Aksh Optifibre Limited · NSE:AKSHOPTFBR
Aksh Optifibre — Investor Presentation (2018)
37 slides from Aksh Optifibre's investor presentation, Aug 21, 2018
Slide 1: Aksh Optifibre Limited Corporate Presentation 2017-18
AKSH OPTIFIBRE LIMITED Corporate Presentation - 2017-18
Slide 2: Disclaimer
Disclaimer This presentation and its contentsare strictly confidential to the recipient, and is being given solelyfor your information and for your use, and may not be copied, published, distributed, reproduced, redistributed, transmitted or re-transmitted, in whole or in part, to any other person o
Slide 3: Content Index
Content INDEX 15. Ophthalmic Lens & Eyewear Market 1. Organizational & Business Offerings 2. Milestones Achieved 16. Future Demand Drivers 3. Board of Directors & Key Management 17. Upcoming Turnkey Projects 4. Shareholding Distribution 17. Capacity Expansion Plans 5. Unique Efficiencies & Initiativ
Slide 4: Organisational Structure
Organisational Structure Promoters Public 27.64% 62.36% AKSH OPTIFIBRE LIMITED WHOLLY OWNED SUBSIDIARY AKSH COMPOSITES PVT. LTD., AOL TECHNOLOGIES FZE, DUBAI AOL FZE, DUBAI Aksh Technologies (Mauritius) LTD SILVASSA AOL COMPOSITES (JIANGSU) CO. LTD., CHINA
Slide 5: Business Offerings
Business Offerings BUSINESS SEGMENTS Aksh Optifibre Ltd. Subsidiaries AKSH COMPOSITES PVT. LTD.,SILVASSA Manufacturing of: Manufacturing Services (1Stop Aksh) • OFC & FRP Rods • Optical Fibre • e-Governance Aksh Technologies (Mauritius) LTD • Optical Fibre Cable • Banking AOLManufacturing Composites
Slide 6: Milestones
Milestones 2016 2018 2000 Oct, 2016 : Acquired FRP Plant in Sept, 2018 : 4 MFK of Optical fibre Silvassa, Capacity of 2 Lac KM. capacity planned in Jafza, Dubai • IPO Listed in BSE & NSE Capex of USD 12 Mn Total issue size $6 million 2014 Apr,2018 : OFC Capacity of 0.7 Mn FKM. • Backward integration
Slide 7: Board of Directors & Key Management Personnel
Board of Directors & Key Management Personnel Dr Kailash S. Choudhari Mr. Satyendra Gupta Mr.B.R. Mr. B.R. Rakhecha Rakhecha Mr. Amrit Nath Chairman & Managing Director Deputy Managing Director Non Executive Non Independent Director Independent Director Non Executive Non Independent Director One of
Slide 8: Diverse Shareholding Distribution as on December 2017
Diverse Shareholding Distribution as on December 2017 Shareholding Mix% As on December'17 2% 0.3% 19% 51% 28% Public Promoters Corporate Bodies FIs/NRIs/OCBs Trusts As on 31st December, 2017 Particulars %age holding No. of Shareholders Public 51% 55,879 Promoters 28% 8 Corporate Bodies 19% 1,211 FIs
Slide 9: Unique Efficiencies & Initiatives
Unique Efficiencies & Initiatives Unique business competencies with backward and forward integration. FRP Market leader, with sizable global market share Loose tube speed capacity augmentation to 800 Mts/Mnts from previous 300 Mts/Mnts LED curing in FRP and Optical Fibre Online colouring and tubing
Slide 10: Vision & Mission
Vision & Mission Vision Mission Become a global leader in Strive to be the most efficient ‘OF’ & enabling simple, innovative ‘OFC’ producer through innovation smart living Sustain global leadership in FRP Rod Business To develop, engage and participate in promoting products and services which smarte
Slide 11: Global Presence
