Swan Energy Limited has informed the Exchange about Investor Presentation
swan/nse/bse
Dept. of Corporate Compliances, National Stock Exchange Limited, Exchange Plaza, Plot No. C/1, G Block, Bandra –Kurla Complex, Bandra-East, Mumbai – 400 051 Symbol: SWANENERGY
Subject: Presentation at the Investors’ meet
March 17, 2025
Dept. of Corporate Service BSE Limited, P.J. Tower, Dalal Street, Fort, Mumbai – 400 001 Scrip Code: 503310
We enclose herewith a presentation to be made at the Investors’ meet scheduled to be held on Tuesday, 18 March 2025.
Request you to take the same on record.
Thanking you,
Yours faithfully, For Swan Energy Limited
(Paresh V. Merchant) Executive Director
Swan Energy Limited
Corporate Presentation
March 2025
Table of Contents
Swan Group Overview
Swan Group – Key Subsidiaries
Group Management
Business Segments
- Oil & Gas – Swan LNG
- Oil & Gas – Veritas (India)
- Defense & Shipyard
- Real Estate
- Textile
- Technology
Key Financial Metrics
Section
Slide No.
2
3
4
7
16
20
33
34
35
36
1
Swan Group Overview
2
Swan Group – Key Subsidiaries
Textile
SWAN ENERGY LIMITED (SEL) SWAN ENERGY LIMITED (SEL)
Veritas (India) Limited
Pegasus Ventures Private Limited
Cardinal Energy & Infrastructure Pvt Ltd.
Hazel Infra Limited
Swan LNG Private Limited
Agneyastra Innovations Private Limited
(55.01%)
(100%)
(100%)
(99%)
(63%)
(59.95%)
Real Estate
LNG Port Facility
Swan Defence and Heavy Industries Limited.
(94.91%)
Defense & Shipyard
Private
Listed
Business
* The above is just an indicative organization structure containing only key subsidiaries.
3
Group Management
Mr. Navinbhai C. Dave
(Chairman / Non-executive Director – SEL)
Mr. Nikhil V. Merchant
(Managing Director - SEL)
Mr. Paresh V. Merchant
(Executive Director - SEL)
A seasoned entrepreneur with an experience of more than 60 years in various areas of real estate & textiles.
Has completed his B.S. in textile engineering from U.S.A and his M.E.P degree from IIM Ahmedabad, has a total experience of more than 35 years in all functional areas of textile, real estate, oil & gas sectors.
With more than 3 decades of experience in the textile, real estate, oil and gas sectors, He is responsible for company operations and strategies. He has an educational background in finance and has completed his M.E.P from IIM Ahmedabad.
Mr. Vivek Merchant
Mr. Bhavik Merchant
Mrs. Vinita Patel
Having completed his Engineering from the University of Michigan, Ann Arbor, Vivek is involved in ongoing and day-to-day operations of the group. He is holding directorships in various group companies.
He has economics degree from the University of California, Los Angeles (UCLA). He directs and focuses on managing and overseeing the day-to-day operations of the group. He is holding directorships in various group companies.
A chartered accountant herself with a flair for multitasking, She is involved in handling the day- to-day operations of the port business of the group. She is holding directorships in various group companies.
