Hindusthan National Glass & Industries Ltd. CORPORATE PRESENTATION

Slides:



Advertisements
Similar presentations
Western Financial Group 2007 Year End Financial Results Conference Call March 28, 2008.
Advertisements

FOURTH QUARTER 2012 INTERIM REPORT CEO ARNE MJØS CFO TORUNN HAVRE OSLO, 27TH FEBRUARY 2013.
Investor Conference March 2001, Rio de Janeiro 1 This presentation contains statements that constitute forward-looking statements within the meaning of.
international strategic management
INVESTMENTS IN POWER SECTOR
Cost Management ACCOUNTING AND CONTROL
Chapter 1 The Study of Body Function Image PowerPoint
UBS – 2006 Global Real Estate Conference Delivering Value Across Europe Robert Watson CEO.
Financial Conglomerates Koos Timmermans
The Baltic States: Recovery, Outlook, and Challenges Economic Crossroads: From Recovery to Sustainable Development in the Baltic States and the EU Riga,
1. 2 Why are Result & Impact Indicators Needed? To better understand the positive/negative results of EC aid. The main questions are: 1.What change is.
“Review Study Guide nightly”
Making Your Business Grow
NPV.
PLIVA, a Member of the Teva Group Tihomir Oreskovic
Watco Companies Overview January 25, 2013 Southwestern Rail Conference
Outlook for the steel market
1 John Page Chief Economist, Africa Region World Bank INVESTING IN AFRICAS GROWTH What Role for The Diaspora? Cape Town, February 2008.
2007 Arledan Investments Ltd. Company Profile
Trade Promotion Management Study Summary Charts
Nitco Limited Investor Update January 28, 2009 October - December 2008.
CHAPTER 5 ESSENTIALS OF FINANCIAL STATEMENT ANALYSIS.
Historical Perspective on British Columbias Credit Rating Presentation to Financial Management Institute June 18, 2008.
Steel - the road forward Nicholas Walters. Steel: A key driver of the worlds economy.
February 16, 2011 Fourth Quarter Results. 2 02/16/2011 Forward Looking Statements This conference call may contain certain "forward-looking statements"
Indonesia’s current account challenge
Copyright © 2009 Pearson Prentice Hall. All rights reserved. Chapter 8 Capital Budgeting Cash Flows.
Capacity Planning For Products and Services
Capacity Planning For Products and Services
$424$ Financial Planning and Control Financial Planning
Findings from a survey of HGIEs in eight countries and policy implications Mutual Learning Seminar Session II: Policies to support high-growth innovative.
Türk Ekonomi Bankası A.Ş Q Results. TEB Financial Group of Companies and the Merged Bank.
1 Investor Presentation FY Ending - Mar SAFE HARBOUR STATEMENT Certain statements in this presentation concerning our future growth prospects.
Hindusthan National Glass & Industries Ltd Q3 & 9 Months Ended FY10-11 Investor Release February 07’ 2011.
Model and Relationships 6 M 1 M M M M M M M M M M M M M M M M
Turkish Economy “Recent developments” Ekrem Keskin November 2008.
Chapter 4: Financial Statement Analysis
The Balance Sheet Statement
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Global Business and Accounting Chapter 15.
Managing International Operations
Dealing with Competition
International Business 7e
Globalization and International Trade Lecture 8 – academic year 2014/15 Introduction to Economics Fabio Landini.
Internal Analysis.
Implementing Strategy in Companies That Compete in a Single Industry
Economic Systems.
[This slide should be deleted before use]
1 FIRST QUARTER 2009 INVESTOR CONFERENCE CALL. 2 Today ’ s Hosts Steve Romano Chairman & Chief Executive Officer Jim Baumgardner President & Chief Operating.
April 27, 2009, Atlas Copco Group Q1 Results April 27, 2009.
April 28, Atlas Copco Group Q1 Results April 28, 2010.
Torrent Pharmaceuticals Ltd Investor Presentation Q2 FY 2012.
Atlas Copco Group Q2 Results July 16, Contents  Q2 business highlights  Market development  Business areas  Financials  Outlook 2 July 16,
July 18, 2008, Atlas Copco Group Q2 Results July 18, 2008.
Business Presentation
AUDITED GROUP INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, Ksh M Ksh M % Turnover14,17911,40124% EBITDA3,0512,66614%
0 March 2009 Annual Results Announcement Agenda Financial Highlights Business Review Strategies and Plans Open Forum.
Chapter 1 Globalization of markets and competition.
Alvarajo [printed: November 3, :46 PM] [saved: November 3, :46 PM] S:\Sungard\2008_11 Materials\Presentation Recreate\10084Q438_Sungard_v2.ppt.
MWV : A Global Packaging Company John A. Luke, Jr. Chairman and CEO 10 th Annual Citigroup Global Paper and Forest Products Conference December 1, 2005.
Half-Yearly Review 2011 Six months ended 31 December 2010 ®
Lavendon Group plc 2006 Preliminary Results Presentation March 2007.
Nitco Tiles Ltd Investor Update January 24, 2008 October – December 2007.
SECOND QUARTER 2004 EARNINGS John A. Luke, Jr. Chairman and CEO James A. Buzzard President Peter H. Vogel, Jr. Interim Principal Financial Officer July.
United Breweries Limited
Wind Denmark Energy Annual Event 2015 Financing of companies within the wind industry from a bank perspective Torben André Petersen, Head of Branch Region.
2015 YEAR END RESULTS 17 March 2016 Arbuthnot Banking Group PLC.
ALAFCO Aviation Lease and Finance Company (K.S.C.P.)
Infosys Investor Relations © Infosys Technologies Limited
Adroit Market Research +1 (214) Single Use License: US$ 3500 Request Sample Global.
Presentation transcript:

