aiae profile sept 2009 ir

8/9/2019 AIAE Profile Sept 2009 IR

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www.aiaengineering.com

Sept 2009

Company Presentation


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1.1. Industry OpportunityIndustry Opportunity

2.2. Business + ManagementBusiness + Management

3.3.

Financial SnapshotFinancial Snapshot

4.4. Growth StrategyGrowth 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 can

come to a halt

Leadsto

Leadsto

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 estimatedat 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, drivinginnovation 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 at

2.4 mn MT

Cement Sector Demand at

300,000 MT

Estimated





3.3. Financial SnapshotFinancial Snapshot




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 andHolcim 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

application

s

1991 - 2001

Foreign

JointVenture

2001

onwards

Indepen-

dent

global footprint

Milestones

2005

IPO

2008

100K Mtplantfully

commi-

ssioned

2009

$ 200million

revenuemark



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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Marketing

International marketing presence under 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 Steels

Limited (WSL)

Vega,

ME

Vega,

UK

Vega,

USA

Manufacturing subsidiaries Marketing subsidiaries

Backgro

un

d

Production

&

Sales

WSL is a

listed entity.

AIAE holds 72

% of its equity

100%

subsidiary

Vega, ME

owns 100% of

Vega UK

Vega, UK

owns 100% of

Vega USA

ManufacturesGrinding

Media Sells directly

to AIAE and to

its customers

Direct Sales toMiddle East,

South EastAsia and

South America

Direct Sales to

North America

and part ofCentral

America

Direct Sales to

European

Region,Russia, Africa,

Turkey and

other erstwhile

CIS Countries

165,000 MT manufacturing capacity

Domestic & international sales operations


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AIA/Vega Global Presence

Offices being opened in 2009


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Consolidated Financials ( In INR )

** Annualised

Rs.in Millions

PARTICULARS FY 05 FY 06 FY 07 FY08 FY09

Sales 2937 4070 5230 6912 10233

EBIDTA 469 919 1407 1955 2717

EBIDTA / Sales (%) 16% 23% 27% 28% 27%

Interest 28 53 24 17 21

Depreciation 33 71 82 136 203

Tax 136 252 346 460 750

NP after minority interest 269 524 943 1333 1736

PAT / Sales (%) 9% 13% 18% 19% 17%

Capital Employed 1483 3316 5184 6379 8324

Networth 875 2741 4918 6100 7726

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

RONW(%) (PAT/NW) 25% 19% 19% 22% 22%


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Consolidated Financials ( In USD )

** Annualised

USD inMillions

PARTICULARS FY 05 FY 06 FY 07 FY08 FY09

Sales 67 91 120 173 201

EBIDTA 11 21 32 49 53

EBIDTA / Sales (%) 16% 23% 27% 28% 27%

Interest 1 1 1 0 0

Depreciation 1 2 2 3 4

Tax 3 6 8 11 15

NP after minority interest 6 12 22 33 34

PAT / Sales (%) 9% 13% 18% 19% 17%

Capital Employed 34 74 119 159 164

Networth 20 62 113 152 152

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

RONW(%) 25% 19% 19% 22% 22%


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G th St t


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Growth Strategy

Expand focus on global

mining & utility segments

Capitalize further onpredominant position in

Cement in India & global

markets

Increased R&D focus tofurther strengthen total

solutions capabilities

Focus on strategic

relationship / commercial

partnerships with

international partners to

gain access to newermarkets

Exploring backward

integration opportunities

for sourcing of certain keyinputs and setting up

a power plant

P d C it & Pl


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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 of

manufacturing

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 profile sept 2009 ir

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