Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Shareholder Meeting (August 2021)
63 slides from Carborundum Universal's shareholder meeting presentation, Aug 2, 2021
Slide 1: Sustainability Matters - 67th Annual General Meeting
Sustainability Matters 67th Annual General Meeting 02 August 2021 © Deloitte LLP and affiliated entities.
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: CUMI – A Brief History
CUMI – A Brief History CUMI Incorporated EAL, Calcutta 12 MW Hydel project at Maniyar, Kerala, India. WFA at Maker 2.0 for Coated Plant at SPR Coated Abrasives facility from Ajax Products 2nd Bonded Abrasives plant at Hosur Edappally Expansion of IC at Hosur Pvt. Ltd. METZ 2.0 & 2.5 MMTCL Sterling A
Slide 4: We Engineer Materials Science Solutions For An Enduring Planet
We Engineer Materials Science Solutions For An Enduring Planet Abrasives Surface Engineering Electro minerals Wear & Materials Heat Containment Corrosion Science & Protection Solutions Management Ceramics & Refractories Material Processing Composites Mission Critical Applications Materials science -
Slide 5: Board of Directors
Board of Directors M M Murugappan Chairman Expertise in Chemical and Environmental Science Mr Sanjay Mr Aroon Raman Mr Ananthaseshan Mr P Raghavan Mr Sujjain Mr Sridharan Ms Soundra Kumar Jayarathnavelu Material Scientist and Managing Director Former Ambassador to Talwar Rangarajan Expertise in Bank
Slide 6: Our Leadership Team
Our Leadership Team Mr Ananthaseshan Managing Director Ms Rekha Mr Bhaskaran Mr Ninad Mr MV Mr V.G. Dr Shyam Mr Padmanaban P Mr Sergey Mr Trevor Surendran Kannaun Gadgil Sivakumaran Rajendran S Rao CFO Kostrov Allen CS HR Head SBU Head - Abrasives SBU Head - EMD SBU Head- Refractories SBU Head - Cer
Slide 7: Global Footprint
Global Footprint India Russia Standalone Operations USA Volzhsky Abrasives Works ( 98.07% ) Sterling Abrasives Limited ( 60% ) CUMI America Inc. ( 100% ) SEDCO ( 84.7% ) Net Access India Limited – ( 100% ) Wendt India Ltd. ( 37.5% ) MMTCL (49%) UAE CUMI Middle East ( 100% ) CIRIA Limited - 30% Austr
Slide 8: When Making Materials Matter, Sustainability Matters!
When Making Materials Matter, Sustainability Matters! © Deloitte LLP and affiliated entities.
Slide 9: A Resilient Organisation Built on Strong Fundamentals
A Resilient Organisation Built on Strong Fundamentals APPLICATION HYDEL POWER ABRASIVES 7 DSIR LABS NEW-AGE MATERIALS DEVELOPMENT BAUXITE MINE ELECTRO MINERALS SURFACE TECHNOLOGY ORGANIC & INORGANIC NEW PROCESSES CENTRE GROWTH CERAMICS; REFRACTORIES 60 + MATERIALS & THERMAL POWER TECHNOLOGY PLATFORM
Slide 10: Building Capabilities - Aligned to Futuristic, Sustainable Technologies
Building Capabilities - Aligned to Futuristic, Sustainable Technologies Design Processes Resources Products People Distribution Residual Waste Consumption Reuse/Recycle © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of
Slide 11: Building Sustainable Capabilities - Resources
Building Sustainable Capabilities - Resources Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Maniyar Hydel power station – green energy • Significant part (~30 per cent) of the energy requirement for the Electro minerals is from the Company’s own Hyd
Slide 12: Building Sustainable Capabilities - Resources
Building Sustainable Capabilities - Resources Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Consumption of Solar Energy at SR Plants • Type: On-Grid solar photo-voltaic system • Capacity: 240.95 kWp (DC), Energy Generation during first year : 3,27,5
Slide 13: Building Sustainable Capabilities – Design
Building Sustainable Capabilities – Design Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle The Graphene Lab at Kakkanad, Kerala • CUMI forayed into Graphene in 2018 and Kakkanad Plant has started the manufacturing for very niche applications • CUMI wo
Slide 14: Building Sustainable Capabilities - Processes
Building Sustainable Capabilities - Processes Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Sintered Silicon Carbide Ceramics facility, Hosur • Installed and Commissioned in Q4 entirely through remote monitoring • Equipped with IoT enabled process s
Slide 15: Building Sustainable Capabilities - Processes
