Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Century Plyboards (I) — Investor Presentation (February 2011)
30 slides from Century Plyboards (india)'s investor presentation, February 2011
Slide 1: Century Plyboards (I) Ltd. Investor Presentation
Century Plyboards (I) Ltd. Investor Presentation February 2011
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 30 mn sqm / 122,000 CBM - Plywood Integrated Cement manufacturing facility 149,000 CBM - Timber peeling-Veneer with Captive Power Plant 2.4 mn sheets - Laminates 4.4 MT
Slide 6: Corporate Structure
Corporate Structure Plywood & Laminates Century Plyboards Ferro Alloys & Power (I) Ltd. 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, Managing Director Sanjay Agarwal , Jt. Managing Director Responsible for the overall strategic direction Heads Marketing & Branding of Ply & Cement Started Ply business & successfully diversified Successfully launched and created brands into emerging grow
Slide 8: Key Management Team
Key Management Team S.B. Roongta, MD - CMCL Ashutosh Jaiswal, President - Logistics Doyen of the Cement Industry, previously with Heads Logistic Business and International Trade Birla Vikas Cement, Satna Cement, Lok Cements, of Plywood Business Thalavadi Cements etc. 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 FY2010
Segment contribution in FY2010 Rs. crores Revenue Contribution EBIT Contribution Cement; 451; (38)% Cement; Ferro & 134; Ferro & Power; 91; (65)% Power; 14; (7.6)% (7)% Logistics & Others; 40; Logistics & (3)% Others; 10; (5)% Plywood & Plywood & Laminate; Laminate; 48; 619; (23)% (51%) Major Capaci
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. Share of organized sector is 30% Reduction in excise duty beneficial for organized sector growth Overall Industry expected to grow at 15% Organized sector to grow at a faster pace of 20% - 25% Growth Drivers 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 Top 100 most valuable brands of India as per 4P Survey 2010, now One of Nation’s top 200 Power Brands – ‘Legacy’, ‘Recall’ & ‘Trust’ 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 Raw material availability & cost - Crucial for long term sustainability of business Evaluating linkage opportunities globally Entry into ready-made Furniture business Active consideration of entry into ready made furniture In discussion with Internationa
Slide 17: Cement Business
17 Cement Business EMENT IS5E ZABARDAST SETTING MAHIN CENTURYPLY
Slide 18: Cement Industry - NER of India
Cement Industry - NER of India Structurally deficit cement market > 30% cement demand met from outside 30% of demand met from outside region 100% 4.8 MTPA installed capacity in region 53% 30% 33% 32% 80% Cement demand growth in NER higher than average growth in Country 60% 70% 67% 68% Over las
Slide 19: 4.4 MT Cement Capacity by Q4 FY12
4.4 MT Cement Capacity by Q4 FY12 1.2 MT Capacity operational since Dec 2004 Located at Lumshnong, Meghalaya Cinkerisation unit with an operating 225 km from Guwahati capacity of 0.8 MT 125 km from Shillong Two grinding units with total capacity of Well connected to other parts of NER 1.2 MT L
Slide 20: Location Advantages
Location Advantages Quality limestone reserves of more than 100 years Captive mines of high quality limestone 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 21: Unique marketing strategy
Unique marketing strategy Focused brand development ‘Star Cement’ – Awarded most preferred Cement Brand Commands ~18% market share in NER Branding campaigns with regional stars Strong management focus on Brand development Arrangement with renowned advertising agencies like Rediffusion, BNAS, G
Slide 22: Logistic & Ferro Alloys Business
Logistic & Ferro Alloys Business 22
Slide 23: Logistic Business
Logistic Business Heavily congested due to consistent traffic growth Kolkata Eastern region witnessing strong economic activities Port Container traffic at Kolkata expected to grow at 20% CAGR Need for development of efficient CFS facilities to decongest port Jetty operations at Falta, EPZ nea
Slide 24: Ferro Alloy & Power
Ferro Alloy & Power Ferro Alloy Industry growth directly linked to Steel Industry Strong Indian Economic growth to drive steel sector Largest manufacturing unit with 18 MVA capacity in North East region Plant established in 2001 2 nos. submersible arc furnaces of 9 MVA each 10,620 MT Ferro S
Slide 25: Financial Highlights
Financial Highlights setae pLy Chosen by the Indian Consumer BRAND 2010-2011
Slide 26: Segment Financials
Segment Financials Rs. Crores Ply & Lam Cement Ferro Alloy Logistics 9M FY11 FY10 9M FY11 FY10 9M FY11 FY10 9M FY11 FY10 Net Sales 581 617 337 451 63 59 23 20 Other Income 0 1 2 7 0 0 - - Expenses 533 564 226 299 44 43 14 9 EBITDA 47 55 113 159 20 16 9 11 Margin 8% 9% 33% 35% 31% 27% 38% 55% Interes
Slide 27: Consolidated Financials – 9M FY11
Consolidated Financials – 9M FY11 Rs. Crores 9M-FY11 9M-FY10 YoY FY10 Net Sales 1,013 837 21% 1,162 Other operating Income 8 20 29 Expenditure 824 658 920 EBITDA 197 200 -1% 271 Margin 19.4% 23.9% 23.3% Other Income 4 2 1 Depreciation 37 33 45 Interest 15 18 22 Tax Expense 11 19 22 Net Profit 138 13
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crores 30-Sep-10 31-Mar-10 31-Mar-09 Net Worth 583 487 365 Minority Interest 145 124 97 Total Debt 465 420 407 Deferred tax liability (net) 1 1 0 Total Liabilities 1,194 1,032 869 Net Assets* 560 517 415 Investments 0.5 0.5 0.4 Current Assets Inventories 214 210 170 Su
Slide 29: Proposed Restructuring
Proposed Restructuring Proposal to restructure the business into separate entities Plyboards & Logistic Cement Business Ferro Alloys & Power generation Hived off businesses to be listed separately Business Rationale Focus on core competencies of each business Independent strategy & finan
Slide 30: 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 30
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