Electrosteel Castings Ltd. · NSE:ELECTCAST
Electrosteel Castings — Investor Presentation (November 2009)
24 slides from Electrosteel Castings's investor presentation, November 2009
Slide 1: Electrosteel Castings Limited Corporate Presentation
Electrosteel Castings Limited Water Mining Steel Infrastructure Corporate Presentation November 2009
Slide 2: Disclaimer
Disclaimer This Presentation is distributed by Electrosteel Castings Limited on a strictly confidential basis for information only. This Presentation and the information and projections contained herein may not be disclosed, reproduced or used in whole or in part for any purpose whatsoever or furnis
Slide 3: Industry Overview, Company Background, Strategy, Associates, Financials
Industry Overview Company Background Business Strategy & Proposed Plans Associate Companies Sound Financial Track Record
Slide 4: Water Infrastructure Potential in India
Water Infrastructure Potential in India Key highlights Water requirement for various sectors in India by 2050 Water requirement (bn cubic meters) • Currently, 17% of the global population does not have access to water supply Sector 2010 2025 2050 Irrigation 557 611 807 • In India, 25% of rural popul
Slide 5: Company Background
Industry Overview Company Background Business Strategy & Proposed Plans Associate Companies Sound Financial Track Record
Slide 6: Electrosteel Casting – A Snapshot
Electrosteel Casting – A Snapshot Business Overview Shareholding Pattern as on 30th Sep ‘09 Others Promoters • Incorporated in 1955 20.4% 48.1% • Early entrant in the Ductile Iron Pipes (DI Pipes) sector in India… One of the few manufacturers of DI pipes in the world NRI/GDR/FII's • 15 years of expe
Slide 7: An Unrivalled Success Story
An Unrivalled Success Story Commissioned fourth coke oven battery resulting in additional capacity of 70,000 TPA of coke, taking the total capacity to 2009 295,000 TPA at Haldia; DI pipe and blast furnace capacity enhanced to 280,000 TPA and 250,000 TPA respectively Tied up US$ 77.50 mn through ECB,
Slide 8: Group Structure
Group Structure Electrosteel Castings Limited Facilities Subsidiaries Associates Khardah Wide distribution through Electrosteel subsidiaries Lanco Industries • DI Pipe – 280,000 TPA Integrated Ltd Ltd (48.54%) (44.17%) • Pig Iron – 250,000 TPA • Sinter – 360,000 TPA Electrosteel Europe SA (100%) • P
Slide 9: Key Strengths
Key Strengths Integrated Production Facilities Catering to water infrastructure industry Coke Oven Plants High growth potential due to increased Captive Power Plants investments in water infrastructure Sinter Plant, Sponge Iron Plant & Pig Iron Plant DI/CI Pipe Plants One of the leading players in D
Slide 10: Strategic location of manufacturing facilities and major offices
Strategic location of manufacturing facilities and major offices Head Office Khardah West Bengal Branch Offices ECL Manufacturing facilities Mines Ductile Iron Pipes 280,000 TPA NEW DELHI Jharkhand Ductile Iron Fittings Coking Coal Mine 5,000 TPA JHARKHAND Iron Ore Mine (Proposed) AHMEDABAD KHARDAH
Slide 11: Exports – Sustained Growth (Standalone)
Exports – Sustained Growth (Standalone) Export sales by geography (FY09) • ECL believes that is has positioned itself in the international Others Algeria markets as a high-quality DI pipes manufacturer UK 4% 19% 10% • Increased its presence & reach by setting up foreign subsidiaries; developed stron
Slide 12: Awards & Recognitions
Awards & Recognitions • Implemented Total Productive Maintenance (TPM) and Total Quality Management (TQM) techniques at its facilities • Received Prestigious accreditation by the National Accreditation Bureau of Laboratories, indicating the highest quality control capabilities • The company has been
Slide 13: Eminent Board Members
Eminent Board Members Non Executive Directors Mr. P. K. Khaitan (Chairman) Dr J. J. Irani (Director) • Chairman & Director since 1972 and legal luminary • Serves on the board of Tata Sons and ex MD of Tata with extensive experience in the fields of commercial Steel Limited and corporate law, tax law
Slide 14: Senior Managerial Personnel
Senior Managerial Personnel Mr. Mahendra Kumar Jalan • Joined the Company in 1981 Executive Director • Currently looking after the Company’s marketing strategies Mr. Vyas Mitre Ralli • Joined the Company in 1972; He is a Metallurgical Engineering from IIT, Kharagpur; • Looking after the operations o
Slide 15: Business Strategy & Proposed Plans
Industry Overview Company Background Business Strategy & Proposed Plans Associate Companies Sound Financial Track Record
Slide 16: Business Strategy
Business Strategy Objectives Strategy Reduce production • Modernization of Mini Blast Furnace for improved output cost with continuing focus on quality, • Coking Coal mine modernization and • Iron Ore mine backward integration • Railway sidings for better & economical transportation infrastructure •
Slide 17: Natural Resources
Natural Resources Non Coking Coal Mine - Coking Coal Mine Iron Ore Mine JV (49%) North Dhadhu Coal Block, Parbatpur, Jharkhand (Jharia Kodolibad, Jharkhand (Near Location Latehar Dist., Jharkhand, Coalfield Belt) Chiria Mine) India Geological 231.2 mn MT 91.2 mn MT 120 mn MT (49% share) Reserves Typ
Slide 18: Associate Companies
Industry Overview Company Background Business Strategy & Proposed Plans Associate Companies Sound Financial Track Record
Slide 19: Electrosteel Integrated Limited
Electrosteel Integrated Limited Business overview • Setting up a 2.2 mn MTPA Integrated steel plant (including DI pipes) and captive facilities like pellet, coke oven, power and sinter plant at Bokaro in Jharkhand, India • Raw material supply: 20 year long term agreements with ECL owned mines • Sett
Slide 20: Lanco Industries Limited
Lanco Industries Limited Business overview Sales growth (Rs.mn) 8,000 6,805 • Presently engaged in manufacture of DI pipes, pig 1.1% iron and cement catering to the domestic market 6,000 A GR–2 C 4,947 4,105 • Electrosteel acquired 46% stake in FY02 for US$ 4,000 3,359 3,159 14.8 mn 2,000 • Manufact
Slide 21: Sound Financial Track Record
Industry Overview Company Background Business Strategy & Proposed Plans Associate Companies Sound Financial Track Record
Slide 22: Continuing Growth
Continuing Growth Net Sales (Rs.mn) EBITDA & EBITDA margins (Rs.mn) 25,000 17.9% 4,000 18.1% 20.0% 17.1% 3,493 19,472 16.2% 20,000 3,200 16.0% 14,394 15,000 2,104 12,300 2,400 12.0% 10,081 1,642 1,634 8.4% 10,000 9,065 1,600 8.0% 1,205 5,000 800 4.0% - - 0.0% FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07
Slide 23: Sound Financials
Sound Financials Capitalization Structure Shareholders Fund (Rs.mn) 15,000 14,010 March, 2009 Rs mn 11,943 Short term debt 12,000 - Secured 5,217 9,000 7,728 8,223 - Unsecured 908 5,525 6,000 Long term debt 3,000 - Secured 3,851 - - Unsecured 1,037 FY 05 FY 06 FY 07 FY 08 FY 09 Total Debt 11,013 Tot
Slide 24: Thank You
| Thank You
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