Global Presence Jaipur (Rajasthan)-Services Jafza UAE- FRP Jafza UAE- OF Reengus (Rajasthan)-FRP Jaingsu (China)-FRP Kahrani (Rajasthan) -Opthalmic Lens Biwadi (Rajasthan) - OF/OFC Company Upcoming Facility Silvassa-FRP Silvassa-OFC Customer Presence Mauritius- OFC Company Operational Facility • Glo
Slide 12: Manufacturing Facilities Overview
Manufacturing Facilities Overview Bhiwadi, India Reengus, India Optical fibre capacity 3 Mn FKM FRP capacity 2 Mn KM Optical Fibre cable capacity 9 Mn FKM Jiangsu, China Planned FRP Capacity 0.4 Mn KM Jafza, Dubai Existing FRP Capacity 1.4 Mn KM Mauritius Planned Optical Fibre capacity 4 Mn FKM Plan
Slide 13: Geographical mix
Geographical mix 62% Domestic 53% Export Rs. 2,718 Mn Rs. 2,461 Mn 38% Export 47% Domestic Rs. 1,666 Mn Rs. 2,183 Mn 2016 2017 69% 53% 62% 38% 47% 31% FY15 FY16 FY17 FY15 FY16 FY17 Domestic sales % Export sales%
Slide 14: Achieving Scale
Achieving Scale HIGHEST EVER PRODUCTION ACROSS ALL MFG FACILITIES Production Particulars Unit 2015-16 2016-17 %age Inc/Dec YTD Q3'17 CKM 68,124 86,127 26.4% 74,952 OFC FKM 20,30,614 25,62,776 26.2% 20,87,893 FRP KM 11,30,922 13,32,039 17.8% 12,33,028 Sales Particulars Unit 2015-16 2016-17 %age Inc/D
Slide 15: OFC & FRP Sales
OFC & FRP Sales OFC Revenue Mix % FY17 FRP Revenue Mix% FY17 4% 11% 3% 18% 3% 25% 10% 6% 4% 58% 15% 5% 38% Middle East Asia North America Latin America Europe China India Africa Intended to capture higher OFC share in AKSH being a FRP Market leader, with sizable diverse and fragmented export mar
Slide 16: Service Division Offerings
Service Division Offerings 1 Stop Aksh Fibre to Home • 100 Mbps Internet Speed E-Governance solutions to the public • Multiple IPTV connections • Project: e-Mitra • State : Rajasthan • District Covered : All (33 Districts) • Block Covered: All (276 Blocks) Banking Correspondent • Gram Panchayat Cove
Slide 17: Key Government Initiative
Key Government Initiative Bharat Net Digital India Bharat Net Deployment 3,00,000 2,62,947 2,54,895 2,50,000 An initiative of the Government of India to connect rural areas with high 2,00,000 speed internet network by improving online infrastructure and increasing 1,50,000 Internet connectivity. 1,5
Slide 18: Demand for Optical Fibre in India
Demand for Optical Fibre in India 35 5.5% 7.00% 5.9% 30 5.6% 6.00% 5.3% 5.2% 4.9% in million fiber kilometres 25 5.00% 4.1% 4.0% 25.9 29.2 3.9% 3.7% 20 21.4 4.00% 15 2.3% 3.00% 10 11.4 2.00% 10.3 17.8 8.9 9.2 5 7.5 1.00% 5.2 5.5 0 0.00% CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17E* OF Dom
Slide 19: Demand for Optical Fibre Cable in India
Demand for Optical Fibre Cable in India 25 6.4% 7.00% 4.5% 5.6% 4.4% 5.4% 6.00% 20 4.8% in million fiber kilometres 4.2% 5.00% 15 3.8% 3.3% 4.00% 19.5 16.2 21.2 10 2.3% 3.00% 1.9% 9.0 9.4 15.1 2.00% 8.6 5 6.6 7.2 5.7 1.00% 4.2 0 0.00% CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17E* OFC Dome
Slide 20: OF Demand in major markets - China, US & Europe
OF Demand in major markets - China, US & Europe China US Europe OF Demand in China over CY05 – CY16 OF Demand in US over CY05 – CY16 OF Demand in Europe over CY05 – CY16 53.4 400 70 60 330.3 48.4 55.6 46.2 286.1 350 44.2 60 50 48.0 250.9 38.5 300 36.9 36.9 42.6 50 38.0 37.3 40 37.0 186.8 29.9 29.8 2
Slide 21: Global Business Partners
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Slide 22: Global Business Partners
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Slide 23: Our Way Forward
Our Way Forward
Slide 24: Ophthalmic Lens
Ophthalmic Lens
Slide 25: Why Optical Lens?
