Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Investor Presentation (February 2019)
91 slides from Carborundum Universal's investor presentation, Feb 13, 2019
Slide 1: Investor Conference February 2019
Investor Conference February 2019
Slide 2: Disclaimer
Investor Conference 2019 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
Slide 3: Murugappa Group: Business Portfolio
Murugappa Group : Business Portfolio Agriculture Engineering Finance Diversified
Slide 4: Murugappa Group: Financials
Murugappa Group : Financials
Slide 5: Murugappa Group: Global Presence
Murugappa Group : Global Presence USA Russia, China Nutraceuticals, Electro Minerals, Industrial France Abrasives Ceramics Industrial Chains Tunisia Phosphoric Acid Marketing & ME Distribution Bases in Materials, Thailand Abrasives Materials, Abrasives Argentina, Australia, Brazil, Netherlands, Phil
Slide 6: Murugappa Group: India Presence
Murugappa Group : India Presence Jammu & Kashmir Coromandel Punjab TII Haryana Uttarakhand CUMI & TII TIMF Ambadi TPI Uttar Pradesh TII Rajasthan Liberty Assam Parry Agro Gujarat Sabero Liberty West Bengal PEIL MMTCL CUMI Coromandel TII Maharashtra Madhya Pradesh TII CUMI Coromandel Liberty TPI Karn
Slide 7: Murugappa Group: Values & Belief
Murugappa Group : Values & Belief
Slide 8: Murugappa Group: Values & Belief
Murugappa Group : Values & Belief
Slide 9: Carborundum Universal Limited
Carborundum Universal Limited ABRASIVES INDUSTRIAL CERAMICS SUPER REFRACTORIES ELECTRO MINERALS
Slide 10: CUMI's Inception
CUMI’s Inception Incorporated as a joint Acquired a coated abrasives venture in 1954 between facility from Ajax products Universal Carborundum Company USA, Pvt Ltd Carborundum Universal Grinding Wheel Grinding USA Wheel ,UK Company, UK and the Bonded abrasives facility set Murugappa, India up in Che
Slide 11: Vision Mission
Carborundum Universal Limited – Leadership Team,India Vision Mission We will be an Admired Company in Become one of the largest Abrasives & Technical Ceramics, Abrasives (including Super driven by Innovation, to create Abrasives) / Technical Ceramics in Stakeholder Wealth. the Company in the World b
Slide 12: CUMI - Organization Structure
CUMI - Organization Structure M M Murugappan Chairman K Srinivasan Managing Director N Ananthaseshan Rajesh Khanna V G Rajendran Jayan P S Muthiah M Jagannathan President President Sr. Vice President EVP EVP Chakravarthi Abrasives Ceramics Refractories Electro Minerals Human Resources EVP -CFO
Slide 13: CUMI – Global Presence
CUMI – Global Presence EUROPE RUSSIA CHINA USA UAE THAILAND INDIA SOUTH AFRICA AUSTRALIA India, South Africa, Russia
Slide 14: CUMI - India
CUMI - India Roorkee Jabalpur Kolkata Okha, Bhatia Hosur (2) Thiruvottriyur Koratty Ranipet (2) (3) Edapally Maraimalai Nagar Kakanad Sriperumbudur Manivar
Slide 15: Abrasives
Abrasives Engineering Precision Surfaces
Slide 16: Abrasive Business: Overview
Abrasive Business: Overview ‘Engineering’ surfaces BUSINESS DEFINITION By creating precision surfaces on materials Design, manufacture and distribute Rigid, Flexible and Loose abrasives Standard Products - made to stock Bespoke Products - Aerospace | Automotive | Auto Comp | Bearing | Stee
Slide 17: Key Subsidiaries / Associates
Key Subsidiaries / Associates Sterling Wendt Volzhsky Abrasives India Abrasive Works Subsidiary Joint Venture Subsidiary Bonded Non Std Speciality Super Abrasives Range Coated & Bonded Abrasives
Slide 18: Wendt India
Wendt India • WRS Series: CNC Rotary Surface Grinders Engineering Industry • WDM Series: Dressing & Profiling Machine with Vision System Cutting Tool & Steel Industry
