Kiri Industries Limited · NSE:KIRIINDUS
Kiri Industries — Investor Presentation (December 2021)
45 slides from Kiri Industries's investor presentation, Dec 28, 2021
Slide 1: Kiri Industries Limited
CD Kiri Industries Limited ~{iftol- C'~..... December 28,2021 To, To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Building, Exchange Plaza, Bandra Kurla Complex, B.S. Marg, Fort, Mumbai - 400001 Bandra (E), Mumbai - 400 051 Scrip Code: 532967 Scrip ID - KIRIINDUS Dear Sir
Slide 2: Investor Presentation December 2021
INVESTOR PRESENTATION December 2021
Slide 3: Executive Summary
Executive Summary PRODUCTS Dyes Intermediates Dyes Basic Chemicals H-acid Reactive dyes Sulphuric Acid Vinyl Sulphone Acid Dyes Oleum 65% and 23% Specialty Intermediates Direct Dyes Chloro Sulphonic Acid Naphthalene and Aniline based intermediates Disperse Dyes Thionyl Chloride INDUSTRIES CATERED OV
Slide 4: Company Overview
Kiri Industries Limited Fienre fall of Colors COMPANY OVERVIEW
Slide 5: Company Overview
Company Overview Consolidated Revenue Break-up (INR Mn) 6,625 4,629 6,499 4,879 3,801 2,921 7,378 6,489 7,340 6,607 5,792 3,594 • Established in 1998, Kiri Industries Limited (KIL), is based out of Gujarat and has emerged as one of FY17 FY18 FY19 FY20 FY21 H1-FY22 the largest manufacturers and expor
Slide 6: Management Team
Management Team Pravin Kiri (Chairman) • He is a science graduate from Gujarat University and started his career in the year 1966 by associating himself with Jay Chemical Industry (Kharawala Group) as a partner and was responsible for all the technical matters of the group. • He has a wide interest
Slide 7: Key Milestones
Key Milestones 1998 2004 2006 2008 2010 2013 2015 2018 2020 Incorporation Two-Star Commercial Entered into a Acquisition DyStar Filed minority Achieved Kiri Industries of Kiri Dyes Export House production of JV Agreement of assets became oppression highest PAT became a and Chemicals backward with We
Slide 8: Manufacturing Facilities
Manufacturing Facilities Unit I, Unit II & IV Location: Ahmedabad, India. Capacity Installed: • Reactive Dyes : 36,000 MTPA Products manufactured: • Disperse Dyes: 8,000 MTPA • S. O. Dyes • Disperse Dyes Unit V Location: Vadodara, India. Capacity Installed: • Basic Chemicals : 500 TPD (182,500 MTPA)
Slide 9: Manufacturing Process
Manufacturing Process Caustic Key Inputs Ice Napthalene Sulphur Sodium Nitrate Soda Ash Water Aniline Soda Chlorine Sulphur & Bulk Chloro Para Nitro Sulphuric Oleum 65% Sodium Bi Thionyl Chemicals Beta-Nepthol Sulphonic Acetanilide MPD Aniline Acid Oleum 23% Sulphate Chloride Division Acid Vinyl Sul
Slide 10: Geographical Presence
Geographical Presence AHMEDABAD THE NETHERLANDS VADODARA Canada UK CZECH REPUBLIC BELGIUM SPAIN HUNGARY ITALY UZBEKISTAN KOREA USA PORTUGAL GREECE TURKEY CHINA PAKISTAN LEBANON TUNISIA NEPAL ISRAEL BANGLADESH TAIWAN INDIA EGYPT UAE HONG KONG EL SALVADOR THAILAND HONDURAS PHILIPPINES MALAYSIA COLOMBI
Slide 11: Awards and Accolades
Awards and Accolades Award for Direct Platinum Award for Trishul Award for Chemexcil Gold Award First Award for Direct Export Export of Self Small Scale Sector Small Scale Sector of Self Manufactured Dyes 2006-07 Manufactured Dyes 2008-09 2002-03 2005 2000-01 First Award for Direct Outstanding Certi
Slide 12: Key Strengths
Key Strengths • High entry barriers due to a stringent process of acquiring new permissions. • Heavy capital expenditure. Entry Barrier • Strict implementation of environmental and pollution norms. • The Company established a track Competitive record of long-term relationship with Position key globa
Slide 13: Business Overview
Kiri Industries Limited Fienre fall of Colors BUSINESS OVERVIEW
Slide 14: Business and Product Mix
Business and Product Mix Thionyl Chloro Chloride Other Sulphonic Speciality Acid Chemical Revenue Break-up (FY21) Oleum Basic Chemicals Vinyl 65% & 4% Dye Sulphone 23% Basic Chemicals Intermediates 4% 56% Dyes 40% Sulphuric H-Acid Acid Dyes Intermediates 40% 56% Reactive Disperse Dye Dyes Acid Dye D
Slide 15: Value Chain – Dye Stuff Manufacturing
Value Chain – Dye Stuff Manufacturing Raw Materials for Dyes Aniline Naphthalene In-house Acids and Usage of Intermediates such as VS, H- B-Napthol MPD, etc. effluents & by-products Acid, Gamma Acid, K-Acid MUA, etc. Result of Zero Waste Dyes Inputs Intermediates Manufacturing process Dyestuffs Black
