Satia Industries Ltd · NSE:SATIA
Satia Industries — Investor Presentation (November 2019)
38 slides from Satia Industries's investor presentation, Nov 19, 2019
Slide 1: Submission of Analyst/Investor Presentation cover letter
An ISO 9001, 14001 & OHSAS 18001 company Manufacturer of Quality 18_ 1848 e SATIA Writing, Printing & Speciality {BJQI ? Paper with ECO MARK INDUSTRIES LIMITED CIN: - L21012PB1980PLC004329 Sil/CS Date: 19.11.2019 -=7--::-=-??????????????----.?????????????????? The Manager, The Manager Listing Depart
Slide 2: Investor Presentation November 2019
SATIA INDUSTRIES LIMITED INVESTOR PRESENTATION November 2019 SATIA INDUSTRIES LIMITED AN ISO 9001, 1400 & OHSAS 18001 COMPANY 1
Slide 3: Executive Summary
Executive Summary Company Overview Key Clientele • Incorporated in 1980, Satia • SIL has long standing Industries Limited (SIL), is one of relationship with State the biggest and completely Text book Corporations integrated Wood and Agro and around 40% of based paper manufacturers. revenue comes fro
Slide 4: Company Overview
SATIA INDUSTRIES LIMITED AN ISO 9001 , 1400 & OHSAS 18001 COMPANY Company Overview 3
Slide 5: About The Company
About The Company Operational Revenue (INR Mn) & EBITDA Margin (%) 7,384 6,421 5,708 4,336 22% 21% 19% • Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its 16% 4,283 12% commercial production of printing and writing paper at Muktsar, Punjab in 1984. • SIL is one of th
Slide 6: Key Management Personnel
Key Management Personnel R.K. Bhandari (MBA) - Joint Managing Director Looks after marketing and other administrative responsibilities since the last 32 years Chirag Satia - Executive Director Chirag has been driving force behind new inititatives since he joined in 2015 and looks after Finance, Acco
Slide 7: Key Milestones
Key Milestones Started production using a Power Increased Additional Power generation single paper machine with Production cogeneration capacity of the capacity of 10.45 MW and Achieved a the capacity of 4,950 crossed plant (5MW) power plant to New Solar plant with capacity significant MTPA 10,000 M
Slide 8: Geographical Presence
Geographical Presence Region-wise sales for FY19 Region-wise sales for FY19 Jammu & Kashmir J Delhi 1.3% 12.8% Punjab Uttar Pradesh 8.4% 18.1% Haryana Assam 3.7% 5.8% Rajasthan West Bengal 9.1% 2.3% Gujarat Bihar 1.4% 0.8% Maharashtra Madhya Pradesh 13.7% 2.1% Telangana Distributors (70) Chhattisgar
Slide 9: Manufacturing Facilities
Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Segment • Continuous Digester for • Capacity of paper machines • Installed two Chemical • Installed three turbine cooking pulp, oxygen varies with operating speed Recovery boilers with a capex generat
Slide 10: Capex Plan
Capex Plan Agro – Residue Updates • Additional land has already been purchased • Set of Equipments & Machinery Wood chips has already been ordered • Final Hearing for environmental compliance is expected to take place with the Ministry of Waste Paper Capacity Environment & Forests, Delhi Current Cap
Slide 11: Paper Cutlery Segment
Paper Cutlery Segment • Prime Minister Sh. Narendra Modi gave an ambitious call to eliminate all single-use plastic products in the country by 2022 and SIL plans to make most of this opportunity in the national movement to replace plastic and styro foam from food delivery packaging with sustainable
Slide 12: Paper Making Process
Paper Making Process Stage 1 Continuous Cooking Cooked Elemental Pulp & Unbleached Stage 2 with caustic Black Chlorine Cleaned Pulp Agro soda which Liquor Free Stock Preparation Wet Raw Washing, Brown passes Bleaching Stage 3 Residue Washing Material through (Sodium Refining, Pulp (Environ- Lignate)
Slide 13: Effluent Treatment