Slide 19: Global Abrasives Market Size
Global Abrasives Market Size Europe: $5.5 bn MiddleEast: Middle East:$0.15 $0.3bn bn Coated: $2.0 bn Bonded: $2.5 bn Coated: $ 100 mn Super Abrasives: $1.0 bn Bonded: $ 150 mn Gr Rate: 2-3% Super Abrasives:$ 50 mn Gr Rate: 5-6% APAC: $23.0bnbn APAC: $20.0 North America: $4.5 bn Coated: $8.0 bn Coate
Slide 20: Bonded Manufacturing
Bonded Manufacturing Chennai Plant Hosur Plant Roorke Plant 1954 1979 2007 Custom Built High volume Thin Products Automated Plant Wheels
Slide 21: Product Capabilities - Bonded
Product Capabilities- Bonded General Purpose & Tools Room Wheels Industry Segments Auto, Auto Component General Engineering Hand tool Industry Replacement Market Saw Sharpening Centreless Grinding Through Feed | Infeed |End feed Combination of through feed and Infeed. Major Industries Bearing, Rolle
Slide 22: Product Capabilities - Bonded
Product Capabilities - Bonded Creep Feed Grinding Wheels Industry Segments Aerospace Turbine Engine Manufacturers Gear Grinding Wheels Industry Segments Automobile OEM Automobile Components Heavy Industries Roll Grinding Wheels Industry Segments Steel Industry Hot Rolling Mill Cold Rolling Mill Pape
Slide 23: Product Capabilities – Mass Market
Product Capabilities – Mass Market
Slide 24: Coated Manufacturing
Coated Manufacturing SRP Plant MM Nagar EAL 2006 2002 Kolkata Fully automatic ‘Maker’ for Jumbos; Back End Manufacturing Coated Abrasives Converted products / Thin Wheels Manufacturing Cloth, Paper, Fibre & Non woven products in Aluminum oxide, Silicon Carbide, Ceramic, Zircon and Special Grains
Slide 25: Products Capabilities - Coated
Products Capabilities - Coated Sheets & Rolls Fibre Disc Paper|Velcro|Disc Flaps & Mops Belts Non Woven Velcro Disc Paper Disc Application Application Application Application • Finishing wooden patterns Abrasive tools for Extensive usage in • Automobile • Grinding, various industries • Aerospace • S
Slide 26: Project TRTIYA – New Maker Expansion in SPR
CAPEX Expansion Project- Abrasives Project TRTIYA – New Maker Expansion in SPR - State of The Art Coated Manufacturing Facility - Complemented by sophisticated conversion infrastructure - TPM philosophy for sustained operational excellence in SPR
Slide 27: Operational Excellence Through TPM
Operational Excellence Through TPM Adopting 5S principles in plant management – fostering operational excellence ABK AOTS 5S Gold Award for Large Scale Industries – Bonded Hosur & Coated SPR
Slide 28: Abrasives – Drivers For Growth
Abrasives – Drivers For Growth Automobile Infrastructure Indian Automobile Industry Growth Drivers estimated to attract investments of • Govt. focus on infra projects, USD 8-10 Billion by 2023: affordable housing etc. Government • Investment on Smart Cities • Private investments on housing CAGR 9% e
Slide 29: Abrasives - Performance
Abrasives - Performance INR Million
Slide 30: Electro Mineral Division
Electro Mineral Division oe murugappa
Slide 31: CUMI – Electro Minerals Division
CUMI – Electro Minerals Division Engineering | Energy | Environment
Slide 32: CUMI EMD - Facilities
CUMI EMD - Facilities 1 2 3 1 Bauxite mines & calcination 4,5,6 2 Silicon carbide, 3 Fine powders, 4 Fused alumina 5 Zirconia Bubbles 7 6 Alumina Zirconia 7 12 MW Hydel power, Maniyar
Slide 33: CUMI EMD – Global Facilities
CUMI EMD – Global Facilities VAW - Russia VAW Russia – Silicon Carbide, 80,000 tpa Foskor Zirconia – Fused Zirconia, 5000 tpa Foskor Zirconia
Slide 34: Wide range of material processing capabilities
