Jk Tyre & Industries Limited · NSE:JKTYRE
Jk Tyre & Industries — Investor Presentation (May 2019)
29 slides from Jk Tyre & Industries's investor presentation, May 2019
Slide 1: Corporate Presentation
Corporate Presentation May 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by JK Tyre & Industries Limited (the “Company” or “JK Tyres”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distr
Slide 3: J.K. Organisation
J.K. Organisation Indica Travels 3 3
Slide 4: Group Businesses
Group Businesses • Pioneer in Radials • 32 Mn. Tyres p.a. - 4 /2 Wheeler Major supplier to Defence & OEM Largest producer of branded paper 13 Million tones capacity 4500 dealers across India 5.90 Lac tones per year - 3 Integrated and 6 grinding units Exports to over 100 countries 3 Str
Slide 5: JK Tyre & Industries Limited - Company Overview
JK Tyre & Industries Limited - Company Overview Ranked top 22nd tyre company in the world Company Background Pioneer of radial technology in India and ranked No. 1 Truck/Bus Radial • Established Tyre Business in 1977 • Manufacturing and marketing of (TBR) manufacturer with market share of ~32% aut
Slide 6: JK Tyre: The Journey So Far
JK Tyre: The Journey So Far • Acquired • Major TBR expansion • Started All • New OTR Vikrant Tyres Steel Truck of ` 950 crore in Plant in Ltd., Mysore Cavendish underway radial Mysore Mysore 2018-19 • First Tyre plant in Kankroli, 2016 Rajasthan 2013-14 2012 • Acquired 2010 Cavendish 2008 • Greenfie
Slide 7: Manufacturing Footprint
Manufacturing Footprint Location of Manufacturing Facilities India Mexico Laksar, Uttrakhand– 3 Kankroli, Rajasthan – 1 Banmore, Madhya Pradesh – 1 Total 12 Hidalgo – 1 Tultitlan – 1 Manufacturing Azcapotzalco – 1 Facilities with Mysore, Karnataka – 3 Chennai, Tamil Nadu – 1 Annual Production Manu
Slide 8: Industry Overview
Industry Overview Indian Tyre Industry Overview Overview: By Revenue Segment – FY19 By End Market – FY19 • Indian Tyre Industry generates over `62,000 crore in Others turnover (US$ 8.9 bn) 2/3 9% Truck & OEM Wheelers Bus 32% • Commercial Tyre segment (Truck/Bus & LCVs) 13% 54% accounts for ~2/3rd (b
Slide 9: Industry Outlook FY20
Industry Outlook FY20 Indian Tyre Industry Outlook FY20 • Tyre demand is expected to grow by 7-9%, where OEM and Replacement segment will grow at equal pace. - MHCV tyre demand is expected to be driven by growing freight demand and infrastructure development. - LCV tyre demand is expected to be driv
Slide 10: Raw Material Price Trend
Raw Material Price Trend Natural Rubber – Price Movement ($/MT) RM Consumption by Value (FY19) 2400 2,174 2200 Chemicals Natural 2,232 2000 & Crude Rubber 1,832 1800 1,844 1,729 1,714 1,729 1,714 1,711 Derivatives 33% 1600 1,759 1,694 1,723 1,6931,678 1,544 1,629 41% 1,749 1,421 1,623 1,623 1,421 1,
Slide 11: Truck and Bus Radialisation is Gaining Momentum
Truck and Bus Radialisation is Gaining Momentum Radialisation (%) Key Drivers & Trends 90% Projected Actuals 82% 80% Cost - Benefit Ratio 80% 74% 73% 72% 68% 70% 61% Road Infrastructure 60% 62% 51% 58% 50% 53% 42% Overload Control 48% 40% 46% 34% 34% 44% 30% 25% 33% User Education 20% 26% 22% Radial
Slide 12: Leading Indian Tyre Manufacturer: Presence Across Product Segments
JK Tyre - Leading Indian Tyre Manufacturer: Presence Across Product Segments By Revenue Segmentation¹ – FY19 By Market By Product Line Exports Others 9% 2/3 13% Wheeler 4% PLR OEMs 18% Truck and 36% Bus Replacement 65% 55% By Customer Mix² – FY19 Passenger Car Truck & Bus Truck Radial OEMs 40% Repla
Slide 13: Product Portfolio: Moving in Sync with Radialisation
JK Tyre - Product Portfolio: Moving in Sync with Radialisation Truck Radial & Passenger Radial Pose Healthy Growth Wide Product Range No. of Tyres Sold (Consolidated) Particulars (Mn) *FY19 FY18 FY17 FY16 FY15 Truck Bias 2.15 1.91 1.94 1.77 2.08 Farm Industrial Truck Radial 2.98 2.52 2.11 1.81 1.53
Slide 14: Our Strengths
Our Strengths Diversified Product Portfolio Extensive and Growing Distribution Network with well Established Brands Strong R&D Capabilities leading to faster Product Development Longstanding Relationships with Customers and Suppliers Experienced Management Team Supported by a Committed Employee Base
Slide 15: Extensive Distribution Network
Extensive Distribution Network … Indian Distribution Footprint • 45 JK Tyre Truck Wheels 4,500 Dealers Fully equipped Tyre service centre offering Total Tyre Solutions 345 Distributors • 355 JK Tyre Steel Wheels Tie up with 870 Fleet Operators Exclusive Passenger Car Tyre Retailing Tie up wi
