Gravita India Limited · NSE:GRAVITA
Gravita India — Investor Presentation (March 2019)
35 slides from Gravita India's investor presentation, Mar 12, 2019
Slide 1: Gravita India Ltd. Investor Presentation filing letter
<> GRAVITA 12" March, 2019 GIL/2018-19/219 GRAVITA INDIA LTD. Corp. Office » 402. Gravita Tower. A-27 B, Shanti Path. Tilak Nagar, JAIPUR-302 004, Rajasthan (INDIA) Phone ; +9114} 2623266, 2622697 FAX . +91-141-262149) E-mail | info@gravitaindiacom Web. | www.gravitaindia.com CIN : L2930B8RJISS2PLCO
Slide 2: India's Global Green Company
INDIA’SGLOBALGREENCOMPANY
Slide 3: Executive Summary
EXECUTIVESUMMARY • Gravita India Limited (Gravita) is a public listed recycling company with Market Capitalization of INR 5,238.5 Mn as of 31 December 2018 • Gravita is engaged in recycling of Used Lead Acid Batteries, Cable Scrap/other Lead Scrap, Aluminium Scrap and Plastic Scrap etc. • Gravita ha
Slide 4: Corporate Structure
CORPORATESTRUCTURE GravitaSenegalSAU GravitaUSAInc. GravitaNicaraguaSA GravitaGhanaLtd. GravitaJamaicaLtd. GravitaMetalsInc. GravitaIndiaLtd* RecyclersGhanaLtd. PartnershipFirms GravitaMetals GravitaMozambique LDA GravitaVenturesLtd. GravitaNetherlandsBV NavamLankaLtd. GravitaGlobalPte.Ltd. Recycler
Slide 5: Company Overview
COMPANYOVERVIEW
Slide 6: Company Overview
COMPANYOVERVIEW Gravita India Ltd. is a leading global nonͲferrous secondary metal and one of India’s largest secondary Lead metal producing company. A vertically integrated business, economies of scale and a diversified team of professionals enable it to TotalRevenueandEBITDAMargins deliver quality
Slide 7: Board of Directors and Senior Management
SENIORMANAGEMENT BOARDOFDIRECTORS Naveen Prakash Sharma Vijay Kumar Pareek Yogesh Malhotra (CEO & President) (Executive Director (Executive Director Non Board Member) Non Board Member) Dr. M. P. Agrawal Rajat Agrawal Chairman Managing Director Rajeev Surana Sandeep Choudhary Sanjay Singh Baid (Execu
Slide 8: Key Milestones
KEYMILESTONES • Leadrecycling unitat Gandhidham, • Plasticrecycling Gujarat. • Plasticrecycling unitatJaipur LeadrecyclingUnit Leadrecyclingunit Leadrecyclingunit Listedon • Incorporated unitatManagua, • PETrecyclingunit atJaipur atSriͲLanka inGhana NSEandBSE companyin Nicaragua atJamaica Nicaragua
Slide 9: Geographical Presence
GEOGRAPHICALPRESENCE HeadQuarters India(Jaipur,RJ) EXISTINGFACILITIES Americas UPCOMINGFACILITIES • Nicaragua(Managua) • Jamaica(Kingston) Asia • CostaRica(SanJose) • India(Jaipur,Rajasthan) • DominicanRepublic(San • India(SEZ,Jaipur,Rajasthan) Domingo) Africa • IndiaChittoor(AndhraPradesh) • Ghana(
Slide 10: Awards & Accolades
AWARDS&ACCOLADES Selected by International Lead Management Centre under United Nations Environment Programme (UNEP) as a partner for ecoͲfriendly recycling initiatives in Senegal Niryat Shree Award (2014, 2016) by the Honourable President of India The President’s National Awards for Export Ach
Slide 11: Key Strengths
KEYSTRENGTHS Deeproutedscrapcollection Longstandingrelationshipswithreputed networkglobally globalcustomers StrategicallylocatedstateͲofͲtheͲart recyclingfacilities PanIndiapresencefromNorthto 1st AsianLeadrecyclingcompany South whosefacilityhasbeenapprovedby InternationalLeadAssociation(ILA) InͲhou
