Sigachi Industries Limited · NSE:SIGACHI
Sigachi Industries — Investor Presentation (August 2023)
36 slides from Sigachi Industries's investor presentation, Aug 19, 2023
Slide 1: Exchange filing cover letter
SIGACHIINDUSTRIESLIMITED CIN: L24110TG1989PLC009497 ANEXCiPACTGMP,ISO9001:2015&FSSC22000CERTIFIEDCOMPANY www.sigachi.com Years To, Date: 19.08.2023 The Manager The Manager BSE Limited National Stock Exchange of India Limited P.J. Towers, Dalal Street Exchange Plaza, BandraKurla Complex, Mumbai- 4000
Slide 2: Sigachi Industries Limited Investor Presentation August 2023
Sigachi Industries Limited Investor Presentation August - 2023
Slide 3: Company Snapshot
Company Snapshot 4 state-of-the-art Supported by manufacturing Experienced facilities situated in Management Team R&D Facility in Hyderabad and Dahej is Gujarat Legacy of more approved by than 3 decades in DSIR and also manufacturing of have other 2 in- cellulose-based house excipient Long standing
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview • Sigachi Industries Limited (Sigachi), incorporated in the year 1989, is one of the Revenue (INR Mn) & EBITDA Margins (%) leading manufacturers of Micro Crystalline Cellulose (MCC) in the world. 3,020 • Sigachi manufactures high-quality cellulose-based excipients, which predominant
Slide 6: Key Management Personnel
Key Management Personnel Mr. R P Sinha Mr. Chidambarnathan Founder, Chairperson, Shanmuganathan Whole-Time Director Co-Founder, Whole-Time Director • Holds Master’s degree in Chemical Engineering from Banaras • Holds PG Diploma in business administration from Hindu University Annamalai University •
Slide 7: Key Milestones
Key Milestones Started manufacturing of premium grade Registered its Incorporated as MCC by Drug Master File ‘Sigachi Chloro- commissioning a (“DMF”) for the Setting up of 100 Merger of Sigachi Chemicals Private spray drier and a first time under % export-oriented The R&D division Cellulose Private
Slide 8: Global Presence
Global Presence Geographical Revenue Mix % (FY23) Operating through non- 2% 2% exclusive distributors 9% India having strong market 2% Strong relationship with 2% USA presence 26% end customers and 2% distributors Australia 3% Sweden 5% Denmark Egypt 12% 20% China Spain 15% UK Poland Unit 2 - Jhagad
Slide 9: Manufacturing Plants
Manufacturing Plants Manufacturing Capacities (MTPA) & Capacity Utilisation in % (as on FY23) • Sigachi has three manufacturing units namely, Hyderabad, Telangana (“Unit I”), Jhagadia, 96.17% 96.65% 92.58% Gujarat (“Unit II”) and Dahej, Gujarat (“Unit III”). 6,400 5,925 • These units help in providi
Slide 10: R&D and Quality Assurance
R&D and Quality Assurance R&D: • The Research and Development division is located in Jhagadia and Dahej with the objective to implement a performance-oriented approach with the help of technologies developed in-house. • R&D Division is equipped with the necessary facilities to carry out all necessar
Slide 11: Marquee Clients
Marquee Clients Sigachi Industries Limited 10
Slide 12: Awards and Accolades
Awards and Accolades ‘Achiever of Silver Star’ in the category of Medium Scale Industries Honored with ‘DHL SME ZEE in the HR Best Practices 2019 Business Award’ program’ Awarded the title of ‘India’s Small Giants Emerging Enterprises of India – Roll of Honor for 2014’ by Life Insurance Corporation
Slide 13: Business Overview
Business Overview
Slide 14: About Microcrystalline Cellulose (MCC)
About Microcrystalline Cellulose (MCC) • Microcrystalline Cellulose is refined wood pulp and it is a chemically inert substance, extensively used in food, pharmaceuticals, cosmetic, and polymer composite industries. • MCC is considered as a diluent having self-binding properties and it is one of the
Slide 15: MCC Manufacturing Process
MCC Manufacturing Process Hydrolysis of the Filtration Drying Packaging wood pulp sheets 1. Sheets of wood pulp are added to glass lined reactors, for hydrolysis of the wood pulp which is carried out at the required temperature and pressure. The slurry then formed goes to the Quality Division that t
Slide 16: Wood Pulp - Key Raw Material
Wood Pulp - Key Raw Material • The major raw material used in the manufacture of MCC is purified dissolving wood pulp bales. • These are imported from Canada, South Africa, Thailand, Indonesia and America from various suppliers. • The chemical and physical properties of the pulp determine the final
Slide 17: Sigachi in Microcrystalline Cellulose (MCC)
Sigachi in Microcrystalline Cellulose (MCC) • Sigachi is the largest manufacturers of MCC in India and one of the leading manufacturers globally, with over three decades of experience. MCC Revenue Trend (INR Mn) • It manufactures MCC of 60 different grades ranging from 15 microns to 250 microns havi
