Oriental Aromatics Ltd. · NSE:OAL
Oriental Aromatics — Investor Presentation (March 2024)
33 slides from Oriental Aromatics's investor presentation, Mar 1, 2024
Slide 1: Exchange disclosure letter under Regulation 30
Ref: OAL/BSE/NSE/133/2023-24 01st March, 2024 To To The Manager The Manager Department of Corporate Services, Listing Department, BSE Limited, National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai- 400 001 Bandra (East), Mumbai -
Slide 2: Investor Presentation March 2024
\ INVESTOR PRESENTATION MARCH 2024
Slide 3: Executive Summary
EXECUTIVE SUMMARY OVERVIEW FY23 CONSOLIDATED FINANCIALS • Oriental Aromatics Ltd. is one of the largest Indian manufacturers of a variety of Aroma Chemicals, Camphor, OP. INCOME - INR 8,491 Mn Fragrances and Flavours. • The company is one of the privileged few integrated EBITDA - INR 542 Mn manufact
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Company Overview
COMPANY OVERVIEW • The Fragrance and Flavours business of Oriental Aromatics was founded by Mr. Keshavlal Bodani in 1955 and OPERATIONAL REVENUE, PAT & EBITDA MARGIN (INR) has been nurtured and handed down to three generations of the Bodani’s. • In August 2008, Oriental Aromatics Ltd. acquired a con
Slide 6: Value Chain
VALUE CHAIN SOURCES OF RAW MATERIALS RAW MATERIALS PRODUCTS/BLENDS APPLICATIONS INCENSE STICKS AIR FRESHENERS AROMA INGREDIENTS • Specialty Aroma Chemicals PINE TREE • Pine Oil COSMETICS • Terpene based aroma chemicals • Others SPIRITUAL SYNTHETIC CAMPHOR BALMS PETROLEUM ALPHA PINENE FRAGRANCE AND F
Slide 7: Promoter Background and Board of Directors
PROMOTER BACKGROUND AND BOARD OF DIRECTORS MR. DHARMIL A. BODANI – CHAIRMAN AND MANAGING DIRECTOR MS. SAPNA U. TULSIANI- NON-EXECUTIVE & INDEPENDENT DIRECTOR • A dynamic personality with vast experience of more than 3 decades in fragrance, flavours • Ms. Tulsiani has functional expertise in sales, m
Slide 8: Geographical Presence
GEOGRAPHICAL PRESENCE Bareilly, Uttar Pradesh Vadodara, Gujarat Headquarters, Mumbai, Ambernath, Maharashtra, INDIAMaharashtra Manufacturing Plants Export to Countries Africa Asia Sri Lanka Europe Egypt Bangladesh Thailand Austria Kenya China UAE Egypt Zambia Hongkong Vietnam France Australia Indone
Slide 9: Key Milestones
KEY MILESTONES Mr. Keshavlal Since Setting up of the In August 2008, Commissioned a The company In April the equity Listing of Equity Commissioned a Bodani founded commencement, Export-oriented controlling stake of dedicated acquired business shareholders of shares on Specialty Aroma Oriental the co
Slide 10: Manufacturing Facilities
MANUFACTURING FACILITIES BAREILLY, UTTAR PRADESH VADODARA, GUJARAT AMBERNATH, MAHARASHTRA • First Synthetic Camphor plant in India with • The-state-of-the-art manufacturing aroma • This state-of-the-art manufacturing facility has technology from DuPont of USA in 1964. chemicals facility was set up a
Slide 11: Future Capex
FUTURE CAPEX HYDROGENATION PLANT, VADODARA MAHAD CAPEX , MAHAD The company has a planned capital expenditure of ~INR 3,500- INR 4,000 Mn for the next 3-5 years. EXPECTED YEAR OF CAPEX DETAIL LOCATION PRODUCT EXPECTED INVESTMENT COMMISSIONING Hydrogenation Plant Vadodara Specialty Aroma Chemicals ~IN
Slide 12: R&D Set Up
R&D SET UP CENTRE FOR INNOVATION AT MUMBAI • State of the art synthesis lab • DSIR approved lab • Dedicated to research on generic specialty aroma ingredients in a sustainable way • Between 20-25 research associates • Head-space GC-MS, Flash chromatography, UV along with regular analytical set-up, W
Slide 13: Key Strengths
KEY STRENGTHS ESTABLISHED PLAYER VAST PRODUCT RANGE INFRASTRUCTURE SUSTAINIBILITY • 6 decades of experience in • The company’s vast product • Fosters excellence through • Adopted a sustainable sourcing Aroma Chemicals and 7 decades range finds applications in array innovation and gives utmost policy
Slide 14: Business Overview
BUSINESS OVERVIEW
Slide 15: Business Mix
BUSINESS MIX SPECIALTY AROMA CAMPHOR & TERPENE FLAVOURS FRAGRANCES INGREDIENTS CHEMICALS 14
Slide 16: Pine Based Aroma Chemicals Manufacturing
PINE BASED AROMA CHEMICALS MANUFACTURING PINE TREES TAPPING DISTILLATION PROCESS Gum Resin Heavy Oil Gum Turpentine Oil (GTO) Residue (70%) (15%) (10%) (5%) Terpinyl Isobornnyl Camphene Pineoils Capinone Terpineol Dipentine Isoborneol Ketone 101 Acetate Perf. Acetate Isobornyl Acetate Camphor 15
Slide 17: Aroma Chemicals Industry Overview
AROMA CHEMICALS INDUSTRY OVERVIEW • The global aroma chemicals market size was valued at USD 5.35 billion in 2021 and is expected to expand at 4.1% CAGR to reach USD 7.7 billion in 2030. • The demand for the product is anticipated to be driven by increased consumption of flavours and fragrance produ
