Elantas Beck India Limited · NSE:ELANTAS
Elantas Beck India — Investor Presentation (January 2014)
42 slides from Elantas Beck India's investor presentation, January 2014
Slide 1: ELANTAS Beck India Ltd. Corporate Presentation
ELANTAS Beck India Ltd. Corporate Presentation January 2014
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ELANTAS Beck India Limited (the “Company”) solely for your information and for your use and may not be taken away, distributed, reproduced or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your orga
Slide 3: Overview
Overview 1 Company Highlights 2 Segment Details & Key Financials 3 Key Investment Highlights 4 Strategy Overview
Slide 4: Company Highlights
Overview 1 Company Highlights
Slide 5: ELANTAS Beck India: Overview
ELANTAS Beck India: Overview Shareholding Pattern (Sept 2013) Incorporated in 1956 as Dr. Beck & Company India Ltd., ELANTAS Beck India DII, 3.52% Ltd. (EBIL) is present in India for 57+ years Others, Acquired by World’s leading company in Liquid Electrical Insulation ELANTAS 18.05% Gmbh, part o
Slide 6: History & Milestones
History & Milestones 1956 1961 1967 1981 1989 1997 2003 2006 2007 2009 Start of Business ALTANA AG Incorporated on March ALTANA Electrical 15, 1956 as “Dr. Beck Insulation & Company India Ltd.” GmbH acquired the worldwide electrical insulation products business Name change of Schenectady Name change
Slide 7: Geographic Presence
Geographic Presence Legend Head Office Manufacturing Sites Regional Offices New Delhi Kolkata Ankleshwar, Gujarat R&D Facility Pimpri, Maharashtra Manufacturing Facility, Ankleshwar, Gujarat Bangalore Manufacturing Facility, Pimpri, Maharashtra Corporate Office, Pimpri, Maharashtra 7
Slide 8: Business Segments & Product Lines
Business Segments & Product Lines Primary Insulation Secondary Insulation Electronic and Engineering • Wire enamels for the primary insulation of • Secondary insulation of winding wire after Materials magnet wire it is mounted in a device (electric motor, It comprises two major product groups – • Ma
Slide 9: Value Chain
Value Chain Secondary Insulation Electronic & Engineering Materials Raw Primary Magnet Wire Equipment Maintenance/ OEMs Materials Insulation Producers Producers Repair Our products are applied in different parts of the value chain of the electrical industry 9
Slide 10: Products and Applications
Primary Insulation, Secondary Insulation, Electronic & Engineering Materials Products and Applications EBIL produces insulating materials for the electrical and electronics industry. Applications are found in electric motors, household appliances, cars, generators, transformers, capacitors, TV sets,
Slide 11: Plant Details: Pimpri, Maharashtra
Plant Details: Pimpri, Maharashtra Pimpri, Maharashtra Date of Inception 1956 Products Manufactured Primary Insulations, Secondary Insulation, Electronics & Engineering Materials and Intermediates Installed Capacity 7,400 MT (2,480 MT for Wire Enamels and Impregnating Varnishes and 4,920 for Synthet
Slide 12: Plant Details: Ankleshwar, Gujarat
Plant Details: Ankleshwar, Gujarat Ankleshwar, Gujarat Date of Inception 1981 Products Manufactured Primary Insulations, Air Drying Varnishes & Intermediates Installed Capacity 16,820 MT (16,320 MT for Wire Enamels and Impregnating Varnishes and 500 MT for Synthetic Resins) No. of Employees 47 (23 M
Slide 13: Strong R&D Set-up
Strong R&D Set-up Established in 1965, A separate Underwriter’s In 2011, a new R&D lab In 2012, a new R&D lab department moved to an Laboratory (UL) was established to cater focused on PI Product independent building in accredited R&D Lab was to E&EM business line in Line was established at 1976 est
Slide 14: Certifications and Awards
Certifications and Awards 1996 1997 2009 Certifications EN ISO 9001: 2008 QMS EN ISO 14001: 2004 EMS EN ISO 18001: 2007 OHSAS Successfully integrated into one system in 2009: IMS Present Accreditations: Quality System (ISO 9000) Environment Management System (ISO 14000) Occupational Health & S
Slide 15: Price Movement: Key Raw Materials
