Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Day (August 2023)
147 slides from Apar Industries's investor day presentation, Aug 24, 2023
Slide 1: Exchange filing cover letter
SEC/2408/2023 E-Filing August 24, 2023 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Corporate Relations Department, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai – 400 051. Mumbai - 400 001. Scrip Symbol : APARINDS Sc
Slide 2: APAR Industries Limited Investor Day 2023
APAR INDUSTRIES LIMITED INVESTOR DAY 2023 ASCENDING PASSIONATELY, ACHIEVING RESPONSIBLY 24th AUGUST 2023 1 Investor Day Presentation – August 2023
Slide 3: Today's Agenda
Today’s Agenda BUSINESS CONDUCTORS SPECIALITY OILS CABLE TELECOM FINANCIAL ESG & OVERVIEW & TURNKEY & LUBRICANTS SOLUTIONS SOLUTIONS OVERVIEW SUSTAINABILITY
Slide 4: Business Overview
INVESTOR DAY PRESENTATION Business Overview Mr. Kushal Desai - CMD Mr. Chaitanya Desai - MD
Slide 5: About APAR
About APAR Our Mission (Why we exist): Our Values: To design & manufacture Building Blocks for Energy Infrastructure, Transportation & Telecommunication Sectors that contribute meaningfully to make this world a more energy efficient, environmentally sustainable and safer place. A P A R I A N Our Vis
Slide 6: About APAR
About APAR One of the core principles that originated from Dr. Desai which continues as a best practice at APAR: “Be in the top 3 in each business segment that APAR is in. This has propelled us to be very focused on our business verticals, to be the best in those defined areas and to lead the innova
Slide 7: Our Businesses
Our Businesses Leading the innovation curve as the world’s 3rd largest transformer oil manufacturer and with a comprehensive range of over 350 products in speciality oils, process oils & lubricants. Largest exporter of Transformer oils from India. Leading the innovation curve as the largest one-stop
Slide 8: Globally, we see growth opportunities in
Globally, we see growth opportunities in Addition of Transmission Infrastructure Renewable energy Expansion Development Wind, Solar & Nuclear Public Transportation Manufacturing, Telecom (incl Mobility) China + 1 7 Investor Day Presentation – August 2023
Slide 9: Addition of Renewable energy
Addition of Renewable energy SECTOR OPPORTUNITY APAR ADVANTAGE o Solar Installed capacity is expected to grow by 225 GW o Leader in the domestic solar cable segment and most & Wind installed capacity is expected to grow by 55 GW dominant player in domestic wind market with over during 2024 to 2030 i
Slide 10: Renewables – strong opportunity for all business verticals
Renewables – strong opportunity for all business verticals Renewable Power Generation Power Transmission (Sub Station/Grid) Power Distribution String Cables, Low Voltage Cables, Nacelle Wiring, Transformer Oil, CTC Conductors PICC Conductors, T&D Traditional Application based Cables and Wires, APAR
Slide 11: Public transportation (incl. Mobility)
Public transportation (incl. Mobility) SECTOR OPPORTUNITY APAR ADVANTAGE o Infrastructure investments in Indian railways, Metros and o Supply of locomotive coaches, forward integration into High-speed rail to grow exponentially harness. Largest cables supplier for Vande Bharat trains o Market leader
Slide 12: Infrastructure growth, Manufacturing, China+1
Infrastructure growth, Manufacturing, China+1 SECTOR OPPORTUNITY APAR ADVANTAGE o Governments are allocating investments in building o Lubricants for off road equipment for infrastructure Infrastructure extensive road networks for freight transportation, ports, development which includes, cranes, ro
Slide 13: Transmission expansion
Transmission expansion SECTOR OPPORTUNITY APAR ADVANTAGE o 80,000 ckm of transmission lines added and 350,000 o Distributed sites for renewable energy requires MVA of transformation capacity added in last 5 years in application of Conductors, Cables & transformer oils in India renewable generation s
Slide 14: Telecom
Telecom SECTOR OPPORTUNITY APAR ADVANTAGE o Digital transformation evolving faster o End to end telecom solutions provider for hybrid copper and fibre cables o The GB per smartphone will grow 25% CAGR shall reach 55 GB per mobile till 2028 in India o 10 bn mobile connections with 64% mobile internet
Slide 15: What has played well for us (1/3) Premiumisation
What has played well for us (1/3) Premiumisation o Shift from conventional conductors to High efficiency conductors. Premium products in Indian market and standard products in premium market leading to optimised margins o Competitive advantage in EPC turnkey solution for reconductoring High transmis
Slide 16: What has played well for us (2/3) Globalisation
What has played well for us (2/3) Globalisation o Overall presence in 140+ countries. Expanding into global markets with exports reaching 50% of topline in FY 23 across all divisions both individually and collectively o Synergy across divisions for common customers of conductor, cables and transform
Slide 17: What has played well for us (3/3) Innovation & Robustness
What has played well for us (3/3) Innovation & Robustness – solving customer’s problems Leading the innovation curve. Some notable innovations in the past includes: o Only Indian Transformer oil manufacturer and supplier for 800kV HVDC applications o High performance biodegradable renewable transfor
Slide 18: To sum up
To sum up Our fundamentals are strong. We see sustained growth opportunities in our sectors at a global level. Our focus in solving tomorrow’s solutions today for our customers enables us to lead the innovation curve. APAR embodies a long-term pursuit of excellence, where our DNA drives us to keep A
