Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Investor Presentation (August 2023)
29 slides from Laxmi Organic Industries's investor presentation, Aug 16, 2023
Slide 1: Intimation of Schedule of Institutional Investor Meetings
August 16, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip Co
Slide 2: Laxmi Organic Industries Limited Corporate Presentation
Laxmi Organic Industries Limited Corporate Presentation www.laxmi.com
Slide 3: Disclaimer
Disclaimer This presentation is issued by Laxmi Organic Industries Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any off
Slide 4: Table of Contents
Table of Contents 01 Company Overview 04 The Way Forward 02 Our Journey 05 Business Updates 03 Key Strengths 06 Financial Snapshot LAXMI ORGANI C I NDUSTRI ES LI MI TED | Corpor ate Presenta ti o n 3
Slide 5: Company Overview
Company Overview www.laxmi.com
Slide 6: Who we are?
Who we are? AI SI FI Acetyl Specialty Fluorine Intermediaries Intermediaries Intermediaries o #1 in India o #1 in India o USD 2.5 bn market o #3 globally (excluding China) o Top 5 globally o World class technology o Capacity > 232 kTPA o >30 products via R&D o Innovation, Safety & o Lead in Quality,
Slide 7: Key Strengths
Key Strengths www.laxmi.com
Slide 8: Category Leader with Differentiated Business Model
Category Leader with Differentiated Business Model Ambitions… 1 Global leadership in our range of products Cost leadership across the technology 1 Top 5 in our segments globally 2 platforms Historical Performance (INR Cr) 2,100 2 Continued leading cost positions 3 Large-scale, flexible and safe oper
Slide 9: Strategically located manufacturing sites with room for expansion
Strategically located manufacturing sites with room for expansion Manufacturing units Distelleries Mahad (2 units) Lote 3rd party storage tank agreements ◼ Land parcel: 40 acres ◼ Land parcel: 30 acres ◼ Land Occupancy: 90% ◼ Land Occupancy: 50% ◼ Product Mix: ◼ Product Mix: • Essentials – 60% • Spe
Slide 10: De-risked Business Model with Diversified Revenues
De-risked Business Model with Diversified Revenues Exports continue to remain relevant Building Deeper Exports Domestic Export FY23 67% 69% 5% 64% 62% 60% 9% 11% Europe America 40% 11% 30% 36% 38% 13% 33% 31% Asia-Pacific Middle East Q1’24 13% 55% Africa 20% 32% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY
Slide 11: Demonstrated Resilience Over Business Cycles
Demonstrated Resilience Over Business Cycles Laxmi Acquisition of Acquisition of Miteni – IPO Diketene Capacity Acquisitions / Clariant’s diketene Fluorine Intermediates Listing Investments Expansion business Acquisition of 1.0 India Acetic Acid CFR (USD/kg) YCPL - ETAC 0.9 0.8 Impact of COVID Econo
Slide 12: Track Record of technology absorption and in-house R&D capabilities
Track Record of technology absorption and in-house R&D capabilities ◼ Acquisition of Ketene/Diketene business 2010 ◼ Acquired know-how of some ◼ Developed multiple different chemistry pigment derivatives platforms on commercial scale ◼ Addition of capacity for ethyl acetate ◼ Addition of 30 New Prod
Slide 13: Experienced promoters with senior management led by Dr. Rajan
Experienced promoters with senior management led by Dr. Rajan Promoters Senior Management Ravi Goenka Harshvardhan Goenka Dr. Rajan Venkatesh Tanushree Bagrodia Chairman Executive Director – BD & Strategy Managing Director & CEO Chief Financial Officer ◼ Bachelors’ degree in chemical ◼ B.Sc from Bab
Slide 14: Global Leaders with best-in-class independent governance
Global Leaders with best-in-class independent governance Independent Directors Rajeev Vaidya Dr. Rajiv Banavali Manish Chokhani O.V. Bundellu Sangeeta Singh ◼ B.Tech (CE) from IIT, ◼ Bachelor’s and Master’s ◼ MBA (LBS), associate of ◼ Master’s degree in ◼ BA from Wilson College, Mumbai, & a doctorat
Slide 15: The Way Forward
The Way Forward www.laxmi.com
Slide 16: Positioning for the next Growth Phase
