Pcbl Chemical Limited · NSE:PCBL
Pcbl Chemical — Phillips Carbon Black — RPSG Virtual Investor Conference 2021
31 slides from Pcbl Chemical's conference presentation, Nov 18, 2021
Slide 1: Intimation of Investor Presentation
� � RP-SanjlvGoenka r� Group Growing l•�•clea Phillips Carbon Black Umlted 18th November, 2021 The Manager, The General Manager, Listing Department, Department of Corporate Services, National Stock Exchange oflndia Ltd, BSE Ltd, Exchange Plaza, 1st Floor, New Trading Ring, Plot No. -C-1, G Block, Ro
Slide 2: A trusted global player providing cutting edge solutions
A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 3: Disclaimer
Disclaimer This presentation (“Presentation”) does not constitute a prospectus, offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation is for informational purposes only and is not a solicitation of any bid from any investor. Nothing in
Slide 4: Table of Contents
Table of Contents 1 Company Overview 04 2 Key Highlights 11 3 Growth Strategies 23 4 Appendix 25 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People 3
Slide 5: Company Overview
Se BP-Sanjijcoenka y| p> Group y Growing Legacies Phillips Carbon Black Limited Company Overview
Slide 6: RP - Sanjiv Goenka Group
RP - Sanjiv Goenka Group A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 7: Company Overview
Company Overview Overview Key Metrics • PCBL (“Company”) is the largest manufacturer(1)(2) of Carbon Black in India with a wide product portfolio having customized offerings for applications in tyres, performance chemicals, and specialty chemicals • Largest domestically by capacity(1)(3) and 7th lar
Slide 8: Multiple End Uses of Carbon Black
Multiple End Uses of Carbon Black Applications Product Use Segmentation Performance Specialty Tyres Chemicals Chemicals Extruded Profile, Injection Moulding, Engineering Inks, Paints & Batteries & Industrial Hoses, Insulation, Agri. Plastics, Food Cables and Fibers Others Coatings Conductive Conveyo
Slide 9: Key Milestones
Key Milestones 14 KT R&D Centre 603 KT Total Capacity(1) in India(2) & Belgium(3) Total Capacity 1960 2004 2009 2013 2018 2019 2021 Durgapur 270 KT Mundra Kochi Debottlenecking Mundra Palej Total Capacity Expansion at all Plants Expansion Expansion (Durgapur, Palej and Kochi) Green Power Plant Capac
Slide 10: Transformation Journey
Transformation Journey 7 Business Themes ENVIRONMENT, SOCIETY BUSINESS AND GOVERNANCE LEADERSHIP VISION A trusted Global player providing cutting edge solutions to our CUSTOMER R&D AND CENTRICITY Partners and an exciting INNOVATION Financial Performance Profit Before Tax (PBT) Return ratios (ROCE ,
Slide 11: Experienced Board of Directors & Leadership Team
Experienced Board of Directors & Leadership Team Board of Directors Leadership Team SANJIV GOENKA KAUSHIK ROY PREETI GOENKA SHASHWAT GOENKA RAJ KUMAR GUPTA Chairman Managing Director Director Director Chief Financial Officer (CFO) PARAS K CHOWDHARY PRADIP ROY RUSHA MITRA R K AGARWAL T C SUSEEL KUMAR
Slide 12: Key Highlights
=". RP-Sanjiv Goenka = y| p> Group Growing Legacies Phillips Carbon Black Limited Key Highlights
Slide 13: Key Highlights
Key Highlights 1 Leadership Position in Carbon Black in India, with A Strong Global Footprint 2 Strategically Located Manufacturing Facilities with Planned Capacity Expansions 3 Strong Focus on R&D for Expansion of High Margin Product Portfolio 4 High ESG Commitment 5 Robust Financial Performance 6
Slide 14: Leadership Position in Carbon Black in India, with a Strong Global Footprint
1 Leadership Position in Carbon Black in India, with a Strong Global Footprint Largest Carbon Black Company in India(1) 7th Largest carbon black company globally(1)(3) Company Domestic Capacity(2) (KTPA) Phillips Carbon Black 603 Birla Carbon India 315 Presence across 45+ countries Himadri Specialty
Slide 15: Strategically Located Manufacturing Facilities with Planned Capacity Expansions (1/3)
2 Strategically Located Manufacturing Facilities with Planned Capacity Expansions (1/3) Key Features Mundra, Gujarat Durgapur, West Bengal Carbon Black: 205 KT Carbon Black: 163 KT Green Power: 32 MW 1 Easy access to raw materials and international customers with proximity to ports Green Power: 30 M
Slide 16: Strategically Located Manufacturing Facilities with Planned Capacity Expansions (2/3)
2 Strategically Located Manufacturing Facilities with Planned Capacity Expansions (2/3) Greenfield Expansion in Tiruvallur (SIPCOT Industrial Park), Tamil Nadu Andhra Krishnapatnam Pradesh Port Tiruvallur Carbon Black Capacity of 147 KT Power Capacity of 24 MW (Green Power) Ennore Port Tamil Nadu Ta
