Shaily Engineering Plastics Limited has informed the Exchange about Q4FY22 Investor Presentation
SEPL/SE/May/22-23 May 30, 2022
The General Manager, Corporate Relations/Listing Department BSE Limited Floor 25, P.J. Towers, Dalal Street, Mumbai – 400 001 Scrip Code : 501423
The Manager,
Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code : SHAILY
Sub : Q4FY22 - Result Presentation
Ref : Regulation 30 of the SEBI Listing Regulations, 2015
Dear Sir,
In continuation to our letter dated May 29, 2022 regarding intimation of Earnings Call of the Company scheduled on Tuesday, 31st May, 2022, to discuss the Operational & Financial performance of the Company for the quarter & year ended on 31st March, 2022, Kindly find enclosed herewith Q4FY22 Investor Presentation of the Company.
A copy of the same is also available on our website www.shaily.com.
Kindly take the same on record.
Thanking You.
Yours truly, For Shaily Engineering Plastics Limited
Preeti Sheth Asst. Company Secretary ICSI M.No. A36624
Encl : a/a
Shaily Engineering Plastics Ltd
Investors Presentation May 2022
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shaily Engineering Plastics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
2
Key Performance Highlights
Q4 FY22 Business Update
Equity shares of the company listed on the NSE
IP acquired for Pen Injector
Contract for pen injector finalised with leading Indian Pharma company
4
Continued Growth Momentum across FY22
Revenues
+21%
+2%
144.9
148.3
+3%
152.6
120.1
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Highest ever revenues recorded in FY22 This has been on the back of improved traction seen across segments and ramp up in projects. The visibility we have across various businesses gives immense confidence that we will be able to scale up further and grow
(Rs. Cr.)
5
Key Financial Highlights – Q4 FY22
Revenues
Gross Profit Margin
EBITDA
Highest ever quarterly revenues
Margins in Q4FY22 were lower due to increase in raw material prices. The costs would be passed on in the coming two quarters.
109.8
148.3
152.6
42.4%
37.6%
34.0%
22.1
24.3
21.6
Q4FY21
Q3FY22
Q4FY22
Q4FY21
Q3FY22
Q4FY22
Q4FY21
Q3FY22
Q4FY22
EBITDA Margins
Profit After Tax
Cash PAT
20.1%
16.4%
14.1%
9.7
9.3
7.4
15.3
16.5
14.3
Q4FY21
Q3FY22
Q4FY22
Q4FY21
Q3FY22
Q4FY22
Q4FY21
Q3FY22
Q4FY22
(Rs. Cr.)
On Standalone basis
#Cash PAT includes PAT & Depreciation
6
Key Financial Highlights – FY22
Revenues
Gross Profit Margin
EBITDA
Highest ever revenues in FY22
+57%
565.9
360.6
Margins in FY22, especially Q4FY22 were lower due to increase in raw material prices. The costs would be passed on in the coming two quarters.
+45%
40.3%
36.9%
89.8
62.1
FY21
FY22
FY21
FY22
FY21
FY22
EBITDA Margins
Profit After Tax
Cash PAT
17.2%
15.9%
+60%
35.2
22.0
+48%
61.6
41.5
FY21
FY22
FY21
FY22
FY21
FY22
(Rs. Cr.)
On Standalone basis
#Cash PAT includes PAT & Depreciation
7
Utilization & Volume
n o i t a z i l i t U e n h c a M
i
)
%
(
l
s t n a P s s o r c A
s r e m y l o P f o e m u o V
l
) T M
( d e s s e c o r P
56.0%
61.3%
53.3%
58.0%*
59.7%
Q4FY21
Q3FY22
Q4FY22
FY21
FY22
* Owing to additional capacity in place at Rania & Halol, utilization rate had come down.
5,321
5,562
4,356
19,474
14,602
Q4FY21
Q3FY22
Q4FY22
FY21
FY22
8
Operational Trends
n o i t a z i l i t U e n h c a M
i
)
%
(
l
s t n a P s s o r c A
66.8%
74.0%
68.5%
63.8%
58.0%*
59.7%
FY17
FY18
FY19
FY20
FY21
FY22
s r e m y l o P f o e m u o V
l
) T M
( d e s s e c o r P
10,054
13,039
13,258
13,293
14,602
19,474
FY17
FY18
FY19
FY20
FY21
FY22
* Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it will ramp up in the coming quarters
9
Revenue Analysis - Domestic Vs. Exports
FY21
FY22
26.4%
23.9%
73.6%
76.1%
Export
Domestic
10
Standalone Profit & Loss Statement
Particulars (Rs. Cr.)
