Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Phillip Capital Emerging India MIDCAP Conference 2018
34 slides from Apollo Pipes's conference presentation, Mar 16, 2018
Slide 1: APL Apollo – Tubes for Every Reason
® APLAPOLLO Tubes for Every Reason March 16, 2018 ELECTRONIC FILING THROUGH BSE LISTING CENTER To Department of Corporate Services/Listing Department BSE Limited P. J. Towers, Dalal Street, Mumbai — 400001 (SCRIP Code: 531761) Sub: Intimation of Analyst / Investor Meeting Dear Sir Pursuant to Regula
Slide 2: Apollo Pipes Limited Investor Presentation – March 2018
APOLLO PIPES LIMITED Investor Presentation – March 2018
Slide 3: Disclaimer
2 Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Among the top 10 leading PVC pipe manufacturers in India
4 One of the leading PVC pipe manufacturers Among the fastest MTPA - Available Presence in Global turnover time in Capacity marketplaces industry Hours MTPA - Available Volume Growth capacity targeted by Products 5-yr CAGR 2020 Among the top 10 leading PVC pipe manufacturers in India
Slide 6: Success Milestones
5 Success Milestones • First in North India to install 900 kg/hr PVC extension line • Commenced PVC pipe manufacturing • Expanded capacity by operations • Started 10,000 MTPA Robust growth trend over • Established 3,000 manufacturing uPVC • Took total available last 5 years (FY13 – FY17) MTPA plant
Slide 7: Growth Map
6 Growth Map Figures in Rs. crore Particulars FY2013 FY2014 FY2015 FY2016 FY2017 CAGR Sales 121 149 179 208 239 19% EBITDA 11 12 16 24 32 31% PAT 4 4 14* 10 16 41% Available Capacity MTPA (~) 30,000 34,000 35,000 52,000 53,000 15% Sales Volume (MTPA) 16,398 19,249 21,598 25,115 28,977 15% No of Deal
Slide 8: Key Strengths
7 Key Strengths Proven expertise in complex Strong foothold in India projects Multiple and efficient product Catering to multiple sectors – offerings – 1,000+ products Agriculture, Water Management, Infrastructure Strong and highly experienced Advanced & efficient Management Team equipment & technol
Slide 9: Product Portfolio- Diversified Basket of 1,000+ Products
8 Product Portfolio- Diversified Basket of 1,000+ Products uPVC PIPING SYSTEM CPVC PIPING SYSTEM HDPE PRODUCTS PIPES FITTINGS PIPES FITTINGS HDPE PIPING SYSTEM uPVC PIPES uPVC PLUMBING PIPING SYSTEM PLB DUCTS uPVC RING FIT PIPES uPVC AGRI FITTINGS IRRIGATION PIPES uPVC COLUMN PIPES SW
Slide 10: Product Application across Sectors
Product Application across Sectors 9 Water Management Agriculture Segment Segment •Hot & cold potable •Casing pipes water distribution & transportation •Drip irrigation & •Residential, •Sprinkler system commercial installations Construction Oil & Gas Segment Segment •Conveying edible •Bore well pipe
Slide 11: Aiming Pan-India Distribution Presence
10 Aiming Pan-India Distribution Presence Enjoys a dominant and Delhi leading Head Office presence in Dadri North India (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost for reduces delivery Distributors & time to 48 hours Dealers (fro
Slide 12: Manufacturing Facilities
11 Manufacturing Facilities Close-to-demand Best in class distribution Manufacturing network catering Facility, with to key markets of advanced North, West and equipment & Central India practices All major certifications/ In-house accreditations manufacturing offers incremental contribution to volum
Slide 13: Product Development & Handling
12 Product Development & Handling In-house In-house CPVC development of Compounding extrusion moulds for Pipes & for better efficiency Fittings. Strong Technical Solid experience know how of manufacturing among Employee pipes with set base specifications
Slide 14: Experienced Management Team
13 Experienced Management Team Mr. Sameer Gupta Mr. Sanjay Gupta Managing Director Chairman B.Com Honors from Delhi University (SRCC) Mr. Sanjay Gupta is the second generation of the entrepreneurial family Mr. Sameer Gupta joined the family business in the year 2000 and Holds a rich experience of ov
Slide 15: Our Health, Safety and Environmental Policy
14 Our Health, Safety and Environmental Policy RO and water softening plant facilitating safe consumption of water Regular workshops & training for machine operations / handling & safety Mechanized Finished Goods movement Usage of masks and safety gears for plant personnel High level of machine
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Slide 17: At the Forefront of multiple sector trends
16 At the Forefront of multiple sector trends Urban Infrastructure / Construction : • Increasing Urbanization, changing consumer preferences and a shift towards branded products • Pipes for a varied usage: Water Management, Waste Management, Water Drainage & Sewerage System, Urban Transport, Urban R
Slide 18: At the Forefront of multiple sector trends
