Kiri Industries Limited · NSE:KIRIINDUS

Kiri Industries — Investor Presentation (February 2019)

45 slides from Kiri Industries's investor presentation, February 2019

  1. Slide 1: Kiri Industries Limited Investor Presentation

    Kiri Industries Limited (CIN:L24231GJ1998PLC034094) INVESTOR PRESENTATION | FEBRUARY 2019

  2. Slide 2: Executive Summary

    2 Executive Summary PRODUCTS INDUSTRIES CATERED FINANCIAL HIGHLIGHTS* Dyes Intermediates For Dyes intermediates TOTAL REVENUE H-acid • Various INR 11,368 Mn Vinyl Sulphone manufacturers of Specialty Intermediates reactive dyes across 3 Year - CAGR the globe. 6.82% Dyes Reactive dyes OVERVIEW Acid Dy

  3. Slide 3: Company Overview

    << AOS 2 COM PANY OVERVIEW

  4. Slide 4: Company Overview

    4 Company Overview • Based out of Gujarat since 1998, Kiri Industries Consolidated Revenue Break-up (INR Mn) Limited (KIL), has emerged as one of the largest manufacturers and exporters of a wide range of 4,517 4,722 Dyes, Dyes Intermediates and Basic Chemicals 3,681 4,678 4,117 from India. 3,377 •

  5. Slide 5: Management Team

    5 Management Team Pravin Kiri (Chairman) • He is a science graduate from Gujarat University and started his career in the year 1966 by associating himself with Jay Chemical Industry (Kharawala Group) as a partner and was responsible for all the technical matters of the group. • He has a wide interes

  6. Slide 6: Key Milestones

    6 Key Milestones Two-Star Export Achieved highest House Entered into a Commercial JV Agreement PAT since Obtained with Well Filed inception production Environmental Prospering minority of Singapore Court Incorporat Clearance for Ltd. for oppression backward Acquisition of DyStar delivered ion of Kir

  7. Slide 7: Manufacturing Facilities

    7 Manufacturing Facilities Unit I, Unit II & IV Unit V Location: Ahmedabad, India. Location: Vadodara, India. Products manufactured: Products manufactured: • S. O. Dyes • Sulphuric acid • Disperse Dyes • Oleum • Chloro-sulphonic acid along with 3.3 MW steam Capacity Installed: based power plant • Re

  8. Slide 8: Manufacturing Process

    8 Manufacturing Process Key Inputs Ice Napthalene Sulphur Sodium Nitrate Soda Ash Water Aniline Caustic Soda Chlorine Sulphur & Bulk Chloro Chemicals Para Nitro Sulphuric Oleum 65% Sodium Bi Thionyl Beta-Nepthol Sulphonic Acetanilide MPD Aniline Acid Oleum 23% Sulphate Chloride Division Acid Vinyl S

  9. Slide 9: Geographical Presence

    9 Geographical Presence AHMEDABAD THE NETHERLANDS VADODARA CZECH REPUBLIC UK BELGIUM SPAIN HUNGARY ITALY KOREA USA PORTUGAL TURKEY CHINA PAKISTAN TUNISIA SYRIA NEPAL IRAN TAIWAN BANGLADESH INDIA EGYPT HONG KONG THAILAND HONDURAS ECUADOR COTE D'IVOIRE SRI LANKA KENYA SINGAPORE INDONESIA DEMOCRATIC RE

  10. Slide 10: Awards and Accolades

    10 Awards and Accolades Award for Export performance of Award for Direct Export Platinum Award for Trishul Award for Chemexcil Gold Award - more than INR 6 Cr for Direct export of Self Manufactured Small Scale Sector - Small Scale Sector - 2006-07 of Self Manufactured Dye and Dye Dyes - 2000-01 2002

  11. Slide 11: Key Strengths

    11 Key Strengths • High entry barriers due to a stringent • The Company established a track record process of acquiring new permissions. of long-term relationship with key global • Heavy capital expenditure. names and the ability to pass on price • Strict implementation of environmental increases. a

  12. Slide 12: Business Overview

    BUSINESS OVERVIEW

  13. Slide 13: Business and Product Mix

    13 Business and Product Mix Revenue Break-up (FY14) Thionyl Chloro Chloride Other Basic Chemicals Sulphonic Speciality 1% Acid Chemical Oleum Dyes Vinyl 43% 65% & Intermediates Sulphone 23% Dye 56% Basic Intermedia Chemicals tes 3% 56% Sulphuric H Acid Dyes Acid Revenue Break-up (9M-FY19) 41% Basic

  14. Slide 14: Value Chain – Dye Stuff Manufacturing

    14 Value Chain – Dye Stuff Manufacturing Aniline Naphthalene In-house Acids and Usage of Raw Materials for Dyes Intermediates such as VS, H-Acid, B-Napthol MPD, etc. effluents & by-products Gamma Acid, K-Acid MUA, etc. Result of Zero Waste Dyes Inputs Intermediates Manufacturing process Dyestuffs Blac

