Manali Petrochemicals Limited · NSE:MANALIPETC
Manali Petrochemicals — Investor Presentation (September 2024)
33 slides from Manali Petrochemicals's investor presentation, Sep 27, 2024
Slide 1: Exchange filing cover letter
Ref: MPL / Sectl / BSE & NSE / E-2 & E-3 / 2024 27th September 2024 The Manager, The Listing Department Listing Department, National Stock Exchange of India BSE Limited Limited Corporate Relationship Department Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring Plot No.C/1, G Block, Rotunda Buil
Slide 2: Driving Growth & Sustainability in the Chemical Industry
Driving Growth & Sustainability in the Chemical Industry Manali Petrochemicals Limited Investor Presentation September 2024 NSE: MANALIPETC / BSE: 500268 Part of AM International Holdings Private Limited Regd. Office: SPIC House, 88 Mount Road, Guindy, Chennai – 600032, India. www.manalipetro.com CI
Slide 3: Agenda
Agenda Introduction 3 Chemical Solutions 5 Performance Chemicals 13 Consolidated Entity 17 Macro-economic Outlook 26
Slide 4: Credit Rating
Credit Rating Regular use of internal accruals to fund expansions at attractive IRR** Low level of long-term debt CARE A+ Stable signifying ‘low credit risk’ for long-term bank facilities CARE A1+ signifying ‘lowest credit risk’ for short-term bank borrowings Healthy free cash flow – Strong liquidit
Slide 5: Business Verticals
Business Verticals Upstream Downstream Surfactants Propylene Oxide (PO) Chemical Solutions Specialty Polyols Performance Chemicals Foam Control Agents Polyols Release Agents etc. Propylene Glycol Propylene Glycol Monomethyl Ether (PGMME) Sustainability driven Vertical integration Customer intimacy C
Slide 6: Chemical Solutions
Chemical Solutions
Slide 7: MPL – Standalone
MPL – Standalone India’s leading fully integrated Polyol’s petrochemical company • Over 3 decades of steady operations characterized by diverse product portfolio and end use segment. • Leader in the manufacture of Propylene Oxide (PO), Propylene Glycol (PG), Polyols, PGMME and other derivatives. • R
Slide 8: Maintaining a Strong Operation
Maintaining a Strong Operation Net Realisable Value Variation 350.00 300.00 250.00 200.00 150.00 100.00 50.00 - Q3 2020-21 Q1 2023-24 Q1 2018-19 Q2 2018-19 Q3 2018-19 Q4 2018-19 Q1 2019-20 Q2 2019-20 Q3 2019-20 Q4 2019-20 Q1 2020-21 Q2 2020-21 Q4 2020-21 Q1 2021-22 Q2 2021-22 Q3 2021-22 Q4 2021-22 Q
Slide 9: New Projects
New Projects Propylene Glycol Polyester Polyol West India Greenfield Expansion • New Propylene Glycol plant of 32K MTPA with new • Polyester Polyols are widely used across various PU • Targeting 5% of the overall specialty market size of technology which enhance product specs. applications and Manal
Slide 10: Other Notable Projects
Other Notable Projects Sourcing hybrid power Energy saving through change of fuel to liquid nitrogen gas Strengthening R&D team for widening product portfolio Additional PO storage capacity at ETTPL with higher margin specialty chemicals Strengthening marketing in PG & PU systems Optimising overhead
Slide 11: Notedome Limited – Polyurethane Cast Elastomers
Notedome Limited – Polyurethane Cast Elastomers Notedome has 45 years of experience and is a pioneering Specialty cast supplier of high-performance polyurethane solutions and Polyurethanes find Elastomer systems. application across a majority of industries • Strong Q1 2024-25 justified by improving
Slide 12: Achieving a value creation transformation
Achieving a value creation transformation Global Sourcing - Multiple suppliers Reviewing the notion of premium across geographies and take advantage in our tailored services through of global supply chain. enhancement of ad-hoc services. Adaptive Pricing - Using our Making market intelligence (compe
Slide 13: Notedome Limited – Market Overview
Notedome Limited – Market Overview Cast Elastomer Market • Cast Elastomer Market value (2023): $1.4 Bn • The global cast elastomer market is expected to grow at a 5.3% CAGR from 2024 – 2032 • Hot cast elastomer segment is projected to grow at a faster CAGR during the projected period • The Asia Paci
Slide 14: Performance Chemicals
Performance Chemicals
Slide 15: PennWhite Ltd – Chemical Additives and Agents
PennWhite Ltd – Chemical Additives and Agents In late 2022, Manali Petrochemicals Limited acquired Penn Globe* a leading global manufacturer of high-quality foam control agents and chemical additives. • The company is based out of Middlewich, UK. 40 + • PennWhite manufactures over 200 products from
Slide 16: Strong Foundations and a Clear Plan for Future Growth
Strong Foundations and a Clear Plan for Future Growth 2024 Sales Breakdown, Per Region Profit Growth in UK vs non-UK Rest of the UK non-UK world 13% 7,000 6,000 5,000 4,000 UK 60% 3,000 Europe 27% 2,000 1,000 - 2019 2024 Solid foundations to reinforce profitability. Since our acquisition of PennWhit
Slide 17: Performance Chemicals business line ambition
