Tube Investments Of India Limited · NSE:TIINDIA
Tube Investments Of India — Investor Presentation (June 2017)
74 slides from Tube Investments Of India's investor presentation, June 2017
Slide 1: Investor Presentation
Investor Presentation June 2017 Stock Codes: BSE: 504973 NSE: TUBEINVEST Bloomberg: TI IN / TI IB Reuters: TUBE.NS / TUBE.BO CIN: L35921TN1949PLC002905 Tube Investments of India Limited 1
Slide 2: Index / Contents
Index Contents Table of Contents Page No Corporate Profile 3 Manufacturing Businesses • Engineering 20 • Cycles and Accessories 31 • Metal formed products 44 • Gears and Gear Products – Shanthi Gears Limited 62 Financial Service Businesses • Cholamandalam Investment and Finance Company Limited 72 •
Slide 3: Murugappa Group and Philosophy
Murugappa Group and Philosophy Market Gross Sales Share Company Name Description Other Capitalisation 2% Cholamandalam Investment and Finance Company Limited is a INR 1,50,722 Mn. Non Banking Finance Company and one of the leading financial CUMI EID (USD 2,325 mn) provider for vehicle finance, busin
Slide 4: TII Milestones
TII Milestones • TI Cycles setup with BSA and Hercules 1949 Brands • Entered Precision tubes with 1955 incorporation of Tube Products of India • Entered Chains business with 1960 incorporation of TI Diamond Chains Limited 1965 • TI Metal Forming setup • Promoted Cholamandalam 1978 Investment and Fin
Slide 5: TII Milestones
TII Milestones • Promoted Cholamandalam MS General 2001 Insurance along with JV Partner Mitsui Sumitomo Insurance, Japan 2010 • Acquired SEDIS, France 2012 • Acquired Shanthi Gears Ltd, a listed Company • Entered into Large Dia Tube manufacturing 2014 • Promoted TI Tsubamex Pvt Ltd along with JV Par
Slide 6: List of Subsidiaries and Joint Ventures
List of Subsidiaries and Joint Ventures figures in INR Mn. FY 2016-17 % Company Nature of Business Total Shareholding PAT Income Financiere C10 SAS (FC 10) Manufacturing of Chains 100% 2,323 12 Shanthi Gears Limited (SGL) Manufacturing of Gears 70.1% 2,146 225 Design and TI Tsubamex Private Limited
Slide 7: Corporate Overview
Corporate Overview Manufacturing Businesses • Engineering Segment (Tubes, Value Added Cold Key Financials (TII Consolidated) – IND AS Rolled Strips, & Tubular Components) INR Mn. 2016-17 2015-16 % Gr • Cycles and Accessories (Bicycles & Fitness Revenue from Operations 115,206 103,241 12% Products) E
Slide 8: TII (Standalone) Businesses
TII (Standalone) Businesses Engineering Cycles and Accessories Metal Formed Products ERW & CDW Tubes, Bicycles, Chains for Automobile sector & Value Added Cold Rolled Strips & fitness products and Industrial applications, Tubular Components accessories Doorframe & Channels for Passenger Cars • Leade
Slide 9: Share Price and Shareholding Pattern
Share Price and Shareholding Pattern Shareholding Pattern 100% 26.20% 25.90% 25.70% 25.40% 23.90% 80% 12.30% 9.60% 12.20% 11.10% 14.40% 60% 16.30% 13.20% 14.70% 12.90% 13.20% 40% 48.30% 48.20% 48.90% 48.80% 48.80% 20% 0% Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Promoter FII DII Others Share Price Movement
Slide 10: Key Standalone Financials 2016-17
Key Standalone Financials 2016-17 figures in INR Mn. FY Particulars % Growth 2016-17 2015-16 Gross Sales / Income from Operations 42,078 40,414 4% Total Income from Operations 44,159 42,120 5% EBITDA 3,601 3,503 3% % to Gross Sales 9% 9% PBIT (before exceptional items) 3,099 2,757 12% % to Gross Sal
Slide 11: Performance Trends