Positioning for the next Growth Phase Proven Success Customer Needs Innovation 1 2 3 4 Product Plant Platform Customer SI & FI Pivoting for the Next Growth Phase AI Price Product 1 2 3 4 Specialty & Acetyl Customer Platform Plant Product Fluorine Intermediates Intermediates LAXMI ORGANI C I NDUSTRI
Slide 17: Sharpening Business Focus
Sharpening Business Focus Various Customer Interaction Models (CIM) Trader / Lean/ reliable Standard package Product/ process Customized Value chain Business Transactional basics supplier provider innovator solution provider integrator Supplier Acetyl Intermediates Specialty Intermediates Fluorine I
Slide 18: Differentiated financial steering
Differentiated financial steering Essentials Specialties 1 2 3 4 5 Technology New Esterification Acetylation Ketene/ Diketene Fluorination Platforms Platforms… Asset Turns Asset Turns 3-5 1-2 Targeted Financial KPIs EBITDA Margins EBITDA Margins 8-12% 20-25% Combined ROCE 20% LAXMI ORGANI C I NDUSTR
Slide 19: Robust Innovation pipeline
Robust Innovation pipeline 1 Continue to invest 2% of Specialties revenues for Innovation 2 Continue >20% Revenue Contribution from New Products in Specialities* 3 Strong Innovation Pipeline – 11 products are in pilot and capex approval stage 4 Infrastructure - Miteni piloting assets already in plac
Slide 20: Essentials Business Unit: Large addressable market (1/2)
Large addressable market (1/2): Essentials Business Unit Global Acetyl Market Geographical segmentation Growth Drivers (in $ bn) 2019: $ 13.4 bn 18.3 APAC ◼ Use of high evaporation rate solvents in 13.4 9% 7% manufacturing North America 10 37% ◼ Growth in demand of personal care 22% Europe products,
Slide 21: Specialties Business Unit: Large addressable market (2/2)
Large addressable market (2/2): Specialties Business Unit Sizeable Specialties Market Global Market growth India Market growth 902 (in $ Bn) 30.3 (in $ Mn) 23.5* 565 18.6 387 2014 2019 2024F 2014 2019 2024F *LOIL’s products address a part of this $23.5 Bn market (~$3.5 Bn TAM) Diketene & derivatives
Slide 22: Living Our Values to Deliver our Ambitions
Living Our Values to Deliver our Ambitions Integrity 1 Innovation To do what is right in the interest 4 To create a culture where failure of all our stakeholders with an is the first step to success unwavering focus 4 Customer Centricity Sustainability To improve the lives of our 2 To make a positiv
Slide 23: Business Updates
Business Updates www.laxmi.com
Slide 24: Business Update – Lote
Business Update –Lote Project Update Timelines ◼ Cost to complete – INR 550 Cr o Project had delays and cost overrun ◼ FY 24 – Complete commissioning and sampling o COVID restrictions, rise in freight costs and EHS ◼ FY 25 – Ramp up production o Invested in infrastructure & utilities for future expa
Slide 25: Largest Ever CAPEX to consolidate market position
Largest Ever CAPEX to consolidate market position Leveraging… Investment at Dahej ◼ INR 710 Cr over the next 3 years ◼ Shifting of supply chains (China +1) ◼ Development over 20% of the available land parcel ◼ Growing end products markets ◼ Support customers growth and business continuity needs ◼ Gr
Slide 26: Financial Snapshot
Financial Snapshot www.laxmi.com
Slide 27: Financial Update: Highlights Q1'24
Financial Update: Highlights Q1‘24 Consol CFO ROCE* Consol Revenue Consol EBITDA ₹ 1,717m 15% ₹ 7,375m ₹ 813m 37% QoQ Vs 12% for FY23 0% QoQ 26% QoQ 5% YoY *annualised RoCE -3% YoY -21% YoY Business Unit Business Unit Revenue Business Unit EBITDA Export Specialties CM% growth Essentials: 67% Essenti
Slide 28: Financial Update – Consolidated Results
Financial Update– Consolidated Results Particulars (INR Mn) Q1 FY24 Q4 FY23 QoQ (%) Q1 FY23 YoY (%) FY23 FY22 YoY (%) FY21 Total Income 7,375 7,370 0% 7,587 -3% 28,087 30,991 -9% 17,730 Cost of Materials 4778 4880 -2% 4580 4% 18,552 21,256 -13% 11,743 Gross Profits 2,597 2,490 4% 3,007 -14% 9,535 9,
Slide 29: Thank You!
Thank You! For further information, please contact: Kruti Patel Aniket Hirpara kruti@GoIndiaadvisors.com investors@laxmi.com M:+91 8108933441 M:+91 7666830913
Laxmi Organic Industries — Investor Presentation (August 2023) on 6ix