Oricon Enterprises Limited · NSE:ORICONENT
Oricon Enterprises — Investor Presentation (June 2017)
41 slides from Oricon Enterprises's investor presentation, Jun 23, 2017
Slide 1: Investor Presentation – June 2017
Investor Presentation – June 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by Oricon Enterprises Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
Slide 3: At a Glance
At a GLANCE • Engaged in manufacturing of Pentanes, Liquid Colorants. Owns about 1 acre land at Oricon prime location in Worli, Mumbai Enterprises Ltd • Appointed Mr. Adarsh Somani as Joint Managing Director w.e.f. 1st June 2017 (OEL) • Acquired 70% equity stake in Oriental Containers Ltd w.e.f 27th
Slide 4: Co-operation agreement with Pelliconi C. & S.P.A, Italy
Co-operation agreement with PELLICONI C. & S.P.A, Italy Oriental Containers The agreement is to Ltd entered into a jointly develop closure Co-operation business in Indian agreement with market by Pelliconi C. & S.P.A, implementing new Italy business line Pelliconi is one of the world’s leading compa
Slide 5: Expanding in Packaging & Closures
Expanding in Packaging & Closures ▪ To manufacture new range of packaging products ▪ Plant to be set up in the state of Odisha New Initiatives ▪ Plant to be set up in 2 phases ▪ Investment expected to the tune of Rs. 1,000mn ▪ Entire Investment to be made from internal accruals ▪ Completed Expansion
Slide 6: Oricon Enterprises Ltd (OEL)
Oricon Enterprises Ltd (OEL)
Slide 7: Diversified Business
Diversified Business ➢ Engaged in trading and manufacture of Pentane & others ➢ Product Portfolio: ➢ NORMAL PENTANE, used as a specialty solvent for extraction of paraffin from kerosene ➢ COMMERCIAL PENTANE, used in manufacture of Expandable Polystyrene (EPS) ➢ CYCLO PENTANE ISO PENTANE BLEND, used
Slide 8: Oricon Properties Pvt Ltd
Oricon Properties Pvt Ltd 100% subsidiary of OEL
Slide 9: Monetizing Real Estate in due course
Monetizing Real Estate in due course 2 acres at Worli, Mumbai ➢ Housed in Oricon Properties Pvt Ltd – 100% subsidiary of OEL ➢ Plans to re-develop for Residential Purposes ➢ Received Commencement Certificate (CC) from Municipal Corporation of Greater Mumbai for the redevelopment to launch project 1
Slide 10: Signed JDA with Subsidiary of Indiabulls Real Estate
Signed JDA with Subsidiary of Indiabulls Real Estate • Entered into Joint Development Agreement (JDA) with Indiabulls Infraestate Limited • Indiabulls Infraestate Limited, a majority owned subsidiary of the Indiabulls Real Estate Limited, is developing marque project “BLU” at Worli, Mumbai • JDA to
Slide 11: Oriental Containers Ltd
Oriental Containers Ltd 100% subsidiary of OEL
Slide 12: Led by Experienced Management
Led by Experienced Management Mr. Rajendra Somani – Managing Director ➢ Promoter of the company, with over 47 years of experience ➢ Associated with OCL since inception ➢ Successful track record of setting-up and operating several new businesses under Parijat Group ➢ Also, Managing Director of Oricon
Slide 13: Competitive Edge
Competitive Edge Manufacturing units 5 Complete range of Metal and Plastic Caps & Closures at Murbad, Maharashtra & Goa - 2 Brands Strategically Located Facilities close to ports Innovation Market leader in Indian caps and & No.1 closures Industry Technology Strong presence across Globe through expo
Slide 14: Long and Sustained Customer Association
Long and Sustained Customer Association Higher installed capacity than the closest three domestic competitors combined Long Track record of technological adoption, process implementation & product innovation Long standing customer relationships across the entire product range Significant presence in
Slide 15: Complete Range of Caps & Closures
Complete Range of Caps & Closures Plastic Closures - “High Growth Business” Metal Closures – “Stable Business” ➢ Type: Crown Caps ➢ Type: Plastic Closure - CSD ➢ Brand : Hycrown ➢ Brand: Bevseal - CSD ➢ End - User Industry: CSD, Fruit ➢ End - User Industry : Carbonated Juices, Beer, Ketchup Soft Dri