Revenue
Raw Material
Employee Expenses
Other Expenses*
Other Income
EBITDA
EBITDA Margin
Depreciation
Finance Cost
PBT
PBT Margin
Tax
PAT
PAT Margin
Cash PAT^
Cash PAT Margin
Q4 FY22
152.6
100.6
12.0
21.3
2.8
21.6
14.1%**
6.9
4.7
9.9
6.5%
2.5
7.4
4.8%
14.3
9.4%
Q4 FY21
109.8
YoY %
39%
63.2
10.1
16.8
2.4
22.1
20.1%
5.6
3.3
13.2
12.0%
3.5
9.7
8.8%
15.3
14.0%
-2%
-25%
-24%
-7%
FY22
565.9
356.9
43.2
84.7
8.8
89.8
15.9%
26.5
16.9
46.4
8.2%
11.3
35.1
6.2%
61.6
FY21
360.6
215.3
34.2
51.6
2.6
62.1
17.2%
19.5
12.7
29.9
8.3%
7.9
22.0
6.1%
41.5
10.9%
11.5%
YoY %
57%
45%
55%
60%
48%
** Margins in Q4FY22 were under pressure due to increase in raw material prices. The costs would be passed on in the coming two quarters.
* Other Expenses include Power & Fuel costs
^ Cash PAT = PAT + Depreciation
11
Standalone Balance Sheet
Particulars in (Rs. Cr.)
Assets
Non-current Assets
Fixed Assets
Property Plant & Equipment
Capital WIP
Intangible Assets
Financial Assets
i. Investments
Long Term Loans & Advances
Other Non-current Assets
Income Tax assets (net)
Current Assets
Inventories
Financial Assets
Trade Receivables
Cash & cash equivalents
Loans & Advances
Other Current Assets
Total Assets
Mar-22
Mar-21
381.8
323.7
16.1
17.4
9.1
3.4
10.0
2.0
293.9
111.4
99.9
31.4
17.0
34.3
675.6
290.2
220.9
23.1
13.3
0.0
5.9
23.1
4.0
176.8
66.9
69.5
1.0
7.1
32.4
467.0
Particulars (Rs. Cr.) Equity & Liabilities Equity Share Capital Other Equity Non-Current Liabilities Financial Liabilities i. Borrowings ii. Other financial liabilities Deferred Tax Liabilities (Net) Other Non-Current Liabilities Provisions Current Liabilities Financial Liabilities Borrowings Trade Payables Other Financial Labilities Other Current Liabilities Provisions Current Tax Liabilities Total Equity & Liabilities
Mar-22
Mar-21
367.0 9.2 357.8 120.6
101.6 2.3 13.2 1.7 1.8 188.0
72.2 84.0 7.8 23.1 0.9 0.0 675.6
181.9 8.3 173.5 142.7
128.4 2.1 10.3 0.3 1.6 142.5
71.2 46.6 13.9 10.0 0.9 0.0 467.0
12
Standalone Cash Flow Statement
Cash Flow Statement (Rs. Crore)
Net Profit Before Tax
Adjustments for: Non - Cash Items / Other Investment or Financial Items
Operating profit before working capital changes
Changes in working capital
Cash generated from Operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Decrease in Cash and Cash equivalents
Add: Cash & Cash equivalents at the beginning of the period
Cash & Cash equivalents at the end of the period
FY22
46.4
41.6
88.0
-25.3
62.7
-6.4
56.3
-133.9
107.7
30.1
1.2
31.4
FY21
29.9
31.2
61.0
32.6
28.5
-6.0
22.5
-81.9
53.4
-6.1
7.0
1.0
13
Delivering PROFITABLE GROWTH
Revenues
EBITDA
+18%
565.9
+15%
89.8
318.2
338.3
336.0
360.6
245.9
55.4
54.4
59.1
62.1
44.0
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
Profit After Tax
Cash PAT
+17%
35.1
+16%
61.6
24.0
19.3
23.6
22.0
16.0
38.0
34.2
29.0
41.5
41.5
Revenue growth has been aided by growth in business across verticals especially the Healthcare & Toy segment; we have added new SKUs in Home Furnishing segment and Devices
Consistent profit aiding investment to grow business
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
(Rs. Cr.)
