Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Investor Presentation (November 2017)
89 slides from Carborundum Universal's investor presentation, November 2017
Slide 1: Carborundum Universal Investor Presentation
CARBORUNDUM UNIVERSAL INVESTOR PRESENTATION Nov 2017 CUMI@2017 1
Slide 2: Disclaimer
DISCLAIMER The communication may contain statements relating to future business developments, company’s performance and economic performance that may constitute ‘forward looking statements’. While these forward looking statements represent the company’s judgments and future expectations, a number of
Slide 3: Murugappa Group: An Overview
Murugappa Group An Overview CUMI@2017 3
Slide 4: Murugappa in Numbers
Murugappa in Numbers Consolidated Turnover $ 4.6Bn 3 Sectors 17 Countries 117 Years Businesses 28 Workforce 40,000+ Manufacturing locations 55 CUMI@2017 4
Slide 5: Murugappa group companies
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Slide 6: The Philosophy We Cherish
The Philosophy We Cherish CUMI@2017 6
Slide 7: Industry Verticals
Industry Verticals Agriculture Organic Specialty Bio Fertilisers Pesticides Sugar Sugar Refinery Nutraceuticals Manure Nutrients Products Engineering Electro Industrial Steel Metal Industrial Power IT Infra Abrasives Refractories Bicycles Chains minerals Ceramics tubes/Strips Forming Gears Generatio
Slide 8: Presence in more than 17 Countries
Presence in more than 17 Countries Marketing & Distribution Bases in Argentina, Australia, Brazil, Netherlands, Philippines, South Africa, Thailand, UK, USA USA Russia, China Nutraceuticals, Electro Minerals, Industrial France Industrial Chains Abrasives Ceramics Tunisia Phosphoric Acid ME Materials
Slide 9: Geographical Presence
Geographical Presence Jammu & Kashmir Coromandel Punjab TPI Haryana Uttarakhand TIMF CUMI & TII Ambadi Uttar Pradesh TPI TII Rajasthan Liberty Assam Parry Agro Gujarat Sabero Liberty West Bengal PEIL MMTCL CUMI Coromandel TII Maharashtra Madhya Pradesh TII CUMI Coromandel Liberty TPI Karnataka Liber
Slide 10: Setting the Standards in Our Fields
Setting the Standards in Our Fields Russia 1 Silicon Carbide Electro minerals Precision Electro Transmission Pan India 1 Steel Tubes 1 minerals 1 Abrasives 2 Bicycles 2 Chains Phosphatic Non-Banking Financial Regional 1 Fertilisers 1 Sugar 2 Services CUMI@2017 10
Slide 11: CUMI@2017
CUMI@2017 <—_-
Slide 12: Corporate Social Responsibility
Corporate Social Responsibility 4 schools (8000 students) 4 hospitals – Facilities for 300 in-patients Polytechnic college (1400 students) Scholarships, Rural Girl Child Education Scheme Shri AMM Murugappa Chettiar Research Centre (MCRC) – Agri farm research Youth football academy, mobile health van
Slide 13: Carborundum Universal
Carborundum Universal CUMI@2017 13
Slide 14: Business Portfolio
Business Portfolio PBIT Share Sales Share CUMI – FY 17 Revenue :Rs. 22.3 bn EBIT :Rs. 2.8 bn Capital Employed :Rs. 16.0 bn Abrasives Ceramics Electro-minerals Revenue : Rs 10.2 bn Revenue : Rs 4.7 bn Revenue : Rs 7.7 bn EBIT : Rs 1.1 bn EBIT : Rs 0.7 bn EBIT : Rs 0.9 bn Capital E
Slide 15: The path traversed so far
The path traversed so far… Micronisation Grain treatment Sol gel CAPABILITY Coated modernization Iso Static press Metallization Fusion Polymer Processing Injection Moulding ENABLING PROPERTIES Moulding Vitrification • Hardness Sintering Zirconia • Toughness Crude SiC MATE
Slide 16: CUMI Consolidated
CUMI Consolidated – Exports its products to more than 55 countries – Over 20,000 varieties of Products – 28 manufacturing locations – 7 countries – Over 5200+employees – 1800+ outside India – Consolidated Gross Sales Rs 2232 cr (FY 16-17 ) – Market Cap~ Rs. 7000 cr CUMI@2017 16
Slide 17: CUMI Worldwide by Business Verticals