Slide 16: Forefront of Technology & Innovation
Forefront of Technology & Innovation ➢ OCL pioneered the implementation of new global technology in caps and closures in India ➢ Developed and introduced four new plastic closures in the past three years ➢ Developed and introduced new crowns to economize cost Technology 1st To Awards & Introduce Acc
Slide 17: Strong Customer Profile
Strong Customer Profile Diversified ➢ Comprises of blue chip global companies in food & beverage (F&B), alcoholic beverages, fast moving consumer goods (FMCG) and pharmaceutical industries ➢ Key customers command leadership position in their respective industries ➢ Coca -Cola – Leader in CSD industr
Slide 18: Awards & Recognitions
Awards & Recognitions Select Client Testimonials Highlights “We are the single largest importer of crown caps and plastic closures for juice and carbonated OCL has received various awards and recognitions for its contribution to the beverages in Bangladesh. Our association with OCL packaging industr
Slide 19: Strategic Location of Manufacturing
Strategic Location of Manufacturing Plastic Closure Facility ➢ Established in 1998, at Goa Plastic Closures Annual Capacity ➢ Situated in close proximity to Murmugao Port, ~20km away Plastic – CSD Caps 4,500 mn caps ➢ Dedicated to manufacturing of plastic closures Plastic– wf/hf Caps 1,250 mn caps ➢
Slide 20: Growth Opportunities
Growth Opportunities Export Opportunities ➢ Most of key export markets significantly under-served ➢ Increasing penetration of MNC in these markets provide strong potential for future growth Growing Plastic Closures Demand ➢ Industry trend shifting towards plastics with increasing manufacturing of ca
Slide 21: Capitalizing on Growth Opportunities
Capitalizing on Growth Opportunities ➢ Global containers & Packaging market valued at Plastic Closure Production Capacity (#) USD 740 bn, estimated to grow at 3.5% CAGR over 2015-2022 8.0 ➢ Indian CSD Industry valued at USD 2.4 bn, billion estimated to grow at 8% CAGR over 2013 - 2018 6.45 ➢ Indian
Slide 22: Financial Indicators
Financial Indicators Plastic CAGR +22% Rs.Crs CAGR +6% Metal 394 406 60 378 56 50 303 311 Revenue 49% 50% EBITDA 53% 36 42% 47% 27 58% 51% 50% 47% 53% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 +690 bps CAGR +66% 15.8% 20 16 19 EBITDA Margin% 13.8% 14 12.6% 11.6% 12 13 Net Profit 10 8.9% 8 6
Slide 23: United Shippers Ltd
United Shippers Ltd 64.29% subsidiary of OEL
Slide 24: Led by Professional Management
Led by Professional Management Mr. Sevantilal Jivanlal Parekh – Chairman & Managing Director ➢ Promoter of the company ➢ With over 50 years of experience across industries including shipping, construction, manufacturing, investment and finance Mrs. Sujata Parekh Kumar – Joint Managing Director ➢ Pro
Slide 25: Integrated Marine Logistics Services
Integrated Marine Logistics Services Chartering of Lighterage of Barging Ships Cargo Charter (voyage & Transfers Cargo Movement of time chartering of onto a smaller cargo to port vessels) vessel / barge on barge Transport – Road Warehousing Stevedoring & Rail Last mile transfer Warehouse Cargo Unloa
Slide 26: Corporate Structure
Corporate Structure United Shippers Ltd USL Bulk Shakti Shipping USL NMM USL Logistics Clearing Shipping Logistics DMCEST Pte. Ltd Pvt. Ltd Agency Pvt. Ltd Ltd UAE Singapore Mumbai Mumbai Bedi Subsidiary – Subsidiary – Subsidiary – Subsidiary – Subsidiary – 100% 100% 100% 100% 100% Primary Primary P
Slide 27: Subsidiary: USL Shipping DMCEST
Subsidiary : USL Shipping DMCEST • Set-up in 2004, as 100% Subsidiary of United Shippers Ltd • Based and registered in Dubai Maritime City, Dubai • Bulk Shipping Pte. Ltd – 100% subsidiary of USL DMCEST, registered in Singapore • Engaged in chartering vessels for various clients, handling full chart
Slide 28: Subsidiary: USL NMM Logistics Ltd
Subsidiary : USL NMM Logistics Ltd • Set-up in 2006, as 100% Subsidiary of United Shippers Ltd • Engaged in business of handling cargo by operating “Grabs” on grabless vessels • Owns 13 SMAG Radio Remote controlled Grabs of different variants • Volumes handled - 2.28 Lakh Metric Ton in FY17 • Revenu
