Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Investor Presentation (June 2018)
76 slides from Carborundum Universal's investor presentation, June 2018
Slide 1: Investor Conference June 2018
CARBORUNDUM UNIVERSAL LIMITED Investor Conference June 2018
Slide 2: Disclaimer
The communication may contain statements relating to future business developments, company’s performance and economic performance that may constitute ‘forward looking statements’. While these forward looking Disclaimer statements represent the company’s judgments and future expectations, a number of
Slide 3: Murugappa Group: Business Portfolio
Murugappa Group: Business Portfolio Agriculture Organic Specialty Bio Fertilisers Pesticides Sugar Sugar Refinery Nutraceuticals Manure Nutrients Products Engineering Electro Industrial Steel Metal Industrial Power IT Infra Abrasives Refractories Bicycles Chains minerals Ceramics tubes/Strips Formin
Slide 4: Murugappa Group Financials
@ Murugappa Group Financials 32,893 Cr. 24,663 Cr. EBITDA Se turnover murugappa . g il 13% Growth 14% Growth Financial (FY 16-17 %29,206 Cr.) (FY 16-17 %4,075 Cr.) Performance 2017-18 Key Highlights $10 billion (267,117 cr) Market Capitalization of the listed companies of the Group as of 31**Mar 201
Slide 5: Murugappa Group - Global Presence
Murugappa Group -Global Presence USA Russia, China Nutraceuticals, Electro Minerals, Industrial France Abrasives Ceramics Industrial Chains Tunisia Phosphoric Acid ME Materials, Thailand Abrasives Materials, Abrasives Marketing & Distribution Bases in Australia Chile South Africa Industrial Ceramics
Slide 6: Murugappa Group - India Presence
Murugappa Group -India Presence Jammu & Kashmir Coromandel Punjab TPI Haryana Uttarakhand CUMI & TII TIMF Ambadi TPI Uttar Pradesh TII Rajasthan Liberty Assam Parry Agro Gujarat Sabero Liberty West Bengal PEIL MMTCL CUMI Coromandel TII Maharashtra Madhya Pradesh TII CUMI Coromandel Liberty TPI Karna
Slide 7: Murugappa Group - Values & Belief
Murugappa Group - Values & Belief
Slide 8: The five lights
e five lights The light of INSEEGRITY that gives us the courage to always do the right thing The light of, ® ‘The light of RESPONSIBI LITY PASZION that gives us the humility to that provides us with think about the world around us the desire to win The light of ‘The light of RESPECT QUALITY that ins
Slide 9: “ZS Z
“ZS Z
Slide 10: CUMI's Inception
CUMI’s Inception • Incorporated as a joint venture in 1954 between Carborundum Company USA, Universal Grinding Wheel Company, UK and the Murugappa, India • Acquired a coated abrasives facility from Ajax products Pvt Ltd • Bonded abrasives facility set up in Chennai India
Slide 11: Carborundum Universal
Carborundum Universal Grinding USA Wheel ,UK Incorporated on April 21, 1954 Business activity - manufacture of Coated Abrasives, Bonded Abrasive, Super- Refractories, Electro- Minerals, Industrial Ceramics, and Ceramic Fibers Over 5000 pl I 28 manufacturing locations across India, South Nay Plus emp
Slide 12: Carborundum Universal Limited Vision and Mission
Carborundum Universal Limited We will be an Admired Company in Become one of the largest Abrasives (including VISION Abrasives & Technical Ceramics, driven by MISSION Super Abrasives) / Technical Ceramics in the Innovation, to create Stakeholder Wealth. Company in the World by 2022.
