Ganesha Ecosphere Limited · NSE:GANECOS
Ganesha Ecosphere — Investor Presentation (November 2011)
25 slides from Ganesha Ecosphere's investor presentation, November 2011
Slide 1: Ganesha Ecosphere Ltd Corporate Presentation
Ganesha Ecosphere Ltd (Formerly Known as Ganesh Polytex Ltd.) Corporate Presentation November- 2011 BSE Code: 514167 Bloomberg Code: GNPL IN Reuters Code: GNSP.BO www.ganeshaecosphere.com Recycling used PET bottles into fibers…
Slide 2: PET Bottles - A Lifestyle Product
PET Bottles - A Lifestyle Product Resulting into Excess consumption PET waste
Slide 3: PET Facts
PET Facts Glass and Aluminum Contribute 68% and 18% PET is fast replacing containers yield 230% Accounts for 40% of less solid waste by glass and aluminum in and 175% more global packaging mix weight vis-à-vis glass and packaging market atmospheric emissions aluminum containers vis-à-vis PET. PET is
Slide 4: Recycling is the need of the hour
“Waste is a tax on the whole people” - Albert W. Atwood RECYCLING is the need of the hour
Slide 5: When we heal the earth, we heal ourselves
WW “When we heal the earth, we heal ourselves” - David Orr
Slide 6: PET bottles take hundreds of years to decompose; recycling is the need
It takes hundreds of years for a PET bottle to decompose, recycling is the only method to protect the environment; as of now only about 30-40% of bottles are recycled! The use of PET bottles is growing at 7% YoY Ganesha Ecosphere is India’s largest player in PET Recycling, growing @ 40% CAGR over la
Slide 7: End-use Applications of RPSF
End-use Applications of RPSF
Slide 8: PET Recycling Opportunity
PET Recycling Opportunity High scope of growth PET is one of the fastest growing segments in plastics providing a hygienic, durable and user friendly packaging solution for all kind of bottled drinks, beverages, pharmaceuticals, liquor, chemicals, and other liquid products. With life style changes a
Slide 9: Brief Profile
Brief Profile • Ganesha Ecosphere Ltd. (GESL) has been churning out Polyester staple fibers and Yarns from used PET bottles for years. • Mr. Shyam S Sharma, 69 year old technocrat got inclined towards entrepreneurship in the late 1980’s after working with various Birla group companies for more than
Slide 10: Vision & Mission
Vision & Mission Vision To become a Global Corporate citizen committed to recycle every PET bottle which is thrown into waste with world class recycling facilities and to create wealth for our stakeholders through conducting business around social and environmental concerns Mission To be a high perf
Slide 11: PET Recycling Business
PET Recycling Business • Eco Friendly – PET is non Bio-degradable in nature which puts ecological balance for a toss – PET beneficiation is a noble environment friendly endeavor through which materials spurned by society is transformed into things for human use – In days ahead various government bod
Slide 12: Industry Potential: Polyester Fiber Demand
Industry Potential Spectacular Polyester Fiber Demand Growth A global demand CAGR of 8.5% from 2009-2013, well above GDP Polyester Fiber Consumer and by Region Real Global GDP“? 7 North North CAGR '09E-13F = +3-4% —> America America European European Union Union Central Central | Europe Europe Middl
Slide 13: Industry Potential: PET Demand Growth
Industry Potential Spectacular PET Demand Growth A global demand CAGR of 7.6% from 2009-2013, well above GDP PET Resin Demand by Region 2009E 2013F Real Global GDP“ 9 CAGR '09E-13F = +3.4% North America PET Resin Demand@) Asia CAGR ‘09E-'13F = +7.6% 1. Real GDP, US$-based, Constant 1998 Prices. Sour
Slide 14: Product/Process Overview
