Presentation on theme: "Autoline Industries Limited IPO Presentation by BOB Capital Markets Limited (A wholly owned subsidiary of Bank of Baroda) December 2006."— Presentation transcript:
Autoline Industries Limited IPO Presentation by BOB Capital Markets Limited (A wholly owned subsidiary of Bank of Baroda) December 2006
The Issue Name of CompanyAutoline Industries Limited Issue Size & TypeRs. 75 Crores BOOK BUILT BRLMBOBCAPITAL Syndicate MemberENAM Securities Pvt. Ltd. Price BandRs 200 – 225 Issue Opening/Closing8 th Jan 07 – 12 th Jan 07
Business Sector Autoline is engaged in the manufacture of AUTO COMPONENTS : SHEET METAL COMPONENTS FORMED TUBULAR COMPONENTS (Silencers & Exhaust Systems) MAJOR ASSEMBLIES SKIN PANELS
The Company Started operations in 1995 as Autoline Pressings/Autoline Stampings Pvt. Ltd. Became public limited in January 2006 under the present name Has 5 manufacturing locations in Pune, all of which are ISO/TS- 16949:2002 certified
Locations CHAKAN 114,000 sq feet of built-up area on land admeasuring 114,000 sq feet. T-135 MIDC, Bhosari 40,000 sq feet of built up area on land admeasuring 53,000 sq feet. KUDALWADI 10,000 sq feet of built up area on land admeasuring 10,000 sq feet.
Subsidiaries/ Joint Ventures Western Pressing Private Limited Manufactures Formed Tubular Products, Cross Members, Silencers and Exhaust Systems. This was acquired as a wholly owned subsidiary in November 2005. Operations merged with Autoline from 1 st April 2006. Autoline Dimensions Software Private Limited Formerly known as Dimension Engineering Software Services Private Limited, it got its present name after Autoline took a 51% stake in March 2006, with a view to become a Concept to Delivery Company. ADSPL is into CAD/CAE & Design Engineering Services. Union Autoline Spare Parts LLC, UAE UAE based JV company set to manufacture after market auto parts for the Gulf region and African Markets.
Financial Snapshot (Rs Mn) 31.03.200431.03.200531.03.200630.11.2006 Equity Capital40.0960.1469.4570.34 Reserves25.0520.04134.77219.57 Secured Loans178.21216.91312.79310.55 Net Fixed Assets 210.49305.53527.28707.32 Income (Sales)510.81684.821113.261182.81 Interest15.5016.2217.5715.01 Depreciation9.9014.7421.0617.12 Profit Before Tax 5.9319.8077.0484.53 Tax/Provision for Tax 0.501.606.929.74 Net Profit5.4318.2070.1374.80 EPS (Rs.) diluted 1.363.6310.8216.05
Technology Design Process Optimization & Finite Element Analysis Modeling Through MoU for technical collaboration of Detroit Engineered Products, Autoline has access to a suite of proprietary tools and design- engineering platforms (Meshworks) and software tools that reduce design cycle time from six months to approximately six weeks. The company plans to improve on its Meshworks Platform to develop additional productivity enhancement mechanisms for the automobile design industry.
Strategy Art to Part manufacturing solution for specialized Vehicles The company has identified components and assemblies which are needed to be re-engineered for local conditions. The company caters to OEMs of these specialized vehicle manufactures like Stokota (Belgium) and is in advanced negotiations with other companies in Europe and the United States. Auto Component Export The company is targeting the export market with low cost – high quality components like brake shoe assemblies and exhaust systems. The primary target markets for these products is the US, Middle East, Africa and Europe. The company expects that within the next 24 months, 15% of sales revenue will be contributed by auto components exports. Additionally due to comparative advantage economies associated with export from India to developing markets, the company expects to see significant improvement in its profitability. Large OEMs The company will continue to drive revenue from large OEMs through its cost effective manufacturing, to increase top line revenue and drive economies of scale. The company expects that 50% of the sales revenue will continue to be derived by billing to domestic OEMs.