Slide 18: Aroma Chemicals
AROMA CHEMICALS Every aroma has a specific need and a unique characteristic. Whether it’s going to be used to mask, mimic or maximise a taste or smell, is key. Each aroma molecule can be adapted to suit a variety of products and offer their own signature fragrance. After all, an aroma of a product i
Slide 19: Camphor
CAMPHOR OAL is one of the prominent manufacturers of Camphor in India. Camphor is a waxy, flammable, white or transparent solid with a strong aroma. It can be produced from alpha-pinene, which is abundant in the oils of coniferous trees and can be distilled from turpentine produced as a side product
Slide 20: Flavours & Fragrance Industry Overview
F L A V O U R S & F R A G R A N C E I N D U S T R Y OVERVIEW • The global flavours and fragrances market was valued at USD 29.15 Billion in 2022 and is expected to reach USD 44.6 Billion by 2027, at 5.4% CAGR. • APAC dominated the global industry in 2022 and accounted for the highest share of more t
Slide 21: Fragrance Compounds
FRAGRANCE COMPOUNDS A Fragrance compound, also known as an odorant, aroma, is a chemical compound that has a smell or Oduor. Perfume is described as having three sets of notes, making the harmonious scent accord. The notes unfold over time, with the immediate impression of the top note leading to th
Slide 22: Flavour Compounds
FLAVOUR COMPOUNDS Flavour is the sensory impression of food or other substance and is determined primarily by the chemical senses of taste and smell. Smell is the main determinant of a food item's flavour. While only five basic tastes - sweet, sour, bitter, salty and umami (savory) are universally r
Slide 23: Facts of Fragrances and Flavours
FACTS OF FRAGRANCES AND FLAVOURS Studies show that 75% of emotions The sense of smell is the first of all are triggered by smell which is linked our senses to develop. Even before to pleasure, well-being, emotion and we are born, our sense of smell is memory – handy when you want fully formed and fu
Slide 24: Strategic Overview
STRATEGIC OVERVIEW Committed to be a global Increased focus on high To focus on sustainable One of its kind automated player in the specialty value - low volume chemistry and always Multi- Purpose Plant in aroma chemical space products environmentally India for specialty aroma compliant chemicals Fo
Slide 25: Financial Overview
24 FINANCIAL OVERVIEW
Slide 26: Historical Standalone Income Statement
HISTORICAL STANDALONE INCOME STATEMENT INCOME STATEMENT (MN) FY21 FY22 FY23 9M-FY24 Total Operational Income 7,088 8,688 8,491 6,199 Total Expenses 5,532 7,753 7,940 5,936 EBITDA 1,556 935 551 263 EBITDA Margins (%) 21.95% 10.76% 6.49% 4.24% Other Income 18 44 58 55 Depreciation 175 170 193 146 Fina
Slide 27: Historical Standalone Balance Sheet
HISTORICAL STANDALONE BALANCE SHEET LIABILITIES (INR MN) FY22 FY23 H1-FY24 ASSETS (INR MN) FY22 FY23 H1-FY24 Shareholders Fund Assets Share Capital 168 168 168 Non-Current Assets Property, Plant and Equipment 2,076 2,089 2,043 Other Equity 5,893 6,099 6,048 Intangible Asset 24 47 48 Capital WIP 210
Slide 28: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (MN) FY21 FY22 FY23 9M-FY24 Total Operational Income 7,088 8,688 8,491 6,199 Total Expenses 5,537 7,763 7,949 5,939 EBITDA 1,551 925 542 260 EBITDA Margins (%) 21.88% 10.65% 6.38% 4.19% Other Income 17 44 57 55 Depreciation 175 170 194 147 Fi
Slide 29: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET LIABILITIES (INR MN) FY22 FY23 H1-FY24 ASSETS (INR MN) FY22 FY23 H1-FY24 Shareholders Fund Assets Share Capital 168 168 168 Non-Current Assets Other Equity 5,884 6,081 6,028 Property, Plant and Equipment 2,079 2,091 2,045 Goodwill on Amalgamation 450 450 450 Non
Slide 30: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE REVENUE FROM OPERATIONS (INR MN) EBITDA (INR Mn) & EBITDA MARGINS (%) PAT (INR Mn) & PAT MARGINS (%) 21.88% 25.00% 14.38% 8,688 8,491 7,088 20.00% 6,199 1,019 15.00% 10.65% 6.13% 10.00% 6.38% 4.19% 2.32% 5.00% 533 1,551 925 542 260 197 -0.16% 0.00% -10 FY21 FY22 FY
Slide 31: Capital Market Information
CAPITAL MARKET INFORMATION STOCK PERFORMANCE (AS ON 31ST DECEMBER, 2023) 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 OAL Sensex PRICE DATA (AS ON 31ST DECEMBER, 2023) INR SHAREHOLDING PATTERN
Slide 32: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Oriental Aromatics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 33: Thank you
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