meghmani organics limited · 2016. 11. 28. · four manufacturing plants with total floor area of...
TRANSCRIPT
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IPO PresentationIPO Presentation
July 30, 2004July 30, 2004
Meghmani Organics Limited
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Page 2
Section 1 Overview 3
Section 2 Robust business model 11
Section 3 Low cost, highly skilled manufacturing base 17
Section 4 Integrated operations 20
Section 5 Clear growth strategies 26
Contents
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Section 1 : Overview
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Page 4
Meghmani Organics Limited
Established in 1986
Four manufacturing plants with total floor area of 180,000 sqm
Core competence is in organic chemistry
Well positioned to capitalise on the emerging global outsourcing trend
Chemistry of Success
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Page 5
Business Profile
Pigments Pesticides
Products
• Blue and Green
Applications
• Printing inks, plastics,paints, textiles, leather, paper and rubber
• Wider than dyes
Products
• Pyrethroid and Organophosphorous
Applications
• Crop protection• Non-crop applications
MeghafastMegastar
Megacyper
30th September,04 revenue contribution
42.0% 54.6%
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Page 6
Pigment ManufacturingPHTHALOCYANINE GREEN AND BLUE PIGMENTS
Upstream product
Sold to other pigment manufacturers
End products
Sold to Industrial application users like ink, paint, plastic etc.
manufacturers
PIGMENT GREEN PIGMENT BLUE
CPC BLUE
CPC BLUE
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Page 7
One of the leading players in Pigments
Our Pigment Blue plants have designed capacity is 10,800 tonnesper annum at Panoli plant
More than 80% of production is exported worldwide
More than 100 global customers
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Page 8
Pesticides ManufacturingEncompasses the entire value chain
Pesticide Intermediates
Technical Grade Pesticides
Pesticide Formulations
h Vertically integrated manufacturing processes- more than 50% of production exported worldwide
h We are at the beginning of the outsourcing trend for pesticides by MNCs
h Vertically integrated manufacturing processes- more than 50% of production exported worldwide
h We are at the beginning of the outsourcing trend for pesticides by MNCs
Sold to technical grade pesticides manufacturers
Sold to pesticides formulators
Small Packing
Bulk Packing
Sold to institutional customers
Sold to retailers, dealers or directly to farmers
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Page 9
High Barriers for New Entrants
Strict government regulation
Prohibitive registration cost for Pesticides
High costs for customers to switch to alternative suppliers
Pigments have specific characteristics tailored to individual needs
Proprietary brands which are well recognised in our markets –India, Europe, the USA and Latin America
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Section 2: Robust business model
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Page 11
Healthy Revenue Profile
Revenue (6 months ended on Sept 30, 2004)
• Consistent revenue growth
• Balanced product mix
42%
3%
55%
Pigments Pesticides Others
31.7 m38.8 m
3.3 m
51.7
64.8
74.282.2
58.7
5.0
15.0
25.0
35.0
45.0
55.0
65.0
75.0
85.0
95.0
FY2001 FY2002 FY2003 FY2004 6 mths ended Sept30, 2004
S$M
Financial year ending 31 March
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Page 12
Attractive profit margins
Financial year ended March 31
Consistently high profit margins
Gross Profit Margin by Business Segments (FY03)
26%29% 30% 29%
24%
10%13%11%
14%10%
0%5%
10%15%20%25%30%35%
FY2001 FY2002 FY2003 FY2004 6 monthsended Sept 30,
2004GP Margin PAT Margin
Attractive profit margins
Financial year ended March 31
Consistently high profit margins
Gross Profit Margin by Business Segments (FY03)
26.40%
22.10%
3.80%
0%
10%
20%
30%
Pigments Pesticides Others
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Page 13
Strong domestic and export growth
Financial year ended 31 March
2937.9
68.4 69.1 72.6 7162.1
27.430.931.6
0
10
20
30
40
50
60
70
FY2001 FY2002 FY2003 FY2004 6 monthsended onSept 30
2004Local Export
Local and Export Sales growing in tandem
• More than 80% of pigments products are exported in FY2004
• More than 50% of pesticides products are exported in FY2004(S
ales
in S
$ m
illion
s)
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Section 3: Low cost, highly skilled manufacturing base
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Page 15
Strategic LocationMeghmani is located in State of Gujarat – natural advantage for pigment and pesticide manufacturers
