year under review the turnover of the company increased from rs1598 crores to rs2000 crores registering an increase of 28% over the previous financial year. The profit before tax increased from rs23crores to rs5 crores registering an increase of 52% and the profit after tax increased from rs18crores to rs27 crores registering an increase of 49%. The directors were confident of maintain the growth in the ensuring year as well.

This was possible an account of the impressive growth in LCD\LED, AC and Mobiles. The turnover in the LCD\LED segment grew by 120% as compared to the previous year. In the AC segment the turnover grew by 42.45% and mobiles segment witnessed a growth of 140% as compared to the previous year. Overall the year under review has been quiet satisfactory in view of the various steps taken by management.

Product- wise performance:

During the year under review, the company witnessed a moderate growth in sales of colour TV of about 6%. However the LCD\LED segment grew by about 120% as compared to the previous financial year. There was a 45% growth in sale of Onida AC during the year under review. The Sale of mobile witnessed a growth of over 139%. The sale of washing machines registered a growth of 11%. Overall the product wise performance has been quite encouraging and outperformed market growth in the category of AC and LCD during the year under review.

QUANTITATIVE MANUFACTURED:
Sr. no 1 2 3 4 Particulars Televisions Washing machines AC TV Comp.,spares and others Installed capacity (NOS) 3900000 520000 500000 N.A.

INFORMATION
Opening stock Qty Value (NOS) 63073 9469 634 N.A 3879.5 434.44 72.28 Nill Production Qty (NOS) 1240084 118068 2292 N.A

ON
SALES Qty Value (NOS)

GOODS
CLOSING STOCK Qty Value (NOS) 84417 13089 395 N.A 5907.6 605.94 46.6 48.29

1218740 114448 2531 N.A

70998 4722 246.3 13334

Electronic Tuners TOTAL A

3720000

53915

29.02 4415.2

460273

484600

297.3 89598

29588

21.41 6629.8

QUANTITATIVE INFORMATION ON GOODS TRADED:

Sr.n o 1 2 3 4 5 6 7 Particulars Television Washing machines AC DVD Microwave oven Mobiles Services/Other s Total B Total A+B Opening stock Qty(nos ) Value 934.2 18829 9 432.7 8885 4 17698 24351 9947 53187 N.A. 2006 294.8 338.9 5 666.6 1 321.4 9 499.8 9 9410. 1 Purchase Qty(nos) 407207 130764 307700 526864 110954 1684464 N.A. Value 16735.1 8 5082.47 35865.7 6 6316.09 3215.15 20765.3 2 4460.28 92440.2 5 92440.2 5 Sales Qty(nos ) Value 406770 127400 268101 508514 103508 1527543 N.A 19376.22 6724.77 41656.7 9496.63 4653.79 24980.48 3549.68 110438.2 7 200036.0 7 Closing Stock Qty(nos ) Value 19266 12249 57297 43061 17393 210111 N.A. 932.27 600.83 6881.25 569.89 548.7 2530.05 599.22 12662.2 1 19292

FINANCIAL HIGHLIGHTS
Rs in Crores

PARTICULARS

2011 Rs

2010 Rs
1568.35 1501.98 18.37

Sales Net Sales PAT

2000.36 1912.57 27.29

EPS Equity Share Capital NB+CWIP

1.93 14.19 207.32

1.25 14.19 215.07

SHARES DETAIL: STOCK EXCHANGE BOBMAY STOCK EXCHANGE Ltd MONTH SHARE PRICE HIGH Rs
Apr2010 Oct2010 Mar2010 19.3 30.35 22.55

NATIONAL SHARE PRICE HIG H Rs

19.30 30.45 22.10

STOCK NIFT Y CLOS E

5278 6017.70 5833.75

EXCHANGE Ltd

SENSE X CLOS E
17558.17 20032.34 19445.22

LOW Rs
16.65 25.15 18.20

LOW Rs
16.4 25.10 18.05

SHARE TRANSFER SYSTEM:

The registrar and share transfer agent register the share transfers in physical form within 15 days from the receipt of the complete documents. Invalid share transfers are returned within 15 days of receipt. All requests for dematerialization of shares are proceed and confirmation is given to respective depositor that is national security depository limited and sender depository service limited. The company also offers transfer come demat facility.

