Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Century Plyboards (I) — Investor Presentation (March 2012)
32 slides from Century Plyboards (india)'s investor presentation, March 2012
Slide 1: Century Plyboards (I) Ltd. Investor Presentation
Century Plyboards (I) Ltd. Investor Presentation March 2012
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Century Plyboards (I) Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Contents
Contents BUSINESS OVERVIEW 4 PLYWOOD & LAMINATES 12 CEMENT 17 LOGISTICS & FERRO ALLOYS 22 FINANCIALS 25 3
Slide 4: CenturyPly – A Conglomerate
CenturyPly – A Conglomerate 4
Slide 5: Business Overview
Business Overview Plyboards & Laminates Cement Pan‐ India: 5 Manufacturing facilities Largest Cement Producer in NER of India Ë 30 mn sqm / 122,000 CBM ‐ Plywood Integrated Cement manufacturing facility Ë 149,000 CBM ‐ Timber peeling‐Veneer with Captive Power Plant Ë 2.4 mn sheets ‐ Laminates 4.4 MT
Slide 6: Corporate Structure
Corporate Structure Plywood & Laminates Century Plyboards (I) Ltd. Ferro Alloys & Power Logistics 51% 70.48% 51% ASPDPL CMCL ABL Cement Captive Power Plant MTEPL SCML MPL (Grinding) (Clinker) (Power) CMCL: Cement Manufacturing Company Ltd. MPL: Meghalaya Power Limited MTEPL: Megha Technical & Engine
Slide 7: Key Management Team
Key Management Team Sajjan Bhajanka, Chairman Sanjay Agarwal , Managing Director Ë Responsible for the overall strategic direction Ë Heads Marketing & Branding of Ply & Cement Ë Started Ply business & successfully diversified Ë Successfully launched and created brands into emerging growth opportunit
Slide 8: Key Management Team
Key Management Team S.B. Roongta, MD ‐ CMCL Ashutosh Jaiswal, President ‐ Logistics Ë Doyen of the Cement Industry, previously with Ë Heads Logistic Business and International Trade Birla Vikas Cement, Satna Cement, Lok Cements, of Plywood Business Thalavadi Cements etc. Ë Over 25 years experience i
Slide 9: Pan India Presence
Pan India Presence Manufacturing Units Ply & Panel 5 +1 Cement 1 +2 Ferro Alloys 1 Branch Offices Over 35 Distribution Network* Ply & Panel > 20,000 Cement > 2,000 *Includes dealers, sub‐dealers, retail outlets etc. 9 Illustrative map
Slide 10: Segment contribution in FY2012
Segment contribution in FY2012 Rs. crores Revenue Contribution EBIT Contribution Ferro & Ferro & Cement; Logistics; Power; 13; Power; 70; 537; 32% 27; 9% 4% 4% Logistics; 59; 4% Cement; Plywood & Plywood & 139; 49% Laminate; Laminate; 111; 38% 1001; 60% Major Capacity expansion in High Margin Cement
Slide 11: Capacity & Expansion Plan
Capacity & Expansion Plan Business Unit Capacity Expansion Post Expansion Plywood & Allied Plywood CBM 122,420 30,000 152,420 Timber Peeling‐Veneer CBM 149,000 31,000 180,000 Laminate Sheets Nos. 2,400,000 1,200,000 3,600,000 Pre‐Lam. Boards SQM 800,000 800,000 1,600,000 Cement MTPA 1.20 3.20 4.40 C
Slide 12: Plywood & Laminates Business
Plywood & Laminates Business 12
Slide 13: Indian Plywood Industry
Indian Plywood Industry Indian Plywood & Panel Industry is ~ Rs. 12,000 Crs. Ë Share of organized sector is 30% Ë Reduction in excise duty beneficial for organized sector growth Ë Overall Industry expected to grow at 15% Ë Organized sector to grow at a faster pace of 20% ‐ 25% Growth Drivers Ë Growi
Slide 14: CenturyPly – A leading plywood brand
CenturyPly – A leading plywood brand Products Plywood, Decorative Veneers, Laminates and Pre laminated boards Leading lifestyle brand offers complete Interior Decor solution. Production Plywood: 122,000 CBM Laminates: 2.40 mn sheets Capacity Timber Peeling ‐Veneer: 149,000 CBM Pre Lam Board: 0.8 mn
Slide 15: Key Competitive Strengths
Key Competitive Strengths Strong Brand value Ë Top 100 most valuable brands of India as per 4P Survey 2010, now Ë One of Nation’s top 200 Power Brands – ‘Legacy’, ‘Recall’ & ‘Trust’ Ë CenturyPly has been adorned as ‘Master Brand’ by the CMO council Diverse Range – One stop solution for all Ply & pan
Slide 16: Future Horizons
Future Horizons Raw material linkages Ë Raw material availability & cost ‐ Crucial for long term sustainability of business Ë Evaluating linkage opportunities globally Entry into ready‐made Furniture business Ë Active consideration of entry into ready made furniture Ë In discussion with Internationa
Slide 17: Cement Business
Cement Business 17
Slide 18: Resource Rich- NER of India
