Triveni Engineering and Industries Limited · NSE:TRIVENI
Triveni Engineering and Industries — Investor Presentation (January 2010)
30 slides from Triveni Engineering and Industries's investor presentation, January 2010
Slide 1: Triveni Engineering & Industries Ltd.
Ci a [riveni ENGINEERING & INDUSTRIES LTD.
Slide 2: Engineering & Industries Ltd.
] ENGINEERING & INDUSTRIES LTD.
Slide 3: Sales by sugar and engineering business FY05-FY09
FY09 14017 6482 FY08 10774 6529 Total 9126 5636 FY07* Engg 20% Sugar 35% 16% FY06 9269 3368 FY05 7864 1947 0 5000 10000 15000 20000 25000 Rs. In million Sugar Business Engineering Business FY07* - 12 months period from Oct 06 – Sep 07 3
Slide 4: Engineering business groups
Market leader in steam turbines upto 20 MW Largest manufacturer with current capacity of High speed gears upto 30 MW size & gear boxes in India TURBINE BUSINESS GEAR BUSINESS GROUP GROUP Engineering Business WATER BUSINESS GROUP A leading player in Page the high technology 5 - 19 water & waste water
Slide 5: Manufacturing Plants
Manufacturing Plants Noida Naini Ahemdabad Raipur Kolkata Nagpur Latur Mumbai Pune Hyderabad Kolhapur Vijaywada Bangalore Corporate Office Manufacturing Facilities Mysore Marketing and Service Centres 5
Slide 6: Engineering business sales and PBIT
4752 FY09 733 997 Sales - 35% 5092 FY08 769 668 4639 CAGR FY05 – FY09 Turbines FY07* 605 400 Gears Water 2780 FY06 450 138 PBIT – 69% 1626 FY05 239 82 0 1000 2000 3000 4000 5000 6000 FY07* - 12 months period from Oct 06 – Sep 07 6
Slide 7: Market Characteristics - Demand Drivers
Market Characteristics - ANNUAL MARKET FOR TURBINES Purchase decision based BELOW 15 MW IN YEAR 09-10 Premium on shorter on high levels of Demand is estimated at approx. deliveries technology, efficiency & 1000 MW per annum including additions on account of growth, lower life cycle cost fulfilment o
Slide 8: Power requirement gap and renewable energy market
Gap between power requirement and generation getting wide - Growing renewable energy market - huge potential for Bio mass based power generation Costly fuel source to influence replacement of DG to TG sets; thrust on co- generation Current industrial power consumption – generation gap to be bridged
Slide 9: Rising water demand
Rising Water Demand to double by 2025 from 2000 levels Dropping Per capita fresh water availability – 2000m3/yr in 1997 to 1500m3/yr in 2027 Growth potential in coming years in both major segments – Municipal and Industrial Jawaharlal Nehru National Urban Renewal Mission (JNNURM ) – annual estimated
Slide 10: Turbines: Business and Technical Perspective
Business Perspective Technical Perspective Cater to wide range of customers across Highly efficient turbines with segments like sugar, paper, co-gen, indigenously developed tapered textiles, pharma, steel twisted blades. Consistently upgrading the product range and efficiency. Fully integrated opera
Slide 11: Customer Care and Refurbishing
Customer Care Refurbishing Full Speed vacuum Balancing Tunnel for An extensive network of 13 Service centres balancing turbines, compressors/alternators up to 150 MW Refurbishment & Residual Life A strong team of 135 service professionals Assessment of all makes of turbines, compressors etc. ; Overh
Slide 12: Turbines business financial performance
5500 25 26 Net sales for FY 09 stood at Rs. 4.75 billion 24 were marginally lower than Rs.5.09 billion in 5000 23 FY 08. This marginal decline year on year is 5092 4752 the result of the severe economic slowdown 4500 4639 21 and financial crisis in the first half of the financial year. 4000 15 16
Slide 13: Turbines: Future Perspective
Future Perspective Strong Research & Development Consistent product range expansion – higher MW, higher pressure, higher temperature turbines Spares & Services to form higher proportion of revenues Refurbishment of all makes of turbines including overhauling & troubleshooting A dedicated in-house Tr
Slide 14: Gears: Business Perspective
Business Perspective Triveni is in the business of design, manufacture and marketing of gears and gearboxes Highest quality - DIN 3 quality assured The high speed gear range for steam, gas , pumps and compressor applications range above 7.5 MW-25 MW is manufactured using technology licensed from Luf