Slide 12: Business Overview
BUSINESSOVERVIEW WeRecycletoSaveEnvironment (11)
Slide 13: Scrap Collection
SCRAPCOLLECTION OVERVIEW The main raw materials used for production includes Used Lead Acid Batteries (ULAB), Other Lead Scrap, Aluminium Scrap and Plastic Scrap The company collects scrap from more than 20 countries including own scrap collection centers in more than 10 countries These raw ma
Slide 14: Recycling Facilities
RECYCLINGFACILITIES WeRecycletoSaveEnvironment
Slide 15: Recycling Facilities - India
RECYCLINGFACILITIESͲ INDIA 107,819 LeadCapacity(MTPA) 88,819 88,819 FY18 FY19 FY20 AluminiumCapacity(MTPA) PhagiFacility, Gandhidham SEZFacility,Jaipur ChittoorFacility, Kathua&Jammu 12,000 12,000 12,000 Jaipur Facility,Gujarat AndhraPradesh Facilities,J&K • Establishedat • Flagshipplantat • Establi
Slide 16: Recycling Facilities - Overseas
RECYCLINGFACILITIESͲ OVERSEAS LeadCapacity(MTPA) 36000 24,000 24,000 FY18 FY19 FY20 AluminiumCapacity(MTPA) SriLankaFacility GhanaFacility Mozambique SenegalFacility NicaraguaFacility JamaicaFacility 7200 Facility •Establishingnew • Establishedat facilitynearto • Establishedat • Establishedat • Esta
Slide 17: Lead Recycling Process
LEADRECYCLINGPROCESS PPChips (Forfurtherprocess) WeRecycletoSaveEnvironment (16)
Slide 18: Lead Products
LEADPRODUCTS PureLeadandAlloys LeadSheet LeadBricks RedLead Others Lead rarely occurs in nature and Lead Sheet are produced by cold Lead Bricks are basically the • Red Lead primer is one of the • Lead powder incorporated into a usually associated with ore of Zn, Ag rolling and are mainly used as rad
Slide 19: Aluminium Recycling Process
ALUMINIUMRECYCLINGPROCESS Filtration Meltingof Fluxing Spectro with400 Strapping Weighment Scrap Analysis meshfilter Receiptof Removalof raw FreeFe Samplingof Removalof material Melt from Density Pouring Warehouse Flashes Preparation Bottom Meter Recoveryof Transferto Dross Degassing Weighment conta
Slide 20: Aluminium Products
ALUMINIUMPRODUCTS Aluminium Cast Alloys ADCͲ12 Application AC4B PressureDieCasting ComponentsforͲ LMͲ24 LMͲ6 • Automotive ASͲ9 • ConsumerDurables DINͲ226 • Electricals AlSiͲ132 CustomizedAlloy WeRecycletoSaveEnvironment (19)
Slide 21: Plastic Recycling Process
PLASTICRECYCLINGPROCESS PP/HDPEScrap PETScrap Polypropylene/HDPERecycling PlasticCrusher Sorting&Bailing PETRecycling PP/HDPEChips PETColdWash Washing PETCrushing WashedPP/HDPEChips PETHotWash Granulation PP/HDPEGRANULES PETFLAKES (FinishedGoods) (FinishedGoods) WeRecycletoSaveEnvironment (20)
Slide 22: Plastic Products
PLASTICPRODUCTS PPCP Granules Application Benefits • PPCP Granules are manufactured using • Packaging battery boxes/paint buckets/oil canes/chairs • Excellentimpact/stiffness performanceevenatlow • Moulding etc., the PPCP Granules are offered by the company in various shapes and sizes, temperatures
Slide 23: Marquee Clients
MARQUEECLIENTS WeRecycletoSaveEnvironment (22)
Slide 24: Turnkey Solutions
TURNKEYSOLUTIONS Executedmorethan50turnkey projectsglobally Gravita offer TurnͲkey solutions for Lead Acid Battery Recycling processes and plants. Gravita is one of the InhouseLeadrecyclingequipment leading TurnͲkey project suppliers for Lead smelting manufacturingfacilityhelpsthe and recycling.
