Triveni Engineering and Industries Limited · NSE:TRIVENI
Triveni Engineering and Industries — Investor Presentation (November 2010)
31 slides from Triveni Engineering and Industries's investor presentation, November 2010
Slide 1: Corporate Presentation FY 2010-11
Corporate Presentation FY 2010-11 1
Slide 2: Two Distinct Businesses
Two Distinct Promoter Eminent and Businesses – driven, independent Pan India professionally Sugar & Board of Presence managed Engineering Directors company 2
Slide 3: Revenue by Engineering and Sugar Businesses
25000 8265 20000 Total Engg 17% 30% 6482 15000 Sugar 14% ` in millions 6529 5636 3368 10000 1947 16411 14017 10774 5000 9269 9126 7864 0 FY05 FY06 FY07* FY08 FY09 FY10 Engineering Business Sugar Business FY07* - 12 months period from Oct 06 – Sep 07 3
Slide 4: Engineering Business: Turbine, Gears, Water
Turbine Gears Water Business Business Business • Market leader in • Largest • A leading player in steam turbines manufacturer of the high upto 30 MW size High speed gears technology water & gear boxes in & waste water India business 4
Slide 5: Manufacturing Plants
Manufacturing Plants Noida Naini Ahemdabad Raipur Kolkata Nagpur Latur Mumbai Pune Hyderabad Kolhapur Vijaywada Bangalore Corporate Office Manufacturing Facilities Mysore Marketing and Service Centres 5
Slide 6: Engineering Business Revenue by Segment
6000 5640 5092 5000 4752 4639 4000 ` in millions 3000 2780 2000 1626 1610 997 1014 1000 605 668 769 733 450 400 239 138 82 0 FY05 FY06 FY07* FY08 FY09 FY10 Water Gears Turbines FY07* - 12 months period from Oct 06 – Sep 07 6
Slide 7: Turbine Market Characteristics and Demand Drivers
Market Characteristics - • Premium on shorter deliveries • Purchase decision based on high levels of technology, efficiency & lower life cycle cost • Price sensitive market • Strong servicing capabilities and lifetime relationship with the customer is expected • Robust designs, typically suited for
Slide 8: Power Demand Gap and Co-generation Potential
Gap between power Additional power Costly fuel Current requirement in the requirement and source to industrial power country estimated at generation getting influence consumption – 78,700 MW in 11th five wide replacement generation gap year plan; incentivisation - Growing renewable of DG to TG to be
Slide 9: Water Market Opportunity
• Rising Water Demand to • Annual estimated market for • India is capable of becoming a double by 2025 from 2000 Water/Waste Treatment is ~ ` 54 global base for outsourcing in the levels billion with an estimated growth future – low cost manufacturing of 13% between 2010-13 and substantial skilled h
Slide 10: Turbine Business: Business and Technical Perspective
Business Perspective Technical Perspective Cater to wide range of customers across Highly efficient turbines with indigenously segments like sugar, paper, co- developed tapered twisted blades. gen, textiles, pharma, steel, IPP Consistently upgrading the product range and efficiency. Fully integrated
Slide 11: Customer Care and Refurbishing
Customer Care Refurbishing An extensive network of 13 Service centres Full Speed vacuum Balancing Tunnel for balancing turbines, compressors/alternators up to 150 MW A strong team of 150 service professionals Refurbishment & Residual Life Assessment of all makes of turbines, compressors etc. ; Overh
Slide 12: Turbine Business Financial Performance
Net sales for FY 10 stood at ` 5.64 billion, an increase of 19% from ` 4.75 billion in FY 09. 25 5640 26 5500 24 PBIT for FY 10 at ` 1.3 billion – growth of 13% 23 compared to FY 09 5000 23 5092 4752 21 During the year, the order intake has been 4500 4639 robust and significantly higher at ` 5
Slide 13: Turbine Business: Future Perspective
Future Perspective Strong Research & Development Consistent product range expansion – higher MW, higher pressure, higher temperature turbines Spares & Services to form higher proportion of revenues Refurbishment of all makes of turbines including overhauling & troubleshooting A dedicated in-house Tr
Slide 14: Important Business Announcements
Important Business Announcements • Board of Directors approved the demerger of Turbine • Triveni formed a Joint Venture with GE for the turbine Business from Triveni Engg & Ind Ltd on 12th March business on 15th April 2010. GE Triveni Ltd. 2010 headquartered in Bengaluru, will design, manufacture, s
Slide 15: Gears Business Perspective
Business Perspective Triveni is in the business of design, manufacture and marketing of gears and gearboxes About 60% market share in complete high speed gear market across applications up to 70 MW capacity and speeds of 70,000 rpm The high speed gear range for steam, gas, pumps and compressor appli
Slide 16: Gears Business Financial Performance
1015 35 1000 34 Net sales for FY 10 stood at ` 1.01 billion, an 33 increase of 389% from ` 733 million in FY 09. 800 30 PBIT for FY 10 at ` 345 million – growth of 42% 769 compared to FY 09 29 733 During FY 10, the total order in-take has been ` 1.1 605 PBIT Margins (%) 600 25 billion, an incr