Effluent Treatment Recovery Boiler Calcium Carbonate Organic matter burns and Inorganic matter (Limestone) acts as fuel Treated with Sold in markets Black Liquor becomes Calcium (Sodium Sodium Carbonate Hydroxide Sodium Hydroxide (Caustic Soda) Lignate) Reused after 90 -95% recovery rate Wheat straw
Slide 14: Top Clients
Top Clients £ L. A vS’sjc fr sn cwrfe'sfsra ’ Assam State Text Book Production & Bal Bharti Odisha State Bureau of Textbook Publication Corporation Ltd. BurdaDruck Burda Druck India Private Limited Chhattisgarh Pathya Pustak Nigam Rajasthan Rajya Pathyapustak Mandal Burda Druck India Private Limited
Slide 15: Myths Vs Realities of the Paper Industry
Myths Vs Realities of the Paper Industry Myth Reality Paper industry in India is also agro and rural based. Industry led agro/farm forestry in collaboration Denuding forests with farmers have brought over 125,000 hectares under pulp wood plantations. It is wood positive. The industry grows more tree
Slide 16: Certifications
Certifications / Rainforest Alliance ^ Certificate of t ^ I Certificate of W Certificate of Sr Registration 4”- - Registration Registration ** • . . * J&kMf btmJfym This is to certify that * 7J*W This is to certify that tv * This is to certify that SATIA INDUSTRIES LIMITED VILLAGE - RLPANA MUKTSAR M
Slide 17: Key Strengths
Key Strengths $ Wheat Straw is cheap and easily available locally Low cost raw materials 27.95 MW capacity run on Biomass and process intermediate- Black Liquor Co-power generation to reduce cost No other paper mill in a 100 Km radius Secure access to raw materials 3 Branch Offices and 70 Distributo
Slide 18: Business Overview
SATIA INDUSTRIES LIMITED AN ISO 9001 , 1400 & OHSAS 18001 COMPANY Business Overview 17
Slide 19: Writing and Printing paper: Products
Writing and Printing paper : Products Snow White Super Snow White Ultra White Ultra Shine Ultra Print Features: Features: Features: Features: Features: Brightness: 85% Brightness: 89% Brightness: 85% Brightness: 88% Brightness: 90% Whiteness: 133% Whiteness: 142% Whiteness:133 % Whiteness: 142 % Whi
Slide 20: Writing and Printing paper: Products
Writing and Printing paper : Products Coloured Paper Cover Paper Natural Shade Photo Copier Ledger Features: Features: Features: Features: Features: Brightness- NA Brightness- 85% Brightness- 82% Brightness- 90% Brightness- 58% Whiteness- NA Whiteness- 133% Whiteness- 70% Whiteness- 142% Whiteness-
Slide 21: Operating Efficiency
Operating Efficiency 2,50,000 Production, Revenue and Profit Trend 2,12,858 8,000 2,06,400 7,384 1,94,204 7,000 2,00,000 6,421 6,000 1,60,631 1,43,440 1,44,429 5,708 1,50,000 5,000 4,336 4,000 3,978 3,931 1,00,000 3,000 2,000 50,000 1,578 1,284 1,000 875 372 531 449 - - FY14 FY15 FY16 FY17 FY18 FY19
Slide 22: Strategic Advantage
Strategic Advantage • SIL has the capability and flexibility to use all three kinds of pulp made from agro residue, wood and waste paper. • It procures raw materials like wheat straw, sarkanda and wood chips from the area adjacent to Raw the manufacturing plant in Punjab. Material Security • No othe
Slide 23: Future Growth Strategy
Future Growth Strategy With a strong raw material base, doubled production capacity to over 2.0 lac tons paper every year and with a flexibility to make high grade surface sized 03 maplitho and copier paper along with our traditional stronghold in Government textbook paper market; we plan to expand
Slide 24: Environmental Compliance
Environmental Compliance Environment Compliance though a legal necessity; SIL considers this as its moral responsibility and has undertaken many steps to ensure that no harm is done to the environment: • Eucalyptus Plantation : SIL uses the natural quality of Eucalyptus Plant for natural pumping and
