Tega Industries Limited has informed the Exchange about Investor Presentation
January 31, 2023
To,
The Corporate Services Department, Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 BSE Scrip Code: 543413
Manager - Listing Department The National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 NSE Symbol: TEGA
Subject: Investor Presentation for the Quarter and Nine months ended December 31, 2022
Dear Sir/Madam,
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor Presentation for the Quarter and Nine months ended December 31, 2022.
Kindly take the information on your record.
Thanking you,
Yours faithfully,
For Tega Industries Limited
Manjuree Rai Company Secretary & Compliance Officer
Enclosed: As stated above
TEGA INDUSTRIES LIMITED
Q3 & 9M FY23 Results Presentation
January 2023
COMPANY OVERVIEW
TEGA INDUSTRIES LIMITED
Tega Industries Limited
Commenced operations in India in 1978, in collaboration with Skega AB, Sweden
Leading manufacturer & distributor of specialized ‘critical to operate’ & recurring consumable products1
Catering to global mineral beneficiation, mining & bulk solids handling industry
Immunity from Capex Cycles
Continuous Design Innovation
Inorganic Strategy
Cater to after-market spend recurring revenues
Launched DynaPrime in 2018 – a composite liner of rubber & steel
Successfully integrated 3 acquisitions
TEGA INDUSTRIES LIMITED
3
Corporate Structure
Tega Industries Ltd
100%
50%JV
Tega Holdings Pte Ltd
Hosch
100%
100%
100%
Tega Industries Africa Proprietary Ltd.
Tega Industries Chile SpA
Losugen Pty Ltd
TEGA INDUSTRIES LIMITED
4
Evolution into a Global Multi-product Player
Foundation
Buyout
Intellectual Property, Acquisition
Additional Patent, Greenfield Project
Collaboration of our Promoter, Madan Mohan Mohanka with Sweden based Skega AB, and incorporation of Tega
Buyout by Madan Mohan Mohanka of Skega AB’s entire stake in our Company leading the way for Tega to conquer new heights
Grant of patent in relation to improved screen panel
Grant of patent in relation to mosaic liners for chutes
Acquired Losugen Pty Ltd, Australia
Commissioned SEZ unit in Dahej, Gujarat
Initial Public Offering
The shares of the company were listed on National Stock Exchange and Bombay Stock Exchange
1991-92
2006
2011
2019
1975
2001
2010
2013
2021
JV & Registration
JV alliance with Hosch (G.B.) Ltd.
Application for registration of our patent for method of preparing liner
Expansion & Acquisition
Fund Raise, Acquisition
Product Innovation & Trademark
Tega Inds. Africa PTY Ltd. (Erstwhile Beruc Equipment, South Africa)
Investment by Wagner Limited, an affiliate of TA Associates Management,
Grant of trademark in relation to ‘DynaPrime’
Tega Inds. Chile SpA (Erstwhile Acotec S.A,)
TEGA INDUSTRIES LIMITED
5
The Focus Behind Our Vision
TEGA is committed to engineering flawless solutions that enrich the future of mining
Committed: We have made long-term investments to deepen our core competence.
Engineering: We are a technology-led and specialized competence- driven company that addresses complex customer needs
Flawless: We have invested in people, processes and plants to deliver right first time.
Solutions: We have extended beyond standalone products to complete solutions.
Enrich: Our solutions have been designed to strengthen the brand, competitiveness and profitability of our customers.
Future: We engage in futuristic capabilities and technologies on the one hand to enhance the relevance of our customers in the future.
Mining: We have a singular focus on the development of products, services and solutions for the mineral processing and bulk material handling sector.
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TEGA INDUSTRIES LIMITED
Our Value-accretive Business Model
Experience
Wallet Share
Mission-Critical
Productivity Driver
Leading producers of specialized and ‘critical to operate’ products with high replacement barriers. Our products are not optional; they are critical & indispensable. They play a crucial role in helping customers reduce their cost of staying in business.
Developed rich insight into the ore quality and terrain realities across 70 countries, helping to continuously provide improved solutions
Products with established productivity and efficacy. Majority customers buy large parts of our complete solutions enhancing our wallet share
Product Portfolio
Market Leader
Present across the value chain of a mineral processing site. We offer a complete range of products and solutions for various stages.
World’s second largest producer of polymer-based mill liners (used for grinding and sizing mineral ores) by revenues.
Our products play a critical role in determining mineral processing site productivity. These improvements are measurable: they enhance throughput, moderate grinding media consumption, reduce energy consumption and lower downtime. The result is lower operating costs for customers.