Slide 13: CUMI: Organization Structure
CUMI: Organization Structure M M Murugappan Chairman K Srinivasan Managing Director N Ananthaseshan Rajesh Khanna V G Rajendran Jayan P S Muthiah M President-Abrasives President - Ceramics Sr. Vice President - EVP – Electro Minerals EVP – Human Resources Refractories
Slide 14: CUMI: Global Presence
CUMI: Global Presence EUROPE RUSSIA CHINA USA UAE THAILAND INDIA SOUTH AFRICA AUSTRALIA India, South Africa, Russia
Slide 15: CUMI Business Portfolio
CUMI Business Portfolio Sales Share Ceramics Abrasives Revenue EBIT : Rs 5.0 bn : Rs 0.8 bn Revenue : Rs 10.2 bn Capital Employed : Rs 3.9 bn EBIT : Rs 1.3 bn Capital Employed : Rs 5.0 bn CUMI – FY 18 Revenue :Rs. 23.3 bn EBIT :Rs. 3.3 bn Capital Employed :Rs. 16.3 bn PBIT Share El
Slide 16: Abrasive Business Division
Abrasive Business Division ABRASIVES - Abrasive Units
Slide 17: Abrasive Business: Overview
Abrasive Business: Overview ‘Engineering’ surfaces BUSINESS DEFINITION By creating precision surfaces on materials Design, manufacture and distribute Rigid, Flexible and Loose abrasives Aerospace | Automotive | Auto Comp | Bearing | Steel | Light/Heavy engineering INDUSTRIES General Engineerin
Slide 18: Key Subsidiaries / Associates
Key Subsidiaries / Associates Sterling Abrasives Wendt India Wendt India - Volzhsky Abrasive Works Subsidiary Joint JointVenture Venture Subsidiary Bonded Non Std Speciality Super SuperAbrasives AbrasivesRange Range Coated & Bonded Abrasives
Slide 19: Global Abrasives Market Size
Global Abrasives Market Size Europe: $3.7 bn Middle Middle East: East: $0.15$0.15 bn bn Coated: $1.5 bn Bonded: $1.6 bn Coated: $53 mn Super Abrasives: $0.6 bn Bonded: $70 mn Gr Rate: 2-3% Super Abrasives:$30 mn Gr Rate: 5-6% APAC: $20.0 APAC: $20.0 bn bn North America: $3.5 bn Coated: $7.0 bn Coate
Slide 20: Bonded Manufacturing
Bonded Manufacturing Chennai Plant -1954 Hosur Plant - 1979 Roorkee Plant - 2007 Custom Built Products High volume Automated Plant Thin Wheels Vitrified | Resinoid and Rubber | Magnesite, Shellac Bond (S) and Oxychloride Bond (OXY) in Aluminium oxide (Brown, White, Semi Friable and Pink ), Silicon C
Slide 21: Product Capabilities- Bonded
Product Capabilities- Bonded General Purpose & Tools Room Wheels Industry Segments Auto, Auto Component General Engineering Hand tool Industry Replacement Market Saw Sharpening Centreless Grinding Through Feed | Infeed |End feed Combination of through feed and Infeed. Major Industries Bearing, Rolle
Slide 22: Product Capabilities - Bonded
Product Capabilities - Bonded Creep Feed Grinding Wheels Industry Segments Aerospace Turbine Engine Manufacturers Gear Grinding Wheels Industry Segments Automobile OEM Automobile Components Heavy Industries Roll Grinding Wheels Industry Segments Steel Industry Hot Rolling Mill Cold Rolling Mill Pape
Slide 23: Product Capabilities – Mass Market
Product Capabilities – Mass Market
Slide 24: Coated Manufacturing
Coated Manufacturing SPR Plant - 2006 MM Nagar - 2002 EAL Kolkata Fully automatic ‘Maker’ Coated Abrasives Back End Manufacturing / for Jumbos; Manufacturing Thin Wheels Converted products Vitrified | Resinoid and Rubber | Magnesite, Shellac Bond (S) and Oxychloride Bond (OXY) Cloth, Paper, Fibre &
Slide 25: Products Capabilities - Coated
Products Capabilities - Coated Sheets & Rolls Fibre Disc Paper|Velcro|Disc Flaps & Mops Belts Non Woven Velcro Disc Paper Disc Application Application Application Application • Finishing wooden patterns Abrasive tools for Extensive usage in • Automobile • Grinding, various industries • Aerospace • S
Slide 26: CAPEX Expansion Projects- Abrasives
CAPEX Expansion Projects- Abrasives • MM Nagar – Adding capabilities to produce all varieties of thin wheels -to address both Domestic and Export markets. • EAL Kolkata – Expansion in coated manufacturing operations for mass market
Slide 27: Operational Excellence Through TPM
Operational Excellence Through TPM JIPM Manufacturing Excellence Award – Bonded Hosur JIPM Manufacturing Excellence Consistency Award – SPR & MMN
Slide 28: Abrasives – Drivers For Growth
