Shanthi Gears Limited · NSE:SHANTIGEAR
Shanthi Gears — Investor Presentation (April 2012)
41 slides from Shanthi Gears's investor presentation, Apr 19, 2012
Slide 1: Shanthi Gears Limited Corporate Presentation
SHANTHI GEARS LIMITED Corporate Presentation Private & Confidential
Slide 2: Abbreviations
Abbreviations 1. Bn: Billion 2. FY: Financial year ending 31st March 3. Mn: Million 4. INR: Indian Rupees 5. USD: US Dollar 6. R&D: Research & Development 7. CAGR: Compounded Annual Growth Rate 8. Mm: millimeter 9. Dia: diameter 10. MW: Mega watts 11. TN: Tamil Nadu 12. TNEB: Tamil Nadu Electricity
Slide 3: Presentation Structure
Presentation Structure 1 Executive Summary 2 Corporate Profile 3 Financials 4 Annexure 2
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary Company / • SGL is amongst the leading players in the industrial gears segment in India. Commenced Operations in 1969. Business Overview • Headquartered in Coimbatore, the Company is listed on Indian stock exchanges • Promoted by a technocrat entrepreneur having over 4 decades of e
Slide 6: Corporate Profile
Corporate Profile
Slide 7: Introduction
Corporate Profile Introduction Shanthi Gears Limited (SGL / Company), is amongst the largest players in the industrial gears segment in India Promoted by a technocrat entrepreneur having over 4 decades of industry experience Strong professional management team supported by a highly experienced
Slide 8: Key Milestones
Corporate Profile Key Milestones Internal re-structuring of management. Professional CEO brought on board Certified ISO 9001 Established as Shanthi Engineering & Trading Co manufacturing small gears 2011 Equity shares listed on stock exchanges 2011 Converted to a private limited company and 2008 sta
Slide 9: Shareholding Pattern & Board of Directors
Corporate Profile Shareholding Pattern & Board of Directors Name & Designation Qualification Brief Profile Mr. P. Subramanian L.M.E. Mr. Subramanian is the founder promoter Chairman & Managing P.D.Prod.E. shareholder of Shanthi Gears Limited Director Retail A first generation entrepreneur he has
Slide 10: Key Management Profile
Corporate Profile Key Management Profile Name Designation Qualification Total Experience Brief Profile Experience with SGL Mr. VCS Velumani CEO BE 20 1 • More than 2 decades of industry experience • Previously with Siemens (Winergy Drive) Mr. S Srinivas CFO M.Sc. (Maths) 31 30 More than 30 years o
Slide 11: Human Resources
Corporate Profile Human Resources Chairman & Managing Manpower Break-up as on 31st March 2012 Director Department / Designation Corporate Office Unit A Unit B Unit C Unit F Total Company Directors 1 1 Secretary Senior Level Management 4 8 12 Middle Level Management 3 6 13 27 8 57 CEO CFO Technical 2
Slide 12: Products
Corporate Profile Products Though significantly low in overall project cost, gear is amongst the most critical part of any manufacturing industry Manufacturer of wide range of critical components involved in Standard Products Custom Built Custom Built power transmission process including gears, ge
Slide 13: Infrastructure
Corporate Profile Infrastructure Fully integrated manufacturing facility with huge scope for future expansions Land Area Building Six units located near Coimbatore Unit Activity (Acres) Area (sq ft) One of the largest gear manufacturing facilities in India Unit A 0.72 49,376 Gears for textile in
Slide 14: Infrastructure – Manufacturing Facilities
Corporate Profile Infrastructure – Manufacturing Facilities One of the largest and most modern manufacturing facility in India with all processes performed in-house Machine Shop Facilities Heat Treatment Facilities • Equipped with latest CNC facilities for the entire manufacturing • Most modern & la
Slide 15: Infrastructure – Foundry Facilities
Corporate Profile Infrastructure – Foundry Facilities ~ 25 years track record of proven quality in foundry operations Capacity of 5,000 tons of castings per annum Manufacturing of graded casting in Grey cast iron and SG iron with weights varying from few grams to 2,000 Kg Centrifugal casting