TEGA INDUSTRIES LIMITED
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Our Value-accretive Business Model
Inherent Advantages
Strategic Positioning
Supply chain
High Entry Barrier
Customized design
The secret behind our multi- year engagement with customers is our ability to translate research-driven knowledge into customized product design. Tega’s engineered built-to-suit (over off- the-shelf ) competence has resulted in a neat fit, customized for each mineral processing site. This leads to enhancing value for customers.
Low reliance on outsourcing moderates its dependence on vendors minimizing the possibility of failure rates, enhances control across the Company’s processes
Strict Quality Control
Products undergo stringent selection and approval procedures before being sold to mining and mineral processing companies.
Proximity
International manufacturing operations are proximate to the world’s major copper and gold mining locations in Chile, South Africa and Australia. This proximity has strengthened logistical competitiveness, repeat engagement, capacity expansion and economies of scale
Presence in high entry barriers of technology and knowledge. We operate in an oligopolistic market with limited established global competitors
Global Distribution
18 overseas and 14 domestic sales offices in key geographies. Present close to prominent customers. Products are marketed through the ‘plant audit’ route
TEGA INDUSTRIES LIMITED
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Our digitalization momentum (Industry 4.0)
Digital Transformation
Initiatives to enhance systemic
efficiency, moderate redundancy,
safeguard from viruses and cyber-
attacks, accelerate data retrieval
and strengthen business continuity.
SAP Upgrades
ERP for the purpose of accounting,
procure to pay, order to cash,
manufacturing and planning, quality
management and plant
maintenance
Disruption
Ground-shifting sensor- based
product. This IoT-driven product
will send out real-time alerts on
product health, replacement time
and a holistic perspective of the
operating system
Analytics
Digitally enhanced products will
empower customers to take
proactive decisions related to
product replacement and systemic
repair.
TEGA INDUSTRIES LIMITED
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Q3 & 9M FY23 Performance Highlights
TEGA INDUSTRIES LIMITED
FY23 Performance Trend
Q1 FY23
Q2 FY23
Q3 FY23
Operating Revenue
Rs. 2,444 mn
YoY
+41%
Operating Revenue
Rs. 2,762 mn
YoY
+20%
Operating Revenue
Rs. 2,969 mn
Operating EBITDA
Operating EBITDA
Operating EBITDA
Rs. 461 mn
Rs. 541 mn
Rs. 672 mn
+96%
+38%
YoY
15%
32%
PAT
+94%
PAT
+57%
PAT
44%
Rs. 230 mn
Rs. 353 mn
Rs. 484 mn
TEGA INDUSTRIES LIMITED
11
Consolidated Financial Performance
Quarterly Revenue (Rs mn) & Operating EBITDA %
13.6%
1732
17.1%
2360
19.8%
2578
33%
12%
18.9%
19.6%
2444
2762
13%
8%
22.7%
2969
Q1 FY22
Q2 FY22
Q3 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Quarterly PAT (Rs mn)
9M Revenue (In Rs mn) & Operating EBITDA %
20.5%
8176
17.2%
6617
89%
226
119
49%
336
230
53%
353
37%
484
9M FY22
9M FY23
Q1 FY22
Q2 FY22
Q3 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Operations & Growth Strategy
TEGA INDUSTRIES LIMITED
Strategic Advantages
1 Diverse &
Innovative Products with Low Substitution Threat
4 Diverse Global
Presence with Strong Global Manufacturing & Sales Capabilities
2 Insulated from
Capex Cyclicity of Mining Players
5 Consistent Growth
with Operational Efficiency & High Repeat Business
3 Strong R&D leading
to Multiple Patents, with focus on Quality
6 Track Record of
Successful Inorganic Growth Strategy
TEGA INDUSTRIES LIMITED
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1
Diverse & Innovative Products
FLAGSHIP PRODUCTS MILL LINERS
HYDROCYCLONES
SCREENS & TROMMELS
CONVEYOR PRODUCTS
Rapido
Spillex
DynaPrime
DynaPulp
Tega Cyclone (PExEL)
Trommel
Centrax
SALE OF PRODUCTS
Specialized, ‘critical to operate’ And recurring consumable products
Sale of Services
DynaSteel
DynaWear
Screening Solutions
Ceramic pulley lagging
Specialized Plant Audit Consultancy
Used in grinding mills for beneficiation of minerals
Used for extracting or separating slurry particles
Used for separation of particles according to sizes
Used with conveyor belts
Mill Liners
Hydrocyclone
Ball Mill
Scalping screen
Trommel
SAG/AG Mill
Ball Mill
TEGA INDUSTRIES LIMITED
Screen chute
SAG/AG Mill
Conveyor Belt
Supply of Individual Spare Parts
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2
Insulated from Capex Cyclicity of Mining Players
Upfront capex & After-market spend over the lifecycle of a mill
1X
Upfront Capex
Approx. split
3X
After market spend
TEGA INDUSTRIES LIMITED
Recurring cost for miners
~75% Repeat Orders (over last 3 years)
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3
Strong R&D leading to Multiple Patents
Track record of bringing multiple innovative products to the market