Performance Chemicals business line ambition Supporting our customers Average energy consumption (Kwh/MT) sustainability journey 40 No reactive Products Customers 35 chemistry 30 25 20 • Sourcing • Supporting 15 • ESG sustainable sectors like 10 accreditations raw materials Water like SETEX and Trea
Slide 18: Consolidated Entity
Consolidated Entity
Slide 19: Maintaining a Strong Consolidated Financial Structure
Maintaining a Strong Consolidated Financial Structure Both considering current and liquid assets, the Consolidated revenue still shows a healthy company shows a very strong liquidity. trend and resilience through tough global markets. NSE: MANALIPETC / BSE: 500268 www.manalipetro.com CIN: L24294TN19
Slide 20: Sales Levels
Sales Levels Consolidated Sales* 2023 to 2024 in Crores *Excluding other income NSE: MANALIPETC / BSE: 500268 www.manalipetro.com CIN: L24294TN1986PLC013087
Slide 21: Overview of Core Products
Overview of Core Products 2024 Sales Breakdown, By Division 2024 Sales Breakdown, By Product Propylene Systems Oxide 1% Polyols 5% Base Propylene Polyol 7% Glycol 27% Prepolymers 10% Slab Stock Polyol 19% Others 31% Key products: ‘Other’ product category includes: • Sole manufacturer of Propylene Ox
Slide 22: Lessons from last year 2023-24
Lessons from last year 2023-24 • Slowdown from China significantly increased imports putting pressure on the Net Realisable Value of commodity products like Slab stock. • Increased in raw materials cost have impacted our margins doubled by the constant supply chain disruption and increase of transpo
Slide 23: Steadily building value for our shareholders
Steadily building value for our shareholders Market Capitalization & Net Worth (INR Crores) Dividend History 60% 80.00% 70.00% 50% 60.00% 40% 50.00% 30% 40.00% 30.00% 20% 20.00% 10% 10.00% 0% 0.00% 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Dividend (%) Payout Ratio Good financi
Slide 24: Aligning with a sustainable future and enhancing the eco-efficiency of our operations
Aligning with a sustainable future and enhancing the eco-efficiency of our operations ECONIC Technologies Renewable Power Bio-polyurethane • Signed a MoU in 2021 with a 2 phases project. • Signed Power Purchase Agreement with First • Proactively innovating with bio-based raw Energy , a subsidiary of
Slide 25: Creating a More Sustainable Future with ECONIC
Creating a More Sustainable Future with ECONIC • Econic’s technology has the ability to work across the carbon chains and it means that MPL can produce a wide range in Polyol, the market for which is estimated at about USD 28 billion globally. • The MoU facilitates the deployment of Econic’s patente
Slide 26: Technical Feasibilities are a key to future stable implementation at industrial scale
Technical Feasibilities are a key to future stable implementation at industrial scale E.T.P Technology to Reduce Effluents DMC Catalyst for Polyol Production • Started in 2023 a study to implement ZLD (Zero Liquid Discharge). • Started in parallel to the ZLD study in 2023. • Vision – to reduce major
Slide 27: Macro-economic Outlook
«« Macro-economic “ Outlook
Slide 28: Reached the bottom of the cycle yet?
Reached the bottom of the cycle yet? Last years' trajectory for our market has been marked by increased capacity mainly from China, historically low earnings and softening demand downstream. • Globally, in 2020 consumers shifted their spending from services to good purchases. 67% Median Plant • Supp
Slide 29: Reached the bottom of the cycle yet? (2)
Reached the bottom of the cycle yet? (2) So where are we now? Manali Average Capacity Utilisation - Polyols • Globally, after historically low utilization rates for PO (Propylene oxide) and other chemicals we should see a certain return to normal where orders will slowly match current and future cap
Slide 30: India set for major growth but not without risks
India set for major growth but not without risks India has shown a higher growth during 2023-24 than expected pushed by a strong momentum in the manufacturing sector, however private consumer demand is still a concern. 15% Target of Natural Gas share of India’s • India has had the highest economic g
Slide 31: Accelerating demand for high-performance sustainable materials
Accelerating demand for high-performance sustainable materials Reducing greenhouse gases is primordial to build a sustainable future and for the companies to remain competitive. • According to external research 65% • Companies are now looking at of the largest chemical end user in retrofitting their
Slide 32: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Manali Petrochemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 33: Thank you
Manali Petrochemicals Limited, SPIC House, VI Floor, 88 Mount Road, Guindy, Chennai – 600 032, India. For investor queries: +91 44 22351098 Thank you companysecretary@manalipetro.com www.manalipetro.com Follow us on LinkedIn Our Subsidiaries PennWhite Ltd Notedome Ltd Aston Way, Midpoint Golden Acre
Manali Petrochemicals — Investor Presentation (September 2024) on 6ix