Ramco Cements Limited · NSE:RAMCOCEM
Ramco Cements — The Ramco Cements — Investor Presentation (November 2021)
60 slides from Ramco Cements's investor presentation, November 2021
Slide 1: The Ramco Cements Limited Corporate Presentation
The Ramco Cements Limited Corporate Presentation Consolidating Strengths. Ready for future November 2021
Slide 2: Macro Economic Overview
Macro Economic Overview Overview of Economy • India's real GDP growth for FY22 is projected at 9.5%, as per Economic Survey 2020-21 • In October 2021, World Economic Outlook (WEO) forecast India’s growth projections as 8.3% in 2021 and 9.6% in 2022 on calendar year basis • India is the World’s secon
Slide 3: Cement Industry in India
Cement Industry in India In Million Tons Northern India 1 132 MTPA (24%) 13 7 4 Western India 7 81 MTPA (15%) 72 28 6 11 8 Eastern India 40 8 28 40 80 MTPA (15%) 26 19 41 Central India 31 66 MTPA (12%) 47 66 Total Capacity Southern India 544 MTPA 40 185 MTPA (34%) 1 Source: Survey of Cement Industry
Slide 4: Top 10 cement groups in India
Top 10 cement groups in India Cement Rank Company Share % Capacity MTPA 1 Ultratech Cement Limited 114.40 21% 2 Lafarge Holcim India (ACC + Ambuja) 62.70 12% 3 Shree Cement Limited 43.40 8% 4 Dalmia Bharat Limited 30.75 6% 5 Nuvoco Vista Corp. Limited 22.32 4% 6 The Ramco Cements Limited 19.40 4% 7
Slide 5: Country's cement demand trend
Country’s cement demand trend In Million T 379 367 328 327 269 272 269 256 239 245 221 206 166 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Year ‘E’ denotes Estimates for the year The Ramco Cements Limited Corporate Presentation
Slide 6: Uniqueness of Ramco Cements
Uniqueness of Ramco Cements Longevity of the company; established in 1961 with 2 LTPA Trend setter in Cement technology Money raised as equity raised was ` 3.72 Crores only Real time data visualization thro robust IT infrastructure Capital increased only through bonus issues Sophisticated Research &
Slide 7: Installed Capacity 2021
Installed Capacity 2021 Clinker Integrated Unit Grinding Unit Dry Mortar 11.40 MTPA 12.20 MTPA 7.20 MTPA 96,000 TPA Ready Mix Concrete Thermal Power Waste Heat Recovery Wind power (*) 56 Cu.Metre / Hour 175 MW 27 MW 166 MW (*) Include Subsidiary State / Product UOM TN AP KAR WB ORI Total Clinker – I
Slide 8: Integrated Cement Capacity Journey
Integrated Cement Capacity Journey Clinker Capacity 1961: Started with 0.20 MTPA 1986: Installed 0.75 MTPA 1997: Installed 0.66 MTPA 2008: Installed 1.55 MTPA Expanded to current capacity of Expanded to current capacity of Expanded to current capacity of Expanded to current capacity of 1.10 MTPA 4.6
Slide 9: Grinding Cement Capacity Journey
Grinding Cement Capacity Journey 2009: Installed 0.80 MTPA 2010: Installed 0.95 MTPA 2021: Installed 0.90 MTPA Expanded to current capacity of Expanded to current capacity of 1.60 MTPA 2 MTPA 0.90 MTPA Salem, TN Kolaghat, WB Haridaspur, ORI Chengalpattu, TN Vizag, AP 2009: Installed 0.50 MTPA 2015:
Slide 10: Salient features of Plants
Salient features of Plants 01 02 03 04 05 Railway Well Captive Siding with Strategically State of the connected to Power Plants automated located in art ports and (TPP, material proximity to Technology NH / State WHRS & handling markets highways Windmill) system The Ramco Cements Limited Corporate P
Slide 11: Plants located across east coast
Plants located across east coast Distance between Plant Locations Plant Type State nearest plants Nagerkoil Packing TN Ramasamy Raja Nagar Integrated TN 157 Ariyalur Integrated TN 288 Alathiyur Integrated TN 35 Salem Grinding TN 119 Chengalpattu Grinding TN 254 Kurnool Integrated AP 392 Jayanthipura
Slide 12: Wind power
Wind power Capacity Distribution Wind power usage pattern Karnataka, Captive Use, 6.00 MW (4%) 16.45 MW (10%) FY21 FY21 Sale, Tamil Nadu, 149.34 MW 159.79 MW (96%) (90%) 01 02 03 Only cement Early mover to Average PLF company in invest in 20% to 25% the World to green energy depending on own this si
Slide 13: Forte
Forte 1 Ability to continuously scale up capacities by green field route in the Capacity creations growing and profitable markets 2 Currently possess 12 Brands for right products for right applications to Brands cater the requirements of niche markets 3 Customer Centric Constant strengthening
Slide 14: Capacities in pipeline
Capacities in pipeline 01 02 03 04 05 Clinker Capacity Cement Capacity WHRS Capacity TPP Capacity Dry Mortar Capacity 02 02 02 Existing : 11.40 MT Existing : 19.40 MT Existing : 27 MW Existing : 175 MW Existing: 0.96 Lac T In Pipeline In Pipeline In Pipeline In Pipeline In Pipeline Kurnool: 2.25 MTP
