Apar Industries Limited

rs,

est global manufacturers of conductors and in India we are the largest manufacturers. Over the years, there have been a lot of change in the way the conductors division has shifted, so if we look at t

50%

rs, CTC and lot of turnkey solutions and lot of copper based conductors. They account for about 50% of revenue if you look at FY22 wherein the margins are much more higher than margins in terms of

Rs. 4200

look at our trend of EDITDA per MT you will see the highest number. Our revenue in FY 22 stood at Rs. 4200 Cr. and the CAGR over 5 years grew by about 13.3%. Our plants are located at Orissa, and also at S

13.3%

ighest number. Our revenue in FY 22 stood at Rs. 4200 Cr. and the CAGR over 5 years grew by about 13.3%. Our plants are located at Orissa, and also at Silvassa. It is also one of the oldest business th

16%

est transformer oil on a global stage. Our revenue was 3500 cr. in FY22 and the 5 year CAGR about 16%. We have a wide variety of oil products. Transformer oil is used in the transformer and finally g

18%

c player in renewables in India. Our revenue was close to 2000 Cr. in FY22 and CAGR growing about 18% in 5 years. We entered this business somewhere in 2008 and here also we cater to wide variety of

20%

harma, cosmetics, like that. Management: Our lubricant business would be about somewhere around 20% comprising of industrial oil & auto oils Participant: That is the combo of industrial and aut

6%

usiness, what has changed in the last couple of years, the margins have really moved up from like 6% to almost about 13-14% kind of growth? Management: Here, what you see is that our whole oil bus

14%

ged in the last couple of years, the margins have really moved up from like 6% to almost about 13-14% kind of growth? Management: Here, what you see is that our whole oil business as well as conduc

45%

hat too in India. Over the years, we have diversified into many different kinds of oils. Close to 45% of our transformer oil goes for export and overall our oil export has been close to 45%. Partic

30%

our sales quality would be good. If you look at couple of years ago, we have almost shelved about 30% of our customers, the volumes that you see now here is after this. Having a good customer is what

40%

d on yearly basis to the market you are into? Management: at least in India we would be about 40% share of the transformer oil. For white oil the market would be about 5 lakh KL in India, we woul

“and the CAGR over 5 years grew by about 13.3%.”

“in FY22 and CAGR growing about 18% in 5 years.”

“Last two years, I think there has been historical high, in volume as well as profitability, but then if you look at the current oil prices being so high, there may be resistance from the customers to accept the price, therefore there will be pressure on the margins.”

“Would you say one category is more profitable meaningfully and how should we look at the mix going forward and what to?”

“As far as margins that you can expect because there is so much volatility in oil price.”

“Yes, I think if you look at percentage the auto oil would be high, but in absolute basis the transformer oils will be higher.”

“So the margin pressure will be there when the prices are high and when the customer push for lower prices because if the overall oil price being high, the cost for the customers also really high.”

“Or any ballpark number for solar, how much cables will be required, or similar for wind?”

“Because what is going to happen is that solar installation which is to be 10-12 GW will be 20- 30 GW so are we ready for that kind of growth that we see that.”

“Cables also I think we are actually putting up line to increase our manufacturing capacity for our elastomeric cables but at the current prices that we have, our capacity will be about 30-40% more than current business”

Management

123

Participant

116

Moderator

1

Particepant

1

Participants

1

Participant

I’m Dhiral Shah from Phillip Capital, I’m Levin from Value Quest we have PMS as well as family office and we look probably from an investment point of view from career point of view, we have family investment office, I represent Udit capital we are basically sell side broker we look at all this institutional clients, Rohan from Atva investment we have family office, Raj Sha I’m from pioneer wealth pear PMS, Akshay Kothari from Envision capital we have pear PMS, Alisha Mahaviya from Envision capital, Vrushali Jadav from MIV Investment PMS, Jiraj Shah managing my own funds, Pratiksha from Aequitas Investments, Priyankar from Famycare family office, Pawan Bharaddia from Equitree capital we are also from PMS, even I’m from Equitree capital, I’m managing a family office based out of Dubai, Anmol Sekhari family office. Thank you.

Management

From the management here, I am Ramesh and I am joined by Sanjay Lad. I’m sure you must have seen this corporate presentation which we have posted on the website. It is the same presentation, I will take you with some of the slides to give you an introduction of the business divisions in which we are in. So largely we are into 3 divisions Conductor, Oils and Cable division. Conductor Division: We are one of the largest global manufacturers of conductors and in India we are the largest manufacturers. Over the years, there have been a lot of change in the way the conductors division has shifted, so if we look at the last few years it has been domestic or more technically ACSR conductors but in last 3-4 years the shift has happened to a more premium category conductors what you call as HTLS high efficiency conductors, OPGW type conductors, CTC and lot of turnkey solutions and lot of copper based conductors. They account for about 50% of revenue if you look at FY22 wherein the margins are m

Management

PGCIL earlier was forming a high share, now there are lots of other transmission companies that we deal with.

Participant

Will you take a subcontract, as you said you are on EPC that you take a complete turn key contract for laying the lines?

Management

So that is also one part of our business which is EPC as well as the supply conductors. Wherever it is reconductoring of the lines, we take EPC. That is something that if you look at EPC and other premium products that we are talking about it accounts to about half of our total sale there. These collectively we call as the premium products.

Participant

In the oil business, can you help us with little bifurcation of how much percentage or what application?