MODISON LIMITED

rs,

ge of India Limited Listing Department, exchange Plaza, Plot no. C/1, October 03, 2022 PJ Towers, Dalal Street, Mumbai 400001 Scrip Code: 506261 Dear Sir/Madam, Sub: Transcript of Investors Me

Rs.342 crore

these kind of customers. With respect to distribution of business, last year we did approximately Rs.342 crores business, Rs.250 crores approximately ballpark number was from LV side and balance was from HV

Rs.250 crore

With respect to distribution of business, last year we did approximately Rs.342 crores business, Rs.250 crores approximately ballpark number was from LV side and balance was from HV side. These were our cust

16%

o years we have faced Corona also, but in spite of that we M O 0) | 5 0 IN had seen a growth of 16% on CAGR basis. This is why we see growth momentum coming and we also had taken share from other c

Rs.25 crore

is CAPEX? Manish K. Srivastava: CAPEX total amount for both the factories is budgeted at around Rs.25 crores, both Brownfield as well as Greenfield expansion put together. Second thing, on a capaci

20%

wever, when it grows, our most conservative estimate in HV we will increase capacity in excess of 20%, but minimum 30%. But the problem is in HV, the growth will not be 30%. So, we are only making th

30%

ows, our most conservative estimate in HV we will increase capacity in excess of 20%, but minimum 30%. But the problem is in HV, the growth will not be 30%. So, we are only making this thing for new

50%

CAPEX is for medium to long term investment point of view. LV also will reach capacity by minimum 50%. Aman Vij: Then continuing on this part of market share, if you can talk about LV and HV segmen

80%

t moved in the last three, five years? Manish K. Srivastava: In HV, our Market Share is about 80%. Even though we are the only player, but a small portion of requirement happens globally also eit

15Million

iew of that, our market share is approximately 80% and the size of this market would be around US$15Million at this moment, but next year it would be $20 Million, because GIS volume is shifting as a footpr

20 Million

d the size of this market would be around US$15Million at this moment, but next year it would be $20 Million, because GIS volume is shifting as a footprint. LV market size is US$150 billion. Out of this, ar

150 billion

year it would be $20 Million, because GIS volume is shifting as a footprint. LV market size is US$150 billion. Out of this, around 35% is coming from Import from various sources from various low other countr

“With regards to business, last three years if we see, one year or two years would be related to Gnaudible) 15:41 and in between two years we have faced Corona also, but in spite of that we M O 0) | 5 0 IN had seen a growth of 16% on CAGR basis.”

“So, this clearly shows the growth momentum which had started two years back on consolidation of customer side and on consolidation of our activities, we are on the right track and whatever projection we are thinking to achieve on a growth side, it seems to be on track.”

“Maximum it could shift from one quarter to another quarters in a project basis and then when the recessionary inflation reduces or pressure reduces, that demand will come across with a pent-up demand.”

“If you can talk about what is the actual amount we are spending on this CAPEX as well as what will be the additional capacity individually in LV as well as HV segment after this CAPEX?”

“So there will be some demand which will be parallelly shifted from one product series to another product series.”

“LV also will reach capacity by minimum 50%.”

“So, M O 0) | 5 0 IN in view of that, our market share is approximately 80% and the size of this market would be around US$15Million at this moment, but next year it would be $20 Million, because GIS volume is shifting as a footprint.”

“What will be the market share of the other players, Choksi and HP according to your estimate?”

“LV is high double digit and expected growth in CAGR would be in excess of 15%.”

“But, as I suggested to you, going forward, LV is a high M O 0) | 5 0 IN growth segment and HV also will grow, but LV has a higher velocity of growth and LV is a low margin volume.”

Manish K. Srivastava

58

Aman Vij

20

Ravi

18

Deepak Poddar

16

Harsh

7

Jayesh

6

Gaurav

4

SPEAKERS

2

SPEAKERS

Mr. MANISH K. SRIVASTAVA — JOINT MANAGING DIRECTOR, MODISON LIMITED MR. RAMESH KOTHARI — CHIEF FINANCIAL OFFICER, MODISON LIMITED M O 0) | 5 0 IN

Ravi

Hello, Manish sir. We have some institutional investors of a couple of PMS on the call. So, it should be a good response this time. Partly, I could say that we have had a good set of quarter results. So, that's where there has been investor interest. I will just do a bnef round of introductions of around 15-20 minutes regarding the company. Good evening and thank you, friends for joining this call of Modison Limited. Today, we have with us the top management of Modison Limited, represented by Mr. Manish Srivastava, the Joint Managing Director and Ramesh Kothan, the CFO. To give a brief intro, Mr. Manish Srivastava has close to three decades of experience in this capital goods and engineering sector. He has been part of the senior leadership team at leading companies like ABB and Crompton Greaves where he was heading several key divisions of ABB and Crompton Greaves and he has been associated with Modison for the last four to five years now as the joint managing director and CEO. We als

Manish K. Srivastava

Thank you, Ravi and thank you, everyone. Welcome to this briefing. Just to start, those who are not aware of Modison, Modison company was started in 1965. So, this is a pretty old establishment in India, almost more than 50 years. We started with trading of the goods and then we started refining facility of silver and this company was first to refine triple line silver in India. And then we were supplying to various European and other institutions. And then we started first manufacturing facility in 1978. Since then we have been in the field of manufacturing of various components which are part of predominantly power sector and to be more specific switchgear industry. In between we had global tie-ups in form of technology transfer and technology understanding and partnership with DODUCO, Germany which is a pioneer in the name of electrical industry for component of switchgear, both high voltage, medium voltage and low voltage. In 1983, we had started the technical collaboration with th

Jayesh

I think we are on path for some big expansion both in LV and HV. So, just wanted to know the status of our expansion plans and whether in light of whatever geopolitical is happening in the world and slowdown in Europe, etc., are we going slow in expansion, are we having some second thoughts there or what is it?

Manish K. Srivastava

First thing on the status of expansion. Expansion had two basic aids. It was not only some capacity expansion, it was also making our factories future-ready and globally compliant. As I explained to you, globally value chain integration and consolidation is happening. So more and more customers would like to have a strategy on low-cost sources as well as footprint change. In that case, they would like to go to a company which falls into their global compliance of environment, safety and ESG. So, factories which are more future-ready and innovation-ready would take bigger pie of the cake. So, this is one aid apart from capacity expansion which is more strategic in nature. Now, coming to status, LV factory is almost about to be ready in full, so, by end of November. The physical infrastructure work is almost ready and we have now started doing the internal work of lighting, plastering, flooring, and these kind of things and then we will start moving and expanding. So, this is part one. O

Aman Vij

First question is continuing on the CAPEX side. If you can talk about what is the actual amount we are spending on this CAPEX as well as what will be the additional capacity individually in LV as well as HV segment after this CAPEX?