Confidence Petroleum India Limited · NSE:CONFIPET
Confidence Petroleum India — Investor Presentation (May 2021)
35 slides from Confidence Petroleum India's investor presentation, May 18, 2021
Slide 1: Confidence Petroleum India Ltd. - Investor Presentation Filing Letter
CONFIDENCE PETROLEUM INDIA LTD. REG OFF: 701, Shivai Plaza Premises Chs Ltd, Plot No. 79, Marol Industrial Estate, Nr. Mahalaxmi Hotel, Andheri East, Mumbai, Maharashtra, 400059 Corp. Off: 404, Satyam Apartment, 8 Wardha Road, Nagpur, Maharashtra 440012 Ph. 0712-6606492, Fax-6612083 Email: cs@confid
Slide 2: Investor Presentation January 2021
INVESTOR PRESENTATION January 2021
Slide 3: Discussion Summary
Brief Profile 03 Cylinder Manufacturing 10 DISCUSSION LPG Bottling and Packed Cylinder Division 12 SUMMARY Auto LPG Dispensing Station 22 Future Growth Segments 28 Revenue and Profitability 32
Slide 4: Brief Profile
Brief Profile India’s largest integrated LPG company in the private sector
Slide 5: Our Business Segments
Our Business Segments… Cylinder LPG LPG CNG Manufacturing Bottling Retailing Division Packed Cylinder Auto LPG stations 4
Slide 6: Who we are
Who we are Largest Private stand alone Auto LPG Marketing Company 1 • 209 Auto LPG Stations • Dispensed ~120 million Liters in FY20, a y-o-y growth of over 32% Amongst Largest Private Seller of Packed LPG 2 • Sold over 78mn Kgs in FY20, recording a 48% YoY growth Amongst Largest Manufacturers of LPG
Slide 7: Our Vision
Our Vision 101 Bottling plants 58 500+ Bottling plants Auto LPG Dispensing Station 209+ VISION 25k MT Auto LPG Dispensing Station Packed cylinder volume sales per month 7k MT No. 1 Packed cylinder volume Maintaining leadership sales per month status in each of our industries Confidence Petroleum Ind
Slide 8: Our Team
Our Team Nitin Khara Elesh Khara Yatin Khara Chairman & Managing Director Director – Cylinder Manufacturing Director – Packed Cylinder Marketing Vimal Parwal Jitendra Jain Satish Chandak President Commercial President Accounts & Finance President Auto LPG Confidence Petroleum India Limited 05
Slide 9: Environmental & Policy Tailwinds
Environmental & Policy Tailwinds 01 - Air Pollution India is home to top 14 air polluted cities – World Health Organization 02 - Auto LPG as Clean Energy Vehicular Emission accounts for ~30-50% of Total Air Pollution Auto LPG is a cleaner fuel & recommended sustainable mobility fuel 03 - Policy Supp
Slide 10: Competitive Advantage
Competitive Advantage Largest private LPG State of art Largest private LPG Innovation bottling infrastructure infrastructure bottling infrastructure • Vertical integration • Real time monitoring: • Maximizes company • Launched blast proof & with cylinder No Auto LPG stations margins light weight cyl
Slide 11: Cylinder Manufacturing
Cylinder Manufacturing One of Asia’s largest LPG cylinder manufacturer
Slide 12: India's largest LPG Cylinder manufacturer
India’s largest LPG Cylinder manufacturer 15 LPG Cylinder manufacturing plant 5mn LPG Cylinder manufacturing capacity • Supply to Oil PSU majors is expected to remain stable. Sales is expected to remain stable with the replacement and ongoing growth demand. • Higher Gross Margin with limited capital
Slide 13: LPG Bottling & Packed Cylinder Division
LPG Bottling & Packed Cylinder Division Energizing India’s commercial segment
Slide 14: Demand For Commercial LPG
Demand For Commercial LPG Commercial LPG market : India Decoding rise in Commercial LPG Consumption Private players, 5% Policy Support & preferred Direct Benefit Transfer choice fuel by growing of LPG subsidy Industrial segment Industry Size: 450,000 MT per month New age business Growth in HORECA mo
Slide 15: Confidence LPG Bottling segment: Snapshot
Confidence LPG Bottling segment: Snapshot 58 Total Plants: 28 servicing to PSU Oil Bottling Plants Majors & 30 supporting the retail segment of Auto LPG and Packed cylinder Enabler for Refilling In- division. house LPG Cylinders brands ‘Go Gas’ and ‘Go Gas Elite’ Logistical Backbone for Auto LPG seg
Slide 16: Bottling plants - enabler for retail sales
Bottling plants- enabler for retail sales Bottling Plant Salient Features Strategic locations Rising demand from PSUs owing to Ujjawala scheme to strengthen EBITDA margins Limited additional set-up cost Low capex business leads to strong sustainable ratios Confidence Petroleum India Limited 19
