Setco Automotive Limited · NSE:SETCO
Setco Automotive — Investor Presentation (June 2011)
25 slides from Setco Automotive's investor presentation, June 2011
Slide 1: Corporate presentation June 2011
Corporate presentation June 2011
Slide 2: Safe harbour statements
Safe harbour statements Materials and information provided during this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to dif
Slide 3: Leading Indian auto component company, top five M&HCV clutch makers
We are a leading Indian auto component company and among the top five manufactur ers of M&HCV clutches globally. 4 manufacturing facilities Total revenues up by 25% and one R&D centre Established in 1982, by Mr. CAGR from 2007-11 located in 3 countries (UK, Harish Sheth, CMD USA & India) A preferred
Slide 4: Key milestones
Key milestones 1982-85 1999-2000 • Jointly promoted Gujarat SETCO Clutch Ltd with Entered into technical collaboration with LIPE Gujarat Govt. Clutch Division (UK) of Dana Corporation for • Went public with IPO in 1984 manufacture of M&HCV clutches 2001-06 • Became largest manufacturer of M&HCV clut
Slide 5: Our product profile
Our product profile 12/310 Single 13/330 Single & Twin 14/352 Single & Twin 15/380 Single & Twin Diaphragm Spring Direct Pressure Coil Direct Pressure Coil Direct Pressure Coil Spring Spring Spring Each Clutch has multiple variants to suit multiple engine 16.5/420 Single 17/430 Single Oil Spray Disc
Slide 6: Global manufacturing presence
Global manufacturing presence Setco Kalol Complex, Gujarat, India Setco, Sitarganj, Uttarakhand, India
Slide 7: Global manufacturing presence
Global manufacturing presence Setco Haslingden, Lancashire, UK Setco Paris, TN, USA
Slide 8: New R&D Building at Kalol (Under Construction)
New R&D Building at Kalol (Under Constr uction) 8
Slide 9: Design & Development overview
Design & Development o verview • Setco R&D facilities exist in the UK and India. • Global Design & Development is lead from the UK R&D centre, which has been developing commercial vehicle clutches for over 30 years. • Key R&D facilities and capabilities include: § Auto cad (2D Drafting) § 3D CAD Mod
Slide 10: Core management team
Core management team Mr. Harish Sheth , Chairman & Managing Director BE and MBA from USA has a vision to craft Setco as a premier clutch manufacturer through acquisition of diversified global auto component companies and greater customer base. He has steered Setco to be the largest manufacturer of c
Slide 11: Core management team
Core management team Mr. R.K. Ghosh, Director (Technical) Master in Technology from IIT, Kharagpur in Mechanical Engineering (Machine Design) and PGDBM (MBA) from XLRI Jamshedpur Marketing and Finance. He retired as Vice President at Tata Motors with 36 years of experience in various areas like R&D,
Slide 12: Marquee clients
BMC By cat enum LEYLAND an <=> GM Bi comarsu Cm A A TEREXE TATA Mercedes-Benz €&)SETCO LIPE AUTOMOTIVE CLUTCH
Slide 13: Our growth in numbers (Standalone)
Our growth in number s (Standalone)
Slide 14: In 2010-11, we continued to sustain the growth momentum
In 2010-11, we continued to sustain the growth momentum, thereby laying a strong foundation for the future. Total revenues EBIDTA PAT EBIDTA margin up 43% up 52% up 85% up 120 bps to Rs. 3.03 bn to Rs. 600 mn to Rs. 328 mn to 19.7% OE Replacement Exports New markets entered Sales sales Turkey, Ghana
Slide 15: Our performance was based on the following industry developments
Our perfor mance was based on the following industr y developments… Robust economic growth • Indian economy grown by 8.6% during 2010-11 • Better performance from Agricultural sector • Rising services sector output • Stable industrial production Traditionally lower per capita consumption • Lower per
Slide 16: … and the following corporate initiatives
… and the following cor porate initiatives… Customer -centric Focus on after market Thrust on research strategy and exports sales and development • High levels of • Expanded its reach to tier • Investments in R&D customisation 2 and 3 cities, resulting in resulted in first mover’s • Product developm
Slide 17: Our vision for 2015
Our sustainable growth in the past makes us confident to achieve our vision for 2015. To emerge among top 3 clutch manufacturer globally • Achieve a topline of Rs. 10 bn • To have footprints across every continent
Slide 18: Opportunity 1: New age clutches for M&HCV
Oppor tunity 1: New age clutches for M&HCV • In the last decade (FY 2000-11), more than 3 mn M&HCVs were produced • M&HCVs produced since the last decade use new technology clutches only • Top four M&HCV manufacturers account for more than 95% of the total market • Progressing towards value added ne
Slide 19: Opportunity 2: Vast replacement market
Oppor tunity 2: Vast replacement market • Over 3,580,000 M&HCVs were produced in the last decade • Clutch being most abused auto component; life of 200,000 kms or 2 years, w.e.i. earlier • Strong economy, newer technology, Government regulations on overloading and emission norms to propel replac eme
Slide 20: Opportunity 3: Destination India
Oppor tunity 3: Destination India • Highways constitute only 2% of the length of all roads in India • Very high transport density in India at 0.66 km/sq. km (0.16 in China and 0. 20 in Brazil) • Road development would result in better logistics, lower lead time and higher CV demand • Higher infrastr
Slide 21: Opportunity 4: Partnering global players
Oppor tunity 4: Partnering global player s • India is preferred manufacturing destination • Quality and full service supply capability are also key competitive advantages • Finalisation of the Automotive Mission Plan 2006-16 for making India a preferred destination • Top commercial vehicle manufactu
Slide 22: Opportunity 5: Evolving into a Clutch+ company
Oppor tunity 5: Evolving into a Clutch+ company CLUTCH BUSINESS VALUE ADDED PRODUCTS Thrust on exports markets Diversifying to offer higher value + § Exports to scale up to 15% of total products in the value chain revenues by 2015 § Commence Hydraulics Pressure Convertor business in India Expanding
Slide 23: Financial performance (on Consolidated basis)
Financial perfor mance (on Consolidated basis)
Slide 24: Key takeaways
Key takeaways • Delivered consistent growth in the last decade • CV industry expected to remain buoyant • Global CV makers setting up units in India • Introduction of new age clutches in wake of BS III norms to translate into higher realisations • Exports expected to lead growth • Further built up o
Slide 25: Thank you.
Thank you. www.setcoauto.com