Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Investor Presentation (June 2014)
66 slides from Carborundum Universal's investor presentation, June 2014
Slide 1: Investor Presentation
MAKING MATERIALS WORK FOR MAN ABRASIVES LECTRO MINERALS ERAMICS EPs ge. ne . ow eS SS a _ REFRACTORIES ial a oe)
Slide 2: Disclaimer
DISCLAIMER The communication may contain statements relating to future business developments, company’s performance and economic performance that may constitute ‘forward looking statements’. While these forward looking statements represent the company’s judgments and future expectations, a number of
Slide 3: Murugappa Group: An Overview
Murugappa Group An Overview CUMI @ 2014 3
Slide 4: Murugappa Group
MURUGAPPA GROUP INR 243 Billion Conglomerate One of the largest family promoted, professionally managed, diversified business groups CUMI @ 2014 4
Slide 5: The Philosophy we cherish
The Philosophy we cherish The fundamental principle of economic activity is that No man you transact with will lose; then you shall not. CUMI @ 2014 5
Slide 6: Murugappa Group Today
Murugappa Group Today ~ INR 243 Billion Conglomerate One of the largest family promoted, professionally managed, diversified business Groups… CUMI @ 2014 6
Slide 7: The Spirit of the Murugappa Group
The Spirit of the Murugappa Group CUMI @ 2014 7
Slide 8: Corporate Social Responsibility
Corporate Social Responsibility AMM Foundation 1% of PAT from Group companies to AMM Foundation 4 Schools, a polytechnic; approximately 11,000 students 4 Hospitals - over 8,00,000 patients treated last year Scholarships for needy meritorious Students Research centre for technology for the rural & ur
Slide 9: Carborundum Universal
Carborundum Universal CUMI @ 2014 9
Slide 10: Birth Of CUMI
Birth Of CUMI • Incorporated as a joint venture 1954 between Carborundum Company USA, Universal Grinding Wheel Company, UK and the Murugappa, CARBORUNDUM UNIVERSAL India USA UK • Acquired a coated abrasives facility from Ajax products Pvt Ltd • Bonded abrasives facility set up in Chennai India CUMI
Slide 11: Business Portfolio
Business Portfolio Sales Share PBIT Share CUMI – FY 14 Revenue :Rs. 20.9 bn EBIT :Rs. 1.8 bn Capital Employed :Rs. 19.9 bn Abrasives Ceramics Electro-minerals Revenue : Rs 8.6bn Revenue : Rs 4.7 bn Revenue : Rs 8.1bn EBIT : Rs 0.6 bn EBIT : Rs 0.6 bn EBIT : Rs 0.8bn Capital Employed : Rs 6.1bn Capit
Slide 12: CUMI Consolidated
CUMI Consolidated 30 plants 7 Countries Over 4850 plus Employees. 2000 plus employees outside India Consolidated Gross Sales Rs 2206 cr (FY 13-14 ) Market Cap ~ Rs 3000 cr. Products being sold in over 50 countries CUMI @ 2014 12
Slide 13: CUMI World Wide - By Business Verticals
CUMI World Wide- By Business Verticals RUSSIA Abrasives Ceramics Electro minerals USA CHINA Abrasives Abrasives Ceramics THAILAND Abrasives S. AFRICA EUROPE UAE INDIA AUSTRALIA TRI Foskor Zirconia Electro Minerals Electro Minerals Abrasives Abrasives Abrasives Ceramics Electro minerals Ceramics Cera
Slide 14: Vision/Mission
OUR VISION/MISSION We will be an Admired Company in VISION Abrasives & Technical Ceramics, driven by Innovation, to create Stakeholder Wealth. MISSION Become one of the largest Abrasives (including Super Abrasives) / Technical Ceramics in the Company in the World by 2020. CUMI @ 2014 14
Slide 15: Abrasives
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Slide 16: Abrasives – Product Range
ABRASIVES – Product Range Thin wheels A Strong Regional Coated Abrasives Player with the complete Range of products. Bonded Super Abrasives Construction Products Metal Working Fluids Power tools CUMI @ 2014 16
Slide 17: Abrasives