2018 – Rapido
2018 – DynaPrime
2016 – Chutes
2015 – Trommels
R&D Capability
Quality Control
o In-house R&D team comprises 36 personnel
o R&D & manufacturing capabilities, allow turnaround of
customized designs in a short time, offer comprehensive solutions, & cross selling
o Unique design & customization of products for each
customer site
o Our continuous design innovation makes our products highly engineered “built-to-suit” rather than “off-the-shelf”
o Track record of introducing diverse and innovative products
o We do not rely on outsourcing: reduces our dependence
on vendors, minimizes failure rates & facilitates quality assurance
o Well-crafted manufacturing process leading to high-quality
production
o Ability to match diverse customer specifications
o Multiple stages of stringent selection and approval
procedures for our products
o Certified by various customers on
quality assurance
TEGA INDUSTRIES LIMITED
ISO 45001:2018 India
ISO 9001:2015 India, South Africa
ISO 14001:2004 India
Strong in-house R&D has allowed us to register 8 global patents and several trademarks
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4
Diverse Global Presence - Manufacturing & Sales Capabilities
International manufacturing operations
Chile
South Africa
Australia
Commissioning/Acquisition: 2011
Commissioning/Acquisition : 2006
Commissioning/Acquisition: 2010
Product capabilities: Mill liners, Trommels, Chute liners, Screens, Pipe and pipe repair and spools
Product capabilities: Mill liners (except DynaPrime), Spillex, Screen Panel, Chute liners
Product capabilities: Chute liners and Trommels
Domestic manufacturing operations
Dahej, Gujarat
Kolkata (Samali), West Bengal
Kalyani, West Bengal
India
Chile
South Africa
Australia
Commissioning/Acquisition: 2013 Product capabilities: Mill liner, wear products, screens and trommels
Commissioning/Acquisition: 1985
Commissioning/Acquisition: 1978
Product capabilities: Mill liners, Wear products, Hydrocyclones, Screens, Trommels & Conveyor products
Product capabilities: Mill liners (except DynaPrime), Conveyor products, Chute liners & pump liners, Hydrocyclones
TEGA INDUSTRIES LIMITED
Sales & Marketing Offices
Mining activity High
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5
Consistent Growth & Long-Term Repeat Business
Robust market position
Built Inherent Strength
Forged Strong Relations
Entry barriers helps maintain high margins over time with revenues from operations growing at 14.5% CAGR (FY19- 22)
Successfully maintained operational efficiency levels whilst completing acquisitions, JVs & strategic alliances, in Chile, South Africa & Australia
In several cases, our relationships with key customers span more than 10 years, a testimony to our business excellence
ESTABLISHED TRACK RECORD
CAGR 14.5%
Revenue from Operations Growth Momentum FY19-22
CAGR 23.6%
Operating EBITDA from FY 19-22
Differentiated, High Margin Business
Rs 3,253 mn
Robust Orderbook (31 Dec 2022)
Significant visibility
TEGA INDUSTRIES LIMITED
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6
Track Record of Successful Inorganic Growth Strategy
JV in 1991
o Assistance from Hosch England
covering aspects such as planning, layout, overseas marketing, R&D and procurement of raw materials
Acquisition in 2011
o Access to the Latin American markets
including Chile, Peru and Bolivia o Latin American countries contribute 40% of the global copper production and 8% of the global gold production output according to the F&S report
TEGA INDUSTRIES LIMITED
Acquisition in 2006 o Expand operations globally o Provided access to manufacturing
capabilities and customers in Africa’s mining and industrial markets
o Also gave access to the member countries of the Southern African Development Community
Acquisition in 2010 o Increased market share in Australia by acquiring competitor at the time o Provided access to a ready platform to launch conveyor accessories & screens in that market
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Key Growth Drivers Going Forward
Diverse & Innovative Products with Low Substitution Threat
Leverage in-house R&D to grow product offerings & capitalize on future trends
Expand manufacturing capabilities to optimise economies of scale
Explore opportunities for inorganic growth
Operational efficiencies & margin expansion
Increase our penetration & market share in North & South America, Australia & South Africa
Improve our market penetration by cross-selling
Continue focus on high quality products with recurring demand leading to high repeat revenues
In-house R&D team focuses on upgrading our existing products & variants
Focus on our ability to customize our product offerings through innovation
Continue to discern emerging trends & proactively identify new products
Continue expanding manufacturing capabilities by adding capacity at our Dahej & Samali facilities in India
