Slide 1: Steel Strips Wheels Ltd.
STEEL STRIPS WHEELS LTD. May-16
Slide 2: The Company
The Company Group STEEL STRIPS GROUP Chairman R. K. Garg Managing Director Dheeraj Garg Business Category Design, manufacturing and marketing of Steel Wheel Rims for Passenger cars, Utility vehicles, 2/ 3 wheelers, Tractors, Light/ Heavy commercial vehicles and OTRs Manufacturing 1. Dappar (Punjab)
Slide 3: Foot Print
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Slide 4: Manufacturing Locations- Capabilities Dappar, Chandigarh
Manufacturing Locations- Capabilities Dappar, Chandigarh Location: Chandigarh Ambala Highway Capacity: 7.25 Million for Passenger cars, DAPPAR MUV’s, 2& 3 Wheelers. PLANT 1.75 Million for Commercial Vehicles, Tractors and OTR’s. Area: 160,000 sq. meters of land with 55,000 sq. meters of bu
Slide 5: Manufacturing Locations- Capabilities Oragadam, Chennai
Manufacturing Locations- Capabilities Oragadam , Chennai Location: App.35 Kms from Chennai Capacity: 6.0 Million for Passenger cars & MUV’s. Manpower: App. 700 people. CAR & MUV’S: Diameter - 12” to 20” Width - 2.5” to 8” Maximum Tensile - 600 MPa CHENNAI PLANT May-16
Slide 6: Manufacturing Locations- Capabilities Jamshedpur, Jharkand
Manufacturing Locations- Capabilities Jamshedpur , Jharkand Location: Close proximity to Tata Motors and Tata Steel. SOP: July 2010. Capacity: 1.6 Million for C.V. Wheels Manpower : App. 200 people. HCV Multi-Piece: 2/3 Pieces Width : 5.5"-13" JAMSHEDPUR Dia : 15"-24" PLANT Construction, Mi
Slide 7: Partners in Success
Partners in Success de © DAIMLER TATA ASHOK LEYLAND Daimler India Commercial Vehicles Pvt. Ltd. \ == VE COMMERCIAL VEHICLES = SWaRal MARI A VOLVO GROUP AND EICHER MOTORS JOINT VENTURE mazDa R + ahindra ESCORTS | Z LARSEN & TOUBRO CAE @ sexe INDUSTRIAL NEW FRONTIERS. NEW DREAMS May-16 G.
Slide 8: Partners in Success
Partners in Success Kibo. @€ JOHN DEERE E See Ta a, > NA! Ve INTERNATIONAL GCA |p) DREMEL SING TECHS TRACTORS & MOTORS LTD. YyFyFW Aetstt > @} Piaccio’ eA S SUZUKI HIONDA scooters INDIA LIMITED May-16 G.
Slide 9: Partners in Success
Partners in Success PSA PEUGEOT CITRO xl a @ Cc» SS MARUTI _ SSANGYONG SUZUKI genau NISSAN Mahindra May-16
Slide 10: SSWL Export Customers Locations
SSWL Export Customers Locations Russia UK Germany Poland Canada Netherlands Slovakia France Romania Japan Austria Hungary Spain S Korea Italy Morocco Egypt U.A.E. Thailand Colombia Brazil Argentina Customers Locations May-16
Slide 11: New Domestic Business Allocations (Steel Wheels)
New Domestic Business Allocations (Steel Wheels) Vehicle Name SSWL SoB •Maruti Celerio 100% •Hondo Mobilio 100% •Hyundai Xcent 100% •Tata Zest 50% •Tata Bolt 50% •Maruti CIAZ 100% •M&M U-301 100% •M&M S101 100% •Maruti YAD 100% •Datsun Go Plus 100% •Renault Lodgy 100% •Maruti Baleno 100%
Slide 12: SSWL Market share of Current Business in Steel Wheels
SSWL Market share of Current Business in Steel Wheels Segment SoB Passenger Car 50% Tractor 38% Commercial Vehicle 40% OTR (Back Hoe Loader) 70%
