Kiri Industries Limited · NSE:KIRIINDUS
Kiri Industries — Investor Presentation (July 2023)
45 slides from Kiri Industries's investor presentation, Jul 10, 2023
Slide 1: Submission letter to stock exchanges
July 10, 2023 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai- 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 532967 Scrip ID - KIRIINDUS Dear Sir/Madam, Sub: Submission of Investor Presentation-June
Slide 2: Investor Presentation June 2023
INVESTOR PRESENTATION June 2023
Slide 3: Executive Summary
Executive Summary PRODUCTS Dyes Intermediates Dyes Basic Chemicals H-acid Reactive dyes Sulphuric Acid Vinyl Sulphone Acid Dyes Oleum 65% and 23% Specialty Intermediates Direct Dyes Chloro Sulphonic Acid Naphthalene and Aniline based intermediates Disperse Dyes Thionyl Chloride INDUSTRIES CATERED OV
Slide 4: Company Overview
Kiri Industries Limited Fienre fall of Colonie COMPANY OVERVIEW
Slide 5: Company Overview
Company Overview Consolidated Revenue Break-up (INR Mn) 6,339 6,625 6,499 3,801 4,098 8,650 7,340 6,607 5,792 5,386 • Established in 1998, Kiri Industries Limited (KIL), is based out of Gujarat and has emerged as one of FY19 FY20 FY21 FY22 FY23 the largest manufacturers and exporters of a wide range
Slide 6: Management Team
Management Team Yagnesh Mankad (Whole Time Director): • He is a B.E. (Mechanical Engineering) & MBA graduate • He has 43 years’ experience and exposure in the field of Engineering, Plastics, Textiles and Chemical industries across the corporates. • He has also vast working experience in operations,
Slide 7: Key Milestones
Key Milestones 1998 2004 2006 2008 2010 2013 2015 2018 2020 Incorporation Two-Star Commercial Entered into a Acquisition DyStar Filed minority Achieved Kiri Industries of Kiri Dyes Export House production of JV Agreement of assets became oppression highest PAT became a and Chemicals backward with We
Slide 8: Manufacturing Facilities
Manufacturing Facilities Unit I, Unit II & IV Location: Ahmedabad, India. Capacity Installed: • Reactive Dyes : 36,000 MTPA Products manufactured: • Disperse Dyes: 8,000 MTPA • S. O. Dyes • Disperse Dyes Unit V Location: Vadodara, India. Capacity Installed: • Basic Chemicals : 500 TPD (182,500 MTPA)
Slide 9: Manufacturing Process
Manufacturing Process Caustic Key Inputs Ice Napthalene Sulphur Sodium Nitrate Soda Ash Water Aniline Soda Chlorine Sulphur & Bulk Chloro Para Nitro Sulphuric Oleum 65% Sodium Bi Thionyl Chemicals Beta-Nepthol Sulphonic Acetanilide MPD Aniline Acid Oleum 23% Sulphate Chloride Division Acid Vinyl Sul
Slide 10: Geographical Presence
Geographical Presence AHMEDABAD THE NETHERLANDS VADODARA Canada UK CZECH REPUBLIC BELGIUM SPAIN HUNGARY ITALY UZBEKISTAN KOREA USA PORTUGAL GREECE TURKEY CHINA PAKISTAN LEBANON TUNISIA NEPAL ISRAEL BANGLADESH TAIWAN INDIA EGYPT UAE HONG KONG EL SALVADOR THAILAND HONDURAS PHILIPPINES MALAYSIA COLOMBI
Slide 11: Awards and Accolades
Awards and Accolades Award for Direct Platinum Award for Trishul Award for Chemexcil First Award for First Award for Outstanding Export of Self Small Scale Sector Small Scale Sector Gold Award Direct Export of Self Direct Export of Self Entrepreneur Award Manufactured Dyes 2002-03 2005 2006-07 Manuf
Slide 12: Key Strengths
Key Strengths • High entry barriers due to a stringent process of acquiring new permissions. • Heavy capital expenditure. Entry Barrier • Strict implementation of environmental and pollution norms. • The Company established a track Competitive record of long-term relationship with Position key globa
Slide 13: Business Overview
Kiri Industries Limited Fienre fall of Colonie BUSINESS OVERVIEW
Slide 14: Business and Product Mix
Business and Product Mix Thionyl Chloro Chloride Other Revenue Break-up FY23 Sulphonic Speciality Acid Intermediates Basic Chemicals 6% Oleum 65% Vinyl & 23% Sulphone Basic Dyes Chemicals Intermediates 6% 48% Dyes 46% Intermediates Sulphuric H-Acid 48% Acid Dyes 46% Reactive Disperse Dye Dyes Acid D
Slide 15: Value Chain – Dye Stuff Manufacturing
Value Chain – Dye Stuff Manufacturing Raw Materials for Dyes Aniline Naphthalene In-house Acids and Usage of Intermediates such as VS, H- B-Napthol MPD, etc. effluents & by-products Acid, Gamma Acid, K-Acid MUA, etc. Result of Zero Waste Dyes Inputs Intermediates Manufacturing process Dyestuffs Black
