Raymond Limited · NSE:RAYMOND
Raymond — Merger or Acquisition (November 2023)
17 slides from Raymond's merger presentation, Nov 3, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
RL/SE/23-24/171 November 3, 2023 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500330 Symbol: RAYMOND Dear Si
Slide 2: Raymond Ltd. forays into Aerospace, Defense and EV Components through acquisition of MPPL
Raymond Ltd. Forays into sunrise sectors of Aerospace, Defense and EV Components Business through Acquisition of Business of: MAINI PRECISION PRODUCTS LTD. (MPPL) November-2023
Slide 3: Current Engineering Business
CURRENT ENGINEERING BUSINESS 1
Slide 4: JKFEL — Current Product Portfolio
JKFEL — Current Product Portfolio Market leading position in key precision engineering products STEEL FILES RING GEARS #1 in India #1 in India with 60%+ with Market Share: Market Share • ~55% in PV • ~45% in CV Steel Files Ring Gears Flex Plates STEEL FILES FLEXPLATES #1 in Global Sole Domestic Inst
Slide 5: JKFEL — Business Overview
JKFEL — Business Overview P&L Overview (FY23) SALES MIX in FY23 ₹ 123 Cr. ₹872 Cr. EBITDA 43% Tools & Hardware 65+ 57% Auto Component REVENUE ~14% Countries EBITDA MARGIN GEOGRAPHICAL MIX 6 51% Domestic More than ~120 700+ Mfg. Plants 49% 6 Decades Export Major Customers Domestic Distributors of Exp
Slide 6: JKFEL — Current Engineering Business Strategy
JKFEL — Current Engineering Business Strategy 3 2 MARGIN IMPROVEMENT • Building operational efficiencies across manufacturing and supply chain processes 1 EXPAND • Add new customers and products • Manufacturing efficiency – Outsourcing, Ancillaries, Modernization and Automation • Develop new engine
Slide 7: MPPL — Product Portfolio
MPPL — Product Portfolio Engine Components Hydraulics & Industrial Structure Components Clean Powertrain System Components Power Tools Fuel Injection AEROSPACE & DEFENSE ELECTRIC & HYBRID AUTO AND INDUSTRIAL Supplying products to diversified customer base including leading Aerospace & Defense, Globa
Slide 8: MPPL — Leading Exporter of Precision Components
MPPL — Leading Exporter of Precision Components Business Overview P&L Overview (FY23) SALES MIX in FY23 ₹ ~97 Cr. Auto Industry 750+ Cr. ₹ EBITDA 25 77% 23% Aerospace REVENUE ~13% Countries EBITDA MARGIN GEOGRAPHICAL MIX 11 Domestic Nearly 5 decades ~60 Major Customers ~350 Personnel as part of the
Slide 9: Building a Stronger Scalable Combined Engineering Business
Building a Stronger Scalable Combined Engineering Business Our Strategy is significantly boosted by this acquisition CURRENT Business Strategy 1 CONSOLIDATE Strong Auto Component business catering to leading OEM 2 EXPAND Entry into sunrise sectors of Aerospace, Defense and EV 3 MARGIN IMPROVEMENT Op
Slide 10: Empowering 'Make in India' Dream
Empowering 'Make in India' Dream A Strategic Acquisition Leveraging the 'China Plus One' JKFEL MPPL Combined Entity ‘Newco’ Aero & Defence T&H 23% 30% SALES Auto SALES SALES* T&H ₹872 Cr. 43% Auto ₹750+ Cr. Auto ~₹1,600 Cr.. 57% 77% 59% 11% Aero & Defence More than 60% Supplying products Structured
Slide 11: Resulting Shareholding Structure
Resulting Shareholding Structure Step: 1 Step: 2 Acquisition of Business of Simplification of Maini Precision Product (MPPL) Engineering Entities Structure RPAL* will acquire Shareholding Post Consolidation 59.25% Stake in MPPL RPAL NCI# for a consideration of ₹682 Cr. Raymond Ltd. 66.3% 5.2% MPPL G
Slide 12: Transaction Summary
Transaction Summary Acquisition of Business of Acquisition being funded by mix Post acquisition, MPPL by acquiring 59.25% of Debt and Internal Accruals consolidation of business of stake of MPPL for ₹682 Cr. of Engineering business JK Files, RPAL & MPPL in Transaction to be completed ‘Newco’ in FY24
Slide 13: Consolidated Engineering Business — Way Forward
Consolidated Engineering Business — Way Forward FY’23 4 year Particulars (Proforma) Outlook Sales ~₹1,600 Cr. High teens growth EBITDA ~₹220 Cr. Over 20% growth Growth Driving Factors: 1 2 3 Complementing Sunrise Sectors of Customers to Scale Aerospace, Defense & Significant up Auto Component EV Com
Slide 14: Transformation Journey in Raymond Group
Transformation Journey in Raymond Group Demonstrating affirmative actions Selling FMCG Group becoming Demerger of Lifestyle Business Net Cash Surplus business under progress Building scale in Shaping scalable Real Engineering business Estate Business with acquisition of business of MPPL With strong
Slide 15: Raymond Group: Primed for Growth
Raymond Group: Primed for Growth RAYMOND GROUP Three Distinct Vectors Of Growth 1 2 3 Lifestyle Real Estate Engineering Business (Branded Consumer Company) • Branded Textile • Thane land Development • Tools and Hardware (₹ 25,000 Cr + Revenue Potential) • Branded Apparel • Auto Component • Garmentin
Slide 16: Chairman & Managing Director Message
Chairman & Managing Director Message This acquisition will catapult the growth of our Engineering business and will open new vistas to us for our foray into rapidly growing segments like Aerospace, Defense, and Electric Vehicles (EV). Raymond Group has always believed in the ‘Make in India’ initiati
Slide 17: Thank You
THANK YOU