Slide 19: Thank You
Thank You
Slide 20: Conductors and Turnkey Solutions
INVESTOR DAY PRESENTATION Conductors and Turnkey Solutions Mr. Surya Shoban Babu – Sr. VP (Marketing)
Slide 21: Overhead Conductors Global Market Overview
Overhead Conductors Global Market Overview: Global investment in (T&D) infrastructure is expected to reach $2.2Trillon next 10Years. Key Drivers are: Growing Demand of Electricity: 50% of demand will increase in next 10years o Electrification of Transport System o Economic growth o Population Growth
Slide 22: Overhead Conductors Market Overview
Overhead Conductors Market Overview: Indian Govt investment in (T&D) infrastructure is expected to reach $30 Billion next 10Years. Key Areas are: Domestic Market Construction of New Transmission & Distribution lines: o 28000ckm of Transmission lines by 2028, 1,80,000km of distribution lines o Which
Slide 23: Transformation journey of APAR Conductors
Transformation journey of APAR Conductors o Bus Bar is launched for use in high voltage & low voltage equipment o Introduced a premium product line viz., o Introduced Copper Railway conductors as per RDSO o One of the first company to successfully test 765 HTLS- ACCC & Turnkey project – specificatio
Slide 24: APAR Conductors – Product Profile
APAR Conductors – Product Profile Conventional Conductors HTLS Conductors Railway Conductors Specialty Alloy Rods OPGW ACS Wire CTC/PICC Turnkey Solutions BUSBAR Except conventional conductors & certain rods, others are premium conductors 23 Investor Day Presentation – August 2023
Slide 25: Conventional Conductors
Conventional Conductors Earth Wire o Products: ACSR, AAAC, ACAR, AAC, GUY WIRE, AL-59 o Industries we cater to: Power Transmission & Distribution Conductor o Customers: Power Utilities, EPC, Contractors and Distributors. Strong leadership & competitive edge o Manufacturing since 1958, developed stro
Slide 26: HTLS Conductors – ACCC, ACSS, GAP, STACIR
HTLS Conductors – ACCC,ACSS, GAP, STACIR Technology tie-up with CTC-Global, USA, for ACCC conductors APAR’S PRESENCE IN HTLS….50,000 KMS HTLS o Supplied in Domestic & Export Markets 35,000+ KMs HTLS which is also working Satisfactorily o Completed 140+ Power Transmission Lines Reconductoring Project
Slide 27: Optical Ground Wire (OPGW)
Optical Ground Wire (OPGW) o APAR OPGW in-house design and development. OPGW PROJECT: o We can provide end to end customized solutions. Safely OPGW Installation work on tallest tower 125M under 400kv Chamera-Jalandhar link. o We cater OPGW for special conditions & applications for snow-bound locatio
Slide 28: Aluminium Specialty Alloy Rods & Wires – Largest Global Exporter
Aluminium Specialty Alloy Rods & Wires – Largest Global Exporter Industries we cater to, o Electrical grade aluminium alloy wires - 6101, 6201 grade o Cable Industries, Nut & Bolt Manufacturing o Mechanical grade aluminium alloy wires - 5052, 5154, 5050, 6061 grade o Fittings & Accessories o Welding
Slide 29: Railway Overhead Conductors
Railway Overhead Conductors o We are No.1 among largest manufacturer in India Copper Magnesium/ Bronze Jumper Wire o 70% of market share o Supplied 31,000 KMs to Indian Railways out of 45,000 KMs of Electrification o Developed Copper magnesium conductors for bullet trains. Briddle Wire Stitch Wire C
Slide 30: CTC/PICC Conductors
CTC/PICC Conductors CTC/PICC enamelled strips are widely used in transformers, generators and as winding material in the motor industry. o PICC Aluminium o EPICC Copper Industries we cater to, o EPICC Aluminium o BEPICC Copper o Power Transformer Industries o BPICC Aluminium o CTC Aluminium o BEPICC
Slide 31: Copper Rods/Wires/Busbars/Strips
Copper Rods/Wires/Busbars/Strips Industries we cater to, o Switchgear Industries Copper alloy rod Copper strips Copper busbar o Electrical Panel Manufacturers o Electrical Substations Copper wire Copper conductor Sections copper 30 Investor Day Presentation – August 2023
Slide 32: Turnkey Projects End to End Solutions for Power Sector
Turnkey Projects End to End Solutions for Power Sector HTLS HTLS OPGW CONVENTIONAL Transmission Distribution Live Line EPC SUBSTATION AUGMENTATION TELECOM INTEGRATION Other HTLS EPC – MVCC EPC– UG CABLE 31 Investor Day Presentation – August 2023
Slide 33: Snapshots of Challenges During HTLS Project Work
Snapshots of Challenges During HTLS Project Work Backwaters & Grooves (Kerala) High Hill Terrains with Twin HTLS Working in Sea/Ocean Highly Congested & HTLS on pole Fog Conditions Illegal Colonies 32 Investor Day Presentation – August 2023
Slide 34: APAR Laboratory (Testing & Research Centre)
APAR Laboratory (Testing & Research Centre) o Advanced testing and research facility for evaluation of conductor and life cycle assessment with global recognition meeting safety, performance and reliability compliance to National and International Standards. o Laboratory accredited with ISO/IEC 1702
Slide 35: Competitive advantage – APAR Conductors
Competitive advantage – APAR Conductors Premium products o Technology & know-how involved in product and design, acting as a barrier to entry for competition o Special stringing mechanism with sophisticated equipment to protect the carbon composite core inside o Customers look at life-cycle costs an
Slide 36: Futures Plans & New Initiatives