Slide 16: Benefits of Zero Waste
Benefits of Zero Waste Operating Efficiency • The Company’s focus on becoming a Entry Superior Zero Waste company has ensured Barrier Return Ratios that Spent Acids are a source of revenue (converted into commercially viable products) and not a source of expense (frees the hassles of management and di
Slide 17: Dyestuff – An Overview
Dyestuff – An Overview Dyestuff are organic and inorganic substances which can absorb light as well as reflect some light to show colour. The dyestuff is also a water soluble substance. Criteria for a Suitable Dyestuff • Economical / Competitive • Better brightness • Non-toxic • Better fastness • Co
Slide 18: Dyestuff Manufacturing Process
Dyestuff Manufacturing Process Diazotization of Amine + HCl + Sodium Nitrite + Water + Ice Dissolving of Coupling Coupling of Component Diazo with Blending and (Coupling Coupling Clarification Standardization Spray Drying fine Packing Component + Components + standardization Water + Ice + NaHCO3 Cau
Slide 19: Reactive Dyes
Reactive Dyes • Reactive Dyes are the most versatile and popular class of Organic Dyes for importing colour on cellulosic fibres. • These are water soluble dyes which react to fibre, forming a direct chemical linkage with the application materials, which is not easily broken and offers good wash fas
Slide 20: Disperse Dyes
Disperse Dyes • Disperse dyes are synthetic organic dyes and is a kind of organic Fastness to wet treatment Fastness to dry heat substance which is free of ionizing group. They are less soluble in water and are used for dyeing synthetic textile materials. In terms of providing satisfactory Sublimati
Slide 21: Other Dyes
Other Dyes ACID DYES • Acid dyes are the dyes which can be applied directly to the application materials from an aqueous solution (without mordant). • The Company has been working on developing Acid dyes since a decade. It has been manufacturing this range of dyes for a long time. • Colours Availabl
Slide 22: Dyes Intermediates
Dyes Intermediates Total Revenue (INR Mn) & Gross Margins • Dyes intermediates are the main raw materials used for manufacturing dyestuffs. (Standalone) • The manufacturing chains of dyes and dyes intermediates can be traced back to petroleum-based 47% 43% 43% products. 34% • Naphtha and natural gas
Slide 23: Dyes Intermediates – H-Acid
Dyes Intermediates – H-Acid H-ACID • H-acid is one of the leading dyes intermediates in the world, used in the manufacture of black dyes. • H-acid (8-amino- 1-hydroxynaphthalene-3,6-disulfonic acid), an important dye intermediate, is produced from Naphthalene by a combination of the unit processes o
Slide 24: Dyes Intermediates – Vinyl Sulphone
Dyes Intermediates – Vinyl Sulphone VINYL SULPHONE • Vinyl Sulphone is an industrial chemical used as a key raw material for manufacturing reactive dyes, having application mainly in textiles. It is manufactured from aniline. • It has applications in the manufacturing of Reactive dyes. • The Company
Slide 25: Basic Chemicals
Basic Chemicals • As part of strategic backward integration, the Company has set up a Basic Chemical facility to Total Revenue (INR Mn) & Gross Margins manufacture: (Standalone) • Sulphuric Acid • Chloro Sulphonic Acid 36% 37% • Thionyl Chloride 36% 34% • Oleum • All these products are made in one i
Slide 26: Future Outlook
Future Outlook • To increase volume of business and earn • Continue to improve product margins to better margin through optimization of achieve profit incremental growth product mix, reducing the fixed costs, and • Achieve 25% to 30% growth in revenue as reaching out untapped global markets. well as
Slide 27: DyStar
Kiri Industries Limited Fienre fall of Colonie DYSTAR
Slide 28: About DyStar
About DyStar • The DyStar Group is a leading dyestuff and chemical manufacturer and solution provider, offering a broad portfolio of colorants, specialty chemicals, and services to customers across the globe. • With a heritage of more than a century in product development and innovation for the text
Slide 29: History
