Star Cement Ltd. · NSE:STARCEMENT
Star Cement — Investor Presentation (May 2017)
31 slides from Star Cement's investor presentation, May 2017
Slide 1: Star Cement Limited Investor Presentation
Star Cement Limited (SCL) (operating company under erstwhile Star Ferro & Cement Ltd, under process of listing on BSE & NSE, post demerger from Star Ferro & Cement Ltd) Investor Presentation Cementing growth. Branding success. May 2017
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
Slide 3: We are expanding the growth horizon and creating a differential
From North East to East From Growth to Efficiencies From Commodity to Brand From Capacities to Capabilities We are expanding the growth horizon and creating a differential. 02
Slide 4: The Birth of a Star
The Birth of a Star 2001 The Star was born 2005 Operations commenced Largest Cement manufacturer in NER Emerging market player In Eastern India (WB, Bihar & Jharkhand) Strategically located Cement Manufacturing Facilities Cement Business operates under SCL & its subsidiaries Star Anti-
Slide 5: Counting the Stars
Counting the Stars ₹ 1755+ Crores ₹ 1752 Largest private Crores sector investment Turnover recorded in FY in North Eastern Region 2016 -17 (NER) Highest Market share in NER – 1,00,000+ biggest pie in the region No. of technical * touchpoints provided to the end-users # ~41 % CAGR of PAT over last 5
Slide 6: The Star Bandwidth
The Star Bandwidth 25.1% 74.9% Public Star Cement Ltd. (Formerly Cement Promoters Manufacturing Company Ltd.) (‘SCL’) 100% 51% 87.5% 12.5% Megha Technical & Engineers Star Cement Meghalaya Ltd. Meghalaya Power Ltd. Pvt. Ltd. (‘MTEPL’) (‘SCML’) (‘MPL’) 05
Slide 7: Strong NER Roots
Strong NER Roots Promoters have strong links with NER - a crucial factor behind SFCL’s success Mr. Sajjan Bhajanka, Chairman & MD Mr. Sanjay Agarwal, Managing Director Experience Experience Graduate with 47 years of industry experience in Plywood, Graduate with 32 years of industry experience La
Slide 8: Professional Management
Professional Management Key Management personnel running the organization in a very professional manner Mr. Pankaj Kejriwal, Executive Director Mr. Sanjay Kr. Gupta, CEO Education Education & Experience Chemical Engineer with experience of over 17 years FCA with varied experience of over 24 year
Slide 9: Journey of a Star
Journey of a Star Cumulative capacities at the end of financial years FY 10-11 FY 04-05 FY 07-08 0.80 FY 12-13 Clinker (MMT) 0.40 0.60 2.60 FY 14-15 2.60 Cement (MMT) FY 16-17 FY 07-08 4.40 FY 04-05 FY 12-13 1.06 0.40 3.00 As on Mar’17 FY 10-11 FY 15-16 1.27 3.70 FY 12-13 FY 14-15 Power (MW) FY 09-1
Slide 10: What Makes Star Cement Tick?
What Makes Star Cement Tick? Dependable Strategic Location, Well-established Adequate plant raw material Beneficiaries of brand in NER with Proximity to Raw capacities to cater source and easy fiscal incentives strong consumer Materials & Market to the market availability of focus power Market Super
Slide 11: Location Advantage: The Game Changer
Location Advantage: The Game Changer Arunachal Pradesh Sikkim Itanagar Gangtok 110 kms Siliguri 2 3 Dispur Assam Nagaland (Guwahati) 220 km Kohima Patna Shillong Our strategically located Bihar Meghalaya 1 plants cater to the Imphal Eastern & North Eastern Manipur Regions, giving us strong customer
Slide 12: The Star Logistics Edge
The Star Logistics Edge Limestone mines are located within 2-3 kms of our plants, providing strong raw material linkage, easy accessibility and uninterrupted supply of raw material Coal is available in close proximity, ensuring cost and operational efficiencies Availability of coal also provid
Slide 13: The Star Logistics Edge
The Star Logistics Edge Untapped NER and Eastern markets have strong potential for further growth Over the last few years, cement arrivals in NER from mainland players has come down to 10% from 30% - owing to strong location advantage for the existing players in NER Strong entry barriers for n
Slide 14: The Star Fiscal Edge: Financial Incentives
The Star Fiscal Edge: Financial Incentives SCL’s plants enjoy many fiscal benefits granted by Central / State Governments Exemption Balance Exemption period** SCML SCL-GGU SCL-LMS MTEPL 100% under Section 80 IE, Income Tax 5 years 5 years - 1 years subject to MAT Excise Duty on - Clinker 75% 6 years
Slide 15: Powering Growth
Powering Growth Power Availability of best quality low cost coal ensures increased benefits for power plant Captive power ensures non-dependency on grid power Fly ash generated from power plant is used in cement plants at almost nil cost 14
Slide 16: The Mark of a Star: Branding Success
The Mark of a Star: Branding Success For Star, cement is not merely a commodity and therefore, we do not sell cement, rather we build and sell brands Star as a Brand have a very high recall value, enabling repeat customers STAR CEMENT is the most preferred brand in NER and is witnessing consis