Futures Plans & New Initiatives o Focus on developing new HTLS products – to meet export & domestic reconductoring demand. o AL 59 manufacturing capacity expansion to meet domestic growing demand. o Developing import substitute products o Focus on market development of Copper Magnesium and Copper Si
Slide 37: APAR Conductor's Achievements
APAR Conductor’s Achievements o World’s Largest manufacturer of Aluminum Conductors o Superior brand recognition and approval among customers and utilities in India and other developing economies. o Registered export house by the Indian Ministry of Commerce. 36 Investor Day Presentation – August 202
Slide 38: Extensive global presence driving exports
Extensive global presence driving exports Prominent presence with established Utilities, EPC’s & channel partners in USA Canada Mexico Colombia Brazil Peru Chile Spain France Great Britain Romania Norway Sweden Finland Poland Italy Montenegro North Macedonia Australia GCC Middle East (UAE) Iraq Keny
Slide 39: Thank You
Thank You
Slide 40: Speciality Oils
INVESTOR DAY PRESENTATION Speciality Oils Mr. Rishabh Desai – Director
Slide 41: Understanding our speciality oils business
Understanding our speciality oils business o APAR is India’s largest Private manufacturer and exporter of Speciality oils o World’s 3rd Largest Transformer Oil manufacturer o Production capacity of 5,00,000+ KL in India & 1,20,000+ KL in UAE TRANSFORMER TECHNICAL PHARMACEUTICAL RUBBER OILS GRADE WHI
Slide 42: About Transformer Oil Applications
About Transformer Oil Applications Working with global OEM’s APAR has designed a full range of products used in all types of transformers Power Transformers Distribution Transformers Furnace Transformers HVDC Transformers Traction Transformers Instrument Transformers 41 Investor Day Presentation – A
Slide 43: POWEROIL Transformer Oil Global approvals
POWEROIL Transformer Oil Global approvals OEMs Laboratories CPRI Utilities 42 Investor Day Presentation – August 2023
Slide 44: Areas of focus and growth
Areas of focus and growth 1 Growth of transformer oils business With electrification 2 Biodegradable speciality oil Products POWEROIL TO NE and NE premium 3 Heavy grade white oils Used in TPE, TPV and EPDM 4 Hot melt adhesives Increasing focus on health and hygiene 43 Investor Day Presentation – Aug
Slide 45: POWEROIL TO NE PREMIUM – The Bio-degradable T-Oil
POWEROIL TO NE PREMIUM – The Bio-degradable T-Oil Biodegradability is the ability of a substance to degrade into CO2 in the presence of biomass micro-organisms (bacteria, fungi or their enzymes) measured as per OECD 301B % extent of the sample oil that gets converted into CO2 Product range and appli
Slide 46: Hot Melt Adhesive
Hot Melt Adhesive Product USP Competitive advantage o Reduces cost and improves pressure-sensitive tack o One of the three global manufacturers o Decrease melt viscosity / MFI o Offering grades for technical and hygiene applications o Decrease hardness o Developed tailor made products to suit custom
Slide 47: POWEROIL for Heavy Grade White Oil used in TPE/TPV
POWEROIL for Heavy Grade White Oil used in TPE/TPV Competitive advantage o Offering tailor made products to suit the customer needs o Variable blending capacity empowers us to manufacture micro batches for niche applications o Blending facilities round the globe to Turkey, Australia, South Africa, U
Slide 48: Thank You
&: APAR Thank You ——
Slide 49: Auto and Industrial Lubricants
INVESTOR DAY PRESENTATION Auto and Industrial Lubricants Mr. Sundar Subramanian – Sr. VP (Lubricants)
Slide 50: APAR Lubricants Division
APAR Lubricants Division o Indian Market – Lubes – 2.3 MMT o APAR Lubes established in 2007 – Through a technology arrangement with Eni of Italy. o Automotive Sales in two brands – Eni and ARKOS o Industrial Lube Sales in own brand POWEROIL o Volumes for FY23 at 66,000 Kl with a market share of 3% o
Slide 51: Lubricant Product Range (Auto + Industrial)
Lubricant Product Range (Auto + Industrial) AUTOMOTIVE LUBRICANTS INDUSTRIAL LUBRICANTS On Road Off Road Maintenance Metal Working Motorcycle Passenger Diesel Construction Agricultural Reduction Hydraulic Turbine Compressor Soluble & Neat Quenching Oils Car oils Engine Oils & Infrastructure Oils Gea
Slide 52: Infrastructure
Infrastructure Zirakpur Guwahati Ghaziabad Jaipur CDC Patna Ahmedabad Indore Baroda Aurangabad Rabale Plant Cuttack Kolkata CDC Mumbai CDC Hyderabad CDC Pune Hubli Bangalore CDC Chennai Erode Cochin Total – 14 Depots + 5 CDCs + Rabale Plant 51 Investor Day Presentation – August 2023
Slide 53: Distribution
Distribution Poweroil Industrial, 82 Eni Industrial, 30 Eni Retail, 263 Arkos , 110 Distributors 485 Retail 373 Industrial 112 52 Investor Day Presentation – August 2023
Slide 54: Strengths
Strengths Lubricant Business B2C o Settled distribution. o Products well established and accepted. o Foray into Batteries and Tyres to enhance the depth of distribution. o Digital loyalty program in place for both influencer and Dealers. o Channel finance implemented w.e.f Jan 2023. B2B o Significan
Slide 55: Strengths
Strengths Lubricant Business OEM’s and Private Labels o Leader in Tractor OEM’s. o Significant exposure in TAFE Eicher, Escorts, International Tractors and Carraro. New OEM’s in pipeline. o Work with leading TIER 1 OEM brands in the aftermarket. Exports o Office established in Dubai for pioneering e
Slide 56: Head Winds
Head Winds Electric Vehicles EV impact would be limited to personal Mobility. o EV 2 Wheelers for the last mile usage would increase. o Currently EV sales is under 1 million units per annum compared to ICE sales of 1.3 million units a month. o With EV subsidy being reduced w.e.f 1st July by the GOI