WHY OPTICAL LENS ? Making India self-reliant (Make in India) No Indian manufacturers with huge capacity Handful of organized players in Indian market Deals with polymer and resins for the production Women empowerment
Slide 26: Eyewear Market
Eyewear Market $ 23 $ 34 $ 107 $ 172 Billion Billion Billion Billion 2016 2022 Est. 2016 2021 Est. Global Eyewear Market Indian Eyewear Market Current Indian spectacle lens market is INR 8,230 crores 77% of the organized sector vision care comprises expected to grow at a CAGR of 15% for the next
Slide 27: Aksh's Competitive Advantage From Chinese Imports
AKSH‘s Competitive Advantage From Chinese Imports Chinese Imports Vs AKSH Catering 95% of Indian Demand Offering better margins to Wholesalers Exporting “AB”, “B” Grade Lenses to Indian Utilisation of existing distribution network via E-mitra Market for better reach Distribution through Importers Sh
Slide 28: Future Growth Drivers with 360 Degree Sector Coverage
Future Growth Drivers with 3600 Sector Coverage Military / Aerospace Internet of things (IOT) Others (Infrastructure, IT & Healthcare Mining Fibre being the Future Growth backbone for every Drivers network , leverages the overall sector Utilities wise growth Oil & Gas Blockchain Artificial Technolog
Slide 29: Turnkey Project Details
Turnkey Project Details Key projects under the bidding process Turnkey projects Total Total KM of Expd Completion S.No Expd Tender Project Name Tender each (Including 7 years of . Opening Value Project maintenance) 1 ANDHRA PRADESH STATE FIBERNET LIMITED (APSFL). 3,100 cr. 62,000 Apr-18 Apr-26 BBNL
Slide 30: Capacity Expansion Update
Capacity Expansion Update Optical Fibre (MN KMS) Optical Fibre Cable (MN KMS) 1.7 4.0 4.5 OFC 4.5 OFC Capacity OF Capacity Capacity of 10.7 1.5 1.5 of 7 MFKM of 9 MFKM MFKM OF Capacity of 3 MFKM 4.5 4.5 4.5 1.5 1.5 1.5 Pre Sep’17 Sep’18 Pre Oct’17 Apr’18 FRP Rods (MN KMS) 0.6 1.6 FRP Capacity 0.6 of
Slide 31: Financial Indicators
Financial Indicators
Slide 32: Financials
Financials Statement of Profit & Loss Rs. Million Cash Flow Rs. Million Particulars FY13 FY14 FY15 FY16 FY17 YTD'18 Particulars FY13 FY14 FY15 FY16 FY17 YTD'18 Segmental Revenue % Cash at the beginning of the year 9 20 8 44 33 30 OFC 63% 53% 63% 68% 66% 68% Cash from Operating Activities (57) 250 29
Slide 33: Key Financial Indicators
Key Financial Indicators Debt/Equity Ratio Interest Coverage Ratio 0.28x 6.7x 0.23x 0.20x 0.21x 4.2x 0.14x 0.14x 3.1x 3.2x 2.9x 2.7x FY13 FY14 FY15 FY16 FY17 YTD'18 FY13 FY14 FY15 FY16 FY17 YTD'18 Net Debt/EBITDA •Tail ended debt profile, which will 2.8x be smoothly re-paid in next 5 years 2.1x 1,76
Slide 34: Human Capital & Best Practices
Human Capital & Best Practices PROCESSES CULTURE • Automated Processes • Internal Engagement score=4.07/5 • Effective Business Partnering • Open Door Policy • Organization Benchmarking • Decision Making by consensus & Restructuring • Flat Organization- No Designations only levels • Transparency by m
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Undertook Massive Plantation drive in Bhiwadi and Reengus Industrial Bhiwadi 717 Area, Planted More than 65,000 Trees so far 655 STUDENT ENROLLMENT IN AKSH’S ADOPTED SCHOOLS 587 After Aksh’s adoption Student Enrolment increased by 260 in Santhalka School (57%), 43
Slide 36: Awards & Accolades
Awards & Accolades Bhamashah Frost & Sullivan Wind Insider Gov of Rajasthan Contribution towards Best OFC Supplier Network Technology know Societal Upliftment Technology Leader how Facilitator 01 02 03 04 CII DGFT - India Manufacturing 5S Excellence Star Export Association Enabler House Status CSR E
Slide 37: Contact
Contact Pavleen Taneja Investor Relations +91-11-26991508/509 Pavleen@akshoptiifbre.com Investor.relations@akshoptifibre.com A-25, 2nd floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044, India www.akshoptifibre.com