Slide 1: Investor Presentation October 2016
1 Investor Presentation October 2016
Slide 2: Group & Company background
Group & Company background 2 Reputed and respected multi-industry conglomerate Present across three industry clusters – technology & automotive, home & building products and healthcare & education Businesses present across five continents with over 20,000 employees, 24 manufacturing facilities
Slide 3: Current installed capacity of 8 million tonnes per annum and primarily sold to Southern and Western India
3 Current installed capacity of 8 million tonnes per annum and primarily sold to the markets of Southern and Western India • Total current capacity: 8mtpa • 3 mtpa integrated cement plant located at Devapur in Adilabad district of Telangana • 2 mtpa grinding unit located at Jalgaon district of Mahar
Slide 4: Summary financials
4 Summary financials Last 5 year’s volumes Last 5 year’s net sales / ton Million tonnes Rs. Per tonne CAGR CAGR +3.6% -1.3% 4.09 4.20 4.08 4.42 3581 3629 3402 3763 3398 3.83 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Last 5 year’s revenue Last 5 year’s EBITDA Rs. million Rs. million CAGR 32%
Slide 5: Execution excellence is a key mantra
Execution excellence is a key mantra 5 Consistently improving energy consumption, high capacity utilisation despite markets and favourable product mix Power consumption (kwh/t) Fuel consumption (kcal/kg clinker) 7% 1% 78 76 76 77 73 720 721 728 724 710 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY
Slide 6: Proposed Transaction
Proposed Transaction 6 On 6th October 2016, Orient Cement agreed to acquire select assets from the Jaypee Group The transaction includes – - Acquisition of 74% stake in Bhilai Jaypee Cement Limited (“BJCL”) o BJCL is a Joint Venture between Jaiprakash Associates Limited (“JAL”) and Steel Authori
Slide 7: BJCL and Nigrie - asset overview
BJCL and Nigrie - asset overview 7 Plants Overview Bhilai Babupur Nigrie Cement – 2.2 MTPA Clinker – 1.1 MTPA Cement – 2.0 MTPA BJCL Nigrie Clinker – Babupur, MP UP Location Nigrie, MP Grinding – Bhilai, Chhattisgarh BH JAL – 74% Housed within MP JHK Shareholding SAIL – 26% JPVL Clinker – Dec’09 OR
Slide 8: Strategic Rationale for the Transaction
Strategic Rationale for the Transaction 8 1 Good quality assets Sizeable and quality assets with all critical infrastructure in place Access to limestone and raw material security through availability of slag and fly-ash Strategically located with close proximity to railways/ roads network E
Slide 9: Strategic Rationale for the Transaction (cont'd.)
Strategic Rationale for the Transaction (cont’d.) 9 3 Highly complementary to the current portfolio Currently, OCL primarily caters to Maharashtra, AP/Telangana & Karnataka with more than ~80% of sales coming from these markets This acquisition will help OCL expand its footprint by catering to t
Slide 10: Strategic Rationale for the Transaction (cont'd.)
Strategic Rationale for the Transaction (cont’d.) 10 Overall cement grinding capacity increased Provides entry into new markets Reiterates the Group’s commitment to the cement business Widens the end market to include Chhattisgarh, Madhya Helps diversify the Group’s presence of operational cap
Slide 11: Orient Cement's Strategy for the Acquired Assets
Orient Cement’s Strategy for the Acquired Assets 11 1 Revival of the Acquired Portfolio of Assets Given the current state of operations due to working capital constraints, the near term focus will be to ensure revival of operations to steady state 2 Optimization of the assets with the existing Ori
Slide 12: Broad Terms of the Transaction
Broad Terms of the Transaction 12 OVERVIEW Acquisition of JAL’s 74% stake in BJCL and Nigrie Grinding Unit from JPVL OCL will acquire shares of BJCL held by JAL through execution of a Share Purchase Agreement STRUCTURE (SPA) Will acquire Nigrie Grinding Unit from JPVL through a Business Transf
Slide 13: Thank you!
CK BIRLA GROUP ORIENT CEMENT Fnank you! 13