Slide 57: Way Forward – Lube Business
Way Forward – Lube Business. Industrial business will continue to significantly drive demand. o APAR is positioned well here through its twin brand offering Eni and POWEROIL. o Increased manufacturing opportunities in India (with China+1). All leading to higher volume of lubricant and higher value f
Slide 58: Cable Solutions
INVESTOR DAY PRESENTATION Cable Solutions Mr. Shashi Amin – CEO (Cable Solutions)
Slide 59: Cable & Wires – Industry Sizing & Mix
Cable & Wires – Industry Sizing & Mix Market Product Composition – FY23 Market Size (Org + Unorg)-Product Wise YoY FY19 FY20 FY21 FY22 FY23 Product Growth LDC LV Cables Category 37% 43% (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) % LV Cables 26,548 21,490 17,563 22,597 28,210 25% MV Cables 5,644 4,329 3
Slide 60: APAR Performance vis a vis Peers – 5 Year Revenue Growth
APAR Performance vis a vis Peers – 5 Year Revenue (C&W) Growth 0 16000 0 12777 0 10793 12000 Growth YoY CAGR POLYCAB 18% 15% 0 7591 7590 KEI 22% 18% 7064 6254 0 8000 6317 5123 HAVELLS 19% 16% 5533 0 FINOLEX 19% 9% 4645 3986 3574 4263 0 3360 APAR 4000 64% 23% 2727 2683 3235 2770 3573 3180 3263 UNIVER
Slide 61: Cable Solutions – Diversified Product Portfolio
Cable Solutions – Diversified Product Portfolio ELASTOMERIC CABLES FOR POWER CABLES HOUSE WIRES CABLE & E-BEAM & WIRES AND FLEXIBLES USA MARKET HARNESS CABLES Building Wire o Automotive & EV o XLPE LV Power Cables o Solar Cables o House Wires o RW75/RW90/RHH/RHW/RHW- XLPE MV Power Cables o Windmill
Slide 62: Serving diversified sectors
Serving diversified sectors Power Transmission & Renewable Energy Railways Defence Distribution Sector Automobile IT / Data Centres Real Estate Industrials 61 Investor Day Presentation – August 2023
Slide 63: Innovation at Core in what we do at APAR
Innovation at Core in what we do at APAR Advanced PV Fire Survival Cables Anushakti - High @1050 degree C for Wire for Solar Ampacity Wires Sydney metro Industry Life Expectancy of beyond 25 o EBXL (electron beam cross- linked) FR-PVC insulated Designed to pass Fire test @ 1050 years, Fire Retardant
Slide 64: What is E-Beam technology?
What is E-Beam technology? An Electron Gun is housed in a thick vessel Electron beam Irradiated where electrons are Highly accelerated cables and wires offer accelerated in an electrons penetrates superior performance as acceleration tube & insulation or sheath of compared to conventional directed t
Slide 65: APAR Anushakti – High Ampacity Housewires Powered by E-Beam Tech
APAR Anushakti – High Ampacity Housewires Powered by E-Beam Tech Withstand higher Temperature & melt resistant 105o C APAR ANUSHAKTI FR PVC Single core, unsheathed FR PVC cables for 1100 V as per IS 694 50%↑ Higher Current carrying capacity Nominal Current Carrying Capacity (Amps) 1 Cu Area Anushakt
Slide 66: Capacity Expansion Projects – FY24
Capacity Expansion Projects – FY24 ` 01 Rubber Cable Commissioned Troester CCV line for Rubber cable up to 72 KV to capture export demand in wind segment 02 Exports & Commissioned 7.5 acres new plant for LT Cables with Renewables revenue potential of 900 crores Capacity utilisation for 03 FY23 @ 88%
Slide 67: Exports Growth
Exports Growth FS Cables CPR Certified UL Approval for @1050 C PV Solar Cables MV Cables Metro Projects in Awaited Australia 18 Only approved Indian brand with Renewables Categories of UL Strong APAR Approvals ENEL Presence 66 Investor Day Presentation – August 2023
Slide 68: Industry Tailwinds & Demand Drivers
Industry Tailwinds & Demand Drivers Opportunities in Power Sector Rapid growth in power demand, rural electrification and green energy initiative will ensure healthy demand from power sector, RDSS scheme outlays investment of 3 lacs crore by FY26 Boom in Infrastructure Strong Govt focus with higher
Slide 69: Ongoing Journey to Improve B2C Share
Ongoing Journey to Improve B2C Share 100% 94% 6% 90% 10% Journey 2018-2023 Plan 2023-2027 B2B B2b B2C B2B B2C Where We Were Where We Are Where We Plan to Be o 1st Company to introduce E-Beam powered House Wires (Anushakti) o Appointing Sonu Sood as Brand Ambassador o Television advertisement and WPL
Slide 70: Retail Business Expansion
Retail Business Expansion Expanding distribution to reach Project Business & Approvals 50% district coverage by FY24 (KAM) o Expand retail distribution network by o Focus on key government approvals & MEP adding new states and penetrating deeper Consultants Channel in existing states o Focus on larg
Slide 71: Retail Business Expansion Reach
Retail Business Expansion Reach Established Territory Newbie Territory – Opened H2FY23 Open in FY24 Yet to open 70 Investor Day Presentation – August 2023
Slide 72: Channel Expansion in Retail Business
Channel Expansion in Retail Business Particulars FY 22 FY 23 FY 24 Projection Distributor presence 19 120 267 Retail count presence 276 2,395 6,700 Active state presence 2 13 19 No. of Electrician - 72,900 1,46,300 Demo’s 6,348 35,353 61,150 Electrician Meets 474 3,373 6,860 71 Investor Day Presenta
Slide 73: Competitive advantage – Cable Solutions
Competitive advantage – Cable Solutions o E-beam technology for house wiring - first mover advantage and the only company using this technology giving the product a 50- year life, melt resistant and flame retardant till 105 degrees. o India’s only Cable company with 4 e-Beam irradiation facilities.
