Oricon Enterprises Limited · NSE:ORICONENT
Oricon Enterprises — Investor Presentation (November 2016)
40 slides from Oricon Enterprises's investor presentation, November 2016
Slide 1: Investor Presentation – November 2016
Investor Presentation – November 2016
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by Oricon Enterprises Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
Slide 3: At a Glance
At a GLANCE • Engaged in manufacturing of Pentanes, Liquid Colorants and Pet Bottles Oricon Enterprises Ltd • Owns about 1 acre land at prime location in Worli, Mumbai (OEL) • Acquired 70% equity stake in Oriental Containers Ltd w.e.f 27th March 2015 – currently, a wholly owned 100% subsidiary Orico
Slide 4: Oricon Enterprises Ltd (OEL)
Oricon Enterprises Ltd (OEL)
Slide 5: Diversified Business
Diversified Business Engaged in trading and manufacture of Pentane & others Product Portfolio: NORMAL PENTANE, used as a specialty solvent for extraction of paraffin from kerosene COMMERCIAL PENTANE, used in manufacture of Expandable Polystyrene (EPS) CYCLO PENTANE ISO PENTANE BLEND, used
Slide 6: Oricon Properties Pvt Ltd
Oricon Properties Pvt Ltd 100% subsidiary of OEL
Slide 7: Monetizing Real Estate in due course
Monetizing Real Estate in due course 2 acres at Worli, Mumbai Housed in Oricon Properties Pvt Ltd – 100% subsidiary of OEL Plans to re-develop for Residential Purposes Received Commencement Certificate (CC) from Municipal Corporation of Greater Mumbai for the redevelopment to launch project 1
Slide 8: Enters into JDA with Subsidiary of Indiabulls Real Estate
Enters into JDA with Subsidiary of Indiabulls Real Estate • Entered into Joint Development Agreement (JDA) with Indiabulls Infraestate Limited • Indiabulls Infraestate Limited, a majority owned subsidiary of the Indiabulls Real Estate Limited, is developing marque project “BLU” at Worli, Mumbai • JD
Slide 9: Oriental Containers Ltd
Oriental Containers Ltd 100% subsidiary of OEL
Slide 10: Led by Professional Management
Led by Professional Management Mr. Rajendra Somani – Managing Director Promoter of the company, with over 46 years of experience has Associated with OCL since inception Successful track record of setting-up and operating several new businesses under Parijat Group Also, Managing Director of O
Slide 11: Competitive Edge
Competitive Edge Manufacturing units 5 Complete range of Metal and Plastic Caps & Closures at Murbad, Maharashtra & Goa - 2 Brands Strategically Located Facilities close to ports Innovation Market leader in Indian caps and & No.1 closures Industry Technology Strong presence across Globe through expo
Slide 12: Complete Range of Caps & Closures
Complete Range of Caps & Closures Plastic Closures - “High Growth Business” Metal Closures – “Stable Business” Type: Crown Caps Type: Plastic Closure - CSD Brand : Hycrown Brand: Bevseal - CSD End - User Industry: CSD, Fruit End - User Industry : Carbonated Juices, Beer, Ketchup Soft Dri
Slide 13: Forefront of Technology & Innovation
Forefront of Technology & Innovation OCL pioneered the implementation of new global technology in caps and closures in India Developed and introduced four new plastic closures in the past three years Developed and introduced new crowns to economize cost Technology 1st To Awards & Introduce Acc
Slide 14: Strong Customer Profile
Strong Customer Profile Diversified Comprises of blue chip global companies in food & beverage (F&B), alcoholic beverages, fast moving consumer goods (FMCG) and pharmaceutical industries Key customers command leadership position in their respective industries Coca -Cola – Leader in CSD industr
Slide 15: Strategic Location of Manufacturing
Strategic Location of Manufacturing Plastic Closure Facility Established in 1998, at Goa Plastic Closures Annual Capacity Situated in close proximity to Murmugao Port, ~20km away Plastic – CSD Caps 3,500 mn caps Dedicated to manufacturing of plastic closures Plastic– wf/hf Caps 700 mn caps E
