Type

Public NSE: ARCHIES)

(BSE:

532212

Industry

Greeting Cards

Founded

1979

Headquarters

New Delhi, India

Revenue

139.643 crore (US$31.14 million) [1]

Operating income

12.33 crore (US$2.75 million)

Net income

-10.87 crore (US$-0 billion)

Website

www.archiesonline.com

INTRODUCTION

Archies Limited (earlier called Archies Greetings and Gifts Ltd.) Is an Indian company based in New Delhi it was started in 1979 by Anil Moolchandani. Initially it sold song books, posters and leather patches. The company's main product, greeting cards, was introduced in 1980. Cards were introduced for major Indian festivals such as Holi, Diwali and Rakhi, apart from the usual New Year, birthday and anniversary occasions. The company went public in 1995. In 1998, it was listed on the National Stock Exchange of India and Bombay Stock Exchange. Archies Limited is in the business of manufacturing and selling greeting cards and other social expression products such as gifts and posters. Archies has a market share of about 50% of India's greeting cards market.[4] Archies has about 2000 outlets and franchisees, called Archies Galleries, spread across 120 cities. And 6 countries. It has tie-ups and licensing arrangements for merchandising characters such as Dennis the Menace and Disney characters. It has arrangements with Paramount Cards Inc., Anne Geddes, and American Greetings, for greeting card design and name use. Following the increasing popularity of e-cards, Archies started its online portal archiesonline.com in 2000. The company expanded its product range to include artificial jewellery, crystal ware, chocolates and perfumes, and accordingly changed its name to Archies Limited in 2002.

Evolutionary Phases 1990 Archies Greetings & Gifts Pvt. Ltd. was incorporated on 22nd May, and took over the partnership firm. The Company was converted into a Public Limited Company. Subsequently a fresh certificate of incorporation was issued on 7th April, 1995. The company is currently engaged in the manufacture and trading of wide range of cards, stationery and gift items. The company manufactures about three lakh cards a day. The company entered into a technical collaboration with American Greetings Corp., USA for designs. The items were sold under the brand name of Paper Rose.

Archies also entered into a technical collaboration agreement with Gibson Greetings Inc., USA for production and marketing of their designs under the brand name Fine Expressions.

Archies has a licence from Help age India, and institution that cares for the less privileged and elderly people and the company create an exclusive range of greeting cards in the name of Help age India.

1996

The Company designed one or more concept for sending greeting cards called Forgiveness Day. The installation of some new state-of-the-art machines, increase in the number of galleries and general growth in greeting card industry enabled the company to increase its turnover and consequently its profitability.

The company diversified into music industry and launched two cassettes `Listen to my heart' an instrumental cassette in February

1997

On the occasion of Valentine's day and Volume of Love, the collection of Hindi pop songs in May 1997. The Company undertook to release one more album Ae Mere Vatan to commemorate the 50th year of Independence Day.

21, 04,000 No. of equity shares of Rs 10 each issued, subscribed and paid-up. 11, 46,000 No. of equity shares were issued at a prem. Of Rs 60 per share in May, of which 90,000 shares were issued and allotted to promoters, directors on a firm allotment basis.

Of the remaining 56,000 shares were reserved for allotment on a preferential basis to employees of the company (only 8,600 shares taken up). Balance 10, 00,000 shares along with 47,400 shares and taken up by employees issued to the public. Additional 3,700 shares allotted to round off.

The Company made a foray into a new venture-Music and a separate division. The division released 10 high quality recordings which were well received in the market. The Company automated its

production process with the latest machines. Twenty nine outlets were established during the year.

1998

76 franchisees were added and as at 31st March, 1999 there were 386 Franchisees.

The Company appointed distributors in USA, UK and Canada. Besides the company has 14 franchisees outside India.

The company undertook to develop inhouse scanning facilities and install automatic envelope making machinery, insert-pasting machinery, automatic greeting card folding machine, fully computerised paper cutting machine, card packing machine and five colour offset printing machine.

The Company came out with a novel concept of Vision 2000 stores which would be committed to Archies with 85% of shelf space. Moreover the stores being bigger, would provide perfect ambience for shopping with new consumer friendly furniture and fixtures of international quality.

Also, a very innovative system of recorder ticketing was introduced for effective inventory control. Two such stores, one at Nagpur and the other at Delhi were opened.

The Company recently introduced cards in Indian language such as Marathi cards for Sankranthi, Gurumukhi cards for Baisakhi and for Khalsa Tricentenary celebrations.

