Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Investor Presentation (November 2021)
28 slides from Epigral's investor presentation, Nov 16, 2021
Slide 1: Revised Corporate Presentation filing letter to exchanges
MEGHMANI FINECHEM LTD. Regd. Office: CH/1, CH/2, GIDC Industrial Estate, Dahej, Tal. Vagra, Bharuch - 392 130. Gujarat, (INDIA) Phone: +91- 635 995366 1/62/63/64/65, E-mail : helpdesk@meghmanifinechem.com, URL: www.meghmanifinechem.com CIN: L24100GJ2007PLC051717 16.11.2021 To National Stock Exchange
Slide 2: Meghmani Finechem Limited Corporate Presentation
Meghmani Finechem Limited Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: MFL Plant Video
MFL Plant Video 3 | MEGHMANI FINECHEM LIMITED
Slide 5: Company Overview
Company Overview The Next Gen Business Founded: 2007 21% 16% 4 Year Revenue CAGR (FY21) 4 Year EBITDA CAGR (FY21) Employees: 700+ 0.8x 16% Debt to Equity (FY21) ROCE (FY21) Capacity: Chlor-Alkali# – 315 KTPA 2,000 Derivatives# – 110 KTPA Revenue from operations (₹ Cr) 1260 Captive Power Plant: 829 9
Slide 6: What are we into
What are we into ESG Focus Our Business o Leading producer of Chlor- o Strong focus on sustainability - alkali products and value awarded with the ‘Responsible Care’ added derivatives Logo by ICC Strategic Location Competitive Advantage o State of the art manufacturing o Domestically produced ECH, C
Slide 7: Our Evolution
Our Evolution FY 2021 FY 2020 FY 2018 o Expanded Caustic o Commissioned FY 2017 50 KTPA CMS Chlorine capacity 294 Planned New Plant in July FY 2015 Caustic 2019. KTPA; CPP - 96 MW in Expansion & FY 2010 Commissioned KOH Plant – Chlor-Alkali o Announced ECH Project June 2020 o Commission Commissioned
Slide 8: Driven by Strong Values
Driven by Strong Values • Maintaining high standards on transparency and disclosures Trust with all our stakeholders We enhance diverse employee engagement for increased o Caring for the environment and productivity & creativity and are Diversity Integrity the communities in which we an equal opport
Slide 9: MFL Evolving to value added specialty products
MFL Evolving to value added specialty products Fully Integrated Product Portfolio High Value Products Chlorotoluene & value chain ECH ECH Import Substitution – Make in India Chlor-Alkali H202 H202 CPVC CPVC Diversified End User Industries Chlorine Hydrogen CMS CMS Sole Manufacturer of ECH in India C
Slide 10: Competitive Strength
Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o MFL is a known brand in Indian chemical market o Strategic location with close connectivity to o Serving domestic customers for last 12 Yrs ports and raw material availability. o Pan
Slide 11: Catering to High Growth Industries
Catering to High Growth Industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes Heat Resistant Pipes Refrigerant Gas Water Treatment Electronics The
Slide 12: Levers of Future Growth
Levers of Future Growth High-margin products with low-cost capacity expansion Manufacturing Plant Capacity (‘000 TPA) 106 Q2 FY23 60 50 50 294 30 21 Caustic Soda Hydrogen Peroxide Chloromethanes Caustic Potash Epichlorohydrin CPVC Chlorotoluene & its Q2 FY21* Q2 FY20* Q1 FY23 Q2 FY23 value chain Q4
Slide 13: Transitioning to Value added products
Transitioning Transitioning to Value to Value added added products Specialty Chemicals High value products to fuel future growth Chlor-Alkali – 74% Chlor-Alkali–– Chlor-Alkali 40% 40% FY2021 Derivatives FY2025E ₹829 Cr 26% ₹2300 Cr Derivatives & DerivativesSpecialty & Specialty Chemicals Chemicals –
Slide 14: Product Portfolio – Chlor-Alkali
Product Portfolio – Chlor-Alkali Caustic Soda (NaOH) Caustic Potash (KOH) India’s NaOH Requirement: 4,000 KTPA India’s KOH Requirement: 86 KTPA Demand CAGR: ~ 8% Demand CAGR: ~ 8% Alumina Textile Soaps & Detergents Agrochemicals API o We are 4th largest producer in India o We are 3rd largest
Slide 15: Product Portfolio – Derivative products
