Lakshmi Precision Screws Limited · NSE:LAKPRE
Lakshmi Precision Screws — Investor Presentation (December 2004)
28 slides from Lakshmi Precision Screws's investor presentation, Dec 15, 2004
Slide 1: Welcomes You
Lakshmi Precision Screws Ltd. ‘WELCOMES YOU’ December 15, 2004 1
Slide 2: Strategy to Capitalise on Global Opportunity
Lakshmi Precision Screws Ltd. ‘Strategy to Capitalise on Global Opportunity’ December 15, 2004 2
Slide 3: Contents
Contents Company Overview Market Scenario Exports Financial Performance New Horizons – Growth plans Key Takeaways 3
Slide 4: Vision and Mission
Vision To be part of every 10th vehicle on roads globally Mission To be a globally competitive Fastener Manufacturer offering the Best Products & Value Added Services 4
Slide 5: Company Overview
Company Overview • Formed in 1972 by technocrat promoters • 2nd largest manufacturer of fasteners–10% market share • Leading exporter – 28% of India’s exports • Single window to all fastening solutions for automotive and industrial segments • State-of-the-art plant, strong R&D and quality certificat
Slide 6: Joint Venture & Strategic Alliances
Joint Venture & Strategic Alliances LPS-Bossard Pvt. Ltd. : is a joint venture company of LPS and Bossard. AG of Switzerland. This venture gives state of the art fastening solution/ technology to customer in India. The latest inventory management technique through logistic support is also provided b
Slide 7: Product Range
Product Range Standard Products Special Products • Socket / Slotted / Hex •Torx and Clamp Shoulder Screws •Compressor Bolt • Dowel Pins •Wheel Bolts • HEX/Bi Hex Flange •Collar Bolts and Axles Screws •Axle and Stud • Cylinder Head Bolt •Pivot Pin Transmission • Hub Bolts / Con rod Bolt Bolts •C.R. B
Slide 8: Customers & Products
Customers & Products AUTOMOTIVE SECTOR CUSTOMER PRODUCT ASHOK LEYLAND LOCKING BOLT, PIVOT PIN BAJAJ AUTO AXLES & ENGINE MOUNTING L & T – JOHN DEERE VEHICLE CHASSIS, TRANSMISSION & ENGINE FASTENERS HERO HONDA AXLES & SPL. FLANGE BOLTS HONDA MOTORCYCLES HEX BOLTS & AXLES MARUTI UDYOG Ltd. TRANSMISSION
Slide 9: Customers & Products (contd.)
Customers & Products AUTOMOTIVE SECTOR (CONTD.) CUSTOMER PRODUCT VISTEON FASTENERS FOR ALTERNATORS & STARTERS ESCORTS CYLINDER HEAD BOLTS & CR BOLTS FIAT INDIA WHEEL BOLTS KINETIC ENGG. COLLAR BOLT & AXLE MAHINDRA & MAHINDRA CR BOLTS, HUB BOLTS MICO BOSCH TORX & CLAMP BOLTS NEW HOLLAND TRANSMISSION
Slide 10: Customers & Products
Customers & Products CUSTOMER PRODUCT REFRIGERATION & AIR CONDITIONING SECTOR BPL COMPRESSOR BOLTS CARRIER COMPRESSOR BOLTS GODREJ COMPRESSOR BOLTS SUBROS COMPRESSOR BOLTS WASHING MACHINES SECTOR IFB DRIVE SHAFT MATSUSHITA GEAR SHAFT & DRIVE SHAFT MACHINE TOOLS SECTOR WIDIA CLAMPING SCREWS 10
Slide 11: Product R & D
Product R & D • Qualified and experienced team of engineers • Latest designing, development and testing facilities • Capability to develop customised solutions in a short time • Focus on high value, performance fasteners New product developed every day 11
Slide 12: Quality Journey
Quality Journey ISO 14001 GPEMA TS 2002 16949:2002 2003 2001 ISO/TS 16949 2001 ISO 9002/QS-9000 First fastener co to achieve 2000 TS 16949:2002 certification ISO 9002 Self certifications from Ford, Tata Motors, LMW etc. 1996 Six sigma under A2LA ACCREDITATION implementation 1995 NABL ACCREDITATION 1
Slide 13: Domestic and Exports Markets – At a Glance
Domestic markets – At a Glance Exports markets – At a Glance Market Trends 13
Slide 14: Domestic Market – At a Glance
Domestic Market – At a Glance • Total Domestic fasteners market of 1000 Crores • 68% catered by organized sector • OEM segment of 635 Crores, divided into Auto – 500 crores and Industrial – 135 crores • Replacement segment of 370 crores, divided into Auto – 130 crores and Industrial – 240 crores • A