ABRASIVES • Abrasives are made of hard, tough and wear resistant materials used to shape or finish a work-piece. Abrasives are used for diverse applications ranging from material removal, polishing and finishing in multiple industries like automobile, auto-ancillaries, fabrication, construction and
Slide 18: Abrasives - Application
ABRASIVES - Application Bonded Products and other applications …. For Rough Grinding and Cutting applications:- General Engineering Fabrication Foundry and other applications …. Rolling Mills Projects Thin Wheels and other applications …. Coated Products CUMI @ 2014 18
Slide 19: Abrasives - Application
ABRASIVES - Application and other applications …. Wood working Metal working Construction Power Tools Rotary Tools Creep Feed grinding Cutting Tool industries Notch and Slot grinding Printing and Paper Roll grinding Tungsten Carbide Roll grinding and other applications …. Ceramic and Tile grinding C
Slide 20: Abrasives - Market & Strategy
ABRASIVES - Market & Strategy GLOBAL Market – 12.9 Billion $ India – $ 0.49 billion Product wise Region wise • Our Sales in FY 13 is $ 145 million ; Market Share ~ 1-2% globally • In India, our share stands at 23-25%, highest being in Bonded @ 38-40% • Abrasive being a ‘LOCAL’ business. We are curre
Slide 21: Abrasives – Facilities
ABRASIVES – Facilities Manufacturing Marketing & Distribution Thiruvottriyur, Chennai Hosur, Tamil Nadu Sriperumbudur, Chennai Uttarkhand CUMI Middle East India VAW, Russia CACCL, China Overseas Venlo Netherlands CUMI USA Wendt, India Wendt, Thailand/CME Sterling Abrasives, Gujarat Subs / JV’s CUMI
Slide 22: Abrasives – Performance
ABRASIVES – Performance Rs. Mil Net Sales - Annual -2.5% 6.3% +18.7% +26.7% + 6.4% +3.6% + 29% + 24.7% % sales in India 87% 83% 75% 70% 78% 74% 74% 74% 73% CUMI @ 2014 22
Slide 23: Industrial Ceramics
INDUSTRIAL CERAMICS CUMI @ 2014 23
Slide 24: Industrial Ceramics
INDUSTRIAL CERAMICS Product Range Wear Protection IC Engineered Metallized Ceramics Ceramics CUMI @ 2014 24
Slide 25: Industrial Ceramics
INDUSTRIAL CERAMICS • A ceramic is an inorganic, non metallic solid prepared by the action of heat and subsequent cooling. CUMI is into Alumina based Industrial ceramics. There are broadly three product categories, which CUMI is into – Wear Resistant products (Tiles): These are weldable and pastable
Slide 26: Industrial Ceramics Applications
INDUSTRIAL CERAMICS Applications Power Generation − Coal Mill (Inner Cone, Multiport Outlet Valve, Mill Discharge Valve, Mill Inner Dia Lining, Orifices, Ventury Vanes) − Bends (Tranisitions & Y- Pieces) − Ash Handling (Bends & Slurry Pipes) Wear Resistant Products Cement Industry – Coal and Raw Mil
Slide 27: Industrial Ceramics Metz Plant
INDUSTRIAL CERAMICS Metz Plant CUMI @ 2014 27
Slide 28: Industrial Ceramics – Market & Our Standing
INDUSTRIAL CERAMICS – Market & Our Standing GLOBAL Market for Advanced CERAMICS Current Standing Point • Out of the total $ 13+ billion market, Alumina based Ceramics • Over 6800 tons tiles and 1 million plus cylinders material is around ~ 5+ billion. capacity in India Alumina based Our Market Milli
Slide 29: Moving up the value chain
INDUSTRIAL CERAMICS – Future Strategy • Currently we are in the business of Alumina based Ceramics. We constantly look at Products Competing Criteria extending offerings in that range and target newer industries. Technology, Process Metz Cylinders Capability Moving up the value chain • Move up the V
Slide 30: Super Refractories
SUPER REFRACTORIES CUMI @ 2014 30
Slide 31: Super Refractories – Product Range
SUPER REFRACTORIES– Product Range CUMI Refractory Products Fired products Monolithics Precast Shapes Conventional Silicon Carbide Dense (CUMIFRAC) Castables (CUMICRETE) Insulation Nitride bonded Castables Silicon Carbide (CUMICRETE Light Weight) Low cement Mulite (CUMILITE) castables (CUMIHICAST & C