On Standalone basis
Note: Financials are excluding Excise Duty
14
With sustainable MARGIN Profile and disciplined use of capital…
Margin Profile
17.9%
17.4%
17.6%
17.2%
16.1%
10.8%
9.4%
8.9%
9.1%
8.3%
6.5%
7.5%
7.0%
6.1%
5.7%
Better Product mix and economies of scale on
account of raw materials have led to improvement
in margin profile from FY16 to FY22
15.9%
FY19 margin was profile impacted on account of
labor shortage, power disruptions and change in
ordering policy from a key client
8.2%
6.2%
Witnessed improvement in margin from FY20
onwards on back of higher contribution from
Healthcare segment and plant utilization
FY17
FY18
FY19
FY20
FY21
FY22
EBITDA%
PBT%
PAT%
Margins in FY22, especially in Q4FY22 were lower
due to increase in raw material prices. The costs
would be passed on in the coming two quarters.
On Standalone basis
15
DISCIPLINED use of Capital
RoCE
RoE
19.6%
17.7%
17.8%
16.9%
15.7%
16.3%
19.2%
15.0%
15.8%
14.2%
12.9%
12.8%
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
On Standalone basis
16
Growth Along With Low Leverage
Total Debt : Equity (x)
Long Term Debt : Equity (x)
Total Debt / EBITDA (x)
1.2
0.9
0.9
0.9
0.6
0.7
0.5
0.5
0.2
0.2
0.3
0.3
3.6
2.4
2.2
1.9
1.9
1.6
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
✓ The growth in Business has been achieved with disciplined use of capital
✓ The internal accruals also been utilized towards scheduled repayments of Long-term loans, which have positively impacted the credit
rating therefore the borrowing costs
On Standalone basis
17
Strong Focus on Improving Our Key Metrics
Fixed Asset Turnover (x)
3.0
2.5
2.3
2.2
OCF to EBITDA
141.8%
126.9%
1.6
1.7
48.1%
24.0%
69.8%
45.8%
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
✓ The Fixed Asset Turnover has been inching up despite continuous capex (barring FY19) on back of improving utilization levels to cater
to the new business wins across multiple segments of Home Furnishing, FMCG, Pharma
✓ Cash flow generation has been healthy resulting in capex spends from internal accruals
On Standalone basis
18
Overview
About the Company
Enriching Lives Through Plastics
Shaily was established in 1987 with just two moulding machines. Today, its facilities have grown significantly to include more than 175 machines, and Shaily plastics can be found across the globe in products as diverse as medical devices, home furnishing, Toys, Personal Care and automotive components in plastic and we have recently forayed into steel furniture.