Building Sustainable Capabilities - Processes Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Continuous Metallization furnace at Hosur, as part of the METZ 2.5 Project • Successfully commissioned, in line with our strategic intent of becoming a leadi
Slide 16: Building Sustainable Capabilities - Processes
Building Sustainable Capabilities - Processes Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle The White Fused Alumina Plant at SEZ, Cochin • Capacity expansion to 12000 TPA, through process optimisation and efficiency improvements • Installed emission
Slide 17: Building Sustainable Capabilities - Products
Building Sustainable Capabilities - Products Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Slip cast High Strength Thin NbSiC Kiln Furniture Development • Light Weight --> More Energy Saving • More Space --> Enhanced Capacity • Lowers specific fuel
Slide 18: Building Sustainable Capabilities - Products
Building Sustainable Capabilities - Products Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Development and Introduction of Feeder Channels to Container Glass Industry • This bonded refractory product requires lower energy and leads to less emission
Slide 19: Building Sustainable Capabilities - Distribution
Building Sustainable Capabilities - Distribution Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Natural Gas Receiving Station at CUMI IC : Managed by GAIL • Receiving station had been installed and transition from liquid fuel (HSD and SKO) to natural
Slide 20: Building Sustainable Capabilities – Consumption by User
Building Sustainable Capabilities – Consumption by User Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle Mr M M Murugappan, Chairman, with the team at the new Prodorite Composite Plant, Serkadu • New plant for the manufacture of Nacelle Cover for Wind
Slide 21: Building Sustainable Capabilities – Consumption by User
Building Sustainable Capabilities – Consumption by User Design Processes Resources Products People Distribution Residual Consumption Waste Reuse/Recycle The new Kiln for Refractory manufacturing at VAW , Russia • Capacity expansion of Nitride Bonded Silicon Carbide facility at VAW, Russia • Growth s
Slide 22: Building Sustainable Capabilities – Reuse/Recycle
Building Sustainable Capabilities – Reuse/Recycle Design Processes Resources Products People Distribution Residual Consumption Waste Reuse Recycle Design and development of ‘Occupational Health Centre’ using coated abrasives’ scrap for internal consumption WOW (Waste to Wealth)– FY 21 Performance -
Slide 23: Building Sustainable Capabilities – Residual Waste
Building Sustainable Capabilities – Residual Waste Design Processes Resources Products People Distribution Residual Consumption Waste Reuse Recycle Advanced exhaust gas treatment facility at VAW, Russia • Advanced gas treatment facility was commissioned for treating production emissions from water c
Slide 24: Building capabilities - aligned to futuristic, sustainable technologies
Building capabilities - aligned to futuristic, sustainable technologies 28 Projects hosted in 8 months Design 59 Employees Applied Processes 43 Employees Selected Resources Products 10 On-going projects People Distribution 05 Projects Completed Residual Consumption 03 Projects Dropped Waste Reuse Re
Slide 25: Building capabilities - aligned to futuristic, sustainable technologies
Building capabilities - aligned to futuristic, sustainable technologies 2 Functional 2 Behavioural (per employee) Design Processes Resources Products People Distribution Residual Consumption Waste Reuse Recycle e-learning Modules during lockdown • Online learning and development programmes rolled ou
Slide 26: Building capabilities - aligned to futuristic, sustainable technologies
Building capabilities - aligned to futuristic, sustainable technologies Design Processes Resources Products People Distribution Residual Consumption Waste Reuse Recycle Mentorship Program • A voluntary, self-directed mentoring programme where employees directly sign up for dialogues with mentors for
Slide 27: Innovation & New Products
Innovation & New Products © Deloitte LLP and affiliated entities.