17 At the Forefront of multiple sector trends Water Management : • Government focus on water and sanitation management • Strong focus on providing clean water, clean cities with well-organized plans for sewage removal and efficient transport facilities • The Swachh Bharat Mission (SBM) saw a budgeta
Slide 19: At the Forefront of multiple sector trends
18 At the Forefront of multiple sector trends Agriculture Focus : • Improving irrigation schemes for farmers • Water Table Depletion – increase in bore well activities leading to higher demand of larger diameter pipes • Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) • Increase in land under irrigati
Slide 20: Strategic Growth Pillars
STRATEGIC GROWTH PILLARS
Slide 21: Scale-up distribution network across India
20 Scale-up distribution network across India to augment presence and improve market penetration • Establishing a solid presence in key 01 Strengthening Distribution & Footprint markets • Strong presence in North India – extending market reach in other parts of 02 Diversified Product Portfolio India
Slide 22: Diversified Product Portfolio with total offerings at 1,000+
21 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket • Range of products manufactured at the technologically- 01 Strengthening Distribution & Footprint advanced manufacturing facility at Dadri • Emphasis on innovation: One of the first comp
Slide 23: Sharp focus on Value-Added Products: Fittings
22 Sharp focus on Value-Added Products: Fittings – to help strengthen the value chain 01 Strengthening Distribution & Footprint • Focused approach towards Fittings across uPVC and cPVC that offer significantly higher margins 02 Diversified Product Portfolio • High-growth segment – rapidly gaining ma
Slide 24: Capacity Expansion to aid long-term growth plan
23 Capacity Expansion to aid long-term growth plan – to achieve 1,45,000 MTPA by FY2020 • Total available capacity of 53,000 MTPA • Greenfield facility in Ahmedabad to be 01 Strengthening Distribution & Footprint commissioned by March 2018 with an initial capacity of 10,000 MTPA - further expanded t
Slide 25: Efficiently leverage the 'APL Apollo' brand reach and recall
24 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth • The ‘APL Apollo’ brand has covered several 01 Strengthening Distribution & Footprint milestones in its journey since inception • Brand synonymous with quality and reliability of operations 02 Diversified Product
Slide 26: Key Focus Areas
25 Key Focus Areas Continuous Branding Activities – To leverage on Brand ‘APL Apollo’ Diversifying manufacturing base – Entering Western & Southern India with Greenfield facilities located in Gujarat & Bangalore New Product launches – Targeting a basket of 2,000+ products with immaculate features an
Slide 27: Financial & Operational Performance 9M FY2018
| & Financial 13 & 9M FY2018
Slide 28: Q3 & 9M FY18 – Performance Highlights
27 Q3 & 9M FY18 – Performance Highlights Sales Volume, excluding Others* segment (MTPA) Net Income (Rs. Crore) Shift: 52% Shift: 14% Shift: 50% Shift: 18% 23,906 210 20,926 178 8,548 75 5,631 50 Q3 FY17 Q3 FY18 9M FY17 9M FY18 Q3 FY17 Q3 FY18 9M FY17 9M FY18 EBITDA (Rs. Crore) PAT (Rs. Crore) Shift:
Slide 29: Key Developments
28 Key Developments Healthy progress on upcoming Greenfield facility located at Ahmedabad, Gujarat – expected to be commissioned in Q4 FY2018 • Foray in Gujarat to augment the Company’s presence across Western India • Facility to help optimize logistic costs by catering to some existing markets in C
Slide 30: Key Developments
29 Key Developments To establish Greenfield facility in Bangalore – plan to expand Footprint across India • Greenfield facility in Bangalore scheduled to commissioned by Q4 FY2019 with an initial capacity of 25,000 MTPA – to be further expanded by 25,000 MTPA by FY2020 • Target capacity of 145,000 M
Slide 31: Key Developments
30 Key Developments Strong focus towards strengthening the Board of Directors profile • Appoints Mr. Sanjay Gupta as an Additional (Non-executive) Director of the Company – the step will notably strengthen the Board of Directors profile of Apollo Pipes • Appoints Mr. Pradeep Kumar Jain as an Additio
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Slide 33: Financial Trend
32 Financial Trend CAGR – 19% CAGR – 31% Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 239 12% 208 10% 179 149 8% 7% 8% 121 11 12 16 24 32 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 CAGR – 41% CAGR – 15% PAT (Rs. Cr) Volume (MTPA) 16 14 28,977 25,115 10 19,249 21,598
Slide 34: Thank You
33 THANK YOU For further information, please contact: A.K. Jain Anoop Poojari / Shikha Kshirsagar Apollo Pipes Ltd CDR India Email: akjain@apollopipes.com Tel: +91 22 6645 1211/ 6645 1243 Email: anoop@cdr-india.com shikha@cdr-india.com
Apollo Pipes — Phillip Capital Emerging India MIDCAP Conference 2018 on 6ix