Jk Tyre & Industries Limited · NSE:JKTYRE
Jk Tyre & Industries — Investor Presentation (December 2017)
36 slides from Jk Tyre & Industries's investor presentation, December 2017
Slide 1: Investor Presentation December 2017
Investor Presentation December 2017
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by JK Tyre & Industries Limited (the “Company” or “JK Tyres”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distr
Slide 3: Table of Contents
Table of Contents 1 JK Group: A Snapshot 2 Indian Tyre Industry Outlook 3 JK Tyre: An Overview 4 JK Tyre: Future Ready 3
Slide 4: JK Group – Organization Structure & Family Tree
JK Group – Organization Structure & Family Tree Late Juggilal Singhania Founding Generation Late Kamlapat Singhania Late Sir Padampat Singhania Late Lakshmipat Singhania Late Kailashpat Singhania Group Companies Late Hari Shankar Bharat Hari Late Shripati Dr. Raghupati Singhania Singhania Singhania
Slide 5: JK Tyre & Industries: An Overview
JK Tyre & Industries: An Overview JK Group Overview JK Tyre: Business Overview • Established tyre business in 1976, JK Tyres is the No. 1 in Truck and Bus Radial (TBR) tyre manufacturer in India with highest market share1 • Global Brands: Leading Cement Pioneered Steel Largest Manufacturer of • Rank
Slide 6: The Journey So Far: Key Milestones
The Journey So Far: Key Milestones • First Tyre plant • Acquired Vikrant • Acquired • Greenfield • Acquired in Kankroli, Tyres Ltd., Tornel plant in plant in Cavendish Rajasthan Mysore Mexico Chennai Industries 1976 1991 1997 1999 2008 2010 2012 2013 & 2016 2014 • Set up second • Started All • New O
Slide 7: Table of Contents
Table of Contents 1 JK Group: A Snapshot 2 Indian Tyre Industry Outlook 3 JK Tyre: An Overview 4 JK Tyre: Future Ready 7
Slide 8: Industry Overview
Industry Overview Indian Tyre Industry Overview Overview: By Revenue Segment – FY17 By End Market – FY17 • Indian Tyre Industry generates over US$ Others 8.0 bn in turnover 9% 2/3 Truck & Wheelers Bus OEM • Commercial Tyre segment (Truck/Bus & 13% 54% 32% LCVs) accounts for ~2/3rd (by value) of tota
Slide 9: Robust Domestic Demand Across Segments
Robust Domestic Demand Across Segments Key Drivers & Trends Truck and Bus Sales¹ (Mn) PV Sales¹ (Mn) CAGR CAGR • India has grown and emerged FY13-17: 5.0% Actuals Projected FY13-17: 5.0% Actuals Projected 5.5 FY18E-21E: 11.9% FY18E-21E: 10.6% over time as a ‘Small Car’ 0.5 5.1 hub 0.5 • Growing vehi
Slide 10: Raw Material Price Trend
Raw Material Price Trend Natural Rubber – Price Movement (Last two years) RM Consumption by Value (FY17) $3.5 $3.0 Others Natural $2.5 15% Rubber 38% $2.0 $1.56 $1.57 $1.5 $1.0 $0.5 Aug-15 Nov-15 Mar-16 Jun-16 Sep-16 Jan-17 Apr-17 Aug-17 Nov-17 Brent Crude Oil – Price Movement (Last two years) (US$
Slide 11: Truck and Bus Radialisation is Gaining Momentum
Truck and Bus Radialisation is Gaining Momentum Key Drivers & Trends Radialisation (%) 90% Actuals Projected 82% Cost - Benefit Ratio 80% 78% 80% 75% 74% 72% 70% 73% 61% Road Development 66% 60% 51% 57% 50% 42% 50% 47% Overload Control 40% 44% 34% 34% 30% 25% 33% 26% 20% User Education 22% 19% Radia
Slide 12: Table of Contents
Table of Contents 1 JK Group: A Snapshot 2 Indian Tyre Industry Outlook 3 JK Tyre: An Overview 4 JK Tyre: Future Ready 12
Slide 13: Leading Indian Tyre Manufacturer: Presence Across Product Segments
Leading Indian Tyre Manufacturer: Presence Across Product Segments By Revenue Segmentation¹ – FY 17 By Market By Product Line Farm 4% Others 2% OEMs 34% PCR 15% Light Truck 12% Exports Replacement Truck 67% 10% 56% By Customer Mix² – FY 17 Truck & Bus Truck Radial Passenger Car Replacement OEMs 40%