Plan to set up a new manufacturing facility in Chile
Expand into life cycle management for our customers
Actively pursue acquisitive opportunities & strategic alliances with complementary targets
Seek acquisitions that provide us with access to new technologies, or new customers, or new geographies
Continue enhancing our operational efficiencies, to increase economies of scale, better absorb our fixed costs & strengthen our competitive position
Focus on cycle time reduction by adopting advanced technologies that will also result in process optimisation
TEGA INDUSTRIES LIMITED
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Key Growth Drivers Going Forward
Capitalise on growing relevance
Disrupt the market
Balance Sheet integrity
• Ore grades depleting in gold mines
•
•
Disproportionate growth in mining and mineral processing industries
Increased large equipment demand (including mineral processing consumables)
•
•
•
Penetrate the market with the distinctive DynaPrime product
Leverage the launch of sensor-based products
Focus on launching a recycling service for used products
•
•
•
Expand largely out of accruals
Fund working capital needs at a low cost
Remain largely under-drawn for working capital needs
Increase Market Share
Increase Customer Base
Leverage Market Insights
•
•
Leverage existing presence in 3 global manufacturing locations
Increase market penetration in high growth markets
• Widen presence in North America, South America, Australia and South Africa
•
•
•
Leverage design, engineering and manufacturing potential
Enhance wallet share of existing customers; increase cross-sale
Focus on quality products and value-added solutions with recurring demand
•
•
•
Deepen presence in existing markets (USA, Chile, Peru and Mexico)
Leverage insights from these markets to enter new ones
Position as a multi-sector and multi-terrain specialist
TEGA INDUSTRIES LIMITED
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Experienced Board of Directors
MADAN M. MOHANKA Chairman and Executive Director Appointed: Since inception
Promoter, Founder and Chairman Serves on the Board of our subsidiaries
MEHUL MOHANKA Managing Director and Group CEO Appointed: Jun-02
SYED YAVER IMAM Executive Director Appointed: Jul-05
One of the Promoters, MD & Group CEO Chairman of the mining and construction equipment division & Co-chair of the national committee on mining of Confederation of Indian Industry
Serves as Director - Global Product Group Executive Director from Apr-21-present Previously Non-Executive Director on the Board (Jun-19 to Mar-21)
JAGDISHWAR SINHA Independent Director Appointed: May-21
MADHU DUBHASHI Independent Director Appointed: May-21
Previously with The Tata Iron and Steel Company Ltd., Tata Timken Ltd., Timken India Ltd., Schaeffler Technologies AG & Co., Ace Automation Control Equipment Private Ltd., Caparo Maruti Ltd.
Previously with Global Data Services of India Ltd. Bachelor’s degree in arts from University of Delhi & PGDM from IIMA
TEGA INDUSTRIES LIMITED
ASHWANI MAHESHWARI Independent Director Appointed: Apr-22
Previously with VARROC Engineering, B. K. Birla Group, ITC Ltd & Tata Steel Mechanical Engineering from IIT, Roorkee & Sloan Masters degree in Leadership & Strategy from London Business School
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Management Team
MEHUL MOHANKA MD and Group CEO
One of the Promoters of the Company, MD & Group CEO Associated with Tega for almost two decades Master’s degree in Business Administration from the University of Pittsburgh & Bachelor’s degree in commerce from University of Calcutta
SYED YAVER IMAM Director – Global Product Management Group & Head of Sales
Associated with Tega for four decades Joined as a Trainee in 1981 and climbed up the ladder Bachelor’s degree in Civil Engg from Jadavpur University
MANOJ KUMAR AGARWAL Director Global Finance, Chief Financial Officer
Associated with Tega for 7+ years; Qualified CA, CS Previously associated with Sesa Sterlite Ltd. (now Vedanta Ltd) for almost a decade Bachelor’s degree in commerce from University of Calcutta
TEGA INDUSTRIES LIMITED
MANOJ SINHA Director- Global Operations
BHANU SHARMA Senior Vice-President – Human Resources & Administration
Associated with Tega for 7+ years, Btech Previously associated with Tata Engineering and Locomotive Company, New Holland Tractors (India) and Sterling Generators Bachelor’s degree in engineering from Sambalpur University
Associated with Tega for more than 1 year Previously associated with JSW Energy for more than a decade PGDM from MDI, Gurgaon
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THANK YOU!
Mr. Manoj Kumar Agarwal-CFO
Mr. Kaushal Sureka- DGM Finance
investor.relations@tegaindustries.com
Mr. Nachiket Kale
+91 9920940808 nachiket.kale@linkintime.co.in
Mr. Rajesh Agrawal
Sr. Vice President
+91 99674 91495 Rajesh.Agrawal@linkintime.co.in