ref: stex/sect/2020 dcs-crd bse limited (bse), exchange

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5th Floor, Survey No. 21, Balewadi

Pune 411 045 Maharashtra, India

Phone +91 20 67067000 Fax +91 20 67067015

cumminsindia.com [email protected] CIN : L29112PN1962PLC012276

Ref: STEX/SECT/2020

July 18, 2020

The Relationship Manager, DCS-CRD BSE Limited (BSE), Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001 BSE Scrip Code: 500480

National Stock Exchange of India Limited (NSE), Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra – Kurla Complex, Bandra (East), Mumbai 400 051 NSE Symbol: CUMMINSIND

Subject: Newspaper publication of information regarding 59th Annual General

Meeting of the Members of the Company, Record Date for dividend and other related information.

Dear Sir/ Madam,

In terms of Regulation 47 of the Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the

copies of the notice published in newspapers Business Standard (All editions) and

Loksatta (Pune edition), both the newspapers having electronic edition, on July 18,

2020, in compliance with Ministry of Corporate Affairs Circular No. 20/2020 dated

May 5, 2020, intimating that 59th Annual General Meeting of the Company will be

held on Tuesday, August 25, 2020 at 3.30 p.m. IST through Video Conference / Other

Audio-Visual Means.

Kindly take this intimation on your record.

Thanking you, Yours faithfully, For Cummins India Limited

Vinaya A. Joshi Company Secretary & Compliance Officer Encl.: As above (This letter is digitally signed)

MUMBAI | 18 JULY 2020 COMPANIES 3. <

DEV CHATTERJEE

Mumbai, 17 July

Textile major Arvind’splan to reduce costs by~440 crore has hit a road-

block. Bankers said the firmexpects a sharp fall in demandfor its products, coupled withdeclining sales, in the Junequarter (Q1) of FY21 on accountof the pandemic.

However, both Lalbhai gro-up firms — Arvind and ArvindFashions — are taking steps likeasset sale in order to cut costsand pare debt. “Exports are exp-ected to decline $100 million to$300 million in FY21. Besides,domestic sales will also hit theslow gear, with production tak-ing a hit due to lockdown,” saida banker.

Ahmedabad-based Arvindhad assured banks it wouldslash fixed costs by close to ~440crore in FY21, by way of pay cuts,reduction in IT budget, restric-tion on foreign travel, lower adspend, and sale of loss-making

units. Besides cutting down oncapital expenditure, the firmhas decided to avail of the mora-torium on outstanding loansand working capital limits. “Thefirm is also taking a ~50 crorelifeline loan from SBI,” saidanother person in the know.

An email sent to Arvind onWednesday did not elicit anyresponse. Reflecting its finan-cial performance, the Arvindstock lost almost half its value —from ~60 last year to ~32 on

Wednesday — thus giving it atotal market valuation of ~835crore. Bankers are expecting thefirm to sell more assets in thecoming months, to pare ~400crore from the total debt of~2,500 crore (as of March). Debtstood at ~2,950 crore as of March2019. Arvind plans to developits land parcels near Ahm-edabad and sell villas to cus-tomers. However, with a slow-down expected in the realtysector, demand may remain

subdued, fear bankers.Separately, Arvind Fashions

sold 27 per cent stake in its sub-sidiary Arvind Youth Brands, toFlipkart for ~260 crore. ArvindYouth Brands retails denim bra-nd Flying Machine on the onl-ine retail platform. It is raising~400 crore through a rights iss-ue this week. Following its dem-erger from Arvind, AFL was list-ed in March last year, and wasvalued at ~1,115 crore as of Wed-nesday. Declining footfalls fromearly March owing to the out-break hit AFL’s operations. Thishammered revenue and prof-itability for the March quarter.

Following the unlocking, ithas managed to re-open 75 percent of its stores. “The firm hasput in place a comprehensivecost management plan that cov-ers reduction in costs during thelockdown and until sales nor-malise. Structural reductionshave been implemented in thecost structure, which will serveto reduce the break-even levelby 35 per cent,” the firm said.

Arvind’s cost-cuttingplan hits Covid wall

SUBRATA PANDA

Mumbai, 17 July

Bombay High Court-appoint-ed arbitrator, C K Thakkar, hasasked the Board of Control forCricket in India (BCCI) to pay bySeptember a compensation of~4,800 crore to Deccan Chro-nicle Holdings, the owner ofthe terminated Deccan Char-gers franchise in IPL.

Deccan Chargerswas one of the eightfranchises in the ca-sh-rich cricket leaguewhen it was started in2008. Four years later,BCCI terminated De-ccan Chargers’ agree-ment, saying the fran-chise failed to honourits payment obligations.

Deccan Chronicle Holdings,the Hyderabad-based mediacompany that acquired thefranchise for $107 million in2008, then approached theBombay High Court, seekingan order restraining BCCI fromtaking any further step. The HC

later appointed Thakkar as thearbitrator to settle the dispute.