Product/Process Overview Polyester Staple Fiber (PSF) is kind of Polyester Fiber made directly from Purified Terephthalic Acid (PTA) & MEG or PET Chips or from Recycled PET Bottle Flakes. PSF made from PTA & MEG or PET Chips is known as Virgin PSF and PSF made from Recycled PET Flakes is called Recy
Slide 15: Manufacturing Process
Manufacturing Process Raw Material The company has tied up with franchisee vendors in different cities to procure the PET waste bottles which is the main raw material Sorting & Washing: Sorting Raw material storage Yard: Dryer section: Vacuum bottles to remove non- PET Input raw Material - Used dryi
Slide 16: Divisional Breakup
Divisional Breakup Capacities Division Capacity Recycled Polyester Staple fiber (RPSF) 39,600 TPA at Rudrapur 18,000 TPA at Kanpur Dyed Texturized / Twisted Filament Yarn 2,400 TPA at Kanpur Divisional Revenue Year Recycled Polyester Staple fiber (RPSF) Yarn Domestic Export Total Qty.(MT) Value % of
Slide 17: Business Strengths
Business Strengths Global Consumption of PET Packaging Point 1: Proliferation use of PET bottle on Bottles the back of 7-8% CAGR growth coupled 86% Films 11% with low scale of recycling (about 30-40%) to yield abundant feed stocks to be recycled Others 3% Share of fiber consumption MMF Share inching
Slide 18: Business Strengths
Business Strengths Global Fibre consumption pattern (%) Point 4: Changing life styles and cost effectiveness 7 5 5 17 led to innovative applications of the MMF. This has 5 40 clearly helped to expand its market share. Such 10 54 57 trend is likely to continue. Some of the notable ones 5 68 3 2 are w
Slide 19: Management Team
Management Team Mr. Shyam S. Sharma – Chairman & MD – A visionary entrepreneur. Served the Birla group for 25 years in various senior positions and promoted the said company in the year 1987. He is well versed with the fiber and textile technology with a hands on experience of over 47 years. Mr. V.
Slide 20: Strong Show
Strong Show Net sales (mn) 3500 1400 Gross block(mn) 1331.3 2913 3000 1200 1025.4 2500 1000 1989 858.3 2000 800 669.7 1500 1354 600 472.9 1054 1000 400 627 500 200 0 0 FY 07 FY08 FY09 FY10 FY11 FY 07 FY08 FY09 FY10 FY11 EBITDA (` mn) EBITDA Margin PAT(` mn) PAT Margin 400 364 200 180 350 180 300 160
Slide 21: Key Financials
Key Financials ` mn Particulars/Year FY09 FY10 FY11 FY12E FY13E Income Statement Net Sales 1354 1989 2913 3647 4582 Change (%) 28 47 46 25 26 EBIDTA 173 243 364 447 659 EBIDTA margin (%) 12.8 12.2 12.4 12.3 14.4 PAT 43 90 180 200 264 Change (%) 16 107 100 11 32 PAT Margin(%) 3.2 4.5 6.1 5.5 5.8 Cash
Slide 22: Key Ratios
Key Ratios Ratios FY09 FY10 FY11 FY12E FY13E EPS 3.8 8.5 12.9 12.3 14.8 P/E 16.8 7.5 4.9 5.2 4.3 Price/Book Value 2.6 2.2 1.6 1.3 1.0 EV/EBDITA 8.4 5.7 4.0 4.42 3.72 Mkt Cap/Sales(x) 0.6 0.4 0.3 0.3 0.2 ROE 15.3 21.5 29.4 23.2 22.2 ROCE 12.6 16.9 18.9 14.9 14.8 Interest Coverage (x) 1.8 2.2 3.7 3.5
Slide 23: Awards & Recognitions
Awards & Recognitions GESL was conferred with the coveted “Silver Shield” for Excellence in Financial Reporting by the Institute of Chartered Accountants of India by Shri Salman Khurshid, Hon’ble Union Minister of State (I/C) for Corporate Affairs. The Annual Report and Accounts for the year ended M
Slide 24: Way Forward
Way Forward…. • Moving up in value chain through setting up a greenfield capacity for manufacturing spun yarn with an installed capacity of 25000 spindles • Expanding Pet Bottle Recycling capacity by another 14400 tpa. • Having established its pole position in the market, with the largest capacity,
Slide 25: Thank You
Crrecycle | the possibilities are endless.
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