Slide 18: Pharma Application Segments
Pharma Application Segments Pharma Portfolio consists of: • Antiulcerative API’s & their intermediates • Pre-Formulated Excipients • High Functionality Excipients • Thickeners/Stabilizers • Binders • Superdisintegrants Spheres Tablets • Lubricants • Functional Fillers/Carriers • Spheres Powder blend
Slide 19: Food Application Segments
Food Application Segments Our Food Ingredients are Primarily Used as: • Stabilizer & Emulsifier • Dietary Fibre • Bulking Agent • Texturizer • Anticaking Agent • Flow Improver Bakery Dairy Confectionery Instant Food Salad & Soups Beverages Sigachi Industries Limited 18
Slide 20: Cosmetics and Chemical Application Segments
Cosmetics and Chemical Application Segments COSMETIC APPLICATIONS Cosmetic Ingredients are primarily used as: • Sensory Agent Mascara/Eyeliner Toothpaste Talcum Powder • Texturizer • Filler • Humectant • Flow Enhancer • Anti-Caking Agents Creams & Lotions Shower Gels Facial Scrubs CHEMICAL APPLICATI
Slide 21: Strategic Overview
Strategic Overview
Slide 22: Key Strengths
Key Strengths Presence across diverse industry verticals One of the leading manufacturers of MCC in with long standing relationship with India with over 30 years’ experience: customers : • Made advancements in development of • Customization of products based on MCC and positioned as one of the key c
Slide 23: Strategy going forward
Strategy going forward Diversifying Product Mix in Pharma: Enhancing global footprint: Expanding manufacturing capacites: Manufacturing higher grades of products Increasing market share by At Dahej and Jhagadia to focus on the as well as enhancing product basket by exploring untapped markets growing
Slide 24: Capex
Capex • The company is expanding the production capacity of MCC by increasing the manufacturing capacity of units in Dahej and Jhagadia. • Setting up of the proposed unit for manufacturing higher grades of MCC and CCS will result in increased revenues and profitability. • The strategic decision to e
Slide 25: Croscarmellose Sodium: New Product Launch
Croscarmellose Sodium: New Product Launch • The company plans to foray into the production of Croscarmellose Sodium (CCS). • CCS is a modified sodium carboxymethyl cellulose used as a disintegrant in pharmaceutical formulations and provides long term stability. • It is an insoluble and hydrophilic p
Slide 26: CSR Initiatives
CSR Initiatives Educating The Less Privileged Welfare Development Program • The Zilla Parishad High- Sigachi continues to • Celebrated “Daan Utsav – Joy of Giving Week’ • The flagship CSR initiative “Integrated pay part salary of attenders and other staff, an employee led volunteering activity to De
Slide 27: Industry Overview
Industry Overview
Slide 28: MCC Industry
MCC Industry • Microcrystalline Cellulose Market size was valued USD 1.14 Bn in 2022 and expected to reach at forecast to reach USD 2.05 Bn by CY 2031, growing at a CAGR of 6.7% during CY 23-31. MCC Market - Region Wise (in USD Mn) • Increasing application of MCC in various industries is a major fac
Slide 29: Key Growth Drivers
Key Growth Drivers Pharmaceutical Industry: Indian Pharma Market (USD Bn) 130 • The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact. • Medicine spending in India is projected to grow 9 -12% over the next five years, leading India to 65 becom
Slide 30: Financial Overview
Financial Overview
Slide 31: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY21 FY22 FY23 Q1-FY24 Operational Revenue 1,928 2,503 3,020 847 Total Expenses 1,540 1,972 2,433 683 EBITDA 388 531 587 164 EBITDA Margin (%) 20.12% 21.21% 19.43% 19.36% Depreciation and amortisation 23 29 66 20 Finance costs 13 12
Slide 32: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY20 FY21 FY22 FY23 Particulars (INR Mn) FY20 FY21 FY22 FY23 EQUITY 646 942 2,277 2,683 NON-CURRENT ASSETS 371 463 1,069 1,964 Equity Share Capital 77 77 307 307 a) Property, plant and equipment 312 376 527 960 Other Equity 569 865 1,970 2,3
Slide 33: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue (INR Mn) EBIDTA (INR Mn) & EBITDA Margins (%) PAT (INR Mn) & PAT Margins (%) 3,020 587 436 531 400 2,503 303 1,928 388 19.36% 20.12% 21.21% 12.87% 847 19.43% 164 109 15.72% 15.98% 14.43% FY21 FY22 FY23 Q1-FY24 FY21 FY22 FY23 Q1-FY24 FY21 FY22 FY2
Slide 34: Capital Market Information
Capital Market Information Share Price Performance 30% 20% 10% 0% -10% -20% -30% Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 SENSEX SIGACHI Shareholding Pattern as on 30th June, 2023 th Market Data (INR) as on 30 June, 2023 Face Value 10.0 CMP 309.7 Public Pro
Slide 35: Disclaimer
Disclaimer Sigachi Industries Limited 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
Slide 36: Thank You
Thank You
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