Price Movement: Key Raw Materials Raw materials are 170 White Spirit Naptha Cresol Phenol mainly polymer pre- cursors (MDA, TMA, MDI) and solvents (cresol, phenol, NMP) 150 for resin synthesis Top 10 raw materials 130 account for 55% of total Important suppliers are 110 BASF, Merisol, Dow Chem
Slide 16: Parent Overview: Elantas Gmbh
Parent Overview: Elantas Gmbh Segment-wise Revenue Split Parent Background Electronic Engineering ELANTAS GmbH, holding company of the Division Electrical Insulation within Materials, 17% the ALTANA Group, is the Promoter of ELANTAS Beck India Ltd. ALTANA is a global specialty chemicals company wi
Slide 17: Part of Global Specialty Leader: ALTANA Group
Part of Global Specialty Leader: ALTANA Group Group Business Entities Business Divisions Converting Paint Additives Coatings Primary Insulation Specialties Secondary Plastic Additives Graphic Arts Graphic Arts Insulation Electronic & Industrial Cosmetic & Product Portfolio Engineering Applications p
Slide 18: Global Footprint
Global Footprint Headquarters ELANTAS Beck Gmbh, ELANTAS Beck, ELANTAS Production, Sales U.K. Germany Headquarters, Sales office Germany ELANTAS Tongling, China ELANTAS PDG, USA ELANTAS Zhuhai, China ELANTAS Isolantes Elétricos do Brasil, ELANTAS Italia, ELANTAS Beck Brazil Italy India, India With p
Slide 19: Segment Details & Key Financials
Overview 2 Segment Details & Key Financials
Slide 20: Primary Insulation Segment
Primary Insulation Segment Description To manufacture enameled wires which are further used in transportation, automotive, White goods, Consumer Goods HVAC, Motors & Transformers, Power Generation & Distribution, Lighting, Aerospace/ Defense Market Size & Trends Sales Breakdown Market Size & Growth
Slide 21: Secondary Insulation Segment
Secondary Insulation Segment Description Secondary insulation or impregnation involves replacing air trapped inside the wire windings with insulation material; it is used in manufacturing Motors, Transformers, used in Industrial Drives, Power generation & distribution, Automotive, HVAC, Lightning, e
Slide 22: Electronic and Engineering Materials
Electronic and Engineering Materials Description For a range of electrical equipment's such as sensors, instrument transformers, induction systems, and printed wiring boards, additional properties are desired such as improved heat dissipation, much greater mechanical stability at high vibrational fo
Slide 23: Key Financials
Key Financials Net Operating Income (INR MN) EBITDA (INR MN) 2008 1,810 2008 322 2009 1,949 2009 498 2010 2,514 2010 521 2011 2,668 2011 410 2012 2,732 2012 419 2013 (9M) 2,279 2013 (9M) 392 Profit After Tax (INR MN) Margins (%) 30% 2008 196 26% 25% 2009 316 21% 20% 18% 17% 16% 15% 2010 324 15% 15%
Slide 24: Key Financials
Key Financials Return on Equity Return on Invested Capital 131.2% 25.0% 23.2% 130% 23.0% 21.5% 21.0% 19.7% 110% 19.0% 18.0% 17.0% 90% 15.0% 13.3% 13.0% 70% 56.2% 11.0% 9.0% 50% 44.9% 7.0% 34.9% 34.2% 5.0% 30% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Dividend Payout Cash & Liquid Investments
Slide 25: Key Investment Highlights
Overview 3 Key Investment Highlights
Slide 26: ELANTAS Beck India Strongly Positioned to Achieve Growth
ELANTAS Beck India Strongly Positioned to Achieve Growth Strong Parentage Significant Barriers to Entry • Part of ALTANA Group, global leader in specialty • ELANTAS is the global market leader in the liquid chemicals insulation segment • Global market leader in all the operating segments • Due to th
Slide 27: Strong Industry Growth Expectations
Strong Industry Growth Expectations The demand for Primary/ Secondary Insulation and Electronic and Engineering Materials is a derived demand from several industries including Electronic Equipment's, Power Segment and Automotive Component Industries All these industries are in high growth trajec
Slide 28: ELANTAS Knowledge & Experience
Strong Parentage ALTANA AG, global Strong Lineage leader in specialty chemicals, is the ultimate parent Products made by Experience Global Expertise & Group employee ALTANA Group are strength of 5,300+ sold in over 100 The Group business is countries worldwide spread across 4 Besides India, Network
Slide 29: Significant Barriers to Entry