MARKETING INFORMATION:

Brand: Onida Company: Mirc Electronics Agency: Rediffusion The brand had a wonderful time and was in the top three brands in market share behind BPL and Videocon. Then the Koreans came and rest is (Became)

history. Onida had a fair chance to succeed when the Koreans came to the Indian market. Onida was perceived to be a vibrant brand with technological superiority. Then Mirc electronics decided the switch the agency to O&M. The creative hotshots there convinced Mirc that Devil is outdated. Hence the company changed from the famous "neighbours envy, owners pride" to something that I dont remember. The brand image will be revamped across all appliances such as air conditioners, microwave ovens and washing machines for consumers who associated Onida with only TV. The media mix used will involve television extensively, along with print and outdoor media. Onida spent Rs 45-50 crore on advertising last year and pegs its ad spends at Rs 80 crore for the current year. Mindshare will handle the media duties for Onida.

HUMAN RESOURCES ASPECTS:

Whether individually or collectively as an organization dream about the future. Some succeed in fulfilling their dreams, while most keep trying. What characterizes the achievers is a set of concrete targets/ milestones, backed by a strong will power and commitment. The following pages speak about our dream at Onida, along with a blueprint for achieving it. It is our strong belief that all ONIDIANS will collectively perform to realize this dream and catapult the organization to the elite league of companies which grace the hall of fame of the corporate world.

Why Mirc Electronics Ltd?

We believe that returns on investment on intellectual capital will only multiply over time. So we nourish a knowledge & people centric organization to strengthen profits. Also we endow with A highly conducive and enabling work atmosphere. A well-designed safe campus Training is also used as an important skill-enhancer for career development of the staff members Stress upon lateral thinking across all levels.

RESEARCH AND DEVELOPMENT:

Mirc recognizes that a vigorously intelligent research initiative enables not only the cost reduction through effective process improvement but also value-addition through sustained innovative and customized products in line with customer requirement. They are proud to have a team of dedicated engineers at the onida research and development centers in mumbai, delhi, and shenzhen (china), who facilitate in making state-of-the-art technology products, satisfying customer expectation. This team conducts research in the areas of: embedded software industrial design

 mechanical engineering electrical engineering At the research and development center, new, innovative and quality products in the field of customer electronics are developed to provide better value for money. Products are developed through customer research, customercentric innovation using customer connect program. Products are developed with research in all areas of customer concern like quality, safety, reliability, performance, aesthetics and ease of operations by implementing the latest technologies. Implementation of new and innovative technological ideas in the product developed has a young, vibrant and innovative brand image in the customer market. To enhance the same, new technologies in various product categories like entertainment, connectivity, home appliances etc., for consumer are introduced, for enhancement in consumer experience and to give value for money.

ENVIRONMENTAL IMPACT: Quality Assurance:

Thinking of your smiles. Thinking of quality, Quality for us isnt just a norm; its a way of life. We realised that we have to accept and increase our levels of quality at every single stage even before the product is designed, even after the product is sold; only then do we believe that its been worthwhile. So we treat quality as relentless pursuit for perfection, by being a stickler towards non-conformism and raising the bar. Finally only after theres a smile of satisfaction that appears on your face, theres one on ours as well. To give attention to you, we give attention to every detail. Before we start work on our quality, we look at what is it that others are lacking. We then disassemble the unit and work backwards, trying to figure out how we can make it better. Because we believe that the quality of any product is a result

of good product design, good raw material and components and world-class production process. Any new product designed by Onida R&D goes through a set of stringent quality test. But its not just products but also their performance and at the same time adhering to tests and checks globally as well as locally. To name a few, we do the following tests: Dry Heat Test at 55oC. Cold Test at -10oC. Humidity Test at 95% Relative Humidity. 1000 hours at 40oC. Bump, vibration and drop tests. Voltage tests. We even ensure high standards of quality on all critical components like tuners, PCBs and loudspeakers are produced in house or procured from group companies. All vendors have to ensure that above the industry norms, they also meet the Onida Standard. No products get despatched without the QA clearance. Quality. All the way. Our quality standards dont just end when the products leave the shop floor but continue even after the product is sold. All customer complaints are handled by a team of service personnel stationed all over India. In fact, there is a weekly interaction between Service, Marketing, R&D, Engineering and Quality to address all Field related quality issues. And whats more, we have one of the lowest Field Failure Rate in the Consumer Electronics and Appliance segment in India.