Slide 16: Strong R&D Capabilities leading to Product Innovations
Strong R&D Capabilities leading to Product Innovations R&D Facility Technology - R&D Centre (RPSCOE): • Centralized R&D center in Mysore, Karnataka • Employs more than 350 R&D and Technology personnel • R&D efforts focused on the field of advanced materials, alternate materials, nanotechnology, proc
Slide 17: Strong OEM Relationships: Industry Leading Partners
Strong OEM Relationships: Industry Leading Partners Car Truck Tractor OTR • Maruti Suzuki • TATA Motors • TAFE • BEML • TATA Motors • Mahindra & • Mahindra & • Caterpillar Mahindra Mahindra • Mahindra & • L&T Construction Mahindra • Ashok Leyland • Captain • Tractors India • Honda Cars • Volvo Eiche
Slide 18: Experienced Management with a Committed Employee Base
Experienced Management with a Committed Employee Base Dr. Raghupati Singhania Chairman & Managing Director Arun K. Bajoria Rajiv Prasad Praveen Chaudhury Director & President – Anshuman Singhania President – India A. K. Kinra Sanjeev Aggarwal V. K. Misra Chief Operating Officer – International Opera
Slide 19: Sustainability Initiatives - improving operational efficiencies
Sustainability Initiatives - improving operational efficiencies.. Energy Consumption Trend (Gj Per Tonne) Water Consumption Trend (KL Per Tonne) 14 5.00 12.31 4.40 12 11.23 4.50 10.74 10.33 3.90 10.20 9.81 4.00 10 3.40 3.50 2.83 8 3.00 2.42 2.50 2.18 6 2.00 4 1.50 1.00 2 0.50 0 0.00 2013-14 2014-15
Slide 20: Cavendish Industries Ltd. Significant production ramp-up since takeover
Cavendish Industries Ltd. Significant production ramp-up since takeover Particulars FY17 FY18 FY19 Capacity Utilisation 90% 81% 80% Installed Capacity 70% 62% - MT 133964 133964 147760 60% - MT(per day) 383 383 422 50% 41% 40% Production 30% - MT 54376 83058 119030 20% - MT(per day) 155 237 342 10%
Slide 21: Cavendish Industries: TBR Capacity Expansion
Cavendish Industries Ltd. TBR Capacity Expansion Brand new 4 nos. packed Tyre Building Machines – an integral part of purchase consideration at the time of acquisition – Recently commissioned. Capacity expansion from 7.40 Lac Tyres p.a. to 13.85 Lac Tyres p.a. The project was completed for `27
Slide 22: Cavendish Industries: Proposed Expansion Project
Cavendish Industries Ltd. Proposed Expansion Project of `675 crore Capacity Expansion – TBR from 13.85 to 20.57 Lac/Nos. @ Cost of `590 crore - Tractor Rear from 0.20 to 0.95 Lac/Nos. @ Cost of `85 crore (Similar Brownfield expansion would cost `900~1000 crore) Funding through a mix of debt & eq
Slide 23: Financial Overview: Consolidated
Financial Overview: Consolidated `/Crs S.No. Particulars FY19 FY18 y-o-y growth 1 Net Sales & Other Income 10,452 8,418 24% 2 PBIDT 1,196 883 35% 3 % to Net Sales & OI 11.4 10.5 4 PBDT 675 418 62% 5 PBT (after exceptional items) 270 107 153% 6 Net Profit 176 63 180% Sales Growth in FY19 - Domestic M
Slide 24: Business Highlights: Consolidated
Business Highlights: Consolidated (Mn Nos) Highest ever sales in FY19 at Rs.10,452 crore. Truck Radial 3.5 JK Tyre with 32% share in TBR market 3 2.98 benefitted the most post imposition of Anti- 2.5 2.52 Dumping Duty on TBR. 2 2.11 1.5 1.81 1.53 Highest share in industry at 30% in Commercial
Slide 25: Key Focus Areas
Key Focus Areas Improvement in NSR through Product and Market Mix Optimization • Higher Sales of TBR Premium products • Higher Sales of PCR Tyres in > 15 inch category • Higher Sales of Light Truck Radial Tyres. • Introduction of higher value added products. • Increasing volume through innovative
Slide 26: Key Drivers
Key Drivers • Easing of liquidity expected in current FY • Increasing number of international auto will result in substantial increase in brands now manufactured in India demand for automobiles. • Taxi Aggregators viz., Uber, Ola driving • Expected boost in commercial vehicle the demand segment due
Slide 27: Growth Strategy Going Forward
Growth Strategy Going Forward 1 2 Strengthen Market Increase Global Position across Business Share Segments 6 3 Leverage benefits Deleverage of expanded Balance Sheet capacity at CIL 5 4 New Product Improve Development Profitability through Focus on R&D 27
Slide 28: Acquisition History: Tornel & Cavendish
Acquisition History : Tornel & Cavendish Manufacturing Excellence Manufacturing Excellence Acquisition Overview Acquisition Overview • Acquired in 2008, well established tyre company in Mexico • Acquired in April 2016 • 3 tyre manufacturing plants in Mexico (Azcapotzalco, Tultitlan and • State-of-th
Slide 29: Thank you
Thank you 29
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