Kiri Industries Limited · NSE:KIRIINDUS
Kiri Industries — Antique Investor Conference 2021
47 slides from Kiri Industries's conference presentation, Feb 23, 2021
Slide 1: Intimation of Investor Conference
CD Kiri Industries Limited ~ (ift 0{- C'cfo.vt<Y... .. February 23, 2021 To, To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Building, Excha nge Plaza, Bandra Kurl a Complex, B.S. Marg, Fort, Mumbai - 400001 Ba ndra (E), Mumbai - 400 051 Scrip Code: 532967 Scrip ID - KIRI
Slide 2: Investor Presentation February 2021
INVESTOR)PRESENTATION February(2021
Slide 3: Executive Summary
Executive'Summary PRODUCTS DyesUIntermediates Dyes BasicUChemicals HDacid ReactiveUdyes Sulphuric Acid VinylUSulphone AcidUDyes Oleum 65%UandU23% SpecialtyUIntermediates NaphthaleneUandUAnilineU DirectUDyes Chloro Sulphonic Acid basedUintermediates DisperseUDyes Thionyl Chloride INDUSTRIES'CATERED O
Slide 4: Company Overview
Kiri Industries Limited COMPANY OVERVIEW
Slide 5: Company Overview
Company+Overview Consolidated+Revenue+Break2up+(INR+Mn)+ 6,625& 3,681& 4,629& 4,879& 6,499& 2,429& 7,461& 7,378& 6,489& 7,340& 6,607& 3,530& • Established in 1998, Kiri Industries Limited (KIL), is based out of Gujarat and has emerged as one of FY16 FY17 FY18 FY19 FY20 9M0FY21 the largest manufactur
Slide 6: Management Team
Management(Team Pravin Kiri (Chairman) • He is a science graduate from Gujarat University and started his career in the year 1966 by associating himself with Jay Chemical Industry (Kharawala Group) as a partner and was responsible for all the technical matters of the group. • He has a wide interest
Slide 7: Key Milestones
Key$Milestones 1998 2004 2006 2008 2010 2013 2015 2018 2020 Incorporation+ Two@Star+ Commercial+ Entered+into+a+ Acquisition+ DyStar Filed+minority+ Achieved+ Kiri+Industries+ of+Kiri+Dyes+ Export+House production+of+ JV+Agreement+ of+assets++++ became+ oppression+ highest+PAT+ became+a+ and+Chemica
Slide 8: Manufacturing Facilities
Manufacturing+Facilities Unit+I,+Unit+II+&+IV Location: Ahmedabad, India. Capacity Installed: • Reactive Dyes : 36,000 MTPA Products manufactured: • Disperse Dyes: 8,000 MTPA • S. O. Dyes • Disperse Dyes Unit+V Location: Vadodara,UIndia. Capacity Installed: • Basic Chemicals : 500 TPD (182,500 MTPA)
Slide 9: Manufacturing Process
Manufacturing+Process Caustic Key Inputs Ice Napthalene Sulphur Sodium(Nitrate Soda(Ash Water Aniline Soda Chlorine Sulphur(&((Bulk(( Chloro Para(Nitro(( Sulphuric(( Oleum((65% Sodium((Bi(((( Thionyl Chemicals(( BetaQNepthol Sulphonic Acetanilide MPD Aniline Acid Oleum((23% Sulphate Chloride Divisio
Slide 10: Geographical Presence
Geographical,Presence AHMEDABAD THE&NETHERLANDS& VADODARA Canada UK& CZECH&REPUBLIC& BELGIUM& SPAIN& HUNGARY ITALY& UZBEKISTAN KOREA USA& PORTUGAL& GREECE TURKEY& CHINA& PAKISTAN& LEBANON TUNISIA& NEPAL& ISRAEL BANGLADESH& TAIWAN& INDIA& EGYPT& UAE HONG&KONG& EL&SALVADOR THAILAND& HONDURAS& PHILIPPI
Slide 11: Awards and Accolades
Awards'and'Accolades Award'for'Export'performance'of' Award'for'Direct' Platinum'Award'for' Trishul Award'for' Chemexcil Gold'Award' more'than'INR'6'Cr'for'Direct' Export'of'Self' Small'Scale'Sector' Small'Scale'Sector' 2006$07 export'of'Self'Manufactured'Dye' Manufactured'Dyes' 2002$03 2005 and'Dye
Slide 12: Key Strengths