Founded in 1987
Revenue Rs. 566 Crores FY 2021-22
7 Facilities in Gujarat 6 for Plastic 1 for Steel Furniture
Long-standing global relationships with marquee clients
180+ Injection moulding machines
Over 1,500 employees across 7 plants
De-risked Business Model
20
Vision, Mission & Our Values
Vision & Mission
To provide end-to-end solutions in plastics
Deliver superior quality to our customers; higher profitability and value to our shareholders; and sustainability for future generations
✓
✓
Our Values
Deliver customer delight through excellence in performance
Never bypass systems and processes
Always follow through on targets and commitments
Build a positive team and family spirit – One Shaily
Treat everyone with courtesy and respect
Doing it right the first time
Be passionate, determined, proactive and ready to take on challenges
21
Our Core Capabilities
NPD
Manufacturing
Quality
Sustainability
• Tool design • Mold flow • • Automation •
Process design
Polymer Selection
Precision molding
• • Decoration &
Printing • Assembly • Automation
• Regulatory compliance • Robust QA/QC processes • • Continuous improvement
Testing protocol
• Social compliance • Renewable energy • Recycled /
biodegradable plastics
22
Our Journey from FY15 to FY22 has created a strong base
Consumer Business
Healthcare
Business
Financial Health
Accelerated existing Consumer Business by adding New Customers & New Segments
Increased utilization levels of Healthcare business
De-risked Business Model
Created Financial Flexibility and Strong Balance Sheet to address large Business opportunities
We have developed a Strong base for growth: SHAILY IS FUTURE READY
23
Our Strong base of last few years makes us Future Ready…
Accelerated existing business with Homes Furnishing major
1
• Strengthened our relationship with Swedish Home Furnishings major • Ventured in Carbon Steel Business for the Homes Furnishing Major
Deepening foray in IP related products and Healthcare
De-risked Business Model
3
• Focused on new business segments and customers to de-risk the
business model
• Ventured in Toys category with the addition of Toys major Spin Master • Investment made in Carbon Steel Business to diversify concentration beyond Plastics
• By entering into Carbon Steel business, cemented relationship with
existing customers and have got into Multi Material Products (combination of Plastic & Steel)
• Healthcare is now the 2nd largest revenue contributing segment • Added 12 Drug Delivery devices in commercial production • Consolidation of Healthcare units to achieve faster breakeven and
higher efficiencies
• Built high scale to be able to achieve 2-3x revenue growth in 3-5 years
Created Financial Flexibility and Strong Balance Sheet to address large Business opportunities
• Funded capex of Rs. 150cr to set up Healthcare business, expansion of new SKUs for Homes Furnishing major and carbon steel business from internal cash flows and Debt
• Despite investment in capex Debt/Equity at comfortable levels; below 1x • A Strong Balance sheet is FUTURE READY to take advantage of ‘MAKE IN
INDIA’
2
4
24
Business Segments
Consumer
Personal Care
Healthcare
Automotive & Engineering
Steel Furniture
Home Furnishings Business
Toys Business
High Volume Molding, Decoration & Assembly
Drug Delivery Devices
Automotive Components
Pharma Packaging
Engineering Plastics
Carbon Steel Furniture
25
Quality Certifications
IATF 16949-2016
ISO 9001 : 2015
ISO 13485 : 2016
ISO 15378 : 2015
MDSAP
26
Certifications
Security Certifications
Social Compliances Certifications
Other Certifications
AEO T2 Certificate
Intertek
RD Recognition Letter
Star Export House
SA-8000 2014
Other Social Compliances Certifications
I-WAY
GMP
27
Enriching Lives … Through Sustainable Performance
The PLEX Council Award Top Exporter Of Engineering Components For Eleven Consecutive Years: 2005 to 2019
Top Exporter Award (1St Position) For Exports Out Of Rct, Vadodara By Container Corporation Of India Ltd At Concor Awards, 2017
Award for BPC
Piramal All India Kaizen Competition 2017-18 For Automation Of Kaizen
GOLD Winner For Outstanding Export Of Finished Plastic Goods By Plastindia Foundation
28
Awards from Customers
Top Exporter of Engineering Components.
Award won consistently from 2005 – 2019
Awarded for design of the Sanofi AllStar Pen
Award for two years of supplying Shellpak with 100% product quality
29
Consumer Segment Home Furnishings Business Toys Business
Our capabilities in Consumer Segment
Our Forte in Consumer Segment
Global Quality
End to End Solutions
High Consistency in production standards and with global quality norms
Product development capabilities from concept to final product Expertise in decoration & post assembly facility
Large Volume Manufacturing Complex Plastic engineering capabilities with deep understanding of raw materials
Environment Friendly
Timely Execution
Highly compliant with global norms on social and environmental norms
On time delivery by managing an efficient supply chain across all stages of production and final shipment to customers across the globe
31
Home Furnishings Business
Proven execution with our major home furnishing client
Home Furnishings Major is our largest customer
Long Standing Relationship
Associated with the Home Furnishings major as a plastics supplier since 2004
Supplier of Choice
Over the years have Evolved as a Trusted Supplier of plastic products
Scale Up
Scaled up from 18 SKU’s in FY17 to supplying ~48 SKU’s currently
Growing Business
Started with a value of Rs. 1cr and currently have orders worth more than ~Rs. 200crs
Dedicated Facility
Global Suppliers
Set up a dedicated EOU facility to serve the requirements of the Home Furnishings Major with more than 46 machines
Supplies across the Globe to different segments: Kitchen, Children’s, Cooking & Eating, Organizing & Storage
32
Toys Business
Toys Segment
About Spin Master Added Spin Master as our 1st client in Toys Business. Spin Master is a leading global, diversified, multi-platform and highly innovative children's entertainment
company and is regarded amongst the top toy
companies in the world
Business Potential The Toys segment possesses huge growth opportunities
Order Flow ❑ Shaily received first order from Spin Master during
Q1FY20
❑ Initial shipments were made in Q3FY20
❑ We expect to further ramp up this business in FY23
Quality Shaily manufactured Children's Products comply with the highest international standards
Scope of growth in Toy Industry
The Global Toys market is expected to gain strong momentum in the coming decade
Trend The top toy companies are focusing on developing new products, mergers and acquisitions, as well as partnering with local or regional players, to optimise their offerings.
