Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Investor Presentation (November 2010)
25 slides from Balkrishna Industries's investor presentation, November 2010
Slide 1: Investor Presentation
Investor Presentation November 2010 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Content
Content Of f - h i g h way t y re So lu ti o n s Page A. Management 3 B. Global Markets – Local Production 8 C. Key Competitive Advantages 16 D. Growth Strategies 18 E. Financial Highlights 21 3
Slide 4: Management
Management Of f - h i g h way t y re So lu ti o n s 4
Slide 5: Siyaram – Poddar Group
Siyaram – Poddar Group Flagship Company of Group Revenue the Group INR 2,517 Crs Balkrishna Industries Siyaram Silk Govind Rubber INR 1,564 Crs INR 663 Crs INR 290 Crs Off-Highway Bicycle Textiles Tires Tires Paper & Garments Textile Processing * FY2010 Revenue 5
Slide 6: Balkrishna Industries…
Balkrishna Industries… India‟s leading exporter of “Off-Highway Tires” Widest and comprehensive product portfolio of over 1900 SKUs 160,000 MTPA Installed Capacity 120,000 MTPA Achievable Production Capacity Market presence in more than 120 countries Europe, America, Asia Pacific, Middle
Slide 7: Under the able leadership of …
Under the able leadership of … Mr. Arvind Poddar – Vice Chairman & Managing Director Promoter of the Company In 2006, assumed charge as Vice Chairman & Managing Director In last 5 years, Company grew exponentially with over 30% CAGR Fuelling growth : Capacity creation of over 60% underway
Slide 8: Consistently growing in all areas of business
Consistently growing in all areas of business Parameter FY06 FY10 Revenue (Rs. Crs) 620 1,564 Finance* Net Profit (Rs. Crs) 69 217 Net Worth (Rs. Crs) 288 681 No. of plants 2 3 Production Installed Capacity (MT) 65,000 1,60,000 Achievable Production Capacity (MT) 48,750 1,20,000 Production (MT) 42,5
Slide 9: Global Markets – Local Production
Global Markets – Local Production Of f - h i g h way t y re So lu ti o n s 9
Slide 10: Presence in over 120 countries…
Presence in over 120 countries… Demand drivers in Key Continents Europe Americas Asia Pacific Large & Mechanized farms Agriculture & Mining sector Agriculture & Infrastructure growing booming Large replacement market Large Farm-Equipments Moving from traditional to trends larger sized eq
Slide 11: With various “Off-Highway Tires (OHT)”…
With various “Off-Highway Tires (OHT)”… Tires for Tractors, Trailers, Farm Equipment, Agriculture Forestry (70%) Specifically designed as per farm requirement Tractor Radial Tires under brand “Agrimax” Industrial, Construction & Earth Mover tires OTR (26%) Tires for articulate dump trucks,
Slide 12: Through various sales channels
Through various sales channels 90% Sales under „BKT‟ brand Distributors Off-take 10% Caters Replacement Market OEMs Strong Global Network 15% Over 200 Distributors in 120 countries Expanding market reach by Increasing penetration of existing distributors Adding new distributors OEMs Off-
Slide 13: Existing manufacturing facilities…
Existing manufacturing facilities… State of the art tire manufacturing plants at Bhiwadi & Chopanki in Rajasthan Waluj, Maharashtra In-house Mould Plant, Dombivali, Maharashtra Installed Capacity of 160,000 MTPA Achievable Production Capacity of 120,000 MTPA Wide product range of over
Slide 14: Greenfield expansion underway
Greenfield expansion underway Greenfield Capacity Expansion of 120,000 MTPA Achievable Production Capacity of ~ 90,000 MTPA Location: Bhuj, Gujarat Total estimated Capital Outlay of Rs.1,200 Crs Year Capex Estimated FY2011 Rs. 100 Crs FY 2012 Rs. 700 Crs FY 2013 Rs. 400 Crs Funding: Debt &
Slide 15: Key Raw materials
Key Raw materials Raw material composition Chemicals 16% Bead Wire Natural Rubber 3% 32% Fabric 6% Carbon Black Synthetic Rubber 27% 16% In Volume Natural Rubber – 32% of raw material India, Indonesia, Malaysia & Thailand - Major Natural Rubber Producing countries Closer to Rubber producing co
Slide 16: Key Competitive Advantages
Key Competitive Advantages Of f - h i g h way t y re So lu ti o n s 16
Slide 17: Key Competitive Advantages
Key Competitive Advantages Low Operating Cost ... v/s ... Global Peers • Labor intensive business, however India manufacturing leads to 1/5 th labor cost compared to global peers • Lower selling & distributing expenses due to sales by distributor network Faster Mind to Market Product Roll-out • Stro
Slide 18: Growth Strategies
Growth Strategies Of f - h i g h way t y re So lu ti o n s 18
Slide 19: Sales strategy to back capacity creation
Sales strategy to back capacity creation A Increase penetration in current markets • Increasing coverage through current distributors • Appointment of new distributors B Increase exposure with OEMs • Developing newer products for OEMs • Expanding the OEMs base C Development of new emerging markets v
Slide 20: India business opportunity unfolding …
India business opportunity unfolding … Presently, ~ 11% of Revenue from India From OTR Segment Tie-up with OEMs like JCB, Escorts, L&T Case Investment in Indian Infrastructure growing rapidly Earthmoving & Construction equipment (ECE) industry to grow five fold From USD 2.3 billion to US
Slide 21: Financial Highlights
Financial Highlights Of f - h i g h way t y re So lu ti o n s 21
Slide 22: Standalone - Tire Business: Quarterly Financial Highlights
Standalone - Tire Business : Quarterly Financial Highlights Rs. Crs Q2 FY11 Q2 FY10 H1 FY11 H1 FY10 FY 2010 Revenue 475 302 934 605 1,413 Raw Material 291 129 566 274 734 Employee Expenses 13 10 25 21 42 Other Expenses 81 70 160 129 241 EBITDA 91 93 183 182 396 EBITDA Margin 19.0% 30.7% 19.6% 30.0%
Slide 23: Standalone - Tire Business: Balance-Sheet
Standalone - Tire Business : Balance-Sheet Rs. Crs 30-Sep-10 31-Mar-10 30-Sep-09 Net Worth 757 661 565 Total Debt 515 464 448 Deferred Tax Liabilities 55 55 53 Total Liabilities 1,328 1,180 1,066 Net Assets 714 615 657 Investment 148 81 70 Current Assets Inventory 196 203 175 Receivables 271 240 181
Slide 24: Annual Financial Highlights: Tire Business
Annual Financial Highlights : Tire Business Rs. Crs. FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 CAGR Revenue 513 749 1,006 1,257 1,413 29% Profitability YoY Growth 46% 34% 25% 12% EBITDA 135 176 232 202 396 31% EBITDA Margin 26% 24% 23% 16% 28% Continuous Revenue Growth despite global credit crisis
Slide 25: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Balakrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. Mr. B K Bansal, Director - Finance Mr. Gaurang Vasani ir@bkt-tires.com vgaurang@sgapl.net www.bkt-tires.com www.sgapl.net 25
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