Slide 16: Infrastructure – Engineering Facilities
Corporate Profile Infrastructure – Engineering Facilities Extensive in-house engineering facility, with a total strength of 47 employees, experienced in providing optimum and comprehensive technical solutions for the last four decades Engineering State-of-the-art work stations with industrial le
Slide 17: Infrastructure – Metrology & Calibration and Quality Control Facilities
Corporate Profile Infrastructure – Metrology & Calibration and Quality Control Facilities Metrology & Calibration Lab Quality Control Facilities • To ensure the reliability of the measured dimensions, SGL • Strict quality control measures has set up full fledged calibration facilities in-house • All
Slide 18: Infrastructure – Wind Mills
Corporate Profile Infrastructure – Wind Mills Wind Mill Specifications Particulars Wind Mill 1 Wind Mill 2 Wind Mill 3 Wind Mill 4 Wind Mill 5 Wind Mill 6 Wind Mill 7 Make Bonus Bonus NEPC Suzlon Suzlon Suzlon Suzlon Output Power 320 KW 2 X 320 KW 2 X 225 KW 1250 KW 1250 KW 1250 KW 1500KW Installed
Slide 19: Manufacturing Process
Corporate Profile Manufacturing Process Foundry – Profile Gear Worm Process Ferrous / Key Way Heat Grinding Design Forging Turning Hobbing / Profile Assembly Steps Non- Milling Treatment of Spur Cutting Grinding Ferrous Helical Capable of Over 20,000 Hot open Capability to Provides a Gea
Slide 20: Marketing Network
Corporate Profile Marketing Network The Company has a strong marketing network with offices across 15 cities of India with a strength of ~100 employees Marketing offices strategically located in / near to industrial hubs Company owned offices in Mumbai and Baroda All international sales are
Slide 21: Quality Control
Company Profile Quality Control Strong focus on quality, having the distinction of being the only gear company in India having AS 9100 certification • The Company places significant emphasis on quality control measures • Employs ~35 people in the Quality Assurance Department (QAD) • In-house full fl
Slide 22: Raw Material / Sourcing
Company Profile Raw Material / Sourcing Break-up of Raw Material Consumed (FY 2011) • Raw material constitutes ~50 % of total expenses Others 1% • Key raw material procured include Steel Rods, Bearings, MS Plates and Foundry products Consumables 20% • Raw material procured only from reputed manufact
Slide 23: Select Clientele
Company Profile Select Clientele Monnet Ispat & Energy Limited 22 Note: Brand names, Trademarks and Logos are property of the respective companies
Slide 24: Financials
Financials
Slide 25: Historical Financials
Financials Historical Financials Profit & Loss Account Balance Sheet 9m FY FY 2010 FY 2011 FY 2010 FY 2011 2012 In INR millions In INR millions Share Capital 81.72 81.72 Net Sales 1,213.87 1,603.60 1,236.90 Reserves & Surplus 2,026.77 2,210.41 Other Income* 70.65 48.77 34.62 Total Loan Funds 256.29
Slide 26: Historical Financials
Financials Historical Financials Net Sales, EBITDA and PAT Expenditure Break-up 1,800.0 100% 1,603.6 71.2 91.0 Other 1,600.0 90% 63.5 75.3 215.22 expenses 80% 52.8 1,400.0 1,236.9 39.2 combined 1,213.9 70% 1,200.0 183.1 INR million 60% 163.1 205.51 1,000.0 50% 800.0 714.8 550.7 40% 600.0 499.8 30% 5
Slide 27: Sales Segmentation
Financials Sales Segmentation Standard Products Vs Customised Products Industry-wise Sales Segmentation (Current Year) Cement 100% Earthmoving Paper & Rubber 2% Sugar Lift & Elevators 1% 3% 2% 2% Windmill 3% 80% Conveyor & Material Extruders Handling 2% 3% 1,056.12 Chemicals & 890.39 Plastics 60% 1,
Slide 28: Sales Segmentation – Domestic vs Export
Financials Sales Segmentation Domestic Sales Vs Export Sales 7.7% 6.6% 11.7% 100% 93.58 105.17 200.76 DELHI 80% % of Revenues : 12% EAST INDIA 60% % of Revenues : 11% 1,120.29 1,498.44 1,521.79 Delhi 40% 92.3% 93.4% 88.3% GUJARAT 20% % of Revenues : 7.5% 0% Ahmedabad FY 2010 FY 2011 CY 2012 Baroda K