Opportunity for Shaily
❑ Increasing children’s programs and TV channels
are expected to drive demand for toys
❑ Baby
toys
becoming
smarter
designed
specifically for learning purposes
❑ Global toy companies are anticipated to diversify outsourcing to India, seen as the alternative manufacturing hub ❑ Products quality
comply with the highest international standards, making us supplier of choice across the globe
33
Personal Care
Our Personal Care Clients & Services
Servicing global FMCG majors such as Unilever and P&G since early 90s
Products Manufactured
• Primary Packaging for
cosmetics
• Primary Packaging for Vicks • Razor handles for Gillette • Trigger Sprays & Pumps
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
35
Healthcare Segment Pharma Devices Pharma Packaging
Our capabilities in Healthcare Segment
Our Forte in Healthcare Segment
Drug Delivery Devices
Primary Packaging
-
Contract Manufacturing IP Related Product Development
-
Dedicated Facility In-House Research & Development Division
Quality & Compliance
37
Drug Delivery Devices
One of the leading Injection Molding Companies in Medical Devices field Globally
Our Value Proposition
Manufacturing of complex precision components and assemblies requiring stringent quality and tight tolerances
Comprehensive Design Review
We have the expertise in assisting clients with Compliance & Regulatory filings
Our vision is to design, develop and manufacture high quality & cost effective healthcare devices in order to customers’ increase competitiveness
our
Ventured into devices segment in early 2000 and today are one of the few suppliers globally. Manufacture products like DPI’s, Pen Injectors, and Primary Packaging
Collaborative Tool Design & Manufacturing
Innovative Assembly Solutions
Efficient Supply Chain
38
Drug Delivery Devices
Shaily Tristan Autoinjector
2 step Autoinjector with customization options
ShailyPen Harmony
ShailyPen Protean
ShailyPen Axiom
ShailyPen Maxim
0-80 IU Insulin Reusable / Disposable, Single dose and Multidose Alternate Therapies ( Semaglutide, Liraglutide )
0-60 IU Insulin Reusable / Disposable, Settable for alternate therapies – 3 dose, 2 dose and single dose GLP-1- Liraglutide, Abaloparatide )
for hGh, FSH, PTH and GLP-1 Therapies
0-80 IU Insulin Reusable / Disposable, Single dose and Multidose Alternate Therapies
Shaily offers a comprehensive range of technologies, solutions and services for patient-centric and cost-effective self-medication injection systems
39
Drug Delivery Devices – New Order
First Non-European INSULIN PENS
❑ Equipped world’s first
Insulin Pen that
is made up of 100% plastic
components
❑ Pens were designed to meet UL & FDA approvals
❑ Pens are ISO 11608 1,2&3 certified
❑ Shaily is one of the very few manufacturers of Insulin pens in the World
today
❑ Shaily in association with IDC designed & engineered an insulin pen for
Wockhardt
❑ Post Wockhardt success, Shaily started manufacturing Insulin pens for Sanofi
❑ These are marketed by Sanofi as “AllStar pens”
40
Primary Packaging
Our Capabilities
Our Competitive Edge
Superior Protection for Active Pharmaceutical Ingredients
Value Addition through Expertise in Materials, Manufacturing, Quality and Regulatory Compliance
Solid Dosage Forms
Liquid Dosage Forms
Specialty Packaging
High end vision system for bottles and closures
Safer Design with Shaily CRCs
Type III Drug Master Files
US Pharmacopeia Standards
41
Our Healthcare Clients
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
42
Healthcare segment – Way Forward
Industry Growth
Increasing demand for pharmaceutical devices & packaging products due to rising geriatric population, growing chronic diseases, increasing number of diabetic patients, etc.
