Deepak Nitrite Limited · NSE:DEEPAKNTR
Deepak Nitrite — Investor Presentation (February 2017)
28 slides from Deepak Nitrite's investor presentation, February 2017
Slide 1: Intimation of Meetings with Analysts/Institutional Investors
DEEPAK NITRITE LIMITED DNL/138/BSE/897 /2017 February 20,2017 To, BSE Ltd Department of Corporate Services, Phiroze Jeej eebhoy Towers, Datal Steet, Fort, Mumbai-400 001 Dear Sir, Sub: lntimation of Meetings with Anatysts/ Institutionat Investors Re.: Scrip Code: 506401 As required under the provisi
Slide 2: Corporate Presentation
Deepak Nitrite Limited CORPORATE PRESENTATION www.deepaknitrite.com February, 2017
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by Deepak Nitrite Limited (the “Company”) based upon information available in the public domain solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. This prese
Slide 4: Contents
Contents About Deepak Nitrite Limited 5 Value Proposition 13 Financials 20 Phenol Project 23 3 www.deepaknitrite.com
Slide 5: Deepak Nitrite at a glance
Deepak Nitrite at a glance A producer A market leader Among top global of organic, inorganic and fine for Inorganic intermediates and Nitro players chemicals with specialization in Toluenes in India Hydrogenation, Nitration, customized for products like Xylidines, Color products as per client specif
Slide 6: About Deepak Nitrite Limited
About Deepak Nitrite Limited
Slide 7: Company Overview
Company Overview Shareholding Pattern – Dec 31, 2016 § Established in 1970s by Mr. Chimanlal K. Mehta (Founder & Chairman Emirates), Deepak Nitrite Limited (“DNL”) is an Indian chemical manufacturing company § Product Portfolio: Basic Chemicals (BC)| Fine & Specialty Chemicals (FSC) | Performance
Slide 8: Milestones
Milestones 2011-Present ¢2016 –2016 – Raised INR 83.3 cr via QIP to fund the phenol project ¢2015 – Promoted Deepak Phenolics Ltd for manufacturing of Phenol & Acetone Corporate Events ¢2015 – Received Supplier Excellence Award from Bayer CropScience ¢2014 - Dahej facility for OBA fully commissi
Slide 9: Business Segments
Business Segments § High volume segment consisting of Basic Chemicals that are made to standard specifications thus is characterized by moderate margins 9M FY17 Rev § Manufacturing of both organic & inorganic chemicals 54% § This SBU can be further classified under Organic Chemicals such as Nitro
Slide 10: Manufacturing Facilities
Manufacturing Facilities 1 NANDESARI, Gujarat § Bulk and commodity product manufacturing with on site Nitration & Specialty Agrochemicals 2 DAHEJ, Gujarat § Full spectrum stilbenic Optical Brightening Agents production § Phenol & Acetone Project through wholly owned subsidiarity DPL 3 TALOJA, Mah
Slide 11: Technical Capabilities
Technical Capabilities Expertise in multiple chemical processes Nitration Oxidation Alkylation Diazotisation Nox Absorption Hydrogenation / Condensation Reduction Sulphonation 10 www.deepaknitrite.com
Slide 12: Global Reach
Global Reach Exporting products to over 30 countries across 6 continents Sweden Canada UK Belgium Germany Switzerland France US Italy Turkey Korea Japan Spain China Israel Kuwait Jordan Bahrain Taiwan Mexico UAE India Hong Kong Oman Bangladesh Saudi Arabia Vietnam Thailand Philippines Sri Lanka Indo
Slide 13: Business Segments
Business Segments Performance Fine & Specialty Chemicals Basic Chemicals Products Specialty Xylidines Oximes Cumidines Nitro Tolunes Fuel Additives Sodium Nitrite DASDA / FWA Colourants Pigment Agrochemicals Agrochemicals Colourants Refinery Dyes / Pigments Paper Pharma Interm. Specialty Chemicals P
Slide 14: Value Proposition
Value Proposition