  15. Slide 15: Benefits of Zero Waste

    15 Benefits of Zero Waste • The Company’s focus on becoming a Operating Zero Waste company has ensured Efficiency Superior that Spent Acids are a source of Entry Return Ratios Barrier revenue (converted into commercially viable products) and not a source of expense (frees the hassles of management and

  16. Slide 16: Dyestuff – An Overview

    16 Dyestuff – An Overview Dyestuff are organic and inorganic substances which can absorb light as well as reflect some Total Revenue (INR Mn) & Gross light to show colour. The dyestuff is also a water soluble substance. Margins Criteria for a Suitable Dyestuff 3,809 3,808 3,749 3,037 • Economical /

  17. Slide 17: Dyestuff Manufacturing Process

    17 Dyestuff Manufacturing Process Diazotization of Amine + HCl + Sodium Nitrite + Water + Ice Dissolving of Coupling Coupling of Component Diazo with Blending and (Coupling Coupling Clarification Standardization Spray Drying fine Packing Component + Components + standardization Water + Ice + NaHCO3

  18. Slide 18: Reactive Dyes

    18 Reactive Dyes • Reactive Dyes are the most versatile and popular class of Organic Dyes for importing colour on cellulosic fibres. • These are water soluble dyes which react to fibre, forming a direct chemical linkage with the application materials, which is not easily broken and offers good wash

  19. Slide 19: Other Dyes

    19 Other Dyes Acid Dyes • Acid dyes are the dyes which can be applied directly to the application materials from an aqueous solution (without mordant). • The Company has been working on developing Acid dyes since a decade. It has been manufacturing this range of dyes for a long time. • Colours Avail

  20. Slide 20: Dyes Intermediates

    20 Dyes Intermediates • Dyes intermediates are the main raw materials used for manufacturing dyestuffs. Total Revenue (INR Mn) & Gross • The manufacturing chains of dyes and dyes intermediates can be traced back to Margins petroleum-based products. 35% 46% 45% • Naphtha and natural gases are used fo

  21. Slide 21: Dyes Intermediates – H-Acid

    21 Dyes Intermediates – H-Acid H-Acid • H-acid is one of the leading dyes intermediates in the world, used in the manufacture of black dyes. • H-acid (8-amino- 1-hydroxynaphthalene-3,6-disulfonic acid), an important dye intermediate, is produced from Naphthalene by a combination of the unit processe

  22. Slide 22: Dyes Intermediates – Vinyl Sulphone

    22 Dyes Intermediates – Vinyl Sulphone Vinyl Sulphone • Vinyl Sulphone is an industrial chemical used as a key raw material for manufacturing reactive dyes, having application mainly in textiles. It is manufactured from aniline. • It has applications in manufacturing of Reactive dyes. • The Company

  23. Slide 23: Basic Chemicals

    23 Basic Chemicals • As part of strategic backward integration, the Company has set up Basic Chemical facility Total Revenue (INR Mn) & Gross to manufacture: Margins • Sulphuric Acid 35% 36% 38% • Oleum 32% • Chloro Sulphonic Acid 25% • Thionyl Chloride 20% • All these products are made in one integ

  24. Slide 24: Future Outlook – Foray Into Disperse Dyes

    24 Future Outlook – Foray Into Disperse Dyes Disperse dye: • Disperse dyes are synthetic organic dyes and is a kind of organic substance which is free of ionizing group. They are less soluble in water and are used for dyeing synthetic textile materials. Disperse dyes are mainly used for dyeing polye

  25. Slide 25: DyStar

    DYSTAR

  26. Slide 26: About DyStar

    26 About Dystar Total Revenue (USD Mn) 1,128 1,016 938 898 KIL acquired DyStar in 2010, along with Zhenjiang 822 871 Longsheng holding 37.57% presently • The DyStar Group is a leading dyestuff and chemical manufacturer and solution provider, offering a broad portfolio of colorants, specialty chemica

  27. Slide 27: History

    27 History COLORATION SPECIALIST FOUNDATION JOINT VENTURE OF: ACQUISITION: Bayer AG and Emerald Hoechst AG Performance (Textile dyes, ACQUISITION: FOUNDATION: Materials SOLUTION Ind. Color Solutions ACQUISITION: Sustainable Specialities SUSTAINABILITY LEADER PROVIDER Mitsubishi) International Texani

  28. Slide 28: Value Creation in DyStar

    28 Value Creation in DyStar Successfully turning around the operations of DyStar • The turn-around plan was successfully executed by replacing high cost German manufacturing base with low cost manufacturing in India, China and Indonesia, etc. • KIL is entitled to profit shares of INR 826 Mn, INR 1,9

  29. Slide 29: Industry Overview

    INDUSTRY OVERVIEW

  30. Slide 30: The Colourant Industry

    30 The Colourant Industry • Global colourants market is estimated to reach ~USD 38.4 Bn by the end of 2021, a growth of ~5% CAGR during 2016-21, on the back of strong growth in high-value Colourants Industry products. (~USD 4.1 Bn) • From the current market size of ~USD 4.1 Bn (2016), the Indian col

