Triveni Engineering and Industries Limited · NSE:TRIVENI
Triveni Engineering and Industries — Investor Presentation (June 2007)
34 slides from Triveni Engineering and Industries's investor presentation, June 2007
Slide 1: Triveni Engineering & Industries Ltd Corporate Presentation
Triveni Engineering & Industries Ltd Corporate Presentation June 2007
Slide 2: Table of Contents
Table of Contents • Triveni and its Business Divisions • Engineering Business • Sugar Business • Retail Business • Vision Statement
Slide 3: About Triveni
About Triveni Chandigarh Business Business Divisions Divisions Deoband Narainpur Noida / Delhi Khatauli Sabitgarh Raninagal SUGAR SUGAR ENGINEERING ENGINEERING Chandanpur Ramkola Naini •• Sugar Sugar Business Business •• Turbine Turbine Business Business Baroda Kolkata Group Group Group Group •• Co-
Slide 4: Revenue Composition
Revenue Composition Sugar (including co-generation) and Engineering 13000 45 41% 40 10000 35 30 24% 27% 25 Engg - 58% 7000 20% Total – 34% Sugar - 24% 20 15 4000 10 5 1000 0 Sales CAGR FY04 – FY07 (*) FY04 FY05 FY06 FY07 (*) st (*) FY 07 data for 12 months ending 31 March 2007. Accounting year exten
Slide 5: Engineering Business – Growth Achieved
Engineering Business – Growth Achieved • Turbine manufacturing capacity doubled in 2005-06 and further increased by 80% in 2006-07 • Gear Manufacturing capacity doubled over 2005-06 & 2006-07 • Manufacturing facility for Water & Waste Water equipment manufacturing under construction – ready by Q6 FY
Slide 6: Sugar Business – Growth Achieved
Sugar Business – Growth Achieved • Among the 3 largest producers in India • Integrated model – 61000 TCD (operational) crushing capacity with 68MW co-generation and 160 KLPD distillery • Major facilities located in the cane rich, fertile delta in Western Uttar Pradesh 65000 80 70 160 kilo litres per
Slide 7: Engineering Business
Engineering Business www.trivenigroup.com
Slide 8: Revenue Growth in Turbines, Gears and Water Business
Revenue Growth in Turbines, Gears and Water Business (Rs. In Million) 5630 5500 331 626 4500 3500 3368 138 450 PBIT - 83% Sales - 58% 4676 2500 1947 82 239 2780 1500 1431 189 1626 1242 500 FY04 FY05 FY06 12M FY07 CAGR FY04 – FY07 Turbines Gears Water
Slide 9: Power Generation – Future Market Overview
Power Generation – Future Market Overview ANNUAL ANNUAL MARKET MARKET FOR FOR TURBINES •• Conservative Conservative domestic domestic demand demand estimate estimate of of 900 900 MW MW per per annum annum TURBINES BELOW BELOW 18 18 (including (including additions additions on on account account of
Slide 10: Power Generation – Potential to grow
Power Generation – Potential to grow 1. Additional power requirement in the country estimated at 76,500 MW in next five years Range FY 07 FY 08 (P) •Estimated demand of 25000 MW to come in Below 18 MW 981 878 Captive /Industrial /co-generation segment in the 18 MW – 30 MW 1275 1500 next five years A
Slide 11: Power Generation – Potential to grow (Contd..)
Power Generation – Potential to grow (Contd..) 3. Captive generation segment (with fuel composition) In MW Steam Diesel Others Total • Currently, diesel is the major source of fuel used in many of the user industry for upto 18 MW 25% 64% 11% 100% captive power generation. 18 > 50 MW 43% 41% 16% 100%
Slide 12: Engineering – Market for Steam Turbines & Demand Drivers
Engineering – Market for Steam Turbines & Demand Drivers •Application across industries – proxy for industrial growth ¾ Bio-mass & Municipal Solid Waste based Independent Power Plants (IPPs); Captive Power Plants ¾ Waste Heat Recovery Power Plants. Carbon Black, Steel and sponge iron ¾ Co-generation
Slide 13: Engineering – Turbine Business Group Performance
Engineering – Turbine Business Group Performance • Triveni turbines are supplied to a wide cross section of industries like sugar, co-generation, steel, paper, textiles, cement, pharmaceuticals, IPPs, Defence etc. • 12M FY 07 - market share at 78% in our range up to 18 MW • Triveni has been manufact
Slide 14: Turbine Business Group – Technology & Development
Engineering – Turbine Business Group – Technology & Development • Highly efficient turbines with indigenously developed tappered twisted blades • Fully integrated operations with strong Engineering & Design team & State of the art equipments • Designed for peak performance under a broad spectrum of
Slide 15: Turbine Business Group – Going Forward
Engineering – Turbine Business Group – Going Forward • Expanding the range of products – high MW, high pressure turbines • Spares & Services to form higher proportion of revenues in view of enormous growth achieved in the last few years • Refurbishment of all makes of turbines including overhauling
Slide 16: Engineering - Gears Business
Engineering - Gears Business • Triveni is in the business of design, manufacture and marketing of gears and gearboxes with a capacity of up to 70.0 MW and speed up to 50,000 rpm • Applications in power turbines, compressors, pumps etc. as a power transmission equipment • State of the art manufacturi
Slide 17: Engineering - Gears Business