4
BUSINESS SEGMENTS
5
Oil & Gas: Swan LNG
6
Overview of LNG market in India
India’s muted domestic LNG demand
Current trends are muted
Domestic demand trends are muted
▪ Flattish growth in past
decade
▪ Price volatility and
absence of LT LNG supply contracts a concern
Domestic production has declined 2% CAGR in the past decade
▪ Leading to higher reliance on imports – a trend likely to continue
Current LNG import terminal utilization is low at 54%; ex Petronet’s Dahej ~25%
▪ FY24 capacity: 47MMTPA; Upcoming new capacity: ~40 MMTPA
* Source: PNGRB’s Optimizing LNG Supplies from terminals in India, December 2024, IEA, Swan Energy
400
300
200
100
0
Domestic consumption (LHS, MMSCMD)
1.0%
Cagr (RHS, %)
2 1 Y F
3 1 Y F
4 1 Y F
5 1 Y F
6 1 Y F
7 1 Y F
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 Y F
4 2 Y F
0 3 Y F
Domestic production has declined
150
100
50
0
Domestic production (LHS, MMSCMD)
Cagr (RHS, %)
2 1 Y F
3 1 Y F
4 1 Y F
5 1 Y F
6 1 Y F
7 1 Y F
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
3 2 Y F
4 2 Y F
0 3 Y F
0.5%
0.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
7
Overview of LNG market in India
Reliance on import is increasing
MT to LT trends remain constructive
▪
LNG will play a significant role in India’s energy transition journey
▪ Government aims to 2x natural gas share in energy mix to 15% by 2030
▪
IEA projects demand of 311 MMSCMD by 2030 (FY24: 185 MMSCMD)
Utilization of LNG import terminals to rise
▪ Domestic production will unlikely increase…
100
50
0
LNG terminal capacity (MMTPA) LNG Import (MMTPA) Utilization (%, RHS)
150%
100%
50%
0%
5 0 0 2
7 0 0 2
9 0 0 2
1 1 0 2
3 1 0 2
5 1 0 2
7 1 0 2
9 1 0 2
1 2 0 2
3 2 0 2
0 3 0 2
▪ … leading to potential of near doubling of LNG imports over next few years
▪
Import terminal utilization expected to improve despite capacity adds
* Source: PNGRB’s Optimizing LNG Supplies from terminals in India, December 2024, IEA
8
2.0%4.0%6.0%8.0%050100150200250FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY30Imports (LHS, MMSCMD)Cagr (RHS, %)Swan’s LNG import terminal
India’s first FSRU-based LNG Import terminal ▪
Total capacity of 10 MMTPA (Phase I: 5 MMTPA)
Concession agreement with GMB for 30 (+20) years ▪
Equity partners – Swan Energy (63%), Gujarat Maritime Board (15%), GSPL (11%), Mitsui OSK (11%)
Strategic Location ▪
Proximity to international shipping routes (Gulf to Columbo); Shortest distance from Gulf among all the Indian terminals
▪ Waterfront: 3 Kms, Diu Airport: 60 Kms, Proximity to Pipavav railway station, Land
parcel: 285 acres.
▪ Connectivity to GSPL's gas grid for re-gasified LNG evacuation (<2 Kms)
Terminal is in a near-ready state
9
Terminal Infrastructure Is Near-ready
Overall progress
Jetty work progress
Topside work progress
Breakwater work progress
Dredging & Reclaim
Onshore infrastructure
2,200m Breakwater
88%
71%
100%
85%
100%
39%
10
Recent pictures of the terminal
11
“Use or Pay” contracts substantially mitigates risks
MMTPA
6
5
4
3
2
1
0
1.5
0.5
20-year Use or Pay contracts
1.0
Marquee PSUs– total 4.5 MMTPA
1.0
1.0
Tolling business model ▪
PSU pay SLPL to re-gasify their own LNG
Stable revenue stream for SLPL
Mitigates substantial business and financial risks
12
Navigating Significant Challenges
Project witnessed significant execution challenges…
… pushing the project to near NPA status
Swan Energy’s timely intervention
▪ Cyclone “Vayu” hits Gujarat coast in June 2019 which damaged construction works
▪
Project got delayed beyond stipulated time permissible by the Reserve Bank of India
▪ Covid-19 pandemic – 1st and 2nd wave created sizeable challenges to execute such critical projects
▪ Cyclone “Tauktae” – Project site was in storm trajectory and significantly impacted construction works
▪ To avoid NPA classification, an urgent Rs2,200 crores of term loans from bank needed refinancing
▪
Swan Energy infused entire Rs2,200 crores (100% contribution versus 63% equity interest) into Swan LNG
▪ Given delays in terminal
infrastructure, we decided to monetize our FSRU by selling to Turkish company BOTAS for US$399m in July 2024
13
Exploring Strategic Options
Heads Of Agreement
▪ AG&P is a global leader in developing and running LNG and gas
logistics and distribution solutions
▪
▪
▪
▪
Exploring following potential synergies/ opportunities
JV company to procure FSRU and FSU
JV company to source and market LNG for Indian market
Strategic equity stake in SLPL
14
Oil & Gas: Veritas (India)
15
Refining and Petrochemical Storage Terminal
Verasco FZE (100% Sub. Of VIL)
Versatile refinery – Distillation/ fractionation ▪ The only terminal in Middle East to offer this service
Capability to handle spectrum of petroleum products ▪ Class A/B/C, petrochemicals, and non-classified products like bitumen
▪
& base oil 20 internal floating roof tanks – Can handle Gasoline, Aviation Kerosene, Crude oil etc.
