Maharashtra Seamless Limited · NSE:MAHSEAMLES
Maharashtra Seamless — Investor Presentation (December 2012)
28 slides from Maharashtra Seamless's investor presentation, December 2012
Slide 1: Corporate Presentation
Corporate Presentation “Explore the true potential” MAHARASHTRA SEAMLESS LTD December 2012
Slide 2: Forward Looking & Disclaimer Statement
FORWARD LOOKING & DISCLAIMER STATEMENT This Investor Communique contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, prediction or similar expression for the future are forward
Slide 3: Group & Company Overview Market & Industry Overview Financial Overview
Group & Company Overview Pg: 4 to 9 Market & Industry Overview Pg: 10 to 14 Pg: 15 to 17 Financial Overview Pg: 18 to 21 Awards Pg: 22 to 25 SWOT Analysis & Future Outlook Conclusions & Contacts Pg: 26 to 27 3
Slide 4: Group Structure
GROUP STRUCTURE D P Jindal Group Pipes Drilling MSL JPL JDIL One of the largest producer of Jindals embarked into Steel Pipes & Tubes in India Jindals are pioneer & major contributory business activity long (in both Seamless & ERW) in Growth of Seamless & ERW back in 1952 Pipes & Tubes Industry. JIN
Slide 5: A Brief About MSL
A BRIEF ABOUT MSL Leading manufacturer of Seamless & ERW Carbon & Alloy Steel Pipes & Tubes in India. A unique track record of putting up the plant at the lowest CAPEX levels. Is an ISO 9001 : 2008 Company and having API (5CT & 5L) and IBR Licenses. Plant is strategically located at Nagothane, about
Slide 6: Major Milestones of MSL
MAJOR MILESTONES OF MSL 1988 Incorporated 1991 IPO Launched 1992 7” Seamless Plant Commissioned 1993 API Certification and Production of Casing & Line Pipes 1995 IBR Certification by Central Boiler Board 1996 ISO Certification by BVQI 2000 20” ERW Plant Commissioned 2001 7 MW Wind Power Plant Commis
Slide 7: Installed Capacities
INSTALLED CAPACITIES At Raigad (Maharashtra) 5,50,000 MT p.a. of Seamless Pipes (from 1/2 ” to 20” OD). 2,00,000 MT p.a. of ERW Pipes (from 6” to 20” OD) + External / Internal Coating Facility (from 1” to 48” OD) At Satara (Maharashtra) 20 Wind Turbine Generators (WTG) of 350 KW each, aggregat
Slide 8: Product Accreditation
PRODUCT ACCREDITION Certificate of Authority to use the Official API Monogram : Regulation se UcnseNanbee STE min estat she. Tabio9/018 Pee. econo ine _DP-ANDAL GROUP OF NOUSTRIES MANARASHTRA SEAULESS LTD) <i otters Boar Pe Nap Vilage Sub NT, BG Road Det aos Certitieate of Approval for Well Known Cu
Slide 9: Board of Directors
BOARD OF DIRECTORS Mr. D. P. Jindal Chairman Mr. Saket Jindal Managing Director Mr. Sanjeev Rungta Director Mr. U. C. Agarwal Director Mr. S. P. Raj Whole-Time Director Mr. Ravi Gupta - CFO 9
Slide 10: An Overview of Indian Pipes & Tubes Industry
AN OVERVIEW OF INDIAN PIPES & TUBES INDUSTRY Types of Size Major Raw Domestic Players Main Application Pipes Material SEAMLESS 1/2” – 20” Round Steel Billets Maharashtra Seamless Wide Application in High Pressure Oil & ISMT, OCTL, Heavy Metal Gas Exploration & Drilling, Boiler, Jindal Saw Automobile
Slide 11: Demand Drivers for Indian Pipes & Tubes Industry
DEMAND DRIVERS FOR INDIAN PIPES & TUBES INDUSTRY Pipe Sector Oil & Gas Non-Oil E&P Transport General Engg., Water & Sewage Auto & Boiler Transport Seamless HSAW LSAW ERW Seamless DI / CI HSAW ERW 11
Slide 12: Valued Customers
VALUED CUSTOMERS Oil & Gas Sector Hydraulic Cylinder ONGC, OIL, GAIL, Indraprasta Gas, Cairn Energy, Mahanagar Gas Ltd, UT Ltd., Salzgitter Hydraulic Pvt Ltd., BG Exploration ,Green Gas, Bhagyanagar Gas Reliance Industries, GAIL Gas Hydrocarbon & Process Industry Boiler, Heat Exchanger & Condenser I
Slide 13: Vendor Registration for MSL by Major Customer
VENDOR REGISTRATION FOR MSL BY MAJOR CUSTOMER Domestic International Oil & Natural Gas Corpn.Ltd. (ONGCL) Sat Joint Operation, Saudi Arabia & Kuwait (JV Company of Chevron, Texaco & KOC) Oil India Ltd. (OIL) Gas Authority of India Ltd. (GAIL) Al-Furat Petroleum Corporation, Syria (JV Compan
Slide 14: Major Global Seamless Players