Value Chain Focus Product Design Product Development Engineering Design Tooling Prototyping Mass Manufacturing Marketing Sales Delivery & Service DEM Solution Providers Boutique design shops or R&D departments of large OEMs Original Equipment Manufacturers OEMs or Vendors OEMs OEM dealer network
Major Customers Tata Motors Ltd. Bajaj Auto Ltd. Mahindra & Mahindra Ltd. FIAT, India. Walker Exhaust (India) Pvt. Ltd., a wholly owned subsidiary of TENNECO Group, USA Kinetic Engineering Ltd. Stokota Engee (I) Pvt. Ltd.
Board of Directors Mr Vikram Bhat Mr Shivaji Akhade Mr Sudhir Mungase Mr M Radhakrishnan Mr Gopal Patwardhan Mr Ajit Karnik CA Vijay Thanawala Mr Prakash Nimbalkar Mr Abraham Koshy Mr Stanton Dodson
Capital Structure (Face Value / Share : Rs 10) Total No of Shares : 70,33,511 Promoters : 56,39,188 (80.18%) Private Equity : 10,19,323 (14.49%) Others : 3,75,000 (05.33%) Autoline proposes to raise Rs 750 Million through the IPO
Autoline Industries Limited Comparison with Peer Group * Eight Months results annualized All Others 2005-06 Source Capitaline Database Rs.crores CompanyCapitalNet WorthCESalesNet Profit Autoline*7.0329.8888.44177.4211.22 JBM6.8030.6652.30111.186.74 Automotive Stampings (ASAL)10.2046.3782.88276.794.50 Automotive Corp of Goa (ACGL)4.9422.6436.49253.9815.22 Rasandik4.7321.8377.80147.834.95
Comparison with Peer Group Source Capital Line Price on 8 th Dec 2006 CompanyEPSBVP/EP/BV Autoline15.9542.44NA JBM8.5741.2810.301.94 Automotive Stampings (ASAL)2.7746.2033.202.55 Automotive Corp of Goa (ACGL)28.5427.2115.9016.54 Rasandik10.3046.1512.802.86
The Indian Automotive Industry Industry Snapshot: Largest three wheeler market in the world Second largest two wheeler market in the world Fourth largest passenger vehicle market in Asia Fourth largest tractor market in the world Fifth largest commercial market in the world The automotive sector comprises the Original Equipment Manufacturers (OEMs) and auto component manufacturers. The domestic automobile market has been growing at 14.2 percent CAGR over 4 years (2000-01 to 2004-05), while the auto components market has been growing at 19.2 percent CAGR (2000-01 to 2003-04). With almost 24 percent growth in car sales in 2004, India has emerged as the fastest growing car market in the world, outstripping China's estimated 13.7 percent growth last year. Source ACMA
The Indian Automotive Industry The output of auto component industry in India has increased at a CAGR of around 25 percent for the past three years from US$ 4.45 billion in 2002 to US$ 8.7 billion in 2005. Investments in this sector have increased from US$ 2.3 billion in 2002 to US$ 4 billion in 2005, a CAGR of 20 percent. The exports of automobiles from India have been growing at a CAGR of 39 percent for the past four years. Auto component exports from India grew from US$ 760 million in 2002-03 to an estimated US$ 1.4 billion in 2004-05 and estimated to be around US$ 20-25 billion by 2015. India is also emerging as an outsourcing hub for global majors. Companies like GM, Ford, Toyota and Hyundai are implementing their expansion plans in the current year. While Ford and Toyota continue to leverage India as a source of components, Hyundai and Suzuki have identified India as a global source for specific small car models. Auto majors like General Motors (300 Acres), Volkswagens (500 Acres), Daimler Chrysler (200 Acres) are all setting up plants at Chakan, Pune. (Source ACMA)