aiae ppt october 2010

8/4/2019 Aiae Ppt October 2010

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www.aiaengineering.com

October 2010

Company Presentation


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1. Industry Opportunity

2. Business + Management

3. Financial Snapshot

4. Growth Strategy


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Industry: Mill Internals

High Chromium wear resistant parts for grinding & crushing equipment


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Industry: Mill Internals (contd)

Grinding Media Liners Diaphragm

Rollers & Table liners Blow bars / Hammers Dipping Tubes

Cement & Mining as key end-user industries


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Process Critical Input for Grinding

Non availability

Product failure

Grinding Operations cancome to a halt

Optimal design for

given application

Consistent end product quality Increased production volume

Reduce process costs

A small component of grinding cost, but essential for continuous production



Industry Size & Scope

Global market for Mill Internals for mining and cement sectors estimated

at 3 mn MT (Rs 125 bn) and growing at 4-5% per annum

Mill internals are consumables in grinding mills

Their design and properties (abrasion, corrosion, impact resistance) are critical to

grinding process efficiency

Demand driven by new projects and replacement for wear parts

Industry moving from cost of parts to total cost of ownership, driving

innovation in product development and total solutions

Move from forged grinding media to high chrome cast media

Total solutions include design of parts, metallurgy to meet the specific requirement

of the material being ground

varies from plant to plant



Industry size

India 25 KTIndia 25 KT

Mining Sector Demand at2.4 mn MT

Cement Sector Demand at

300,000 MT

Consumable Demand Project Demand

(mn MT)Estimated

production

Incremental

production

Grinding

mediaMill internals

Grinding

mediaMill internals Total

2003-04 1937 67 43,010 187,000 20,100 5,025 255,135

2004-05 2007 70 44,551 193,700 21,000 5,250 264,501

2005-06 2079 72 46,161 200,700 21,600 5,400 273,861

2006-07 2154 75 47,817 207,900 22,500 5,625 283,842






4. Growth Strategy



Company Overview

AIA Engineering Limited (AIAE ) promoted by Mr Bhadresh Shah, a firstgeneration entrepreneur, began operations in 1978

A niche manufacturer of impact / abrasion / corrosion resistant high chromecastings with rated capacity of 165,000 MT per annum

Products include grinding media , liners, diaphragms etc for cement, mining &utility industries, with focus on application and end to end solutions

Strong focus on metallurgy, process technology for product development andprocess improvement to facilitate total solutions to customers Basic know how through collaboration (1991 to 2000 ) with M/s Magotteaux, Belgium

Collaboration with Southwestern Corp, UK for process improvements (vertical mills)

Global marketing presence, through 100% owned subsidiaries / branches in USA,UK , ME , Australia and Philippines Supply contracts with global cement majors like Lafarge of France, Cemex of Mexico and

Holcim of Switzerland & commercial relationships with OEMs like F L Smidth of Denmark

Domestic customers include leading cement manufacturers, mining companies, major thermalpower plants and OEMs



1978 - 1985

Initial years

1985 - 1991

Develop

highchrome

applications

1991 - 2001

Foreign

JointVenture

2001onwards

Indepen-dent

globalfoot print

Milestones

2005

IPO

2008

100K Mtplantfully

commi-

ssioned

2009

$ 200million

revenuemark


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AIA Engineering A Total Solution Provider

Metallurgy Design

Application

M D

A

M D

A

MM DD

AA

Application : Working Conditions

Design of Part

Physical & Metallurgical Properties


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www.aiaengineering.com 1

Manufacturing Process

Charge

Melting

SandPreparation

Molding

Molds

C harge is heatedin Furnace

Liquid Metal (of desired composition) ispoured in the molds

Mold Knock off

Molten metal is allowed tosolidify in the molds after which

mold is knocked off

Ferro Chrome+

Scrap

Charge

Melting

SandPreparation

Molding

Molds

C harge is heatedin Furnace

Liquid Metal (of desired composition) ispoured in the molds

Mold Knock off

Molten metal is allowed tosolidify in the molds after which

mold is knocked off

Ferro Chrome+

Scrap

Shot

Blasting

First Inspection

Breaker

Drum

DimensionalInspection

Final Inspection

HeatTreatment

Fettling/Machining

HardnessRAMicro

Grinding MediaO ther C astings

Indiv idual balls are

separated from the bunchin the breaker drum

Grinding M edia and O ther Castingsare Heat Treated to achieve the

desired metallurgical properties

Shot

Blasting

First Inspection

Breaker

Drum

DimensionalInspection

Final Inspection

HeatTreatment

Fettling/Machining

HardnessRAMicro

Grinding MediaO ther C astings

Indiv idual balls are

separated from the bunchin the breaker drum

Grinding M edia and O ther Castingsare Heat Treated to achieve the

desired metallurgical properties


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Marketing

International marketing presenceunder Vega brand

Wholly owned subsidiaries and offices covering USA , UK, Middle East, Australia

Technical team in key offices servicing customer requirements

Established relationships with cement majors / technology suppliers

Holcim (Switzerland), Lafarge (France), Cemex (Mexico), FL Smidth

Now focusing on opportunities available in global mining & utility sectors

Domestic business spread across cement and utility/mining sectors

ACC Limited, Gujarat Ambuja Cement Ltd., Ultra-tech Ltd., Grasim Industries Ltd.,

etc- in cement segment

Kudremukh Iron Ore Company Ltd., Hy-grade Pellets, Hindustan Zinc, Bharat

Aluminium Company-in mining segment Major thermal power plants and OEMs in the utility segment