Slide 29: Subsidiary: USL Logistics Pvt Ltd
Subsidiary : USL Logistics Pvt Ltd • Set-up in 2011 • Incorporated with purpose of construction and operating of Floating Crane Vessel • Facilitates handling cargo in mid-sea for discharging of cargo from grabless vessel • 1st Floating Crane Vessel construction completed and operational since 2012 •
Slide 30: Subsidiary: Shakti Clearing Agency Pvt Ltd
Subsidiary : Shakti Clearing Agency Pvt Ltd • Acquired 100% equity stake in Shakti Clearing Agency Pvt Ltd • Subsidiary of USL wef 28th March 2014 • Shakti Clearing Agency has exclusive license to operate 90 meters jetty and back-up area at Bedi Port, Gujarat • Handles dry bulk cargo • USL has been
Slide 31: Servicing clients with Presence in 3 states
Servicing clients with Presence in 3 states Presence across Ports in Gujarat • Navlakhi • Bedi • Sikka • Sanghipuram • Singach • Magdalla • Bhavnagar Presence across Ports in Gujarat Maharashtra • Dahanu Maharashtra Presence across Ports in Tamil Nadu Tamil • Tuticorin Nadu 31
Slide 32: Volume growth supported by strong fleet
Volume growth supported by strong fleet Equipment Fleet Size (#) Volume Handled (Million MT) Revenue (Rs.Crs)# As on 6.3 FY10 162 Equipment March 31, 2017 7.0 FY11 240 Self Propelled 34 7.8 FY12 312 Barges 11.9 FY13 402 Excavators 52 12.9 FY14 380 Payloaders 50 12.6 FY15 412 Dumpers 123 9.9 FY16 299
Slide 33: Investments in Private Jetty
Investments in Private Jetty Owns Private Jetty at Navlakhi Port, Gujarat ➢ Became operational in April 2000 with an investment of ~Rs. 5.1 Crs ➢ Initially, USL had sole right to use jetty for 10 years, which then got extended for 5 years by Gujarat Maritime Board in 2010 and further extended for 5
Slide 34: Growth Opportunities
Growth Opportunities Minor Ports growing faster than major ports ➢ Gaining volume share and a major chunk of traffic shifting from major ports to non-major ports ➢ Minor ports contributing ~44% of total traffic in FY15 Infrastructure development driving demand for core commodities ➢ Special Economic
Slide 35: Capitalizing on Growth Opportunities
Capitalizing on Growth Opportunities Gross Fixed Assets# (Rs. Crs) ➢ Investing in Equipment fleet Rs.245 Rs. 236 Crs Crs ➢ Strengthen Execution Capabilities to offer: Rs. 259 Crs ➢ End-to-end logistics Solutions Rs. 231 ➢ Discharge Guarantees Crs Rs. 221 ➢ Improved Product handling Crs ➢ Guaranteed
Slide 36: Consolidated Financial Highlights Oricon Enterprises Ltd
Consolidated Financial Highlights Oricon Enterprises Ltd
Slide 37: Consolidated Profit & Loss
Consolidated Profit & Loss Rs. Crs Q4 FY 17 Q4 FY 16 Growth FY17 FY16 Growth Total Income 340 278 23% 1,217 1,194 2% Consumption of RM 56 57 204 226 Purchase of Traded Goods 70 54 320 271 Increase/Decrease in stock trade -1 10 -3 15 Employee Benefit Expenses 21 17 74 72 Charter Freight Charges 26 15
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Crs. Mar-17 Mar-16 Rs. Crs. Mar-17 Mar-16 Shareholder’s Fund 683 644 Non-current assets 931 1115 Share capital 31 31 Fixed assets 622 892 Reserves & Surplus 652 612 84 70 Long-term loans and advances Minority Interest 153 180 Other non-current assets 226 152 Non-curren
Slide 39: Segment Highlights
Segment Highlights Rs. Crs FY17 FY16 FY17 FY16 FY17 FY16 Revenue EBIT EBIT % Packaging 368 406 29 30 8 7 Logistics 387 393 17 18 4 5 Automobiles _ 377 308 4 -3 1 _ _ Others 36 58 -2 3 39
Slide 40: Dividend Track Record
Dividend Track Record Dividend per Equity Share (Rs.) 0.50 0.46 0.44 0.44 0.44 0.44 0.36 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total dividend of Rs.0.46 per share of Rs. 2 each 40
Slide 41: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Oricon Enterprises Ltd. Strategic Growth Advisors Pvt. Ltd. L28100MH1968PLC014156 U74140MH2010PTC204285 Mr. B M Gaggar Mr. Shogun Jain / Mr. Jigar Kavaiya bmg@ocl-india.com shogun.jain@sgapl.net / jigar.Kavaiya@sgapl.ne
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