Performance Trends Gross Sales figures in INR Mn. 44,000 42,078 42,000 40,414 40,000 39,162 38,000 36,423 36,094 36,000 34,000 32,000 2012-13 2013-14 2014-15 2015-16 2016-17 Note: Gross Sales include Excise Duty to comply with IND AS and figures has been suitably adjusted EBITDA and EBITDA% 4,000 3,
Slide 12: Performance Trends
Performance Trends figures in INR Mn. PBIT and PBIT% (Before Exceptional Items) 3500 3099 7.6% 3000 2644 2757 7.4% 7.4% 2552 7.3% 2595 2500 7.2% 2000 7.0% 7.0% 1500 6.8% 6.8% 1000 6.6% 6.6% 500 6.4% 0 6.2% 2012-13 2013-14 2014-15 2015-16 2016-17 ROCE% 20% 16% 16% 14% 14% 13% 13% 12% 8% 4% 0% 2012-13
Slide 13: Performance Trends
Performance Trends figures in INR Mn. PAT 10000 7,309 1,209 6327 1000 367 1962 1040 941 842 982 100 2012-13 2013-14 2014-15 2015-16 2016-17 PAT (Before Exceptional Items) Exceptional Item Dividend Per Share - in INR Face Value Per Share - INR2 6 5* 5 4 3 2 2 2 2 1.25^ 1 0 2012-13 2013-14 2014-15 201
Slide 14: Performance Trends
Performance Trends Earnings Per Share (Basic)- In INR Face Value Per Share - INR2 50.00 39.04* 40.00 30.00 20.00 10.47 10.00 5.58 5.04 6.46 0.00 2012-13 2013-14 2014-15 2015-16 2016-17 *Higher due to exceptional income (Net). Earnings per Share on Normal profits would be INR 5.24 (2014-15 : INR 4.50
Slide 15: Performance Trends
Performance Trends Capex in INR Mn 2,500 2,172 2,000 1,689 1520 1,500 1,358 1240 1,000 500 0 2012-13 2013-14 2014-15 2015-16 2016-17 Total Debt/Equity 1.20 1.10 1.10 1.08 1.00 0.80 0.68 0.60 0.37 0.40 0.20 0.00 2012-13 2013-14 2014-15 2015-16 2016-17 Strong Credit Rating CRISIL AA for long term and
Slide 16: Scheme of Arrangement – Demerger
Scheme of Arrangement – Demerger • Segregating the Manufacturing Businesses under the Scheme of Demerger to a separate Company Scheme of • Board Approved the Scheme on 3rd November 2016 Arrangement • Appointed date is 1st April 2016 • The Scheme is subject to necessary regulatory approvals • Compris
Slide 17: Rationale for Demerger
Rationale for Demerger Both manufacturing and financial services can focus on their line of businesses Operational rationalisation, organisation efficiency and optimum utilisation of various resources Ability to leverage financial and operational resources of each business Each business would be abl
Slide 18: Demerger – Resultant Structure
Demerger – Resultant Structure Previous Structure 49% 51% 49% 51% 49% 51% TI Financial Services Tube investments TI Manufacturing Company Company Financial Services Business Manufacturing Business • Cholamandalam MS General Insurance • Engineering (Tubes and Strips) Company Limited • Cycles and Acce
Slide 19: Manufacturing Businesses
Manufacturing Businesses Engineering Cycles and Accessories Metal Formed Products Gears and Gear Products 19
Slide 20: Engineering (Tubes and Strips)
Engineering (Tubes and Strips) Leader in CDW tubes for the Automotive industry 20
Slide 21: Engineering - Two Wheeler Application
Engineering - Two Wheeler Application Two-Wheeler sales in India has grown at 7% in FY 16-17 (3 year CAGR of 6%) 21
Slide 22: Engineering - Four Wheeler Application
Engineering - Four Wheeler Application Passenger Car Sales in India has grown at 4% in FY 16-17 22 (3 year CAGR of 2%)
Slide 23: Engineering - Business Drivers
Engineering - Business Drivers Business Mix FY 2016-17 Precision Steel Tubes (CDW) largely used in Non Automobile applications of Two Wheelers/ Auto 23% Passenger Cars and Commercial Vehicles for applications like Front Forks, Side impact beams, steering columns etc Auto 77% CDW tubes also used
Slide 24: Engineering - Key Success Factors
