Valiant Organics Limited has informed the Exchange about Investor Presentation
••••
Valiant Organics Limited
September 28, 2022
To, Listing/Compliance Department BSE LTD Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001.
BSE CODE-540145
To, Listing/Compliance Department National Stock Exchange of India Limited "Exchange Plaza", Plot No. C/1, G Block Bandra-Kurla Complex, Sandra (E), Mumbai- 400 051. NSE SYMBOL-VALIANTORG
Sub: Investor Presentation. Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015.
Dear Sir/Madam,
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith presentation made to the shareholders of the Company at the 17th Annual General Meeting held today i.e., Wednesday, September 28, 2022.
Please take note of the above on your record.
Yours Faithfully, For Valiant Organics Limited
Avani D. Lakhani Company Secretary ICSI M.NO: A47118
Regd. Office: 109, Udyog Kshetra, 1st Floor, Mulund Goregaon Link Rd, Mulund West, Mum ai 400 080, India.
+91 22 6797 6683 • info@valiantorganics.com • www.valiantorganics.co 1 CIN NO. : L24230MH2005PLC151348
17th ANNUAL GENERAL MEETING 28 SEPTEMBER 2022
1
SNAPSHOT
One of the largest chlorophenol derivatives manufacturer globally
One of the leading manufacturer of Benzene derivatives products
One of the largest domestic PNA manufacturer
One of the few commercial players in Ortho Anisidine and Para Anisidine
Amongst 1st few domestic PAP Manufacturers
Diversified client base across Pharmaceuticals, Dyes & Pigments, Agrochemicals and specialty chemicals.
6 Manufacturing units across 5 Locations
5 Zero Liquid Discharge plants
Total Production Capacity of 70,000 TPA
850+ Employees
2
Manufacturing Footprint
CHLORINATION – SARIGAM Capacity: 18,000 MTPA • Products: PCP, OCP, 2,4 DCP, 2,6 DCP, • 2,4,6 TCP
AMMONOLYSIS - VAPI • •
Capacity: 10,000 MTPA Products: PNA, OCPNA
AMMONOLYSIS - TARAPUR Capacity: 6,600 MTPA • Products: PNA •
HYDROGENATION & METHOXYLATION- JHAGADIA UNIT 1 • •
Capacity: 28,800 MTPA Products: ONA/OA, PNA/PA, IPPCA, CONVERSION PRODUCTS
HYDROGENATION – JHAGADIA UNIT 2 • •
Capacity: 12,000 MTPA Products: PAP, PHARMA INTERMEDIATES
ACETYLATION & SULPHONATION – AHMEDABAD • •
Capacity: 1,800 MTPA Products: 6 ACETYL OAPSA, OA/PA ACETANILIDE, OT5SA
Valiant Organics Limited | September 2022
3
Chemistries And Product Basket
Ammonolysis Key Products: • Para Nitro Aniline • Ortho Chloro Para Nitro Aniline
Industries Served: • Dyes • Pigments
Others Acetylation Key Products: • 6 Acetyl OAPSA • OA Acetanilide • PA Acetanilide
Sulphonation Key Products: • OT5SA • 4B Acid • 2B Acid
Methoxylation Key Products: • Ortho Nitro Anisole • Para Nitro Anisole
Industries Served: • Dyes
Industries Served: • Dyes • Pigments
Industries Served: • Dyes • Pigments
31%
29%
31%
9%
Industries Served: • Dyes • Pigments • Pharmaceutical • Agro Chemicals
Hydrogenation Key Products: • Ortho Anisidine • Para Anisidine • • Meta Chloro Aniline • Para Amino Phenol • Ortho Amino Phenol
IPPCA
Chlorination
Key Products: • Para ChloroPhenol (PCP) • Ortho ChloroPhenol (OCP) • 2,4 Di Chlorophenol (2,4 DCP) • 2,6 Di ChloroPhenol (2,6 DCP) • 2,4,6 Tri ChloroPhenol (2,4,6 TCP)
Industries Served: • Agro Chemicals • Cosmetics • Veterinary • Pharmaceuticals
Valiant Organics Limited | September 2022
4
FY22 Revenue Share
Key Strengths
Domain expertise and broad process understanding in a variety of chemistries. The executive team is made up of first-generation technocrats with more than 50 years of collective expertise.
Wide supply chain provides the continuous availability of adequate and high-quality raw materials and manufacturing.
Plant locations are strategically located near ports to provide a competitive advantage, significant logistical cost savings, and faster delivery times.
Robust Business Model
Integrated Operations
Strong Customer Relations
Distinct Product Portfolio
Domain Knowledge
Widespread Supply Chain
Strategic Location of Plants
Diverse product range and client base across numerous industries and countries provides a sustainable business model in multiple chemistries by lowering product, industry, and geographical risk.