CUMI World Wide- By Business Verticals RUSSIA Abrasives Ceramics Electro minerals USA CHINA Abrasives Abrasives Ceramics THAILAND Abrasives S. AFRICA EUROPE UAE INDIA AUSTRALIA Foskor Zirconia Electro Minerals Abrasives Abrasives Abrasives Ceramics Electro minerals Ceramics Electro minerals Abrasive
Slide 18: Our Vision/Mission
OUR VISION/MISSION VISION We will be an Admired Company in Abrasives & Technical Ceramics, driven by Innovation, to create Stakeholder Wealth. MISSION Become one of the largest Abrasives (including Super Abrasives) / Technical Ceramics in the Company in the World by 2022. CUMI@2017 18
Slide 19: The Leadership Team
The Leadership Team CUMI@2017 19
Slide 20: Abrasives
ABRASIVES CUMI@2017 20
Slide 21: Abrasives
Abrasives CUMI@2017 21
Slide 22: Abrasives Business Overview
Abrasives Business Overview Engineering surfaces BUSINESS By creating precision surfaces on materials – grind to finish DEFINITION Design, manufacture and distribute Rigid and Flexible abrasives Aerospace | Automotive | Auto Comp | Bearing | Steel | Light/Heavy engineering INDUSTRIES General E
Slide 23: Coated and Bonded Business plants
Standalone operations – CUMI India COATED BUSINESS BONDED BUSINESS Sriperumpudur Plant Maraimalai Nagar Plant Chennai Plant -1954 Hosur Plant - 1979 • 52 Acre • 15 Acre • Coated Plant •Processing of Cloth / Paper • Custom Built Products • Std. Vitrified Products •Manufacture of Phenolic / Alkyd Resi
Slide 24: Subsidiaries / Associates – Mfg. Locations
Subsidiaries / Associates – Mfg. Locations VOLZHSKY ABRASIVE STERLING ABRASIVES WENDT INDIA WORKS - RUSSIA CUMI@2017 24
Slide 25: CUMI Abrasives Markets
CUMI Abrasives Markets Norway Russia CANADA Poland UK USA Turkey Gulf Countries Japan / Korea Ivory Coast Bangladesh Panama Sri Lanka Brazil South Africa Australia CUMI@2017 25
Slide 26: Abrasives Industry Value Chain
Abrasives Industry Value Chain Raw Abrasives Distribution End- Application Materials Manufacturing Channel Users • Aluminum Oxide • Bonded Abrasives • Retailers • Cutting • Automobiles • Silicon Carbide • Coated Abrasives • Wholesalers • Grinding • Machinery • Zirconia • Super Abrasives • Direct Sal
Slide 27: Global Abrasives Market Size
Global Abrasives market Size Total Market Size Estimate ~ $33.0 bn, growing at a CAGR of 3-4% Europe: $3.7 bn MiddleEast: Middle East:$0.15 $0.15bnbn Coated: $1.5 bn Bonded: $1.6 bn Coated: $53 mn Super Abrasives: $0.6 bn Bonded: $70 mn Gr Rate: 2-3% Super Abrasives:$30 mn Gr Rate: 5-6% APAC: $20.0b
Slide 28: Megatrend: Urbanization
Megatrend : urbanization 2012 2025 153 rural; 219 transition; 96 rural; 220 transition; 115 semi– 84 semi–urban and 33 urban districts* urban and 58 urban districts 12 very high and high performing 8 high performing states states – 50% of India’s GDP to contribute 52% of and 58% of consuming class i
Slide 29: Megatrend: Infrastructure
Megatrend: infrastructure S.NO Project Current Progress 1 100 smart cities across India As of now, 109 cities identified for development under this initiative. Total spend on these smart cities estimated at $50 bn 2 Freight and Industrial Major corridors identified. Slow progress due to delay in lan
Slide 30: Opportunities for CUMI Abrasives
Opportunities for CUMI Abrasives Infrastructure 100 smart cities across India Steel Industry – Roll Grinding wheels Fabrication – Thin wheel Freight corridor, Industrial Corridor Sagar mala - connectivity to the Port Gas Grids Auto & Auto Components – Crank/ Auto Refinishing – Coated Cam National Op
Slide 31: Opportunities for CUMI Abrasives
Opportunities for CUMI Abrasives Energy Scarcity Oil-1 mbpd to be added Gas – 135 bcm to be added 1000 TeraWh to be added Thermal / Nuclear will dominate Renewable energies will rise Turbine grinding Zircon alloy grinding in the nuclear energy space Fabrication Wind Mill Fabrication CUMI@201
