Sigachi Industries Limited · NSE:SIGACHI
Sigachi Industries — Investor Presentation (March 2022)
35 slides from Sigachi Industries's investor presentation, Mar 31, 2022
Slide 1: Sigachi Industries Limited Investor Presentation March 2022
Sigachi Industries Limited Investor Presentation March - 2022
Slide 2: Snapshot
Snapshot 3 state-of-the-art Supported by manufacturing Experienced facilities situated in Management Team Hyderabad and R&D Facility in Gujarat Legacy of more Dahej is approved than 3 decades in by DSIR and also manufacturing of have 2 other in- cellulose-based house laboratories excipient Long stan
Slide 3: Company Overview
Company Overview
Slide 4: 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. • Sigachi manufactures high-quality cellulose-based excipients, which predominantly fin
Slide 5: Board of Directors and Key Management Personnel
Board of Directors and Key Management Personnel Mr. R P Sinha Mr. Chidambarnathan Founder, Chairperson, Shanmuganathan Mr. Swami Das Nigam Whole-Time Director Co-Founder, Whole-Time Director Chairman, Non-Executive Director • Holds Master’s degree in Chemical • Holds PG Diploma in business • Holds a
Slide 6: 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 7: Global Presence
Global Presence Geographical Revenue Mix % (9M-FY22) Operating through non- 2% 2% exclusive distributors 9% India having strong market 2% 2% presence Strong relationship with USA end customers and 26% 2% Australia distributors 3% Sweden 5% Denmark Egypt 12% 20% China Spain 15% UK Poland Unit 2 - Jha
Slide 8: Manufacturing Plants
Manufacturing Plants Manufacturing Capacities (MTPA) • Sigachi has three manufacturing units namely, Hyderabad, Telangana (“Unit I”), Jhagadia, 95.02% Gujarat (“Unit II”) and Dahej, Gujarat (“Unit III”) 86.76% 84.77% 6,048 • These units help in providing timely, efficient and customized delivery of
Slide 9: 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 necessary
Slide 10: Marquee Clients
Marquee Clients Sigachi Industries Limited 10
Slide 11: 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 12: Business Overview
Business Overview 12
Slide 13: 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 14: 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 15: Wood Pulp - Key Raw Material
Wood Pulp - Key Raw Material Wood Pulp Price Trend (INR/MT) 64,991 62,610 • The major raw material used in the manufacture of MCC is purified dissolving wood pulp bales 58,888 57,375 • These are imported from Canada, South Africa, Thailand, Indonesia and America from various suppliers • The chemical
Slide 16: 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 havin
Slide 17: 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 18: 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 19: 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 20: Strategic Overview
Strategic Overview
Slide 21: 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 22: Strategy going forward
Strategy going forward Enhancing global footprint: Increasing market share by exploring untapped markets Diversifying Product Mix: Expanding manufacturing capacites: Manufacturing higher grades of products as At Dahej and Jhagadia to focus on the well as enhancing product basket by offering growing
Slide 23: 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 at Kurnool for manufacturing higher grades of MCC and CCS will result in increased revenues and profitability • The strategic deci
Slide 24: Croscarmellose Sodium: New Product Launch
Croscarmellose Sodium: New Product Launch • The company plans to foray into the production of Croscarmellose Sodium (CCS) • Sigachi plans to invest INR 32 Cr for the proposed unit at Kurnool which will have an expected installed capacity of 4 MTPA of CCS. This project is expected to be completed by
Slide 25: 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 26: Industry Overview
Industry Overview 26
Slide 27: MCC Industry
MCC Industry • Microcrystalline Cellulose Market size is forecast to reach USD 1.4 billion by CY 2025, growing at a CAGR of 7.25% MCC Market - Region Wise (in USD Mn) during CY 20-25 • Increasing application of MCC in various industries is a major factor propelling growth of the global MCC market. 2
Slide 28: Key Growth Drivers
Key Growth Drivers Pharmaceutical Industry: Global Pharma Market (USD Mn) • The growth is mainly due to the companies rearranging their operations and recovering from the CAGR – 5-6% 1,457 1,575 1,700 COVID-19 impact 1,228 1,250 1,350 • Medicine spending in India is projected to grow 9 -12% over the
Slide 29: Financial Overview
Financial Overview 29
Slide 30: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY19 FY20 FY21 9M-FY22 Operational Revenue 1,290 1,391 1,928 1,778 Total Expenses 1,030 1,143 1,540 1,394 EBITDA 260 248 388 384 EBITDA Margins (%) 20.16% 17.83% 20.12% 21.60% Depreciation and amortisation 17 20 23 21 Finance costs 3
Slide 31: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY20 FY21 H1-FY22 Particulars (INR Mn) FY20 FY21 H1-FY22 EQUITY 646 942 1,104 NON-CURRENT ASSETS 371 463 554 Equity Share Capital 77 77 230 a) Property, plant and equipment 312 376 409 Other Equity 569 865 874 b) Capital work-in-progress 31
Slide 32: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue (INR Mn) EBIDTA (INR Mn) & EBITDA Margins (%) PAT (INR Mn) & PAT Margins (%) 388 384 303 1,928 284 1,778 1,391 260 248 203 1,290 190 1,007 20.16% 20.12% 21.60% 117 17.83% 69 14.59% 15.72% 15.97% 11.65% 14.73% 6.66% FY18 FY19 FY20 FY21 9M-FY22 FY1
Slide 33: Capital Market Information
Capital Market Information Share Price Movement (up to 31st December, 2021) 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% 15-Nov-21 30-Nov-21 15-Dec-21 30-Dec-21 Sigachi Sensex Shareholding Pattern as on 31st December, 2021 Market Data (INR) as on 31st December, 2021 Face Value 10.0 Public CMP 39
Slide 34: 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 35: Thank You
Thank You 35
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