Kei Industries Limited · NSE:KEI
Kei Industries — Investor Presentation (August 2023)
40 slides from Kei Industries's investor presentation, August 2023
Slide 1: KEI Industries Limited Corporate Presentation
KEI INDUSTRIES LIMITED Corporate Presentation June,23 1
Slide 2: Agenda
Agenda Company Overview 1 Company Strengths 2 3 Growth Strategy 4 Industry Prospects 5 Strengthening Brand Recognition 6 Key Financials 7 Appendix 2
Slide 3: Company Overview
Company Overview Overview Key Metrics Leading manufacturer of cables and wires with a wide product ISO 9001:2015 1,700+ 2,000+ portfolio spread across ISO 14001:2015 Institutional ISO 45001:2018 Employees1 Customers1 o EHV, HT and LT Power Cables, House Wire, Stainless Steel Wire Forward integra
Slide 4: Major Highlights
Major Highlights ET 500 2022 KEI ranking is 289. During FY 2019-20, Company has raised fund Rs. 500 Crore through QIP. India Ratings and Research Private Limited has affirmed its long term ratings as AA (with positive outlook). ICRA and CARE long term rating is AA (Stable). Short term rating f
Slide 5: Consistently Evolving Business Model
Consistently Evolving Business Model Focus has been on expanding product portfolio De-risking business by increasing diversification Switch Entry into PVC EHV4 Cables New project – board cables power cable up SSW1 plant at Rubber Cables commercial EHV4 400 KV HW5 Plant at HT3 Cables (33 for DOT
Slide 6: Richly Experienced Management Team
Richly Experienced Management Team Mr. Akshit Diviaj Gupta Mrs. Archana Gupta Director Director Mr. Manoj Kakkar Executive Director (Sales & Marketing) Mr. Rajeev Gupta Executive Director (Finance) & CFO Mr. Anil Gupta Chairman-cum-Managing Director Mr. Lalit Sharma Mr. Manish Mantri COO Sr. Vice Pr
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Wide product basket comprising: Extra-High Voltage Cables up to 400 KV High & Medium Voltage Cables HT cables LT cables Control Cables EHV cables Control & Instrumentation Cables Specialty Cables Submersible Cables Rubber Cables Solar Cables PVC/Poly W
Slide 8: Company Strengths
Company Strengths Well diversified across multiple dimensions 1 Wide basket of products used across multiple industries Low customer concentration 2 Strategically located manufacturing facilities and Strong R&D capabilities Manufacturing facilities across 7 locations Strong R&D focus helps in new pr
Slide 9: Well Diversified across Multiple Dimensions
Well Diversified across Multiple Dimensions Wide Product Basket… …With applications across Industries Others, 0% EPC, 6% EHV, 5% SSW, 4% Real Estate HW, WW, Oil & Gas 27% LT Power, 41% Power Cement Cable & Wires HT Cable, 17% Business (90%) Railways Fertlisers FY231 …Coupled with low customer concen
Slide 10: Strategically located manufacturing facilities & Strong R&D capabilities
Strategically located manufacturing facilities & Strong R&D capabilities Plant Locations and Key Capacities Plant Location Start Date Capacity (As of 30th June, 23) Cable – 54,800 Kms Chopanki Bhiwadi 1996 House Wire/WW – 190,000 Kms Bhiwadi Stainless Steel Wire – 9,000 MT Pathredi Cable – 3
Slide 11: Strategically located manufacturing facilities and Strong R&D capabilities
…. Strategically located manufacturing facilities and Strong R&D capabilities Pathredi Plant Bhiwadi Plant Chopanki Plant Adherence to the most stringent quality standards laid down by KEI Our products are tested by KEMA (The Netherlands), TUV (Rheinland), SGS, IRS, ABS, CEIL, BRE (UK), LLOYDS REGIS
Slide 12: Strong presence in retail segment with a well entrenched distribution network
Strong presence in retail segment with a well entrenched distribution network Increasing focus on retail… …With strong distribution network… 41% 44% # of Dealers / # of Marketing Distributors1 Offices1 33% 34% 29% North 654 9 South FY19 FY20 FY21 FY22 FY23 367 7 Retail as a % of sales 2 East 450 6 …
Slide 13: Growing Exports Presence
Growing Exports Presence Export Sales of product and services in last 5 years 18% 20% 15% Exports accounted for 10% of sales in FY23 Exports provide 899 10% 13% 15% natural hedge on forex as the company also imports raw 10% 693 608 585 10% materials 532 5% Strong order book for exports of Rs. 67