Slide 17: Bottling Plants – PSU costings
Bottling Plants – PSU costings 1 2 3 Confidence Petroleum India Limited 22
Slide 18: Bottling Plants – Eliminating reverse logistics
Bottling Plants – Eliminating reverse logistics Nagpur Akola Mumbai Confidence Petroleum India Limited 22
Slide 19: Packed Cylinder SKUs
Packed Cylinder SKUs Packaged Cylinder Market Residential (5% GST) Commercial (18% GST) Private PSU Private PSU 5 Kg 10 Kg 14.2 Kg 15 Kg 17 Kg 21 Kg 33 Kg 20 Kg 19 Kg 47.5 Kg Confidence Petroleum India Limited 18
Slide 20: Competitive Advantages
Competitive Advantages Packed Cylinder Division Well supported by backward integrated cylinder manufacturing and Wellbottling plants supported by backward integrated cylinder manufacturing and bottling plants Ability Abilitytotopass passononthe therate ratevariances variancestotothe thecustomer cust
Slide 21: Future Growth enablers
Future Growth enablers Privatization of a major PSU OMC The privatization of a major PSU will result in either elimination of subsidies in the domestic segment OR benefits to private players for these subsidies. The move will provide a level playing field in subsidized domestic segment. Push to indu
Slide 22: Packed Cylinder: Future Growth Segments
Packed Cylinder: Future Growth Segments Residential complexes Mobile tower Industrial Cylinders Confidence Petroleum India Limited 22
Slide 23: Auto LPG Dispensing Station
Auto LPG Dispensing Station Green Energy Solutions for automobile
Slide 24: Auto LPG Economics
Auto LPG Economics Benefits For Autorickshaw Owners Benefits Of Car Owners* Price Per Litre Fuel Cost Per Kms Price Per Litre Fuel Cost Per Kms 1.76 3.67 2.46 5.31 37.00 85.00 37.00 85.00 Bengaluru Prices Aug-20 Bengaluru Prices Aug-20 Operational Cost Operational Cost 554 797 264 LPG users save 370
Slide 25: Economics of Auto LPG stations
Economics of Auto LPG stations Details INR Cost of setting up Auto LPG station in Tier-2 city (Rs) (4 lines) 1,00,00,000 Throughput of a new station per day (Litres) 1,800 - 2,000 EBITDA Margin per Litre (Rs) ~8 Total EBITDA per day (Rs) 16,000 Total EBITDA per annum (Rs) 58,40,000 Return on Investm
Slide 26: Auto LPG – Competitive Edge
Auto LPG – Competitive Edge No Middle-Men and Efficient Supply Chain Profitability 4 Blending Plants, 58 LPG Bottling Plants and 209 Auto LPG Stations to Support the Growth Ability To Capture Larger Market Share Hub And Spoke Model for Distribution Uninterrupted & Timely Service Focused Approach Tow
Slide 27: Efficient Supply Chain
Efficient Supply Chain 40 % savings on transportation cost ‘Litre per Km’ due to economy of scale on usage of 18/21 MT tankers 18/21 MT tankers are ample in market – resulting in no stock outages Confidence Petroleum India Limited 13
Slide 28: Go to Market
Go to Market Site Selection Project Team Operation Set - up 1. Complete the project feasibility 1. A team of 3 conducts a location 1. Complete the project feasibility 1. Recruit team members to run the analysis, traffic flow of target 2. Final negotiation on the rates operations. 2. Final negotiatio
Slide 29: Future Growth Segments
Future Growth Segments Fuelling India’s transition to a Gas based economy
Slide 30: Vision to be India's largest Gas based retailer
Vision to be India’s largest Gas based retailer 100 CNG Stations in Bengaluru Confidence Petroleum India Limited 20
Slide 31: Vision to be India's largest Gas based retailer: CNG retailing
Vision to be India’s largest Gas based retailer CNG retailing 300+ CNG Dispensing Station and MRU 200+ CNG/L-CNG/LNG Project EPC Team No.1 Gas based company in the Country Confidence Petroleum India Limited 20
Slide 32: Vision to be India's largest Gas based retailer: CNG and LNG Projects
Vision to be India’s largest Gas based retailer CNG and LNG Projects Confidence Petroleum India Limited 20
Slide 33: Revenue and Profitability
Revenue and Profitability
Slide 34: Consolidated Revenue
Consolidated Revenue 1,200 1,078 1,005 1,000 800 Rs Crores 600 525 400 258 174 200 93 - FY19 FY20 Q1FY21 Q2FY21 Q3FY21 9M FY21 • The Government officials are expected to improve “productivity” for handing out licenses. • New strategies include setting up Dealer Owned Dealer Operated (DODO) Stations.
Slide 35: Thank You
Prity Bhabhra Company Secretary Email : PrityBhabhra@confidencegroup.co Contact No : +91 87932 78050 Thank You
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