Slide 17: Awards and Accolades
Awards and Accolades Gold award (Alternative Media Transport Excellence Award Award for ”Best Practices in Award for “Fastest Growing – Any single execution on non- 2016 - National Award in Employee Engagement“- Company” above Rs. 1000 conventional OOH) and Silver Mining as well as in the National H
Slide 18: The Star Shines Bright and Strong
The Star Shines Bright and Strong Enjoys a leadership position in the North East. Gradually increasing share in the Eastern region through concerted efforts Strong dealer and distributor network built over the years, steering year-on-year growth, enabling leadership position in market 28 26.3
Slide 19: Marketing the Star Brand
Marketing the Star Brand Innovative strategy, large distribution network, pioneering initiatives Pioneers in initiating distribution through direct network, i.e. Dealers rather than C&F agents in NER Building the Brand aggressively and innovatively in the markets of West Bengal, Bihar & Jharkhan
Slide 20: Marketing the Star Brand
Marketing the Star Brand Innovative strategy, large distribution network, pioneering initiatives Technical assistance to retail consumers to ensure better connect - drives demand and builds brand confidence Value-enhancing technical marketing for customers On-site technical support to customers
Slide 21: Retail-driven Marketing strategy
Retail-driven Marketing strategy Distribution network spread across 11 states Distribution Network While our peers adopted the wholesaler Retailers 9,300+ model, we have built on our strong network Dealers 2,700+ of partners over the last decade The result – Deeper penetration, greater Robust
Slide 22: CSR-Sonapur, Assam
CSR-Sonapur , Assam Tailoring & Embroidery Training Institute for enhancing the skill of 400 women in a year HEALTH & SANITATION Construction of 100 nos. of household toilets Provided preventive and curative health care services to community people through health camps, regular health check up, et
Slide 23: CSR-Lumshnong, Meghalaya
CSR-Lumshnong, Meghalaya CSR HEALTH & SANITATION EDUCATION A school for the children of migrant workers Provided preventive and curative health Induction of teachers in care services to community round the year schools Awareness programme on family planning, Scholarship program for use of toil
Slide 24: Opportunities Beckon… and Star's Journey Continues
Opportunities Beckon… and Star’s Journey Continues 23
Slide 25: East India: Huge Untapped Potential
East India: Huge Untapped Potential Total Capacity (MMT) Total Capacity (MMT) and capacity utilization (%) 60 45 41 90 53 49 40 36 37 50 45 85 33 85 43 35 31 84 29 40 37 30 80 80 34 25 77 76 77 30 75 20 20 15 70 10 10 65 5 0 0 60 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 10 FY 11 FY 12 FY 13 FY 14 FY 1
Slide 26: East India: Huge Untapped Potential
East India: Huge Untapped Potential Per capita cement consumption in East is the lowest, Per Capita cement thus underlining huge potential for growth consumption (kgs) North Housing shortage in Urban India - Of the total housing Housing shortage in Urban & Rural shortages in urban India, East alone
Slide 27: North East Region: An Expanding Opportunity Landscape
North East Region: An Expanding Opportunity Landscape 8 states with abundant Separate Ministry for Special Category States Natural Resources with NEIIPP, 2007 & the Region – Doner Limestone, Coal, Dolomite, (Development of North Eastern State Policies supporting Quartz, Granite, Sandstone, Region) t
Slide 28: North East Region: Opportunities Galore
North East Region: Opportunities Galore 12 11 11 11 Five-year 2007- 2012- 2017- 10 Plans 2012 2017 2022 10 9 NER Cement 8 7.12 Capacity (Mn 7 7 7.14 Tons) 6.3 6.6 NER GDP 5.4 5.82 6.02 10% 13.7% 16.4% 6 Growth NER Cement 4 Demand (Mn Tons) NER Per 2 Capita 8.6% 12.4% 15.2% growth 0 FY 10-11 FY 11-12
Slide 29: The Star is Set to Shine Brighter: More Frontiers of Growth
The Star is Set to Shine Brighter: More Frontiers of Growth Further growth in high potential areas by leveraging operational and financial efficiencies Seize the growth opportunities in NER, Eastern Region – partner the government's initiatives to boost infrastructure Strengthen and expand dea
Slide 30: The Numbers Speak: Successful Financial Track Record
The Numbers Speak: Successful Financial Track Record In ₹ Crores 2013-14 2014-15 2015-16 2016-17 Q4 FY 17 Q4 FY 16 Gross Sales 1,029 1,473 1,763 1,752 505 578 Net Sales 1,028 1,430 1,715 1,728 519 563 C O N S O L I D AT E D F I N A N C I A L S EBIDTA 237 437 401 411 171 127 EBIDTA Margin (%) 23% 31%
Slide 31: Thank You
Thank You Mr. Sanjay Kr. Gupta +91 33 24484170 investors@starcement.co.in www.starcement.co.in