Slide 16: Benefits of Zero Waste
Benefits of Zero Waste Operating Efficiency • The Company’s focus on becoming a Entry Superior Zero Waste company has ensured Barrier Return Ratios that Spent Acids are a source of revenue (converted into commercially viable products) and not a source of expense (frees the hassles of management and di
Slide 17: Dyestuff – An Overview
Dyestuff – An Overview Dyestuff are organic and inorganic substances which can absorb light as well as reflect some light to show colour. The dyestuff is also a water soluble substance. Criteria for a Suitable Dyestuff • Economical / Competitive • Better brightness • Non-toxic • Better fastness • Co
Slide 18: Dyestuff Manufacturing Process
Dyestuff Manufacturing Process Diazotization of Amine + HCl + Sodium Nitrite + Water + Ice Dissolving of Coupling Coupling of Component Diazo with Blending and (Coupling Coupling Clarification Standardization Spray Drying fine Packing Component + Components + standardization Water + Ice + NaHCO3 Cau
Slide 19: Reactive Dyes
Reactive Dyes • Reactive Dyes are the most versatile and popular class of Organic Dyes for importing colour on cellulosic fibres. • These are water soluble dyes which react to fibre, forming a direct chemical linkage with the application materials, which is not easily broken and offers good wash fas
Slide 20: Disperse Dyes
Disperse Dyes • Disperse dyes are synthetic organic dyes and is a kind of organic Fastness to wet treatment Fastness to dry heat substance which is free of ionizing group. They are less soluble in water and are used for dyeing synthetic textile materials. In terms of providing satisfactory Sublimati
Slide 21: Other Dyes
Other Dyes ACID DYES • Acid dyes are the dyes which can be applied directly to the application materials from an aqueous solution (without mordant). • The Company has been working on developing Acid dyes since a decade. It has been manufacturing this range of dyes for a long time. • Colours Availabl
Slide 22: Dyes Intermediates
Dyes Intermediates Total Revenue (INR Mn) & Gross Margins • Dyes intermediates are the main raw materials used for manufacturing dyestuffs. (Standalone) • The manufacturing chains of dyes and dyes intermediates can be traced back to petroleum-based 46% 47% 43% 43% products. 35% 33% 34% • Naphtha and
Slide 23: Dyes Intermediates – H-Acid
Dyes Intermediates – H-Acid H-ACID • H-acid is one of the leading dyes intermediates in the world, used in the manufacture of black dyes. • H-acid (8-amino- 1-hydroxynaphthalene-3,6-disulfonic acid), an important dye intermediate, is produced from Naphthalene by a combination of the unit processes o
Slide 24: Dyes Intermediates – Vinyl Sulphone
Dyes Intermediates – Vinyl Sulphone VINYL SULPHONE • Vinyl Sulphone is an industrial chemical used as a key raw material for manufacturing reactive dyes, having application mainly in textiles. It is manufactured from aniline. • It has applications in the manufacturing of Reactive dyes. • The Company
Slide 25: Basic Chemicals
Basic Chemicals • As part of strategic backward integration, the Company has set up a Basic Chemical facility to Total Revenue (INR Mn) & Gross Margins manufacture: (Standalone) • Sulphuric Acid • Chloro Sulphonic Acid • Thionyl Chloride 37% • Oleum 36% 36% 36% • All these products are made in one i
Slide 26: Future Outlook
Future Outlook • Lockdown on account of COVID19 impacted the The commissioning of the said projects shall business operations of the Company as well as empowered KIL to: the global economy. • Supplement more products in the current • Looking to the further impact of COVID 19, the product portfolio a
Slide 27: DyStar
Kiri Industries Limited Fienre fall of Colors DYSTAR
Slide 28: About DyStar
About DyStar • The DyStar Group is a leading dyestuff and chemical manufacturer and solution provider, offering a broad portfolio of colorants, specialty chemicals, and services to customers across the globe. • With a heritage of more than a century in product development and innovation for the text
Slide 29: History
