Emmbi Industries Limited · NSE:EMMBI
Emmbi Industries — Q3 FY2017-18 Earnings Presentation
46 slides from Emmbi Industries's earnings presentation, 2018
Slide 1: Emmbi Industries Limited Investor Presentation Q3, FY 2017-18
EMMBI INDUSTRIES LIMITED INVESTOR PRESENTATION Q3, FY 2017-18
Slide 2: Disclaimer
Disclaimer This is not an investment recommendation, and this presentation contains forward-looking statements, identified by words such as „plans‟, „expects‟, „will‟, „anticipates‟, „believes‟, „intends‟, „projects‟, „estimates‟ and so on. All statements that address expectations or projections abo
Slide 3: Contents
Contents 1. Highlights of Q3 FY17-18 2. Financial Performance Update 3. Product Verticals Snapshot 4. The Water Opportunity Appendix: A- Emmbi’s Products and Services Details B- Sustainable Business Practices: The Emmbi Way C - Polymer Processing Industry : Global Perspective D - Recent Innovation a
Slide 4: 1. Highlights of Q3 FY17-18
1.Highlights of Q3 FY17-18 Quarter 3 Quarter 2 Quarter 1
Slide 5: Key Operating Highlights
I. Key Operating Highlights Revenue EBIDTA PAT and EPS +16.83% +112 BPS +29.60% (9 Months Y-O-Y) (9 Months Y-O-Y) ( 9 Months Y-O-Y) • Innovation: Pilot of “Smart Factory” to control excesses in the Batch Processes using modern IOT technology • Brands: Focus on Rural Brand Development | Special “Smal
Slide 6: Innovation of the Quarter
II. Innovation of the Quarter • Manufacturing 4.0: Productivity. Machine Learning • Successfully Completed on 04 Machines • Commercial Completion of the project in next 2 Quarters • Expected Cost around 1.2 Cr. Substantial Cost saving due to Home Developed technology and usage of IOT • Direct “Man-M
Slide 7: Our Success Mantra
III. Our Success Mantra STRONG SMART EFFICIENT ASSET RESEARCH MANUFACTURING MANAGEMENT Practicing “Lean” Consistently improving ROCE, manufacturing technology, ROA, ROE has translated into With management system an value for investor, Improved Emmbi Innovation Lab is the integrated the Smart IOT EPS
Slide 8: Investments in R&D begin to pay off
IV. Investments in R&D begin to pay off • Govt. of India, Department of Science & Technology Certified • Filed 14 Patents in past 6 years • 35 member Dedicated R & D Team • Approx. 2.5 % of Revenue is allocated as budget • Helps maintain the target of “20 % Revenue from product developed in past 20
Slide 9: 2. Financial Performance
2. Financial Performance
Slide 10: Sustained growth across all financial parameters
Sustained growth across all financial parameters (₹ Millions) 2013 2014 2015 2016 2017 9M 2017 9M 2018 Revenues 1,474.72 1,680.3 1,929.1 2,176.6 2,409.8 2 0 6 9 1741..86 2035.09 200+ 45% EBIDTA 126.09 154.17 202.26 269.64 299.46 209.55 255.87 Clients Exports PAT 32.42 43.34 59.65 105.95 127.28 86.41
Slide 11: 3. Product Verticals
3. Product Verticals
Slide 12: We operate across four verticals
We operate across four verticals Estimated Global Market: Estimated Global Market: Estimated Global Market: Estimated Global Market: 2.5 US $ Billion 36.5 US $ Billion 30 US $ Billion 4 US $ Billion The Water Conservation The Advanced Composites Currently accounting for the Products manufactured by
Slide 13: Revenue breakdown
Revenue breakdown 47.75% 45.02% 42.95% 43.50% 42.00% 41.00% 38.50% 35.50% 33.43% 32.75% 30.00% 28.00% 25.00% 23.00% 20.00% 18.11% 15.75% 14.50% 6.00% 5.00% 3.75% 3.44% 2.25% 2.80% 2015 2016 2017 2018 2019 2020 Projection Past Review
Slide 14: Business by geography and vertical
Business by geography and vertical • Government’s large thrust for water conservation products in rural economy • Leveraging experience based on huge success of our unique products - collapsible water tanks, crop covers, pond liners • Increasing awareness among farmers through our new brands “Emmbi
Slide 15: 4. The Water Opportunity
4.The Water Opportunity # Pic :Actual image of Emmbi Pond in the Desert of Jaisalmer, State Rajasthan, India.