Slide 15: Brands
Brands Enhancing portfolio mix with R & D competencies The Ramco Cements Limited Corporate Presentation
Slide 16: Right product for right application
Right product for right application Cements Ramco Supercrete Ramco Supergrade OPC 43 Infra OPC 53 Infra OPC 43 Grade OPC 53 Grade High strength cement with For producing durable concrete For high strength & high slump For all infrastructure projects For high strength concrete, For high strength low
Slide 17: Right product for right application
Right product for right application Dry Mix products Ramco Super Plaster Ramco Super Fine Ramco Tile Fix Ramco Self curing Ramco Block Fix Ramco Tile Grout Plaster Engineered for super An all-weather white- For fixing all types of tiles, A polymer fortified block A high performance cement smooth, pr
Slide 18: Customer Centric Innovation
Customer Centric Innovation Ramco Research and Development Centre (RRDC) Masons, Architect, Contractors & Engineers (MACE) Strong R & D team of scientists with sophisticated equipments An unique attempt to provide value added services to customer by providing onsite technical assistance through
Slide 19: Technology
Technology 01 Making sustained investments in technology 03 Information technology, is the way forward Consistent investment in cutting-edge technology to Hiring right people at the right positions & creating a strong drive manufacturing and business excellence team with ample technical know-how
Slide 20: Agile Information Technology infrastructure
Agile Information Technology infrastructure In-house competence for Ramco ERP is fully Advanced Information development of dynamic integrated with end-to-end technology systems for data dashboards and Analytical Business Processes visualization, digitization Reports for data based decision making Ce
Slide 21: First movers
First movers 1976 First in India to adopt the dry process Kiln technology for 2003 First in India to introduce the state of the art cross bar coolers for production of Cement Clinker of capacity 1200 TPD clinker cooling. 1980 First cement plant to install an Electrostatic Separator (ESP) for 2010 Ad
Slide 22: ESG
Sustainability framework ESG Environment Social Governnance Resource Efficiency People Responsible leadership and • Ensuring net zero emissions • Occupational Health & Safety business • Optimal Water Management • Employee engagement, well - • Robust Governnance • Ensuring Circular Economy being & pr
Slide 23: Sustainability - Environment
Sustainability - Environment 01 Towards net zero carbon emissions 03 Circular Economy Installation of WHRS to generate power Measures to reduce waste generation and efficient use of wastes in manufacturing Use of wind power for cement manufacturing Effective use of waste generated by other i
Slide 24: Sustainability - Social
Sustainability - Social Ensuring a Safe Workplace Water & Sanitation Monthly campaigns on Safety Norms related to hazard identification and Constructed 70 smart toilets during FY20 / FY21; Desilted water of various risk assessment. All employees must undergo Safety Induction Program lakes and instal
Slide 25: Sustainability - Governance
Sustainability - Governance Governance Board Independence Ethical conduct Framework and diversity o Robust governance framework that o Highest standards of business o 7 Board Members, of whom 6 are goes beyond regulatory compliance ethics across all activities, while Independent directors, which for
Slide 26: ESG Goals
ESG Goals Aim to consciously reduce the environmental Aim to minimize the water footprint substantially impact and ecological footprint by incorporating by investing in adequate infrastructure and elements of sustainability across the product life increasing recycling / reuse solutions cycle fro
Slide 27: Board
Board P.R.Venketrama Raja R.S.Agarwal M.B.N.Rao M.M.Venkatachalam Chairman & Managing Director Independent Director Independent Director Independent Director 3rd generation Retired Executive Director, Retired Chairman & MD, Promoter Director of Murugappa Promoter family IDBI Bank Canara Bank Group o
Slide 28: Empowered Committees
Empowered Committees Nomination & Stakeholders Risk Management Audit Committee CSR Committee Remuneration Committee Relationship Committee Committee The Committee is The committee This Committee oversees The Committee is The Committee is entrusted with the recommends suitable the timely and appropri
