Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Investor Presentation (March 2021)
33 slides from Star Cement's investor presentation, March 2021
Slide 1: Covering letter to stock exchanges
Date: 02.08.2021 The Listing Department, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G Bandra Kurla complex, Bandra-East Mumbai-400 051 Stock code: STARCEMENT BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 Stock code: 540575 Dear Sir, Subject: Investor Pres
Slide 2: Star Cement Limited Investor Presentation
Star Cement Limited (SCL) Investor Presentation Cementing growth. Branding success. BSE Scrip code: 540575 NSE Scrip code: STARCEMENT March 2021
Slide 3: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
Slide 4: The Birth of a Star
The Birth of a Star 2001 The Star was born 2005 Operations commenced Largest Cement manufacturer in NER Largest Private Sector Investment in North Bengal Emerging market player In Eastern India (WB & Bihar) Strategically located Cement Manufacturing Facilities Cement Business operates
Slide 5: We are expanding the growth horizon and creating a differential
From North GrowthEast to East to Efficiencies From Commodity to Brand From Leveraged to Debt-Free From Capacities to Capabilities We are expanding the growth horizon and creating a differential. 03
Slide 6: Counting the Stars
Counting the Stars ₹ 2,225+ ₹ 1720 Crores Crores Largest private Revenue from sector investment operations in in North Eastern Region FY 2020 -21 (NER) $ Highest Market share in NER – biggest pie in the region 10 States Presence $ ~ ₹ 513+ Crores Cash and Cash equivalents $ NER – North Eastern Regio
Slide 7: The Star Bandwidth
The Star Bandwidth 32.89% 67.11% Public Star Cement Ltd. (‘SCL’) Promoters 100% 100% 87.49% 12.51% Megha Technical & Engineers Star Cement Meghalaya Ltd. Meghalaya Power Ltd. Pvt. Ltd. (‘MTEPL’) (‘SCML’) (‘MPL’) 05
Slide 8: Strong NER Roots
Strong NER Roots Promoters have strong links with NER - a crucial factor behind SCL’s success Mr. Sajjan Bhajanka, Mr. Rajendra Mr. Sanjay Agarwal, Mr. Prem Kumar Chamaria, Bhajanka, Chairman & Managing Managing Director Director Vice Chairman & Director Managing Director Experience Experience Gradu
Slide 9: Professional Management
Professional Management Key Management personnel running the organization in a very professional manner Mr. Pankaj Kejriwal, Mr. Sanjay Kr. Gupta, Mr. Manoj Agarwal, Mr. G.M. Krishna, Director Chief Executive Officer Chief Financial Officer Chief Manufacturing Officer Education Education & Experienc
Slide 10: Journey of a Star
Journey of a Star Cumulative capacities at the end of financial years Clinker (MMT) FY 10-11 FY 18-19 FY 04-05 FY 07-08 0.80 FY 12-13 2.80 0.40 0.60 2.60 Cement (MMT) FY 04-05 FY 07-08 FY 10-11 FY 12-13 FY 20-21 1.06 FY 15-16 FY 16-17 0.40 1.27 3.00 5.70 3.70 4.30 FY 12-13 FY 14-15 Power (MW) FY 09-
Slide 11: What Makes Star Cement Tick?
What Makes Star Cement Tick? Dependable Strategic Location, Well-established Adequate plant raw material Beneficiaries of brand in NER with Proximity to Raw capacities to cater source and easy fiscal incentives strong consumer Materials & Market to the market availability of focus in WB & BH power S
Slide 12: Location Advantage: The Game Changer
Location Advantage: The Game Changer Arunachal Pradesh Sikkim Itanagar Gangtok 110 kms Siliguri Dispur Assam Nagaland (Guwahati) 220 km Kohima Patna Shillong Our strategically located Bihar Meghalaya plants cater to the Imphal Eastern & North Eastern Manipur Regions, giving us strong customer Aizawl
Slide 13: The Star Logistics Edge
The Star Logistics Edge Limestone mines are located within 2-3 kms of our plants, providing strong raw material linkage, easy accessibility and uninterrupted supply of raw material When compared to peers, our strategically located plants cater to the Eastern & North Eastern Regions, helping us o
Slide 14: The Star Logistics Edge
The Star Logistics Edge Untapped NER and Eastern markets have strong potential for further growth Over the last few years, cement arrivals in NER from mainland players has come down to 20% from 30% - owing to strong location advantage for the existing players in NER Strong entry barriers for n
Slide 15: The Star Fiscal Edge: Financial Incentives
The Star Fiscal Edge: Financial Incentives SCL’s plants enjoy the following fiscal benefits granted by the Government Exemption Balance Exemption period** SCML SCL-GGU SCL-LMS MPL 100% under Section 80 Income Tax IE, subject to MAT ≈ 1 year ≈ 1 year - ≈ 2 year IGST / CGST on Clinker 29% / 58% ≈ 2 ye
Slide 16: The Mark of a Star: Branding Success
The Mark of a Star: Branding Success For Star, cement is not merely a commodity and therefore, we do not sell cement, rather we build and sell brands Star as a Brand have a very high recall value, enabling repeat customers Star Cement is the most preferred brand in NER and is witnessing consis
Slide 17: Awards and Accolades
