Triveni Engineering and Industries Limited · NSE:TRIVENI
Triveni Engineering and Industries — Investor Presentation (February 2008)
32 slides from Triveni Engineering and Industries's investor presentation, February 2008
Slide 1: Corporate Presentation Q2 FY2008
Q 2 FY 2008 sugar | co-generation | distillery | turbines | gears | water oa] a Triveni Engineering & Industries Ltd.) Corporate Presentation
Slide 2: Table of Contents
Table of Contents • Triveni and its Business Divisions • Engineering Business • Sugar Business • Retail Business • Vision Statement 2
Slide 3: About Triveni
About Triveni Deoband Narainpur Noida / Delhi Khatauli Business Divisions Sabitgarh Raninagal Chandanpur Ramkola Naini SUGAR SUGAR ENGINEERING ENGINEERING Raipur •• Sugar Sugar Business Business •• Turbine Turbine Business Business Nagpur Latur Group Group Group Group (TBG) (TBG) Mumbai •• Co-genera
Slide 4: Revenue Composition
Revenue Composition 21000 40% 17000 Engg - 57% Sugar - 23% 27% Total - 33% 13000 20% 9000 24% 5000 1000 FY04 FY05 FY06 FY07 (* ) Sales CAGR FY04 – FY07 Sugar including Co-generat ion Engineering % Engineering (*) FY 07 data for 18 months ending 30st Sep. 2007. Accounting year extended to 30th Sep. 2
Slide 5: The Engineering Business
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Slide 6: Engineering Business - Revenue Growth
Engineering Business - Revenue Growth Sales - 57% 6928 941 511 8,380 18M FY07 FY06 2780 450 138 3,368 FY05 1626 239 82 1,947 PBIT – 87% 1242 189 1,431 FY04 500 1500 2500 3500 4500 5500 Turbines Gears Water (Rs. In Million) CAGR FY04 – FY07 6
Slide 7: Engineering - Power Generation Market
Engineering - Power Generation Market DEFINING DEFINING CHARACTERISTICS CHARACTERISTICS OF OF INDUSTRIAL INDUSTRIAL POWER POWER MARKET MARKET • The The market market is is price price sensitive sensitive • Market Market demands demands highhigh levels levels of of technology, technology, efficiency
Slide 8: Engineering - Power Generation - Potential to grow
Engineering - Power Generation – Potential to grow 1. Additional power requirement in the country estimated at 76,500 MW in next five years • Estimated demand of 25,000 MW to come in from captive /industrial /co-generation segments in the next five years. 2. Current industrial power consumption – ge
Slide 9: Engineering - Power Generation - Potential to grow
Engineering - Power Generation - Potential to grow 3. Costly fuel source to influence replacement of DG to TG sets • Currently, diesel is the major source of fuel used in many of the user industries for captive power generation. • Given the rising oil prices, there is tremendous scope for substituti
Slide 10: Engineering – Turbine Business Group
Engineering – Turbine Business Group • Triveni turbines are supplied to a wide cross section of industries like sugar, cogeneration, steel, paper, textiles, pharmaceuticals, IPPs, Defence etc. • Triveni has been manufacturing small turbines since 1968; over 2,000 turbines manufactured and sold since
Slide 11: Engineering – TBG Performance
Engineering – TBG Performance • Service as a differentiator - • An extensive network of Service centres spread across the country • Approx. 30% of the business unit’s personnel dedicated to after sales program • Reaching the customer site within 24 hours of service call • Currently over 900 turbines
Slide 12: Engineering – TBG – New Business Initiatives
Engineering – TBG –New Business Initiatives Strategic Tie-up with GE Oil & Gas for High Speed Reciprocating Compressors • GE Technology and Quality at Indian Prices • Estimated market size is Rs. 5 billion per annum based on the pipeline projects planned • Import bare compressors from GE and underta
Slide 13: Engineering – TBG – Going Forward
Engineering – TBG – Going Forward • Strong Research & Development team supported by an eminent team of external advisors from IISc, IIT and other notable institutions • Expanding the range of products – higher MW, higher pressure turbines • Spares & Services to form higher proportion of revenues in
Slide 14: Engineering - Gears Business Group
Engineering - Gears Business Group • 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 • The range up to 7.5 MW is manufactured using Triveni technology and the range above 7.5 MW is manufactured using t
Slide 15: Engineering – GBG Performance
Engineering – GBG Performance • Over 75% market share in below 25 MW and supplier to all major turbine competitors such as BHEL, Siemens. • Overall 50-55% market share in high speed gears across the power range • Supplied & Commissioned the highest power (54 MW) load gear box by Triveni for a GE fra