  31. Slide 31: Indian Dyestuff Industry

    31 Indian Dyestuff Industry Dyestuff Industry: India – DS Industry size (USD Bn) • Dyestuff (DS) accounts for ~25% (USD 1.03 Bn) of the total colourants industry in India. • It is expected to maintain a higher double digit growth and reach ~USD 2.45 Bn by the 2.45 end of 2021 on the back of: (1) Str

  32. Slide 32: Indian Dyes Intermediates Industry

    32 Indian Dyes Intermediates Industry Dyes Intermediates Industry: DI market in India (USD Bn) • In terms of value, DI accounts for 47% (~USD 1.9 Bn) of the total colourant industry in 3.6 India and posted a CAGR of 16.8% from 2009 to 2016. • Over 70% of the DI industry in India is organised due to

  33. Slide 33: Industry Overview

    33 Industry Overview Indian Colourant Industry Global Colourant Industry Indian Colourant Industry Share Globally 8.4 38.4 30.1 21.90% 4.1 23.8 13.50% 2 8.40% 2011 2016 2021 2011 2016 2021 2011 2016 2021 RoE and RoCE India's Colourant Domestic-Export Mix India – Reactive DS Reactive DS (production t

  34. Slide 34: India’s Competitive Advantage

    34 India’s Competitive Advantage China Factors: • In China, apart from the ETP hurdle, there is: (1) Reduction in refund of VAT from 17% to about 13% on DI (2) Cancellation in power subsidy (a major cost, 6-9% of revenue) (3) Non refund of VAT on DS export out of China causing imposition of export d

  35. Slide 35: Strategic Overview

    STRATEGIC OVERVIEW

  36. Slide 36: The Way Forward

    36 The Way Forward Focus on Focus on Focus on setting up establishing Focus on Free expanding the Set up Inorganic and Focus on manufacturing joint ventures with Cash Flow existing manufacturing organic growth strengthening facility of leading MNCs for Generation and Disperse dyes facilities of thro

  37. Slide 37: Financial Overview

    FINANCIAL OVERVIEW

  38. Slide 38: Standalone Income Statement

    38 Standalone Income Statement PARTICULARS (INR Mn) FY15 FY16 FY17* FY18* 9M-FY19* Total Income 7,826 8,967 10,355 9,046 7,582 Total Expenses 7,116 8,064 9,059 7,712 6,350 EBITDA 710 903 1,296 1,334 1,232 EBITDA Margin 9.07% 10.07% 12.52% 14.75% 16.24% Depreciation 202 204 222 250 202 Finance Cost 8

  39. Slide 39: Standalone Balance sheet (IND-AS)

    39 Standalone Balance sheet (IND-AS) PARTICULARS (INR Mn) FY17 FY18 H1-FY19 PARTICULARS (INR Mn) FY17 FY18 H1-FY19 Equity 3,941 5,109 5,868 Non-Current Assets 5,289 5,424 5,778 Equity Share Capital 278 302 313 a) Property, Plant and Equipment 3,048 3,485 3,419 Other Equity 3,663 4,807 5,555 b) Other

  40. Slide 40: Consolidated Income Statement

    40 Consolidated Income Statement PARTICULARS (INR Mn) FY15 FY16 FY17* FY18* 9M-FY19* Total Income 9,328 10,427 12,007 11,368 10,092 Total Expenses 8,313 9,173 10,393 9,542 8,239 EBITDA 1,015 1,254 1,614 1,826 1,853 EBITDA Margin 10.88% 12.03% 13.44% 16.06% 18.36% Depreciation 284 269 291 341 269 Fin

  41. Slide 41: Consolidated Balance sheet (IND-AS)

    41 Consolidated Balance sheet (IND-AS) PARTICULARS (INR Mn) FY17 FY18 H1-FY19 PARTICULARS (INR Mn) FY17 FY18 H1-FY19 Equity 10,324 14,047 16,018 Non-Current Assets 11,615 14,156 15,391 Equity Share Capital 278 302 313 a) Property, Plant and Equipment 3,668 4,033 3,934 Other Equity 10,046 13,745 15,7

  42. Slide 42: Consolidated Financial Highlights

    42 Consolidated Financial Highlights Total Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margins (%) PAT (INR Mn) & PAT Margins (%) 1,826 12,007 1,614 1,267 1,095 11,368 1,254 16.06% 13.44% 10,427 12.03% 11.15% 9.12% 257 2.46% FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 RoE and RoCE Net Debt : Equity N

  43. Slide 43: Capital Markets

    43 Capital Markets Share Price Data as on 31st Dec , 2018 40% Kiri Sensex 30% 20% 10% 0% -10% -20% -30% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Price Data (31st Dec, 2018) INR Shareholding Pattern as on 31st Dec, 2018 Face Value 10.00 Market Price 447.10 P

  44. Slide 44: Disclaimer

    44 Disclaimer Kiri Industries Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that a

  45. Slide 45: Thank You

    THANK YOU

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