Maharashtra Seamless Limited · NSE:MAHSEAMLES
Maharashtra Seamless — Investor Presentation (August 2011)
28 slides from Maharashtra Seamless's investor presentation, August 2011
Slide 1: Corporate Presentation
Corporate Presentation “Explore the true potential” MAHARASHTRA SEAMLESS LTD August 2011
Slide 2: Forward Looking & Disclaimer Statement
FORWARD LOOKING & DISCLAIMER STATEMENT This Investor Communique contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, prediction or similar expression for the future are forward
Slide 3: Agenda
Group & Company Overview Pg: 4 to 9 Market & Industry Overview Pg: 10 to 15 Financial Overview Pg: 16 to 18 Awards Pg: 19 to 21 SWOT Analysis & Future Outlook Pg: 22 to 25 Conclusions & Contacts Pg: 26 to 27 3
Slide 4: Group Structure
GROUP STRUCTURE D P Jindal Group Pipes Drilling MSL JPL JDIL One of the largest producer of Jindals embarked into Steel Pipes & Tubes Jindals are pioneer & major contributory business activity long (in both Seamless & ERW) in Growth of Seamless & ERW back in 1952 Pipes & Tubes Industry. JINDAL is a
Slide 5: A Brief About MSL
A BRIEF ABOUT MSL Leading manufacturer of Seamless & ERW Carbon & Alloy Steel Pipes & Tubes in India. A unique track record of putting up the plant at the lowest CAPEX levels. Is an ISO 9001 : 2008 Company and having API (5CT & 5L) and IBR Licenses. Plant is strategically located at Nagothane, about
Slide 6: Major Milestones of MSL
1988 MAJOR Incorporated MILESTONES OF MSL 1991 IPO Launched 1992 7” Seamless Plant Commissioned 1993 API Certification and Production of Casing & Line Pipes 1995 IBR Certification by Central Boiler Board 1996 ISO Certification by BVQI 2000 21” ERW Plant Commissioned 2001 7 MW Wind Power Plant Commis
Slide 7: Installed Capacities
INSTALLED CAPACITIES At Raigad (Maharashtra) 3,50,000 MT p.a. of Seamless Pipes (from 1/2 ” to 14” OD) 2,00,000 MT p.a. of ERW Pipes (from 6” to 20” OD) + External / Internal Coating Facility (from 1” to 48” OD) (2,00,000 MT p.a. of Seamless Pipe Plant is under erection) At Satara (Maharashtra)
Slide 8: Product Accreditation
American Petroleum Institute ee aes onan a eee Ucansa number, SCT-0104.4 PRODUCT ACCREDITION {he Ara on rt ety ar ,P, JINDAL GROUP OF INDUSTRIES (MAHARASHTRA SEAMLESS LTD) i KG Road gt a et ed ett sata ava atin ce PPE Socrates ipa Nagar, Vilage Sukel, NH-17, Dist Raigad Taluka Reha, Maharashtra Ina
Slide 9: Board of Directors
BOARD OF DIRECTORS ¾ Mr. D. P. Jindal Chairman ¾ Mr. Saket Jindal Managing Director ¾ Mr. Sanjeev Rungta Director ¾ Mr. U. C. Agarwal Director ¾ Mr. D. K. Parikh Director ¾ Mr. S. P. Raj Whole-Time Director Mr. Ravi Gupta - CFO 9
Slide 10: An Overview of Indian Pipes & Tubes Industry
AN OVERVIEW OF INDIAN PIPES & TUBES INDUSTRY Types of Size Major Raw Domestic Players Main Application Pipes Material SEAMLESS 1/2” – 14” Round Steel Billets Maharashtra Seamless Wide Application in High Pressure Oil & Indian Seamless Tubes Gas Exploration & Drilling, Boiler, Jindal Saw Automobiles,
Slide 11: Demand Drivers for Indian Pipes & Tubes Industry
DEMAND DRIVERS FOR INDIAN PIPES & TUBES INDUSTRY Pipe Sector Oil & Gas Non-Oil E&P Transport General Water & Sewage Engg., Auto & Transport Boiler Seamless HSAW LSAW ERW Seamless DI / CI HSAW ERW 11
Slide 12: Valued Customers
VALUED CUSTOMERS Oil & Gas Sector Hydraulic Cylinder ONGC, OIL, GAIL, RIL, Indraprasta Gas, UT Ltd., Salzgitter Hydraulic Pvt Ltd., Cairn Energy, Mahanagar Gas Ltd, British Gas (India), Green Gas, Bhagyanagar Gas AMKO Mining & Drilling Hydrocarbon & Process Industry Boiler, Heat Exchanger & Condense
Slide 13: Domestic Market Share of Seamless Pipes
DOMESTIC MARKET SHARE OF SEAMLESS PIPES JINDAL SAW 12% MSL 37% 35% 12% 16% 37% IMPORT 35% ISMT 16% The present Indian Market is approx. 0.7 Million MT p.a. 13
Slide 14: Vendor Registration for MSL by Major Customer
VENDOR REGISTRATION FOR MSL BY MAJOR CUSTOMER Domestic International 9 Sat Joint Operation, Saudi Arabia 9 Oil & Natural Gas Corpn.Ltd. & Kuwait (JV Company of 9 Engineers India Ltd. Chevron, Texaco & KOC) 9 Oil India Ltd. 9 Al-Furat Petroleum Corporation, Syria (JV Company of Shell) 9 Gas Authority