Slide 13: Sales Performance Turnover Value
Sales Performance Turnover Value TOTAL SALES TURN OVER USD MLN 250 220 213 200 195 175 180 150 100 50 - 2011-12 2012-13 2013-14 2014-15 2015-16 *FY16 is impacted by Steel Reduction passed on to Customer May-16
Slide 14: Sales Performance Turnover Volumes
Sales Performance Turnover Volumes No. of Wheels in Mn 14.00 13.17 12.47 12.00 11.04 10.19 10.11 10.00 8.00 6.00 4.00 2.00 0.00 2011-12 2012-13 2013-14 2014-15 2015-16 May-16
Slide 15: Segment Wise Volume Mix
Segment Wise Volume Mix 120.0% 100.0% 6.1% 7.4% 10.2% 10.6% 7.7% 6.5% 80.0% 23.2% 25.4% 21.6% 60.0% 40.0% 60.2% 59.5% 61.6% 20.0% 0.0% 2013-14 2014-15 2015-16 Car & MUV Two/Three Wheeler Tractor Truck/OTR Mix is now tilting towards heavier wheels thus improving realization and margin. May-16
Slide 16: Plant Wise Capacity Utilization
Plant Wise Capacity Utilization 250.00% 200.00% 65.14% 60.49% 150.00% 45.72% 82.91% 56.25% 100.00% 37.40% 50.00% 85.47% 88.22% 88.15% 0.00% 2013-14 2014-15 2015-16 Dappar JSR Chennai Utilization levels across all the facilities have moved up. The growth is substantial in case of Jamshedpur plant whi
Slide 17: Exports Turn over Volumes
Exports Turn over Volumes 1800 NO. OF WHEELS IN ‘000 s 1600 1400 1200 1000 800 1533 1513 1426 1285 600 1206 400 200 0 2011-12 2012-13 2013-14 2014-15 2015-16 May-16
Slide 18: SSWL Performance Q4 and FY16
SSWL Performance Q4 and FY16 Q4 Q4 Growth Full Year Full Year Growth 2015-16 2014-15 2015-16 2014-15 Gross Sale 34,419.63 32,675.08 5.34% 131,979.83 127,874.65 3.21% EBITDA 4,682.48 3,649.31 28.31% 16,414.61 12,817.53 28.06% 14.89% 12.25% 13.67% 10.92% PBT 2,405.46 1,558.23 54.37% 7,904.99 4,867.24
Slide 19: SSWL EPS Trend
SSWL EPS Trend 43.00 40.09 38.00 33.00 28.00 25.83 23.00 20.09 19.38 16.48 18.00 15.99 13.00 8.00 3.00 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Slide 20: Cash Accrual vs Secured Term Debt Repayment (Rs Cr)
Cash Accrual vs Secured Term Debt Repayment (Rs Cr) 120 103.2 100 80 74.7 76.9 77.6 71.4 60 72.0 53.1 52.9 56.6 57.5 40 20 0 2011-12 2012-13 2013-14 2014-15 2015-16 Cash Accrual Secured Term Debt Repayment
Slide 21: EBITDA Trend (Rs Cr)
EBITDA Trend (Rs Cr) 180.0 164.1 160.0 140.0 118.5 128.2 120.0 105.0 100.2 100.0 80.0 60.0 40.0 20.0 - 2011-12 2012-13 2013-14 2014-15 2015-16
Slide 22: Growth Driver
Growth Driver CV Wheel Sale JSR Capacity Utilisation CV Sales(In Lacs Nos) JSR Plant Utilisation 16.00 90.00% 82.91% 14.00 13.47 80.00% 70.00% 12.00 60.00% 56.25% 10.00 9.24 50.00% 8.00 6.70 37.40% 40.00% 6.00 30.00% 4.00 20.00% 2.00 10.00% - 0.00% 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 May
Slide 23: ROCE Trend
ROCE Trend 14.0% 13.2% 13.0% 12.0% 11.3% 11.8% 11.0% 10.0% 9.0% 8.5% 8.2% 7.5% 9.0% 8.0% 7.0% 7.3% 6.0% 6.7% 6.2% 5.0% 4.0% 2011-12 2012-13 2013-14 2014-15 2015-16 ROCE% ROCE (Adjusted for revauation reserve & cwip) Even with Alloy Wheel project in 2016-17 ROCE is expected to remain in double digit.
