Thanks for the response. No doubt, there are few grey patches regards to corporate governance. Few of them which I discovered are as below
• As per 2009 agreement with BIC, it had right to scale its stake in a staggered manner to 90%. But in 2010, Cello’s promoter argued against it and BIC went to international litigation and won the case
• Another agreement with BIC was of non-compete but BIC claims that Rathod’s are strongly linked with newly started UNIMAX brand who’s promoter are brother in law of Pradeep Rathod. Also, its top level management are ex-employees of Cello
• In 2016 symphony took cello to court on using its two air cooler models which were copy of symphony’s model and court ruled in favour of symphony.
• 2019: La Opala files & wins trademark infringement lawsuit against Cello Plast pertaining to opal glass tablewear
Whereas the co. have been paying dividends from past 2 decades and has good cash flows which gives slight comfort pertaining to CG.
Thanks for the input. Can you please tell me when was the last time you checked it?
Also, at its Pardi (Aircooler) plant, do they manufacture only the plastic component of cooler and use the mechanical component manufactured by others or they are integrated manufacturer for air cooler ?