Slide 74: Thank You
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Slide 75: Telecom Solutions
INVESTOR DAY PRESENTATION Telecom Solutions Mr. Girish Gupta – Sr. VP & Business Head (Telecom)
Slide 76: Voice Video Virtuality
Voice Video Virtuality 2001-2010 2010-2020 2022-2030 Feature Phones Smart Phones Connected Devices Digitally Connected, Kbps, Digitally Consuming, Mbps, Digitally living, Gbps, High Latency, >100 ms Latency sensitive, 10 ms Real time Latency, < 1 ms 75 Investor Day Presentation – August 2023
Slide 77: Digitalisation taking data growth to new levels…
Digitalisation taking data growth to new levels… Current use cases Global Data Consumption per user Global mobile Data traffic in EB/month GB per smartphone Video Consumption 60%+ of total traffic high uploads, creation Gaming & Software Downloads Social Networking with heavy rural and cross demogra
Slide 78: Digital Transformation evolving faster than expected…
Digital Transformation evolving faster than expected… By 2030 Transport & Logistic Real time asset condition monitoring 9.8 bn sim connections* Drones for delivery & inspection with 114% penetration rate Agriculture Healthcare Crop & Soil digital monitoring Tele-Consultation 50%+ 5G adoption Predict
Slide 79: Telco's need a Transformation Shift
Telco’s need a Transformation Shift Critical needs of Telco’s o Double down the investments in core networks o Focus on digital front-end play – IOT and private networks o Invest in edge data centers o Enhancing managed services with higher Q-o-S o Jump from Telco to Technology Company Telco’s Trans
Slide 80: Investment already planned in building connectivity networks
Investment already planned in building connectivity networks 5G FTTH Rural Networks o India will take Tower Fiberisation to 70% in next 5 years from existing 35% o India added 10 Mn FTTH Homes in last 2 years and plans to add 10 o 530 operators in 160 countries Mn on annual basis o Bharat-Net - Cabi
Slide 81: Advent of 5G and densification of small cells
Advent of 5G and densification of small cells 10X Faster than 4G| 16X Cell Density as compared with 4G 3G 4G 5G 1000 10 Km 10 Km 10 Km < 1 ms Peak Data Rate - Mbps 10 Km 10 Km 10 Km 1 Site 1 Site 1 Site Every 10 KM Every 2 KM Every 0.5 KM 25x 16x CELL DENSITY (Cell/ 100 Sq.Km.) CELL DENSITY (Cell/ 1
Slide 82: APAR Foraying into Telecom Solutions landscape
APAR Foraying into Telecom Solutions landscape Grow by Innovation and Creating Customer Value Market Dynamics Focus Areas o Connected world with near zero latency o Converged networks and Data centres o Cloud shift from hyperscale to edge o Rural Connectivity o Blockchain shaping web 2.0 to web 3.0
Slide 83: APAR Telecom Solutions
APAR Telecom Solutions Creating Value by enabling environmentally sustainable connectivity solutions Across Telecom, Energy Infrastructure, Defence and Transportation sectors Uniflex - acquired 2008 Since 2017 Starting FY2024 Starting FY2024 Starting 2025 Business Portfolio Optical Fiber Powerline T
Slide 84: Customer Centric Strategy
Customer Centric Strategy Strategic Priorities FY24 Initiatives o KAM Structures to address and access global markets Grow o Increased Focus on Global Customer Approvals and qualifications Optical Fiber of regional standards-UL/CPR etc. Cable Portfolio o Brand Positioning in focused markets of growt
Slide 85: Using customer centric innovations to capture future markets
Using customer centric innovations to capture future markets Innovation on Creating new products Crafting full solutions – individual product level to drive TCO benefits deployment ready solutions APAR Micro Cables and APAR hybrid cable is a APAR solutions for Wind-mills is Fire Resistant products u
Slide 86: Beyond Products - Building Network Services for Passive Solutions
Beyond Products - Building Network Services for Passive Solutions Multiple Applications Addressing Challenges APAR Value • Intracity Networks • Intercity Networks 1 • • FTTH Networks Rural Connectivity Reliability Increased N/W Life Process Design & People 2X • Border Connectivity Impact Digital Vie
Slide 87: Thank You
Thank You
Slide 88: Financial Overview
INVESTOR DAY PRESENTATION Financial Overview Mr. Ramesh Iyer – CFO
Slide 89: Customer mix profile
Customer mix profile Particulars 12MFY23 Exports 48.7% Industries/Corporate 16.7% Specific industry groups 8.6% OEM's 6.5% EPC - Transmission companies 4.8% Utilities - Transmission companies 7.1% Renewables 2.7% Utilities - Electricity Distribution Boards (Govt. + Pvt.) 1.6% EPC - Diversified custo
Slide 90: Quality of Receivables FY23
Quality of Receivables FY23 Particulars % of Total Secured under various means 52.7% Government Transmission and sector specific companies 19.5% Others (of which 63% are with entities where APAR is having business relationship with over 27.8% 3 years) Total 100.0% 89 amounts in INR crore Investor Da
Slide 91: Risk Management – Commodity Risks
Risk Management – Commodity Risks Hedgeable commodities – Aluminium and Copper o 100% metal hedging against underlying contracts based on price formula o No metal variation exposure on the company Non-hedgeable major materials, services (excluding oil) o Short duration contracts to mitigate volatili
Slide 92: Risk Management – Currency Risks
Risk Management – Currency Risks o Natural hedges across divisions o Synergy across divisions : Surplus position in one division offset against shortage in another division o Cross currency hedges for non-dollar denominated currency 91 Investor Day Presentation – August 2023
Slide 93: Risk Management – Customer Risks
Risk Management – Customer Risks o Credit evaluation before order acceptance o Internal risk committee for review of medium & large contracts o Insurance, channel financing, factoring to improve liquidity and mitigate credit risks 92 Investor Day Presentation – August 2023