Significant Barriers to Entry High-tech/Niche Focus • Well defined niches with very specific performance requirements Strong R&D Investments • Successful players need to have application technology capabilities close to their customers • Important technologies patent protected Technology • Underwrit
Slide 30: Leading Position in Key Markets
Leading Position in Key Markets Market Leader in all Operating Segments Primary Insulation •Market Leader in Primary Insulation segment in India with ~38% share (Sales-wise) and ~40% market share in FY12; it has grown from 37% from FY11 (volume-wise) •Rest of the market is fragmented with no other d
Slide 31: Technology Leadership
Technology Leadership • Part of a global leader in liquid Global Market Leader insulation material manufacturing Localization per customer • The products are suitably adopted and modified per customer requirements in requirements India • India R&D team leverages on the Global R&D support capabilitie
Slide 32: Strong Focus on Research & Innovation
Strong Focus on Research & Innovation Decentralized Research Structure Although the fundamental product needs are the same, local market requirements can differ between regions. This is due to different worker safety and environmental regulations, climatic conditions, norms, etc. It is essential to
Slide 33: Innovation in Application
Innovation in Application Special Nanomaterials for Monomer free application: Wind high performance unsaturated Turbines Polymers polyester resin As global technology leader for impregnating ELANTAS has extensively ELANTAS has developed resins, ELANTAS supplies investigated which new or unsaturated
Slide 34: Established Client Relationships
Established Client Relationships Early Mover Leveraging Established Sales Strong Market Advantage Global Research Channel Knowledge & •Present in India since 56 & Technology •Strong local sales Relationships years Expertise representation in •Over the years, ELANTAS •First MNC to enter strategically
Slide 35: Management Expertise
Management Expertise Mr. Ravindra Kumar Managing Director Mr. Sharadkumar Shetye Over 17 years of experience in leadership roles with Asian Director- Manufacturing Paints, Huntsman and BASF. His last assignment was with Over 41 years of experience across Project Huntsman in Brussels, where he was wo
Slide 36: Strategy Overview
Overview 4 Strategy Overview
Slide 37: Strategy Overview
Strategy Overview Core Strategy • Retain overall market share in the electrical insulations segments • Grow market share in the highly specialized Electrical Insulations applications Focus on Electrical Products and Engineering Segment • Attain market leadership in electrical & engineering products
Slide 38: Focus on Electronic & Engineering Material Segment
Focus on Electronic & Engineering Material Segment Increase Reach • To be able to cater to a • Introduce local Key Account broader section of Management customers and improve • Target Auto Electrical market share • Improve market position in Industry needs Northern and Southern • Introduce flexible
Slide 39: New Product Innovation & Introduction
New Product Innovation & Introduction Focus on New Product Innovation & Introduction Continue to focus on Widen Product Focus on R&D and Innovation Offering through Customization further leveraging Global R&D •Increase R&D team •Widening of Product •Offer customized strength Portfolio through produc
Slide 40: In-Organic Growth Plans
In-Organic Growth Plans Growth of ELANTAS through acquisitions Year of Acquisition Company Country 1988 Wiedeking Germany 1993 Dea Tech Italy 1994 PPG Wire Enamels Italy 1995 Rhenatech Germany 1996 P.D. George US 1998 Camattini Italy Siva Italy Tongling Siva China 2000 Phelps Dodge Wire Enamels US S
Slide 41: Focus on Expanding Margins
Focus on Expanding Margins Focus on Input Costs • Enter into global purchasing contracts • Develop alternative sources of input supplies • Introducing countertypes/ alternatives • Reduce packaging cost through increasing bulk procurement Improvement in Present Cost Structure • Comprehensive analysis
Slide 42: Thank you for your attention.
Thank you for your attention.
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