Slide 14: Strong Financial Performance
Strong Financial Performance Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR (Cr) 10.6% 10.5% 11.4% 10.5% 10.6% INR (Cr) 477 6,912 INR (Cr) 734 376 5,727 604 255 270 4,884 513 476 182 4,227 449 4,181 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22
Slide 15: Growth Strategy
Growth Strategy Distribution Channel Overseas Retail Business Focus on increasing penetration by further expanding distribution Market Continued focus to increase network Further increase presence in share of retail business in overall sales mix overseas market Capacity Expansion FMEG Market Increas
Slide 16: Industry Prospects
Industry Prospects Economic Factors : In FY 2023-24, India’s GDP is expected to rise by 6.5%. India is growing rapidly and is expected to become a US$ 5 trillion economy by 2025. In these nine years, the Indian economy has increased in size from being 10th to 5th largest in the world. Indian e
Slide 17: Industry Prospects
Industry Prospects Power and cable Sectors: Expansion in industrial activity to boost cable demand for electricity. India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 417.66 GW as of May 31, 2023. The Central Electricity Authority (CEA)
Slide 18: Industry Prospects
Industry Prospects Real State Sectors: Government of India’s Housing for All initiative is expected to bring US$ 1.3 trillion investment in the housing sector by 2025. Real estate sector in India is expected to reach US$1 trillion by 2030. By 2025, it will contribute 13% to the country’s GDP.
Slide 19: Industry Prospects
Industry Prospects Infrastructure Sectors: India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion Budget 2023-24, the government has given a massive push to the infrastructure sector by allocating Rs.10 lakh crore (US$ 122.08 billion ) to enhance the i
Slide 20: Industry Prospects
Industry Prospects Manufacturing, Engineering and Capital Goods Sectors: Capacity creation in sectors such as infrastructure, power, mining, oil and gas, refinery, steel, cement automotive and consumer durables is driving demand in the engineering sector. Increase Investment in Indian Manufactur
Slide 21: Strengthening Brand Recognition
Strengthening Brand Recognition Partner 2013-2015 2009-2012 Wires & Cables Specialist Jode Dilon Ke Taar 2016-2017 2019-2020 Har Tension Sahe Chalti Rahe IPL Sponsorship from FY 17 to FY 24 21
Slide 22: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of Branding Activities Bus Branding Hoarding Katra Railway Station Meet & Greet RCB Delhi 22
Slide 23: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of Sports Sponsorship Activities Title Sponsorship of Real Tamil Thalaivas- Pro India Vs Bangladesh Kabaddi League Kabaddi League Series On ground Activations Jersey Sponsorships Digital Amplifications 23
Slide 24: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of IPL Sponsorship Activities 24
Slide 25: Strengthening Brand Recognition
…Strengthening Strengthening Brand Recognition Entering into New Digital Marketing Era Launched Brand Film on Digital platforms KEI’s contribution in India’s growth story- 'Desh Ko Aage le Jane wala Raaz' • Collaboration with OTT platforms Sony Liv, Zee5, Hotstar, MX Player Presence over the shows l
Slide 26: Strengthening Brand Recognition
…Strengthening Strengthening Brand Recognition BTL Activations to Augment Credibility • Inside Metro Station Branding with DMRC. • Extensive Participation in Events & Exhibitions (Domestic & International). • Marked presence through outdoor campaigns. • Participation in events and exhibitions Extens
Slide 27: Strengthening Brand Recognition
…Strengthening Strengthening Brand Recognition Collaborated with NIC & National/Regional Police Personnel To deliver the message of safety to children, with utmost conviction, we invited Senior Personnel from NIC & Police Department to share their valuable tips and knowledge about Online & Offline S
Slide 28: ..and strengthening it further using multi pronged approach