Abrasives – Drivers For Growth Automobile The number of automobiles Infrastructure produced in India will reach 29 Logistics, Road transport, million mark railway and real estate is Demand, Policy & Investment going to se an upside CAGR 9% expected Engineering Steel Upcoming railroad, aerospace prom
Slide 29: Abrasives - Performance
Abrasives - Performance INR Million
Slide 30: Electro-Minerals Business Division
Electro-Minerals Business Division ABRASIVES
Slide 31: CUMI Electro-Minerals
murugappa @ CUMI Electro-Minerals ye / Brown Fused Alumina | White Fused Alumina | Silicon carbide Zirconia Specialty minerals Coated Abrasives Metallurgical Investment casting Floor Laminates
Slide 32: CUMI EMD - Facilities
CUMI EMD - Facilities 1 2 1 Bauxite mines & 3 calcination 2 Silicon carbide, 4,5,6 3 Fine powders, 4 Fused alumina 5 Zirconia Bubbles 7 6 Alumina Zirconia 7 12 MW Hydel power, Maniyar
Slide 33: CUMI EMD – Global Facilities
CUMI EMD – Global Facilities VAW - Russia Foskor Zirconia VAW Russia – Silicon Carbide, 80,000 tpa Foskor Zirconia – Fused Zirconia, 5000 tpa
Slide 34: Processing Capabilities
Processing Capabilities Wide range of material processing capabilities
Slide 35: CUMI EMD – Strategy For Growth
CUMI EMD – Strategy For Growth Innovation Value Pyramid
Slide 36: EMD – Drivers For Growth
EMD – Drivers For Growth Energy Abrasives The technological advancement in The growth in the steel, auto and the renewable energy space would infrastructure segment willl propel the drive the consumption of thermal growth in Abrasives, which is the key powders, Zirconia and SiC grains. consumer of o
Slide 37: Capacity Expansion
Capacity Expansion Both Tilt and Pot Fusion plant commenced in FY 17-18
Slide 38: Capacity Expansion
Capacity Expansion Zirconia Bubble Furnace commenced in FY 17-18
Slide 39: EMD Performance
EMD Performance EMD Consol Consolidated Sales & PBIT % % SalesinIndia % 10K 8K 6K ak 2K OK 80% 60% 40% 0% 33% ox murugappa INR Million Marains% FY 07 FY os FYos FY 10 Fyil Fyi2 Fy1i3 Fy 14 Fyis Fy1i6 FY17 Fyis
Slide 40: Industrial Ceramics Division
Industrial Ceramics Division
Slide 41: CUMI – Industrial Ceramics
CUMI – Industrial Ceramics SBU Industrial Ceramics Business Technical Wear Ceramics Group Ceramics Product Lines Grinding Wear Resistant Lined Equipment Engineered Metallized Ceramics Media Liners Ceramics Bulk Material Handling Fluid Handling Vacuum Interrupters Markets and Ceramic Tile/Mineral
Slide 42: Process Capabilities
Process Capabilities Dry Pressing Cold Iso-static Pressing Wide range of Ceramic processing capabilities Extrusion Injection Moulding Slip Casting Metallising
Slide 43: Key Industries Served
murugappa @ 2 Key Industries Served Be WW KEY INDUSTRIES :
Slide 44: Drivers For Growth
Drivers For Growth Transportation / EV The market for ceramic injection molded products and metallized ceramic products in Ceramic Injection Electric Vehicles and other related Moulding) applications is expected to grow Growth would be driven by significantly in the next 5 years. automotive, electro
Slide 45: Impact of Megatrends
Impact of Megatrends Infrastructure Mining Global Rebalancing Manufacturing • Wear Power Generation Protection Urbanisation • Metallized Healthcare Emergence of Cylinders Affluent Power • Engineered Transmission Ceramics
Slide 46: METZ 2.0 Project
METZ 2.0 Project Line has been installed in IC – Hosur, commissioned successfully and currently in operations
Slide 47: Refractories division
Refractories division
Slide 48: CUMI Refractories
CUMI Refractories CUMI REFRACTORY PRODUCTS od Silicon Carbide Conventional Dense Castables Our Technology (CUMIFRAC Range) (CUMICRETE rang: Nitride bonded Silicon Carbide Insulation Castables _ _ (CUMneX, CUMISTAR, CARBORUNDUM iQ) :Fired & Monolithic Products Pee Tse (CUMICRETE LW Range) Fired Produ
Slide 49: CUMI Refractories - Applications
CUMI Refractories - Applications Ceramic Industries Chemical Process Industries Non – Ferrous Insulators Carbon Black Aluminum Copper Zinc Sanitaryware & Tableware Fertilizer Abrasives Petro-Chem. / Refinery Iron & Steel Electro Ceramics Sponge Iron (DRI) Glass Gas-Based Cement Container. Decorative
Slide 50: Capabilities
Capabilities Ability to manufacture complex shapes through pressing, slip casting followed by high temperature sintering, under controlled atmospheric conditions.