OTHER DETAILS OF THE COMPANY:

OPPORTUNITIES AND THREATS:
India is one of the largest agrarian economies in the world. An interesting but not-so-well known fact highlighting the rural importance to a large number of marketers in the fact that the rural people in India account for 11 % of the worlds population. As such, rural agriculture represents the principal occupations of around 70 % of the countrys population. A robust agrarian economy over the last decade strengthened the rural off take of consumer durables. Going forward, the industry growth is expected to accelerate with a product shelf life estimated around 8 year leading to replacement and up gradation in addition to ongoing organic growth. Keeping in view the above scenario the opportunities and threats concerning the consumer durable industry will be as follows:

Opportunities:
A)

The overall increase in disposable incomes, more number of households above the threshold income, declining prices and shortened replacement cycle all these factors are expected to sustain the growth momentum from 7.5% during 2010-11 to reach beyond 10% by 2015.

B)

Rural India, which accounts for nearly 70% of the total number of households, offers plenty of scope and opportunities for the industry. The urban consumer durables market for products is growing annually by about 12% where as the rural market is zooming ahead at above 30% annually.

C) Increasing consumer awareness and preference for new models have added to the demand. Products like air conditioners are no longer perceived as luxury products but are treated as necessities in the changed socio-economic environment changed life styles. D) Attractive financing schemes will drive demand.

STRATEGY FOR THE FUTURE:

Create uncontested market space. May competition irrelevant by redefining the landscape and changing the rules of the game. Create and capture the new demand. Break the value cost-trade-off and delight consumer. Align the whole system of a firms activities in pursuit of cost and differentiation.

Vision and Mission

The core of the thought.

Our Vision
To build a brand around substance. To communicate simple truths that customers understand. To become a leader in our chosen field and become a globally recognized, prestigious company through synergistic businesses investment, differentiation through innovation, passion through empowerment, cost through economies of scale and world class systems and procedures that bring in a sense of delight to our stakeholders.

Our Mission
To benefit society at large through Innovation, Quality, Productivity, Human Development and Growth, and to generate sustained surpluses, always striving for excellence, within the framework of law and in nothing but the truth in which we base our every action.

Milestone:
1981 : MIRC Electronics Pvt. Ltd. was established 1982 : CTV production started at Nand Bhavan, Mumbai 1983 : Technical collaboration with JVC, Japan for CTV 1985 : Established in-house R&D wing 1986 : Production expanded and moved to a new factory at Kalina 1987 : Moved to our own factory building "ONIDA HOUSE" : Iwai, Speaker plant commences its operation 1992 : Crossed 1 million CTV sales 2001 : AV Max award for best CTV : Launched Onida Black, flat CTV range : Multimedia projectors launched : Commenced project to expand CTV capacity to 1 million 2004- 05 : Achieved 1.20 million CTV sales 2010 : Launched LED TVs with I-Care Technology : Foray into LED Lighting category : Commenced the Consumer Connect Initiative : Launched IGO LED Torch and Lamps, a product category created to tap the local market : Launched 6 Ultraslim models in IGO product range : Achieved during November, growth of 20% in value as compared to the last year. (IGO) : Launched World first ONIDA Speedcool range of AC with Savings meter in INR, 5 Speed Cooling : Launched I-Cool Range of ACs with large user freindly display & one touch auto control for AC and ceiling fan.

: Opened over 350 ONIDA Cool Point retail stores selling full range of Onida Air Conditioners : Onida Psychometric Test Lab upto 4 Tr capacity inagurated at Wada Factory : Onida launches Commercial AC with Variable Refridgement flow and duct type AC range : Onida designed its first Commercial AC - Duct Type 8.75 Tr with 410 A refridgerant (CFC Free) : Onida ACs become 4th largest selling brand in India with Market Share of over 12% in split ACs 2011 : Onida launched Pre cool range of Air Conditioners that come with a pre cool device which automatically switches on as well as switches off the air conditioner on receipt of a CODE (AC*ON / AC*OFF) via an SMS sent by the consumer from his mobile phone. It not only allows the consumers to operate the Air Conditioner while on the move but also cools the room even before they reach home..