Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (December 2019)
36 slides from Steel Strips Wheels's investor presentation, Dec 31, 2019
Slide 1: Steel Strips Wheels Ltd.
STEEL STRIPS WHEELS LTD. 1
Slide 2: The Company
The Company Group STEEL STRIPS GROUP Chairman R. K. Garg Managing Director Dheeraj Garg Business Category Design, manufacturing and marketing of Steel Wheel Rims for Passenger cars, Utility vehicles, 2/ 3 wheelers, Tractors, Light/ Heavy commercial vehicles/OTRs and Alloy Wheel Rims for Passenger Ca
Slide 3: Foot Print
Foot Print rae ee ' % » Soe is aa + 2 = ~ lan are = ti SASHIMI 2 . ; + : Boe EE A H.O. CHANDIGARH Lahoré> wi machaL a v-\~ Faisalabad, +B. fee 2 = Tall jes ie a : d pe DAPPAR PLANT = MKTG. BO : B NEW DELHI SS —a es Ihi UTTAR > 5s PRADESH Jaipur RAJASTHAN Agra Patna ~ 2 =) JHARKHAND India CHHATTISGAR
Slide 4: Manufacturing Locations- Capabilities Dappar, Chandigarh
Manufacturing Locations- Capabilities Dappar, Chandigarh Location: Chandigarh Ambala Highway Capacity: 7.25 Million for Passenger cars, DAPPAR MUV’s, 2& 3 Wheelers. PLANT 1.75 Million for Commercial Vehicles, Tractors and OTR’s. Area: 160,000 sq. meters of land with 55,000 sq. meters of bu
Slide 5: Manufacturing Locations- Capabilities Oragadam, Chennai
Manufacturing Locations- Capabilities Oragadam , Chennai Location: App.35 Kms from Chennai Capacity: 6.0 Million for Passenger cars & MUV’s. 1.5 Million for Commercial Vehicle Manpower: App. 800 people. CAR & MUV’S: Diameter - 12” to 20” Width - 2.5” to 8” Maximum Tensile - 600 MPa C
Slide 6: Manufacturing Locations- Capabilities Jamshedpur, Jharkand
Manufacturing Locations- Capabilities Jamshedpur , Jharkand Location: Close proximity to Tata Motors and Tata Steel. SOP: July 2010. Capacity: 1.8 Million for C.V. Wheels Manpower : App. 200 people. HCV Multi-Piece: 2/3 Pieces Width : 5.5"-13" JAMSHEDPUR Dia : 15"-24" PLANT Construction, Mi
Slide 7: Rim Manufacturing Process
RIM MANUFACTURING PROCESS TRIMMING EDGE NIPPING
Slide 8: Disc Manufacturing Process
DISC MANUFACTURING PROCESS O-H-6-S- DECOILING CUT TO LENGTH DRAW-I BH COINING VENT HOLE PIERCING VENT HOLE COINING 8 ‘STEEL STRIPS GROUP
Slide 9: Assembly of Rim & Disc
ASSEMBLY OF RIM & DISC RUN OUT CHECK & LOW POINT MARKING GG...