Slide 32: Super Refractories
SUPER REFRACTORIES • Refractory is any material that can withstand high temperature. CUMI is into High Alumina, Silicon Carbide, Zirconia based refractories which are capable to withstand very high temperature:- − Fired Refractories: Is a block of refractory ceramic material used in lining furnaces,
Slide 33: Super Refractories - Application
SUPER REFRACTORIES - Application Ceramic Industries Chemical Process Industries Non – Ferrous Insulators Carbon Black Aluminum Sanitaryware & Tableware Fertilizer Copper Abrasives Petro-Chem. / Refinery Zinc Wall Tiles Refractories Cement Iron & Steel Electro Ceramics Power Generation Sponge Iron (D
Slide 34: Refractory Market
REFRACTORY MARKET World Refractory Demand ($30 billion) by World Refractory Demand ($30 billion) by Regions Industry Global Refractory market - $30 Billion CUMI @ 2014 34
Slide 35: Super Refractories – Market & Strategy
SUPER REFRACTORIES – Market & Strategy Current Standing Point • The Global size of Refractory business could be estimated to • Over 11,000 tons Fired capacity in India, the extent of ~ $ 30 billion Russia and SA. Around 32,000 tons • Refractory is a ‘LOCAL’ business. 90% of our sales are in monolith
Slide 36: Super Refractories
SUPER REFRACTORIES Ability to manufacture complex shapes and meet all surge requirements CUMI @ 2014 36
Slide 37: Ceramics (Industrial Ceramics and Refractories) - Performance
CERAMICS (Industrial Ceramics and Refractories)- Performance Rs. Mil Net Sales - Annual +9.3% -5.7% + 31% + 21% + 11.1% + 17.4% + 26.8% +20.4% % sales in India 44% 43% 53% 54% 53% 56% 51% 45% 43% CUMI @ 2014 37
Slide 38: Electro Minerals
ELECTRO MINERALS CUMI @ 2014 38
Slide 39: Electrominerals – Product Range
ELECTROMINERALS – Product Range Brown Fused Alumina White Fused Alumina Silicon carbide Zirconia Specialty minerals Bonded Refractory Silicon wafer Diesel Abrasives slicing Particulate Filter Coated Metallurgical Investment Floor Abrasives casting Laminates Surface Engineering Refractories Energy &
Slide 40: Electrominerals - Application
ELECTROMINERALS - Application Refractory Bonded Abrasives Coated Abrasives Dermabrasion Semi Conductor Lapping Laminates Pressure Blasting Photovoltaic Plasma Spray Particulate Filters Metalurgical CUMI @ 2014 40
Slide 41: Electrominerals – Facility
ELECTROMINERALS – Facility 1 2 1 Bauxite mines & calcination 3 4 2 Silicon carbide, 5400 tpa 3 Fine powders, 7200 tpa 5 4 Fused alumina ~23000 tpa 5 12 MW Hydel power, Maniyar CUMI @ 2014 41
Slide 42: Electrominerals – Overseas Facility
ELECTROMINERALS – Overseas Facility VAW - Russia VAW Russia – Silicon Carbide, 70,000 tpa Foskor Zirconia – Fused Thukela Refractory Foskor Zirconia Zirconia, 10,000 tpa TRI – 22k tpa fusion facility CUMI @ 2014 42
Slide 43: Electro Minerals – Global Capacity & Our Standing
ELECTRO MINERALS – Global Capacity & Our Standing Global Capacity and Our Share Current Standing Point • Fused Zirconia • Established leadership in Russian and Indian − Global capacity of Fused Zirconia ~ 75k tons per market annum. − With 10k tons per annum, we are the third largest in the • Locatio
Slide 44: Newly commissioned Bubble Plant in FZL
Newly commissioned Bubble Plant in FZL CUMI @ 2014 44
Slide 45: Electro Minerals – Future Strategy
ELECTRO MINERALS – Future Strategy Innovation Value Pyramid CUMI @ 2014 45
Slide 46: Electro Minerals – Future Strategy
ELECTRO MINERALS – Future Strategy Innovation Value Pyramid C11 Nano synthesis Level 4 – Nano Powders • Alternative application in SiC apart from Photovoltaic C10 • Synthetic Brown Alumina in the market C9 Level 3 – Sol gel Ultrafine Chemical processing powder Ceramics Sub micron powder • Build scal