Slide 16: Growth Opportunities
Growth Opportunities Export Opportunities Most of key export markets significantly under-served Increasing penetration of MNC in these markets provide strong potential for future growth Growing Plastic Closures Demand Industry trend shifting towards plastics with increasing manufacturing of ca
Slide 17: Capitalizing on Growth Opportunities
Capitalizing on Growth Opportunities Global containers & Packaging market valued at Plastic Closure Production Capacity (#) USD 583 bn, estimated to grow at 6.8% CAGR over 2013-2018 6.45 billion Indian CSD Industry valued at USD 2.4 bn, estimated to grow at 8% CAGR over 2013 - 2018 5 billion I
Slide 18: Financial Indicators
Financial Indicators Plastic CAGR +28% Rs.Crs CAGR +10% Metal 394 406 56 50 303 311 Revenue 49% 50% 36 EBITDA 42% 47% 27 27 191 55% 58% 51% 50% 53% 45% FY13 FY14 FY15 FY16 H1 FY17 FY13 FY14 FY15 FY16 H1 FY17 CAGR +93% CAGR +16% 19 15 13.8% 13.9% EBITDA Margin% 12.6% 11.6% 13 Net Profit 10 8.9% 11 5
Slide 19: United Shippers Ltd
United Shippers Ltd 59.05% subsidiary of OEL
Slide 20: Led by Professional Management
Led by Professional Management Mr. Sevantilal Jivanlal Parekh – Chairman & Managing Director Promoter of the company With over 50 years of experience across industries including shipping, construction, manufacturing, investment and finance Mrs. Sujata Parekh Kumar – Joint Managing Director Pro
Slide 21: Supported by Strategic Investors
Supported by Strategic Investors Logiscor Ltd (Scorpio Group) – Marshal Island • Holds 10.88% in USL • A leading independent provider of crude oil and petroleum products transportation services Mr. Vallabh Bhansali • Holds 8.18% in USL through family investments • Co-founder and Chairman of Enam Fin
Slide 22: Integrated Marine Logistics Services
Integrated Marine Logistics Services Chartering of Lighterage of Barging Ships Cargo Charter (voyage & Transfers Cargo Movement of time chartering of onto a smaller cargo to port vessels) vessel / barge on barge Transport – Road Warehousing Stevedoring & Rail Last mile transfer Warehouse Cargo Unloa
Slide 23: Corporate Structure
Corporate Structure United Shippers Ltd USL Bulk USL Shakti Shipping USL NMM Coeclerici Clearing Shipping Logistics DMCEST Pte. Ltd Logistics Pvt. Agency Pvt. Ltd Ltd Ltd UAE Singapore Mumbai Mumbai Bedi Subsidiary – Subsidiary – Subsidiary – Subsidiary – Subsidiary – 100% 100% 100% 100% 100% Primar
Slide 24: Subsidiary: USL Shipping DMCEST
Subsidiary : USL Shipping DMCEST • Set-up in 2004, as 100% Subsidiary of United Shippers Ltd • Based and registered in Dubai Maritime City, Dubai • Bulk Shipping Pte. Ltd – 100% subsidiary of USL DMCEST, registered in Singapore • Engaged in chartering vessels for various clients, handling full chart
Slide 25: Subsidiary: USL NMM Logistics Ltd
Subsidiary : USL NMM Logistics Ltd • Set-up in 2006, as 100% Subsidiary of United Shippers Ltd • Engaged in business of handling cargo by operating “Grabs” on grabless vessels • Owns 13 SMAG Radio Remote controlled Grabs of different variants • Volumes handled - 1.64 Lakh Metric Ton in FY16 • Revenu
Slide 26: Subsidiary: USL Coeclerici Logistics Pvt Ltd
Subsidiary : USL Coeclerici Logistics Pvt Ltd • Set-up in 2011 • Incorporated with purpose of construction and operating of Floating Crane Vessel • Facilitates handling cargo in mid-sea for discharging of cargo from grabless vessel • 1st Floating Crane Vessel construction completed and operational s
Slide 27: Subsidiary: Shakti Clearing Agency Pvt Ltd
Subsidiary : Shakti Clearing Agency Pvt Ltd • Acquired 100% equity stake in Shakti Clearing Agency Pvt Ltd • Subsidiary of USL wef 28th March 2014 • Shakti Clearing Agency has exclusive license to operate 90 meters jetty and back-up area at Bedi Port, Gujarat • Handles dry bulk cargo • USL has been
Slide 28: Servicing clients from presence in 3 states