Slide 94: Consolidated: P&L Metrics
Consolidated: P&L Metrics Particulars FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Revenue from operations (Rs crores) 7,964 7,462 6,388 9,317 14,352 EBITDA post-open period forex (Rs crores) 475 468 435 561 1,291 EBITDA Margin (%) 6.0% 6.3% 6.8% 6.0% 9.0% PAT (Rs crores) 136 135 161 257 638 PAT Margin%
Slide 95: Consolidated: Balance sheet metrics (Rs crores)
Consolidated: Balance sheet metrics (Rs crores) Particulars FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Closing Working Capital (Refer Note 1) 497 536 717 1,108 1,458 Surplus cash > 12m 187 0 60 31 54 Fixed Assets (net block) 812 939 907 920 1,050 Capital employed 1,496 1,475 1,684 2,059 2,562 Working C
Slide 96: Consolidated: Cash Flows (Rs crores)
Consolidated: Cash Flows (Rs crores) Particulars FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Profit before Tax 216 169 208 342 855 Non-cash adjustments 185 292 189 207 338 Movement in Working capital 231 (367) (73) (305) (495) Cash flows from operating activities 632 94 324 244 698 Cash flows from inves
Slide 97: Conductor: Premiumisation and Exports driving growth
Conductor: Premiumisation and Exports driving growth o The volume growth over 5 year period is low because of change in product portfolio as the metric tonnes required per km has reduced over the years o Strategic initiative to introduce premium portfolio has worked for the division o Exports mix up
Slide 98: Conductor: Optimal product mix driving higher margins in FY23
Conductor: Optimal product mix driving higher margins in FY 23 o FY 23 witnessed a high profitability due to premiumisation of product portfolio and high margin exports further aided by macro & geo-political factors o Export market saw multiple opportunities due to macro-economic factors viz., Renew
Slide 99: Oil: Improved quality of oil customers
Oil: Improved quality of oil customers o Post FY19, strategically the business reduced volumes to customers where credit risk were high. Accordingly, the volumes fell but the quality of customers improved o Exports mix up from 33% to 45% over last 5 years Figures are net of eliminations 98 Investor
Slide 100: Oil: Continued focus on per unit profitability
Oil: Continued focus on per unit profitability o FY21 & 22 were high on margins due to favourable oil prices 99 Investor Day Presentation – August 2023
Slide 101: Cable: Strategic expansion into export market
Cable: Strategic expansion into export market o Exports mix up from 10% to 52% over last 5 years o During FY 23 we were the No.1 exporter of cable & wires from India (Source: Volza.com) 100 Investor Day Presentation – August 2023
Slide 102: Cable: Volume growth and product mix leading to better margins
Cable: Volume growth and product mix leading to better margins 101 Investor Day Presentation – August 2023
Slide 103: Thank You
s3 APA Tomorrow's solutions today . © Tha
Slide 104: ESG and Sustainability
INVESTOR DAY PRESENTATION ESG and Sustainability Mr. Suyash Saraogi – President Strategy & Projects
Slide 105: Stakeholders' demands on APAR
Stakeholders’ demands on APAR o Inclusive work environment o Work-life balance o Wants to work with companies that are ESG leaders employees o Eco-friendly products o Transition to renewable energy o Lower embedded carbon suppliers/ o Transparency customers o Adoption of cutting edge technologies pa
Slide 106: Stakeholders' demands on APAR
Stakeholders’ demands on APAR employees We are working on all these fronts to meet stakeholders’ demand, including: suppliers/ o Transition to renewable energy as demanded by suppliers/ customers partners partners We at APAR, need o Climate-risk management as demanded by Shareholders to ensure a cra
Slide 107: Sustainability Governance structure @ APAR
Sustainability Governance structure @ APAR .. Three- tier Governance Architecture is adopted @ APAR for Sustainability Development program: APAR APAR Board of Directors Decision making & oversight Board Sustainability Sustainability Steering Committee -- consists of Leadership (manufacturing Busines
Slide 108: Our actions are aligned with UN SDGs
Our actions are aligned with UN SDGs .. No Poverty Zero Hunger Good Health and Quality Education Gender Equality Clean Water and Affordable and Decent Work and Industry, Well-being Sanitation Clean Energy Economic Innovation and Growth Infrastructure APAR’s SDG Reduced Sustainable Cities Responsible
Slide 109: Environment: Carbon Footprint
Environment: Carbon Footprint Our organisational boundary covers all our manufacturing Business wise GHG emission in FY 2022-23 plants, offices, go-downs, and all such emission sources under our operational control. Our manufacturing plants in India Cable Gujarat : Khatalwada & Umbergam Conductor 34
Slide 110: Environment: Carbon Footprint (business wise)
Environment: Carbon Footprint (business wise) OIL BUSINESS CABLE BUSINESS CONDUCTOR BUSINESS Emission, tCO2e Emission, tCO2e Emission, tCO2e GHG emission intensity has gone down in all the 6,860 35,745 31,618 65,986 three business. 29,370 56,830 54,837 4,036 We have been continuously working towards
Slide 111: Environment: Energy Audits
Environment: Energy Audits APAR has partnered with leading institutions for comprehensive assessment and analysis of the energy usage and efficiency of machines & equipment at our manufacturing facilities. Identification of Energy Conservation Measures Feasibility, Payback & Energy Consumption Recom
Slide 112: Environment: Renewable Energy
Environment: Renewable Energy Wind-Solar Hybrid Roof-top Solar 3.30 MW Wind Turbine 5.13 MW Roof-top Solar WIND-SOLAR HYBRID 2.80 MWp Solar Energy o Successfully commissioning of wind-solar hybrid project in partnership with M/s Clean Max Enviro Energy Solutions Private Limited on 18th June 2023. o
