Black Rose Industries Limited · BSE:BLACKROSE
Black Rose Industries — Investor Presentation (March 2020)
25 slides from Black Rose Industries's investor presentation, Mar 3, 2020
Slide 1: The rising sun
INVESTOR PRESENTATION 2020 The rising sun How Black Rose – from distribution to manufacturing - has created a foundation that prepares it for sustainable growth in revenues, profits and shareholder value March 3, 2020
Slide 2: Disclaimer
INVESTOR PRESENTATION 2020 Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by BLACK ROSE INDUSTRIES LTD. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 3: Strong roots in Japan: A significant strength
INVESTOR PRESENTATION 2020 Strong roots in Japan: A significant strength • Established as Asia Fab Ltd. in 1990; headquartered in • Anup Jatia, Executive Mumbai, India; listed on the BSE from October 1, 1992 Director • Name changed to Black Rose Industries Ltd. in 2006 when Raised in and completed
Slide 4: Business presence of Black Rose
INVESTOR PRESENTATION 2020 Business presence Chemical of Black Rose Acrylamide – manufacturing India’s first plant started in Jhagadia, FY14; Current capacity of Gujarat 20,000 MTPA for merchant sales and additional capacity Chemical for captive intermediate distribution monomer requirement Polyacry
Slide 5: Chemical distribution business: The foundation of BRIL's growth – Reliability
INVESTOR PRESENTATION 2020 Chemical distribution business The foundation of BRIL’s growth – Reliability Relationship- based • Deeper • Fair pricing policy • Choice to work understanding of leading to long- with credible distribution eco-systems of standing customer customers who involves direct prin
Slide 6: Chemical distribution business: The foundation of BRIL's growth – Reliability
INVESTOR PRESENTATION 2020 Chemical distribution business The foundation of BRIL’s growth – Reliability Relationship- Agile business model, Efficient forecasting-based Better and consistent based benefitting from stock maintenance margins distribution opportunities but involves direct protected from
Slide 7: Chemical distribution business: BRIL works with brand-enhancing principals
INVESTOR PRESENTATION 2020 Chemical distribution business: BRIL works with brand-enhancing principals Access to first-rate quality, strategic market support and ethical practices Germany European Salt Company GmbH & Co. LANXESS Energizing Chemistry LANXESS Deutschland Gmbh Japan Koei Chemicals Co.,
Slide 8: List of key distribution products
INVESTOR PRESENTATION 2020 List of key distribution products Speciality Exports 1 Bromo 3 Chloro Propane 2,4 Dinitro Chloro Benzene Acrylonitrile Alpha Picoline Acetophenone Amine N1 (TEA Bottoms) Meta Amino Phenol Benzylamine Meta Ureido Aniline Diethanolamine Ethyl Cyano Acetate Vinyl Sulfone Gamm
Slide 9: Chemical distribution business: 'Reliability' translating into growth
INVESTOR PRESENTATION 2020 Chemical distribution business: ‘Reliability’ translating into growth 2015-16 2016-17 2017-18 2018-19 9M 2019-20 Distribution sales (Rs. mn.) 908 1135 1290 1366 1290 Annualised sales growth % 25% 14% 7% 26% Sales growth in 2019-20 (9M) is a validation of the company’s… • E
Slide 10: Acrylamide manufacturing business: The acrylamide opportunity
INVESTOR PRESENTATION 2020 Acrylamide manufacturing business: The acrylamide opportunity • Acrylamide is used industrially to manufacture • Global market size is 3 million MTPA; polyacrylamides expected to grow at a CAGR of 4.6% • Polyacrylamides are used in the following between 2019 and 2024 appli
Slide 11: Acrylamide manufacturing business: The acrylamide opportunity (continued)
INVESTOR PRESENTATION 2020 Acrylamide manufacturing business: The acrylamide opportunity (continued) Domestic producers: Black Rose, SNF India Overseas producers: Mitsui Chemicals, Mitsubishi Rayon, several Chinese companies, BASF, Kemira, SNF Group. Most also produce polyacrylamide and captively co
Slide 12: Acrylamide manufacturing business: The entry of Black Rose
INVESTOR PRESENTATION 2020 Acrylamide manufacturing business: The entry of Black Rose • Acrylamide was among key Black Rose obtained an exclusive • Licensed Mitsui’s biocatalytic products in Black Rose’s manufacturing license from technology distribution business. The principal Mitsui Chemicals owin
Slide 13: Acrylamide manufacturing business: Raw material scenario
