Bodal Chemicals Limited · NSE:BODALCHEM
Bodal Chemicals — Investor Presentation (March 2020)
29 slides from Bodal Chemicals's investor presentation, Mar 5, 2020
Slide 1: Bodal Chemicals Ltd. – Corporate Presentation filing letter
Bodal Chemicals Ltd. COLOURS, INTEGRATION. INNOVATION. By Online Submission Sec/19-20/220 Date: 05/03/2020 To, To, The General Manager, The General Manager, BSE Ltd. National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, Rotunda Building, P.J. Tower, Plot no. C/1, G Block
Slide 2: Corporate Presentation March 2020
Corporate Presentation March 2020
Slide 3: Forward Looking Statements
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Bodal Chemicals’ future business developments and economic performance. While these
Slide 4: Index
Index NO PARTICULARS SLIDE NUMBER 1 Company Profile 4 2 Environmental Facilities 9 3 Current Situation in China 12 4 Advantage Bodal 14 5 The Way Forward 19 6 Quarterly Production Data 24 7 Reward and Recognition 26 8 CSR Initiatives 27 Corporate Presentation March-2020 3
Slide 5: Company Profile
Company Profile Corporate Presentation March-2020 4
Slide 6: History of Bodal Chemicals Ltd (Bodal)
History of Bodal Chemicals Ltd (Bodal) ❖ Bodal was incorporated in 1989 by Mr. Suresh Patel, a first-generation entrepreneur by setting up a small Vinyl Sulphone plant at Vatva - Ahmedabad (Gujarat). ❖ Currently, Bodal is one of the globally leading, integrated Dyestuff companies from India. ❖ At pr
Slide 7: Bodal- Milestones
Bodal- Milestones Notes: Units are manufacturing sites 2006 2016 Unit Nos. are as per current numbering of sites Listed on BSE-reverse merger Amalgamation: with Dintex Dye Chem (Unit I) Bodal Agrotech, LABSA, Unit X (Zero Discharge) 2006 Zero Debt Acquired Unit IV 2017 2007 Acquired 70%: SPS Process
Slide 8: Manufacturing Capacities
Manufacturing Capacities Annual Contribution Capacity & Highlights (% Revenue, 9MFY20) % Utilization, 9MFY20 Basic 11% 226,000 MT* • Captive Power Plant and Steam generation Chemicals 86% • Centrally located, latest upgraded manufacturing facilities • Produces about 12 products • Advance technology
Slide 9: Integrated Business Model
Input Materials – part/full in-house Integrated Business Model Input Materials – external Bodal Chemicals Products End use industries End Use Input Materials Basic Chemicals Dye Intermediates Dyestuff Trion Chemicals Industry Water Reactive Dyes Textiles Para Nitro Aniline Ice Vinyl Sulphone Beta Na
Slide 10: Environmental Facilities
Environmental Facilities Corporate Presentation March-2020 9
Slide 11: In house Environmental Facilities
In house Environmental Facilities In-house Facilities at Bodal Effluent Treatment Multiple Effect Effluent Spray Dryer Brine Treatment Plant Plant (ETP) Evaporator Plant (MEEP) Plant (ESDP) 1. Treats low load waste water 1. Treats high load waste water 1. Bodal installed world’s first 1. Treats high
Slide 12: Environmental Facilities at different plants
Environmental Facilities at different plants Common Treated Effluent Zero Waste Discharge Effluent Multiple Effect Effluent Spray Solid Waste Effluent Treatment Discharge Access Plant Location Site (Solid + Liquid + Treatment Evaporator Dryer Plant Incinerator Plant (ETP) VECL Cala Air) Plant, (CETP
Slide 13: Current Situation in China
Current Situation in China Corporate Presentation March-2020 12
Slide 14: Current Situation in China
Current Situation in China ❖ There has been a lockdown in Wuhan city (capital of Hubei province) in China since around a month due to coronavirus epidemic. At present the lockdown has been extended till 10th March 2020. ❖ Hubei has a large chemical industry which have been impacted by this lockdown
Slide 15: Advantage Bodal
Advantage Bodal Corporate Presentation March-2020 14
Slide 16: Bodal's Competitive Edge
Bodal’s Competitive Edge ✓ Strong and experienced management team with continuous focus on growth and increase in shareholder’s value ✓ Unique and unparalled integrated business model leading to cost competitiveness and protection against commodity cycle ✓ Strong customer relationship across the glo