Processing Capabilities Wide range of material processing capabilities
Slide 35: CUMI EMD – Strategy For Growth
CUMI EMD – Strategy For Growth Innovation Value Pyramid
Slide 36: EMD – Drivers For Growth
EMD – Drivers For Growth Energy Abrasives The technological advancement in the The growth in the steel, auto and renewable energy space would drive the infrastructure segment willl propel consumption of thermal powders, Zirconia and the growth in Abrasives, which is SiC grains. The breakthrough in b
Slide 37: Venturing into Nano Materials
Venturing into Nano Materials Inauguration of ‘Boehmins & Nano Materials’ Plant at CUMI SEZ, Edapally, Kerala
Slide 38: Capacity Expansion
Capacity Expansion
Slide 39: EMD Performance
murugappa @ EMD Performance ag Year INR Million Consolidated Sales & Growth % 33% «© 34% ©«=— 35% © 38% % Sales in India FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY14 FY 1S FY 16 FY 18 FY 19 FY17
Slide 40: Industrial Ceramics
Industrial Ceramics oe murugappa
Slide 41: CUMI – Industrial Ceramics
CUMI – Industrial Ceramics SBU Industrial Ceramics Business Wear Ceramics Technical Ceramics Group Product Lines Grinding Wear Resistant Lined Equipment Engineered Metallized Ceramics Media Liners Ceramics Bulk Material Handling Fluid Handling Vacuum Interrupters Markets and Ceramic Tile/Mineral
Slide 42: Fully integrated advanced ceramics manufacturing facility- IC
Fully integrated advanced ceramics manufacturing facility- IC Lined Equipment Engineered ceramics & New (LE) Plant Metz Wear ceramics Plant & CMP Metallized ceramics (Metz) Plant
Slide 43: Process Capabilities
Process Capabilities Dry Pressing Cold Iso-static Pressing Wide range of Extrusion Ceramic processing capabilities Injection Moulding Slip Casting Metallising
Slide 44: Key Industries Served
@ Key Industries Served mutt oes KEY INDUSTRIES
Slide 45: Drivers For Growth
Drivers For Growth Transportation / EV The market for ceramic injection molded products and metallized ceramic products in Electric Vehicles and other related applications is expected to grow significantly in the next 5 years. Ceramic (Injection Moulding) Zirconia nozzles for Growth would be driven
Slide 46: Impact of Megatrends
IMPACT OF MEGATRENDS Infrastructure Mining Global Rebalancing Manufacturing • Wear Power Generation Protection Urbanisation • Metallized Healthcare Emergence of Cylinders Affluent Power • Engineered Transmission Ceramics
Slide 47: Ceramic Tape Casting & PVD by Sputtering Pilot Plant
Ceramic Tape Casting & PVD by Sputtering Pilot Plant Class 1,00,000 Clean Room Class 10,000 & Class 100 Clean Room with Pilot with Pilot Plant Tape Plant PVD by Sputtering & other related Casting Facility Equipment Facility
Slide 48: Metallized ceramics for vacuum devices - products
Metallized ceramics for vacuum devices - products For Transmission tubes For HV Relays For High Power RF systems
Slide 49: Metallized ceramics for other vacuum devices - products
Metallized ceramics for other vacuum devices - products Metallized Ceramics For Night Vision Rings Sensor elements in textile instrumentation
Slide 50: Ceramics for fluid handling
Ceramics for fluid handling Ceramics for fluid handling Transport and control of aggressive fluids Exceptional resistance to corrosion, erosion and abrasion Seals, plungers, pump shaft sleeves, linings, etc
Slide 51: Non – oxide ceramics: Silicon carbide
Non – oxide ceramics : Silicon carbide Non-oxide ceramics Wide range of products in Silicon carbide For Fluid handling applications, ballistic protection.