Fully integrated chemical and petrochemical storage terminal ▪
Storage capacity: 170,000 cbm; Tanks: 30; Capacity: 3,500 cbm - 17,800 cbm
Dedicated stainless steel tanks for blending of products as per customer specifications
Value added services ▪ Drumming station, Laboratory, ISO tank etc.
16
Location, connectivity, operational excellence
Prime Location: Hamriyah Free Zone, UAE ▪ Close proximity to the port; Access to major shipping routes and key markets in South Asia and Africa. Sharjah is the only Emirate with ports on the Arabian Gulf’s west/ east coast with direct access to Indian Ocean
▪
Only terminal in Middle East that can handle multiple categories of specialty products
Efficient Jetty Operations ▪
Short jetty lines and can operate in all five berths (one of the few) for fast vessel turnaround.
Only facility in UAE to have received the BIS certification for five products
Automated terminal, best fire fighting, high focus on safety and sustainability
Verasco FZE
17
Terminal infrastructure
18
Defence & Shipyard : SDHI
19
Global market| Ageing of global fleet
The current global fleet age is at about 13 years, with >40% ships aged 20+ years
GT Weighted age
~# of vessels
13
12
11
10
9
18%
19,215
10%
10,874
14%
15,192
34%
37,345
24%
26,388
109,036
Total Fleet size
5 0 0 2
6 0 0 2
7 0 0 2
8 0 0 2
9 0 0 2
0 1 0 2
1 1 0 2
2 1 0 2
3 1 0 2
4 1 0 2
5 1 0 2
6 1 0 2
7 1 0 2
8 1 0 2
9 1 0 2
0 2 0 2
1 2 0 2
2 2 0 2
3 2 0 2
4 2 0 2
Ageing (in yrs)
>100m LoA
0 to 10
11 to 20
21 to 30
31 to 40
>40
53%
53%
42%
21%
16%
The global fleet age has been rising over the last decade
Industry is moving towards larger vessels, driving a favorable outlook for larger shipyards
* Source: Clarksons; Note: As of December 2024
20
Global market| Ageing of global fleet
Geopolitical tensions leading to elongation of trade routes
Houthi attacks in Red Sea are driving commercial shipping towards longer and costlier routes
* Source: EIU
21
Global market| Reduction in capacities
Total number of shipyards globally, 2015-2024
Global shipbuilding capacity, 1997-2030E
No.