Key$Strengths • High entry barriers due to a stringent process of acquiring new permissions. • Heavy capital expenditure. Entry$Barrier • Strict implementation of environmental and pollution norms. • The Company established a track Competitive$ record of longHterm relationship with Position key glob
Slide 13: Business Overview
Kiri Industries Limited BUSINESS OVERVIEW
Slide 14: Business and Product Mix
Business'and'Product'Mix Revenue5Break=up5(FY14)5 Thionyl Chloro Chloride Other5 Basic5Chemicals Sulphonic Speciality5 1% Acid Chemical Oleum Dyes Vinyl5 43% 65%5&5 Intermediates Dye' Sulphone 23% Basic' 56% Chemicals Intermediates 3% 52% Sulphuric5 H=Acid Acid5 Revenue5Break=up5(FY20) Dyes' Basic5C
Slide 15: Value Chain – Dye Stuff Manufacturing
Value&Chain&– Dye&Stuff&Manufacturing Raw*Materials*for*Dyes* Aniline**Naphthalene*** In8house*Acids*and*Usage*of Intermediates*such*as*VS,*H8 B8Napthol MPD,*etc. effluents*&*by8products Acid,*Gamma*Acid,*K8Acid* MUA,*etc. Result*of*Zero*Waste* Dyes* Inputs Intermediates Manufacturing*process Dyestuff
Slide 16: Benefits of Zero Waste
Benefits(of(Zero(Waste OperatingGG Efficiency • The Company’s focus on becoming a EntryGGGGGGGGGGGGGGG SuperiorGG Zero Waste company has ensured Barrier ReturnGRatios that Spent Acids are a source of revenue (converted into commercially viable products) and not a source of expense (frees the hassles o
Slide 17: Dyestuff – An Overview
Dyestuff(– An(Overview Dyestuff are organic and inorganic substances which can absorb light as well as reflect some light to show colour. The dyestuff is also a water soluble substance. Criteria for a Suitable Dyestuff • Economical(/(Competitive • Better brightness • NonHtoxic • Better fastness • Co
Slide 18: Dyestuff Manufacturing Process
Dyestuff(Manufacturing(Process Diazotization+ of+Amine+ ++HCl ++ Sodium+ Nitrite+++ Water+++Ice+ Dissolving+of+ Coupling+ Coupling+of+ Component Diazo+with+ Blending+and+ (Coupling+ Coupling+ Clarification Standardization Spray+Drying fine+ Packing Component+++ Components+++ standardization Water+++
Slide 19: Reactive Dyes
Reactive(Dyes • Reactive Dyes are the most versatile and popular class of Organic Dyes for importing colour on cellulosic fibres. • These are water soluble dyes which react to fibre, forming a direct chemical linkage with the application materials, which is not easily broken and offers good wash fas
Slide 20: Disperse Dyes
Disperse'Dyes • Disperse dyes are synthetic organic dyes and is a kind of organic Fastness'to'wet'treatment Fastness'to'dry'heat substance which is free of ionizing group. They are less soluble in water and are used for dyeing synthetic textile materials. In%terms%of%providing%satisfactory% Sublimat
Slide 21: Other Dyes
Other'Dyes ACID'DYES • Acid dyes are the dyes which can be applied directly to the application materials from an aqueous solution (without mordant). • The Company has been working on developing Acid dyes since a decade. It has been manufacturing this range of dyes for a long time. • Colours Availabl
Slide 22: Dyes Intermediates
Dyes%Intermediates TotalZRevenueZ(INRZMn)Z&ZGrossZMarginsZ • Dyes intermediates are the main raw materials used for manufacturing dyestuffs. (Standalone) • The manufacturing chains of dyes and dyes intermediates can be traced back to petroleum;based 46% 47% 43% 42% products. 35% 33% • Naphtha and na
Slide 23: Dyes Intermediates – H-Acid