Slide 14: Product Portfolio: Moving in Sync with Radialisation
Product Portfolio: Moving in Sync with Radialisation Truck Radial & Passenger Radial Pose Healthy Growth Wide Product Range No. of Tyres Sold (Consolidated) Particulars (Mn) FY17 FY16 FY15 Truck Bias 2.24 1.77 2.08 Farm Industrial and Truck Radial 2.21 1.82 1.53 Speciality Passenger line Radial 8.30
Slide 15: Product Portfolio: Innovative Offerings
Product Portfolio: Innovative Offerings Innovation at its Best : Smart Way Tyres Innovative Products, New Materials for Greener Products & Processes Complies with stringent fuel Polymers: Reduce rolling resistance to improve fuel efficiency efficiency requirements by US Government Fillers: Devel
Slide 16: Global Manufacturing Footprint
Global Manufacturing Footprint Global Manufacturing and Distribution Manufacturing India – 9 Plants • Kankroli, Rajasthan – 1 Moscow • Banmore, Madhya Pradesh – 1 • Mysore, Karnataka – 3 • Chennai, Tamil Nadu – 1 • Laksar, Haridwar – 3 USA India China Mexico – 3 Plants • Azcapotzalco – 1 Dubai Thail
Slide 17: R&D and Technology: All Solutions Under One Roof
R&D and Technology : All Solutions Under One Roof State of the Art R&D Facility Technology Leading R&D Centre: • Advanced facilities of design and technology housed under one roof spread across 10,000 sq mts of built-in area • ‘HASTERI (Hari Shankar Singhania Elastomer & Tyre Research Institute)’: A
Slide 18: Brand Positioning: Presence Across the Pricing Spectrum
Brand Positioning: Presence Across the Pricing Spectrum Portfolio of Five Marquee Brands, Catering to Multiple Segments India International Tier 1 Tier 2 Tier 3 Tier 1 Tier 2 Type / Segment Premium Standard Economy Premium Economy Truck Bus Radial (TBR) Truck Bus Bias (TBB) Passenger Car Radial (PCR
Slide 19: Multiple Brand Strategy: Truck Radial
Multiple Brand Strategy: Truck Radial Tier 1 Tier 2 Key Brands Tier 3 Key Brands Key Brand • Products with high load carrying capacity, high initial mileage, and high re-treadability • Tyres with normal load carrying, good initial mileage, single re-treadability • Comprehensive after sales support a
Slide 20: Multi Brand Strategy – Truck Bias
Multi Brand Strategy – Truck Bias Tier 1 Segment Products with Heavy & Super Heavy load carrying premium mileage & good retreadability Comprehensive aftersales support and credit sale ~75% industry TIER 1 Segment Tier 2 Segment Tyres with Normal load & mileage. almost negligible retreadabili
Slide 21: Brand Building & Marketing Activities
Brand Building & Marketing Activities Domestic Branding Campaigns International Branding Campaigns • High brand visibility through campaigns across business • Synchronized marketing and brand building exercises in line segments as seen below with market requirements across geographies Farm Segment A
Slide 22: Strong OEM Relationships: Industry Leading Partners
Strong OEM Relationships: Industry Leading Partners Car Truck Tractor OTR India/Mexico India/Mexico JK Tornel, Mexico JK Tornel, Mexico – LTR JK Tornel Mexico 22
Slide 23: Extensive Distribution Network
Extensive Distribution Network Pan-India distribution network of 4,000 dealers & 200 distributors globally Domestic International • 35 JK Tyre Truck Wheels Replacement channel • Fully equipped Tyre service centre for enhancing customer experience by offering Total Tyre Solution 250 dealers (includin
Slide 24: Sustainability Initiatives
Sustainability Initiatives Progressing Towards an Environmentally Friendly Ecosystem Energy Consumption (GJ/Ton) GHG Emission (Eq. Co2Ton/Ton) Water Consumption (Kl/Ton) 12.3 1.9 4.4 10.3 1.4 2.8 FY14 FY17 FY14 FY17 FY14 FY17 Energy Consumption (GJ/Ton) – 20% Reduction in Carbon Foot Print (GHG emis