800
700
600
500
400
79
300
117
66 15
147
200
100
0
732
140
149
123
100
163
152
131
115
64 24
131
92
71 19
73
28
71
30
327
330
314
297
85
138
73
20
172
77
26
157
76
21
247
181
203
124
121
94
65 18
86
66 19
123
86
77
83
64 20
67 18
85
66
64 15
72
60
64 13
42
57
60 12
54
66
61 10
48
62
58 14
51
57
53 14
53
40
49 10
289 37 40
49 10
220
185
167
161
139
154
140
161
170
172
169
153
5 0 0 2
6 0 0 2
7 0 0 2
8 0 0 2
9 0 0 2
0 1 0 2
1 1 0 2
2 1 0 2
3 1 0 2
4 1 0 2
5 1 0 2
6 1 0 2
7 1 0 2
8 1 0 2
9 1 0 2
0 2 0 2
1 2 0 2
2 2 0 2
3 2 0 2
4 2 0 2
China
South Korea
Japan
Europe
Others
(m dwt)
200
180
160
140
120
100
80
60
40
20
0
Previous peak 171.8
123.4
111.4
7 9 9 1
8 9 9 1
9 9 9 1
0 0 0 2
1 0 0 2
2 0 0 2
3 0 0 2
4 0 0 2
5 0 0 2
6 0 0 2
7 0 0 2
8 0 0 2
9 0 0 2
0 1 0 2
1 1 0 2
2 1 0 2
3 1 0 2
4 1 0 2
5 1 0 2
6 1 0 2
7 1 0 2
8 1 0 2
9 1 0 2
0 2 0 2
1 2 0 2
2 2 0 2
3 2 0 2
E 4 2 0 2
E 5 2 0 2
E 6 2 0 2
E 7 2 0 2
E 8 2 0 2
E 9 2 0 2
E 0 3 0 2
* Source: Clarksons
22
Global market| Reduction in capacities
Shipyard global backlog duration, with current being at 3.2 years
4
3
2
0
Today
0 9 9 1
2 9 9 1
4 9 9 1
6 9 9 1
8 9 9 1
0 0 0 2
2 0 0 2
4 0 0 2
6 0 0 2
8 0 0 2
0 1 0 2
2 1 0 2
4 1 0 2
6 1 0 2
8 1 0 2
0 2 0 2
2 2 0 2
E 4 2 0 2
E 6 2 0 2
E 8 2 0 2
E 0 3 0 2
Global backlog duration
Average
-1SD
+1SD
Total order backlog
# vessels2: 3,547 Avg. time3: 3.8 years
# vessels2: 719 Avg. time3: 3.9 years
# vessels2: 683 Avg. time3: 2.7 years
* Source: Clarksons, Secondary research
23
1. Dead Weight Tonnage; 2. Based on delivery schedule from 2024-33; 3. Average taken across 2024 for the next available slot
India | Poised to capitalize on opportunity
20+ shipyards in India
Gujarat (Pipavav + others)
West Bengal & Odisha (5 yards)
75+
Export orders
With experience across multiple vessel categories
Maharashtra (1 yard)
Goa (7 yards)
Karnataka (2 yards)
Cochin (3 yards)
Andhra Pradesh (1 yard)
Tamil Nadu (2 yards)
Offshore
Bulk Carriers
Coastal vessels
Barges and tugs
Significant government support through MIV 20303
Goal: Top 5 shipbuilding and maritime nation
Up to 30% financial aid for new-build vessels1
$10+ Bn Maritime Development Fund2
1. Financial aid through Shipbuilding Financial Assistance Policy (SBFAP) for green vessels 2. Proposed by Govt. of India 3. Maritime India Vision 2030 released Nov, 2020 by Ministry of Ports, Shipping and Waterways India
24
India | >US $30bn opportunity in next 12-15 years
Estimated cumulative market size $ Bn
Total
Domestic Defence SB
30-40
20-25
Dom. + Export Commercial SB
10-15
0
10
20
30
40
▪
▪
Large part of the orderbook to be placed in near-term
$ 20-25 Bn domestic defence ship building market has largely filled the near-term capacity for DPSU shipyards
▪ Hence, most DPSUs likely constrained on ability to
absorb and deliver new orders
*Source: Clarksons, Secondary research; Expert inputs; BCG analysis
25
SDHI is India’s largest shipyard
662m dry dock and fabrication capacity exceeding cumulative capacity of all other yards in India
Capacity: 12k MT4 fabrication per month
Infra: dry dock, offshore yards
Production: Fabrication and Profiling
1
2
3
4
Dry dock 1: 662m x 65m
Wet Basin (potential dry dock2): 340m x 60m
Offshore yard: 750m x 265m
Others:
• •
265m quay side of offshore yard 1 Goliath crane with lift capacity of 600 MT4
1
144k MT4 annual steel production capacity spread across 300+ acres (larger than all DPSU1 shipyards in India combined)
2 Profiling : Capacity presses up to 1800 MT4 s for plate bending and profiling
3
Expansion : Additional 75+ acres of adjacent land available for future capacity augmentation
Capacity to build 400k DWT3 vessel
1. Defence Public Sector Undertakings; 2. 6 potential docking slots using 2 Lambda gates; 3. DWT: Dead Weight Tonnage; 4. MT: Metric Tonnes
26
Highly strategic location
Mundra Port
Kandla Port
Reliance Oil Refinery
Strategically located in an industrial hub, Pipavav has access to a robust support ecosystem
Vadinar Port
Nayara Oil Terminal
KCC Buildcon
DBC Sons
Ultratech Cements
Ahmedaba d
Rajkot
IMC Ltd
Rajula
Swan LNG
Gulf Petrochem
Sea & Land access to Mumbai with potential to tap additional industrial demand
Bhavnagar
Alang
Bharat Shell
APM Terminal
Pipavav Shipyard
Strong technical support ecosystem in Bhavnagar, Rajula, Rajkot and Ahmedabad
Skilled workforce available in Rajula, Rampara, Jaffrabad, etc.