Pigments
Pesticides
Vatva Plant
Panoli Plant
Chharodi Plant
Ankleshwar Plant
located in one of India’s chemical belts
large pool of scientists and engineers at low cost
close proximity to sources of raw materials at low cost
proximity to key transportation infrastructure - key ports, railway and road networks
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Page 16
Well Positioned to Capitalise on Outsourcing Trend and Opportunities
A shift in global trend :
- Chemical production moving from traditional bases in US and Europe to India and China
Our advantage- Already servicing more than 100 global customers
- Large pool of in-house scientific and engineering talent
- ISO 9001 – 2000 certified production facilities
- Environmentally friendly production plants
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Section 4: Integrated Operations
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Page 18
Integrated Manufacturing Capabilities
We have fully integrated production processes
Upstream production of some of the key raw materials and intermediates
Multifunctional production facilities
-ability to change product mix to suit market conditions
Allows effective management of costs, quality and regular supply of our products
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Page 19
Our Utilisation Rates
Vatva Plant
Panoli Plant
Chharodi Plant
Ankleshwar*Plant
FY2001
FY2002
FY2003
FY2004
Designed Capacity
Designed Capacity
Designed Capacity
Designed Capacity
Utilisation
%
Utilisation
%
Utilisation
%
Utilisation
%
975
975
975
1,200
112
100
111
78
4,400
4,700
9,400
10,800
65.6
94.9
68.0
81.1
2,410
2,410
3,450
4,650
94.5
110.2
86.3
74.3
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-
-
800
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-
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27.6
*Newly acquired in August 2003Note: Designed Capacities in MT
Pigments Pesticides
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Page 20
Strong R&D capabilities
Team of skilled technical engineers and science graduates
- Chemical engineering degree and PhD holders
- Develop production processes in-house
Well-equipped laboratories
Developed a wide range of products for use in a multitude of industries
Provides the leverage to respond quickly and capitalise on shifts in market trends
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Page 21
Experienced and qualified management and technical team
Founders Have over 50 years of relevant industry experience
Strong senior management team
Anand Patel
Exec Dir
Natu Patel
MD
Jayanti Patel
Chairman
Ashish Soparkar
MD
Ramesh Patel
Exec Dir
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Page 22
Capabilities are well recognisedReceived multiple awards for excellence in export sales
Award for export performance from GDMA, Ahmedabad (1997-1998, 2000-2001, 2003-2004)
Award for excellent performance from CHEMEXCIL, Bombay(2000-2001)
Six Sigma award from General Electric(2000-2001)
National export award from the President, Government of India
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Section 5: Clear growth strategies
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Page 24
Increase Product Range
Fundamental shift towards high performance
pigments
Fundamental shift towards high performance
pigments
• Introduce new eco-friendly solvent – Hysol-P based CPC blue
• Manufacture new generation, metal free and eco-friendly pigments – PB 16 and PB 79
• Weather resistant automobile paints – PB 60
Global patent protection for generic
pesticides expiring
Global patent protection for generic
pesticides expiring
• In the process of developing off-patent pesticides :
-Indoxacarb & Acetamiprid (increases cotton productivity)-Bifenthrin(new eco-friendly product for public health)-Triazophos(new product for pulses, paddy, vegetables)
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Page 25
Expand Global Customer Base
Global expansion of key user markets such as printing inks
and paints
Increasing contract manufacturing
Obtain required registration for our pesticide products in
overseas markets
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Page 26
Build on Global Distribution Network
Set up subsidiary in Belgium
Additional warehouses in North and South America
Extensive global distribution channels presently :
> 1000 stockists, agents, distributors and dealers covering India market
20 overseas distributors worldwide
Warehouses in Belgium and Uruguay
Future Strategy
Continue to expand distribution channels in India and overseas
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Thank YouThank You