KEI Industries Limited · NSE:KEI
KEI Industries — Investor Presentation (February 2016)
39 slides from KEI Industries's investor presentation, February 2016
Slide 1: KEI Industries Limited
www.kei-ind.com KEI INDUSTRIES LIMITED
Slide 2: Major Highlights
Major Highlights ET 500 dt 27.10.15 KEI ranking improve to 423 against previous ranking 469 9M Growth in Turnover 20.97% & In Operating Profit 27% & in PAT 77% 9 M Growth is after reduction of Raw Material Prices 9M Cable division Growth 17% in value and 29% in Volume Strong Order Book of
Slide 3: Structure
Structure Major Highlights About Us Key Strengths Industry Prospects Growth Drivers Business Overview Future Outlook Financials Share Holding Pattern
Slide 4: About Us
About Us Diversified and de-risked business model across : Headquarters at New Delhi, India. Markets: Domestic & International Manufacturing facilities at Bhiwadi (Rajasthan), Segments: Institutional & Retail Chopanki (Rajasthan) & Silvassa (D & NH) Sectors: Private & Public More than
Slide 5: Milestones
Milestones 1968 : Established as a partnership firm 1997 : Added another Plant at Bhiwadi for 1968 : Commenced manufacture of switch PVC /XLPE- LT power cables board cables for DOT 2001 : Commenced manufacturing of rubber 1985 : Commenced the manufacture of cables upto 11 kV Control, Instrumentation
Slide 6: Milestones
Milestones 2010 : Proud recipient of Business Super 2007 : Commenced New Project at Chopanki brand Award for Industry Validated and modernization / expansion at 2011 : Certification of ISO 9001:2008, OHSAS Bhiwadi & Silvassa unit 18001:2007, OHSAS 14001:2004 2007 : Received prestigious Corporate 201
Slide 7: Key Strengths
Key Strengths 1. Wide product basket comprising: Extra High Voltage cables up to & including 220 kV High & Medium Voltage cables Low Tension cables Control and instrumentation cables Specialty cables Rubber cables Winding, Flexibles and house wires Submersible cables, OVC/poly wrap
Slide 8: Key Strengths: Bhiwadi Unit
Key Strengths : Bhiwadi Unit 2. Manufacturing prowess evident from: World-class manufacturing facilities at Bhiwadi (Raj.), Silvassa (D&N H) and Chopanki (Raj.) CCV Line (Involving Dry Cure Dry Cool technology) For manufacturing HT Cables Up to 132 kV Sikora Online X-Ray Machine Used for Monitorin
Slide 9: Key Strengths: Chopanki Unit
Key Strengths: Chopanki Unit T oeste ’s CCV Li e I ol i g D y Cu e D y Cool te h ology Fo a ufa tu i g EHV Ca les Up to kV In-house Testing Facilities for Testing EHV Cables
Slide 10: Key Strengths
Key Strengths • Equipped with an installed capacity of: • 600 km of EHV cables • 5000 km of HT cables • 67000 km of LT cables • 280000 km of Winding, Flexibles & House Wires • 4800 MT of Stainless Steel Wire • Strategically located manufacturing facilities at Bhiwadi, Chopanki and Silvassa results i
Slide 11: Key Strengths
Key Strengths 3. Commitment to quality Adherence to the most stringent quality standards laid down by Vindicating the KEI’s supe io p odu tio p o ess, te h ology a d uality p odu ts 4. Strong research capabilities • Constantly enhancing product portfolio by investing in R&D • Results in niche prod
Slide 12: Key Strengths
Key Strengths 5. Climbing up the value spectrum Commercial Production of EHV cable Result in pre-qualifying KEI to participate in large utility tenders Firm impetus to its turnkey EPC business, which consumes significant portion of EHV cables 6. Establishing presence in the retail segment Bu
Slide 13: Key Strengths
Key Strengths 7. Well entrenched distribution network The sales & distribution network at KEI covers all major metros, Tier I & Tier II cities to serve its esteemed customers Strong Order Book Position of Rs. 1900 Crore
Slide 14: Key Strengths
Key Strengths 8. Growing presence in exports Established extensive international footprints across 45 countries Strong order book for exports of Rs. 200 Crore
Slide 15: Industry Prospects
Industry Prospects • Global cable market reached USD 176 billion in 2013 demonstrating a CAGR of 4.7% from 2003 to 2013 • Cable market in India was estimated at USD 3 billion in 2013, increasing at a CAGR of over 10% • Size of High Voltage cable > 132 kV is estimated at USD 300 million • Size of MV
Slide 16: Industry Prospects
Industry Prospects Indian Power Sector Industrial Expansion • Additional capacity of 85000 MV of Power • 6-8% GDP growth momentum encouraging large capacities required in next 6 yrs investments in Industrial Sector • Major policy investment initiative to achieve this • Major expansion in Sectors lik
Slide 17: Industry Prospects
Industry Prospects Demand Assessment for 2008-17: Equipment Wise Power & Control Cables Cables Demand -FY2008-2017 Mode-wise Breakup Cablos - Usage Pattern (KM) Conservative | Realistic Planned Gen. Trans. | Dist 668132kVand above LT Control 1,046,905 | 1,174,350] 1,322,007 [ 16% | 11% | 73% and | C
Slide 18: Growth Drivers
Growth Drivers Power & Infrastructure Infrastructure spending estimated at USD 1 trillion in the next five years Estimated FDI in Infrastructure sector is USD 250 billion while USD 750 billion is expected to be mobilized locally Demand for cables estimated at USD 3 billion (including EHV, MV a
Slide 19: Growth Drivers