Growth Drivers
Expansion of the generic market, technological advancement & strict government regulations for conventional packaging are major factors that drive market growth
Building Strong Relationship
Our key partners for device development in the UK & Taiwan continue to build upon their capabilities to ensure that they can aid Shaily in the successful & sustainable development of next generation platforms.
Developing our R&D
Our ability to develop IP & our own pen injector platforms are finally paying off We have a total of 5 pen injector platforms for various molecules today and are working towards developing an auto injector
End-Market
Capabilities include supplies to ophthalmic brands, skin care brands & CRC and specialized packaging applications
43
Automotive & Engineering
Automotive & Engineering Business
At Shaily our efforts in the automotive segment is geared towards light weighting the vehicle
Automotive Applications in the turbo chargers of high-end luxury cars
Engineering Plastics Manufacturing high value-added products from ultra- high-performance engineering plastics
Unique Molding Process Proprietary molding process to manufacture components from Torlon and PEEK
Tooling Years of expertise in designing and developing moulds, with a focus on mould flow analysis and design for manufacture
Assembly Solutions Complete molding and assembly solutions with manual, semi-automated and fully automated processes to reduce cost and promote quality
Metal to Plastic Conversion Outstanding solutions to replace metal with high strength plastic, resulting in greater productivity and cost savings
45
Our Automotive & Engineering Plastics Clients
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
46
Steel Furniture Carbon Steel Furniture
Building New Capabilities and Diversity in Orderbook
New Carbon Steel Facility at Halol
Newly Added Business Segment
❑ Received confirmation for manufacture & supply of Carbon Steel
products from Swedish Home Furnishings Major in Q1FY19
❑ Signifies immense faith placed by the customer in our capabilities
and execution skills
Facility Commissioned at Halol, Gujarat
❑ Investment of Rs. 55 Crs.
❑ Phase 1 plant is built in 70,000 sq ft area (total land of
the facility is 8L sq ft
❑ 600 tons of RM steel processed / annum
❑ Started commercial production in Q3FY21
Order Details
❑ Order for 6 new products which has scope to grow in future
❑ Estimated sales value of the order is over Rs. 100 Crs.
Glimpse of our Carbon Steel Products
48
Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
State-of-the-Art Manufacturing Facilities
7 Facilities with over 180 molding machines ranging from 35 tons to 1,000 tons
Rania
Halol
GUJARAT
Rania
❖ Export Oriented Unit ❖ Pharma (Dedicated ISO Class 8 clean
room manufacturing facility)
❖ Others
Halol (Existing)
❖ Automotive & Engineering
Halol (New)
❖ Carbon Steel ❖ New Plastic Facility under construction
Disclaimer: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
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We are focused on Sustainable Development
We believe in Business that have a operations positive impact on the Planet and People
Our Goal is to constantly improve our Processes in a way that results in reduction in power, water and other natural essential resources
Sigma
forms part of resulting
Lean significant strategy improvement Business landscape
a our in across
SOCIALLY AND ENVIRONMENT RESPONSIBILITY IS OUR DNA
We have also been successful in being able to convert products manufactured from virgin materials to both recycled plastics as well as bioplastics
In 2017, we were able to use more than 50% of our energy from Renewable requirement sources
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Board of Directors
Executive Chairman
Mr. Mahendra Sanghvi
Whole Time Director
Ms. Tilottama Sanghvi
Managing Director
Mr. Amit Sanghvi
Executive Director
Mr. Laxman Sanghvi
Independent Director
Mr. Milin Mehta
Independent Director
Dr. Shailesh Ayyangar
Independent Director
Mr. Ranjit Singh
Independent Director
Mr. Samaresh Parida
Independent Director
Mrs. Sangeeta Singh
New Independent Directors inducted in the Board of Shaily Engineering Plastics Limited
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New Directors Inducted
Independent Director
Mr. Samaresh Parida
Independent Director
Mrs. Sangeeta Singh
✓ Mr. Samaresh Parida is a professional with over three and a half decades of experience in leadership roles in strategy, operations, finance, M&A, business turnaround in diverse sectors and diverse geographies – India, USA, Latin America, Russia
✓ He currently runs a management consulting firm with clients in multiple sectors and
