Triveni Engineering and Industries Limited · NSE:TRIVENI
Triveni Engineering and Industries — Investor Presentation (May 2009)
33 slides from Triveni Engineering and Industries's investor presentation, May 2009
Slide 1: Triveni Engineering & Industries Ltd
r A_f = Hil VE MI ENGINEERING & INDUSTRIES LTD
Slide 2: Two Distinct Businesses – Sugar & Engineering
Two Distinct Promoter driven, Businesses – professionally Sugar & Engineering managed company Eminent and Pan India Presence independent Board of Directors
Slide 3: Revenue Composition – Sugar Businesses & Engineering Businesses
Revenue Composition – Sugar Businesses & Engineering Businesses 18000 16000 14000 6519 12000 5636 3368 Rs. In million 10000 Total 1947 Engg 28% 8000 Sugar 46% 6000 25% 10779 1431 9126 9269 4000 7864 2000 4470 0 FY04 FY05 FY06 FY07* FY08 Engineering Businesses Sugar Businesses FY07* - 12 months perio
Slide 4: Engineering business groups: turbine, gear, water
Market leader in steam turbines upto 20 MW with current capacity TURBINE upto 30 MW size BUSINESS GROUP GEAR Largest manufacturer BUSINESS of High speed gears GROUP & gear boxes in India WATER BUSINESS A leading player in GROUP the high technology water & waste water business
Slide 5: Manufacturing Plants
Manufacturing Plants Noida Turbine Naini • Bangalore Business Ahemdabad Gear Raipur Kolkata • Mysore Business Latur Nagpur Mumbai Water Pune Hyderabad • Noida Kolhapur Business Vijaywada Bangalore Corporate Office Manufacturing Facilities Mysore Marketing and Service Centres
Slide 6: Engineering Businesses Revenue Growth
Engineering Businesses Revenue Growth 7000 Sales - 46% 6000 5000 CAGR FY04 – FY08 4000 5092 Turbines 4632 Gears 3000 Water 2780 2000 PBIT – 71% 1626 769 1000 1242 605 450 668 239 400 189 0 FY04 FY05 FY06 FY07* FY08 FY07* - 12 months period from Oct 06 – Sep 07
Slide 7: Engineering - Power Generation Market
Engineering - Power Generation Market Market Characteristics - The market is price sensitive Market demands high levels of technology, efficiency & lower life ANNUAL MARKET FOR cycle cost as major factors in TURBINES BELOW 30 MW IN YEAR 09-10 purchase decision Demand is estimated at approx. 1650
Slide 8: Engineering - Power Generation – Potential To Grow
Engineering - Power Generation – Potential To Grow The current gap in the Industrial Segment between consumption Renewable energy will play a major role (26,800 MW) and generation in the development of a low carbon (19,000 MW) is expected to be energy system. addressed in the next four to five years
Slide 9: Engineering – Water Industry – Potential To Grow
Engineering – Water Industry – Potential To Grow In India water demand is expected to rise from 552 Asian development bank & World Bank are actively billion cubic metres (BCM) in 2000 to 1050 BCM by promoting privatisation and commercialisation of 2025. Per capita fresh water availability droppe
Slide 10: Turbine Business Group
Turbine Business Group Business Perspective Wide range of customer industries Manufacturing since 1968; over like sugar, cogeneration, steel, paper, 2,000 turbines manufactured textiles, pharmaceuticals and sold since inception Turbine manufacturing capacity Consistently maintained domestic doubled
Slide 11: Servicing & Refurbishing
Servicing & Refurbishing Service as a differentiator - Full Speed vacuum Balancing Tunnel An extensive network of 13 Service for balancing turbines/ compressors/ centres spread across the country alternators up to 150 MW commissioned in July 2007 A strong team of 125 service professionals de
Slide 12: Performance
Performance H1 FY 09 sales lower by 21% primarily on account of deferment of deliveries by customers 100% 90% H1 PBIT margin strong at 23.2% 5092 25 80% 1280 Q2 FY 09 sales higher by 35% vis-a-vis Q1 FY 09 – indicating easing of liquidity , cost of debt etc. 70% 60% FY 08 Change in product m
Slide 13: Future Perspective
Future Perspective Strong Research & Development team Setting up of a dedicated Training School for supported by an eminent team of external in-house development of skilled design and advisors from IISc, IIT and other notable servicing staff- a unique initiative in human institutions development
Slide 14: Gear Business Group
Gear Business Group Business Triveni is in the business of design, manufacture and marketing of gears and gearboxes with a Perspective capacity of up to 70.0 MW and speed up to 50,000 rpm Highest quality - DIN 3 quality assured The high speed gear range for steam, gas , pumps and compressor applicat
Slide 15: Performance
Performance Over 80% market share in below 25 MW and supplier to all major turbine competitors such as BHEL, Siemens. 100% Overall ~ 60% market share in high speed 90% 769 29 gears across the power range 80% 220 Major retrofitting orders executed for cement 70% industry, steel industry etc. Es
Slide 16: Future Perspective
Future Perspective Focus on product development in high value Meeting the growing gear box demand in added low speed applications oil & gas segment & auxiliaries for power plants Installation of 2 meter CNC profile grinder and vertical turret lathe with grinding attachments, Focus on providi
Slide 17: Water Business Group