Slide 15: Product Profile having varied applications
Product Profile having varied applications 14 www.deepaknitrite.com
Slide 16: Value Proposition
Value Proposition 8 1 Consistent wealth creation for Product profile having Investors varied applications 7 2 Experienced Promoters and Leading market position qualified & experienced in most of its products management team DNL Long term customer Consistent additions in new relationships product lin
Slide 17: Diverse sales mix - Product & geography wise
Diverse sales mix - Product & geography wise Product–wise segmentation (FY16) Export v/s Domestic Sales (FY16) Bulk Chemicals 21% Fine Specialty 38% Domestic Sales 50% Chemicals Exports 62% 29% Performance Products Revenue Segmentation on End Use Industry (FY16) Key Markets (FY16) 1% 2% 2.5% Colour
Slide 18: Marquee Customer Relationships
Marquee Customer Relationships 17 www.deepaknitrite.com
Slide 19: Professional Board of Directors backed by Strong Team
Professional Board of Directors backed by Strong Team Name of Director Designation Mr. Chimanlal K. Mehta Chairman Emirates Chairman & Managing Mr. Deepak C. Mehta Name of Senior Management Personnel Designation Director Mr. Ajay C. Mehta Managing Director Mr.Sanjay Upadhyay Chief Financial Officer
Slide 20: Wealth Creator for Investors
Wealth Creator for Investors DNL Share Price Performance - Adjusted 140 Split to FV INR 2 Bonus Issue 1:1 120 Summary of Returns on 1 DNL Share Adjusted Share Price (INR) 100 Price of 1 Share in Apr, 2005 88 (Face Value – INR 2) Rights Issue 80 Further Inv in Rights Issue (2006) 75 60 Total Investme
Slide 21: Financials
Financials
Slide 22: Standalone Financials
Standalone Financials INR mn Income Statement FY15 FY16 9M FY17 Balance Sheet FY15 FY16 H1 FY17 Revenue from Operations 13,271.6 13,357.3 8,961.2 Share Capital 209.1 232.6 232.6 RM Consumed 8,570.5 7,897.5 5,103.5 Reserves & Surplus 3,259.2 4,526.3 5,359.0 Networth 3,468.3 4,758.9 5,591.6 as a % of
Slide 23: Financial Snapshot – Standalone
Financial Snapshot – Standalone Total Income (INR mn) ROE v/s ROCE 15% 14% CAGR: 13,292 13,373 14% 14% 12,714 13% 12% 10,301 13% 12% 12% 12% 7,927 9% Investment for Phenol Plant resulted in lower Capex for OBA Business returns resulted in lower returns FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY
Slide 24: Phenol Project
Phenol Project
Slide 25: Phenol & Acetone Facility at Dahej - Snapshot
Phenol & Acetone Facility at Dahej - Snapshot Manufacturing Capacity Fund Requirements 200,000 MTPA INR 14,000 mn Total manufacturing capacity for Phenol Total capital outlay for the project 120,000 MTPA Total manufacturing capacity for Acetone INR 8,400 mn Total Debt raised by DPL for the project 2
Slide 26: Market Opportunity
Market Opportunity Phenol Demand Supply in India Phenol Demand - 2014 Estimated Demand for Phenol in 2017-18 250,100 MT 320,000 MT Imports 13% SI Group DNL’s facility Dahej 16% Imports Facility (200,000MT) will start SI Group 80% 63% operations in 2017 -18 13% HOC HOC This plant at Dahej,the 5% 13%
Slide 27: Acetone & Phenol Value Chain in India
Acetone & Phenol Value Chain in India Laminates Foundry/Mould Phenolic resin Automobile lining Paints & Varnishes 0.87 unit Rubber adhesives Phenol Benzene 1.0 unit Others Alkyl phenol Surfactants & Rubber Cumene Cumene Hydro Peroxide Drugs & Dyes Rubber & Sulpha drugs 1.31 unit Agro-chemicals Pesti
Slide 28: Thank You
Deepak Nitrite Limited Corporate Office Aaditya-l, National Highway No. 8, Chhani Road, Vadodara - 390 024 India Tel: +91-265-276 5200 | Fax: +91-265-234 0506
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