Gravita India Limited · NSE:GRAVITA
Gravita India — Investor Presentation (August 2019)
37 slides from Gravita India's investor presentation, Aug 23, 2019
Slide 1: Intimation of Analyst/Institutional Investor Meeting
GRAVITA INDIA LTD. ~~ GRAVITA Corp. Office : 402. Gravlta Tower. A-27 B. Shantl Path. Tllak Nagar, JAIPUR-302 004. Rajasthan (INDIA) Phone: +91-141- 2623266, 2622697 FAX: +91-141-2621491 E-mail : lnfo@gravltalndla.com Web. : www.gravltalndla.com CIN : L2930BRJI992PLC006870 23~" 11 August GIL/2019-20
Slide 2: Investor Presentation August 2019
INVESTOR PRESENTATION AUGUST 2019
Slide 3: Executive Summary
Executive Summary • Incorporated in 1992, Gravita India Ltd. (Gravita) is engaged in recycling of Used Lead Acid Batteries, Cable Scrap / other Lead Scrap, Aluminum Scrap and Plastic Scrap etc. • Gravita has 12 strategically located recycling facilities in Asia, Africa and Central America with a cap
Slide 4: Corporate Structure
CORPORATE STRUCTURE Gravita Senegal SAU Gravita USA Inc. Gravita Nicaragua SA Gravita Ghana Ltd. Gravita Jamaica Ltd. Gravita Metals Inc. Gravita India Ltd* Recyclers Ghana Ltd. Partnership Firms Gravita Metals Gravita Mozambique LDA Gravita Ventures Ltd. Gravita Netherlands BV Navam Lanka Ltd. Grav
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: Company Overview
Company Overview Operational Revenue (INR Mn) and EBITDA Margins (%) • Gravita India Ltd. (Gravita) is a leading global non-ferrous secondary metal and 8.62% one of India’s largest secondary Lead metal producing company. 8.05% • A vertically integrated business, economies of scale and a diversified
Slide 7: Board of Directors and Senior Management
SENIOR MANAGEMENT BOARD OF DIRECTORS Naveen Prakash Sharma Sunil Kansal (CEO & President) (Chief Financial Officer) Dr. M. P. Agrawal Rajat Agrawal Yogesh Malhotra Chairman Managing Director Whole Time Director Vijendra Singh Tanwar Vijay Kumar Pareek Rajeev Surana (Director - NBD, (Executive Direct
Slide 8: Key Milestones
KEY MILESTONES • Lead recycling unit at Gandhidham, • Plastic recycling Gujarat. • Plastic recycling unit at Jaipur Lead recycling unit Lead recycling unit • Incorporated Lead recycling Unit Listed on unit at Managua, • PET recycling unit at Jaipur at Sri-Lanka in Ghana NSE and BSE company in Nicara
Slide 9: Geographical Presence
GEOGRAPHICAL PRESENCE Head Quarters India (Jaipur, RJ) EXISTING FACILITIES Americas UPCOMING FACILITIES • Nicaragua (Managua) • Jamaica (Kingston) Asia • Costa Rica (San Jose) • India (Jaipur, Rajasthan) • Dominican Republic (San • India (SEZ, Jaipur, Rajasthan) Domingo) Africa • India Chittoor (And
Slide 10: Awards & Accolades
AWARDS & ACCOLADES Selected by International Lead Management Centre under United Nations Environment Programme (UNEP) as a partner for eco-friendly recycling initiatives in Senegal Niryat Shree Award (2014, 2016) by the Honourable President of India The President’s National Awards for Export A
Slide 11: Key Strengths
KEY STRENGTHS Deep routed scrap collection Long standing relationships with reputed network globally global customers Strategically located state-of-the-art recycling facilities Pan India presence from North to 1st Asian Lead recycling company South whose facility has been approved by International
Slide 12: Business Overview
BUSINESS OVERVIEW {4 (= | jaa zl I
Slide 13: Scrap Collection
Scrap Collection OVERVIEW The main raw materials used for production includes Used Lead Acid Batteries (ULAB), Other Lead Scrap, Aluminium Scrap and Plastic Scrap. The company collects scrap from more than 20 countries including own scrap collection centers in more than 10 countries. These raw
Slide 14: Recycling Facilities
RECYCLING FACILITIES
Slide 15: Recycling Facilities - India
RECYCLING FACILITIES - INDIA Lead Capacity (MTPA) 1,07,819 89,418 88,819 88,819 FY17 FY18 FY19 Q1-FY20 Aluminium Capacity (MTPA) Phagi Facility, Gandhidham SEZ Facility, Jaipur Chittoor Facility, Kathua & Jammu 12,000 12,000 12,000 Jaipur Facility, Gujarat Andhra Pradesh Facilities, J&K 6,000 • Esta
Slide 16: Recycling Facilities - Overseas
RECYCLING FACILITIES - OVERSEAS Lead Capacity (MTPA) 27,000 24,000 24,000 24,000 FY17 FY18 FY19 Q1-FY20 Sri Lanka Facility Ghana Facility Mozambique Senegal Facility Nicaragua Jamaica Facility Tanzania Facility Facility Facility Aluminium Capacity (MTPA) •Established at •Establishing •Established at
Slide 17: Lead Recycling Process
LEAD RECYCLING PROCESS PP Chips (For further process) We Recycle to Save Environment (16)
Slide 18: Lead Products
LEAD PRODUCTS Pure Lead and Alloys Lead Sheets Lead Bricks Red Lead Others Lead rarely occurs in nature and Lead Sheets are produced by cold Lead Bricks are basically the Red Lead primer is one of the oldest • Lead powder incorporated into a usually associated with ore of Zn, Ag rolling and are main