Resource Rich- NER of India NER is rich in Natural Resources Ë 37% of country’s river waters, 20% of hydra carbons (Oil & Gas ) Opportunities Ë Large quantities of low ash coal resources, limestone and dolomite deposits Increasing Government focus on the Region Ë Significantly below average Infrastr
Slide 19: Persistent Demand Supply Mismatch
Persistent Demand Supply Mismatch Cement demand growth in NER higher > 30% cement demand met from outside than average growth in Country Ë Over last 5 year, 13% CAGR in NER compared to 8% in Country Demand Drivers for the Cement in NER Ë Estimated investments of Rs 1620bn planned in next 5 years Ë H
Slide 20: Operational Capacity - 1.2 MTPA
Operational Capacity - 1.2 MTPA 1.2 MT Capacity operational since Dec 2004 Located at Lumshnong, Meghalaya Ë 225 km from Guwahati Ë 125 km from Shillong Well connected to other parts of NER Ë Located on NH‐44, close to other roads as well Ë Silchar airport is 125 km away Ë Badarpur ‐ nearest railway
Slide 21: Capacity Post Expansion - 4.4 MTPA
Capacity Post Expansion - 4.4 MTPA 3.2 MT Capacity expansion Underway Clinker facility: Closer to source of Raw Material Ë 1.75 MT at Lumshong, Meghalaya Split grinding units: Closer to markets improves economics Ë 1.6 MT at Guwahati, Assam Ë 1.6 MT at Kahelgaon, Bihar 63 MW Captive Power Plant Capi
Slide 22: Location Advantages
Location Advantages Quality limestone reserves of more than 100 years Captive mines of high quality limestone Ë Limestone with calcium oxide content greater than 49% Total mineable area of over 600 hectares Estimated reserve of over 360 mn tonnes Freight Advantage offered by existing set up Cement –
Slide 23: Unique marketing strategy
Unique marketing strategy Focused brand development ‘Star Cement’ – Awarded most preferred Cement Brand Ë Commands ~18% market share in NER Ë Branding campaigns with regional stars Strong management focus on Brand development Ë Arrangement with renowned advertising agencies like Rediffusion, BNAS, G
Slide 24: Logistic & Ferro Alloys Business
Logistic & Ferro Alloys Business 24
Slide 25: Logistic Business
Logistic Business Heavily congested due to consistent traffic growth Kolkata Ë Eastern region witnessing strong economic activities Port Ë Container traffic at Kolkata expected to grow at 20% CAGR Ë Need for development of efficient CFS facilities to decongest port Jetty operations at Falta, EPZ nea
Slide 26: Ferro Alloy & Power
Ferro Alloy & Power Ferro Alloy Industry growth directly linked to Steel Industry Ë Strong Indian Economic growth to drive steel sector Largest manufacturing unit with 18 MVA capacity in North East region Ë Plant established in 2001 Ë 2 nos. submersible arc furnaces of 9 MVA each Ë 10,620 MT Ferro S
Slide 27: Financial Highlights
Financial Highlights scutaeyey Chosen by the Indian Consumer BRAND 2010-2011
Slide 28: Segment Financials
Segment Financials Rs. Crores Ply & Lam Cement Ferro Alloy & Power Logistics FY12 FY11 FY12 FY11 FY12 FY11 FY12 FY11 Net Sales 1001 757 537 480 70 90 59 33 Other Income 4 3 1 5 ‐ ‐ ‐ ‐ Expenses 894 696 399 353 57 45 32 17 EBITDA 111 64 139 132 13 45 27 16 Margin 11% 8% 26% 28% 18% 50% 46% 48% Intere
Slide 29: Consolidated Financials –FY12 & FY11
Consolidated Financials –FY12 & FY11 Rs. Crores 31‐Mar‐12 31‐Mar‐11 YoY Net Sales 1,658 1354 22% Other operating Income 9 6 Expenditure 1382 1111 EBITDA 285 249 14% Margin 17.19% 18.39% Other Income 5 8 Depreciation 55 51 Interest 58 23 Tax Expense 6 (6) Exceptional Items 21 Net Profit 150 189 ‐21%
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crores 31‐Mar‐12 31‐Mar‐11 Net Worth 727 629 Minority Interest 179 156 Non Current Liabilities 663 281 Current Liabilities 618 521 Total Liabilities 2,187 1,587 Net Assets* 1,176 724 Investments 9 6 Long Term Loans & Advances 93 97 Other Non‐current Assets 4 4 Current
Slide 31: Restructuring Update
Restructuring Update To demerge its Ferro Alloys and Cement Division into another Company i.e., Star Ferro and Cement Limited (“SFCL”) w.e.f. appointed date 01st April 2011. The existing shareholders of CPIL will be entitled to 1 equity shares of Rs.1/‐each of SFCL for their holding of 1 equity shar
Slide 32: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Century Plyboards (I) Ltd. Strategic Growth Advisors Pvt. Ltd. Mr. Arun Julasaria, CFO & CS Mr. Gaurang Vasani arun@centuryply.com vgaurang@sgapl.net www.centuryply.com www.sgapl.net 32
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