Slide 28: Putting Purpose at Core
Putting Purpose at Core © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 28
Slide 29: Putting Purpose at Core
Putting Purpose at Core © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 29
Slide 30: Putting Purpose at Core
Putting Purpose at Core Graphene for water purification Materials for cold chain logistics – lower energy Materials for consumption affordable neonatal incubators Solar Dryers that can work even at night Abrasive material Captive Solar Table top made of SiC for EVs and products for end Plant coated
Slide 31: Intellectual Property Rights (IPR)
Intellectual Property Rights (IPR) A Method For Producing Ceramic Grain Reinforced Metal Matrix Composite IPR Granted Patent Zirconia Toughened Alumina Ceramic Composites 7 A Process For Producing Sintered Aluminium Oxide Powder Design Abrasive Grains Based On Fused Alumina And Zirconia 4 Partially
Slide 32: New Products : Ceramics
New Products : Ceramics Sputtered Product RbSiC Armour Product CUMITHERM-Z products Tape Cast Alumina 92% Alumina Mini-Media ZTA Mini-Media Ceramics © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be
Slide 33: New Products : Abrasives
New Products : Abrasives Epoxy bond for Resin bond for grooved Ball Vitrified CBN range Spl. Vitrified Bond Cylindrical Wheel Face grinding Face grinding wheels for Auto for Rice Polishing Hi perf Non-Woven Stearated Angular Grinding Quasi Hot Press Film backed Discs Zirconia Belts Pad discs Wheel w
Slide 34: New Products : Minerals | Refractories | Composites
New Products : Minerals | Refractories | Composites Fused Yttria stabilized GFRP Rebar Special Refractories zirconia crystals Fused Yttria stabilized Copper Shaft f/c Lining CFRP Drone Tubes zirconia crystals © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly
Slide 35: Volzhsky Abrasives Works (VAW)
Volzhsky Abrasives Works (VAW) © Deloitte LLP and affiliated entities.
Slide 36: VAW’s 60th Anniversary
VAW’s 60th Anniversary © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 36
Slide 37: Branding at Retail Shop in Russia
Branding at Retail Shop in Russia © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 37
Slide 38: Fight against Covid
Fight against Covid © Deloitte LLP and affiliated entities.
Slide 39: Countering the First Wave of Covid
Countering the First Wave of Covid Awareness Social Distancing Sanitization Immunity Boosting Food Hygiene Kits Work from Home Health Check © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photograp
Slide 40: Countering the Second Wave of Covid
Countering the Second Wave of Covid Automation Transportation Vaccination Drives Food Quarantine Centre Office Space Awareness © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, publishe
Slide 41: Preparedness for Third Wave
Preparedness for Third Wave • Effective Communication to create awareness through webinars, emails, posters • Continue Enforcement of Covid Appropriate Behavior • Vaccination Drive across locations • Implemented CUMI Covid -19 Care policy covering the following : Prevention – Communication for Aware
Slide 42: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) © Deloitte LLP and affiliated entities.
Slide 43: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) Education Community Medical Infra Health © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without pr
Slide 44: 2020 : The Longest Year Yet
2020 : The Longest Year Yet © Deloitte LLP and affiliated entities.