Slide 19: Aluminium Recycling Process
ALUMINIUM RECYCLING PROCESS We Recycle to Save Environment (18)
Slide 20: Aluminium Products
ALUMINIUM PRODUCTS Aluminium Cast Alloys ADC-12 Applications AC4B Pressure Die Casting Components for: LM-24 LM-6 • Automotive AS-9 • Consumer Durables DIN-226 • Electricals AlSi-132 Customized Alloy We Recycle to Save Environment (19)
Slide 21: Plastic Recycling Process
PLASTIC RECYCLING PROCESS Polypropylene/ HDPE Recycling PET Recycling We Recycle to Save Environment (20)
Slide 22: Plastic Products
PLASTIC PRODUCTS PPCP Granules Applications Benefits • PPCP Granules are manufactured using • Packaging battery boxes / paint buckets / oil canes / • Excellent impact/stiffness performance even at low • Moulding chairs etc., and are offered by the company in various shapes and sizes, depending upon
Slide 23: Marquee Clients
MARQUEE CLIENTS We Recycle to Save Environment (22)
Slide 24: Turnkey Solutions
TURNKEY SOLUTIONS Executed more than 50 turnkey projects globally Gravita offers Turnkey solutions for Lead Acid Battery Recycling processes and plants. The company is one of In house Lead recycling equipment the leading Turnkey project suppliers for Lead smelting manufacturing facility helps th
Slide 25: Financials
FINANCIALS FINANCIALS We Recycle to Save Environment (24) 24
Slide 26: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY16 FY17** FY18** FY19** Q1-FY20** Operational Income 3,698 5,577 7,966 10,594 2,312 Total Expenses 3,609 5,203 7,407 10,198 2,184 EBITDA 89 374 559 396 128 EBITDA Margin (%) 2.41% 6.71% 7.02% 3.74% 5.54% Depreciation 29 33 49 68 21 Finance Cost 68 7
Slide 27: Standalone Balance Sheet (IND-As)
Standalone Balance Sheet (IND-As) EQUITIES & LIABILITIES (INR Mn) FY18 FY19 ASSETS (INR Mn) FY18 FY19 Shareholder Funds 1,359 1,494 Non-current Assets 1,219 1,419 (A) Share Capital 138 137 (A) Property, Plant and Equipment 812 1,062 (B) Other Equity 1,221 1,357 (B) Capital work-in-progress 144 94 (C
Slide 28: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY16 FY17** FY18** FY19** Q1-FY20** Operational Income 4,513 6,881 10,295 12,417 2,644 Total Expenses 4,352 6,327 9,408 11,830 2,495 EBITDA 161 554 887 587 149 EBITDA Margin (%) 3.57% 8.05% 8.62% 4.73% 5.64% Depreciation 67 59 87 116 41 Finance Cost
Slide 29: Consolidated Balance Sheet (IND-As)
Consolidated Balance Sheet (IND-As) EQUITIES & LIABILITIES (INR Mn) FY18 FY19 ASSETS (INR Mn) FY18 FY19 Shareholder Funds 1,946 2,040 Non-current Assets 1,451 2,029 (A) Share Capital 137 137 (A) Property, Plant and Equipment 1,077 1,356 (B) Other Equity 1,760 1,856 (B) Capital work-in-progress 239 4
Slide 30: Business Segment-wise Financials
BUSINESS SEGMENT-WISE FINANCIALS SEGMENT-WISE REVENUES (INR Mn) Product-wise Revenues (FY19) 10,570 8,935 6,190 Refined Lead 52% 500 919 1,127 75 199 176 108 241 545 Remelted Lead 8% Lead Aluminium Turnkey Others Others 5% FY17 FY18 FY19 Turnkey 1% Aluminium 9% • Revenue CAGR 23% in last 10 years •
Slide 31: Back to Back Hedging Mechanism
BACK TO BACK HEDGING MECHANISM Since June 2016, Gravita has started back-to-back hedging of the metal commodities to mitigate the risk in the commodity price. Gravita sells the equivalent volume of finished goods at the time of procurement of scrap on daily basis. Gravita has 3 tier structure of
Slide 32: Industry Overview
INDUSTRY OVERVIEW FINANCIALS We Recycle to Save Environment (31) 31
Slide 33: Secondary Lead Market
SECONDARY LEAD MARKET Global Lead Reserves - 89 Mn Tons Mexico Russia Peru 6% Lead is the only metal in the world which can be recycled number of times without 7% 7% diminishing any quality and recycled Lead & primary Lead are traded on the same USA China 6% price at London Metal Exchange (LME). 1
Slide 34: Aluminium Secondary Market
ALUMINIUM SECONDARY MARKET Aluminium Demand in India India ranks 4th in terms of aluminium production behind China, Australia and 4 Brazil. (Mn T) Aluminium demand in India posted a healthy 6-7% growth during the past 3 1.2 0.9 1 five-year period and reached to 3.7 Mn Tonnes in March 2018. 0.9
Slide 35: Plastic Recycling Market
PLASTIC RECYCLING MARKET The global recycled plastics market was valued at USD 34.80 Bn in 2016 and is expected to reach USD 50.36 Bn by 2022, at a CAGR of Distribution of Global Plastic Production 2017 6.4% during the forecast period (Markets & Markets). The growth in plastic recycling is due t
Slide 36: Growth Strategy
GROWTH STRATEGY Strengthening Enhancing recycling Strengthening Sales Diversification Collection Network Base Network • Starting new scrap • Focus on Value • Diversifying into • New recycling collection centres in Added & new geographies facility in Mundra, - Latin America Customized such as Latin G
Slide 37: Disclaimer
DISCLAIMER Gravita India Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events n