Slide 25: Karnal Technology
Karnal Technology Process N/ Low Cost 'V // V • The expenditure of adopting this technology involves • The Karnal Technology involves growing v vU s cost of making ridges, plantation and their care. trees on ridges 1m wide and 50cm high ' • The implementation does not involve skilled labour wand dis
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility SIL believes that the corporate sector are economic organs of the society and therefore endeavors to make a positive difference to the society by trying to build a better tomorrow. • Total amount spent in FY19: INR 11.2 Mn • Total amount spent during FY18: INR 4.9 Mn
Slide 27: Industry Overview
SATIA INDUSTRIES LIMITED AN ISO 9001 , 1400 & OHSAS 18001 COMPANY Industry Overview 26
Slide 28: Paper Industry Overview
Paper Industry Overview • Globally, India is the fastest growing paper market – 5-year (FY11 - FY16) with a CAGR of 5 Year CAGR % FY11 to FY16 consumption is 8% in comparison to 1% globally. 10% • Paper demands grow in tandem (gain momentum) with the GDP growth rate in a country. 8% 8% Over the last
Slide 29: Paper Industry Overview
I Paper Industry Overview • India is the fastest growing major paper market in the world. • An appreciating rupee made imports attractive in FY17. • Anti-dumping duties were imposed by the US in 2016 and 2017, which led to diversion of supply from US to Indian markets. • Free Trade Agreements with A
Slide 30: Challenges of Environmental Compliance
Challenges of Environmental Compliance • The pulp and paper industry is among the world’s largest generators of air and water pollutants, waste products and gases that cause climate change. Thus, heavy investment is required by companies to be environmentally compliant. Multiple norms have been intr
Slide 31: Indian Paper Industry is Ripe for Consolidation
Indian Paper Industry is Ripe for Consolidation High Capital Intensity - Investment in land and machinery, repairs and maintenance of mills, technology, cost of environmental compliance, growing wood plantations and establishing a distribution network all make manufacturing paper a capital intensive
Slide 32: Financial Overview
SATIA INDUSTRIES LIMITED AN ISO 9001 , 1400 & OHSAS 18001 COMPANY Financial Overview 31
Slide 33: Income Statement
Income Statement PARTICULARS (INR Mn) FY16 FY17* FY18* FY19* H1-FY20* Operational Revenue 4,336 5,708 6,421 7,384 4,283 Total Expenses 3,801 4,799 5,203 5,743 3,369 EBITDA 535 909 1,218 1,641 914 EBITDA Margin 12.34% 15.93% 18.97% 22.22% 21.34% Other Income 165 211 303 145 116 Depreciation 332 400 4
Slide 34: Balance Sheet (IND-AS)
Balance Sheet (IND-AS) PARTICULARS (INR Mn) FY18 FY19 H1-FY20 PARTICULARS (INR Mn) FY18 FY19 H1-FY20 Equity 2,226 3,076 3,574 Non-Current Assets 3,540 4,505 5,012 Equity Share Capital 100 100 100 a) Property, Plant and Equipment 3,119 3,827 3,623 Other Equity 2,126 2,976 3,474 b) Capital Work In Pro
Slide 35: Financial Highlights
Financ ial High lights Opera tional Reven ue (IN R Mn) 3 years CAGR: 19% 4,336 5,708 6,421 7,384 EBITDA (INR M n) & EB ITDA M : argin ( / ; 3 years CAGR: 45% %) / / / : PAT (IN R Mn) & FY16 12.34% 15.93% 18.97% 22.22% PAT M FY17 / argin ( FY18 / %) 3 years CAGR: 88% FY19 535 909 7.98% 10.70% 11.89%
Slide 36: Capital Market Data
Capital Market Data 60% 50% 40% 30% 20% 10% 0% -10% Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Satia Sensex Price Data (30th October, 2019) INR Shareholding Pattern as on 30th September, 2019 Face Value 1.0 Market Price 77.0 52 Week H/L 85.00 / 47.13 Public 4
Slide 37: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 38: Thank You
SATIA INDUSTRIES LIMITED AN ISO 9001 , 1400 & OHSAS 18001 COMPANY Thank You 37
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