Engineering - Key Success Factors • Market leader in High Quality & Safety critical CDW Tube CDW Tubes for 2W and 4W applications • Leadership position with 56% market share • Only manufacturer with plants at 4 different Multi Location locations closer to customers • Large-dia plant setup in October
Slide 25: Engineering - Major OEM’s Serviced
Engineering - Major OEM’s Serviced LUK India 25
Slide 26: Engineering - Awards and Recognitions
Engineering - Awards and Recognitions Star Performer Award for Global Strategic Supplier Award Exports from EEPC from Showa, Japan, 29th Mar 2017 Outstanding Kaizen Supplier Performance QCC Award 26 Award from QCFI Award from Sona Koyo from Wipro
Slide 27: Engineering - Awards and Recognitions
Engineering - Awards and Recognitions Award from WIPRO for consistent “Global Strategic Co-operation Best supplier Award for Make in India improvement in Quality Award” from Showa Corporation (Localization) from M/s Spicer for Tiruttani Tubes Plant OSHSAS 18001 Certification for TPI Mohali IMS:
Slide 28: Engineering - Business Highlights 2016-17
Engineering - Business Highlights 2016-17 Volume Growth across the segments over PY Strips grew by 7% Tubes Exports grew by 85% Growth in PBIT by 54% Large Diameter plant stabilized Sales mix from New Products higher than plan IS513 Certification obtained for CRSS 2 teams won awards
Slide 29: Engineering - Key Financial Trends
Engineering - Key Financial Trends figures in INR Mn. Sales ROCE % 30% 26% 19,324 24% 24% 17,912 25% 16,380 16,848 17,097 20% 14% 15% 15% 10% 5% 0% 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Note: Gross Sales include Excise Duty to comply with IND AS Based on Ave
Slide 30: Engineering - Key Financials 2016-17
Engineering - Key Financials 2016-17 figures in INR Mn. Particulars 2016-17 2015-16 % Growth Strips: (Volumes Tonnes) (Incl. Group) 82,273 77,535 6% Tubes: (Volumes Tonnes) 168,689 154,208 9% Domestic 149,110 143,605 4% Exports 19,579 10,603 85% Large Dia Tubes: (Volumes Tonnes) 21,733 15,303 42% Gr
Slide 31: Cycles and Accessories
Cycles and Accessories Pioneers in Promoting Cycling… not just cycles 31
Slide 32: Cycles - Industry
Cycles - Industry Trade Sales – FY 16-17 Standard Bicycles In trade sales, the share of 54% 66% standard bicycles is coming down over the years 46% Government orders for standard 34% cycles has increased with more and Industry TII more rural welfare schemes Standards Specials Trade Market Shar
Slide 33: Cycles - Business Drivers
Cycles - Business Drivers Cost competitiveness in Standard bicycles and mass specialty bicycles Product differentiation, Branding and Service are key to success in premium end of bicycles Rapid increase in internet penetration throwing up new channels and opportunities Rising aspiration towards cycl
Slide 34: Cycles - Our Brands
~A Ba MACH CITY TRACK& TRAIL CYCLES AND MONE cannondale Bianchi (>) Cc=a7F Mongoose *
Slide 35: Cycles - Key Success Factors
Cycles - Key Success Factors • BSA Hercules brands command a premium and is know Brand equity for good finish and features • Roadeo and Montra are premium brands well received and seen exceptional growth Premium • Representing International brands like Cannondale, Cycle Group Bianchi, Ridley (PCG) •
Slide 36: Cycles - Key Success Factors
Cycles - Key Success Factors • Organised 2000+ events all over the country with Promoting participation of more than 10 Lakhs individuals in Cycling not FY 16-17 Just Cycles • Some well known events are Gran Fondo, Cyclothon etc • TI Cycles is the only company with 4 manufacturing Multi plants and 5
Slide 37: Renewed Retail Experience – Track and Trail
