Satia Industries Ltd · NSE:SATIA
Satia Industries — Investor Presentation (January 2019)
35 slides from Satia Industries's investor presentation, January 2019
Slide 1: Satia Industries Limited Investor Presentation January 2019
SATIA INDUSTRIES LIMITED INVESTOR PRESENTATION January 2019 1
Slide 2: Executive Summary
Executive Summary Company Overview Key Clientele • Incorporated in 1980, Satia • SIL has long standing Industries Limited (SIL), is one relationship with State of the biggest and completely Text book Corporations integrated Wood and Agro and around 50% of based paper manufacturer. revenue comes from
Slide 3: Company Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 4: About The Company
About The Company Revenue (INR Mn) & EBITDA Margin (%) 7,000 6,723 5,919 6,000 5,000 4,501 23% 23% 19% 3,757 4,000 16% 3,000 • Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its commercial production of printing and writing paper at Muktsar, Punjab in 1984. 2,000 FY16
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 Power Additional Power generation Started production using a Production cogeneration Increased capacity capacity of 10.45 MW and single paper machine with the crossed plant (5MW) of the power plant New Solar plant with capacity capacity of 4,950 MTPA 10,000 MTPA was installed to 23.30
Slide 7: Geographical Presence
Geographical Presence Region-wise sales for FY18 Region-wise sales for FY18 Jammu & Kashmir Delhi 1.6% 16.3% Punjab Uttar Pradesh 11.3% 11.6% Haryana Assam 3.4% 2.3% Rajasthan West Bengal 8.3% 3.1% Gujarat Bihar 2.2% 0.6% Maharashtra Madhya Pradesh 14.8% 5.1% Telangana Distributors (70) Chhattisgarh
Slide 8: Manufacturing Facilities
Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Segment • Total Capacity: 400 TPD • Total capacity: 350 TPD • Total Capacity: 600 Solids • Thermal Power: 33.75 MW TPD • Agro based pulp: 200 TPD • Machine 1: 100 TPD • Solar Power: 5.54 MW Capacity •
Slide 9: 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 10: 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 11: Top Clients
Top Clients Bal Bharti Kokuyo Riddhi Paper Products Pvt. Ltd. Odisha State Bureau of Textbook M. P. Pathyapustak Nigam Chhattisgarh Pathya Pustak Nigam Navneet Prakashan Rajasthan Rajya Pathyapustak Mandal Rajeev Prakashan Allahbad Indian Railways 11
Slide 12: 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 13: Certifications
— Certificate of (en ay a end ny This iso cortify that Satia Industries Ltd. Vilage -Rupna, Makor- Nau Read, Maki 1532 (Pay), Indin test ase by ICL an dangly wi he gene ISO 9001 : 2015 Quality Management System For the fllowing ectivits Manufacturing and Supply of Writing & Printing Paper ‘Tse al fo
Slide 14: Key Strengths
Key Strengths $ Wheat Straw is cheap and easily available locally Low cost raw materials 33.75 MW capacity run on Biomass and process intermediates 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 Distributors Long stand
Slide 15: Business Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 16: Business Mix
Business Mix FY18 Revenue Contribution • Wood and Agro-based paper plants (%) manufacturing paper using wood chips, veneer waste, wheat straw and sarkanda 2% • 9 different types of paper: Super Snow Writing and Printing Paper White, Snow White, Map litho, Colored paper, Ledger paper, Cartridge paper
Slide 17: 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 18: 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 19: Operating Efficiency
Operating Efficiency 2,50,000 7,000 Production, Revenue and Profit Trend 2,06,400 6,421 1,94,204 6,000 2,00,000 5,455 1,60,631 5,000 1,43,440 1,44,429 4,580 1,50,000 4,146 4,000 3,978 1,13,517 1,03,588 82,677 90,243 3,000 1,00,000 81,736 2,000 50,000 1,237 1,000 530 464 654 372 - - FY14 FY15 FY16 FY
Slide 20: 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 21: 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 22: 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 23: 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 during FY18: INR 4.9 Mn • Total amount spent in FY19: INR 4.67 Mn
Slide 24: Industry Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 25: 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 26: 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 27: 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 28: 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 29: Financial Overview
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY
Slide 30: Historical Profit & Loss Statement
Historical Profit & Loss Statement PARTICULARS (INR Mn) FY14 FY15 FY16 FY17* FY18* H1-FY19* Total Income# 3,869 3,982 4,501 5,919 6,723 3,757 Total Expenses 3,337 3,289 3,801 4,799 5,202 2,882 EBITDA 532 693 700 1,120 1,521 875 EBITDA Margin 13.75% 17.40% 15.55% 18.92% 22.62% 23.29% Depreciation 267
Slide 31: Balance sheet
Balance sheet PARTICULARS (INR Mn) FY17 FY18 H1-FY19 PARTICULARS (INR Mn) FY17 FY18 H1-FY19 Equity 1,583 2,226 2,632 Non-Current Assets 3,124 3,540 3,766 Equity Share Capital 100 100 100 a) Property, Plant and Equipment 2,914 3,119 3,087 Other Equity 1,483 2,126 2,532 b) Capital Work In Progress 99
Slide 32: Financial Highlights
Financial Highlights Total Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 6,723 10.22% 5,919 22.62% 7.69% 4,501 18.92% 3,982 17.40% 15.55% 2.91% 1.96% 693 700 1,120 1,521 78 131 455 687 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 RoE and RoCE Net D
Slide 33: Capital Market Data
Capital Market Data Shareholding Pattern as on 31st December, 2018 Price Data (31st December, 2018) INR Face Value 10.00 Market Price 519.70 718.60/ 142.05 Public 52 Week H/L 49% Promoters Market Cap (Mn) 5,197.00 51% Equity Shares Outstanding (Mn) 10.00 1 Year Avg Trading Volume (‘000) 3.28 33
Slide 34: 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 35: Thank You
— SATIA INDUSTRIES LIMITED /AN ISO 9001, 1400 & OHSAS 18001 COMPANY Thank You f
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