Slide 45: 2020 : The Longest Year Yet
2020 : The Longest Year Yet • Unimaginable losses to lives and livelihoods • Pandemic reveals fault line in Socio-economic orders • Surging commodity prices – acute supply bottlenecks • Chronic shortage in containers availability • Second and third waves in countries across the world • Devastating s
Slide 46: A crisis like no other…has placed the focus on sustainability like never before
A crisis like no other…has placed the focus on sustainability like never before Source: The Economist, issues top left to bottom right; Feb 1st 2020, June 20th 2020, Mar 21st 2020, Mar 31st 2021, Apr 24th 2021 , May 15th 2021, © Deloitte LLP and affiliated entities. Disclaimer: This presentation/doc
Slide 47: …and forced organizations to Pivot
…and forced organizations to Pivot 03 Adapt to an 04 Disrupt our own cost online world structures 02 Re-examine risk and business continuity from a new 05 Increase focus on vantage point innovation; to pivot to a post- pandemic world 01 Safe & Healthy workforce © Deloitte LLP and affiliated entities
Slide 48: Economic Overview
Economic Overview CUMI SA Sales vs. India's Real GDP Global output contracted by 3.2% in 2020 15% 12.2% 12.9% 10% 8.6% 8.3% 6.8% 6.5% 5% (3.0) 4.0% Your company has 1.6% recorded positive growth (6.5) 0% 2016-17 2017-18 2018-19 2019-20 2020-21 over FY 21 -5% (3.5) -7.4% -7.3% 2.3 -10% (7.3) Growth R
Slide 49: Key End User industries
Key End User industries Auto Construction Capital Goods Total Passenger Vehicles (PVs) – Production in numbers Capital goods (IIP) 3,424,564 Construction sector growth percentage (Real terms) 10 3.2 4.0 8 5 2.7 5.9 6.3 6 5.2 -10.58% 3,062,221 0 4 2016-17 2017-18 2018-19 2019-20 2020-21 2 1.0 -5 0 -1
Slide 50: Strong Financials – Higher Margins and Free Cash
Strong Financials – Higher Margins and Free Cash Sales EBITDA • Showing good resilience ₹ 2604 Cr ₹ 512 Cr • Sales and marketing decisions • +1.5% +1% Segment wise margins OCF /EBITDA FCF/ PAT • 88% 122% Strong contribution from working capital movements • Improving Operational efficiencies and cost
Slide 51: Consistent Growth and Higher Margins
Consistent Growth and Higher Margins FY 2013 FY 2021 Total Sales Total Revenue Rs 1942 Cr Rs 2604 Cr EBITDA Margin % EBITDA Margin % 12.9% 19.7% Net Profit Margin% Net Profit Margin% 4.6% 10.9% © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential an
Slide 52: Consolidated Segmental Financials
Consolidated Segmental Financials Abrasives* Electro-minerals* Ceramics & Refractories* Sales EBIT Sales EBIT Sales EBIT ₹ 993 Cr ₹ 134 Cr ₹ 1064 Cr ₹ 136 Cr ₹ 627 Cr ₹ 136 Cr - 0.2% + 19% + 4% + 31% - 0.3% + 3% • Leverage opportunities risen out of pandemic • Revival of domestic Abrasives and • Suc
Slide 53: Focus on generating shareholder value
Focus on generating shareholder value S&P BSE Mid-cap vs CUMI over 1 Year Mid-Cap TSR* for above period Dividend Pay out Ratio ROE (5 years Avg.) 179% 31% for FY 21 14% *TSR = (Gains in share price + dividends) / Purchase price © Deloitte LLP and affiliated entities. Disclaimer: This presentation/do
Slide 54: Way Forward : 2021-2022
Way Forward : 2021-2022 Employee Health & Safety – Productivity enhanced Stakeholder Covid Care through Automation Relationships Pivot Product Portfolio Strengthen supply chains - innovation across global operations © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is st
Slide 55: Awards & Recognition
Awards & Recognition © Deloitte LLP and affiliated entities.
Slide 56: SEEM National Energy Management Award
SEEM National Energy Management Award © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 56
Slide 57: Leader of Environmental activities in Russia
Leader of Environmental activities in Russia According to the results of the XVI All-Russian competition "Leader of Environmental activities in Russia -2020 for the construction of a complex of gas treatment facilities for industrial emissions, PJSC" VAW " was recognized as the winner © Deloitte LLP
Slide 58: CII National HR Excellence Award
CII National HR Excellence Award © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 58
Slide 59: Best Presented Annual Report Award by SAFA
Best Presented Annual Report Award by SAFA © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 59
Slide 60: EHS Excellence Award
EHS Excellence Award © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 60
Slide 61: TPM Excellence Award
TPM Excellence Award © Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 61
Slide 62: Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It
© Deloitte LLP and affiliated entities. Disclaimer: This presentation/document is strictly confidential and is the sole property of CUMI. It cannot be photographed, published, copied or disseminated in any form without prior written consent from CUMI 62
Slide 63: Thank You
Thank You © Deloitte LLP and affiliated entities.
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