Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Valuequest Investor Conference 2023
19 slides from Kaynes Technology India's conference presentation, Mar 17, 2023
Slide 1: Exchange intimation letter for investor presentation
March 17, 2023 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code 3 543664 Stock Cod
Slide 2: The Manufacturing Renaissance – Kaynes Technology
THE MANUFACTURING RENAISSANCE Kaynes Technology Ramesh Kannan – Founder & MD KAYNES TECHNOLOGY INDIA LTD 1
Slide 3: Contents
Contents 1. The Mfg. Imperative – Positives & challenges 2. In the world arena what we need to do 3. The ESDM Sector – An example 4. Our History 5. Business Snap-shot & Kaynes Technology Journey 6. Performance Trends and Peer Comparison 7. Diversified Business Portfolio 8. End to End Design, Enginee
Slide 4: Manufacturing Imperative – The Positives
Manufacturing Imperative – The Positives • Skilled and Plentiful Work Force • Large number of enterprises • Access to Education and Technical training • Access to Internet and Communication to 84 Cr. people • Strong growth of startups Fast-track on aspirations • Government’s commitment: Sabka Saat
Slide 5: Manufacturing Imperative – The Challenges
Manufacturing Imperative – The Challenges • Indian work force as compared with China • Lots of MSMEs • Though several ITIs • Startups only define aspirations • While the intent is to have harmonious development • India is in the “Take-off stage” as per the WWR Model KAYNES TECHNOLOGY INDIA LTD 4
Slide 6: In the World Arena what we need to do
In the World Arena what we need to do … • Positioning as a Great Place to Make • A short Window to initiate a Change in a “Global Habit” • Opportunities Galore • And always remember that– There are others! • Not bound to Habits of Past and not worried about future KAYNES TECHNOLOGY INDIA LTD 5
Slide 7: While at home … An Example The ESDM Market
While at home … An Example The ESDM Market • Trends In India and Exports Potential – Just an example: • ESDM Sector at 40+% CAGR • Key Drivers: • Import Substitution, • Increased Penetration, • ABC or Chexit • Technological Changes Forces Pace • Capacity Formation and Execution Time Shrinks • Is the
Slide 8: The ESDM Sector: An example
The ESDM Sector: An example ESDM – a global trillion dollar industry by ‘25 India all set to be a large ESDM Market INR Bn Indian ESDM Market, INR Bn 2020 – USD 804 Bn 2025E – USD 1,002 Bn FY21 Indian Electronics CAGR 44.4% market 6,711 5,980 41.1% 37.0% Domestic India 4,975 Electronics Productions
Slide 9: Our History
Our History 2022 Listed 2001 – 2010 Setting up Full EMS Capability 2011 Onwards • Set-up Engineering systems Expansion & ODM Capability • Banking arrangements • ODM & IoT Solutions Capability • Implemented ERP • Expansion into Automotive, 1988 – 2000 Aerospace Vertical Learning Manufacturing • Busin
Slide 10: Business Snapshot
Business Snapshot Serving over 24 Diversified Over 340 8 Advanced INR 11000 – Portfolio countries Manufacturing 12000 mn. Across Six customers 51 Facilities Revenue for FY23 Business Exports Clients Verticals Profitability 50% 6-8 + yr. INR 25,579.61 mn. 12 Global >7% PAT Contribution from Each cust
Slide 11: Kaynes Technology Journey
Kaynes Technology Journey Growth in Profits with Stability and Diversity • Manufacturing Expertise: • High Mix – High Tech – High Complexity – High Criticality Electronic Design and Manufacturing • Low to Medium to High Volume manufacturing in EDMS • Capability to handle different types of work prof
Slide 12: Kaynes Technology Performance Trends
Kaynes Technology Performance Trends Total Revenue ~ 17500 + EBITDA and EBITDA Margins EBITDA EBITDA Margin INR Mn INR Mn, % 14.31% 13.26% 14.00% 1,090 ~ 11000-12000 1,200 11.22% 937 12.00% 9.60% 9.72% 1,000 7,104 800 10.00% 3,666 3,702 4,247 600 8.00% 413 409 400 350 6.00% 200 4.00% FY19 FY20 FY21
Slide 13: Kaynes Technology Peer Comparison
Kaynes Technology Peer Comparison Kaynes Technology is distinctive because: PAT Margins % FY20 FY21 FY22 9M FY23 1. There is smart increasing trend of margins and RoCE 10.6 2. The trends are sustainable because of diversified business 7.1 7.4 5.9 6.0 5.8 4.1 3. There is sustained order book growth –
Slide 14: Diversified Business Portfolio
Diversified Business Portfolio Cluster PCBA Head/Tail/Fog/DRL PCBA Switches PCBA BCU Master / Slave Automotive Smart Energy Meter Street light controller HVAC Thermostat Precision Bridge and Strain Industrial Air Data Sensor Mission Critical Products Thermal Imaging Systems Communication Electronics
Slide 15: End to end Design, Engineering, & Manufacturing
End to end Design, Engineering, & Manufacturing Service offering across entire customer value chain Manufacturing Product Design Industrialization services End-of-life maintenance services services services services Prototype OEM Concept to Design manufacturing manufacturing Realization Supply chain
Slide 16: Board of Directors
Experienced Board of Directors and Leadership Team Ramesh Kunhikannan Anup Kumar Bhat Managing Director & Promoter 1 Independent Director 33 years of experience in the EMS industry Several years of experience Associated with the company since inception Ex. VP Ashok Leyland (ssubsidiary support) B.Te
Slide 17: Key Lessons from Our Journey
Key Lessons from Our Journey • The First Lesson – Help people when they do not expect, a business may be made! • The second lesson was – Never sign-up for businesses where you do not know clearly the “cash” cycle!! • The third lesson – Qualify the organization for better customer consideration! • Th
Slide 18: Contents
Contents 1. The Mfg. Imperative – Positives & challenges 2. In the world arena what we need to do 3. The ESDM Sector – An example 4. Our History 5. Business Snap-shot & Kaynes Technology Journey 6. Performance Trends and Peer Comparison 7. Diversified Business Portfolio 8. End to End Design, Enginee
Slide 19: Thank You
THANK YOU KAYNES TECHNOLOGY INDIA LTD 18
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