Dyes%Intermediates%– H0Acid H0ACID • H#acid is one of the leading dyes intermediates in the world, used in the manufacture of black dyes. • H#acid (8#amino# 1#hydroxynaphthalene#3,6#disulfonic acid), an important dye intermediate, is produced from Naphthalene by a combination of the unit processes o
Slide 24: Dyes Intermediates – Vinyl Sulphone
Dyes&Intermediates&– Vinyl&Sulphone& VINYL&SULPHONE& • Vinyl Sulphone is an industrial chemical used as a key raw material for manufacturing reactive dyes, having application mainly in textiles. It is manufactured from aniline. • It has applications in the manufacturing of Reactive dyes. • The Compa
Slide 25: Basic Chemicals
Basic&Chemicals • As part of strategic backward integration, the Company has set up a Basic Chemical facility to Total2Revenue2(INR2Mn)2&2Gross2Margins2 manufacture: (Standalone) • Sulphuric Acid • Chloro Sulphonic Acid • Thionyl Chloride 37% • Oleum 36% 36% 36% • All these products are made in one
Slide 26: Future Outlook
Future&Outlook • Lockdown on account of COVID19 impacted the The commissioning of the said projects shall business operations of the Company as well as empowered KIL to: the global economy; The company has achieved • Supplement more products in the current PreDCovid level operational capability in p
Slide 27: DyStar
Kiri Industries Limited DYSTAR
Slide 28: About DyStar
About&DyStar • The DyStar Group is a leading dyestuff and chemical manufacturer and solution provider, offering a broad portfolio of colorants, specialty chemicals, and services to customers across the globe. • With a heritage of more than a century in product development and innovation for the text
Slide 29: History
History 1995 2002 2007 2012 2016 DyStar was founded in 1995 as a FOUNDATION ACQUISITION: ACQUISITION: FOUNDATION: ACQUISITION: JOINT, Color Texanlab Sustainable, Emerald, joint venture between Hoechst AG VENTURE,OF: Solutions, Textile, Performance, and Bayer Textile Dyes. In 2000, the Bayer,AG,and,
Slide 30: Value Creation in DyStar
Value(Creation(in(DyStar SUCCESSFULLY(TURNING(AROUND(THE(OPERATIONS(OF(DYSTAR The turn*around plan was successfully executed by replacing high cost German manufacturing base with low cost manufacturing in India, China and Indonesia, etc. KIL is entitled to profit shares of INR 826 Mn, INR 1,976 Mn,
Slide 31: Industry Overview
Kiri Industries Limited INDUSTRY OVERVIEW 30
Slide 32: The Colourant Industry
The$Colourant Industry$ • Global colorants market is forecast to witness a CAGR of around 9% during 2020 – 2025. The market is driven by the rising inclination of consumers towards innovative and appealing shades of packaged products and items. Moreover, the increasing need for dyestuff in numerous
Slide 33: Dyestuff Industry
Dyestuff(Industry Dyestuff Industry: The global dye market is expected to witness a growth of USD 8.75 billion by 2023 with a CAGR of 8.13%. The dyes and dyestuff industries play a major role in the growth of the chemical industry. Dyes intermediates are products that are transformed to finished dye
Slide 34: Indian Dyes Intermediates Industry
Indian#Dyes#Intermediates#Industry Dyes Intermediates Industry: • In terms of value, DI accounts for 47% (~USD 1.9 Bn) of the total colourant industry in India and posted a CAGR of 16.8% from 2009 to 2016. • Over 70% of the DI industry in India is organised due to the clients’ preference for fully c
