KEI Industries Limited · NSE:KEI
KEI Industries — Investor Presentation (January 2017)
41 slides from KEI Industries's investor presentation, January 2017
Slide 1: KEI Industries Limited
www.kei-ind.com KEI INDUSTRIES LIMITED
Slide 2: Major Highlights
Major Highlights ET 500 dt 28.11.16 KEI ranking improve to 405 against previous ranking 423 and before that 469 CARE Ltd has upgraded long term rating A- (A minus) from BBB+ and short term rating A2+ from A3+ ICRA Ltd has assigned long term rating A- (A minus) and short term rating A2+ Durin
Slide 3: Structure
Structure Major Highlights About Us Key Strengths Industry Prospects Growth Drivers Business Overview Future Outlook Financials Share Holding Pattern
Slide 4: About Us
About Us Diversified and de-risked business model across : Headquarters at New Delhi, India. Markets: Domestic & International Manufacturing facilities at Bhiwadi Segments: Institutional & Retail (Rajasthan), Chopanki (Rajasthan) & Silvassa (D & NH) Sectors: Private & Public More than
Slide 5: Milestones
Milestones 1968 : Established as a partnership firm 1997 : Added another Plant at Bhiwadi for 1968 : Commenced manufacture of switch PVC /XLPE- LT power cables board cables for DOT 2001 : Commenced manufacturing of rubber 1985 : Commenced the manufacture of cables upto 11 kV Control, Instrumentation
Slide 6: Milestones
Milestones 2010 : Proud recipient of Business Super 2007 : Commenced New Project at Chopanki brand Award for Industry Validated and modernization / expansion at 2011 : Certification of ISO 9001:2008, OHSAS Bhiwadi & Silvassa unit 18001:2007, OHSAS 14001:2004 2007 : Received prestigious Corporate 201
Slide 7: Key Strengths
Key Strengths 1. Wide product basket comprising: Extra High Voltage cables up to & including 400 kV High & Medium Voltage cables Low Tension cables Control and instrumentation cables Specialty cables Rubber cables Winding, Flexibles and house wires Submersible cables, OVC/poly wrap
Slide 8: Key Strengths: Bhiwadi Unit
Key Strengths : Bhiwadi Unit 2. Manufacturing prowess evident from: World-class manufacturing facilities at Bhiwadi (Raj.), Silvassa (D&N H) and Chopanki (Raj.) CCV Line (Involving Dry Cure Dry Cool technology) For manufacturing HT Cables Up to 132 kV Sikora Online X-Ray Machine Used for Monitorin
Slide 9: Key Strengths: Chopanki Unit
Key Strengths: Chopanki Unit Troester’s CCV Line (Involving Dry Cure Dry Cool technology) For manufacturing EHV Cables Up to 220 kV In-house Testing Facilities for Testing EHV Cables
Slide 10: Key Strengths
Key Strengths • Equipped with an installed capacity of: • 1200 kms of EHV Cables ( 500 Kms increased) • 5700 kms of HT Cables • 73100 kms of LT Cables • 3600 Kms of Rubber Cable • 675000 km of Winding, Flexibles & House Wires ( 300000 Kms increased) • 4800 MT of Stainless Steel Wire • During 9M 2016
Slide 11: Key Strengths
Key Strengths 3. Commitment to quality Adherence to the most stringent quality standards laid down by Vindicating the KEI’s superior production process, technology and quality products 4. Strong research capabilities • Constantly enhancing product portfolio by investing in R&D • Results in niche p
Slide 12: Key Strengths
Key Strengths 5. Climbing up the value spectrum Commercial Production of EHV cable & 400 KV Cable under trial production Result in pre-qualifying KEI to participate in large utility tenders Firm impetus to its turnkey EPC business, which consumes significant portion of EHV cables & HT , LT Cab
Slide 13: Key Strengths
Key Strengths 7. Well entrenched distribution network The sales & distribution network at KEI covers all major metros, Tier I & Tier II cities to serve its esteemed customers Strong Order Book Position of Rs. 3100 Crore
Slide 14: Key Strengths