MAJOR GLOBAL SEAMLESS PLAYERS Domestic International Maharashtra Seamless Ltd. Tenaris Group, Mexico (Siderca, Tamsa, Dalmine, Tavsa, ISMT LTD NKK Tubes & Algoma Tubes) Jindal Saw Ltd. Vallourec & Mannesmann, France Remi Metals Arcelor Mittal OCTL Tianjin Pipe Corpn., China Heavy
Slide 15: Financial Position
FINANCIAL POSITION PROFIT & LOSS ACCOUNT EXTRACT Description FY08 FY09 FY10 FY11 FY12 H1 FY13 Audited Audited Audited Audited Audited Declared Sales 16404 21835 16912 18874 24282 10634 Operating Income 145 253 108 223 98 0 Other Income 292 468 421 698 668 273 Total Income 16841 22556 17441 19795 250
Slide 16: Market Summary
MARKET SUMMARY IPO 1991 FCCB Issue 2005 Stock Split 2006 Market Cap Approx USD 385 Million Free Float 45% BSE Code 500265 NSE Code MAHSEAMLES NSDL/CDSL–ISIN INE271BO1025 16
Slide 17: Shareholding & Capital Structure
SHAREHOLDING & CAPITAL STRUCTURE The Equity Share Capital of Rs. 353 Million Share Holding Pattern as on 30/09/2012 Highlights Public / Others Promoters NRIs 17.96% 55.43% Shares listed in NSE & BSE. 0.45% 52 Weeks High/Low at NSE INR 401.95 / 285.00. Book Value per equity share (FV Rs. 5/-) I
Slide 18: MSL Awards
MSL Awards… We are proud and honoured to bring home various Awards. “Winning is acknowledgement of our sincere efforts and the best practices that we follow” 18
Slide 19: Awards
Awards “Steel Pipe Manufacturer Of The Year” - Business Sphere Awards (2007-08) “Asia’s Top 200 Small & Mid size Companies, Best Under a Billion” - Forbes Asia “IMM Award for Excellence, 2007” - Asian Economic Community, IMM “India’s Top 500 Companies, 2006 & 2007” - Dun & Bradstreet America
Slide 20: Awards
Awards “Udyog Rattan Award” - Institute of Economic Studies “Export Excellence 2007-2008 Star Performer Award” - EEPC India “Certificate of Achievement 2009” “29th position amongst India’s 500 best-performing mid sized enterprises” - INC. India “STAR Performer Award – GAIL in 2011” 20
Slide 21: Awards
Awards “Business Sphere Award 2011” Dun & Bradstreet Corporate Award 2011 21
Slide 22: SWOT
SWOT Strength Globally competitive due to lower manufacturing cost and ability to meet stringent International Quality Standards. Strong Presence in Oil and Gas Sector for Seamless Pipes. 50-50 JV with Tenaris for Upstream Premium Threading Connections. Major Domestic Customers includes Cash
Slide 23: SWOT Contd
SWOT CONTD…. Weakness Limited capacity to cater for Bearing / Auto industries. Limited Capital investment in Oil & Gas Sector. Opportunities Massive domestic investment plans in Oil, Gas, Power & Steel sectors. Anti Dumping on Chinese pipes in EU, USA, Canada, Mexico & Brazil. Threat Dumpi
Slide 24: Market Background & Current Outlook
MARKET BACKGROUND & CURRENT OUTLOOK Demand for Seamless Pipes & Tubes from E & P activities continues to be affected due to dumping competition from Chinese Manufacturers. USA, Europe, Brazil, Colombia & Canada have imposed anti-dumping duties on Chinese pipes, which has created a favorable posi
Slide 25: Future Plans of MSL
FUTURE PLANS OF MSL Focusing on Niche products within Pipe business viz. Higher Dia ERW, Seamless, Coated Line Pipes, Drill Pipes & 13 Chrome Pipe. To fully exploit the export potential of SEAMLESS & ERW Pipes. To set up / to acquire a Backward Integrated Plant for making Steel Round Billets.
Slide 26: Sustaining Success: Key Points
Sustaining Success: Key Points 1. Innovation 2. Strong Financial Discipline 3. Cost competitive manufacturer 4. Right move at an early stage of cycle 5. Constant Creation/Addition of Value 6. Valued Customer Base / Relationships 7. Ability to contain both Capital and Operating Cost 26
Slide 27: Contacts
CONTACTS Ravi Gupta Group CFO, D.P. Jindal Group Tel. No.: 91-124-4624320 E-Mail : rgupta@mahaseam.com Sanjiv Gupta Senior Manager Tel. No.: 91-124-4624321 (Dir.) E-Mail : sanjiv@mahaseam.com Corporate Office : Jindal Corporate Centre Plot No.30, Institutional Sector-44, Gurgaon – 122002 (Haryana) T
Slide 28: Thanks!
Thanks!
Maharashtra Seamless — Investor Presentation (December 2012) on 6ix