Hindusthan National Glass & Industries Ltd. CORPORATE PRESENTATION 1

Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Hindusthan National Glass & Industries Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2 2

Table of Contents Company Overview Business Overview Industry Snapshot Operating and Financial Performance Annexures 3 3

Company Overview 4 4

Company overview Dominant position Consumption Ancillary Market share of ~ 55% in the container glass segment Installed TPD capacity in India (2,925 MT) and Germany (320 MT); Planned capacity expansion to ~6,765 TPD by FY17 Consumption Ancillary Diversified end user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others Pan India Presence Manufacturing facilities in 6 locations across India, 7th facility will start by April, 2012 Additionally, international manufacturing footprint through its 100% subsidiary HNG Global GmbH, Germany Competent management Strong management with vast experience and domain knowledge Successful history of acquiring loss-making units and turning them around Well established customer relations Six decades of presence in the industry has enabled the Company to develop long standing customer relations Strong Balance Sheet In a capital intensive industry, the Company has been able to maintain a comfortable long term debt/ equity ratio 5

Corporate Milestones First 30 TPD plant commissioned in 1952 Second 90 TPD plant commissioned in 1964 Acquired 700 TPD facility in Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Company renamed as Ace Glass Rated Best Indian Glass & Ceramics Company by Dun & Bradstreet Work on 7th plant at Naidupeta (650 TPD) initiated – operations to commence by Q1 FY13 Ace Glass Containers merged with HNG 1952 2001 2002 2005 2006 2007 2009 2010 2011 Capacities expanded to 1,100 TPD Acquired 320 TPD loss making glass division from L&T at Nashik Established float glass plant in Halol under HNG Float Glass Acquired 180 TPD Neemrana unit of Haryana Sheet Glass Nashik plant to add capacity of 650 TPD by Q4 FY12. Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany 6 6

Corporate Structure Hindusthan National Glass & Industries Ltd. Consolidated net revenues: Rs. 15,678 millions. Standalone net revenues: Rs. 15,525 millions. 47.4% 100% 100% 100% Glass Equipment (India) Ltd. Quality Minerals Ltd. HNG Global GmbH HNG Float Glass Ltd. (HNGFL) Net revenues: Rs. 299 millions. Capital Goods & Spares Supplier to Glass Industry Net revenues: Rs. 10 millions. Mineral Supplier to Glass Industry Net revenues: Rs. 2,948 millions. Manufacturer of Float & Processed Glass Acquisition of assets of Agenda Glas AG Note: 1. All revenue figures are for FY 2011. HNG Global GmbH was acquired after March 31, 2011. 7 7

Business Strategy Capacity Expansion Expanding product portfolio Acquired and turned around four loss making units over the last nine years Planned organic expansion to ~ 6,765 TPD by FY17 Expanding product portfolio Presence across key user industries – liquor, beer, pharmaceuticals and food Capitalizing on opportunities in the high growth float glass industry Adapting new technology Introduced Narrow Neck Press and Blow (NNPB) technology, first in India Sustained competitive advantage through product optimization and continuous innovation Increasing production of light weighted bottles to enhance margins Backward integration Captive power plant to improve cost efficiencies (Existing and Proposed) Silica mining to support raw material supply chain (Proposed) Manufacturing of glass machines & spares in 100% subsidiary GEIL International Footprint Gained European presence, one of the largest markets for food and alco-bev industries Access to technological strength and production processes 8