Slide 16: India's rural growth is fraught with challenges
India’s rural growth is fraught with challenges Water, a primary concern ~54% India lives faces high to very high water stress* * Source: Water Resources Institute
Slide 17: Ponds are an important ingredient of new-age micro irrigation
Ponds are an important ingredient new-age micro irrigation • Pond a Stagnant source of water is first building block of micro irrigation • Depletion in underground water table causing conventional wells & borewells unviable • Govt. mandating certain crops must be micro- irrigated (Sugarcane, Fruits)
Slide 18: Significant headroom for growth: India still lags in micro-irrigation
Significant headroom for growth: India still lags the world in micro-irrigation 100 90 India lacks penetration in micro irrigation 80 70 60 % 50 40 30 20 10 0 Israel Russia Spain US Brazil India Actual image taken at Pahur, Jalgoan,Maharashtra,India. *Source: 2011 Census, Govt of India # Source: KPM
Slide 19: Indian Government's mission: Double Farmers income by 2020
Indian Government’s mission: Double Framers income by 2020 A number of programs announced: • “Jalayukta Shivar” Yojana • “Magel Tyala Shettale” Yojana • e-National Agricultural Market • Pradhan Mantri Krishi Sichai Yojana
Slide 20: One Pond Every Hour
Emmbi has a role to play… What we’ve achieved We believe we can 3,300 Hectares 1650 ponds One Pond Every Hour 2 states With existing capacity 18 months 4 more states in next 3 Years 1 Pond Every 8 Hours Actual image of Emmbi pond Sinner, Dist. Nashik, State Maharashtra, India
Slide 21: Our technology gives us the edge
Our technology gives us the edge A Special Woven Polymer Based Pond Liner with worlds widest width to reduce joints and improve effectiveness
Slide 22: An Ecosystem to support our growth
An Ecosystem to support our growth Complete End-to-End Solution: Pond Design, Excavation Partners, Technical Validation, Product Supply, Emmbi Certified Installation Operators, Post Sale Warranty & Service Team Post Sale Warranty Excavation Emmbi certified & Service Partners Installation Operators T
Slide 23: Our Brand gives us the competitive edge
Our Brand gives us the competitive edge Creating a Brand Emmbi synonyms to water storage Village Meetings Wall Painting Agro-Exhibitions
Slide 24: Allied Products to sustain future growth
Allied Products to sustain future growth • Setting up a wholly owned subsidiary “Emmbi Watcon” to create a special focus on Canal Liner to improve the efficiency of the large Dams • Flexi tanks for the Rural Transportation • Evaporation Management for improving the Storage Efficiency Flexitank
Slide 25: Appendix A, B & C
Apdx.A, B & C
Slide 26: Helped irrigate 3,300 Hectares of crops using 1650 ponds
Helped irrigate 3,300 Hectares of crops using 1650 ponds in 2 states of India in past 18 months Pic: Pond for 8 million ltr Water Storage Created by Emmbi At Pahur, Dist Jalgaon, State of Maharashtra, India
Slide 27: Product snapshot: Water Conservation
Product snapshot Pond Liner Check Dam Water Conservation 17.50 % Canal Liner Collapsible Pipe
Slide 28: Product snapshot: Water Conservation
Product snapshot Cycle Tank 1000 Liter Flexi Tank Water Conservation 17.50 % 500 Liter Standing Tank Open Flexi Tank
Slide 29: Advanced Composite Range
Helped to protect priceless lives and assets worth Billions with our Advanced Composite Range
Slide 30: Product snapshot: Advance Composites
Product snapshot UN Certified FIBC Application of UN Certified FIBC Advance Composites 46.12 % Water – Slug Separator Application of Anti Nuclear Power plant Carcinogenic Packaging Waste Disposal
Slide 31: Product snapshot: Advance Composites
Product snapshot Electrically Conductive Polymer Anti-Corrosive VCI Films Advance Composites 46.12 % Application for Fall Arrest Anti Corrosive Fabric
Slide 32: Helped put 4 Million Tonnes of food and cargo in service
Helped put 4 Million Tones of food & Other Cargo in your service every single year, safely