..and strengthening it further using multi pronged approach Advertisement and Publicity Expenses (in cr) 28 22 Association with Rajasthan royals in past and amplification Via digital presence Meeting with Channel Partners KEI marked presence though outdoor campaigns Participation in events a
Slide 29: New Connecting App
… New Connecting App Our online platforms ‘KEI Supply Beam’ and ‘KEI Connect’ (an end-to-end channel management software that enables better decisions, speed and efficiency) keep us connected with ‘Kutumb’. KEI Supply Beam for dealers/distributors. KEI Connect for retailers/electricians 29
Slide 30: Summary Financials (Standalone)
Summary Financials (Standalone) Summary of Financials ` in Crore Particulars FY 18 FY 19 FY 20 FY 21 FY 22* FY23 Net Sales 3,446 4,227 4,884 4,181 5,727 6,912 EBITDA 348 449 513 476 604 734 PBT 204 279 327 360 508 642 PAT 145 182 255 270 376 477 Net Fixed Assets 430 520 565 544 547 582 Net Worth 605
Slide 31: Summary Financials (Standalone)
Summary Financials (Standalone) Quarterly Summary of Profit & Loss ` in Crore Particulars FY 22-Q1* FY 22-Q2* FY 22-Q3* FY 22-Q4* FY 23-Q1 FY 23-Q2 FY 23-Q3 FY 23-Q4 FY 24-Q1 Net Revenue 1018 1353 1564 1792 1565 1608 1784 1955 1783 PBDIT 116 149 159 180 163 166 196 209 187 PBT 91 125 136 156 140 144
Slide 32: Summary Financials (Product and segment wise)
Summary Financials (Product and segment wise) ` in Crore Particulars FY 21 FY 22 FY 23 FY23-Q1 FY23-Q2 FY23-Q3 FY23-Q4 FY24-Q1 Domestic 2,170 2,890 3,200 663 711 854 972 688 Dealer 1,408 2,319 3,030 652 760 796 822 796 Export 608 585 693 247 139 143 164 307 Net of Ind AS & other -5 -67 -11 3 -2 -9 -
Slide 33: Financial Performance Q-1 FY24 Highlights
Financial Performance Q-1 FY 24 Highlights % % R E VE NU E ( ` IN CROR E ) EBITDA ( ` IN CRORE) PAT ( ` IN CROR E ) 7.07 10.69 10.47 6.81 6.63 10.42 138 1955 209 121 1783 187 104 1565 163 14.37% 10.67% 13.87% 8.80% 16.99% 12.11% YoY QoQ YoY QoQ YoY QoQ Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24
Slide 34: Balance Sheet (Standalone)
Balance Sheet ( Standalone) ` in Crore ASSETS FY 24 Q-1 FY 23 FY 22* EQUITY AND LIABILITIES FY 24 Q-1 FY 23 FY 22* Non-Current Assets Equity Fixed Assets 678.72 581.88 547.41 Equity Share Capital 18.04 18.04 18.02 other Non Current Assets 34.79 26.94 18.58 Other Equity 2,695.51 2,570.97 2,117.30 Tot
Slide 35: Shareholding
Shareholding Shareholding Pattern Key Institutional Investors (as of 30th June, 2023) (as of 30th June, 2023) Public and Name of Shareholder % Holding other & other, Smallcap World Fund, INC 3.68% 15.68% Canara Robecco Mutual Fund A/C Canara Promoter, 2.46% 37.10% Robecco Value Fund DII, 19.55% Fran
Slide 36: Our Social Responsibility – Partnering for Community Resilience
Our Social Responsibility – Partnering for Community Resilience Our CSR initiatives span across several critical areas of human progress, including healthcare, hunger and poverty eradication, education, environmental sustainability and sports promotion. Tata Community Initiative Trust - The Company
Slide 37: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience This year, we integrated all the elements from our past activities of Jyoti Series & added the new ones to give our activity a 360 degree approach. The Target Group was directly reached out through Physical Events at Government schools
Slide 38: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience Jeevan Jyoti - A Skill Development Program to nurture the head, heart and skills of the Kids of Electricians. Amount spent on CSR ( ` in Crore) Particulars FY 22 FY23 Promoting education 1.77 5.61 Promoting Healthcare Including Prevent
Slide 39: Environmental, Social and Governance
Environmental, Social and Governance Committed to provide environmentally safe and socially responsible workplace Environment Use of Renewable Energy to reduce carbon footprint (Reduce GHG emissions) Zero Discharge facility at all the units (Water Conservation) Rainwater Harvesting (Water Cons
Slide 40: Contact us
A hed Wires 3 Cables CIN: L74899DL1992PLC051527 Contact us For investor relations: cs@kei-ind.com Website: www.kei-ind.com GHAR KI ® WIRING, wIGGEST