Slide 47: Electro Minerals - Performance
ELECTRO MINERALS - Performance Net Sales - Annual Rs. Mil -8% 21% +22% +25% +13% +97% +15.9% +21.7% CUMI @ 2014 47
Slide 48: Financials
murugappa FINANCIALS CUMI @ 2014 >
Slide 49: Revenue Growth
Revenue Growth -1.3% +7.8% +23% 19685 19424 20939 +25% +7.5% 16007 11930 12823 +31% Rs. In Million +28% +46% 9093 4865 6210 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 CUMI @ 2014 49
Slide 50: International Revenue share (%)
International Revenue share (%) 60 51 52 45 44 44 48 50 40 Percentage 31 30 20 13 13 10 0 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 CUMI @ 2014 50
Slide 51: Income Statement
Income Statement Income Statement Rs. Million 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Net Sales 4865 6210 9093 11930 12823 16007 19685 19424 20939 Growth % 46% 32% 7.5% 25% 33% -1% 8% EBITDA 1075 1390 1553 1988 2435 3130 4016 2502 2736 EBITDA % 22.1% 22.4% 17.1% 16.7%
Slide 52: Segmental Performance
Segmental Performance Net Sales (Rs. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Mil) Abrasives 3214 3880 5006 5325 5518 6990 8304 8093 8599 Ceramics 1130 1734 2199 2582 2871 3476 4565 4991 4707 Electro minerals 681 830 2153 4245 4789 5979 7272 6688 8099 Inter segment -31
Slide 53: Performance Ratios
Performance Ratios EBITDA % 19.6 20.4 22.4 19.0 17.1 16.7 12.9 13.1 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 PBIT % 19.2 16.4 17.5 15.8 13.8 13.7 9.2 8.7 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 CUMI @ 2014 53
Slide 54: Performance Ratios
Performance Ratios Debt Equity Ratio 1.02 0.85 0.74 0.57 0.46 0.41 0.41 0.37 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 Asset Turns ROCE 1.40 1.31 1.24 1.34 1.71 1.34 1.31 24.6 17.8 18.1 21.8 27.1 1.18 16.3 12.1 11.5 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 06-07 07-08 08-09 09-10 10-11
Slide 55: Market Performance Ratios
Market Performance Ratios Dividend Payout Ratios CUMI @ 2014 55
Slide 56: Balance Sheet
Balance Sheet Rs. Mil CUMI @ 2014 56
Slide 57: Cash Flow
Cash Flow Rs. Mil 2013-14 2012-13 2011-12 Net Profit before Tax 1543 1519 3227 Depreciation 911 711 569 Change in Working Capital (774) 49 (736) Others (419) (327) (700) Net Cash Flow from operating activities [A] 1261 1952 2360 Capital Expenditure (985) (2143) (1695) Others 39 97 714 Net cash (used
Slide 58: Investor Friendly Company
Investor Friendly Company • 42.2% held by the Murugappa Group, 33.8% held by FII’s, MF, PE, Insurance Cos • 60 years of unbroken track record of Profit and Dividend • Six Bonus Issues since inception – 89% of the current Equity is by way of capitalization of Reserves • Growth over the years entirely
Slide 59: In a tight market, we continued with our Sales Development Programs
In a tight market, we continued with our Sales Development Programs Abrasives’ Sub Dealers Meet 10 Mega One Day Shop Sale in Bangalore CUMI @ 2014 59
Slide 60: 'Navaratna' Dealer Celebrations
‘Navaratna’ Dealer Celebrations CUMI @ 2014 60
Slide 61: Exhibitions/Conferences
Exhibitions/Conferences UNITECR 2013 - Unified International Technical Conference on Refractories CUMI @ 2014 61
Slide 62: Exhibitions/Conferences
Exhibitions/Conferences CUMI @ 2014 62
Slide 63: Exhibitions/Conferences
Exhibitions/Conferences Exhibition Stall, Grindtech 2014 Exhibition Stall, Grindtech 2014 CUMI @ 2014 63
Slide 64: Exhibitions/Conferences
Exhibitions/Conferences Power Gen ASIA 2013 @ Bangkok
Slide 65: CSR Initiatives
CSR Initiatives Contributed Sweaters @ Home for Mentally Challenged at Ennore CUMI @ 2014 65
Slide 66: CUMI @ 2014
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