Key Strengths 8. Growing presence in exports Established extensive international footprints across 45 countries Strong order book for exports of Rs. 110 Crore
Slide 15: Industry Prospects
Industry Prospects • Global cable market reached USD 176 billion in 2013 demonstrating a CAGR of 4.7% from 2003 to 2013 • Cable market in India was estimated at USD 3 billion in 2013, increasing at a CAGR of over 10% • Size of High Voltage cable > 132 kV is estimated at USD 300 million • Size of MV
Slide 16: Industry Prospects
Industry Prospects Indian Power Sector Industrial Expansion • Additional capacity of 85000 MV of Power • 6-8% GDP growth momentum encouraging large capacities required in next 6 yrs investments in Industrial Sector • Major policy investment initiative to achieve this • Major expansion in Sectors lik
Slide 17: Industry Prospects
Industry Prospects Demand Assessment for 2008-17: Equipment Wise Power & Control Cables Cables Demand FY 2008-2017 Mode-wise Breakup Cablos - Usage Pattorn (KM) Conservative | Realistic Planned “Ger Trans, | Dist == = G81320V and abows TT Control 1,046,905 | 1,174,350 | 1,322,007] 16% 11% 73% san 1,
Slide 18: Growth Drivers
Growth Drivers Power & Infrastructure Infrastructure spending estimated at USD 1 trillion in the next five years Estimated FDI in Infrastructure sector is USD 250 billion while USD 750 billion is expected to be mobilized locally Demand for cables estimated at USD 3 billion (including EHV, MV a
Slide 19: Growth Drivers
Growth Drivers Industry Cables forms an integral part of every industrial capex Cable requirement accrues only after 50% of the industrial project is complete Demands are picking up with gradual recovery in expansion plans Building & Construction Demand for Urban Premium housing set to grow
Slide 20: Business Overview
Business Overview Retail EPC KEI Institutional EHV Exports
Slide 21: Business Overview: Institutional
Business Overview I. Institutional • Presence in this segment is marked by: • Ability to offer multi-products, with a multi-location presence • Well-entrenched marketing presence across all states • Ability to deliver products fast across the country from plants in North and West • Servicing custome
Slide 22: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Power Sector Clients Industrial Clients
Slide 23: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Refineries Energy Sector
Slide 24: Business Overview
Business Overview • Servicing prestigious clients across diverse sectors evident from: Fertilizer Sector Steel Sector
Slide 25: Business Overview: Foray into EPC space
Business Overview 1. Foray into EPC space • Commenced execution of EPC contracts • The main services offered by the company in the EPC segment includes execution of: Power transmission Electrical Electrical projects of 66kV EPC of EHV & HV balance of plant industrial to 400kV cables systems system f
Slide 26: Business Overview
Business Overview • The company’s key strengths in the EPC • Collaborations with Woosun Electric Co., Korea segment include: for power projects and Cobra Engineers, Spain for substation execution • Executing projects for some of the biggest • In house execution capabilities names in the industry: •
Slide 27: Business Overview
Business Overview • Servicing both the government and the private sectors • Average gestation period of such projects can range from 4 to 24 months • Aims to foray into other sectors like transmission line, infrastructure projects in the area of SEZ, MRT/Airport, EPC of cement plants, power plant an
Slide 28: Business Overview: Strengthening EHV segment presence
Business Overview 2. Strengthening EHV segment presence • Commercial production of EHV cables (ranging from 66kV to 220kV) started in November 2010, at Chopanki Plant, in district Alwar, Rajasthan which will further enhance in Nov 2016 upto 400 KV • With commercial production, KEI is only third comp