27
Recent pictures of the shipyard
Significant progress made in yard restoration since January 2024
Phase I dredging (~6.6 lac Cu. M.) & R&R mobilized for Phase II
Testing of TTS panel production line underway
Load cell installation and testing completed in GC and 2 ELLs
Civil restoration of Shed E completed
Hydraulic presses for forming available for operations
28
Eight vessels in near completion stage
5
2
1
Offshore Support Vessels (OSVs) at 85%+ completion level
Specifications: LoA 59.20 m, YANMAR 6EY26 2 set engines with service speed of 12.5 km; IRS1 class
Naval Offshore Patrol Vessels (NOPVs) at 70%+ completion level
Specifications: LoA 104.98 m, MTU 2 set engines and Kirloskar 4 set auxiliary engines; IRS class
Coast Guard Training Ship (CGTS) at 75%+ completion level
Specifications: LoA 104.70 m, MTU 2 set engines and Kirloskar 4 set auxiliary engines; IRS class
OSV-1
OSV-4 & 5
NOPV-1
29
Experienced leadership team
Leadership at SDHI
Rear Admiral V K Saxena CEO
37+ years of experience in senior management roles in shipbuilding, repairs, operations and Infra Ex - CMD, GRSE Ltd., Indian Navy
Mr. Arvind J Morbale Executive Director
400+ in-house and 600+ vendor workforce already on-ground
Project Management and Design : ~5
Production and Operations: ~80
Civil and P&M Maintenance: ~85
Safety and Quality: ~30
Operations support1: ~100
Commercials and SCM: ~40
Support functions (HR, IT, Legal, etc.): ~80
35+ years of experience with focus on offshore Oil & Gas business, both for new build & repairs Ex – ED and Asset Manager at ONGC
Cmde. Sanjiv Kapoor Head Yard Ops & Readiness
35+ years of Naval experience across both offshore and onshore, with deep expertise on ship owner's perspective Ex - CMD, GRSE Ltd., Indian Navy
▪
▪
▪
▪
▪
Critical technical talent selectively retained from erstwhile shipyard workforce
Focused talent acquisition underway to fill 85+ mid-mgmt. roles, ensuring the right expertise is available to ensure rapid progress
Skill development in progress in profiling, welding, erection, etc., for bulkers, passenger cruises and chemical tankers, etc.
100+ SOPs being defined in key areas of commercial, planning & project management, design, procurement, etc.
All quality and regulatory certifications in place
30
SDHI offers synergies with other group operations
Infrastructure (Cardinal): ~2.6 Mn sqft. commercial & residential projects in Mumbai, Bangalore & Hyderabad
Partnership for development of habitation to provide housing facilities for manpower at Pipavav
Oil & Gas (Swan LNG): LNG regasification capacity up to 5 MMTPA of LNG at Jaffrabad via acquisition of Triumph offshore; potential to increase capacity upto 12.5 MMTPA
Potential orderbook augmentation for build, repairs & fabrication for LPG/LNG tankers, rigs, FSRUs, etc.
Petrochemicals manufacturing & trading (Veritas): Terminal in UAE with 172k m3 storage capacity with integrated services (drumming, blending & distillation)
Opportunity in allied business segments, currently under discussions
31
Other businesses
32
Real Estate
▪
▪
Engaged in development of Residential and Commericial real estate projects.