Slide 113: Environment: Renewable Energy status
Environment: Renewable Energy status As on 31st Mar 2023 During FY 2023-24 End of FY 2023-24 Renewable - 4% Renewable - 30% Renewable - 18% Grid - 96% Grid - 82% Grid – 70% scenario: scenario: o first turbine (wind-solar hybrid) commissioned, and o Additional turbine (wind-solar hybrid) (planned o 1
Slide 114: Environment: Low carbon products
Environment: Low carbon products Low carbon products and services are those Customers are demanding low-carbon Few examples of our low carbon products are that minimize greenhouse gas emissions products (lower embedded carbon) to meet (a) ACCC conductor and (b) POWEROIL NE/ throughout their life cyc
Slide 115: Environment: water footprint
Environment: water footprint was the Water Footprint 328,325 KL @ APAR during FY 2022-23 Process flow 1 2 3 Subsurface Investigations – Topographic Analysis, Topographic Analysis, Geophysical Survey - Geological, Geological, Electrical Resistivity & hydrological, Drainage, hydrological, Drainage, a)
Slide 116: Social: employee engagement
Social: employee engagement Employee engagement survey Highest engagement scoring on 2 key Employee engagement matrix – 81% employees of APAR are engaged questions : o Employee Engagement reflects the degree to which employees are emotionally connected and committed Questions Satisfaction with APAR
Slide 117: Corporate Governance
Corporate Governance 1) Board Commitment in managing APAR in a transparent manner with the objective BoDs and of maximizing long-term shareholder value. It ensures the following: Committees a) Equitable treatment of all shareholders and provision of relevant and material information to them on a tim
Slide 118: Corporate Governance – Number of Shareholders
Corporate Governance Key highlights o The number of shareholders increased from 34,460 as on o Listing of shares of the Company March 31, 2022 to 71,660 as on June 30, 2023 -- on BSE – 1991 o Shareholders relations & interests looked after by Share Transfer & Shareholders Grievance-Cum Stakeholders
Slide 119: CRISIL rating
CRISIL rating o CRISIL had started ESG rating of top listed Indian companies since 2021. First such rating was done last year, and the report was released in June 2021. o 2nd such rating was done in 2022 for 586 top Indian companies, and report was released on 19 th May 2022 o APAR’s name has found
Slide 120: What does APAR's ESG score of 59 mean?
What does APAR’s ESG score of 59 mean? APAR’s score o We performed well in the Environment category, as is evident from the score. o Our performance in Social category were slightly below average (various actions have been taken to improve the same). o Our Governance related disclosures were better
Slide 121: Major milestones ..
Major milestones .. TCFD Report ESG rating by CRISIL 3rd party certification CDP disclosure We prepared our first TCFD (Task force on APAR’s name has found a place in the CRISIL GHG emissions (Scope-1 and Scope-2) and We disclose our climate related emissions to CDP Climate related Financial Disclos
Slide 122: Let's sum it up ..
Let’s sum it up .. We have traversed a long way in the last two and half years (since we started our formal sustainability journey) o We are measuring, disclosing, and reducing our carbon emissions, water footprint and waste reduction o Big thrust on renewable energy – achieved from 0% to 4% in firs
Slide 123: Thank You
“s APAR Tomorrow's solutions today Thank You
Slide 124: Q&A
APAR INDUSTRIES LIMITED INVESTOR DAY 2023 Q&A 123 Investor Day Presentation – August 2023
Slide 125: Annexures
ANNEXURES
Slide 126: India Renewable Energy: Installed capacity for Solar & Wind set to grow
India Renewable Energy: Installed capacity for Solar & Wind set to grow India: New Capacity Addition in MW (FY23 to F30) Installed capacity In RES as on July 2023 (in GW) 42.8 49673 46.85 40641 36126 Total - 31610 179.322GW 27094 0.55 22579 18063 4.94 12784 12598 9162 10307 8017 67.07 5726 6871 10.2
Slide 127: India Renewable Energy (Continued)
India Renewable Energy (Continued) India: YoY Growth in New Capacity Addition (FY24 to F30) 1.01 0.41 0.25 0.25 0.22 0.22 0.2 0.2 0.17 0.17 0.14 0.14 0.13 0.13 FY24 E FY25 E FY26 E FY27 E FY28 E FY29 E FY30 E Solar Wind Source: Implied Calculation from CEA data with gradual pick up Why These Targets
Slide 128: Globally, Renewable Energy share to increase from 28% to 38%
Globally, Renewable Energy share to increase from 28% to 38% Renewable Capacity Additions (GW) GW Historical Main Case 500 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Source: IEA Utility - Scale PV Distributed PV Onshore wind Offshore winds Hydropower Bioenergy
Slide 129: Significant addition in Indian T&D over the years
Significant addition in Indian T&D over the years Addition in Transmission 1,00,000 90,000 86193 81816 78982 80,000 75902 72705 70,000 68230 65554 62849 60,000 57575 50,000 40,000 30,000 28114 26300 22101 23119 22437 20,000 16750 14895 14625 11664 10,000 4706 476 0 FY 2014-15 FY 2015-16 FY 2016-17 F
Slide 130: New transmission system to cater to Renewable energy demands
New transmission system to cater to Renewable energy demands As a significant step towards successfully achieving the planned Renewable Energy capacity by 2030, transmission system has been planned for about 537 GW of Renewables based generation capacity. Category Capacity (MW) RE Capacity already C
Slide 131: Global T&D Investments to grow
Global T&D Investments to grow Future Global Investment in T & D US $ Million Total Global Investment per Decade In us $ trillion 600000 5.2 500000 400000 3.5 300000 2.3 200000 100000 0 2010 2015 2020 2030 2040 2010-2020 2020-2030 2030-2040 Total Market Valuation (US Million) Source: INMR Source: IN
Slide 132: T&D: Global (Cont.)