Business Overview 9 9

Pan – India Presence Rishikesh Bahadurgarh Chennai Delhi Neemrana Vadodara Kolkata Puducherry Rishra Nashik Mumbai Hyderabad Naidupeta Bengaluru Marketing Offices Container Glass Plant Locations Upcoming Greenfield Mega Project Upcoming Brownfield Mega Project (Nashik) Float Glass Unit HNG, the largest container glass manufacturer in India has a manufacturing capacity of 2,925 tonnes per day Multi-locational production facilities enable the Company to: Lower landed cost to customers Provide JIT supplies Cater to key customers across India GEIL Note : Further, the Company is setting up greenfield manufacturing facilities in new locations in West Bengal and Rajasthan. The total capacity is expected to grow to ~6,765 TPD by FY17 through Greenfield and Brownfield expansions in India. 10 10

International Presence Plant location: Gardelegen, Germany Capacity: 320 TPD Gardelegen 11

HNG Global GmbH, Gardelegen, Germany One of the most modern production facilities in Europe, with 320 tpd capacity. HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to all key RM’s. The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. Company has 147 FTE, the average age of employees is 37 years, with 50% of the workforce below the age group of 35 yrs. Germany is the largest market for Container Glass in Europe, with a share of ~ 20%. Company’s technological edge can also be back pedalled in HNG’s Indian operation, as Germany is always considered as two steps ahead in terms of technology, from the rest of the World. 12

New Furnace(N) / Rebuild (R) Expanding Scale Location Present Capacity Expanded Capacity To be Commissioned by New Furnace(N) / Rebuild (R) RSR Furnace 1 225 280 Already started R RSR Furnace 2 240 250 RSR Furnace 6 330 450 2013-14 EAST Furnace - 650 2014-15 N BGR Furnace 3 BGR Furnace 4 275 270 BGR Furnace 5 180 NMR Furnace 200 2015-16 RSK Furnace 2 140 2012-13 RSK Furnace 1 290 RJSTHN Fur 1 RJSTHN Fur 2 RJSTHN Fur 3 350 2016-17 PDY Furnace 1 360 550 NSK Furnace 1 355 545 NSK Furnace 2 640 1st March, 2012 Naidupeta Gardelegen 320 Acquisition TOTAL 3,245 6,765   Present capacity of 3,245 TPD with proposed expansion to ~ 6,765 TPD by FY17 13 13

Caters to customers across segments Strong customer relationships PHARMACEUTICALS BEER LIQUOR FOOD SOFT DRINKS Caters to customers across segments 14

HNG Float Glass Overview Commenced operations in February 2010 Established a 600 TPD Greenfield Plant at Halol, Gujarat Accomplished 100% capacity utilization in the first year of operations One of the fastest growing Float Glass companies Achieved pan-India market share of 21% in clear glass and became industry leader in the west Indian market with 30% market share in clear glass in its first year of operations Extensive and expanding pan India dealer network Created a strong distribution base with over 928 dealers spread across India Diversification within the glass sector Leveraged six-decade experience in glass manufacturing Synergies in technology – Significant part of float glass manufacturing process is similar to that of container glass Economies of scale achieved in raw material procurement 16 16

HNG Float Glass Overview Future growth plans Setting up of a Mirror line, High performance Low E glass, Two float lines at Halol (Gujarat) & South India Second Float Line at Halol for 900 TPD for architectural glass by FY14 Setting up additional 1,200 TPD float glass Capacity for architectural quality in South India by FY16 Plan to commission production facility for Soft coated High performance Low E Glass by start of FY14 Industry growth drivers – low penetration of Glass and boom in the end user industry to drive growth Nascent industry in India with just 8 float glass lines compared to 246 in China Indian Float Glass industry has been growing at c.20% CAGR over the last three years India’s total installed capacity for float glass is ~ 4,700 TPD which results into saleable production of 3,840 TPD Low per capita consumption of Float Glass in India of 0.8 kg as compared to 12 kg in China and 10.4 kg in USA 17 17

Industry Snapshot 18 18

Global Packaging Industry As per World Packaging Organization, the global packaging industry at present is estimated to be USD 425 billion in revenues, with ten year historical growth at ~ 3.1% CAGR, expected to be USD 597 billion by 2014 Projected to grow at ~ 3.5% CAGR in the next five years mainly driven by growth in emerging markets (Asia Pacific region) Source: Owens-Illinois, Inc. - Investor presentation, March 2010 19 19