Slide 32: Expansion in MMN and EAL
Expansion In MMN and EAL Thin Wheel and Coated Module Capability to produce all varieties of 7” / 9” DC / RFC -to Expansion in Coated Operations - Kolkata address both Domestic and Export markets. CUMI@2017 32
Slide 33: Operational Excellence through TPM across all plants
Operational Excellence through TPM across all plants JIPM Manufacturing Excellence Award –Bonded Hosur JIPM Manufacturing Excellence Consistency Award – SPR & MMN CUMI@2017 33
Slide 34: Abrasives – Performance
ABRASIVES – Performance Rs. Mil Consolidated Sales - Annual 10.3% 7.3% -2.5% 6.3% 0% +18.7% +26.7% +3.6% + 6.4% + 29.0% + 24.7% % sales in India 87% 83% 75% 70% 78% 74% 74% 74% 73% 77% 83% 83% CUMI@2017 34
Slide 35: Industrial Ceramics
Industrial Ceramics CUMI@2017 35
Slide 36: Industrial Ceramics
Industrial Ceramics World Class Manufacturing Strong Technology Platform Global Reach Leadership Position in Key Markets CUMI@2017 36
Slide 37: Industrial Ceramics – Product Range
INDUSTRIAL CERAMICS - Product Range SBU Industrial Ceramics Business Wear Technical Group Ceramics Ceramics Product Lines Grinding Wear Lined Engineered Metallized Ceramics Media Resistant Equipment Ceramics Liners Bulk Material Handling Fluid Handling Vacuum Markets and Ceramic Tile/Mineral Pro
Slide 38: Industrial Ceramics Product Offerings
Industrial Ceramics Product Offerings CUMI@2017 38
Slide 39: Widening of Product Offerings
Widening of Product Offerings Industrial Ceramics CUMI@2017 39
Slide 40: Inauguration of New DSIR Certified R&D
Inauguration of New DSIR Certified R&D New R&D Set up a state-of-the-art Research and Development facility for Advanced Ceramics Inaugurated by Chairman Mr M M Murugappan in presence of Director of NAL and SAC – ISRO in August 2016 CUMI@2017 40
Slide 41: Moving up the value chain
Strategy pursued - Moving up Value Chain Industrial Ceramics • Currently we are in the business of Alumina based Ceramics. We constantly look at Products Competing Criteria extending offerings in that range and target newer industries. Technology, Process Metz Cylinders Capability Moving up the valu
Slide 42: Impact of Megatrends
Impact of Megatrends Infrastructure Mining Power Generation • Wear Protection Urbanisation • Metallized Cylinders Power Transmission CUMI@2017 42
Slide 43: Impact of Megatrends
Impact of Megatrends Global Rebalancing Manufacturing • Wear Protection • Metallized Cylinders Emergence of • Engineered Ceramics Affluent Healthcare CUMI@2017 43
Slide 44: METZ 2.0 Project
METZ 2.0 Project Industrial Ceramics – Technical Ceramics CUMI@2017 44
Slide 45: Super Refractories
SUPER REFRACTORIES CUMI@2017 45
Slide 46: Super Refractories – Product Range
SUPER REFRACTORIES– Product Range CUMI Refractory Products Fired products Monolithics Precast Shapes Conventional Silicon Carbide Dense (CUMIFRAC) Castables (CUMICRETE) Insulation Nitride bonded Castables Silicon Carbide (CUMICRETE Fibre Refractory Light Weight) JV with Morgan Low cement Mulite (CUM
Slide 47: Super Refractories
SUPER REFRACTORIES • Refractory is any material that can withstand high temperature. CUMI is into High Alumina, Silicon Carbide, Zirconia based refractories which are capable to withstand very high temperature:- Fired Refractories: Is a block of refractory ceramic material used in lining furnaces,
Slide 48: Super Refractories – Application
SUPER REFRACTORIES - Application Ceramic Industries Chemical Process Industries Non – Ferrous Insulators Carbon Black Aluminum Sanitaryware & Tableware Fertilizer Copper Abrasives Petro-Chem. / Refinery Zinc Wall Tiles Refractories Cement Iron & Steel Electro Ceramics Power Generation Sponge Iron (D