History 1995 2002 2007 2012 2016 DyStar was founded in 1995 as a FOUNDATION ACQUISITION: ACQUISITION: FOUNDATION: ACQUISITION: JOINT Color Texanlab Sustainable Emerald joint venture between Hoechst AG VENTURE OF: Solutions Textile Performance and Bayer Textile Dyes. In 2000, the Bayer AG and Interna
Slide 30: Value Creation in DyStar
Value Creation in DyStar SUCCESSFULLY TURNING AROUND THE OPERATIONS OF DYSTAR The turn-around plan was successfully executed by replacing high cost German manufacturing base with low cost manufacturing in India, China and Indonesia, etc. KIL is entitled to profit shares of INR 826 Mn, INR 1,976 Mn,
Slide 31: Industry Overview
Kiri Industries Limited Fienre fall of Colors INDUSTRY OVERVIEW
Slide 32: The Colourant Industry
The Colourant Industry • Global colorants market is forecast to witness a CAGR of around 9% during 2020 – 2025. The market is driven by the rising inclination of consumers towards innovative and appealing shades of packaged products and items. Moreover, the increasing need for dyestuff in numerous e
Slide 33: Dyestuff Industry
Dyestuff Industry Dyestuff Industry: The global dye market is expected to witness a growth of USD 8.75 billion by 2023 with a CAGR of 8.13%. The dyes and dyestuff industries play a major role in the growth of the chemical industry. Dyes intermediates are products that are transformed to finished dye
Slide 34: India’s Competitive Advantage
India’s Competitive Advantage China Factors Advantage India 2014-present China Factors: (Industry is shifting to other Asian In China, apart from the ETP countries; India is well placed to hurdle, there is: grab the opportunity) 1. Reduction in the refund of VAT from 17% to about 13% on DI Intervent
Slide 35: Strategic Overview
Kiri Industries Limited Fienre fall of Colors STRATEGIC OVERVIEW
Slide 36: The Way Forward
The Way Forward Focus on Focus on establishing Focus Focus on setting up Inorganic and joint ventures on Free expanding the Set up Focus on manufacturing organic with Cash Flow existing manufacturing strengthening facility of growth leading MNCs Generation Disperse dyes facilities of product mix Com
Slide 37: Financial Overview
Kiri Industries Limited Fienre fall of Colors FINANCIAL OVERVIEW
Slide 38: Standalone Income Statement
Standalone Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 H1-FY22 Revenue from Operations 10,619 9,690 6,892 4,628 Total Expenses 9,055 8,729 6,901 4,665 EBITDA 1,564 961 (9) (37) EBITDA Margin 14.73% 9.92% NA NA Other Income 28 41 20 8 Depreciation 285 366 390 218 Finance Cost 44 45 38 20 PBT
Slide 39: Standalone Balance Sheet
Standalone Balance Sheet PARTICULARS (INR Mn) FY20 FY21 H1-FY22 PARTICULARS (INR Mn) FY20 FY21 H1-FY22 Equity Non Current Assets 7,665 8,094 8,140 6,730 6,346 6,176 a) Property, Plant and Equipment 4,635 5,189 5,123 Equity Share Capital 336 336 400 b) Other Intangible assets - - 1 Other Equity 6,394
Slide 40: Consolidated Income Statement
Consolidated Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 H1-FY22 Revenue from Operations 13,938 13,054 9,570 6,507 Total Expenses 11,628 11,193 8,744 6,027 EBITDA 2,310 1,861 826 480 EBITDA Margin (%) 16.57% 14.26% 8.63% 7.38% Other Income 27 53 22 9 Depreciation 376 444 461 255 Finance Cos
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (INR Mn) FY20 FY21 H1-FY22 PARTICULARS (INR Mn) FY20 FY21 H1-FY22 Equity 19,334 21,844 23,761 Non Current Assets 18,919 21,575 23,335 Equity Share Capital 336 336 400 a) Property, Plant and Equipment 5,062 5,591 5,502 Other Equity 18,998 21,508 23,361 b) Other
Slide 42: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & PAT (INR Mn) & PAT Margins (%) EBITDA Margins (%) 13,938 15.94% 16.57% 1,576 13,054 14.26% 11,983 11,352 13.27% 2,310 1,267 1,095 1,157 9,570 1,810 1,861 8.63% 7.38% 1,590 6,507 2.28% 2.95% 826 9.14% 11.16% 11.31% 480 8
Slide 43: Capital Markets
Capital Markets Share Price Data as on 30th September, 2021 60% 50% Kiri Sensex 40% 30% 20% 10% 0% -10% -20% -30% Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Price Data (30th September, 2021) INR Shareholding Pattern as on 30th September, 2021 Face Value 10.0
Slide 44: Disclaimer
Disclaimer Kiri Industries Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all
Slide 45: Thank You
Kiri Industries Limited Fienre fall of Colors THANK YOU
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