T&D: Global (Cont.) This is how the T&D investment are organized. The number of companies capable of supplying the equipment necessary is decreasing and there is sufficient business for all the companies which are offering quality and reliability. US $ Million 3,00,000 254495 2,50,000 2,00,000 15394
Slide 133: Mobility - Indian Railway, Metro & High-speed rail to grow exponentially
Mobility - Indian Railway, Metro & High-speed rail to grow exponentially Transport activity by railway mode in the Base Scenario 132 Source: IEA Report on Future Railways Investor Day Presentation – August 2023
Slide 134: Indian Mobility (Cont.)
Indian Mobility (Cont.) o India targets 30% electric vehicles by 2030 to curb emissions and oil imports. o The EV market is projected to grow by 49% CAGR from 2021-2030, exceeding 17M units by 203. o The nation's rapid EV sector growth, driven by policies, air quality concerns, and fuel prices, coul
Slide 135: India Mobility (Cont.)
India Mobility (Cont.) Indian Railway Developments o Of the 64,689 kms of Broad Gauge route, 45,881 kms (about 28509.13 mi) has been electrified and the remaining 18,808 kms route is yet to be electrified. o About Rs. 21,000 crore (US$ 2.8 billion) is estimated to be spent on electrification of the
Slide 136: Mobility - Indian Railway (Cont.)
Mobility - Indian Railway (Cont.) FAME scheme launched in 2015 to promote electric vehicles, with two four-year phases. (1st Phase run 4 yrs. until 2019) The second phase (FAME II) is a 3-year subsidy programme. It aims at supporting the electrification of public and shared transportation by: o 7000
Slide 137: India Mobility (Cont.)
India Mobility (Cont.) Thousand Thousand Vehicles Historical evolution of the EV stock in India Vehicles Evolution of the EV stock in India, projections 8000 90 to 2030 80 3 7000 7 70 6000 Cars Vans Busses Trucks 60 5000 50 4000 40 72 30 3000 2 6 20 2000 1 5 10 23 12 1000 0 4 0 2015 2020 2021 2022 0
Slide 138: Global Mobility
Global Mobility o Electric cars are seeing exponential growth as sales exceeded 10 mn in 2022. The momentum expected to continue through 2023. o Market trends and policy efforts in major car markets are supporting a bright outlook for EV sales. o The global outlook for the share of electric car sale
Slide 139: Mobility - Global Railway (Cont.)
Mobility - Global Railway (Cont.) Global conventional rail network extension and activity Existing and planned high-speed rail track developments in the Base Scenario 138 Source: IEA Report on Future Railways Investor Day Presentation – August 2023
Slide 140: Mobility - Global Railway (Cont.)
Mobility - Global Railway (Cont.) Global metro and high-speed rail by track-km and region in the Base Scenario Urban rail activity by region in the Base Scenario 139 Source: IEA Report on Future Railways Investor Day Presentation – August 2023
Slide 141: Global Telecom - 5G mobile subscriptions to reach 1.5 billion by the end of 2023
Global Telecom - 5G mobile subscriptions to reach 1.5 billion by the end of 2023 Mobile subscriptions by technology (billion) The monthly global Revenue is rising for More than 100 5G mobile average usage per service providers in service providers subscriptions smartphone is the top 20 5G are now of
Slide 142: Global Telecom (Cont.)
Global Telecom (Cont.) o North America's 5G surges: 41% penetration (2022), 250M subscriptions (2023), projected 91% penetration (2028), leading globally. o Western Europe shifts: 4G wanes, 5G surges (2023 onwards), 143M subscriptions (2023), 88% penetration (2028) Other Markets - 5G subscriptions r
Slide 143: Global Telecom - 5G subscriptions rising in every region
Global Telecom - 5G subscriptions rising in every region India, Nepal and Bhutan o 5G subscriptions reach around 10 million by the end of 2022. Pan-Indian availability of 5G networks by the end of 2023/early 2024 will further fuel growth. o 5G subscriptions are expected to reach 700 million and are
Slide 144: Indian Telecom – PSU Revival Package
Indian Telecom – PSU Revival Package o Outlay approved of ₹1.39 lakh crore for BharatNet, the government’s project for last-mile connectivity across 6.4 lakh villages in the country. o BharatNet is one of the biggest rural telecom projects in the world. o BSNL connects the most remote parts of India
Slide 145: Industrialisation and Automation
Industrialisation and Automation Primary activities o Automated Material Handling Solutions are driving growth in market. This includes activities such as automated transport of materials or commodities within a manufacturing unit. o GST application forced the companies to consolidate their warehous
Slide 146: Industrialisation and Automation
Industrialisation and Automation The India Industrial Automation Market size is expected to grow from USD 13.23 billion in 2023 to USD 25.76 billion by 2028, at a CAGR of 14.26% during the forecast period (2023-2028). The primary factors behind this growth are as follows; o Industrial automation is
Slide 147: Improvement in Road Infrastructure
Improvement in Road Infrastructure o Total length of the national highways in the country increased by about 59% in the last nine years. As a result of this expansion, India now has the second largest road network, after the US. o Road transportation has gradually increased over the years with impro