Awards and Accolades Supply Chain & Logistics Award for the highest Award for ”Best Practices in Award for ‘Most preferred Excellence (SCALE) Award Corporate Tax Payer (Non- Employee Engagement“- Cement brand’ for 5 years 2020 - Confederation of Indian PSUs) in NER in one of our National HRD Network
Slide 18: The Star Shines Bright and Strong
The Star Shines Bright and Strong Enjoys a leadership position in the North East with market share of more than 23% Gradually increasing share in the Eastern region through concerted efforts Strong dealer and distributor network built over the years, steering year-on-year growth, enabling lead
Slide 19: Marketing the Star Brand
Marketing the Star Brand Innovative strategy, large distribution network, pioneering initiatives Pioneers in initiating distribution through direct network, i.e. Dealers rather than C&F agents in NER Building the Brand aggressively and innovatively in the markets of West Bengal & Bihar Consume
Slide 20: Hain Tayyar Hum Campaign Launch
Hain Tayyar Hum Campaign Launch Very aggressive and comprehensive 360° campaign in NER, WB & BH involving masses in To OOH, TVC, Radio & Press 18
Slide 21: Marketing the Star Brand
Marketing the Star Brand Innovative strategy, large distribution network, digital initiatives Technical assistance to retail consumers to ensure better connect - drives demand and builds brand confidence Value-enhancing technical marketing for customers On-site technical support to customers thr
Slide 22: Retail-driven Marketing strategy
Retail-driven Marketing strategy Distribution Network Distribution network spread across 10 states Retailers >12,000 While our peers adopted the wholesaler model, we have built on our strong network Dealers >2,100 of partners over the last decade ROBUST DEALER NETWORK SPLIT The result – Deeper
Slide 23: Opportunities Beckon… and Star's Journey Continues
Opportunities Beckon… and Star’s Journey Continues 21
Slide 24: East India: Huge Untapped Potential
East India: Huge Untapped Potential Installed Capacity and Capacity Utilization - East 140 80% 120 75% 71% 75% 100 69% 68% 70% 80 67% 65% 60 63% 65% 40 70 81 88 91 100 111 119 60% 20 0 55% 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21E 2021-22P Installed Capacity Utilization Rate * Source : CRISIL
Slide 25: East India: Huge Untapped Potential
East India: Huge Untapped Potential Per capita cement consumption in East is the lowest, Per Capita cement thus underlining huge potential for growth consumption (kgs) North Housing shortage in Urban India - Of the total housing Housing shortage shortages in urban India, East alone contributes to 35
Slide 26: North East Region: An Expanding Opportunity Landscape
North East Region: An Expanding Opportunity Landscape 8 states with abundant Separate Ministry for the Region – Natural Resources Doner (Development of North Eastern Region) to Limestone, Coal, Dolomite, Quartz, Granite, Sandstone, Shale boost development Central government’s infrastructure developm
Slide 27: North East Region: Opportunities Galore
North East Region: Opportunities Galore 12 11 11.3 11.3 11.3 11.3 11.3 11.3 Five-year 2007- 2012- 2017- 10 10.1 Plans 2012 2017 2022 10 9 9.4 8.8 NER Effective 7.9 Cement 8 7 7 7.1 7.2 Capacity (Mn 6.3 6.6 Tons) NER GDP 5.8 6.0 10% 13.7% 16.4% 6 5.4 Growth NER Cement 4 Demand (Mn Tons) NER Per 2 Cap
Slide 28: The Star is Set to Shine Brighter: More Frontiers of Growth
The Star is Set to Shine Brighter: More Frontiers of Growth Further growth in high potential areas by leveraging operational and financial efficiencies Seize the growth opportunities in NER, Eastern Region – partner the government's initiatives to boost infrastructure Strengthen and expand dea
Slide 29: The Numbers Speak: Successful Financial Track Record
The Numbers Speak: Successful Financial Track Record In ₹ Crores 2017-18 2018-19 2019-20 2020-21 Q4 FY 19-20 Q4 FY 20-21 Net Operating Revenue 1,629 1,826 1,841 1720 549 603 C O N S O L I D AT E D F I N A N C I A L S EBIDTA before exceptional item 526 455 424 361 132 113 EBIDTA Margin (%) 32.56% 24.
Slide 30: Performance Anatomy
Performance Anatomy Net Revenue (₹ Crs) PAT (₹ Crs) Raw Material Consumption (₹/t) -1% +10% +41% 603 1533 549 86 1090 85 Q4 FY 19-20 Q4 FY 20-21 Q4 FY 19-20 Q4 FY 20-21 Q4 FY 19-20 Q4 FY 20-21 • Increase in freight of Clinker because of collapse of the Shillong Bypass Bridge. 06 28
Slide 31: CSR- Assam, Meghalaya & Bengal
CSR- Assam, Meghalaya & Bengal HEALTH & SANITATION Distribution of potable water to Lumshnong, Brichrnyot and Umsahi is going on as per scheduled time frame. Garbage collection from Umsohi & Lumshnong village under Waste Management Project. Construction Public toilet block at Rahut Bagan, Mohi
Slide 32: CSR- Assam, Meghalaya & Bengal
CSR- Assam, Meghalaya & Bengal EDUCATION An additional class room of Khliehriat East U.P. & L.P. School is under construction. The Brichyrnot Village school bus is benefiting 43 students of Brichyrnot and Pandere village. On-line Art & Dance classes have been continuing at Kala Mandir- Mohitna
Slide 33: Thank You
THANK YOU Mr. Sanjay Kr. Gupta investors@starcement.co.in www.starcement.co.in 31