The Company also introduced advertising campaign showing people a million ways to celebrate in the millennium and to make their occasions extra-special with cards and gifts from the company.

To further strengthen the position in its core business, the company entered into a tie-up, with Portal Publication USA for their exquisite range of cards, posters & streamers including the best selling cards of Anne Geddes, the world renowned photographer.

New Delhi-based Archies Greetings & Gifts Ltd (AG&G), has tied up with Kingsley of UK to launch the `Kingsley' brand of greeting cards in India.

Archies Greetings is a leader in the greeting cards segment. Besides, it manufactures stationery and other gifts.

Archies went public in 1996 with an issue of 10.56 lakh equity shares at a premium of Rs 60 per share totalling Rs 7.40 crore. Of the company's Rs 3.25 crore post-issue equity, 67.51 per cent shares are held by the Moolchandanis, 7 to 9 per cent by domestic funds and the balance is with the public.

1999 Archies Greetings and Gifts announced a 1:1 bonus for its shareholders on an equity base of Rs 3.25 crore.

Recently, Archies has introduced its millennium 2000 and vernacular cards in Marathi, Sankranti and Gurumukhi.

Archies Greetings & Gifts Ltd (AGGL), a Delhi-based company engaged in the greeting cards and gifts business, has recently test launched its range of perfumes and deodorants for men and women and also room fresheners as brand extensions in the gifts business.

The New-Delhi-based Archies Greetings & Gifts (AG&G) is set to commence valuing the `Archies' brand.

2000

The Company has launched a new range of greeting cards which are in Hindi. It has introduced a total of 45 designs.

On the occasion of Ram Navami, Archies Music, a division of Archies Greetings and Gifts Ltd. has introduced Ram-Ramaiya, a soulful rendition of Ram Bhajans.

Archies has introduced an attractive range of cards to celebrate Easter. Archies Greeting and Gifts has launched a wide range of special cards, gifts and posters on the occasion of Father's Day on 18th June.

The Company has launched Sports Deodorant, in two variants, Boyz Sports and Gals Sports.

The Company has launched e-cards for the forthcoming festivals of Navroz and Ganesh Chaturthi. Archies Greetings and Gifts Ltd. in a tie-up with Tera Jadoo Chal Gaya, has introduced a range of merchandise featuring the film's stars, Abhishek Bachchan and Kirti Reddy.

Archies Greetings & Gifts is all set to launch its new product Third party gift through archiesonline.com from September 16.

The Company has launched a new range of cards on the occasion of Bijoy or Durga Puja and Vijaya Dasmi in the South.

Archies Parfum, a division of Archies Greetings & Gifts Ltd., has introduced a three-in-one gift pack for Diwali.

ARCHIESONLINE.COM a 100 per subsidiary of Archies Greetings & Gifts Ltd (AG&G Ltd) has launched a unique gift package for the cyber crazy friends.

Archies Parfun, a division of Archies Greetings and Gifts Ltd. Has introduced a `Twin Christmas Surprise' pack.

Archies Music, the music division of Archies Greetings & Gifts Ltd, has launched two albums of Christmas Carols. The Joy of X'Mas and The Magic of Christmas.

2001 Archies Greetings and Gifts Ltd. has introduced a range of cards, gifts and e-cards on archiesonline.com for Valentine's Day. Archies Greetings and Gifts Lts. has introduced a range of cards on the occasion of Women's Day, It has introduced eight card designs and 10 e-cards.

The Company has introduced a range of cards and e-cards to celebrate Easter on April 15.

2002 Archies Greetings & Gifts Ltd has informed BSE that the Company has tied-up with the following parties for the sale of their products through its franchise network. Cadbury India Ltd for sale of their chocolates and other products.Taneja Mines Pvt. Ltd for the sale of their Divinity range of products.

2003

The company has unveiled a new range of HelpAge cards, calendars and other stationery.

Shareholders have approved to delist equity shares from Pune, Madras, Calcutta, Delhi, Ahmadabad and Jaipur Stock Exchanges.

2004 Archies Limited has informed that the equity shares of the Company have been voluntary delisted from the Jaipur Stock Exchange Ltd. w.e.f. November 29, 2003 and The Stock Exchange, Ahmadabad w.e.f. January 15, 2004. Archies Limited has informed that the Equity shares of the Company have been voluntary delisted from the following stock exchanges : 1) Madras Stock Exchange Ltd. wef January 19, 2004; 2) The Delhi Stock Exchange Association Ltd. wef January 23, 2004; 3) Pune Stock Exchange Ltd .wef January 23, 2004.