Slide 24: Financial Leverage (Consolidated)
Financial Leverage (Consolidated) 5.50 5.34 5.19 5.16 4.96 5.00 4.54 4.50 4.19 4.00 3.42 3.50 3.00 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 With Alloy Wheel in 2016-17, Leverage is expected to be around 4. May-16
Slide 25: Secured and Total debt (Rs Cr)
Secured and Total debt (Rs Cr) 1000.00 900.00 629.13 578.65 583.58 800.00 568.07 508.17 700.00 600.00 500.00 400.00 300.00 233.02 229.31 226.93 201.11 186.24 200.00 100.00 0.00 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16 SECURED TERM DEBT TOTAL DEBT May-16
Slide 26: SSWL Alloy Wheels Plant Mehsana, Gujarat
SSWL ALLOY WHEELS PLANT MEHSANA, GUJARAT IN TECHNOLOGICAL COLLABORATION WITH KALINK, KOREA
Slide 27: Geographical Location Mehsana, Gujarat
Geographical Location Mehsana, Gujarat H.O. - CHANDIGARH MKTG.BO 1. DAPPAR PLANT NEW DELHI MEHSANA PLANT 4. MEHSANA PLANT ( 300 km from Kandla port ) MKTG. BO MUMBAI 3. JAMSHEDPUR PLANT (300 km from Kolkata port) MKTG. BO PUNE 2. CHENNAI PLANT ( 50 km from port ) Location Distance Customer Plant Tot
Slide 28: Proposed Alloy Wheels Plant: Gujarat
Proposed Alloy Wheels Plant: Gujarat •Proposed location: Mehsana, Gujarat •Land measuring: 240,000 Sq Mt.; Product Size Range: 14” to 20” •Capacity: Production: 1.5 Mln & Painting: 2.5 Mln; Low Pressure Die Casting with Diamond Cutting •Investment: Approx USD 50 Mln. Kalink will invest USD 2 Mln in
Slide 29: Why Alloy Wheels?
Why Alloy Wheels? •Appearance Alloy wheels have enhanced aesthetic appeal and look much better than Steel wheels •Weight Lighter in weight compared to Steel wheels leading to better fuel efficiency of the car and helps in adhering to stricter emission norms •Strength Aluminum mixed with other metals
Slide 30: Why SSWL For Alloy Wheels?
Why SSWL For Alloy Wheels? •Wheel Manufacturing/Selling Experience SSWL already into manufacturing/selling steel wheel rims across all leading PV Manufacturers. With Alloy wheel, SSWL will be covering the entire portfolio covering Steel/Alloy Wheel under one umbrella. •Established Customer Base SSWL
Slide 31: SWOT analysis SSWL
SWOT analysis SSWL STRENGTH WEAKNESS 1. SSWL leading supplier of Steel Wheel rims in India. 1. Growth dependent of industry. Though Company is 2. Diversified customer base, all major OEM’s are covered mitigating the same with diversified customer base. 3. Globally accepted product and excellent repu
Slide 32: Alloy Wheels opportunity analysis
Alloy Wheels opportunity analysis Kosei-Minda, Chennai Enkei, Pune 1. Annual Installed Capacity of 0.84 Mln wheels 1. Annual Installed Capacity of 0.96 Mln wheels 2. Quality issues with high rejections % 2. No immediate capacity expansion plans 3. High operating costs due to expensive Power, Gas 3.
Slide 33: Technological Partner: Kalink
Technological Partner: Kalink Kalink, Korea Part of HIHO Group, Headquartered in Seoul, Korea with its presence in Aluminum Alloy Billet production, Trading of Aluminum for Mining and Smelting Group sales of more than USD 1.3 Billion Kalink has 2 plants for Aluminum Alloy wheels: Korea (1.6 Mln w
Slide 34: Proposed Time plan for SOP
Proposed Time plan for SOP Completion Sr. No. Activity Status month 1. Land Purchase May 2015 Completed 2. Project agreement sign off with Kalink Sep 2015 Completed 3. Groundbreaking Dec 2015 Completed 4. Building and Utilities completion Sep 2016 Planned 5. Equipment Erection Dec 2016 Planned 6. Co
Slide 35: Summary of Project Cost
Summary of Project Cost May-16
Slide 36: Thank You
Thank You May-16