Product Portfolio – Derivative products Chloromethanes (CMS) Hydrogen Peroxide (H2O2) India’s CMS Requirement: 430 KTPA India’s H2O2 Requirement: 282 KTPA Demand CAGR: ~ 12% Demand CAGR: ~ 10% Solvent in Pharma PTFE Pipes Refrigerant Gas Paper & pulp Textile Effluent treatment o We are 4th l
Slide 16: New Product Portfolio – Specialty Chemicals
New Product Portfolio – Specialty Chemicals CPVC Resin Epichlorohydrin (ECH) India’s CPVC Requirement: 127 ktpa India’s ECH Requirement: 62 ktpa Demand CAGR: ~ 13% Demand CAGR: ~ 15% Wind mill Automobile Adhesives Pipes and Fixtures o Once commissioned, we will be largest producer o 1st comp
Slide 17: Chlorotoluene & its value chain - Specialty Chemicals
Chlorotoluene & its value chain - Specialty Chemicals Project Details Rationale o Capex for the project will be ₹ 180 Cr and o Foundation for the next phase of growth in expected revenue of Rs. 300 Cr Specialty Chemicals o Expected commissioning date: Q4FY24 o Chlorine is captive a raw material - in
Slide 18: Research & Development Centre
Research & Development Centre Project Details Rationale o Capex for the project will be ₹ 25 Cr o R&D center will be used for creating further molecules for Chlorotoluene and other new molecules, which will be intermediates for pharmaceutical and agrochemical active o A step towards strengthening pr
Slide 19: Professional Management Team
Professional Management Team Mr. Maulik Patel Mr. Kaushal Soparkar Chairman & Managing Managing Director Director Mr. Yashodhan Chitnis Mr. Naresh Agarwal Mr. Vijay Vasudeva Mr. Sanjay Jain Sales Head – Sales Head – Chlor- Head of Operations Chief Financial Officer Derivatives & Specialty Chemicals
Slide 20: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Commitment towards reduce energy i
Slide 21: Growth Strategy
Growth Strategy Forward & Backward Opportunities in high New Value Chains: Achieving economies Integration: growth sectors: of scale: o Scale up capacities in o Explore opportunities o Expand chemistry o Optimising existing existing products in various sectors expertise to enter complex o New value
Slide 22: Appendices
Appendices
Slide 23: Fully Integrated Complex
Fully Integrated Complex 22 | MEGHMANI FINECHEM LIMITED
Slide 24: Generating Sustainable Profits
Generating Sustainable Profits Stakeholder Value Creation Revenue from operations EBITDA (₹ Crores) PAT (₹ Crores) (₹ Crores) 44% 26% 25% 43% 37% 312 32% 183 CAGR 21% 829 32% 155 255 261 17% 18% 710 12% 194 112 598 611 101 144 67 392 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 F
Slide 25: Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet Achieving Strong growth without extensive debt Debt / EBITDA (x) ROCE (%)* 38% 2.7 36% 2.1 18% 1.3 16% 15% 0.9 0.3 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 *ROCE for FY20 & FY21 was impacted by higher CAPEX Superior Balance Sheet Strength 24 | MEGHMANI FINEC
Slide 26: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 Total Revenue 393 602 720 613 831 Gross Profit 167 359 455 335 443 Gross Margin (%) 43% 60% 64% 55% 53% EBITDA 144 255 312 194 261 EBITDA Margin (%) 37% 43% 44% 32% 32% Depreciation 55 55 54 44 74 Finance Cost 14 9 25 11 29 PBT 75
Slide 27: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY19 FY20 FY21 Liabilities (₹ Cr) FY19 FY20 FY21 Fixed Assets 763 1,131 1,228 Share Capital 41 42 42 Financial Assets 5 4 10 Reserves & Surplus 452 542 643 Other Non-current 22 5 29 Long-Term Borrowings 365 418 340 Assets Inventories 41 48 54 Long-term Provisions
Slide 28: About Us and Investor Contact
About Us and Investor Contact Corporate Office Manufacturing Site “Meghmani House”, B/h Safal Profitaire, Corporate CH/1 and CH/2, GIDC Industrial Estate, Dahej, Tal. Vagra, Dist. Bharuch – 392130, Gujarat, Road, Prahladnagar, Ahmedabad 380015, Gujarat, India India www.meghmanifinechem.com Milind Ko
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