Slide 35: Industry Overview
Industry)Overview Indian)Colourant)Industry) Global)Colourant)Industry) Indian)Colourant)Industry) Share)Globally % 5.0 6% R:; 5. 8.4 CA G ;1 :;4.8% 38.4 : GR CAGR CA % 30.1 21.90% 5.3 GR:;1 23.8 CA 4.1 13.50% 2 8.40% 2011 2016 2021 2011 2016 2021 2011 2016 2021 RoE)and)RoCE India's)Colourant Domest
Slide 36: India's Competitive Advantage
India’s&Competitive&Advantage China&Factors Advantage&India 2014>present China Factors: (Industry is shifting to other Asian In China, apart from the ETP countries; India is well placed to hurdle, there is: grab the opportunity) 1. Reduction in the refund of 2014<present VAT from 17% to about 13% In
Slide 37: Strategic Overview
Kiri Industries Limited STRATEGIC OVERVIEW 36
Slide 38: The Way Forward
The$Way$Forward Focus(on( Focus(on(((( establishing( Focus((((((((((((( Focus(on( setting(up( Inorganic(and( joint(ventures( on(Free(((((( expanding(the( Set(up( Focus(on( manufacturing( organic( with( Cash(Flow( existing( manufacturing( leading(MNCs( strengthening( facility(of( growth( Generation(
Slide 39: Financial Overview
Kiri Industries Limited FINANCIAL OVERVIEW 38
Slide 40: Standalone Income Statement
Standalone)Income)Statement PARTICULARS,(INR,Mn) FY18 FY19 FY20 9M8FY21 Revenue from,Operations 9,013 10,619 9,690 4,140 Total,Expenses 7,712 9,055, 8,729 4,406 EBITDA 1,301 1,564 961 (266) EBITDA'Margin 14.43% 14.73% 9.92% NA Other,Income 33 28 41 17 Depreciation 250 285, 366 273 Finance,Cost 17 44
Slide 41: Standalone Balance Sheet
Standalone)Balance)sheet PARTICULARS,(INR,Mn) FY19 FY20 H18FY21 PARTICULARS,(INR,Mn) FY19 FY20 H18FY21 Equity 6,307 6,730 6,093 Non,Current,Assets 6,922 7,665 7,772 Equity,Share,Capital 313 336 336 a),Property,,Plant,and,Equipment 4,290 4,635 4,565 Other,Equity 5,994 6,394 5,757 b),Other,Intangible,
Slide 42: Consolidated Income Statement
Consolidated+Income+Statement PARTICULARS,(INR,Mn) FY18 FY19 FY20 9M8FY21 Revenue from,Operations 11,352 13,938 13,054 5,941 Total,Expenses 9,542 11,628, 11,193 5,606 EBITDA 1,810 2,310 1,861 335 EBITDA'Margin'(%) 15.94% 16.57% 14.26% 5.64% Other,Income 16 27 53 18 Depreciation 341 376, 444 326 Fina
Slide 43: Consolidated Balance Sheet
Consolidated+Balance+sheet PARTICULARS,(INR,Mn) FY19 FY20 H18FY21 PARTICULARS,(INR,Mn) FY19 FY20 H18FY21 Equity 15,673 19,334 19,566 Non,Current,Assets 15,673 18,919 19,621 Equity,Share,Capital 313 336 336 a),Property,,Plant,and,Equipment 4,769 5,062 4,965 Other,Equity 15,360 18,998 19,230 b),Other,
Slide 44: Consolidated Financial Highlights
Consolidated+Financial+Highlights Operational+Revenue+(INR+Mn) EBITDA+(INR+Mn)+& PAT+(INR+Mn)+&+PAT+Margins+(%) EBITDA+Margins+(%) 13,938 15.94% 16.57% 1,576 13,054* 14.26% 11,983 11,352 13.27% 1,267 11,119 11.14% 2,310 1,095 1,157* 1,810 1,861* 1,590 1,239 11.16% 11.31% 257 9.14% 8.86% 2.50% FY16 F
Slide 45: Capital Markets
Capital'Markets Share'Price'Data'as'on'31st December'2020 60% 40% 20% 0% 920% 940% 960% Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Kiri Sensex Price'Data'(31st'December,'2020) INR Shareholding'Pattern'as'on'31st'December,'2020 Face'Value' 10.0 Market'Price' 5
Slide 46: Disclaimer
Disclaimer Kiri Industries Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all
Slide 47: Thank You
THANK YOU Kiri Industries Limited 46