History 1995 2002 2007 2012 2016 DyStar was founded in 1995 as a FOUNDATION ACQUISITION: ACQUISITION: FOUNDATION: ACQUISITION: JOINT Color Texanlab Sustainable Emerald joint venture between Hoechst AG VENTURE OF: Solutions Textile Performance and Bayer Textile Dyes. In 2000, the Bayer AG and Interna
Slide 30: Value Creation in DyStar
Value Creation in DyStar SUCCESSFULLY TURNING AROUND THE OPERATIONS OF DYSTAR The turn-around plan was successfully executed by replacing high cost German manufacturing base with low cost manufacturing in India, China and Indonesia, etc. KIL is entitled to profit shares of INR 826 Mn, INR 1,976 Mn,
Slide 31: Industry Overview
Kiri Industries Limited Fienre fall of Colonie INDUSTRY OVERVIEW
Slide 32: The Colourant Industry
The Colourant Industry • Global colorants market is forecasted to reach USD 89.54 Billion with a CAGR of around 5.76% during 2023 – 2030. The market is driven by the rising inclination of consumers towards innovative and appealing shades of packaged products and items. Moreover, the increasing need
Slide 33: Dyestuff Industry
Dyestuff Industry Dyestuff Industry: The dyes and dyestuff industries play a major role in the growth of the chemical industry. Dyes intermediates are products that are transformed to finished dyes and pigments. The dye intermediates serve various industries like plastics, paint, textiles, printing
Slide 34: India’s Competitive Advantage
India’s Competitive Advantage China Factors Advantage India 2014-present China Factors: (Industry is shifting to other Asian In China, apart from the ETP countries; India is well placed to hurdle, there is: grab the opportunity) 1. Reduction in the refund of VAT from 17% to about 13% on DI Intervent
Slide 35: Strategic Overview
Kiri Industries Limited Fienre fall of Colonie STRATEGIC OVERVIEW
Slide 36: The Way Forward
The Way Forward Set up manufacturing facilities of Focus on Prioritise Specialty & Focus on establishing Focus enforcement of Commodity setting up Inorganic and joint ventures on Free Focus on Judgment chemicals/ manufacturing organic with Cash Flow strengthening through and facility to growth leadi
Slide 37: Financial Overview
Kiri Industries Limited Fienre fall of Colonie FINANCIAL OVERVIEW
Slide 38: Historical Standalone Income Statement
Historical Standalone Income Statement PARTICULARS (INR Mn) FY20 FY21 FY22 FY23 Revenue from Operations 9,690 6,892 11,368 6,015 Total Expenses 8,729 6,901 11,054 7,106 EBITDA 961 (9) 314 (1,091) EBITDA Margins (%) 9.92% NA 2.76% NA Other Income 41 20 18 234 Depreciation 366 390 436 441 Finance Cost
Slide 39: Standalone Balance Sheet
Standalone Balance Sheet PARTICULARS (INR Mn) FY21 FY22 FY23 PARTICULARS (INR Mn) FY21 FY22 FY23 Equity 6,346 6,250 4,913 Non Current Assets 8,098 8,117 7,726 Equity Share Capital 336 518 518 a) Property, Plant and Equipment 5,189 5,062 4,736 Other Equity 6,010 5,732 4,395 b) Other Intangible assets
Slide 40: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY20 FY21 FY22 FY23 Revenue from Operations 13,054 9,570 14,969 9,451 Total Expenses 11,193 8,744 13,756 9,825 EBITDA 1,861 826 1,213 (374) EBITDA Margins (%) 14.26% 8.63% 8.10% NA Other Income 53 22 20 33 Depreciation 444 461 502 489 Fin
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (INR Mn) FY21 FY22 FY23 PARTICULARS (INR Mn) FY21 FY22 FY23 Equity 21,844 25,726 26,793 Non Current Assets 21,580 24,949 26,681 Equity Share Capital 336 518 518 a) Property, Plant and Equipment 5,591 5,430 5,081 Other Equity 21,508 25,208 26,275 b) Other Intang
Slide 42: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn)* & PAT (INR Mn)* & PAT Margins (%)* 14,969 EBITDA Margins (%)* 13,938 1,576 13,054 2,310 1,861 1,157 9,570 9,451 1,213 11.31% 529 16.57% 8.86% 218 14.26% 826 8.10% 2.28% 3.53% 8.63% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21
Slide 43: Capital Market Data
Capital Market Data Share Price up to 31st March, 2023 20% 10% 0% -10% -20% -30% -40% -50% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Kiri Sensex Price Data (As on 31st March, 2023) INR Shareholding Pattern (As on 31st March, 2023) Face Value 10.0 Public Mark
Slide 44: Disclaimer
Disclaimer Kiri Industries Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all
Slide 45: Thank You
Kiri Industries Limited Fienre fall of Colonie THANK YOU