World glass container per capita consumption Indian Glass Packaging Industry At US$ 14 bn, Indian packaging industry has been growing at ~ 15% over the last few years Expected to accelerate further with increasing urbanization, growing middle class and expansion of modern retail Indian glass container market stood at US$ 1 bn plus in FY10 with a growth of ~ 12% Entry barrier owing to capital intensive nature Top 3 players are HNG, AGI Glaspac and Piramal Glass Low per capita glass container consumption of 1.5 kg in India as compared to 27.5 kg. in US and 10.2 kg. in Japan Strong economic drivers for end-user segments (liquor and beer, pharmaceuticals, food, cosmetics, etc.) World glass container per capita consumption (Kg) 20 20

Operational & Financial Snapshot 22 22

Operational Overview Key Highlights 23 Firm domestic demand driven by growth in end user industries - liquor, beer, pharmaceuticals, foods and carbonated drinks Manufacturing facilities located across India provide an edge over peers who have regional presence Pan India distribution network Implementation of advanced technology enables improved cost efficiencies 23 23

Production - Capacities FY11-12 Volume Mix -FY11 End user segment Geography Production - Capacities FY11-12 1 Others include soft drinks 24 24

Financial Performance Net Turnover EBITDA PAT EPS (Rs. / share) All figures stated in Rs. millions on a standalone basis 25 25

Particulars (Rs. million) Half Year ended September, 2011 Balance Sheet Particulars (Rs. million) Half Year ended September, 2011 Year ended March, 2011 Year ended March, 2010 Share Holders Funds 12,105 11,661 10,428 Loan Funds 10,571 63,95 5,657 Deferred Tax Liabilities 712 697 TOTAL LIABILITIES 23,388 18,769 16,782 Net Block + Capital Work-in-progress 17,560 13,845 11,438 Investments 2,281 1,775 1,471 Net Current Assets 3,547 3,149 3,873 TOTAL ASSETS All figures stated in Rs. millions on a standalone basis 26 26

Key Balance Sheet Ratios ROCE 27 27

H1 FY 2012 - Financial Highlights Profit & Loss Statement Snapshot Particulars (Rs. million) H1 FY2012 H1 FY2011 Shift (%) Total Income 8,557 7,366 16.2 EBIDTA 1,512 1,494 1.2 Margins 17.7% 20.3% Depreciation 551 494 11.5 Interest 420 242 73.6 Profit Before Tax 541 759 -28.7 6.3% 10.3% Tax expense 112 173 -35.3 Profit After Tax 429 587 -26.9 5.0% 8.0% EPS (in Rs.) 4.91 6.72 All figures stated in Rs. millions on a standalone basis 28

Annexures 29 29

Shareholding Pattern Particulars % Shareholding (as on September, 2011) Promoters 69.98 Public Shareholding Insurance Companies 0.31 Bodies Corporate 3.93 Financial Institutional Investors 7.28 Individuals & Others* 18.50 Total 100.00 30.02 * Includes 16.76% held as Treasury Shares in the Company Total 87.3 million shares Listed at: National Stock Exchange (NSE) - HINDNATGLS Bombay Stock Exchange (BSE) - 515145 Calcutta Stock Exchange (CSE) 30 30

Ratings, Rankings & Accreditations Business Today Ranking (Out of 500 top listed corporates, as of October, 2011) In terms of Average Market Capitalization – 368th Rating by CARE (Credit Analysis & Research Ltd.) Long Term credit rating of AA+(implying high safety for timely servicing of debt obligations and carrying very low credit risk). Short Term credit rating of PR1(+), being the highest grade (implying the lowest credit risk). Rated as the best Indian Company in the Glass & Ceramics category by Dun & Bradstreet in years 2009 and 2010 Accredited with ISO 9001:2008 certification, ensuring stringent quality standards and ISO 22000 for food and safety Rated at No.35, out of the best 500 companies by Inc.India (Comprehensive ranking of India’s best performing mid-sized companies) in their Sep-Oct, 2010 issue. 31

Thank you Hindusthan National Glass & Industries Ltd. (HNG) For further information please log on to www.hngindia.com or contact: Laxmi Narayan Mandhana (CFO) HNG Tel: 033-2254-3100 Email: investor.relations@hngil.com Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1218 Email: anoop@cdr-india.com / dipti@cdr-india.com 32