Slide 15: Gears business financial performance
Over 60% market share in complete high 800 769 35 speed gear market across applications up to 733 70 MW. 33 700 Supplier to all major turbine competitors 30 such as BHEL, Siemens. 605 600 29 Major retrofitting orders executed for cement industry, steel industry etc. Established strong 500 PBIT
Slide 16: Gears: Future Perspective
Future Perspective Focus on product development in high value added low speed applications Installation of 2 meter CNC profile grinder and vertical turret lathe Revenue growth & margin growth through Product diversification Source for high precision loose gears for major MNC’s. On the look out for e
Slide 17: Water: Business Perspective
Business Perspective Annual estimated market for Water/Waste Treatment is ~ Rs. 50 billion 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 substantially in all areas-
Slide 18: Water business financial performance
The water business Group (WBG) delivered a 49% 1000 17 16 997 increase in turnover in FY 09 at Rs. 997 million. 900 16 PBIT margins for the FY 09 at 15% at Rs. 148.3 million 15 15 800 WBG has achieved a CAGR of 87% in sales during the last five years 700 668 13 Focus on high value jobs like
Slide 19: Water: 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 manufac
Slide 20: Sugar Business
68 MW of One of the largest state-of- the – art sugar producer in Co-generation facility India SUGAR PRODUCTION DISTILLERY SUGAR BUSINESS COGENERATION One of the largest single stream molasses Page based distillery in the 20 - 28 country 20
Slide 21: Global and Indian sugar industry
GLOBAL SUGAR INDUSTRY INDIAN SUGAR INDUSTRY Two consecutive years of deficit in global sugar position resulted in most Country witnessed a turnaround – from an exporter of ~5 million in 2007- of the carry forward inventory exhausted 08 season to 2.5 million tonnes of imports in 2008-09 season; impor
Slide 22: 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, high sugarcane
Slide 23: Indian sugar supply and demand balance
Particulars 2005-06 2006-07 2007-08 2008-09 (E) 2009-10 (P) Total Opening Stocks 4.9 3.7 10.2 9.9 3.5 Production During the Season 19.3 28.3 26.3 14.6 15.0 Imports (white sugar) 0.0 0.0 0.0 0.2 2.0 Imports (raw sugar) 0.0 0.0 0.0 2.3 4.0 Imports (raw sugar processed) 1.1 5.2 Total Availability 24.1
Slide 24: Sugar yield and recovery lowest in a decade
08-09 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 (P) Cane Area (Million 2.14 2.05 2.15 2.40 2.30 2.04 2.31 2.66 2.85 2.14 Hectare) Average Yield (Tonnes/ 57.58 54.40 57.85 55.96 54.98 60.65 58.32 59.59 56.44 51.77 Hectare) Sugarcane Production 123.24 111.74 124.49 134.53 126.65 124.02 134
Slide 25: Sugar facilities in Western Uttar Pradesh
• Major facilities located in cane rich areas of Western Uttar Pradesh with more than 80% cane intensity – fertile and irrigated land Deoband Chandanpur (14,000 TCD) (6,000 TCD) • Sugar cane catchment area for all sugar units under canal irrigation – both in Western & Central Raninagal (5,500 TCD) U
Slide 26: Sugar operations 2008-09 season
Crushing started late during 2008-09 season and on Free Sugar realizations grew sequentially in FY 09 with a year on account of lower yield and recoveries due to climatic year increase of 45% factors, the total cane crush was 3.73 million tonnes, Higher realizations enabled sugar business to a
Slide 27: Co-generation performance
1400 45 68 MW of co-generation capacity in two units; 42 – 1339 43 MW of exportable power during season and off- 1300 season 1200 1174 On account of lower cane crush during the current 41 40 1100 season, the number of days of operations for co- generation facilities were significantly lower than
Slide 28: Distillery performance
Integration of Sugar operation – value addition of Significantly lower production & sales during the by-product - molasses quarter on account of lower than expected alcohol prices 160 KLPD distillery, commissioned in April 2007, is one of the largest single stream molasses based With signifi
Slide 29: Corporate vision and business strategies
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 customers and stakeholder
Slide 30: 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
Triveni Engineering & Industries — Investor Presentation (January 2010) on 6ix