2006

Archies open its biggest Gallery in Pacific Taj, Agra

Management

Name
Ajit Ganpatlal Shah Anil Moolchandani Anil Moolchandani Arun Singhal Dilip Seth Jagdish Moolchandani Pramod Arora Sunil Behl Vijayant Chhabra Vikas Kumar Tak Vikas Kumar Tak

Designation
Director CEO Chairman and Managing director Director General Manager (Finance) Executive Director Joint Managing Director Director Executive Director Co. Secretary & Compl. Officer Secretary

CHAPTER --------2

Financials of the Archies

Balance sheet
Mar ' 11 Sources of funds Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 6.76 90.70 6.76 80.14 6.76 72.92 6.76 1.60 73.51 6.51 61.70

Loan funds

Secured loans Unsecured loans Total

18.40 115.85

14.96 101.85

17.18 96.86

19.44 101.30

13.18 81.38

Uses of funds

Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 84.14 23.82 60.32 0.69 73.11 20.15 52.96 1.62 52.64 17.09 35.56 12.87 0.54 47.64 14.22 33.41 10.93 7.45 41.88 11.82 30.07 5.09 2.40

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 90.19 35.36 54.84 115.85 88.05 40.78 47.28 101.85 80.60 32.71 47.90 96.86 82.07 32.55 49.51 101.30 77.73 33.90 43.82 81.38

Notes:

Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

2.25 337.80

4.25 67.56

0.54 5.33 67.56

7.45 6.92 67.56

2.40 9.94 65.06

Profit loss account

Mar ' 11 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend 71.99 7.27 23.64 63.23 166.12 21.68 1.53 23.21 2.66 4.53 16.01 5.19 10.83 10.83 10.83 1.35 65.19 3.82 17.07 17.34 33.94 137.35 18.86 0.54 19.39 2.02 3.26 14.11 4.57 9.54 -0.74 8.80 8.80 1.35 59.95 3.64 16.73 16.17 29.25 125.74 12.99 0.50 13.49 2.19 3.02 8.28 2.95 5.33 -6.42 -1.09 -1.09 43.02 7.09 15.37 13.48 22.85 101.82 16.09 0.56 16.65 1.71 2.73 12.22 4.52 7.70 0.50 8.20 8.20 39.27 4.35 12.33 14.44 19.70 90.09 14.62 0.82 15.43 1.20 2.41 11.82 4.05 7.76 0.06 7.82 7.82 187.80 156.21 138.74 117.91 104.70 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Mar ' 11 Preference dividend Dividend tax Retained earnings 0.22 9.26 -

Mar ' 10 -

Mar ' 09 -

Mar ' 08 -

Mar ' 07

0.23 7.22

-1.09

8.20

7.82

Ratios

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Per share ratios

Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) 3.21 4.55 3.21 4.55 0.40 6.42 14.12 18.95 13.03 17.86 2.00 27.91 7.89 12.36 -1.61 2.86 19.23 11.40 15.44 12.14 16.18 23.82 11.93 15.65 12.03 15.74 22.47

Book value (excl rev res) per share (Rs) 28.85 Book value (incl rev res) per share (Rs.) 28.85 Net operating income per share (Rs) Free reserves per share (Rs) 55.59 -

128.62 117.93 118.81 104.83 128.62 117.93 118.81 104.83 231.21 205.35 174.52 160.93 116.26 105.57 108.81 94.83

Profitability ratios
Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 11.54 9.12 5.71 8.11 11.11 11.11 16.11 12.07 9.98 5.61 8.16 10.97 10.12 16.37 9.36 7.18 -0.78 5.99 6.69 -1.36 10.86 13.64 11.33 6.92 8.80 9.59 10.21 14.98 13.95 11.65 7.41 9.64 11.38 11.47 17.03

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Leverage ratios
Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio 0.18 0.18 84.11 2.23 0.13 0.17 85.31 2.14 0.20 0.21 82.26 2.64 0.15 0.24 80.50 2.48 0.12 0.19 83.80 2.50

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio 2.55 2.55 0.95 3.34 2.16 1.85 1.01 3.37 2.46 2.39 1.11 3.15 2.52 1.78 1.05 2.48 2.29 1.77 1.03 2.46

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 14.50 10.22 85.50 89.78 17.95 13.10 83.43 87.66 -

100.00 100.00

100.00 100.00 100.00

Coverage ratios
Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) 1.20 8.73 6.78 1.17 9.62 6.99 2.06 6.17 1.88 1.86 9.75 7.40 1.29 12.86 9.53