Slide 16: Engineering – GBG – Going Forward
Engineering – GBG – Going Forward • Focus on product development in high value added low speed applications • Revenue growth through Product diversification into hydel gear boxes, marine gear boxes and niche low speed gear boxes • Meeting the growing gear box demand in oil & gas segment & auxiliarie
Slide 17: Engineering – Water Business Group
Engineering – Water Business Group • Visible potential for water & waste water business in view of anticipated stringent environmental norms and scarcity of water • Market is increasing substantially in all areas- desalination, water reuse and decentralised solutions • Working Association with the f
Slide 18: Engineering – WBG Performance
Engineering – WBG Performance • The water business delivered a 270% increase in turnover for FY 07 at Rs. 511 million (Rs. 138 million). PBIT increased 161% to Rs. 58 million (Rs. 22 million). Significant growth (CAGR of 80%) achieved in turnover during the past four years • During the year, underto
Slide 19: The Sugar Business
The Sugar Business w.trivenigroup.com a
Slide 20: Sugar – Industry Scenario
Sugar – Industry Scenario Global Sugar industry • With estimated higher Asian production, global production to go up by 2% in 2007-08 to 170 million which will result in higher inventory (Source: FO Licht Sugar Report) • Brazil, the leading sugar producing nation, expected to have less sugar product
Slide 21: Sugar – Industry Scenario
Sugar – Industry Scenario Indian Sugar Industry • India, the largest consumer & second largest producer of sugar • Lower sugar production for the current year estimated to be ~ 26.5 million; significantly lower than the earlier estimates • Indian exports for 2007-08 expected to be 3 – 3.5 million to
Slide 22: Sugar – Advantages of an Integrated Model
Sugar – Advantages of an Integrated Model Profitability Margins : Profitability Margins : Decline in Sugar sugarcane utilization Sugar Decline in area for sugar production Power / Ethanol under sugarcane Power / Ethanol cultivation, lower Lower sugar production production, lower Delayed payment to s
Slide 23: Sugar – Domestic Production & Consumption
Sugar – Domestic Production & Consumption (Figures in MMT) Sugar 02 –03 03 –04 04 –05 05 –06 2006 –07 ($) 2007 –08 ($) 2008 –09 ($) Opening Stock 11.3 11.6 8.5 4.0(*) 3.9(*) 9.4 9.4 Production 20.2 14.0 12.7 19.3 28.3 26.5 22.0 Imports 0.0 0.4 2.1 0.0 0.0 0.0 0.0 Total Available 31.5 26.0 23.3 23.3
Slide 24: 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 • Crushed 6.1 million tonnes of cane in SY 2006-07 at an average recovery of 9.7% as against 3.98 million tonnes in the previous season – an increase of 53% •
Slide 25: Sugar – Key Differentiators
Sugar – Key Differentiators • Major facilities located in cane rich areas of Western Uttar Pradesh - Western Uttar Pradesh with more than 80% cane intensity – fertile and irrigated land • Green field expansions in Central Uttar Pradesh leading to sustainable long term cane availability • Sugar cane
Slide 26: Sugar – Going Forward
Sugar – Going Forward SY 05 SY 06 SY 07 Crushing Capacity TCD 25,250 40,500 61,000 Million Sugar cane crushed 3.59 3.98 6.10 Tonne • Integration of co-generation and distillation of alcohol - counter-cyclical to sugar cycle • Geared up to take up the benefit of upturn in sugar cycle on account of hi
Slide 27: 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 • 42 MW of exportable power for 270 days from two sugar units • Continual improvements in operational efficiencies - reduced steam consumption resulting in
Slide 28: Sugar – Distillery Business
Sugar – Distillery Business • Integration of Sugar operation – value addition of by-product - molasses • 160 KLPD distillery, one of the largest single stream molasses based distillery in the country located at Muzaffarnagar • Ideally located to use the molasses from two of the major units viz., Kha
Slide 29: Retail Business – Triveni Khushali Bazaar
Retail Business – Triveni Khushali Bazaar • Triveni has launched a chain of stores called “Triveni Khushali Bazaar”, for rural and semi urban customers – currently 42 stores in operation • Operates under three verticals – Agri, Non-Agri and Finance/Service – caters to the entire basket of goods requ
Slide 30: 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 31: 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
Slide 32: Thank You
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