Slide 17: Strategically Located Manufacturing Facilities with Planned Capacity Expansions (3/3)
2 Strategically Located Manufacturing Facilities with Planned Capacity Expansions (3/3) Brownfield Expansion at Mundra plant, Gujarat Estimated Specialty Chemical Capacity of 40 KT Capacity expansion planned in two phases Targeting Phase I commercial Estimated Project Cost of c.INR 320 Cr production
Slide 18: Strong Focus on R&D for Expansion of High Margin Product Portfolio (1/2)
3 Strong Focus on R&D for Expansion of High Margin Product Portfolio (1/2) R&D Infrastructure 40+ scientists & technical professionals in R&D and process technology Sushila Goenka R&D Centre at Palej and Innovation Centre in Belgium, Europe Focus on improvement of process & machine technology, yield
Slide 19: Strong Focus on R&D for Expansion of High Margin Product Portfolio (2/2)
3 Strong Focus on R&D for Expansion of High Margin Product Portfolio (2/2) Increasing Contribution from High Margin Specialty & Performance Chemicals Portfolio Sales Volume Split By Segment EBITDA(1)(3) (INR Cr) 8.8% 16.6% 19.8% 1% 4% 6% 526 24% 26% 29% 424 218 75% 70% 65% (2) FY15 FY18 FY21 FY15 FY
Slide 20: High ESG Commitment
4 High ESG Commitment ESG Practices & Initiatives Committed to environment sustainability across business operations to Initiatives such as energy management, water management, emission ensure that resources are recycled and utilized judiciously management, effluent management, rain water harves
Slide 21: Robust Financial Performance
5 Robust Financial Performance Strong Focus on Expansion of Value Added High Margin Products Has Lead To Significant Improvement in Profitability Gross Capacity (KT) EBITDA (INR Cr) EBITDA / MT (INR) 13,508 603 8.8% 16.6% 19.8% 526 10,550 515 472 424 6,951 218 FY15 FY18 FY21 FY15 FY18 FY21* FY15 FY1
Slide 22: Favourable Tailwinds & Opportunities (1/3)
6 Favourable Tailwinds & Opportunities (1/3) Indian Tyre Industry Growth and Key Drivers(1) Indian Tyre Market Growth(2) Expected recovery in economic Stable replacement market activity 5.5% 6.8% Normal monsoons supporting stable Increase in the pace and extent of rural cash flows vaccination progra
Slide 23: Favourable Tailwinds & Opportunities (2/3)
6 Favourable Tailwinds & Opportunities (2/3) Companies Across the World are Increasingly Adopting “China + 1” Strategy “China + 1” is a business strategy that avoids overinvesting in one country i.e. China, and promote diversification of business in other countries. This is majorly adopted by many m
Slide 24: Favourable Tailwinds & Opportunities (3/3)
6 Favourable Tailwinds & Opportunities (3/3) World Carbon Black Demand (KT) & Increasing Production Market Share of India(1) 15,380 16,050 16,675 13,609 13,407 13,800 14,750 12,452 2018 2019 2020 2021E 2022E 2023E 2024E 2025E India Production Market Share(2) (%) 10% 11% 12% 12% 13% 14% 15% 15% India
Slide 25: Growth Strategies
=". RP-Sanjiv Goenka = y| p> Group Growing Legacies Phillips Carbon Black Limited Growth Strategies
Slide 26: Growth Strategies
Growth Strategies Developing new specialty chemicals Greenfield expansion project (in Performance grades progress) in Tamil Nadu with a Capacity & Specialty Moving up the value chain in rubber capacity of 147 KT – smart factory as Addition Chemicals grades per Industry 4.0 standards Customiz
Slide 27: Appendix
=". RP-Sanjiv Goenka “yj \ Group Growing Legacies Phillips Carbon Black Limited Appendix
Slide 28: P&L Snapshot
P&L Snapshot (All amounts in INR Cr) FY19 FY20 FY21 Income: Revenue from operations 3,528.6 3,243.5 2,659.5 Other income 19.9 29.0 18.0 Total Income 3,548.5 3,272.6 2,677.5 Expenses: Cost of materials consumed 2,352.0 2,185.7 1,582.7 Changes in inventories of finished goods (55.4) 3.8 26.2 Employee
Slide 29: Key Awards
Key Awards 2004 • Top Export Award (Raw Material Sector) by AIRIA • Top Export Award (Raw Material Sector) by AIRIA • Best environmental practices for substantial and 2013 2017 sustained efforts in pollution control for PCBL Kochi (large • 'Best Supplier Award' by Fenner for PCBL • Bluedart Global C
Slide 30: Glossary
Glossary Term Description Term Description AIRIA All India Rubber Industries Association IGBC Indian Green Building Council CAGR Compounded Annual Growth Rate ISO International Organization for Standardisation CBFS Carbon Black Feed Stock IT Information Technology CDP Carbon Disclosure Project KLPD
Slide 31: Thank You
THANK YOU A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People 30
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