Component ratios
Material cost component (% earnings) 42.18 Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed Long term assets / total Assets 3.33 15.00 0.40 43.63 11.09 2.24 13.58 0.38 61.06 40.58 11.65 2.95 12.30 0.37 61.06 42.11 11.43 2.01 18.84 0.38 61.06 38.71 13.79 4.98 22.68 0.32 63.40

Bonus component in equity capital (%) 61.06

CHAPTER--------3

COMPTITERS

Antarctica Ltd. Beckons Industries Ltd. Blue Bird (India) Ltd. Classic Press (International) Ltd. Computerskill Ltd. DB Corp Ltd. DIC India Ltd. Digital Multiforms Ltd. DSJ Communications Ltd. Giriraj Entertainment Ltd. Graphic Charts Ltd. Hindustan Media Ventures Ltd. HT Media Ltd. Infomedia 18 Ltd. Inland Printers Ltd. Jagran Prakashan Ltd. Karma Industries Ltd. Kiran Print Pack Ltd. Laser Dot Ltd. MPS Ltd. Multicolour Offset Ltd. Navneet Publication (India) Ltd. Nayagara Paper Products Ltd. Next Mediaworks Ltd. Orient Press Ltd.

ANTLTD BECKIN BLUBIR CLAPRE COMPLT DBCORL DICIND DIGMUL DSJCOM GIRENT GRACHA SEAPUB HTMEDL INFOIN INLPRI JAGPRA SCACOL KIRPRI LASDOT MACMIN MULOFF NAVPUB NAYPAP MIDMUL ORIPRE

Repro India Ltd. Sambhaav Media Ltd. Sandesh Ltd. Sellaids Publications (India) Ltd. Shakti Press Ltd. Sharp Scan & Prints Ltd. Sundaram Multi Pap Ltd. TCPL Packaging Ltd. Today's Writing Products Ltd. Vintage Cards & Creations Ltd.

REPIND SAMMED SANLTD SELPUB SHAPRE SHASCA SUNMUL TWEFIC TODWRI VINCAR

CHAPTER----------------4

Competitive Advantage
Archies has cards and gifts for every occasion. as like o Unicef-Celebration Cards Seasons Cards (AS) o Diwali Cards (AS) Cards with Song o Unicef-Wall Calendars Special Cards o Nature Cards Desktop Collection o All Seasons Stationery UNICEF - Desktop Collections o New Year Cards Desktop Items o CRY Diwali Cards UNICEF - Diwali Cards o Seasons Cards Archies has products for every customers segment whether it segment is based on geographics,demographics ,psychographics and behavioural. Archies is in artificial ornament, glasses, hand bags does, perfume etc.

Archies has stationary products for students and offices use. Archies has given on line facility to customers.

Archies has good brand identity in competitive era. Archies has effective supply chain management.

Pulp and Paper The pulp and paper industry uses large amounts of thermal energy (in the form of steam) and mechanical energy (converted from electricity). The thermal energy accounts for about 70-80 per cent of the total primary energy use in the industry, and is mainly used in pulping and drying processes. The process steam can be generated from waste raw material, concentrated black liquor from the industry, and coal, oil and gas. Some 40 per cent of the electricity used in an integrated mill is required for paper manufacture. Selected energy saving options are: 1. Recycling. An increase in the percentage of waste-paper pulp by 10 per cent can save about 6.5 per cent of energy required for the pulping process. 2. Recovery of chemicals. The amount of chemicals recovered in the pulping process has a great effect on the overall specific energy consumption of the industry. The recovery of chemical products by advanced membrane Technologies for Reducing Stationary Energy Use CSES Climate Change Working Paper No. 6 12 processes, particularly using mineral membranes and ultrafiltration, can result in higher recovery rates and less pollution. 3. Cogeneration. Biomass is a major energy resource for the industry. Black liquor and solid biomass residues (bark and log fuel) generated at the mill can be used for cogeneration. The industry also has access to residues from pulpwood harvesting, some of which can be removed from the forest on a sustainable basis. All black liquor and most mill residues are used at mill sites to fuel cogeneration systems, providing steam and electricity for onsite uses.

Some emissions-savings options in the pulping stage are: alcohol-based solvent pumping; and black liquor gasifier and gas turbine generation technology. Energy efficiency technologies in the paper-making stage are: dry-sheet forming, press drying, condensed belt drying, impulse drying, air impingement drying, steam impingement drying, and airless drying