Servicing clients from Presence in 3 states Presence across Ports in Gujarat • Navlakhi • Bedi • Sikka • Sanghipuram • Singach • Magdalla Presence across Ports in Gujarat Maharashtra • Dharamtar Maharashtra • Dahanu Presence across Ports in Tamil Nadu Tamil • Tuticorin Nadu 28
Slide 29: Volume growth supported by strong fleet
Volume growth supported by strong fleet Equipment Fleet Size (#) Volume Handled (Million MT) Revenue (Rs.Crs)# As on 6.3 FY10 162 Equipment March 31, 2016 7.0 FY11 240 Self Propelled 7.8 FY12 312 27 Barges 11.9 FY13 402 Excavators 55 12.9 FY14 380 12.6 FY15 412 Payloaders 50 9.9 FY16 299 Dumpers 120
Slide 30: Investments in Private Jetty
Investments in Private Jetty Owns Private Jetty at Navlakhi Port, Gujarat Became operational in April 2000 with an investment of ~Rs. 5.1 Crs Initially, USL had sole right to use jetty for 10 years, which then got extended for 5 years by Gujarat Maritime Board USL capable of handling cargo at
Slide 31: Growth Opportunities
Growth Opportunities Minor Ports growing faster than major ports Gaining volume share and a major chunk of traffic shifting from major ports to non-major ports Minor ports contributing ~44% of total traffic in FY15 Infrastructure development driving demand for core commodities Special Economic
Slide 32: Capitalizing on Growth Opportunities
Capitalizing on Growth Opportunities Gross Fixed Assets# (Rs. Crs) Investing in Equipment fleet Rs. 229 Crs Strengthen Execution Capabilities to offer: Rs. 259 Crs End-to-end logistics Solutions Rs. 231 Discharge Guarantees Crs Improved Product handling Rs. 221 Crs Guaranteed Delivery wi
Slide 33: Financial Indicators
Financial Indicators Rs.Crs 131 530 544 484 103 97 Revenue EBITDA 393 48 156 20 FY13 FY14 FY15 FY16* H1 FY17 FY13 FY14 FY15 FY16* H1 FY17 PBT before Exceptional 80 100 68 Net Profit Item 67 66 43 29 31 10 7 FY13 FY14 FY15 FY16* H1 FY17 FY13 FY14 FY15 FY16* H1 FY17 Note : Consolidated Results * USL s
Slide 34: Consolidated Financial Highlights Oricon Enterprises Ltd
Consolidated Financial Highlights Oricon Enterprises Ltd
Slide 35: H1 FY17 - Consolidated Profit & Loss
H1 FY17 - Consolidated Profit & Loss Rs. Crs Q2 FY 17 Q2 FY 16 H1 FY17 H1 FY16 Revenue 239.4 269.4 558.8 594.7 Consumption of RM 39.0 46.7 102.6 115.7 Purchase of Traded Goods 75.9 67.4 168.8 141.8 Increase/Decrease in stock trade 5.1 3.4 1.7 10.2 Employee Benefit Expenses 17.6 20.0 35.5 37.4 Charte
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crs. Sep-16 Mar-16 Rs. Crs. Sep-16 Mar-16 Shareholder’s Fund 661 644 Non-current assets 913 1,115 Share capital 31 31 Fixed assets 577 864 Reserves & Surplus 629 612 Long-term loans and advances 80 71 Minority Interest 183 180 Other non-current assets 256 180 Non-curre
Slide 37: Segment Highlights – H1 FY17
Segment Highlights – H1 FY17 Rs. Crs H1 FY17 H1 FY16 H1 FY17 H1 FY16 H1 FY17 H1 FY16 Revenue EBIT EBIT % Packaging 191.2 215.1 16.4 17.8 8.6% 8.3% Logistics 156.3 193.7 2.4 9.9 1.5% 5.1% Automobiles 188.6 157.6 2.5 -0.4 1.3% NA Others 23.9 29.1 -2.9 1.7 NA 5.8% 37
Slide 38: Annual - Consolidated Profit & Loss
Annual - Consolidated Profit & Loss Rs. Crs FY16 FY15 Revenue 1,169 1,048 Consumption of RM 228 100 Purchase of Traded Goods 271 302 Inc/Dec in stock trade 15 (9) Employee Expenses 73 52 Charter Freight Charges 83 103 Stores & Spares 41 13 Other Expenses 361 396 EBITDA 97 91 Margin 8.3% 8.7% Other I
Slide 39: Dividend Track Record
Dividend Track Record Dividend per Equity Share (Rs.) 0.50 0.44 0.44 0.44 0.44 0.36 FY11 FY12 FY13 FY14 FY15 FY16 Total dividend of Rs.0.50 per share of Rs. 2 each 39
Slide 40: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Oricon Enterprises Ltd. Strategic Growth Advisors Pvt. Ltd. L28100MH1968PLC014156 U74140MH2010PTC204285 Mr. B M Gaggar Mr. Shogun Jain / Mr. Jigar Kavaiya bmg@ocl-india.com shogun.jain@sgapl.net / jigar.Kavaiya@sgapl.ne
Oricon Enterprises — Investor Presentation (November 2016) on 6ix