Renewed Retail Experience – Track and Trail Continuously expanding Track and Trail retail experience with 85 new stores during the FY 16-17 37
Slide 38: India’s first Cycling Theme Café - Ciclo Café
India’s first Cycling Theme Café - Ciclo Café Ciclo Café spun off as a new Joint Venture and 2 more opened in Gurgaon and Hyderabad in prime locations during the year FY 16-17 38
Slide 39: Online Bicycle Brand- Brooks
Online Bicycle Brand- Brooks Now live at brooksbicycle.com and Flipkart Offered with complete Assembly and After sale service 39
Slide 40: Cycles – Awards and Recognitions
Cycles – Awards and Recognitions BSA Lady Bird wins the Hercules Trooper won the India Brand Revitalization BSA Lady Bird Vogue won the Design Mark awarded by the Award from CMO Asia CII Design Excellence Award India Design Council Mach City won the Best Emerging Brand Award @ the National Awards fo
Slide 41: Cycles - Business Highlights 2016-17
Cycles - Business Highlights 2016-17 30% growth in Premium Cycles Group (Premium Geared, Super Premium and International brands) Exceptional Growth delivered by Mach City and Montra brands Robust Growth in Exports with healthy order book Institution orders received from Governments in Karnat
Slide 42: Cycles - Key Financial Trends
Cycles - Key Financial Trends figures in INR Mn. Gross Sales ROCE % 13,475 70% 64% 12,732 13,241 11,959 14,826 57% 56% 60% 50% 40% 34% 30% 20% 12% 10% 0% 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Note: Gross Sales include Excise Duty to comply with IND AS Based
Slide 43: Cycles - Key Financials 2016-17
Cycles - Key Financials 2016-17 figures in INR Mn. Particulars 2016-17 2015-16 % Growth Volumes Cycles (Million nos) 4.0 4.6 -14% Gross Sales (incl. Inter Unit) 13,475 14,826 -9% EBITDA 445 859 -48% 3% 6% PBIT (Before Exceptional Item) 357 788 -55% 3% 5% APPLICATION OF FUNDS Net Fixed Assets (Incl.
Slide 44: Metal Formed Products (Chains, Doorframes and Fine Blanking)
Metal Formed Products (Chains, Doorframes and Fine Blanking) Precision Value added Components 44
Slide 45: Metal formed - Product Profile
Metal formed - Product Profile Metal formed products division cater to both automotive and non-automotive segments as below: TI Metal formed Products Automotive: Business Mix 2016-17 Two Wheeler drive chains, timing chains and Sprockets for Auto-OEMs and After Market 11% Fine Blanked parts a
Slide 46: Metal formed Products – Industry
Metal formed Products – Industry Automotive Sector: Two-Wheeler sales has seen a 3 Year CAGR of 6% Scooters 3 Yr CAGR: 20% Motor Cycles 3 Yr CAGR: 2% India GDP Growth Rate Passenger Vehicles has seen a 3 Year 7.1% 7.2% CAGR of 2% while Commercial 6.3% Vehicles seen a decline of 2% 5.4% Non-A
Slide 47: Metal formed Products – Business Drivers
Metal formed Products – Business Drivers Auto OEM, Fine Blanked Products , Industrial Chains and Roll Formed Products • Adequate Capacity • Good push in the service • Quality, Consistency and reliability • Cost Competitiveness • Factories located closer to customer locations • New Product Developmen
Slide 48: Auto Chains– Industry and Customers
Auto Chains– Industry and Customers Industry Two Wheeler Manufacturers (OEMs) Segments Spare Parts Market – Auto Chains and Sprockets for Motor Cycles Key Customers: 48
Slide 49: Auto Chain- Products
Auto Chain- Products Drive Chain KIT CAM Chain After market brand 49
Slide 50: Fine Blanking - Industry and Customers
Fine Blanking - Industry and Customers Industry Two Wheeler – Motor Cycles and Scooters OEMs Segments Four Wheeler – Passenger and Commercial Vehicle OEMs and Tier-I Companies Industrial Applications 4W OEMs 4W Tier - I PH A Best Customers Koki 2W OEMs Industrial 50