Slide 52: Aesthetic Ceramics for Corporate Awards and Gifting
Aesthetic Ceramics for Corporate Awards and Gifting
Slide 53: Super Refractories
Super Refractories oe murugappa
Slide 54: CUMI Refractories
CUMI Refractories High Temperature Protection under load
Slide 55: CUMI Refractories - Applications
CUMI Refractories - Applications Ceramic Industries Chemical Process Industries Non – Ferrous Insulators Carbon Black Aluminum Copper Zinc Sanitaryware & Tableware Fertilizer Abrasives Petro-Chem. / Refinery Iron & Steel Electro Ceramics Sponge Iron (DRI) Glass Gas-Based Cement Container. Decorative
Slide 56: CUMI Refractories - Capabilities
CUMI Refractories - Capabilities Ability to manufacture complex shapes through pressing, slip casting followed by high temperature sintering, under controlled atmospheric conditions.
Slide 57: Opportunities For CUMI Refractories
Opportunities For CUMI Refractories
Slide 58: Opportunities For CUMI Refractories
Opportunities For CUMI Refractories
Slide 59: Ceramics (IC + Refractories) Performance
Ceramics (IC + Refractories) Performance INR Million
Slide 60: Finance
Finance oe murugappa
Slide 61: Revenues, Margins & Growth
Revenues, Margins & Growth INR Million
Slide 62: Performance Ratios - Returns
Performance Ratios - Returns
Slide 63: Performance Ratios – Debt to Equity
Performance Ratios – Debt to Equity
Slide 64: CUMI - Making Technology Matter
CUMI - Making Technology Matter - Technology - Design - Solutions - Processes - Services
Slide 65: Making Technology Matter – DSIR Labs
Making Technology Matter – DSIR Labs DSIR approved R&D Surface Technology Center – The Company R&D Facility in IC Hosur Abrasives along with its subsidiaries/ JV/ associates - has set up 7 state of the art DSIR (Department of Science and Industrial Research) approved R&D centres at all its divisions
Slide 66: Making Design Matter - Research & Development
Making Design Matter - Research & Development “Systems Thinking” Approach to Design 247 IP filings as of Jan 2019 Across all business units of CUMI, there has been continuous focus of technology innovations leading to achieving a total of 247 IPs in form of Patents, Design Registrations and Trademar
Slide 67: Making Solutions Matter – IOT Elements in Products
Making Solutions Matter – IOT Elements in Products Remote Monitoring & Diagnostics For Coolants Intelligent Grinding Wheel CUMIAWARE – Wear Monitoring System
Slide 68: Making Processes Matter – TPM & IOT in Manufacturing
Making Processes Matter – TPM & IOT in Manufacturing Productivity Improvement TPM Philosophy – Manufacturing Excellence
Slide 69: Making Services Matter – Installation & Support
Making Services Matter – Installation & Support
Slide 70: CUMI – Making Engagements Matter
CUMI – Making Engagements Matter
Slide 71: CUMI- Engagement Score- 2018
CUMI- Engagement Score- 2018 CUMI’s overall engagement score is now 68%, up 59% in 2014
Slide 72: Making Innovations Matter - CUMIND
Making Innovations Matter - CUMIND • Graphic Content • IP filed for Cumind Logo and Dot Structure • Launch Of CUMIND Hub in CUMIND 2018 selected locations.