Slide 49: Super Refractories
SUPER REFRACTORIES Ability to manufacture complex shapes and meet all surge requirements CUMI@2017 49
Slide 50: Super Refractories
SUPER REFRACTORIES Reheating Furnace – Skid & Pipe (Pre-Cast) CUMI@2017 50
Slide 51: Super Refractories
SUPER REFRACTORIES Glass Sprout and Slide Gate Tundish Nozzle Ladle Nozzle CUMI@2017 51
Slide 52: Opportunities for CUMI Ceramics (IC+SR)
Opportunities for CUMI CERAMICS (IC+SR) Coal Washeries Ceramics for Steel Reheat/ Heat Treatment Forging Furnaces Annealing Process Gas Heaters Glass Melting Furnace Gunning CUMI@2017 52
Slide 53: Opportunities for CUMI Ceramics (IC+SR)
Opportunities for CUMI CERAMICS (IC+SR) HRSG High Alumina Ceramics for Renewable Energy Super Critical Turbines Passive Fire Protection Ceramics for SOFC Gasification Projects FGD Systems CFBC Boilers CUMI@2017 53
Slide 54: Refractory Ranipet Lab
Refractory Ranipet Lab Recognized by DSIR CUMI – Ranipet : R&D lab recognized by Department of Science and Industrial Research (DSIR), Government of INDIA. CUMI@2017 54
Slide 55: Ceramics Performance
CERAMICS -(Industrial Ceramics and Refractories) Performance Rs. Mil Consolidated Sales - Annual -5.7% +9.3% +2.3% 15.6% + 31.3% -15.2% + 21.1% + 11.2% + 17.4% + 26.8% +20.4% % sales in India 44% 43% 53% 54% 53% 56% 62% 55% 55% 60% 50% 46% CUMI@2017 55
Slide 56: Electro Minerals
ELECTRO MINERALS CUMI@2017 56
Slide 57: Electrominerals – Product Range
ELECTROMINERALS – Product Range Brown Fused Alumina White Fused Alumina Silicon carbide Zirconia Specialty minerals Bonded Refractory Silicon wafer Diesel Abrasives slicing Particulate Filter Coated Metallurgical Investment Floor Abrasives casting Laminates Surface Engineering Refractories Energy &
Slide 58: Electrominerals – Facility
ELECTROMINERALS – Facility 1 2 1 Bauxite mines & calcination 3 4,5,6 2 Silicon carbide, 3 Fine powders, 4 Fused alumina 5 Alumina Zirconia 7 6 Zirconia Bubble One of the worlds largest integrated 7 12 MW Hydel power, Maniyar mineral complexes in the world CUMI@2017 58
Slide 59: Electrominerals – Overseas Facility
ELECTROMINERALS – Overseas Facility VAW - Russia VAW Russia – Silicon Carbide, 80,000 tpa Foskor Zirconia – Fused Foskor Zirconia Zirconia, 5000 tpa CUMI@2017 59
Slide 60: Electro Minerals Global Capacity & Our Standing
ELECTRO MINERALS Global Capacity & Our Standing Global Capacity and Our Share Current Standing Point • Silicon Carbide • Established leadership in Russian and Indian Global capacity is ~ 2 million tonnes. Price and market Cost movements, macro factors, keeps these • Locational advantage in Russia
Slide 61: Electro Minerals – Future Strategy
ELECTRO MINERALS – Future Strategy Innovation Value Pyramid CUMI@2017 61
Slide 62: EMD Business Opportunity
EMD Business Opportunity Environment Energy Urbanization Nuclear Energy Infrastructure Euro 6 Mobile energy Transportation Demand for water Renewable energy Housing Zirconia SiC for DPF Abrasives SiC SiC and Alumina for Refractories Graphite Filtration Thermal Powders Thermal Powders CUMI@2017 62
Slide 63: Capacity Expansion
Capacity Expansion Both Tilt and Pot Fusion plant CUMI@2017 63
Slide 64: Capacity Expansion: Bubble Furnace
Capacity Expansion Bubble Furnace CUMI@2017 64
Slide 65: Electro Minerals – Performance
ELECTRO MINERALS - Performance Sales - Annual Rs. Mil 21.1% -10.2% 2.9% 2.8% -8.0% +21.6% +24.8% +12.8% +97.2% +159.4% +21.7% % sales in India 94% 88% 40% 20% 24% 22% 21% 22% 25% 26% 36% 36% CUMI@2017 65
Slide 66: Financials
FINANCIALS CUMI@2017 66
Slide 67: Revenue Growth
Revenue Growth 9% 2% -1% +8% -4% +23% +25% Rs. In Million +7.5% +31% +46% +28% CUMI@2017 67
Slide 68: International Revenue share (%)
International Revenue share (%) CUMI@2017 68
Slide 69: Segmental Performance