Slide 10: Partners in Success
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Slide 11: SSWL Export Customers Locations
SSWL Export Customers Locations Russia UK Germany Poland Canada Netherlands Slovakia Lindan France Romania Japan Manassas Austria Hungary Michigan Spain S Korea oakland Italy worthington Morocco Egypt U.A.E. Thailand Colombia Brazil Argentina Customers Locations 11
Slide 12: New Domestic Business Allocations (Steel Wheels)
New Domestic Business Allocations (Steel Wheels) Vehicle Name SSWL SoB Vehicle Name SSWL SoB •Maruti Scross 100% •Hyundai Xcent 100% •Maruti Breeza 100% •Hyundai Grand I10 80% •Maruti Baleno 100% •Hyundai Verna 40% •Maruti Celerio 90% •M&M KUV 100 100% •Maruti CIAZ 100% •M&M TUV 300 100% •Maruti Exp
Slide 13: New Domestic Business Allocations (Alloy Wheels)
New Domestic Business Allocations (Alloy Wheels) Vehicle Name SSWL SoB Vehicle Name SSWL SoB •M&M TUV 100% •Nissan Datsun Go Plus 100% •M&M Alturas 100% •Nissan Kicks 100% •Hyundai Creta 100% •Tata Harrier 100% •Hyundai Grand I10 40% •Tata Tiagor 100% •Hyundai Venue 40% •Tata Altroz 50% •KIA Carniva
Slide 14: SSWL Market share of Current Business in Steel Wheels
SSWL Market share of Current Business in Steel Wheels Segment SoB Passenger Car 50% Tractor 44% Commercial Vehicle (MHCV) 53% OTR (Back Hoe Loader) 70% 14
Slide 15: Sales Performance Turnover Value (Gross)
Sales Performance Turnover Value (Gross) Rs in Cr. 3,000 2,529 2,500 2,000 1,878 1,540 1,482 1,500 1,320 1,000 500 - 2015-16 2016-17 2017-18 2018-19 2019-20 (9M) 15
Slide 16: Sales Performance Volumes
Sales Performance Volumes No. of Wheels in Mn 18.00 15.91 16.00 14.53 14.20 14.00 13.17 12.00 10.54 10.00 8.00 6.00 4.00 2.00 - 2015-16 2016-17 2017-18 2018-19 2019-20(9M) 16
Slide 17: Segment Wise Volume Mix
Segment Wise Volume Mix 120.00% 100.00% 7.66% 6.48% 7.79% 8.73% 8.52% 8.64% 7.41% 10.23% 10.19% 12.57% 9.72% 16.29% 80.00% 60.00% 59.56% 61.64% 60.56% 57.49% 56.80% 53.19% 40.00% 20.00% 25.37% 21.65% 21.46% 21.90% 22.01% 24.15% 0.00% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (9M) 2-3 WHEELER C
Slide 18: Plant Wise Capacity Utilization
Plant Wise Capacity Utilization 100% 90% 39.65% 56.49% 93.89% 85.32% 83.07% 88.63% 80% 24.93% 0.00% 70% 0.00% 0.00% 87.82% 60% 82.64% 60.77% 82.88% 50% 65.14% 69.20% 40% 68.92% 82.73% 30% 20% 88.53% 87.77% 95.82% 85.16% 98.72% 96.65% 10% 0% 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20(9M) Dappar
Slide 19: Exports Volumes
Exports Volumes No. of Wheels in '000 1,800 1,674 1,612 1,600 1,513 1,426 1,403 1,400 1,296 1,200 1,000 800 600 400 200 - 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20(9M) 19
Slide 20: SSWL Performance
SSWL Performance (Rs in Lacs) 9 Months Full Year Full Year Growth 2019-20 2018-19 2017-18 2018-19 Total Income 119,071 205,865 153,164 34.41% EBITDA 15,421 26,335 21,359 23.30% PBT 3,398 10,888 9,708 12.16% PAT 2,928 8,214 7,575 8.43% Cash Profit 8,305 14,406 12,832 12.26% 20
Slide 21: Growth Drivers for coming Years
Growth Drivers for coming Years • Alloy wheels volume to grow backed by long term contracts with Hyundai, KIA Motors and also supported by Tata motors, Alloy Wheel Mahindra, Ford & Renault Nissan. • Hyundai and KIA LTA sign-off done for app. 160k Alloy Business Wheels per month. • In FY 21-22, SSWL
Slide 22: SSWL CV Wheel Plant Chennai, Tamilnadu
SSWL CV Wheel Plant Chennai, Tamilnadu 22
Slide 23: CV Wheel Plant: Chennai
