Slide 1: Submission of Corporate Presentation
AlA Engineering Limited July 29, 2022 To, To, The Manager (Listing), The Manager (Listing), The BSELimited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, "Exchange Plaza", C-1, Block - G, Dalal Street, Bandra-Kurla Complex, Bandra (E) Mumbai - 400001 Mumbai - 400051 Script Code:
Slide 2: AIA Engineering Limited Company Presentation June 2022
AIA Engineering Limited Company Presentation June 2022 1
Slide 3: Disclaimer/Safe Harbor
Disclaimer/Safe Harbor Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to AIA Engineering Ltd. (“AIA”, or “Company” or “AIAE”) and its future business, development and economic performance. These statements include d
Slide 4: Contents
Contents Sections 1. Business 4-8 2. Industry Opportunity 9 - 16 3. Company Overview 17 – 23 4. Financial & Operational Snapshot 24 – 25 3
Slide 5: 1. Business: Cement, Mining and Thermal Power
1. Business: Cement, Mining and Thermal Power 4
Slide 6: Cement Industry: Tube Mill Internals
1.1 Cement Industry: Tube Mill Internals High Chromium wear resistant parts for grinding & crushing equipment 5
Slide 7: Cement Industry: Tube Mill & Vertical Mill Internals
1.2 Cement Industry: Tube Mill & Vertical Mill Internals (cont’d) Grinding Media Liners Diaphragm Rollers & Table liners Blow bars / Hammers Dipping Tubes Cement as key end-user industries 6
Slide 8: Mining Industry: Tube Mill Internals
1.3 Mining Industry: Tube Mill Internals Grinding Media Liners Mining Industry - key growth driver 7
Slide 9: Thermal Industry: Vertical Mill Internals
1.4 Thermal Industry: Vertical Mill Internals Rollers & Table liners Bull ring segment Thermal Business 8
Slide 10: 2. Industry Opportunity
aD AIA Engineering Ltd. 2. Industry Opportunity
Slide 11: Cement Industry - Process Critical Input for Grinding
2.1 Cement Industry - Process Critical Input for Grinding • Consistent end product quality Optimal design for • Increased production volume given application • Reduce process costs A small component of grinding cost, but essential for continuous production Non availability Grinding Operations can co
Slide 12: Cement Industry Size
2.2 Cement Industry Size Estimated Cement Sector demand - 300,000 MT Estimated Cement Segment wise Consumable per annum Production (mn Wear Parts (MT) MT) World wide 1500 180,000 China 1000 120,000 Total 2500 300,000 AIA sells between 75,000 to 80,000 Mt per year to Cement industry to customers in m
Slide 13: Cement Industry Size & Scope
2.3 Cement Industry Size & Scope • Global market of Mill Internals for cement sector estimated at 300,000 MT and growing at 4-5% per annum Mill internals are consumables in grinding mills Their design and properties (abrasion, corrosion, impact resistance) are critical to grinding process effici
Slide 14: Mining Industry Opportunity
2.4 Mining Industry Opportunity • Industry comprises of two important products – Grinding Media and Mill Liners • Consumable wear part demand for grinding media in mining sector estimated to be 3 mn MT per annum with high chrome grinding media at less than 15% of total market, the rest being served
Slide 15: Mining Industry Size – Grinding Media
2.5 Mining Industry Size – Grinding Media India 25 KT Consumable wear part demand for grinding media in mining sector estimated to be 3 mn MT per annum with high chrome grinding media at less than 15% of total market, the rest being served by forged grinding media 14
Slide 16: Grinding Media Growth Strategy for Mining
2.6 Grinding Media Growth Strategy for Mining Annual replacement market in Mining Industry which can be targeted as estimated to be around 3 million TPA. High chrome penetration is less than 15%, hence large conversation opportunity available for growth. AIA passes significant benefits to mini
Slide 17: Mill Liners Opportunity in Mining
2.7 Mill Liners Opportunity in Mining Solution with improved mill lining design Mill linings designed under this initiative will offer improvements in: Throughput of mill Power consumption Lower wear rate of mill linings Global market of 300,000 MT Company has set up a Greenfield facil
Slide 18: 3. Company overview
aD AIA Engineering Ltd. 3. Company overview 17
Slide 19: Niche player with Global footprint
3.1 Niche player with Global footprint Description Milestones 2001 Exit from JV : Capacity 20,000 Mt • Core Competence: Design, develop, manufacture and service impact, abrasion 2008 Commissioned 100,000 Mt Grinding Media Plant and corrosion resistant castings • Focus: 2009 Started supply to Mining
Slide 20: Business Approach - Unique Method
3.2 Business Approach- Unique Method Application Customer Satisfaction Metallurgy Design Application Understanding size reduction parameters of the crushing/milling equipment in view of optimization of grinding process and maintenance costs Design Precise design for the perfect application Tak
Slide 21: Well poised to leverage volume recovery with capacity in place
3.3 Well poised to leverage volume recovery with capacity in place Capacity (MT) Plant locations Current installed Proposed addition Total capacity post capacity (Greenfield) addition Media: 80,000 390,000 520,000 Linings: 50,000 Ahmedabad MTPA FY18-19 FY19-20 FY 20-21 FY 21-22 Installed 340,000 390
Slide 22: AIA Group Structure
3.4 AIA Group Structure AIA ENGINEERING LIMITED VEGA INDUSTRIES (MIDDLEAST) FZC VEGA INDUSTRIES VEGA INDUSTRIES VEGA INDUSTRIES WUXI VEGA TRADE VEGA INDUSTRIES AIA GHANA VEGA INDUSTRIES CHILE SPA, CHILE LTD, UK (RSA) PTY LTD, RSA CO.LTD, CHINA LTD, AUSTRALIA LIMITED , INDONESIA VEGA INDUSTRIES LTD,
Slide 23: Global Logistic Network
3.5 Global Logistic Network RSA USA UK AIA-Warehouses Netherlands Australia Ghana Chile 22
Slide 24: Well laid out strategy to tap the market
3.6 Well laid out strategy to tap the market Increased R&D focus to further strengthen total solutions capabilities To develop Continue to build solutions of on predominant improved wear position in cement parts for crushing globally with and grinding strategic focus on equipment emerging markets an
Slide 25: 4. Financial & Operational Snapshot
4. Financial & Operational Snapshot 24
Slide 26: Financial overview
4.1 Financial overview Performance Indicators Sales Growth (INR in Mn) EBIDTA (INR in Mn) and EBIDTA margin (%) 40,000 10,000 35231 8274 8772 5044 9,000 8221 35,000 7807 29690 28913 8,000 30,000 2825413525 6885 29% 7,000 6575 28% 23963 25% 25,000 11362 6,000 3316 20531 2739 25% 20,000 5,000 2866 24%
Slide 27: Thank You
Thank You 26