Engineering - Gears Business • The range up to 7.5 MW is manufactured using own technology and the range above 7.5 MW is manufactured using technology imported from Lufkin. • Over 80% market share in below 15 MW and supplier to all major turbine competitors such as BHEL, Siemens. • Highest quality -
Slide 18: Engineering - Water Business
Engineering - Water Business • The business, in its present form, is in a nascent stage with a turnover of Rs. 330 million in FY 07 • Promising potential in view of anticipated stringent environmental norms and scarcity of water • Market is increasing substantially in all areas- desalination, water
Slide 19: Sugar Business
Sugar Business www.trivenigroup.com [riven y,
Slide 20: World Sugar Scenario
World Sugar Scenario • Global sugar production estimated at 161.3 million tonne in 2006-07, an increase of 11% while consumption is expected to go up by 4.6% at 148.9 million. Global stock expected to increase by 5 – 6 million (Source: USDA Estimates) • White Sugar prices after rising to about $ 470
Slide 21: Domestic Sugar Scenario
Domestic Sugar Scenario India ¾ Largest consumer ¾ Second largest producer of sugar • Higher production estimated to come from increased area of cultivation, better yield, recovery and lower diversion of cane to alternate sweetener manufacturers • Removal of export ban to take away over 3-4 million
Slide 22: The Sugar Cycle: Advantages of an Integrated Model
The Sugar Cycle : Advantages of an Integrated Model Profitability Margins : Profitability Margins : Decline in Sugar sugarcane Sugar Decline in area utilization for Power / Ethanol under sugarcane sugar production Power / Ethanol cultivation, lower Lower sugar production production, lower Delayed pa
Slide 23: Domestic Production & Consumption
Domestic Production & Consumption (Figures in MMT) Sugar 2002 –03 2003 –04 2004 –05 2005 –06 2006 –07 (E) 2007 –08 (E) 2008 –09 (E) Opening Stock 11.3 11.6 8.5 4.8 4.4 9.7 14.2 Production 20.2 14.0 12.7 19.2 27.3 29.0 21.0 Imports 0.0 0.4 2.1 0.0 0.0 0.0 0.0 Total Available 31.5 26.0 23.3 24.0 31.7
Slide 24: U.P. Government Incentive Policy
U.P. Government Incentive Policy • Policy aimed at attracting new investments in sugar industry • Under this policy, the state government has decided to give special incentives in the form of capital subsidy, reimbursement of some cost components relating to procurement of cane and sale of sugar and
Slide 25: Sugar Manufacturing
Sugar Manufacturing • Crushing capacity increasing from 25,250 TCD in 2004-05 to 40,500 TCD in 2005-06 and further to 61,000 TCD in 2006-07 • Major facilities located in cane rich areas of Western Uttar Pradesh • Green field expansions in Central Uttar Pradesh leading to sustainable long term cane a
Slide 26: Sugar – Key Differentiators
Sugar – Key Differentiators • Western Uttar Pradesh with more than 80% cane intensity – fertile and irrigated land • Sugar cane catchment area for all sugar units under canal irrigation – both in Western & Central Uttar Pradesh - Lower dependency on monsoon • Closer to country’s major sugar consumin
Slide 27: Sugar Manufacturing
Sugar Manufacturing Area, Yield & Percentage of cane drawn for 2006-07 Early Target for Area Yield Drawl Name of the unit Variety Early Variety (Hectare) (Ton/Ha) % age % age (07-08) % age Khatauli 44,224 65.0 68 31.7 39.9 Deoband 43,080 61.6 68 51.3 55.0 Ramkola 27,045 48.7 55 6.6 10.1 Sabitgarh 22
Slide 28: Sugar – Performance going forward
Sugar – Performance going forward SY 05 SY 06 SY 07 SY 08 (E) Crushing Capacity TCD 25,250 40,500 61,000 61,000 Million Sugar cane crushed 3.59 3.98 6.10 8.00 Tonne • Integration into co-generation and distillation of alcohol - counter-cyclical to sugar cycle • Will be geared up to take up the benef
Slide 29: Sugar - Co-generation Business
Sugar - Co-generation Business • Co-generation – counter cyclical to sugar cycle – protection in downturn • 68 MW co-generation facilities spread in two units • 46 MW in Khatauli • 22 MW in Deoband • Continual improvement in operational efficiencies – reduced steam consumption – higher bagasse savin
Slide 30: Sugar - Distillery Business
Sugar - Distillery Business • Integration of Sugar operation – value addition of by-product - molasses • 160 KLPD distillery, one of the largest in the country, at Muzaffarnagar at an investment of Rs. 900 million • Ideally located to use the molasses from two of the major units viz., Khatauli & Deo
Slide 31: Retail Business - Triveni Khushali Bazaar
Retail Business- Triveni Khushali Bazaar z Triveni has launched a chain of stores called “Triveni Khushali Bazaar”, for rural and semi urban customers – 40 operational stores as on 1st June 2007 z Stores cater to the entire basket of goods required by the local community including farm implements, d
Slide 32: Vision Statement
Vision Statement Our long-term corporate vision is to: (a) Maintain a Top 3 position in each of our businesses within the applicable market segment - The market segment for the Turbines business is the global market while for the sugar business it is India (b) Create value and delight for our custom
Slide 33: Thank You
Thank You www.trivenigroup.com
Slide 34: Cautionary Statement
Cautionary Statement Certain statements in this presentation may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could ca
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