Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Investor Presentation (August 2021)
25 slides from Epigral's investor presentation, Aug 20, 2021
Slide 1: Filing cover letter to stock exchanges
MEGHMANI FINECHEM LTD. Regd. Office: CH/1, CH/2, GIDC Industrial Estate, Dahej, Tai. Vagra, Bharuch - 392 130. Gujarat, (INDIA) Phone: +91- 635 9953661/62/63/64/65, E-mail : helpdesk@meghmani.com, URL: www.meghmani.com GIN: U24100GJ2007PLC051717 20.08.2021 To, National Stock Exchange of India Limite
Slide 2: Meghmani Finechem Limited Corporate Presentation
MEGHMANI FINECHEM LIMITED Corporate Presentation Your essentials. Our exp rtise. 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: Company Overview
Company Overview The Next Gen Business ---------------------------- ------------: i ----------------------------- -----------:i Founded: 21% 16% I I I 2007 I I I I I I L-- ----------------------------- i I I L--- ----------------------------- 4 Year Revenue CAGR 4 Year EBITDA CAGR ------------------
Slide 5: What are we into
What are we into ESG Focus Our Business o Leading producer of Chlor- o Strong focus on sustainability - alkali products and value awarded with the ‘Responsible Care’ added derivatives Logo by ICC Strategic Location Competitive Advantage o State of the art manufacturing o Domestically produced ECH an
Slide 6: Our Evolution
Our Evolution FY 2021 FY 2020 ,,. FY 2018 o Expanded Caustic o Commissioned ,,. FY 2017 50 KTPA CMS Chlorine capacity 294 Planned New Plant in July ,,. FY 2015 Caustic 2019. KTPA; CPP - 96 MW in Expansion & ,,. FY 2010 Commissioned KOH Plant – Chlor-Alkali o Announced ECH Project June 2020 o Commiss
Slide 7: Driven by Strong Values
Driven by Strong Values Sustainable long term value creation Values: The principles that guide our company strategy • Maintaining high standards on transparency and disclosures Trust with all our stakeholders We enhance diverse employee engagement for increased o Caring for the environment and produ
Slide 8: MFL Evolving to value added products
MFL Evolving to value added products Enabling Capabilities Fully Integrated Product Portfolio High Value Products Chlor Alkali ECH Import Substitution – Make in India H202 Diversified End User Industries CPVC Chlorine Hydrogen CMS Sole Manufacturer of ECH in India Caustic Soda Diversifying Portfolio
Slide 9: Unmatched Strategic Positioning
Unmatched Strategic Positioning Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o MFL is a known brand in Indian chemical market o Strategic location with close connectivity to o Serving domestic customers for last 12 Yrs ports and r
Slide 10: Catering to High Growth Industries
Catering to High Growth Industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes Heat Resistant Pipes Refrigerant Gas Water Treatment Electronics The
Slide 11: Transitioning to Value added products
Transitioning to Value added products High value products to fuel future growth ECH* Chlor-Alkali – 74% Chlor-Alkali – 44% FY2021 FY2024E ₹829 Crores ₹2,000 Crores CPVC* Revenue from the derivatives segment to be >50% by FY24 *CMS – Chloromethane, H202 – Hydrogen Peroxide, CPVC – Chlorinated Polyvin
Slide 12: Levers of Future Growth
Levers of Future Growth High-margin products with low-cost capacity expansion Manufacturing Plant Capacity (‘000 TPA) 106 Q2 FY23 60 50 50 294 30 21 Caustic Soda Hydrogen Peroxide Chloromethanes Epichlorohydrin CPVC Caustic Potash Q2 FY21* Q2 FY20* Q1 FY23 Q2 FY23 Expected Commissioning , * Commissi
Slide 13: De-Risked and Diversified Product Portfolio
De-Risked and Diversified Product Portfolio Existing Products Caustic Soda 4th Largest Producer in India Chloromethane o India’s demand for caustic soda likely to grow 3rd Largest Producer in India with CAGR @ 3-4% per annum Hydrogen Peroxide o Chloromethane's market is driven by MDC o Demand of Cau