Slide 51: Opportunities For CUMI Ref
@ 2 Opportunities For CUMI Ref Glass Melting Furnace
Slide 52: Opportunities For CUMI Ref
murugappa HRSG a s\2\|F High Alumina Ceramics for Renewable Energy ‘Outlet barrel Inlet barrel & Super Critical Turbines . Fe @ _ Opportunities For CUMI Ref ae Passive Fire Protection Ceramics for SOFC Gasification Projects FGD Systems CFBC Boilers Circulating Fluidised Bed Combustion Boiler
Slide 53: Ceramics (IC + Refractories) Performance
Ceramics (IC + Refractories) Performance INR Million
Slide 54: Company Financials
Oo B&B. Company Financials
Slide 55: Revenues, Margins & Growth
Revenues, Margins & Growth INR Million
Slide 56: Performance Ratios - Returns
Performance Ratios - Returns
Slide 57: Performance Ratios – Debt to Equity
Performance Ratios – Debt to Equity
Slide 58: Investor Friendly Organization
Investor Friendly Organization • 42.42% held by the Murugappa Group, 29.34% held by FII’s, MF, PE, Insurance Cos • 64 years of unbroken track record of Profit and Dividend • Six Bonus Issues since inception – 89% of the current Equity is by way of capitalization of Reserves • Growth over the years e
Slide 59: Research & Development
Research & Development DSIR approved R&D Facility in IC Hosur R&D Surface Technology Center - Abrasives The Company along with its subsidiaries/ jv/ associates - has set up 7 state of the art DSIR (Department of Science and Industrial Research) approved R&D centres at all its divisions. They are as
Slide 60: Research & Development
Research & Development NPD Through Design Thinking 47 IP filings In FY-1718 International Symposium of Advances in Abrasives Technology - Japan Across all business units of CUMI, there has been continuous focus of technology innovations leading to achieving a total of 47 IPs in form of Patents, Desi
Slide 61: Awards & Accolades
Awards & Accolades Award for Excellence in Consistent TPM commitment, Maraimalai Nagar Abrasives Plant Award for Excellence in Consistent Award for TPM Excellence, Category Award for TPM Excellence, Category A, TPM commitment, Coated A, Bonded Abrasives Division, Industrial Ceramics Division, Hosur
Slide 62: Awards & Accolades
Awards & Accolades CUMI was awarded the Golden Peacock Award for Corporate Governance
Slide 63: Awards & Accolades
Awards & Accolades EMD was awarded Prof. Sashadhar Ray Memorial Award 2017 for Industrial Excellence [Innovation of new products and products of import substitution] by the Indian Ceramic Society.
Slide 64: Awards & Accolades
Awards & Accolades Runners Up in “Most Diversified Exporters” Category - ECGC Indian Exporters’ Excellence Awards 2017
Slide 65: Awards & Accolades
Awards & Accolades CUMI Electro Minerals has been awarded with ‘Strong Commitment to HR Excellence Award’ by CII for the year 2017-18.
Slide 66: Exhibitions & Conferences
Exhibitions & Conferences Westec Exhibition – Los Angeles
Slide 67: Exhibitions & Conferences
Exhibitions & Conferences GrindTec Exhibition – Augsburg, Germany
Slide 68: Exhibitions & Conferences
Exhibitions & Conferences TPM National Conference
Slide 69: Exhibitions & Conferences
Exhibitions & Conferences INTEC Trade Fair Power Generation Expo - Thailand Ceramics Expo in Japan Hannover Fair 2017
Slide 70: Exhibitions & Conferences
Exhibitions & Conferences Conference on Aerospace and Defence Manufacturing Technologies - Bangalore
Slide 71: Going Glocal
Going Glocal Organi Di Transmissione, Schleifen + Polieren Italy Germany Schleifen + Polieren Jan 2018 Jan 2018 Germany Sep 2017 German Catalogue Italian Catalogue Italian Website
Slide 72: Corporate Social Responsibility 2017-2018
oO Corporate Social Responsibility | »> Corporate Social Responsibility 2017-2018
Slide 73: CSR: Health, Education & Infrastructure
CSR: Health, Education & Infrastructure Education CUMI supports Vellayan Chettiar School through AMM Foundation. Various units have signed MOUs with academia and train the students in plant, prime example being CCSD, which helps students to learn and get placed. Community Group and individual counse
Slide 74: CSR: CCSD Epitome of Skill Building
CSR: CCSD Epitome of Skill Building Development Area Technical knowledge, 25% • Responsible Citizens • Employability-Industry ready • Industry Best Practices • Social Orientation • Care and Concern to EHS Skill Development, 25% Approach • Attitude/Behavioural training • Practical Training/Factory Or
Slide 75: CSR: CCSD epitome of skill building
CSR: CCSD epitome of skill building
Slide 76: murugappa
murugappa
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