Slide 73: Connect – In-House Journal of CUMI
Connect – In-House Journal of CUMI
Slide 74: Making Partners Matter
Making Partners Matter Abrasives – Ratna Dealers Meet
Slide 75: Making Brands Matter
Making Brands Matter IMTS Chicago
Slide 76: Making Brands Matter
Making Brands Matter Subcon Engineering Show, Birmingham, UK and Tranmissione Exhibition, Brescia, Italy
Slide 77: Making Brands Matter
Making Brands Matter MSV – BRNO, CZECH REPUBLIC ELMIA SUBCONTRACTOR – SWEDEN 1-5 OCT 2018 12-15 NOV 2018
Slide 78: Making Brands Matter
Making Brands Matter IMTEX 2019 - Bangalore Full Range Precision Abrasives Player
Slide 79: Making People Matter
Making People Matter Conference on Digital Quality Management Conference on Aerospace & Defence Manufacturing Technologies
Slide 80: Making People Matter
Making People Matter CUMI IC has been awarded the Gold Certification in Manufacturing Excellence Award by Frost & Sullivan
Slide 81: Making People Matter
Making People Matter ICAI Excellence Award in Financial Reporting for FY 2018
Slide 82: Making People Matter
Making People Matter ABK AOTS 5S Gold Award for Large Scale Industries
Slide 83: Making Society Matter
Making Society Matter CSR : Health, Education & Infrastructure Education CUMI supports Vellayan Chettiar School through AMM Foundation. Various units have signed MOUs with academia and train the students in plant, prime example being CCSD, which helps students to learn and get placed. Community Grou
Slide 84: Making Youth Matter: CCSD
Making Youth Matter : CCSD – Honing Skills, Shaping Lives! HOSUR • All 66 Trainees at Hosur Successfully passed out and secured 74% minimum marks. • Batch Topper secured 643 out of 700 (91.86% - Bettered earlier Topper Marks 611 ) • Score % of Toppers in Each Trade : Fitter -89.43%, Turner – 90.29%,
Slide 85: Making Youth Matter: CCSD
Making Youth Matter : CCSD - Honing Skills, Shaping Lives! Our CCSD Trainee in Electrician Trade Mr. E. Shankar declared Winner in the 98th All India Competition of Apprentices held at Ludhiana He scored 411 out of 500 ( 82.2% )
Slide 86: Making Youth Matter: CCSD
Making Youth Matter : CCSD – Honing Skills, Shaping lives! • New Facility for CUMI Centre for Skill Development – Hosur to be inaugurated in Feb 19 • Facility to house infrastructure to train 180 students in 5 trades
Slide 87: Corporate Social Responsibility – Empowering Youth
Corporate Social Responsibility – Empowering Youth Session on ‘Life Skill Education’ was organised at ASK Centre EMD, for children under educational sponsorship scheme Mr. Zach, Professional Trainer from USA took a session on Communication. Ms. Ally Sebastian, Counsellor at Sahrudaya Counselling Cen
Slide 88: Corporate Social Responsibility – Empowering the girl child
Corporate Social Responsibility – Empowering the girl child Awareness Sessions on Good Touch Bad Touch and Menstrual hygiene for school children No of beneficiaries - 3019
Slide 89: Corporate Social Responsibility – Kerala Flood Relief
Corporate Social Responsibility – Kerala Flood Relief Flood Days * 15th Aug-18th August Impact Count Death 483 People Missing 14 House –Fully Damaged 1 Districts Affected 12 Area Affected 60% Dams opened 35 House-Partially damaged 1 People Evacuated 10 Lakhs Monsoon Surplus 257 % House Fully Submerg
Slide 90: CUMI – An Investor Friendly Organization
CUMI – An Investor Friendly Organization • 42.42% held by the Murugappa Group, 29.34% held by FII’s, MF, PE, Insurance Cos • 64 years of unbroken track record of Profit and Dividend • Six Bonus Issues since inception – 89% of the current Equity is by way of capitalization of Reserves • Growth over t
Slide 91: Performance is our passion
/ CUMI www.cumi-murugappa.com | www.cumiabrasives.com 110 years of Existence Creating Value is our driving force Performance is our passion
Carborundum Universal — Investor Presentation (February 2019) on 6ix