Segmental Performance Sales FY 06 FY 07 FY 08 FY 09 FY 10 FY11 FY 12 FY 13 FY 14 FY 15 FY16 FY 17 (Rs. Mil) Abrasives 3214 3880 5006 5325 5518 6990 8304 8093 8599 8590 9217 10163 Ceramics 1130 1734 2199 2582 2871 3476 4565 4991 4707 4817 4085 4724 Electro 681 830 2153 4245 4789 5979 7272 6688 8099 7
Slide 70: Segmental Performance – Net Sales
Segmental Performance- Net Sales Sales FY FY 06 FY 07 FY 08 FY 09 FY 10 FY11 FY 12 FY 13 FY 14 FY 15 FY16 FY 17 (Rs. Mil) 18H1 Abrasives 3214 3880 5006 5325 5518 6990 8304 8093 8599 8590 9217 9379 4768 Ceramics 1130 1734 2199 2582 2871 3476 4565 4991 4707 4817 4085 4514 2312 Electro 681 830 2153 424
Slide 71: Performance Ratios
Performance Ratios CUMI@2017 71
Slide 72: Performance Ratios: Debt Equity Ratio
Performance Ratios Debt Equity Ratio CUMI@2017 72
Slide 73: Performance Ratios
Performance Ratios CUMI@2017 73
Slide 74: Investor Friendly Company
Investor Friendly Company • 43.74% held by the Murugappa Group, 27.42% held by FII’s, MF, PE, Insurance Cos • 63 years of unbroken track record of Profit and Dividend • Six Bonus Issues since inception – 89% of the current Equity is by way of capitalization of Reserves • Growth over the years entire
Slide 75: Awards and Accolades
Awards and Accolades Distinguished Business Leadership Award CUMI@2017 75
Slide 76: Awards and Accolades
Awards and Accolades CUMI Tiruvottiyur was awarded the JIPM Excellence Award at Kyoto, Japan on 23 March 2017 CUMI@2017 76
Slide 77: Awards and Accolades
Awards and Accolades CII Industrial Innovation Awards 2016 Electro Mineral Division won the CII Industrial Award 2016 and has been recognised as one of the Top 25 Innovative Organisations CUMI@2017 77
Slide 78: Awards and Accolades
Awards and Accolades Golden Peacock - Corporate Governance CUMI@2017 78
Slide 79: Exhibitions and Conferences
Exhibitions and Conferences IMTEX CUMI@2017 79
Slide 80: Exhibitions and Conferences
Exhibitions and Conferences IMTEX CUMI@2017 80
Slide 81: Exhibitions and Conferences
Exhibitions and Conferences Indonesia CUMI@2017 81
Slide 82: Exhibitions and Conferences
Exhibitions and Conferences Sharjah / Dubai Steel / Fab CUMI@2017 82
Slide 83: Exhibitions and Conferences
Exhibitions and Conferences Ceramics Expo in Japan Hannover Fair 2017 CUMI@2017 83
Slide 84: Exhibitions and Conferences
Exhibitions and Conferences CUMI America participating in an Exhibition CUMI@2017 84
Slide 85: CSR: Honing Skills, Helping Lives
CSR Honing Skills, Helping Lives Currently 175 trainees in total undergoing the skill and technical training in the centers at Hosur and Edappally CCSD 1. Educational Sponsorship for Economically Deprived Children 2. Key Children Project-for Child Development 3. Adopted Schools and Communities in Th
Slide 86: CSR: Engaging Employees and Community
CSR Engaging Employees and Community Environment Task Force was formed at involving employees The objective is to bring in ownership among employees towards improving environment performance The role of the Task Force is to oversee the Environment conservation, Implement new practices, Improving emp
Slide 87: Evolving from Passive to Interactive Materials
Value Evolution CUMI Consumer View Consumables Durable Component Material Structural Functional Active View Product Abrasives Electro Minerals Sensors View Refractories Technical Ceramics Implants Evolving from Passive to Interactive Materials… CUMI@2017 87
Slide 88: To Sum Up
To Sum Up Favorable demographics Strong domestic consumption Sustainable Positive Policy reforms GDP environment Growth ~7% for CUMI Macro economic stability India as a global bright spot CUMI@2017 88
Slide 89: Thank You
@ murugappa THANK YOU oS cuM@2017 <p>
Carborundum Universal — Investor Presentation (November 2017) on 6ix