Slide 25: CSR Initiatives: Inclusive Growth Approach
CSR Initiatives: Inclusive Growth Approach Skill building trainings, Self Help Groups, Livelihood agricultural improvement & livestock Enhancement development Adult literacy programs in remote villages (over 45,000 beneficiaries) & Mysuru prison (over 4,500), Adoption of Education ITI’s (500 per ann
Slide 26: Financial Overview: Consolidated
Financial Overview: Consolidated ` Crs. Particulars FY 17 FY16 FY 15 FY14 Profit & Loss Net Revenue 7755 6922 7401 7670 EBIDTA 1198 1141 948 890 EBITDA Margin 15% 16% 13% 12% PAT 381 467 330 263 ROE 18.1% 26.7% 24.2% 24.0% Balance Sheet Share Capital 45 45 45 41 Net Worth 2110 1751 1360 1097 Gross D
Slide 27: JK Tyre - Highlights of Q2 FY18
JK Tyre - Highlights of Q2 FY18 Growth in Q2FY18 Standalone Over Corresponding Qtr. Over Preceding Qtr. Basis Net sales 11% 22% (value) Volume 6% 23% (nos.) Exports 58% 11% (value) Exports grew by 95% in H1FY18 over H1FY17 % Growth In Domestic Market vis -a vs Industry over Previous Quarter
Slide 28: JK Tyre - Highlights of Q2 FY18
JK Tyre - Highlights of Q2 FY18 JK Tyre’s growth boosted by: Imposition of Anti dumping duty on Higher Off-Take by dealers & OEMs Chinese TBRs in Sep’17 Impact Better demand in passenger segment • Increased Volumes & Market Share - both 4 wheeler & 2 wheeler • More visibility of premium bran
Slide 29: JK Tyre - Highlights of Q2 FY18
JK Tyre - Highlights of Q2 FY18 Operating efficiencies achieved: Apr-Sep'16 Apr-Sep'17 Particulars Unit Oct'17 (H1) (H1) % of total power Renewable Power 20.0 41.2 48.1 consumed Water Consumption Ltrs/Kg 2.99 2.72 2.30 Manpower Productivity Mandays/Ton 9.7 9.9 9.2 Power Consumption Kwh/kg 0.899 0.
Slide 30: JK Tyre - Highlights of Q2 FY18
JK Tyre - Highlights of Q2 FY18 Taximax Elanzo Touring Ux Royale Excellent ride and handling New Maruti S Cross comes 100% Specially made for Taxis on JK Tyre UX Royale 1Lakh+ km mileage Low Noise Two steel Belts for superior strength High Mileage 30
Slide 31: Brand Building: Ranger
Brand Building RANGER Now with White lettering • Raised White Side wall Letters • Premium Imagery Premium Packaging Full Poly Wrapping Shrink Wrapping 31
Slide 32: Recent Accolades
Recent Accolades • Dr. Raghupati Singhania, CMD conferred with: “Excellence in Global Entrepreneurship Award” by Indo-American Chamber of Commerce, North India Council. Award presented by Mr. Patrick O. Santillo, Minister Counselor for Commercial Affairs, US Embassy. (September 2017) 32
Slide 33: Table of Contents
Table of Contents 1 JK Group: A Snapshot 2 Indian Tyre Industry Outlook 3 JK Tyre: An Overview 4 JK Tyre: Future Ready 33
Slide 34: Key Management Team
Key Management Team Dr. Raghupati Singhania Chairman & Managing Director Arun K. Bajoria Anshuman Singhania Mr Rajiv Prasad Kumar Joshi Director & President – President A. K. Kinra V. K. Misra Executive Director – International Operations Whole-time Director India Operations Finance Director Technic
Slide 35: Growth Strategy Going Forward
Growth Strategy Going Forward 1 2 Strengthen Market Increase Global Position across Business Share Segments 6 3 Turnaround Deleverage Balance Cavendish Sheet Operations 5 4 New Product Improve Profitability Development through Focus on R&D 35
Slide 36: Acquisition History: Tornel & Cavendish
Acquisition History: Tornel & Cavendish Manufacturing Excellence Manufacturing Excellence Acquisition Overview Acquisition Overview • Acquired in 2008, well established tyre company in Mexico • Acquired in April 2016 • 3 tyre manufacturing plants in Mexico (Azcapotzalco, Tultitlan and • State-of-the
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