Execution track record ~27.14 lakhs sq,ft. commercial & residential projects in Mumbai, Bangalore & Hyderabad.
PROPERTY
TOTAL AREA ~(‘000 IN SQ FT)
LOCATION
STATUS
Kurla IT Park
1,000
Mumbai
Completed & Delivered
Ashok Gardens
Sai Tech Park
Technova
Cardinal One
Bodhi
840
296
292
188
98
Mumbai
Completed & Delivered
Bangalore
Leased to Harman Connected Services Corporation
Hyderabad
Leased to Google Connected Services India
Bangalore
Completed and Delivered, 14 flats inventory pending
Bangalore
Approvals & RERA in-process, Foundation & sub-structure works in progress
33
Textile
LEGACY OF MORE THAN 100 YRS We have a legacy of over a 100 years in the Textile Industry and has been a household name for decades as its products catered to the needs of men, women and children. We manufacture various products from dress materials to suiting and shirting materials.
TEXTILE UNIT 2010 In 2010, we commenced textile processing unit in Ahmedabad, Gujarat, with the vision to leverage its successful brand image to cater to the booming demand from the garment sector.
1 LAKH METRES PER DAY The plant has an installed production capacity of 1 Lakh meters per day.
HIGH END FACILITY This facility comprises of imported continuous processing machines like singeing /desizing, continuous scouring and bleaching ranges, etc.
34
Technology
SwanSat Pvt Ltd
Agneyastra Innovations Pvt Ltd
▪ Remote sensing solutions across agriculture, disaster
▪ Technology-enabled solutions in domain of
management, defence and urban planning
infrastructure security
▪ Agritech: Satellite-driven crop intelligence and
irrigation management
▪ Disaster Management: Landslide mitigation and
damage assessment system
▪
▪
Security solutions to national assets like power plants, ports, refineries etc.
Solutions for disaster preparedness in aspects like early warning systems, remote monitoring etc.
▪ Defence: Space-based surveillance
▪ Opportunity to participate in various B2G and G2G
▪ Urban Planning: LiDAR-powered digital twin for 3D
urban monitoring
projects.
35
KEY FINANCIAL METRICS
Key Financial Metrics
Total Income
6002
CAGR@ 118%
5,100
EBITDA
1764
951
324
494
1,449
72
75
242
FY21
FY22
FY23
FY 24
9m FY 25
FY21
FY22
FY23
FY24
9m FY 25
EBITDA and EBITDA Margin
22%
15%
17%
19%
951
29% 1764
72
FY21
75
FY22
242
FY23
FY24
9m FY 25
EBITDA
EBITDA Margin
* Revenue of 9MFY 25 includes sale of FSRU * FY 25 numbers annualized for CAGR calculation
Technology
SwanSat Pvt Ltd
Agneyastra Innovations Pvt Ltd
▪ Remote sensing solutions across agriculture, disaster
▪ Technology-enabled solutions in domain of
management, defence and urban planning
infrastructure security
▪ Agritech: Satellite-driven crop intelligence and
irrigation management
▪ Disaster Management: Landslide mitigation and
damage assessment system
▪
▪
Security solutions to national assets like power plants, ports, refineries etc.
Solutions for disaster preparedness in aspects like early warning systems, remote monitoring etc.
▪ Defence: Space-based surveillance
▪ Opportunity to participate in various B2G and G2G
▪ Urban Planning: LiDAR-powered digital twin for 3D
urban monitoring
projects.
38
Key Financial Metrics
Total Income
6002
CAGR@ 118%
5,100
EBITDA
1764
951
324
494
1,449
72
75
242
FY21
FY22
FY23
FY 24
9m FY 25
FY21
FY22
FY23
FY24
9m FY 25
EBITDA and EBITDA Margin
22%
15%
17%
19%
951
29% 1764
72
FY21
75
FY22
242
FY23
FY24
9m FY 25
EBITDA
EBITDA Margin
* Revenue of 9MFY 25 includes sale of FSRU * FY 25 numbers annualized for CAGR calculation
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