Satia Industries Ltd · NSE:SATIA
Satia Industries — Investor Presentation (February 2020)
36 slides from Satia Industries's investor presentation, February 2020
Slide 1: Investor Presentation February 2020
SATIA INDUSTRIES LIMITED INVESTOR PRESENTATION February 2020 1
Slide 2: Executive Summary
Executive Summary Company Overview Key Clientele • Incorporated in 1980, Satia • SIL has long standing Industries Limited (SIL), is one of relationship with State the biggest and completely Text book Corporations integrated Wood and Agro and around 40% of based paper manufacturers. revenue comes fro
Slide 3: Company Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 4: About The Company
About The Company Operational Revenue (INR Mn) & EBITDA Margin (%) 7,384 6,421 5,708 4,336 22% 22% 6,296 19% • Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its commercial 16% 12% production of printing and writing paper at Muktsar, Punjab in 1984. • SIL is one of th
Slide 5: Key Management Personnel
Key Management Personnel R.K. Bhandari (MBA) - Joint Managing Director Looks after marketing and other administrative responsibilities since the last 32 years Chirag Satia - Executive Director Chirag has been driving force behind new inititatives since he joined in 2015 and looks after Finance, Acco
Slide 6: Key Milestones
Key Milestones Started production using a Power Increased Additional Power generation single paper machine with Production cogeneration capacity of the capacity of 10.45 MW and Achieved a the capacity of 4,950 crossed plant (5MW) power plant to New Solar plant with capacity significant MTPA 10,000 M
Slide 7: Geographical Presence
Geographical Presence Region-wise sales for FY19 Region-wise sales for FY19 Jammu & Kashmir Delhi 1.3% 12.8% Punjab Uttar Pradesh 8.4% 18.1% Haryana Assam 3.7% 5.8% Rajasthan West Bengal 9.1% 2.3% Gujarat Bihar 1.4% 0.8% Maharashtra Madhya Pradesh 13.7% 2.1% Telangana Distributors (70) Chhattisgarh
Slide 8: Manufacturing Facilities
Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Segment • Continuous Digester for • Capacity of paper machines • Installed two Chemical • Installed three turbine cooking pulp, oxygen varies with operating speed Recovery boilers with a capex generat
Slide 9: Capex Plan
Capex Plan Agro – Residue Updates: • Additional land has been purchased. • New European Paper Wood chips Manufacturing Machine has been ordered. Capacity • Foundation work going on in Current Capacity Capex of Expansion of full swing for the new Block. Waste Paper 1,05,000 MT of INR 500 Cr 1,00,000
Slide 10: Paper Cutlery Segment
Paper Cutlery Segment • Prime Minister Sh. Narendra Modi gave an ambitious call to eliminate all single-use plastic products in the country by 2022 and SIL plans to make most of this opportunity in the national movement to replace plastic and styro foam from food delivery packaging with sustainable
Slide 11: Paper Making Process
Paper Making Process Stage 1 Continuous Cooking Cooked Elemental Pulp & Unbleached Stage 2 with caustic Black Chlorine Cleaned Pulp Agro soda which Liquor Free Stock Preparation Wet Raw Washing, Brown passes Bleaching Stage 3 Residue Washing Material through (Sodium Refining, Pulp (Environ- Lignate)
Slide 12: Effluent Treatment
Effluent Treatment Recovery Boiler Calcium Carbonate Organic matter burns and Inorganic matter (Limestone) acts as fuel Treated with Sold in markets Black Liquor becomes Calcium (Sodium Sodium Carbonate Hydroxide Sodium Hydroxide (Caustic Soda) Lignate) Reused after 90 -95% recovery rate Wheat straw
Slide 13: Top Clients
Top Clients Assam State Text Book Production & Bal Bharti Odisha State Bureau of Textbook Publication Corporation Ltd. Chhattisgarh Pathya Pustak Nigam Rajasthan Rajya Pathyapustak Mandal Burda Druck India Private Limited Himachal Pradesh Board of School West Bengal Text Book Corporation Ltd Educati
Slide 14: Myths Vs Realities of the Paper Industry
Myths Vs Realities of the Paper Industry Myth Reality Paper industry in India is also agro and rural based. Industry led agro/farm forestry in collaboration Denuding forests with farmers have brought over 125,000 hectares under pulp wood plantations. It is wood positive. The industry grows more tree
Slide 15: Certifications
—> Certificate of (w attaee Registration Fah nding Tiss tery ta Satia Industries Ltd. Vilage -Rapana, Maki -Malout Read, Makar - 152082 (Pa, ni tas teen ase hy RICL al bund comply wt ie egies of ISO 9001 : 2015 Quality Management System For Manufacturing and 2 & Printing Paper Carica No. ‘TRQOBQ Fth
Slide 16: Key Strengths
Key Strengths $ Wheat Straw is cheap and easily available locally Low cost raw materials 27.95 MW capacity run on Biomass and process intermediate- Black Liquor Co-power generation to reduce cost No other paper mill in a 100 Km radius Secure access to raw materials 3 Branch Offices and 70 Distributo
Slide 17: Business Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 18: Writing and Printing paper : Products