Slide 15: Major Global Seamless Players
MAJOR GLOBAL SEAMLESS PLAYERS Domestic International 9 Maharashtra Seamless Ltd. 9 Tenaris Group, Mexico (Siderca, Tamsa, Dalmine, Tavsa, 9 Indian Seamless Metals Tubes NKK Tubes & Algoma Tubes) 9 Jindal Saw Ltd. 9 Vallourec & Mannesmann, France 9 Remi Metals 9 Volski Tube Mill, Russia 9 OCTL 9 Arce
Slide 16: Financial Position
FINANCIAL POSITION PROFIT & LOSS ACCOUNT EXTRACT (Rs. Million) Description FY07 FY08 FY09 FY10 FY11 Q1 FY12 Audited Audited Audited Audited Audited Declared Sales 15196 16404 21835 16912 18874 5089 Operating Income 0 145 253 108 223 39 Other Income 315 292 468 421 698 86 Total Income 15511 16841 225
Slide 17: Market Summary
MARKET SUMMARY IPO 1991 FCCB Issue 2005 Stock Split 2006 Market Cap Approx USD 543 Million Free Float 45% BSE Code 500265 NSE Code MAHSEAMLES NSDL/CDSL–ISIN INE271BO1025 17
Slide 18: Shareholding & Capital Structure
SHAREHOLDING & CAPITAL STRUCTURE The Equity Share Capital of Rs. 353 Million Share Holding Pattern as on 30/06/2011 Highlights Public / Others Promoters NRIs 0.29% 15.45% 54.69% ) Shares listed in NSE & BSE. ) 52 Weeks High/Low at NSE INR 456.00 / 318.55. ) Book Value per equity share (FV Rs. 5) INR
Slide 19: MSL Awards
MSL Awards… We are proud and honoured to bring home various Awards. “Winning is acknowledgement of our sincere efforts and the best practices that we follow” 19
Slide 20: Awards
Awards ¾ “Steel Pipe Manufacturer Of The Year” - Business Sphere Awards (2007-08) ¾ “Asia’s Top 200 Small & Mid size Companies, Best Under a Billion” - Forbes Asia ¾ “IMM Award for Excellence, 2007” - Asian Economic Community, IMM ¾ “India’s Top 500 Companies, 2006 & 2007” - Dun & Bradstreet America
Slide 21: Awards
Awards ¾ “Udyog Rattan Award” - Institute of Economic Studies ¾ “Export Excellence 2007-2008 Star Performer Award” - EEPC India ¾ “Certificate of Achievement 2009” “29th position amongst India’s 500 best-performing mid sized enterprises” - INC. India 21
Slide 22: SWOT
SWOT Strength ¾ Globally competitive due to lower manufacturing cost and ability to meet stringent International Quality Standards. ¾ Strong Presence in Oil and Gas Sector for Seamless Pipes. ¾ 50-50 JV with Tenaris for Upstream Premium Threading Connections. ¾ Major Domestic Customers includes Cash
Slide 23: SWOT Contd
SWOT CONTD…. Weakness ¾ Limited capacity to cater for Bearing / Auto industries. Opportunities ¾ Massive domestic investment plans in Oil, Gas, Power & Steel sectors. ¾ Anti Dumping on Chinese pipes in EU, USA, Canada, Mexico. Threat ¾ Dumping of pipes & tubes from China. 23
Slide 24: Market Background & Current Outlook
MARKET BACKGROUND & CURRENT OUTLOOK ¾ To meet the ever-increasing energy needs, all countries are intensifying their E & P activities, which would lead to increased demand of Casings & Tubing. ¾ In India, increased emphasis on natural gas is going to create large demand of seamless & welded pipes fo
Slide 25: Future Plans of MSL
FUTURE PLANS OF MSL ¾ Focusing on Niche products within Pipe business viz. Higher Dia ERW, Seamless, Coated Line Pipes & 13 Chrome Pipe. ¾ To fully exploit the export potential of SEAMLESS & ERW Pipes. ¾ Program to expand in renewable energy sector. Propose to bid for more Solar Power Projects. ¾ 16
Slide 26: Sustaining Success: Key Points
Sustaining Success: Key Points 1. Innovation 2. Strong Financial Discipline 3. Cost competitive manufacturer 4. Right move at an early stage of cycle 5. Constant Creation/Addition of Value 6. Valued Customer Base / Relationships 7. Ability to contain both Capital and Operating Cost 26
Slide 27: Contacts
CONTACTS Ravi Gupta Group CFO, D.P. Jindal Group Tel. No.: 91-124-4624320 E-Mail : rgupta@mahaseam.com Sanjiv Gupta Senior Manager Tel. No.: 91-124-4624321 (Dir.) E-Mail : sanjiv@mahaseam.com Corporate Office : Jindal Corporate Centre Plot No.30, Institutional Sector-44, Gurgaon – 122002 (Haryana) T
Slide 28: Thanks!
Thanks!
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