Pcbl Chemical Limited · NSE:PCBL

Pcbl Chemical — PCBL — Investor Presentation (July 2022)

35 slides from Pcbl Chemical's investor presentation, Jul 6, 2022

  1. Slide 1: Cover letter to stock exchanges

    6th July, 2022 The Manager, The General Manager, Listing Department, Department of Corporate Services, National Stock Exchange of India Ltd, BSE Ltd., Exchange Plaza, 1st Floor, New Trading Ring, Plot No. – C – 1, G Block, Rotunda Building, Bandra – Kurla Complex, P.J. Towers, Bandra (East), Dalal S

  2. Slide 2: PCBL Limited

    PCBL LIMITED A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People

  3. 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

  4. Slide 4: Table of Contents

    Table of Contents 1 Company Overview 04 2 Key Highlights 12 3 Growth Strategies 25 4 Appendix 30 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People 3

  5. Slide 5: Company Overview

    => > RP-SanjiviGoenka L fo PK srove SX PCBL Growing Legacies Company Overview

  6. Slide 6: A trusted Global player providing cutting edge solutions to our Partners and an exciting

    A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People

  7. 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

  8. 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

  9. 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

  10. 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 INNOVATION Partners and an exciting Financial Performance Profit Before Tax (PBT) Return ratios (ROCE ,

  11. 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

  12. Slide 12: Experienced Leadership Team

    Experienced Leadership Team Kaushik Roy – Managing Director & CEO Jiten Keluskar – Chief Procurement Officer Lohit Shringi - Chief – Specialty Blacks • Worked in Reliance Industries Ltd, • Around 30 years spread over Apollo Cummins India Ltd, Mahindra &  25 years across chemical, Mahindra Ltd, Siem

  13. Slide 13: Key Highlights

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  14. Slide 14: 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

  15. Slide 15: 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) PCBL 603 Birla Carbon India 315 Presence across 45+ countries Himadri Specialty Chemicals 180 BK

  16. Slide 16: 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

  17. Slide 17: 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 by its wholly owned subsidiary PCBL(TN) Limited Andhra Krishnapatnam Pradesh Port Tiruvallur Carbon Black Capacity of 147 KT Power Capacity

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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 (INR Cr) 15% 4% 6% 8.8% 16.6% 19.8% 660 1% 8% 526 24% 424 26% 29% 27% 218 75% 70% 65% 65% FY15 FY18 FY2

  21. Slide 21: 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

  22. Slide 22: 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) 15% EBITDA / MT (INR) 603 603 8.8% 16.6% 19.8% 660 13,508 14,459 515 526 472 424 10,550 6,951 218 FY15 FY18 FY21 FY22

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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% Indi

  26. Slide 26: Growth Strategies

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  27. Slide 27: Growth Strategies

    Growth Strategies  Developing new specialty chemicals  Greenfield expansion project (in Performance grades progress) in Tamil Nadu by its wholly Capacity & Specialty  Moving up the value chain in rubber owned subsidiary PCBL (TN) Limited, Addition Chemicals grades with a capacity of 147 KT – smar

  28. Slide 28: Greenfield Project – PCBL TN

    Greenfield Project – PCBL TN Automation Green Factory Project Capex Smart Factory Strategically Multiple Lines Located Plant IGBC platinum green Automated & The plant will be Capex of ₹650 Cr and Smart Factory with advanced Located close to factory building ₹150 Cr will be incorporation of industry

  29. Slide 29: Project Capex Details

    Project Capex Details Expected Product Capacity Commissioning Date Carbon Black 147 KTPA FY23 Green Power 31 MW FY23 Specialty Black 40 KTPA FY24 *Estimated Project Cost A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People 28

  30. Slide 30: Carbon Black, Specialty Black and Green Power expansion

    Carbon Black Specialty Black Green Power PCBL commissioned 8 & 7 PCBL TN, a wholly PCBL is expanding their MW power plant respectively specialty black capacity owned subsidiary with by 40 KTPA at Mundra. capacity of 147 KTPA is in Mundra and Palej in FY22. expected to be Capex estimated for the

  31. Slide 31: Appendix

    => > RP-SanjiviGoenka L fo PK srove SX PCBL Growing Legacies Appendix > 4

  32. Slide 32: P&L Snapshot

    P&L Snapshot (All amounts in INR Cr) FY19 FY20 FY21 FY22 Income: Revenue from operations 3,528.6 3,243.5 2,659.5 4446.4 Other income 19.9 29.0 18.0 28.6 Total Income 3,548.5 3,272.6 2,677.5 4475.0 Expenses: Cost of materials consumed 2,352.0 2,185.7 1,582.7 3169.1 Changes in inventories of finished

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: Thank You

    THANK YOU A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People 34

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