Writing and Printing paper : Products Snow White Super Snow White Ultra White Ultra Shine Ultra Print Features: Features: Features: Features: Features: Brightness: 85% Brightness: 89% Brightness: 85% Brightness: 88% Brightness: 90% Whiteness: 133% Whiteness: 142% Whiteness:133 % Whiteness: 142 % Whi
Slide 19: Writing and Printing paper : Products
Writing and Printing paper : Products Coloured Paper Cover Paper Natural Shade Photo Copier Ledger Features: Features: Features: Features: Features: Brightness- NA Brightness- 85% Brightness- 82% Brightness- 90% Brightness- 58% Whiteness- NA Whiteness- 133% Whiteness- 70% Whiteness- 142% Whiteness-
Slide 20: Operating Efficiency
Operating Efficiency 2,50,000 Production, Revenue and Profit Trend 2,12,858 8,000 2,06,400 7,384 1,94,204 7,000 2,00,000 6,421 6,000 1,60,631 1,43,440 1,44,429 5,708 1,50,000 5,000 4,336 4,000 3,978 3,931 1,00,000 3,000 2,000 50,000 1,578 1,284 1,000 875 372 531 449 - - FY14 FY15 FY16 FY17 FY18 FY19
Slide 21: Strategic Advantage
Strategic Advantage • SIL has the capability and flexibility to use all three kinds of pulp made from agro residue, wood and waste paper. • It procures raw materials like wheat straw, sarkanda and wood chips from the area adjacent to Raw the manufacturing plant in Punjab. Material Security • No othe
Slide 22: Future Growth Strategy
Future Growth Strategy With a strong raw material base, doubled production capacity to over 2.0 lac tons paper every year and with a flexibility to make high grade surface sized 03 maplitho and copier paper along with our traditional stronghold in Government textbook paper market; we plan to expand
Slide 23: Environmental Compliance
Environmental Compliance Environment Compliance though a legal necessity; SIL considers this as its moral responsibility and has undertaken many steps to ensure that no harm is done to the environment: • Eucalyptus Plantation : SIL uses the natural quality of Eucalyptus Plant for natural pumping and
Slide 24: Karnal Technology
Karnal Technology Process Low Cost • The expenditure of adopting this technology involves • The Karnal Technology involves growing cost of making ridges, plantation and their care. trees on ridges 1m wide and 50cm high • The implementation does not involve skilled labour wand disposing of the untrea
Slide 25: Corporate Social Responsibility
Corporate Social Responsibility SIL believes that the corporate sector are economic organs of the society and therefore endeavors to make a positive difference to the society by trying to build a better tomorrow. • Total amount spent in FY19: INR 11.2 Mn • Total amount spent during FY18: INR 4.9 Mn
Slide 26: Industry Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 27: Paper Industry Overview
Paper Industry Overview • Globally, India is the fastest growing paper market – 5-year (FY11 - FY16) with a CAGR of 5 Year CAGR % FY11 to FY16 consumption is 8% in comparison to 1% globally. 10% • Paper demands grow in tandem (gain momentum) with the GDP growth rate in a country. 8% 8% Over the last
Slide 28: Paper Industry Overview
Paper Industry Overview • India is the fastest growing major paper market in the world. • An appreciating rupee made imports attractive in FY17. • Anti-dumping duties were imposed by the US in 2016 and 2017, which led to diversion of supply from US to Indian markets. • Free Trade Agreements with ASE
Slide 29: Challenges of Environmental Compliance
Challenges of Environmental Compliance • The pulp and paper industry is among the world’s largest generators of air and water pollutants, waste products and gases that cause climate change. Thus, heavy investment is required by companies to be environmentally compliant. Multiple norms have been intr
Slide 30: Indian Paper Industry is Ripe for Consolidation
Indian Paper Industry is Ripe for Consolidation High Capital Intensity - Investment in land and machinery, repairs and maintenance of mills, technology, cost of environmental compliance, growing wood plantations and establishing a distribution network all make manufacturing paper a capital intensive
Slide 31: Financial Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 32: Income Statement
Income Statement PARTICULARS (INR Mn) FY16 FY17* FY18* FY19* 9M-FY20* Operational Revenue 4,336 5,708 6,421 7,384 6,296 Total Expenses 3,801 4,799 5,203 5,743 4,919 EBITDA 535 909 1,218 1,641 1,377 EBITDA Margin 12.34% 15.93% 18.97% 22.22% 21.87% Other Income 165 211 303 145 140 Depreciation 332 400
Slide 33: Balance Sheet (IND-AS)
Balance Sheet (IND-AS) PARTICULARS (INR Mn) FY18 FY19 H1-FY20 PARTICULARS (INR Mn) FY18 FY19 H1-FY20 Equity 2,226 3,076 3574 Non-Current Assets 3,540 4,505 5012 Equity Share Capital 100 100 100 a) Property, Plant and Equipment 3,119 3,827 3624 Other Equity 2,126 2,976 3474 b) Capital Work In Progres
Slide 34: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 7,384 6,421 11.89% 5,708 10.70% 22.22% 7.98% 4,336 18.97% 15.93% 12.34% 3.02% 535 909 1,218 1,641 131 455 687 878 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 ROE (%) an
Slide 35: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 36: Thank You
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY Thank You ys
Satia Industries — Investor Presentation (February 2020) on 6ix