in multiple countries
✓ He is an Independent Director on the Board of IDBI Bank
✓ He has been a senior advisor to NABARD on a national level initiative in micro
finance sector with a footprint of over 100 million members
✓ He was Executive Director in Vodafone looking after strategy and led all growth
initiatives
✓ He was also CFO and Finance Director for PepsiCo Inc, New York and led their global
strategic initiatives across all geographies
✓ He holds a PGDM from IIM -Ahmedabad, with additional qualifications as a
Chartered Accountant and a Cost Accountant
✓ Mrs. Sangeeta Singh has work experience of over 35 years primarily in Human Resources but also encompassing employer branding, corporate communications and operations
✓ She holds a Master’s Degree in Behavioral Psychology from Mumbai University and a certification in Strategic Human Resource Management from Harvard Business School, Boston
✓ She has also been associated with institutions working towards building women leadership and a champion of encouraging women to leadership positions in corporate India. She was also the India head of the KPMG Network of Women India chapter
✓ She currently holds Board positions with corporate and social organizations and currently serving as an Independent Director with: Accelya Kale Solutions Ltd; Alkem Laboratories Limited; S H Kelkar Limited; Laxmi Organic Industries Ltd; Keva Fragrances Pvt Limited; Crystal Crop Protection Ltd; and a Director on the Advisory Board for two not-for-profit organizations.
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Strong Credit Rating
UPGRADED Bank Facilities
to CARE A- and CARE A2+
with Stable Outlook
Long and established track record in the plastic injection molding business along with experienced Promoters
Growth in Total operating income on the back of increased volumes & higher exports
Sustainable healthy operating margin along with strengthening leverage and debt coverage indicators
New business confirmations from existing clients along with addition of marquee clients across diversified industries
Sustainable healthy operating margin along with strengthening leverage and debt coverage indicators
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Our Risk Mitigation Strategy helps us Grow
1
2
3
Revenue Growth
Risk We are a B2B player and are dependent on the success of our customers products in end products as well as Global Economic Environment
Mitigation Strategy: We have diversified our product portfolio across multiple customers, multiple SKUs and multiple business segments
Labour and Manpower availability
Risks We have faced challenges in terms of Labour and Manpower affecting production schedules
Mitigation Strategy We have increased the mix of permanent labour and manpower in all our facilities. Further we have hired technical Manpower from ITI
Raw Material price volatility
Risks Volatility in prices of Raw materials can create volatility in Margins
Mitigation Strategy We have a raw material price pass through with all our customers. The price pass through mechanism is varied across customers
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Our Way Forward is… Clear !
Revenue Uptick
Sustained uptick in Revenue based on New business confirmations, addition of new clients and increased contribution from New business segment
Sustainable EBITDA Margin
EBITDA margin should be sustainable on annual basis on back of higher utilizations in existing facilities and increasing contribution from Healthcare segment
Vast Experience and Capabilities
Varied manufacturing experience across multiple segments, long standing Global relationships, complex engineering capabilities and consistent delivery, we are a highly competent Manufacturer
Increased Healthcare Revenue
Expect 2-3x revenue growth from Healthcare segment on back of faster penetration within existing and new clients as well as large pipeline of products
Uptick in Profitability
Limited investment in capex, faster capacity utilization in Carbon Steel business and Healthcare business to lead to an uptick in Return ratios and profitability
Benefit under Make in INDIA
Global majors to increasingly outsource manufacturing to India and create alternate manufacturing hubs
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Contact
Company :
Investor Relations Advisors :
Shaily Engineering Plastics Ltd. CIN – L51900GJ1980PLC065554
Mr. Sanjay Shah, Chief Strategy Officer sanjay@shaily.com
www.shaily.com
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285
Mr. Shogun Jain/ Mr. Deven Dhruva shogun.jain@sgapl.net / deven.dhruva@sgapl.net +91 77383 77756 / +91 98333 73300 www.sgapl.net
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