Multi-use and backward integrated plants to produce a wide range of products and tailor them to meet the diverse needs, technical qualifications, batch sizes, and delivery schedules of our clients.
Established multi-year relationships with clients in both domestic and international markets due to high-quality standards, innovative production capabilities.
Manufacturing a diverse range of intermediates as well as value-added products for a variety of industries.
Valiant Organics Limited | September 2022
5
FINANCIAL OVERVIEW
6
Consolidated Financial Highlights
Operational Revenue (INR Mn)
EBITDA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
11,533
6,923
6,749
7,548
2,300
2,000
1,700
1,400
1,100
800
500
1,798
1,803
2,052
2,049
25.97%
26.71%
27.19%
17.77%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1,500
1,200
1,332
19.24%
1,309
17.34%
1,279 11.09%
1,282
18.70%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
Net Debt to Equity (x)
0.49
0.25
0.23
0.30
Net Worth (INR Mn)
6,489
5,086
4,008
3,014
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
Return on Capital Employed & Return on Equity (%)
45.98%
44.19%
ROCE
ROE (%)
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
31.49%
30.41%
33.33%
25.73%
22.39%
19.71%
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Valiant Organics Limited | September 2022
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STRATEGIC OVERVIEW
8
Key Growth Factors
I
A D N
I
E G A T N A V D A
CHINA +1
OPPORTUNITIES
POLICY SUPPORT
INCREASING INVESTMENT
• Global companies
looking to broad base their procurement away from China to diversify geographical risk
• Even a 5% shift away from chemical specialty China’s industry can translate into a US$ 8 billion opportunity for India
•
•
•
•
Indian specialty chemicals (22% of total chemicals) grew at CAGR of 11% (FY14-15 to FY20-21), making its global share to 4%
Indian Agrochemical sector is anticipated to grow at CAGR of 9.3% by 2025 with specialized chemicals expanding at over 12% CAGR
Indian Dyestuff & Intermediates is expected to grow at CAGR 11% during FY2021-26
Pharma market
Indian is expected to grow 3x to reach US$ 65bn by 2024 and US$ 120+bn by 2030
• The
government
plans to introduce production-linked to incentives scheme promote domestic manufacturing of agrochemicals.
(PLI)
• Under the union budget 2022- 2023, the government allocated INR 209 Crs (USD 27.43 Mn) to the Department of Chemicals and Petrochemicals.
• Total FDI inflow in the chemical sector fertilizer) reached USD 19.09 Bn between April 2000 and July 2021.
(other
than
•
India’s chemical specialty companies are expanding their to rising capacities to cater demand from domestic and overseas.
• An investment of INR 8 lakh cr (USD 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. The specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India. specialty The chemicals is expected to rise at a 12% CAGR in 2019-22.
demand
for
Source: Annual Report FY21-22/IBEF Valiant Organics Limited | September 2022
9
Completed & On-Going Projects
Product
Commissioned
Para Nitro Aniline (PNA) & Ortho Chloro Para Nitro Aniline (OCPNA)
Ortho Nitro Anisole (ONA)
Para Nitro Anisole (PNA)
Para Anisidine (PA)
Ongoing Projects
Installed Capacity (MT per month)
Approx. Capex (INR Mn)
Project Status
Remarks
550
600
200
150
~ 70
Completing phase-wise
• Expansion from 550 TPM to 750 TPM at Vapi plant • Full capacity addition in progress
Completed in Q4 FY’20
• Backward integrated for existing product Ortho Anisidine
~ 350-400
Completed in Q4 FY’20
• Captive use towards manufacture of Para Anisidine
Completed in Q4 FY’20
• Currently mostly being imported in India • Valiant will be one of the major producers in India
Para Amino Phenol (PAP)
1,000
~ 2,200
Completed in Q4 FY’21
the actual production delayed
• Currently, limited availability domestically and mostly imported • Due to technical difficulties in achieving the desired specification,
Ortho Amino Phenol (OAP)
100
~ 150
Pharma Intermediates
20
~ 600
• Ramp up in process for batch operations on-going. • Simultaneous work on-going towards continuous process
Phase 1 production to commence soon
• Currently, entirely imported in India • Part of the production will be utilized as forward integration for
one of company's existing products
Expected production from Q3 FY’23
• Multi-purpose plant for forward integration within Group
Company
• Will manufacture N-1, N-2 raw materials for API products • Awaiting approvals
Valiant Organics Limited | September 2022
10
FY 2022-23 Roadmap
Target Revenue Growth of 30%+
Increase Margin Profile
Stabilise and Scale up PAP project
Enhancing other Production Capacities
Moderate Production Costs
Strengthen Supply Chain
Widen Product Mix
Enhance Customer Base
Focus on Debottlenecking
Improve Returns on Capital Employed & Equity
Improve Working Capital and Reduce Debt
11
THANK YOU
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