Deccan Chronicle had fileda claim of ~6,500 crore andtermed the termination ofagreement as illegal. The arbi-trator has now awarded ~4,800crore, including interest, toDeccan Chronicle.

Dhir & Dhir Associates wasrepresenting the firm in the

matter. “The arbitraltribunal has foundthat the terminationwas premature andillegal and accord-ingly passed an aw-ard in favour ofDeccan chronicle,”said Maneesha Dhir,associate partner,Dhir & Dhir Assoc-

iates. Deccan Chronicles Holdi-ngs was under insolvency till2019 for failing to pay its len-ders. However, Kolkata-basedSrei Group’s Srei Multiple AssetInvestment Trust had submit-ted a resolution plan for thecompany, which was acceptedby the bankruptcy tribunal.

BCCI asked to pay~4,800 crore toDeccan Chronicle

SAMREEN AHMAD

Bengaluru, 17 July

Britannia Industries reported astellar growth on Friday post-ing a profit before tax (PBT) of~737 crore for Q1, a rise of 88per cent when compared withthe corresponding period ofthe previous financial year.

Net profit for the biscuitmaker grew 117 per cent to~546 crore on YoY basis.

Consolidated revenue forthe Bengaluru-headquarteredfirm witnessed a strong gro-wth of 26 per cent YoY basis at~3,384 crore, ahead of expec-tations. The company’s vol-ume growth for the periodstood at 22 per cent, higherthan analysts expectations of17-20 per cent.

Such a strong performancepresents a very high base forthe company. “What we haveseen in the past is once youbuild a base, you find ways ofgrowing beyond that. As we goforward, we would stride togrow over that base as we goforward,” said Varun Berry,managing director of Brita-nnia Industries during an

investor call on Friday.The company, which is cur-

rently running with a stock of2-3 days, said its nimble cul-ture helped it quickly adapt tothe Covid-19 situation andmeet the market demand.

“As soon as the lockdownwas eased, we focussed on get-ting our distribution back tothe pre-Covid levels andincreasing our rural and hin-terland reach. During thisperiod, we also launched

Winkin Cow Lassi and a ~5Layer Cake pack to expand ourreach,” he said.

On the cost front, the com-pany witnessed moderateinflation in the prices of keyraw materials and expects therates to be stable going forwardgiven the positive outlook onmonsoon and harvest.

Britannia’s PBT jumps88%, revenue up 26%

SAI ISHWAR

Mumbai, 17 July

German tech giant SAP hasappointed Kulmeet Bawapresident and managingdirector for SAP Indian sub-continent, with effect fromJuly 2020.

Bawa will be responsiblefor driving and delivering SAPexperience for employees andcustomers across our ecosys-tem and businesses in India,Bangladesh and Sri Lanka andto adopt a digital-first mind-set, according to the compa-ny’s statement.

Based in Gurugram, hewill report directly to ScottRussell, president of SAP Asia-Pacific Japan (APJ), it added.He will be replacing Deb DeepSengupta.

“The current pandemicenvironment requires com-panies to take swift action andaccelerate digital transforma-tion to become intelligententerprises. At SAP, we arecommitted to support ourcustomers and help themtransform, scale and win,”said Scott Russell, president,SAP APJ. Bawa was the chiefoperating officer for NewYork-headquartered omni-channel marketing softwarefirm Resulticks, where he ledthe growth strategy and exe-cution of go-to-market for theorganisation.

SAP appointsKulmeet Bawapresident, MD of India region

THE SMART INVESTORBritannia’s sturdy first quarterraises bar for peers 12>

Company sets~700 crore ascapex outlayBritannia has announced anadditional capital expen-diture of ~700 crore in thenext 2-3 years. MD VarunBerry said the firm would beputting up a new plant inBihar, Tamil Nadu and UP,which is emerging thesecond-largest market forBritannia. This would be thefirm’s first plant in the Hin-di-speaking state.

BS REPORTER

KEY METRICSQ1FY21 Growth (~ cr) %*

Net sales 3,384 2266

Operating 669 9911profit

PAT 546 111177*As compared to Q1 of FY20

�Rusk and bread grew faster thancompany’s overall growth

�Cheese led to growth in dairysegment

�West Asia & Africa back on growth trajectorySource: Company

Deccan ChronicleHoldingsapproached theBombay HighCourt, seekingan orderrestraining BCCIfrom taking anyfurther step

Ahmedabad-based Arvind had assured banks it would slashfixed costs by close to ~440 crore in the current financial year

��

��

��

� ��

��

��

��

��

��

��

��

��

� � ��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

� ��

��

� � ��

��

ref: stex/sect/2020 dcs-crd bse limited (bse), exchange

Documents