CV Wheel Plant: Chennai •Location: Existing Plant in Chennai •Product Size Range: Multi Piece – 2/3 , Width 5.5” – 13” and dia 15”-24” •Capacity: Production: 1.5 Mln •Capability: Tubeless and Tube Type •Investment: INR 250Cr. Main Location Advantages a. Proximity to Daimler & Ashok Leyland (CV OEM’s
Slide 24: SSWL Alloy Wheels Plant Mehsana, Gujarat
SSWL ALLOY WHEELS PLANT MEHSANA, GUJARAT IN TECHNOLOGICAL COLLABORATION WITH KALINK, KOREA 24
Slide 25: Geographical Location Mehsana, Gujarat
Geographical Location Mehsana, Gujarat H.O. - CHANDIGARH MKTG.BO 1. DAPPAR PLANT NEW DELHI MEHSANA PLANT 4. MEHSANA PLANT ( 300 km from Kandla port ) MKTG. BO MUMBAI 3. JAMSHEDPUR PLANT (300 km from Kolkata port) MKTG. BO PUNE 2. CHENNAI PLANT ( 50 km from port ) Customer Plant Total No. of No. of A
Slide 26: Alloy Wheels Plant: Gujarat
Alloy Wheels Plant: Gujarat •Location: Mehsana, Gujarat •Land measuring: 240,000 Sq Mt.; Product Size Range: 14” to 20” •Capacity: Production: 1.5 Mln & Painting: 2.5 Mln; Low Pressure Die Casting with Diamond Cutting •Investment: Rs380cr. Main Location Advantages a. Cheap Power & Gas b. Industrial
Slide 27: Plant Bird View
‘STEEL STRIPS PLANT BIRD VIEW Building 1: Melting Section Total Land: 270,000 sq.m Building 2: LPDC Section Includes HT Building 3: CNC Machining Section =z Future Expansion Building 4: Painting Section Building 5: Finish Goods storage & Dispatch Section Daan A 27 ‘STEEL STRIPS GROUP
Slide 28: Manufacturing Process
l Manufacturing Process 28 ‘STEEL STRIPS GROUP
Slide 29: Wheels Produced in Mehsana
WHEELS PRODUCED IN MEHSANA Xv. x x 6. x
Slide 30: 30
30
Slide 31: Why Alloy Wheels?
Why Alloy Wheels? •Appearance Alloy wheels have enhanced aesthetic appeal and look much better than Steel wheels •Weight Lighter in weight compared to Steel wheels leading to better fuel efficiency of the car and helps in adhering to stricter emission norms •Strength Aluminum mixed with other metals
Slide 32: Why SSWL For Alloy Wheels?
Why SSWL For Alloy Wheels? •Wheel Manufacturing/Selling Experience SSWL already into manufacturing/selling steel wheel rims across all leading PV Manufacturers. With Alloy wheel, SSWL will be covering the entire portfolio covering Steel/Alloy Wheel under one umbrella. •Established Customer Base SSWL
Slide 33: SWOT analysis SSWL
SWOT analysis SSWL STRENGTH WEAKNESS 1. SSWL leading supplier of Steel Wheel rims in India. 1. Growth dependent of industry. Though Company is 2. Diversified customer base, all major OEM’s are covered mitigating the same with diversified customer base. 3. Globally accepted product and excellent repu
Slide 34: Alloy Wheels Ramp-up
Alloy Wheels Ramp-up Sales(Qty)('000) 300.00 248.51 250.00 214.39 200.00 179.10 146.94 150.00 110.72 101.86 95.24 100.00 76.94 55.43 50.00 28.83 22.28 21.83 15.16 - 34
Slide 35: Order Visibility of Mehsana Plant (Alloy Wheel) OEM's
Order Visibility of Mehsana Plant (Alloy Wheel) Order Size Sr. No. OEM’s (Wheels Per Month) 1. Hyundai 145k 2. KIA Motors 30k 3. TATA Motors 30k 4. Ford 25k 5. Nissan 20k 6. Mahindra & Mahindra 10k 7. Exports 15k Alloy Wheel Business will be EBITDA accretive with expected margins of 20-22% without c
Slide 36: Technological Partner: Kalink
Technological Partner: Kalink Kalink, Korea Part of HIHO Group, Headquartered in Seoul, Korea with its presence in Aluminum Alloy Billet production, Trading of Aluminum for Mining and Smelting Group sales of more than USD 1.3 Billion Kalink has 2 plants for Aluminum Alloy wheels: Korea (1.6 Mln w
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