Electrosteel Castings Ltd. · NSE:ELECTCAST
Electrosteel Castings — Investor Presentation (September 2010)
26 slides from Electrosteel Castings's investor presentation, September 2010
Slide 1: Electrosteel Castings Limited Corporate Presentation
Electrosteel Castings Limited Water Mining Steel Infrastructure Corporate Presentation September 2010
Slide 2: Industry Overview, Company Background, Strategy, Financials, Associates
Industry Overview Company Background Business Strategy & Proposed Plans Sound Financial Track Record Associate Companies
Slide 3: 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 Sector 2010 2025 2050 access to water supply Irrigation 557 611 807 Drinking Water 43 62 111 In Indi
Slide 4: Company Background
Industry Overview Company Background Business Strategy & Proposed Plans Sound Financial Track Record Associate Companies
Slide 5: Electrosteel Casting – A Snapshot
Electrosteel Casting – A Snapshot Business Overview Shareholding Pattern as on 30th June ‘10 Others Promoters Incorporated in 1955 20.3% 48.4% 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/Bo 16 years of experi
Slide 6: An Unrivalled Success Story
An Unrivalled Success Story QIP consisting of Rs 200 crs NCD issue and 3.35 cr warrants at issue price of Rs 3 per warrant convertible at Rs 59.58. 2010 Modernization of Mini Blast Furnace for improved output Commissioned fourth coke oven battery resulting in additional capacity of 70,000 TPA of cok
Slide 7: Group Structure
Group Structure Electrosteel Castings Limited Facilities Subsidiaries Associates Khardah Wide distribution through subsidiaries Electrosteel Steels Lanco Industries DI Pipe – 280,000 TPA Ltd (42.02%) Ltd (48.54%) Pig Iron – 250,000 TPA Sinter – 360,000 TPA Electrosteel Europe SA (100%) Power Plant –
Slide 8: 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 the sector Sinter Plant, Sponge Iron Plant & Pig Iron Plant DI/CI Pipe Plants One of the leading players in DI pipes A
Slide 9: 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) KHARDAH Non Coking
Slide 10: Exports – Sustained Growth (Standalone)
Exports – Sustained Growth (Standalone) Export sales by geography (FY10) ECL believes that is has positioned itself in the international Algeria markets as a high-quality DI pipes manufacturer Others UK 24% 6% 10% Increased its presence & reach by setting up foreign subsidiaries; developed strong re
Slide 11: 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 recog
Slide 12: Eminent Non-Executive Directors
Eminent Non-Executive Directors 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, t
Slide 13: Business Strategy & Proposed Plans
Industry Overview Company Background Business Strategy & Proposed Plans Sound Financial Track Record Associate Companies
Slide 14: Business Strategy
Business Strategy Objectives Strategy Reduce production cost with continuing Coking Coal mine focus on quality, modernization and Iron Ore mine backward Railway sidings for better & economical transportation infrastructure integration Achieving higher production efficiency in DI pipes and fittings E
Slide 15: 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 16: Sound Financial Track Record
Industry Overview Company Background Business Strategy & Proposed Plans Sound Financial Track Record Associate Companies
Slide 17: Continuing Growth
Continuing Growth Net Sales (Rs.mn) EBITDA & EBITDA margins (Rs.mn) 26.4% 4,500 30.0% 17.9% 4177 4,000 25,000 3493 25.0% 3,500 19,472 20,000 3,000 17.1% 20.0% 16.2% 15,808 2,500 14,394 2104 15.0% 15,000 8.4% 12,300 2,000 1634 10,081 1205 1,500 10.0% 10,000 1,000 5.0% 5,000 500 - 0.0% - FY06 FY07 FY0
Slide 18: Strong Financials
Strong Financials Capitalization Structure Shareholders Fund (Rs.mn) March, 2010 Rs mn 17500 16206 14010 Short term debt 15000 11943 12500 - Secured 2,325 10000 8223 7728 7500 - Unsecured 761 5000 Long term debt 2500 0 - Secured 8,979 FY 06 FY 07 FY 08 FY 09 FY 10 - Unsecured 918 Total Debt : Equity
Slide 19: Associate Companies
Industry Overview Company Background Business Strategy & Proposed Plans Sound Financial Track Record Associate Companies
Slide 20: Lanco Industries Limited
Lanco Industries Limited Business overview Sales growth (Rs.mn) 8,000 7,105 Presently engaged in manufacture of DI pipes, pig 6,805 iron and cement catering to the domestic market 6,000 4,947 Electrosteel acquired 46% stake in FY02 for US$ 4,105 4,000 3,359 14.8 mn 2,000 Manufacturing Capacity: D.I.
Slide 21: Electrosteel Steels Limited
Electrosteel Steels Limited Business overview Setting up a 2.2 mn MTPA Integrated steel plant including DI pipes and captive facilities like pellet, sinter, coke oven, and power plant at Siyaljori (near Bokaro) in Jharkhand, India Raw material supply: 20 year long term agreements with ECL owned iron
Slide 22: Project Details
Project Details Siyoljori village in Bokaro district of Jharkhand. The site is 22 kms from Bokaro and 52 kms from Location Dhanbad The company has 1723.44 acres of land under possession. The company would use around 900 Land Status acres for the current 2.2 MTPA plant while the rest will be used for
Slide 23: Project Structure
Project Structure Project housed under ESL ESL has a long term Raw Material supply agreement with ECL, at cost plus basis, thus ECL making the project a fully integrated steel project (Captive Mines) SDM to provide project implementation and ECL to provide management expertise Coking Coal Supp
Slide 24: Significant Milestones Achieved
Significant Milestones Achieved Permit Approving Authority Coking Coal Iron Ore Mine Allocation Ministry of Coal Approval of Mining Ministry of Coal Plan SPCB Clearance JSPCB Environmental MoEF Clearance Railway Transport Railway Board Clearance Forest Diversion Forest Clearance
Slide 25: Project Facilities
Project Facilities Technological Facilities Capacity Product Details Coke oven 252 ovens Capacity Product (MTPA) Sinter plant 2 x 105 m2 0.5 Wire Rods in coil form 5.5-16.0 mm Pellet Plant 1.2 MTPA diameter 0.7 Reinforcement bars in straight lengths Blast furnace 2 x 1050 m3 and bundled 8-32 mm and
Slide 26: Thank You
Thank You
Electrosteel Castings — Investor Presentation (September 2010) on 6ix