Slide 15: Market Segmentation
Market Segmentation Total Market – Rs. 1200 Cr. 84% Domestic Market – Rs. 1000 Cr. 16% Domestic Sales Export Sales 37% 63% 18% 40% 9% OEM Replacement 10% 23% 2 Wheelers Cars Tractors LCV's MCV's / HCV's Auto OEM’s – Rs. 500 Cr. 15
Slide 16: Market Players
Market Players 400 355 350 326 300 250 Est. Sales 04-05 (Rs. crores) 200 150 94 86 100 74 67 66 48 52 50 20 4 3 - - - Sundram Lakshmi Sterling Tools Pooja Fasteners Precsion S K S Ltd Others Fasteners Ltd* Precision Screws Ltd Ltd Fasteners Ltd. Domestic Sales Export Sales 16
Slide 17: Global Markets – At a Glance
Global Markets – At a Glance • Market Size – US $ 38 billion • Growth mainly in developing economies of Asia and Latin America • China to become 2nd largest market after US • Shift towards high value, performance fasteners • Exports from India – 200 Crores (0.1% of global business) • Leading Auto pl
Slide 18: LPS Exports
LPS Exports • Exporting since 1988 • LPS exports – over Rs. 50 crores, leading fasteners exporter from India • Global presence and strong Brand Image in US and Europe • Exports contribute 35% to sales - 50% to US and 30% to Europe • Faster growth than domestic market going forward • Long term busine
Slide 19: Global Presence
Global Presence •AUSTRALIA •CANADA •DENMARK l •DUBAI l l l l l l •FRANCE l l •GERMANY l l •HONG KONG l l •INDONESIA l ll •JAPAN l l •MALAYSIA •SWEDEN •SINGAPORE •SWITZERLAND •SOUTH AFRICA •U.K. •USA 19
Slide 20: Market Trends
Market Trends • Industry on a strong growth path – increasing demand from auto sector, industrial segment, replacement market and exports • OEMs are mainly catered by organised sector due to high intensity of capital and technology • Evolving from commodity to customised market • Value addition capa
Slide 21: Financial Performance
Financial Performance Rs Crores FY 03 FY 04 Growth % Sales – Local 56.11 67.24 20 Sales - Exports 33.48 44.77 34 Sales – Share in JV 9.47 11.27 19 Consolidated Sales 99.06 123.28 24 Consolidated PAT 2.42 4.23 75 Equity 6.02 6.02 EPS (Rs) 4.0 7.0 21
Slide 22: Half Yearly Performance
Half Yearly Performance Rs Crores H1 04 H1 05 Growth % Sales – Local 30.01 39.73 32 Sales - Exports 21.40 24.20 13 Sales – Share in JV 5.86 7.62 30 Consolidated Sales 56.87 71.55 25 Consolidated PAT 1.56 2.84 82 Equity 6.02 6.02 EPS (Rs) 2.6 4.7 22
Slide 23: New Horizons – Growth Plans
New Horizons – Growth Plans To migrate from a Small Local Company Image to a Professionally Managed Global Company 23
Slide 24: Business Objectives
Business Objectives • Sustained Sales growth to reach Rs. 500 Crores by 2008 • Cost reduction – overheads, finance and inventory • Higher productivity – process efficiencies & manpower optimisation • Significant improvement in profit margin 24
Slide 25: Growth Strategy
Growth Strategy • Higher share of growing domestic market – automotive and industrial • Penetration into exports – new customers & markets • Entry into synergistic cold forged auto components – potential to overtake fastener sales • Capacity expansion 25
Slide 26: Marketing Plan
Marketing Plan • Focus on increase in market share with strategic customers as per long term potential, profitability and reference factor • Focus on high value products • Explore differentiating strategies - induction hardening & Dacrotising • Capitalise on opportunities for value added components
Slide 27: Key Takeaways
Key Takeaways • Leading manufacturer & exporter • Growing domestic market • Huge potential in export market • On a strong growth path • Net profit to rise faster than sales due to higher productivity and lower costs 27
Slide 28: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward- looking statements. The company does not undert
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