INVESTOR PRESENTATION 2020 Acrylamide manufacturing business: Raw material scenario • Acrylonitrile is the key raw material for acrylamide • 1 kg. of acrylamide (50% basis) consumes ~0.4 kg. of acrylonitrile • Price of acrylamide is mainly affected by changes in the cost of acrylonitrile • Acrylonit
Slide 14: Acrylamide manufacturing business: Further growth
INVESTOR PRESENTATION 2020 Acrylamide manufacturing business: Further growth Crossed 90% utilization of Since late Q3 FY20, demand Demand for captive consumption installed capacity in October 2019 growing in the domestic market; in polyacrylamides manufacturing further penetration into robust will g
Slide 15: Acrylamides manufacturing business: Provides an insight into BRIL's business philosophy
INVESTOR PRESENTATION 2020 Acrylamides manufacturing business: Provides an insight into BRIL’s business philosophy Prudent Incremental Phased creation of capacity expansion to base and addition at follow thereafter infrastructure marginal capex Phased capacity Focus on expansion (once maximizing exi
Slide 16: Polyacrylamides manufacturing business: Polyacrylamides (PAM) – An overview
INVESTOR PRESENTATION 2020 Polyacrylamides manufacturing business: Polyacrylamides (PAM) – An overview • Polyacrylamides represent a class of polymers Global applications of PAM* that are water-soluble and formed solely from acrylamide or together with other monomers 4% 3% • Widely used as flocculat
Slide 17: Polyacrylamides business: Industry scenario
INVESTOR PRESENTATION 2020 Polyacrylamides business: Industry scenario Polyacrylamide liquids Polyacrylamide solids Global market US$4.5 billion (2019) Global growth (estimated) 6.0% (2019-2025) Global producers BASF, Kemira, SNF Group, MT Aqua, Mitsubishi Rayon and several Chinese producers Domesti
Slide 18: Polyacrylamides manufacturing business: The entry of Black Rose
INVESTOR PRESENTATION 2020 Polyacrylamides manufacturing business: The entry of Black Rose Manufacture both Although acrylamide Process and product Helps de-risk the polyacrylamide is sold as raw developed at in- business from a liquids (PAM-L) and material to other house R&D facility; purely raw ma
Slide 19: Polyacrylamide liquids: Attractive domestic opportunity
INVESTOR PRESENTATION 2020 Polyacrylamide liquids: Attractive domestic opportunity • Capacity: 40,000 MTPA (under commissioning) • To service ceramic tiles binder, paper and textile industries • Timelines: October 2019: 120 MTPA, January 2020: 6,600 MTPA • Black Rose’s BRILBIND® ceramic binder is av
Slide 20: Polyacrylamide solids: Significant opportunity
INVESTOR PRESENTATION 2020 Polyacrylamide solids: Significant opportunity • Capacity: 10,000 MTPA (in progress) • Domestic production negligible; first (large-scale) mover advantage targeted • To service waste water / sewage treatment industries in the initial phase; to address the domestic and inte
Slide 21: Financials – Profit & Loss (Standalone)
INVESTOR PRESENTATION 2020 Financials – Profit & Loss (Standalone)* Rs. in millions Particulars FY16 FY17 FY18 FY19 9M FY20 Income from operations 1,286.8 1,661.6 1,849.7 2,134.9 1,862.3 % growth - 29% 11% 15% 16% EBITDA 91.4 143.1 210.6 230.7 245.5 Depreciation 27.3 27.4 24.1 21.1 15.9 PBIT 64.1 11
Slide 22: Financials – Balance Sheet (Standalone)
INVESTOR PRESENTATION 2020 Financials – Balance Sheet (Standalone)* Rs. in millions Particulars FY16 FY17 FY18 FY19 9M FY20 Return on Equity (%) 40.00% 32.14% Sources of Funds 28.26% 30.00% 25.87% Equity Share Capital 51.0 51.0 51.0 51.0 51.0 19.53% Reserves & Surplus 157.0 202.9 296.2 419.2 558.3 2
Slide 23: Financials: Revenue mix
INVESTOR PRESENTATION 2020 Financials Revenue mix 2.8% 1.0% 26.6% 30.5% FY16 9M FY20 68.5% 70.6% Chemical manufacturing Chemical manufacturing Distribution Distribution Others Others 23
Slide 24: The Management, Awards & Recognitions, ISO certification
INVESTOR PRESENTATION 2020 The Management Awards & Recognitions Black Rose believes in strong corporate governance Best SME for Corporate Governance and professional management. Award The 70 member team lead by Anup Jatia, Executive At the 3rd Business Today Yes Bank Director, comprises: SME Awards
Slide 25: Contact
INVESTOR PRESENTATION 2020 Contact Mr. Nevil Avlani Company Secretary & Compliance Officer Head office 145/A, Mittal Towers Nariman Point, Mumbai 400 021, India Call / Fax +91-22-4333-7200 +91-22-2287-3022 (Fax) Mail to [email protected]
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