Slide 17: Sustainability
Sustainability Challenges Actions Results Market Share Backward Environmental Shut down of Growing into & Forward Dyestuff norms units dyestuff integration 3% Global Dyestuff Forex Low cost Product 13% Indian imports Exports fluctuation quality Dye Intermediates 6% Global Volatile raw Volatile Finan
Slide 18: Customer Relationship
Customer Relationship Domestic Customers International Customers India Unidye S.A. Strong long term Relationships with top Domestic and International Customers Corporate Presentation March-2020 17
Slide 19: Global Revenues
Global Revenues Rising Share of Exports in Total Revenues* Share of Exports in Total Dyestuff Revenues* FY17 FY18 FY19 9MFY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 29.5% 30.2% 43.9% 46.1% 52.5% 62.1% 66.9% 69.6% Bodal Exports ~45% of its sales to 150+ customers in 45+ countries Corporate Presentation March-20
Slide 20: The Way Forward
The Way Forward Thriving for increase in profitability and market share Corporate Presentation March-2020 19
Slide 21: Capacity Additions (Dyestuff)
Moving towards Global Dyestuff Player Higher Dyestuffs Revenues Capacity Additions (Dyestuff) Further Business Integration Strong Brand Expanding into Building New Geographies Stronger Customer Relationship Higher B2C sales Higher & Stable Profitability Share of Dyestuff to increase gradually which
Slide 22: Key Growth Drivers (1/2)
Key Growth Drivers (1/2) 1. Bodal Chemicals expanded its Dyestuff capacity by 18,000 MTPA in last two years. Share of Dyestuff in total revenues will increase going ahead with higher capacity utilization which will ensure further integration of business and stable margins. 2. For marketing of Dyestu
Slide 23: Key Growth Drivers (2/2)
Key Growth Drivers (2/2) 5. Recently, the board of the company has approved acquiring 100% stake in Trion Chemicals and believe that it should turn profitable in the near term. 6. Promoter’s continuous focus on integrated business model including plans to foray into Specialty Chemicals. 7. The compa
Slide 24: Bodal on Strong Growth Trajectory
Bodal on Strong Growth Trajectory Increase in profitability & market share Expanding the reach Increase in Adding Capacities Diversification of Gradual Margins into different stakeholders’ of Core Business the business Expansion geographies value Higher cash flow generation Continuous efforts to mak
Slide 25: Quarterly Production Data
Quarterly Production Data Higher capacity utilization levels to support higher growth in coming years Corporate Presentation March-2020 24
Slide 26: Production and Utilization Levels
Production and Utilization Levels Dye Intermediates (MT) Utilization (%) Dyestuff (MT) Utilization (%) 8,000 91.0% 100.0% 6,000 80.0% 7,000 90.2% 90.0% 70.0% 84.6% 5,000 67.4% 61.5% 80.0% 61.9% 6,000 60.0% 70.4% 67.0% 70.0% 4,000 5,000 51.8% 50.0% 60.0% 45.0% 4,000 50.0% 3,000 40.0% 3,000 40.0% 30.0
Slide 27: Rewards and Recognition
✓ Award for Highest Self Manufacturing Turnover from Domestic and Export of Dyes and Dye Intermediates during FY2016-17 from The Gujarat Dyestuffs Manufacturers Association (in June-18) ✓ First in Large scale unit category for outstanding performance on Domestic Market and one as a Second in Large s
Slide 28: CSR Initiatives
✓ Bodal seeks to be a responsible corporate citizen. It works through Trusts and YUVA – a renowned NGO ✓ Bodal’s focus areas are ❑ Eradicating hunger, poverty and malnutrition ❑ Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh ❑ Promoting education and enhancement
Slide 29: Thank you
Thank you Bodal Corporate House Behind Venetian Villa, Near Anand Niketan School, Shilaj Ring Road Circle, Thaltej, Ahmedabad-380059 www.bodal.com For any queries, please contact: Meet Chande Mayur Padhya IR, Bodal Chemicals Ltd. CFO, Bodal Chemicals Ltd. ir@bodal.com mayur@bodal.com Ph: +91 79 6816