Slide 29: Business Overview
Business Overview • Foray into the EHV segment is aided by the KEI’s Technological collaboration entered into with Switzerland-based M/s Brugg Kabel AG • Brugg enjoys over 100 years of experience and ability to manufacture cables up to 550 kV • Collaboration has enabled KEI a faster entry into the E
Slide 30: Business Overview: Retail
Business Overview II. Retail – domestic wires • Phenomenal progress achieved by the company in the last 4 years • Developed a strong reputation as the “power behind the power” • Established a clear positioning of a “specialist cable manufacturer” • The three pillars of trust & quality, brand awarene
Slide 31: Business Overview: Exports
Business Overview III. Exports • Presence in over 45 countries across the globe with focus on the oil & gas and utilities segment • Offers wide range of cables viz. EHV (66kV to 220kV), MV (11kV to 66kV) and LV (< 11kV) cables • Competitive pricing and ability to offer customised solutions and speci
Slide 32: Future Outlook
Future Outlook New Presence across Enhanced Turnkey Industrial complete range of capacities EPC cable cables up to 220kV solutions Widest range of Focused approach Key Experienced power & in its domestic technological & trusted instrumentation house wires and tie-ups with brand name EHV segment Brug
Slide 33: Financials
Financials Rs. In Crores FY 11 FY 12 FY 13 FY 14 FY15 FY16 9M FY 17 Gross 1,254 1,853 1,812 1,753 2171 2498 2040 Revenues PBDIT 93 152 173 154 197 247 204 PBT 18 36 43 22 53 95 91 PAT 11 24 26 12 34 62 67 Net Fixed 312 318 311 314 302 357 400 Assets Net Worth 238 227 256 273 304 367 441 Total Debt 5
Slide 34: Financials
Financials Rs. In Crores Q1 Q2 Q3 Q4 Q1 Q2 Q3 (15-16) (15-16) (15-16) (15-16) (16-17) (16-17) (16-17) Revenues 560 657 601 681 598 676 766 Gross PBDIT 56 59 62 70 57 69 78 PBT 17 23 23 33 24 30 37 PAT 12 15 15 20 17 23 27 Gross Fixed 454 464 481 529 563 580 592 Assets Total Debt 488 499 531 498 576
Slide 35: Financials
Financials Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales (15-16) (15-16) (15-16) (15-16) (16-17) (16-17) (16-17) Domestic 298 387 356 373 302 326 429 Dealer 174 167 175 205 175 206 183 Export 47 58 28 58 84 103 116 Total 519 612 559 636 561 635 728 Product wise LT Cable 221 238 229 275 256 293 330 HT Cable 82 124
Slide 36: Financials
Financials Rs. In Crores Revenues PBDIT 3000 248 2498 250 2500 2171 197 200 173 2000 1853 1812 1753 152 154 1500 1254 150 93 1000 100 500 50 0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 PBT PAT 95 100 80 62 80 60 53 60 43 34 36 40 24 26 40 18 22 11 12 20 20 0 0 2011 2012 2013 2014
Slide 37: Financials
Financials Productwise Net Sales Rs. In Crores 323 134 93 EHV LT POWER/ RUBBER HT CABLE 377 964 HW/WW SSW EPC 435 Revenue Mix 8% 31% Export Retail 61% Institutional
Slide 38: Financials
Financials Rs. In Crores Net Fixed Assets Net worth 357 360 367 400 340 350 304 273 318 300 256 312 311 314 238 227 320 302 250 300 200 150 280 100 50 260 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Debt 5 248 Bank Borrowing 245 Term Loan Others
Slide 39: Future Growth Driver
Future Growth Driver F.Y. 2017-18 Additional turnover of approx Rs. 125-150 Crore from Retail market, approx. Rs. 200-250 Crore from EPC & Rs. 100 Cr from EHV Cable apart from normal growth in existing range of cable. Expansion of House Wire and Flexi Wire for Retail & Distributor completed Ex
Slide 40: Shareholding Pattern
Shareholding Pattern % Shareholding 21.8% Promoter 49.0% Institutions 6.1% Bodies Corporate Indian Public 23.0%
Slide 41: Thank You !
www.kei-ind.com Thank You !
KEI Industries — Investor Presentation (January 2017) on 6ix