Slide 29: Experienced Leadership Team
Experienced Leadership Team A.V.Dharmakrishnan M.Srinivasan Balaji.K.Moorthy S.Vaithiyanathan K.Selvanayagam 02 Chief Executive Officer ED - Operations ED - Marketing Chief Financial Officer Company Secretary He joined the Company when it He heads the manufacturing He heads the marketing He heads th
Slide 30: Marketing Strategy
Marketing Strategy Training on product knowledge for all Customer segmentation Share of Premium products stakeholders in the supply chain Right product for FY21 19% Tech service support to 81% customers right application All subsequent expansions were managed through internal accruals with borrowing
Slide 31: Net Revenue
Net Revenue ` in Crores 5,406 5,303 5,175 4,443 3,873 3,993 3,769 3,732 3,662 3,257 2,821 2,645 2,471 2,021 1,582 1,013 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 The Ramco Cements Limited Corporate Presentation
Slide 32: Profitability
Profitability 1,800 EBITDA EBITDA / T 1,800 1,611 1,586 1,600 1,600 1,483 1,400 1,309 1,292 1,400 1,253 1,220 1,216 1,048 1,200 1,103 1,200 1,043 957 994 1,000 907 1,000 800 755 800 600 456 600 400 400 200 200 216 564 762 793 877 657 970 1,047 649 800 1,160 1,238 1,136 1,065 1,174 1,583 - - FY06 FY0
Slide 33: Gross Fixed Assets
Gross Fixed Assets ` in Crores 13,209 11,465 9,599 8,603 8,178 7,685 7,915 7,229 6,771 6,379 5,837 5,129 4,553 3,291 1,977 1,652 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 The Ramco Cements Limited Corporate Presentation
Slide 34: Power generation
Power generation Power Generation Capacity Power Usage Trend WHRS Wind Power Grid Power, Green Power Grid Power, Green Power 27 MW (11%) (166 MW @ 25% PLF) 16% 7% 16% 15% 41 MW (17%) FY22 FY21 H1FY22 Thermal Power Thermal Power Thermal Power, 175 MW (72%) 77% 69% Continued focus on Green Power; WHRS
Slide 35: Multi-Modal Logistics
Multi-Modal Logistics Trucks Rail Coastal Ships 01 02 03 Primary movement by bigger Long distance movement of Clinker Movement of Cement through Ship capacity and cement by rail by containers Secondary movement by smaller Automated material handling system trucks at factories help to optim
Slide 36: Leveraging on Debt
Leveraging on Debt ` in Crores Net Debt Net Debt / EBITDA 3500 4.50 3000 4.45 4.00 4.19 3.50 2500 2.57 2.52 3.00 2000 3.06 2.89 3.32 2.50 2.77 2.50 1.76 1500 2.00 1.10 1.47 1.08 1.89 1.50 1000 2.12 0.90 1.00 500 0.50 554 622 1614 2427 2534 2754 2691 2617 2889 2655 2039 1343 1025 1563 2963 2996 0 - F
Slide 37: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Customers Service Shareholders Government Society Providers Nurturing Human Capital Employee Stock Options Subsidized loan for asset buildings Social Security Schemes viz. PF, ESI, Gratuity, NPS, SA Interest free loans for vehicle / marriage /
Slide 38: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Customers Service Shareholders Government Society Providers Age wise Employees Strength as on Mar-21 History of Long Service Awards Young Minds Age Staff / Category Count Officers Total (In years) Workmen Officers 581 ~ 60% of the total work force i
Slide 39: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Customers Service Shareholders Government Society Providers Strong Distribution Network Multi- Right products for right application Holiday & Pilgrimage travel facilities Ageing Exclusive Total Brand % Bucket Dealers Dealers Dealers High Quality
Slide 40: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Customers Service Shareholders Government Society Providers Supply chain eco-system Procurement of high quality products & services Truck Assistance program for transporters Transparent business policies 30,000 + suppliers / service providers
Slide 41: Commitment to Stakeholders
Commitment to Stakeholders ` in Crores Suppliers / Employees Customers Service Shareholders Government Society Providers Consistent Dividend Payout in last two decades 71 71 71 71 71 71 60 59 48 48 48 36 30 30 18 9 12 7 7 7 7 24 FY2K FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 F
Slide 42: Commitment to Stakeholders
Commitment to Stakeholders ` in Crores Suppliers / Employees Customers Service Shareholders Government Society Providers Market Capitalization grew by 20% CAGR in last two decades 23650 17056 17338 16016 9520 12082 7265 6045 5117 3297 3986 3659 2614 2897 2427 920 1184 1700 467 525 515 406 FY2K FY01