Slide 51: Fine Blanking - Products
Fine Blanking - Products Engine Parts Transmission Parts Motor Cycle Engine and Transmission Parts Scooter Seat Parts Braking System Parts Seat Belt and Door Parts Steering Parts Transmission Parts Engine Parts Hood Parts 51
Slide 52: IC/ECC - Industry and Customers
IC/ECC - Industry and Customers Industry Segments Construction Equipment Key Customers Manufacturers Material Handling ( Fork Lifts ) Agricultural Equipment Manufacturers Cement and Power IWIS Germany BEA Italy Conveyer Manufacturers Textile and Packing Mitsubish- Caterpillar Primary Metals (Steel)
Slide 53: Industrial Chains - Products
Industrial Chains - Products Power Transmission and Conveying Chains Agricultural Chains Engineering Class Chains 53
Slide 54: Roll Formed – Industry and Customers
Roll Formed – Industry and Customers Industry Four Wheelers- Passenger Car and Commercial Vehicle OEMs Segments and Tier-I Companies Two Wheelers- OEMs and Tier-I Companies Indian Railways – Coach and Wagon Factories 54
Slide 55: Roll Formed - Products
Roll Formed - Products Four Wheelers Car Door Frames Divisional Channels Side Impact Beams Cowl Cross Beam Two Wheelers Motor Casings Railways 2W - Mudguard 55
Slide 56: Metal formed - Key Success Factors
Metal formed - Key Success Factors • Market leader in Drive and Cam chains in Auto OEM segment Segment Leader • Leadership position in Domestic Industrial Chains • Preferred supplier for Roll formed Door Frames • Significant player in Fine Blanking Components • Strategically located plants close by
Slide 57: Metal formed - Key Success Factors
Metal formed - Key Success Factors • PPM maintained lesser than customer target • Quality Commitment (Zero Defect) Award from Autoliv Quality • TPM Excellence Award from Bajaj Auto for Hyderabad TIDC Plant • Gold Award from Bajaj Auto for Fine Blanking Quality Performance • Catering to major 2W OEMs
Slide 58: Metal formed – Awards and Recognition
Metal formed – Awards and Recognition Awards received from Bajaj Auto Ltd for Fine Blanking Quality Commitment (Zero Defect) Quality and TPM Excellence Award from Autoliv Quality Award from Maruti Suzuki India “ Excellence in Part Development” award Ltd for Fine Blanking from Lear Corporation for se
Slide 59: Metal formed - Business Highlights 2016-17
Metal formed - Business Highlights 2016-17 Market Leadership in Chains and Doorframes Revenue Growth across Segments over PY Auto After Market Kits grew by 9% Domestic Industrial Chains grew by 9% Fine Blanking grew by 12% Doorframes grew by 6% Significant Growth in Motor casings and R
Slide 60: Metal formed - Key Financial Trends
Metal formed - Key Financial Trends figures in INR Mn. Sales ROCE % 14,000 25% 21% 12,000 10,911 19% 9,947 20% 9,618 16% 17% 10,000 8,735 8,829 15% 14% 8,000 6,000 10% 4,000 2,000 5% - 0% 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Note: Gross Sales include Excise
Slide 61: Metal formed - Key Financials 2016-17
Metal formed - Key Financials 2016-17 figures in INR Mn. Particulars 2016-17 2015-16 % Growth Doorframes ('000 Sets) 675 637 6% Sections for railway wagons (Sets) 1764 1156 53% Coach-side/End wall (Sets) 159 112 42% Chains: Domestic (Million ESS feet) 84.7 84.3 0% Exports (Million ESS feet) 7.4 7.2
Slide 62: Gears & Gear Products
Gears & Gear Products Shanthi Gears (SGL) - Strong Brand in Industrial Gears 62
Slide 63: Shanthi Gears - Business Overview