Growth Drivers Industry Cables forms an integral part of every industrial capex Cable requirement accrues only after 50% of the industrial project is complete Demands are picking up with gradual recovery in expansion plans Building & Construction Demand for Urban Premium housing set to grow
Slide 20: Business Overview
Business Overview Retail EPC KEI Institutional EHV Exports
Slide 21: Business Overview
Business Overview I. Institutional • Presence in this segment is marked by: • Ability to offer multi-products, with a multi-location presence • Well-entrenched marketing presence across all states • Ability to deliver products fast across the country from plants in North and West • Servicing custome
Slide 22: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Power Sector Clients Industrial Clients
Slide 23: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Refineries Energy Sector
Slide 24: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Fertilizer Sector Steel Sector
Slide 25: Business Overview
Business Overview 1. Foray into EPC space • Commenced execution of EPC contracts • The main services offered by the company in the EPC segment includes execution of: Power transmission Electrical Electrical projects of 66kV EPC of EHV & HV balance of plant industrial to 400kV cables systems system f
Slide 26: Business Overview
Business Overview • The o pa y’s key st e gths i the EPC • Collaborations with Woosun Electric Co., Korea segment include: for power projects and Cobra Engineers, Spain for substation execution • Executing projects for some of the biggest • In house execution capabilities names in the industry: • Ab
Slide 27: Business Overview
Business Overview • Servicing both the government and the private sectors • Average gestation period of such projects can range from 4 to 24 months • Aims to foray into other sectors like transmission line, infrastructure projects in the area of SEZ, MRT/Airport, EPC of cement plants, power plant an
Slide 28: Business Overview
Business Overview 2. Strengthening EHV segment presence • Commercial production of EHV cables (ranging from 66kV to 220kV) started in November 2010, at Chopanki Plant, in district Alwar, Rajasthan • With commercial production, KEI is only third company in India to manufacture EHV cables • The demand
Slide 29: Business Overview
Business Overview • Foray into the EHV segment is aided by the KEI’s Technological collaboration entered into with Switzerland-based M/s Brugg Kabel AG • Brugg enjoys over 100 years of experience and ability to manufacture cables up to 550 kV • Collaboration has enabled KEI a faster entry into the E
Slide 30: Business Overview
Business Overview II. Retail – domestic wires • Phenomenal progress achieved by the company in the last 3 years • De eloped a st o g eputatio as the po e ehi d the po e • Esta lished a lea positio i g of a spe ialist a le a ufa tu e • The three pillars of trust & quality, brand awareness & customer
Slide 31: Business Overview
Business Overview III. Exports • Presence in over 45 countries across the globe with focus on the oil & gas and utilities segment • Offers wide range of cables viz. EHV (66kV to 220kV), MV (11kV to 66kV) and LV (< 11kV) cables • Competitive pricing and ability to offer customised solutions and speci
Slide 32: Future Outlook
Future Outlook New Presence across Enhanced Turnkey Industrial complete range of capacities EPC cable cables up to 220kV solutions Widest range of Focused approach Key Experienced power & in its domestic technological & trusted instrumentation house wires and tie-ups with brand name EHV segment Brug
Slide 33: Financials
Financials Rs. In Crores FY 11 FY 12 FY 13 FY 14 FY15 9M 15 Revenues 1,254 1,853 1,812 1,753 2171 1817 PBDIT 93 152 173 154 197 175 PBT 18 36 43 22 53 63 PAT 11 24 26 12 34 42 Net Fixed 312 318 311 314 302 316 Assets Net Worth 238 227 256 273 304 349 ROCE (%) 12 21 24 21 25 28 ROE (%) 4 11 4 12 17 1
Slide 34: Financials
Financials Rs. In Crores Revenues PBDIT 2500 197 2171 200 173 2000 1853 1812 152 154 1753 150 1500 1254 93 973 100 76 1000 500 50 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 PBT PAT 60 53 40 34 50 43 36 24 26 30 40 30 22 20 14 17 18 11 12 20 10 10 0 0 2010 2011 2012 2013 2014 201
Slide 35: Financials
Financials Productwise Net Sales Rs. In Crores 218.42 58.85 104.77 EHV 327.89 LT POWER/ RUBBER HT CABLE 991.61 HW/WW SSW EPC 327.39 Revenue Mix 7% 25% Export Retail Institutional 68%
Slide 36: Financials
Financials Rs. In Crores Net Fixed Assets Net worth 318 320 312 314 311 350 304 310 302 300 273 256 300 238 250 223 227 290 278 200 280 270 150 260 100 250 50 2010 2011 2012 2013 2014 2015 0 2010 2011 2012 2013 2014 2015 Debt 2.83 196.25 Bank Borrowing 252.9 Term Loan Others
Slide 37: Future Growth Driver
Future Growth Driver F.Y. 2015-16 Additional turnover of approx Rs. 100 Crore from Retail market, Rs. 75 Crore from EHV Cable, Rs. 125 Crore from EPC & Rs. 50 Crore from Export apart from normal growth in existing range of cable. Expansion of House Wire and Flexi Wire for Retail & Distributor.
Slide 38: Shareholding Pattern
Shareholding Pattern % Shareholding 26.9% Promoter 49.4% Institutions Bodies Corporate Indian Public 22.5% 1.1%
Slide 39: Thank You !
www.kei-ind.com Thank You !
KEI Industries — Investor Presentation (February 2016) on 6ix