Slide 25: Financials
FINANCIALS FINANCIALS WeRecycletoSaveEnvironment 24
Slide 26: Consolidated Profit & Loss Statement
CONSOLIDATEDPROFIT&LOSSSTATEMENT (INRMn) Particulars FY16 FY17** FY18** 9MͲFY19** TotalIncome* 4,354 6,908 10,311 9035 TotalExpenses 4,151 6,328 9,408 8556 EBITDA 203 580 903 479 EBITDAMargin 4.66% 8.40% 8.76% 5.20% Depreciation 67 59 87 84 FinanceCost 76 86 174 171 Shareofprofitofassociates Ͳ Ͳ Ͳ -
Slide 27: Consolidated Balance Sheet
CONSOLIDATEDBALANCESHEET (INRMn) EQUITIES&LIABILITIES FY17 FY18 H1ͲFY19 ASSETS FY17 FY18 H1ͲFY19 ShareholderFunds NonͲcurrentAssets (A)ShareCapital 137 137 137 (A)Property,PlantandEquipment 665 1,077 1,219 (B)OtherEquity 1,364 1,760 1,868 (B)CapitalworkͲinͲprogress 324 239 305 NonͲ controllingintere
Slide 28: Business Segment-wise Financials
BUSINESSSEGMENTͲWISEFINANCIALS SEGMENTͲWISEREVENUES(INRMn) ProductͲwiseRevenues(FY2018) 8930 7630 6190 RemeltedLead 500 920 850 75 198 135 108 241 410 12% RefinedLead 48% Lead Aluminium Turnkey Others Others 5% FY2017 FY2018 9MFY2019 Turnkey 2% • RevenueCAGR36%&PATCAGRis33%inlast10 Aluminium 9% Year
Slide 29: Back to Back Hedging Mechanism
BACKTOBACKHEDGINGMECHANISM Since June 2016, Gravita has started back-to-back hedging of the metal commodities to mitigate the risk in the commodity price Gravita sells the equivalent volume of finished goods at the time of procurement of scrap on daily basis. Gravita has 3 tier structure of hedg
Slide 30: Industry Overview
INDUSTRYOVERVIEW FINANCIALS WeRecycletoSaveEnvironment 29
Slide 31: Secondary Lead Market
SECONDARYLEADMARKET GlobalLeadReservesͲ 89MillionTons Mexico Russia Peru 6% Lead is the only metal in the world which can be recycled number of times without 7% 7% diminishing any quality and recycled Lead & primary Lead are traded on the same USA China 6% price at London Metal Exchange (LME) 19%
Slide 32: Aluminium Secondary Market
ALUMINIUMSECONDARYMARKET AluminiumDemandinIndia India ranks 4th in terms of aluminium production behind China, Australia and 4 Brazil (MnT) Aluminium demand in India posted a healthy 6Ͳ7% growth during the past 3 1.2 0.9 1 fiveͲyear period and reached to 3.7 Mn Tonnes in March 2018 0.9 India u
Slide 33: Plastic Recycling Market
PLASTICRECYCLINGMARKET The global recycled plastics market was valued at USD 34.80 billion in 2016 and is expected to reach USD 50.36 billion by 2022, at a CAGR of DistributionofGlobalPlasticProduction2017 6.4% during the forecast period (Markets & Markets) The growth in plastic recycling is due
Slide 34: Growth Strategy
GROWTHSTRATEGY Strengthening Enhancingrecycling StrengtheningSales Diversification CollectionNetwork Base Network • Startingnewscrap • FocusonValue • Diversifyinginto • Newrecycling collectioncentresin Added& newgeographies facilityinMundra, Ͳ LatinAmerica Customized suchasLatin Gujaratwith Ͳ NorthA
Slide 35: Disclaimer
Certain statements in this document may be forward-looking statements. Such forward-looking statements are Disclaimer subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ mat