Slide 17: Gears Business: Future Perspective
Future Perspective Focus on product development in high value added low speed applications Installation of state-of-the-art manufacturing equipments such as CNC vertical grinder, CNC vertical turret lathe, 5-axis horizontal boring machine etc. Revenue growth & margin growth through Product diversifi
Slide 18: Water Business Perspective
Business Perspective Visible potential for water & waste water business in view of anticipated stringent environmental norms and scarcity of water Market is increasing substantially in all areas- municipal and industrial with major jobs using high technology solutions Technology association with Sie
Slide 19: Water Business Financial Performance
1620 1610 17 16 1520 Achieved a 61% increase in turnover during FY 10 16 compared to FY09. CAGR of 72% in sales during the 1420 15 last six years. 1320 15 Healthy order-intake of ` 5.02 billion during FY 10 1220 which is 226% higher compared to FY 09 1120 14 997 13 The business got many large
Slide 20: Water Business: Future Perspective
Future Perspective Key technology applications to be used in these sectors are desalination (power & municipal), high purity system, condensate polishing units (both for large sized power plants), biological treatment with nutrient removal (for municipal sector), Anaerobic Treatment (ethanol manufac
Slide 21: Sugar Business, Co-generation and Distillery
Sugar Co-generation Distillery Business Business Business • One of the largest • 68 MW of state- • One of the largest sugar producer in of-the-art co- single stream India – 61000 generation facility; molasses based TCD capacity with one 22 MW distillery in the plant having multi- country fuel capabi
Slide 22: Global and Indian Sugar Industry
GLOBAL SUGAR INDUSTRY • Global sugar industry, after being deficit for two consecutive years, is expected to have higher production during 2010-11 season. • As per preliminary estimates, sugar production in Brazil for 2010-11 expected to increase by 19% to over 41million tonnes (raw value). • Due to
Slide 23: Sugar Cycle: Profitability Over Time
Profitability Margins : Profitability Margins : Sugar Sugar Decline in sugarcane utilization for sugar Power / Ethanol Power / Ethanol Decline in area under production sugarcane cultivation, lower Lower sugar production production, lower sugar Delayed payment to availability farmers, high sugarcane
Slide 24: Indian Sugar Demand-Supply Balance
(Figures in million tonnes) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Est) Opening Stock as on 1st Oct. 4.0 4.3 11.0 10.4 4.4 5.6 Production during the Season 19.3 28.3 26.3 14.5 18.9 24 Imports - - - 2.5 4.0 0 Total Availability 23.3 32.6 37.3 27.4 27.3 29.6 Off-take I) Internal Consumption
Slide 25: Sugarcane Area, Yield and Production
09-10 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 (P) Cane Area (Million 2.14 2.05 2.15 2.40 2.30 2.04 2.31 2.66 2.85 2.08 1.98 Hectare) Average Yield (Tonnes/ 57.58 54.40 57.85 55.96 54.98 60.65 58.32 59.59 56.44 52.3 55.0 Hectare) Sugarcane Production 123.24 111.74 124.49 134.53 12
Slide 26: Sugar Units in Western Uttar Pradesh
• Major facilities located in cane rich areas of Western Uttar Pradesh with more than 80% cane intensity – fertile and irrigated land Deoband Chandanpur (14,000 TCD) (6,000 TCD) • Sugar cane catchment area for all sugar units under canal irrigation – both in Western & Rani Nangal Central Uttar Prade
Slide 27: Sugar Business Performance
•All seven units together crushed 4.59 million tonnes of sugar • Increased cost of production, impact of higher levy obligation cane during 2009-10 - a growth of 23% over previous season (from 10% to 20%) and prevailing sugar prices are not adequate to meet the cost of production resulting in loss f
Slide 28: Co-generation Business Performance
1470 45 1467 68 MW of co-generation capacity ; three plants in 1370 1339 two sugar units 41 40 1270 Co-gen business achieved net sales of ` 1.5 billion 1174 and PBIT of ` 270 million in FY 10. 1170 35 The co-generation units generated 220 million units 1070 34 of power and exported 151 million
Slide 29: Distillery Business Performance
Integration of Sugar operation – value addition of With the estimation of higher sugarcane crushing for the by-product - molasses coming season, the molasses production would also be high resulting in higher alcohol production. 160 KLPD distillery, commissioned in April 2007, is one of the lar
Slide 30: Long-term Corporate Vision
Our long-term corporate vision is to: (a) Maintain a Top 3 position in each of our businesses within the applicable market segment The market segment for the Turbines business is the global market while for the sugar business it is India (b) Create value and delight for our customers and stakeholder
Slide 31: Disclaimer
Disclaimer Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements For more details contact: include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs
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