Slide 43: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Customers Service Shareholders Government Society Providers Bonus issues Buy back of shares 1992-93 1994-95 2008-09 2008-09 2017-18 1:1 Ratio 1:1 Ratio 1:1 Ratio 1,79,481 25,00,000 3,02,068 5,92,116 11.90 Cr shares shares shares of shares of shares of
Slide 44: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Employees Customers Service Shareholders Government Society Providers Contribution to Exchequer ` In Crores Responsible Corporate Citizen 2014 – 15 1,418 Compliance of laws 2015 – 16 1,550 Prompt payment of taxes 2016 – 17 1,711 Respect for rule
Slide 45: Commitment to Stakeholders
Commitment to Stakeholders Suppliers / Employees Employees Customers Service Shareholders Government Society Providers Commitment to society through various CSR initiatives The Ramco Cements Limited Corporate Presentation
Slide 46: CSR
CSR Green Belt development Education & Skilling Water & Swachh Bharat Health & Special needs 2,20,000 + 5,500 + 70 + 17 + saplings planted Students Smart Toilets Medical Camps As part of ‘Niscrith’ Mine constructed constructed Restoration Project in 270 + Pandalgudi Teachers 15,000 + 1,800 + Across
Slide 47: Restoration of Mines: eco-park in Pandalgudi
CSR – Green belt development Restoration of Mines: Making of mined land into a eco-park in Pandalgudi, Tamil Nadu The Ramco Cements Limited Corporate Presentation
Slide 48: CSR – Education & Skilling
CSR – Education & Skilling PACR ITIs are ranked among the top 10 institutes in India - Ariyalur (3rd) by Skill Strengthening for Industrial Value Enhancement Project of GoI The Ramco Cements Limited Corporate Presentation
Slide 49: CSR – Education & Skilling
CSR – Education & Skilling The Ramco Cements Limited Educational & Charitable Trust Running CBSE Schools at all our factories Vocational education and skill training for youths Provided amenities like academic material and uniforms to 2,000 government school students annually. Ramco Vidyalaya,
Slide 50: De-silting water bodies
CSR – Water conservation De-silting water bodies Before After The Ramco Cements Limited Corporate Presentation
Slide 51: De-silting water bodies
CSR – Water conservation De-silting water bodies Before After The Ramco Cements Limited Corporate Presentation
Slide 52: Sustainable water management solutions
CSR – Water conservation Sustainable water management solutions: Reusing, Recycling and Replenishing water The Ramco Cements Limited Corporate Presentation
Slide 53: 70+ Smart Toilets constructed so far
CSR – Swachh Bharat 70+ Smart Toilets constructed so far The Ramco Cements Limited Corporate Presentation
Slide 54: CSR – Disaster Relief
CSR – Disaster Relief Disaster Management & Rehabilitation initiatives in Tamil Nadu Disaster Management & Rehabilitation initiatives in Kerala Disaster Management & Rehabilitation initiatives in Orissa The Ramco Cements Limited Corporate Presentation
Slide 55: CSR – Contribution to relief funds of Government
CSR – Contribution to relief funds of Government ` 1 Crore contributed towards Tamil Nadu Flood Relief ` 2 Crores contributed towards Kerala Flood Relief Fund ` 2 Crores donated to Odisha CM’s Relief Fund for Cyclone Fani The Ramco Cements Limited Corporate Presentation
Slide 56: CSR – Covid19 Relief spend in FY21
CSR – Covid19 Relief spend in FY21 Medical State-wise Relief CM Relief Fund Livelihood Total Equipments Tamil Nadu 2.50 1.07 1.03 4.60 Andhra & Telangana 2.50 0.43 0.29 3.22 Kerala - - 0.79 0.79 ` in Crores Karnataka - 0.04 0.01 0.05 Orissa - 0.39 2.13 2.52 West Bengal - 0.19 0.01 0.20 Total 5.00 2.
Slide 57: CSR – Financial assistance to martyrs' families
CSR – Financial assistance to martyrs’ families Rs. 40 lakhs distributed to 8 Jawans of Rs. 5 lakhs each to the Pulwama attack martyrs’ families The Ramco Cements Limited Corporate Presentation
Slide 58: Memberships
Memberships Collaborations with industrial bodies enables to jointly influence policy decisions and, formulate plans for sustained growth and health of the industry, for addressing critical issues of the climate crisis, environment conservation and the development of fellow Indians. Indo-Germa
Slide 59: Market Analysts' view
Market Analysts’ view Analyst firm Analyst’s comment on Q2FY22 results Date Recommendation Strong volume recovery; cost matrix resilient 25-10-2021 Buy Positive surprise on volume; focus shift to pricing 25-10-2021 Buy Strong quarter 25-10-2021 Sell Spreading its wings beyond South 25-10-2021 Buy Vo
Slide 60: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ
The Ramco Cements — Investor Presentation (November 2021) on 6ix