Shanthi Gears - Business Overview Shareholding Pattern • Began operations in 1969 at Coimbatore 100% 24.5% 25.6% 22.9% 24.2% 24.8% • Acquired by TII in 2012 80% 5.3% 4.3% 7.0% 5.7% 5.1% • High EBITDA Margin Business 60% • Leader in custom-made gears & loose 40% 70.1% 70.1% 70.1% 70.1% 70.1% gears 20
Slide 64: Integrated Gear Box Manufacturing Facility
Integrated Gear Box Manufacturing Facility State-of-the-Art Gear Manufacturing facility In-House Heat In-House Foundry Treatment Shop (CI & SG Iron) for (Case carburising & Casing Gas Nitriding) Shanthi Gears In house Non- In-House Forging In-house Fabricated Ferrous Casting facility to take care Sh
Slide 65: Shanthi Gears - Gears and Gearboxes
Shanthi Gears - Gears and Gearboxes Spur/ Helical Pinion Shaft Internal Gear Worm and Straight Spiral Bevel Gear Wheel Bevel Worm Gearboxes- Worm Gearboxes- Worm Gearboxes- Adaptable Standard Special Helical Gearboxes Bevel Helical Gearboxes 65
Slide 66: Shanthi Gears - Key Customers
Shanthi Gears - Key Customers 66
Slide 67: Shanthi Gears - Business Highlights 2016-17
Shanthi Gears - Business Highlights 2016-17 New Products launched at First All India Dealer Meet organized in Nov 2016: Elite ( Std Helical), Worm Plus (Std Worm) and Power Plus (Gear Coupling) Achieved highest order booking and production Growth of 12% in Sales and 27% in PAT over PY Opex i
Slide 68: Shanthi Gears - Business Highlights 2016-17
Shanthi Gears - Business Highlights 2016-17 Shanthi eStore launched for Textile Product Customers to buy online Customer Connect Meets to discuss the latest trends in the industry Dedicated Gearbox Service Centre launched at Coimbatore Some of the prestigious deliveries done in the year to N
Slide 69: Shanthi Gears - Key Financial Trends
Shanthi Gears - Key Financial Trends figures in INR Mn. Sales ROCE % 2,500 12% 1,999 10% 9% 2,000 10% 1,793 8% 1,590 1,667 1,650 8% 8% 1,500 6% 5% 1,000 4% 500 2% - 0% 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Note: Gross Sales include Excise Duty to comply with
Slide 70: Shanthi Gears - Key Financials 2016-17
Shanthi Gears - Key Financials 2016-17 figures in INR Mn. Particulars 2016-17 2015-16 % Growth Gross Sales 1,999 1,793 11% EBITDA 356 306 16% 18% 17% PBIT 285 232 23% 14% 13% PBT 285 232 22% 14% 13% PAT 225 177 27% 11% 10% APPLICATION OF FUNDS Net Fixed Assets (Incl. CWIP) 661 736 Investments 1,314
Slide 71: Financial Service Businesses
Financial Service Businesses Cholamandalam Investment and Finance Company Ltd. (CIFCL) Cholamandalam MS General Insurance Company Ltd., (CMSGICL) 71
Slide 72: Cholamandalam Investment and Finance
Cholamandalam Investment and Finance figures in INR Mn. Particulars 2016-17 2015-16 % Growth Disbursements 185,913 163,803 13% Total Income from Operations 46,603 41,937 11% % of Disbursements 25% 26% PBT 11,056 8,708 27% % of Total Income 24% 21% PAT 7,187 5,685 26% % of Total Income 15% 14% ROTA%
Slide 73: Cholamandalam MS General Insurance
Cholamandalam MS General Insurance Particulars 2016-17 2015-16 %Growth figures in INR Mn. Gross Written Premium (Incl. RI 31,425 24,658 27% Accept) Net Written Premium 25,701 20,575 25% PBT 3,007 2,163 39% PAT 2,081 1,480 41% Total Investment 49,048 38,607 27% Combined Ratio (CoR%) - Excl 104.5% 104
Slide 74: Corporate Office
Corporate Office: Tube Investments of India Ltd. "Dare House", 234 N S C Bose Road, Chennai- 600 001, India. +91 44 4217 7770 +91 44 4211 0404 info@tii.murugappa.com -------------------------------------------------------------------------------Disclaimer----------------------------------------
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