Water Business Group Business Annual estimated market for Water/Waste Treatment market is ~ Rs. 50 billion Perspective with an estimated growth of 20-25% Visible potential for water & waste water business in view of anticipated stringent environmental norms and scarcity of water Market is increasing
Slide 18: Performance
Performance The water business Group (WBG) delivered a 12% increase in turnover in H1 FY 09 at Rs. 368 million. 100% PBIT margins for H1 FY 09 at 13%; margins vary quarter over quarter depending on the sales mix / billing 90% 16 Focus on high value jobs like major effluent recycling, 80% 668 i
Slide 19: Future Perspective
Future Perspective Key technology applications to be used in these sectors are desalination (power & municipal), high purity system, condensate polishing units (both for large sized power plants), biological treatment with nutrient removal (for municipal sector), Anaerobic Treatment (ethanol manuf
Slide 20: Third largest sugar producer in India
Third largest sugar producer in India SUGAR PRODUCTION 68 MW of state- SUGAR COGENERATION of the – art Co- BUSINESSE generation S facility DISTILLERY One of the largest single stream molasses based distillery in the country
Slide 21: Global Sugar Industry / Indian Sugar Industry
GLOBAL SUGAR INDUSTRY INDIAN SUGAR INDUSTRY India is the largest consumer & second largest producer of sugar Global production for 2008-09 estimated at 157 million, a decline of ~5.6%. On account of farmers switching to alternate crops because of lower cane prices and less than normal Brazil
Slide 22: Sugar Cycle
Sugar Cycle Profitability Margins : Profitability Margins : Sugar Sugar Decline in sugarcane utilization for sugar Power / Ethanol Power / Ethanol Decline in area under production sugarcane cultivation, lower production Lower sugar production, lower sugar availability Delayed payment to farmers, hig
Slide 23: Sugar - Domestic Production & Consumption
Sugar - Domestic Production & Consumption Sugar 03 –04 04 –05 05 –06 06 –07 07 –08 (P) 08 –09 (E) Opening Stock 12.5 8.5 4.9 3.6 9.2 8.1 Production 13.5 12.7 19.3 28.3 26.3 15.0 Imports 0.4 2.1 0.0 0.0 0.0 3.0 Total Available 26.4 23.3 24.1 31.9 35.5 26.1 Consumption 17.7 18.5 19.3 21.0 22.5 23.0 Ex
Slide 24: Sugar – Key Differentiators
Sugar – Key Differentiators Major facilities located in cane rich areas of Western Uttar Pradesh with more than 80% cane SUGAR PLANT LOCATIONS intensity – fertile and irrigated land Deoband Chandanpur (14,000 TCD) (6,000 TCD) Sugar cane catchment area for all sugar units Raninagal (5,500 TCD) un
Slide 25: Sugar Manufacturing
Sugar Manufacturing Crushing started late during this season (2008-09) Extensive Cane development programme and on account of lower yield and recoveries due undertaken to ensure adequate cane availability to climatic factors, the total cane crush was 3.73 Sugar cane yield and recoveries were a
Slide 26: Sugar – Co-Generation Business
Sugar – Co-Generation Business This business is counter cyclical to the sugar cycle as the input price of bagasse is counter cyclical to sugar 68 MW of co-generation capacity in two units; 100% 42 – 43 MW of exportable power during season and off-season 90% 1174 41 On account of lower cane cru
Slide 27: Sugar - Distillery Business
Sugar - Distillery Business Integration of Sugar operation – value addition Produced 16 million litres of alcohol and sold 13 of by-product - molasses million litres during H1FY 09 160 KLPD distillery, commissioned in Achieved turnover of Rs. 371 million during H1FY 09 with a PBIT margin of
Slide 28: Q2 FY 09 Financial Results
Q2 FY 09 Financial Results Net Sales (Rs. In Million) PBIT (Rs. In Million) Q2 FY08 Q2 FY 09 Q2 FY 09 Q2 FY 08 4576 3783 891 698 Revenue Composition PBIT (Rs. In Million) (Rs. In Million) Sugar Engineering Sugar Engineering 4075 672 2767 489 361 318 1582 1739 Q2 FY 09 Q2 FY 08 Q2 FY 09 Q2 FY 08
Slide 29: Q2 FY 09 Financial Results
Q2 FY 09 Financial Results Net Turnover – Sugar Businesses Net Turnover – Engineering (Rs. In Million) Businesses (Rs. In Million) Q2 FY09 Q2 FY 08 Q2 FY 09 Q2 FY 08 1173 1405 3201 2008 682 630 222 187 180 155 193 125 Sugar Co-generation Distillery Turbine Gears Water PBIT – Sugar Businesses PBIT –
Slide 30: Q2 FY 09 Financial Results
Q2 FY 09 Financial Results 44.10% PBIT Margin (%) 45.00% 40.00% 35.00% 35.31% 36.00% 30.00% 22.91% 27.04% 29.44% 25.00% 18.88% 20.92% 22.46% 20.00% 15.73% Q2 FY08 15.00% 10.00% 13.71% Q2 FY09 5.00% 0.56% 0.00% Sugar Cogeneration Distillery Turbine Gears Water Order Book in Millions TBG GBG WBG 816 1
Slide 31: Retail Business – Triveni Khushali Bazaar
Retail Business – Triveni Khushali Bazaar Triveni has launched a chain of stores called Triveni’s channel partners include HPCL, Apollo “Triveni Khushali Bazaar”, for rural and semi tyres, IFFCO, Chambal, Atlas, Godrej, HLL, etc urban customers – currently 42 stores in operation The company ha
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 customer
Slide 33: Disclaimer
Disclaimer For more details contact: Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our CN Narayanan financial and growth projections as well as statements concerning our plans, strategies, intentions
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