Slide 29: Sales Segmentation – Exports
Financials Sales Segmentation - Exports UK Top 10 export markets contribute ~90% of total export sales SRI LANKA Sixth Largest export market for Constitutes 2.3% of total SGL exports 7% of total exports CANADA BANGLADESH Largest export market for SGL Contributes 1.8% to total export 27.7
Slide 30: Sales Segmentation – Revenue Concentration
Financials Sales Segmentation Revenue Concentration Top 10 Customers (Current Year) 70.0% Customer Major Product Value (INR mn) 60.0% Customer 1 Non standard gear box 78.11 Customer 2 Helical, Bevel helical gear box 60.06 50.0% Customer 3 ISO Items 44.00 30.3% Customer 4 Worm gear box 43.23 40.0% 28
Slide 31: Working Capital Assessment
Financials Working Capital Assessment INR million Debtors Ageing Analysis (Current Year) Creditors Break-up (Mar 2011) FY Ending 31 March 2010 2011 Current Assets INR million Debtors 148.7 258.7 More than 365 FY Ending 31 March Mar 2011 Days Days of revenue 45 59 24% Liability for Capital Goods 51.4
Slide 32: Annexure
Annexure
Slide 33: Product Descriptions – Standard Products
Annexure – 1 Product Descriptions – Standard Products Standard Product Descriptions Product Category Ratio Type 5:1 to 70:1 in single • Under Driven / Over Driven / Vertical Input or Output Shaft Version / Shaft Worm Gear Adaptable 1.125” to reduction and 4900:1 in Mounted Version Boxes 3.37” size d
Slide 34: Product Descriptions – Textile Gear and Gear Assemblies
Annexure – 1 (Contd..) Product Descriptions – Standard Products – Textile Gear and Gear Assemblies The Company manufactures following types of gears and Products Specifications / Types gear assemblies for the textile industry: Spur / Helical Gears • 0.75 module to 30 module Internal Gears • Max CD
Slide 35: Product Descriptions – Customised Products
Annexure – 1 (Contd..) Product Descriptions – Customised Products Special Gearboxes for Industries Customised Loose Gears Industry Gearboxes Product Specifications / Types • Ball Mill Drive • Upto 30 mm Module and 3200 mm dia. in soft and • Bevel Helical Vertical Gear Box for Air Separator Spur / He
Slide 36: Product Descriptions – Special Products
Annexure – 1 (Contd..) Product Descriptions – Special Products Special Products for Crane Applications Product Input Power Total Ratio Dimensions Main Hoist Gearbox (with • 118.7 : 1 (Shaft A driving) planetary differential) 400 kW @ 740 rpm • 120.2 : 1 (Shaft B driving) • 8,900 mm x 1,010 mm (31,30
Slide 37: Key Plant & Machinery
Annexure - 2 Key Plant & Machinery Process Make & Model Specifications Gleason PFAUTER CNC model P400G Max. workplace diameter - 400mm; Max. module can be ground 14 Module Gleason-PFAUTER CNC model P2400G with Workable Diameter -2400mm; Minimum/Maximum centre distance -300/1550 internal grinding att
Slide 38: Key Plant & Machinery (Contd..)
Annexure – 2 (Contd..) Key Plant & Machinery Process Make & Model Specifications CNC Universal Liebherr LC1200 Max. Work Piece Diameter - 1200 mm; Min. Centre Distance-75 mm Hobbing Max. Centre Distance-800 mm; Max. Nominal Module for steel - 12/60/20 Machines Max. Hob slide travel-1000 Max. work pi
Slide 39: Key Plant & Machinery (Contd..)
Annexure – 2 (Contd..) Key Plant & Machinery Process Make & Model Specifications 6 axis SHW, model UFZ 6L Travelling X-axis Column Longitudinal -12 M ; Y-axis Spindle Vertical - 3.1 M; Column (12M) Machine for large Z-axis Headstock Transverse - 1.6 M; Clamping Surface - 3 M x 12 M; components with
Slide 40: Key Plant & Machinery (Contd..)
Annexure – 2 (Contd..) Key Plant & Machinery Process Make & Model Specifications CNC Vertical Turning Centre Cooper CVT 150 F Control system Fanuc O - T. Max. Ø1500 mm. Table diameter - 1500mm; Maximum swing diameter - 1600mm; Height under cross rail - 750mm; Vertical traverse of Turret Head ( Z - a
Slide 41: Thank You
Thank You 40 4/19/2012