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Global Footprint in 75 countries

Countries where AIA/Vega products are sold


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Total Solutions Approach = Long Term Client Relationships
http://images.google.com/imgres?imgurl=http://www.domain-b.com/companies/companies_a/acc/logo.jpg&imgrefurl=http://www.domain-b.com/companies/companies_a/acc/20030702_shares.html&h=50&w=85&sz=3&tbnid=UvHopeXkwJAJ:&tbnh=42&tbnw=72&hl=en&start=10&prev=/images%3Fq%3DAssociated%2BCement%2BCompanies%2BLtd%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DNhttp://www.flsmidth.com/flsmidth/english/default.htmhttp://www.cemex.com/index.asphttp://www.lafarge.com/cgi-bin/lafcom/jsp/home.do?rubric=home&BV_SessionID=@@@@1660260066.1127976394@@@@&BV_EngineID=ccccaddfhekkmekcfngcfkmdhgfdggg.0http://www.holcim.com/CORP/EN/b/null/jsp/templates/home.html


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Organisation Structure

AIAE

Welcast SteelsLimited (WSL)

Vega,ME

Vega,UK

Vega,USA

Manufacturing subsidiaries Marketing subsidiaries

Backgro

und

Production

&

Sales

WSL is alisted entity.AIAE holds 72

% of its equity

100%subsidiary

Vega, MEowns 100% ofVega UK

Vega, UKowns 100% ofVega USA

ManufacturesGrinding

Media

Direct Sales toAsia (ex-

India), Africa(ex-RSA),

South America

Direct Sales toNorth America

and part ofCentral

America

Direct Sales toEuropean

Region

185,000 MT manufacturing capacity

Domestic & international sales operations

Vega,RSA

Vega,China

Vega, MEowns 100% ofVega UK

Vega, UKowns 100% ofVega USA

Direct Sales in

China Direct Sales in

South Africa


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AIA/Vega Global Presence

Offices being opened in 2009


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4. Growth Strategy


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Consolidated Financials

** Annualised

Rs.inMillions

PARTICULARS FY 07 FY08 FY09 FY 10FY-11(Q1)

Sales 5230 6912 10233 9497 2425

EBIDTA 1407 1955 2717 2611 599

EBIDTA / Sales (%) 27% 28% 27% 27% 25%

Interest 24 17 21 14 -

Depreciation 82 136 203 227 57

Tax 346 460 750 659 141

NP after minority interest 943 1333 1736 1707 398

PAT / Sales (%) 18% 19% 17% 18% 16%

Capital Employed 5184 6379 8324 9280 9677

Networth 4918 6100 7726 9021 9473

ROCE (%) (EBIDTA-DEP/CE) 26% 29% 30% 26% 22%

RONW(%) (PAT/NW) 19% 22% 22% 19% 17%

C lid d Fi i l ( I USD )


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Consolidated Financials ( In USD )

** Annualised

USD in

Millions

PARTICULARS FY 07 FY08 FY09 FY10 FY-11 (Q1)

Sales 120 173 201 211 52

EBIDTA 32 49 53 58 13

EBIDTA / Sales (%) 27% 28% 27% 27% 25%

Interest 1 0 0 0 0

Depreciation 2 3 4 5 1

Tax 8 11 15 15 3

NP after minority interest 22 33 34 38 9

PAT / Sales (%) 18% 19% 17% 18% 16%

Capital Employed 119 159 164 206 210

Networth 113 152 152 201 206

ROCE (%) 26% 29% 30% 26% 22%

RONW(%) 19% 22% 22% 19% 17%


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4. Growth Strategy

G th St t


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Growth Strategy

Expand focus on globalmining & utility segments

Capitalize further onpredominant position inCement in India & globalmarkets

Increased R&D focus tofurther strengthen totalsolutions capabilities

Focus on strategicrelationship / commercialpartnerships withinternational partners to

gain access to newermarkets

Exploring backwardintegration opportunities forsourcing of certain keyinputs and setting up

a power plant

Proposed Capacity & Plans


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Proposed Capacity & Plans

0

50,000

100,000

150,000

200,000

250,000

Existing Jun-07 Q408 Mar-09

115,000

Capacity in tons

Implementation

Further expansion ofmanufacturing

capacity (by de-

bottling to 200,000)

65,000115,000

165,000

FY 2010-2011

200,000

Dec - 2005 June - 2007 April - 2008


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Thank You

aiae ppt october 2010

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