Slide 33: Product snapshot: Specialty Packaging
Product snapshot Construction FIBC Application of Construction FIBC Bulk Packaging with Specialty Packaging lowest carbon foot print 33.28 % only 0.7 gm polymer can hold up to 1 kg of Material Packaging Barrier Films
Slide 34: Product snapshot: Specialty Packaging
Product snapshot “Form Stable” Conductive Liquid & Solid Container Liner Specialty Perfect partner to new age Packaging Supply Chain system , and 33.28 % Hyper Local Models of Distribution, Typically used by Multinationals & e-commerce Urban Waste Disposal companies
Slide 35: Help protect your food from contamination
Help protect your food from contamination from hazardous chemicals and pesticides, naturally Actual Picture from KVK Baramati, Dist Pune, State of Maharashtra, India
Slide 36: Product snapshot: Agro Polymer
Product snapshot Mulch Film Crop Cover Agro Polymer 3.10 % Silage Incubator Shade Net
Slide 37: Innovation at Emmbi
INNOVATION AT EMMBI
Slide 38: Early successes: Poultry Curtain
Early successes Poultry Curtain (Agro Polymer) • Application: Poultry Industry. Poultry Curtain is a low-cost light polarizer to improve the growth of chicks. • What they use Conventionally?: Electric Bulbs or Yello Fabric • What’s unique: We have designed the product which can filter a light of the
Slide 39: Early successes: Coffee Bag
Early successes Coffee Bag (Advanced Composites) • Aroma Lock: A specialized technology using aluminum film, that helps preserve freshness of food • Application: transportation of Coffee, Tea and similar commodities that need to keep retain their natural aroma and flavors • A super convenient sealing
Slide 40: Early successes: Wool Pack
Early successes Wool Pack (Advanced Composites) • Application: Contamination-free packaging of raw wool • Why it’s better: traditionally, wool was packed in nylon packaging which is very expensive. We developed a special blend of polymer that offers all the conventional wookpack benefits at half the
Slide 41: Early successes: Patented pond accessories
Early successes Animal Discharge Route Anti-Evaporation Cover Pond Lining Accessories These Patented products further enhance the performance of the pond liner by offering safety and saving of water by evaporation Patent Pending - TEMP/E-1/33242/2017-MUM Patent Pending - TEMP/E-1/33245/2017- MUM los
Slide 42: Our philosophy on sustained future growth
Our philosophy on sustained future growth • A focus on need identification, rather than being product-focused • Unrelenting focus on R&D capabilities for a continuous new product pipeline • Unique processes that are difficult to replicate • Focus on automation to ensure optimal manpower utilization
Slide 43: Our philosophy on sustainability
Our philosophy on sustainability Emmbi‟s brand philosophy of Brighter Every Way translates naturally to Sustainability. However, to us, sustainability goes beyond the commonly understood one- dimensional, “environment-friendly” meaning. To us it means: • Sustained Business Growth • Happy Stakeholder
Slide 44: India still has head-room for growth in polymer consumption
Compared to the global averages, India still has head-room for growth INDIA LAGS THE WORLD IN POLYMER CONSUMPTION 109 India’s consumption of polymers is still a third of the global average. Per Capita Consumption of Polymers (Kgs.) URBANIZATION TO DRIVE CONSUMPTION As the country urbanizes and grows
Slide 45: Emmbi is driving this shift through unique applications
In India, Emmbi Industries is driving this shift through unique applications Conventional applications Modern applications Jute Bags PP Bags Woven Polymer Canal Liners Concrete Canal Liners Woven Polymer Flexi Tank Concrete / Metal Water Tanks Woven PP Water Sludge Separator Metal Sludge Separator T
Slide 46: Thank you
Thank you Emmbi Investor Services: info@emmbi.com
Emmbi Industries — Q3 FY2017-18 Earnings Presentation on 6ix