Slide 14: Expanding our product portfolio
Expanding our product portfolio Significantly replacing imports CPVC Epichlorohydrin (ECH) India’s CPVC Requirement: 126 ktpa India’s ECH Requirement: 62 ktpa Demand CAGR: 13% Demand CAGR: 10% o Key raw material for heat resistant pipes o First company in India to produce sustainable bio bas
Slide 15: Professional Management Team
Professional Management Team Mr. Maulik Patel Mr. Kaushal Soparkar Chairman & Managing Director Managing Director Mr. Magan Hania Mr. R. S. Rajan Mr. Sanjay Jain Mr. Naresh Agarwal Manufacturing Manufacturing - CPP Chief Financial Officer Sales & Marketing Mr. Pritesh Shah Mr. Hamid Sayyad Mr. Vikra
Slide 16: Focussed on Sustainable Operations
Focussed on Sustainable Operations Strong ESG Focus Our Sustainability Standards Employee & Community Care I MFL’s upcoming ECH plant is India’s first plant to run on I 100% renewable sources. o We support, develop and inspire our people to achieve their personal best and treat them with dignity and
Slide 17: Generating Sustainable Profits
Generating Sustainable Profits Stakeholder Value Creation Revenue from operations EBITDA (₹ Crores) PAT (₹ Crores) (₹ Crores) 44% 26% 25% 43% 37% 312 32% 183 CAGR 21% 829 32% 155 255 261 17% 18% 710 12% 194 112 598 611 101 144 67 392 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 F
Slide 18: Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet Achieving Strong growth without extensive debt Debt / EBITDA (x) ROCE (%)* 38% 2.7 36% 2.1 18% 1.3 16% 15% 0.9 0.3 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 *ROCE for FY20 & FY21 was impacted by higher CAPEX Superior Balance Sheet Strength 17
Slide 19: Priorities going forward
Priorities going forward INTEGRATION: Strengthen the fully integrated portfolio through process optimisation and efficiency improvements COST: Accelerate the next gen business and improve economies of scale GROWTH: Identify high value products to further improve business portfolio 18
Slide 20: Investment Thesis
Investment Thesis Setting up India’s first bio State of the art and scalable Demerger unlocks the value of based ECH manufacturing manufacturing facilities. ‘Chloro Alkali and its value added facility and expanding its Derivatives’ business currently product portfolio to value embedded in the value
Slide 21: Appendices
APPENDICES Your essentia ls. Our xpertise. 20
Slide 22: Fully Integrated Complex
Fully Integrated Complex Process flow chart at Dahej Plant Coal 1 Caustic Soda Lye 48% Sodium Chlo ri de Caustic Soda Flakes ' Caustic Potash Lye ~ ii: g Sodiurn Hypochlorite ...__.. H 2 ::c <..> I Liquid Chlorine .... (!1 0 0:: C ~ 1-- .Jt::- --1-- - -:.1. Liquid HCI.: 30% Methanol Methyl Chloride
Slide 23: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 Total Revenue 393 602 720 613 831 Gross Profit 167 359 455 335 443 Gross Margin (%) 43% 60% 64% 55% 53% EBITDA 144 255 312 194 261 EBITDA Margin (%) 37% 43% 44% 32% 32% Depreciation 55 55 54 44 74 Finance Cost 14 9 25 11 29 PBT 75
Slide 24: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY19 FY20 FY21 Liabilities (₹ Cr) FY19 FY20 FY21 Fixed Assets 763 1,131 1,228 Share Capital 41 42 42 Financial Assets 5 4 10 Reserves & Surplus 452 542 643 Other Non-current Assets 22 5 29 Long-Term Borrowings 365 418 340 Inventories 41 48 54 Long-term Provisions
Slide 25: Corporate Office Manufacturing Site
Corporate Office Manufacturing Site “Meghmani House”, B/h Safal Profitaire, Corporate CH/1 and CH/2, GIDC Industrial Estate, Dahej, Tal. Vagra, Dist. Bharuch – 392130, Gujarat, Road, Prahladnagar, Ahmedabad 380015, Gujarat, India India www.meghmanifinechem.com Milind Kotecha Surabhi Sutaria Milind.k
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