Suprajit Engineering Limited has informed the Exchange regarding Investor Presentation
Suprajit Engineering Limited
Registered & Corporate Office : #100 & 101, Bornrnasandra Industrial Area, Bengaluru - 560 099. Tel: +91-80-43421100, Fax: +91-80-27833279 E-mail: info@suprajit.com Web: http://www.suprajit.com Corporate Identity Number (CIN): L29199KA1985PLC006934
January 07, 2020
Ref: 532509 BSE Limited Department of Corporate Services P. J. Towers, 25th Floor, Dalai Street, Mumbai- 400 001
Ref: SUPRAJIT National Stock Exchange of India Ltd Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra (E) Mumbai- 400 051
Dear Sirs,
Sub: Investor Presentation
Please find enclosed Investors' Presentation, which may be presented to various investors, analysts while meeting and also while attending investor conferences, if any, from time to time. This presentation is also available in our website.
This is for your Information and records.
This may be considered as compliance under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Thanking you,
Yours faithfully,
~ ErGINEERING LIMITED
Me'dappa ~ CFO & Company Secretary
Encl: as above
Marching Ahead
with Confidence…
Investors’ Presentation
Jan 2020
Overview
1
2
3
Core business, Group and Organization structure
Customer Profile
4
5
Financials.
Milestones, Strengths and Accolades
Strategy – Suprajit 2.0
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
2
Core Business, Group and Organization Structure
A Global Leader in Control Cables and Halogen Lamps
3
Exhaustive Range of Cables…
Park Brake Cables Clutch Cables Starter Cables Throttle Cables Door Latch Cables Push‐Pull Cables Mirror Cables Tail Gate Cables Gear Shifter Cables Tyre lifting Cables Fuel Filler cables Hood Lock & Release Cables Window Regulator Cables Cables for Seat Belts Seat Belt & Recliners Cables Speedometer & Tachometer Cables Seat lock Cables Engine stop Cables Idle Cable Assembly Flexible Drive Assembly And many more…
Indicative List of Our Products Used in a 4W
Indicative List of Our Products Used in a 2W & Nonautomotive
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
4
..and Halogen Bulbs.
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
5
Best in class facilities
World‐class manufacturing with operations IATF 16949 certified.
Global standards in manufacturing, testing and quality assurance.
Vertical process integration for key processes and optimized supply chain.
IATF 16949 Plants
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
6
Suprajit Group Stucture
Suprajit Engineering Limited
100%
Suprajit Europe (SEU)
Suprajit Automotive (SAL)
Suprajit USA, Inc
Suprajit Foundation (CSR Arm)
Phoenix Lamps Division (3 plants) (Erstwhile Phoenix Lamps Limited, merged with Suprajit recently)
100%
100%
100%
Wescon Controls LLC (2 plants)
Luxlite Luxembourg
Trifa Germany
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
7
Leadership team
K. Ajith Kumar Rai Founder & Chairman
N.S.Mohan Managing Director
Medappa Gowda J CFO & CS
Ashutosh Rai Head - STC
Financial Controller
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
CS
8
Group overview
Top 3/ 5 in cables / halogen lamps. Dominant supplier in Indian Automotive Industry. Preferred Supplier to both Domestic and Overseas Customers (OEMs and
Aftermarket).
Exports to 50+ countries. Strong presence in nonautomotive cables in US/North American markets
through Wescon.
Strong Brands: Suprajit, Wescon and Phoenix.
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
9
Customer Profile
Customers ‐ automotive
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
11
Customers – 2 wheeler
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
12
Customers – Non automotive
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
13
Customers (> US$ 3 million)
Hero Moto Corp
TVS Motor
Bajaj Auto
Honda Group
John Deere Group
BMW
MTD
Yamaha
Toro
VW Group
Lumax
M&M
Magneti Mareli
Royal Enfield
Ford
Piaggio
Renault Nissan
Husqvarna
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
14
Strategy – Suprajit 2.0
2019
Multiple Segments
Multiple Customers
Multiple Products
Strategy – Derisk & Grow Profitably
1985
Single Segment
Two wheeler
Three wheeler
Four wheeler, CVs
Non‐Auto, Exports Aft‐mkt
Single Customer
TVS Motor Company
Bajaj Hero Honda Yamaha
Tata Motors, Swaraj Mazda, Eicher Motors
German, Japanese and NA 4W OEMs, domestic 4W OEMs
John Deere Kubota
Single Product
Mechanical Control Cables
Single Location
Karnataka
Speedo‐ meters, other auto components
Multiple States
Cable based assemblies
Automotive Halogen Lamps
Karnataka Maharashtra Gujarat Haryana Uttarakhand,
Rajasthan Tamil Nadu Uttar Pradesh
UK , US, Germany, Luxembourg, Mexico
Multiple Locations
Single Brand
Multiple Brands
Aggressive Capacity Expansion Strategic Acquisitions – Shah Concabs, Gills Cables, Pricol (Cables), Phoenix, Wescon, Osram Karnai(Chennai) Plant
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
16
Strategy – 3 brands
Suprajit Engineering Automotive Cables
Phoenix Lamps Halogen Bulbs
Wescon Controls Non‐Automotive cables
•14 manufacturing facilities in India including EOU for non‐ automotive.
–
• SAL automotive
EOU facility
for
• SEU ‐ Tamworth, UK.
Tech
Centre
in
• SEK – Owned Warehouse in Koper, Slovenia.
• Over 35 years of expertise in cables.
• 3 manufacturing facilities in India.
• Manufacturing Wichita, Kansas, USA.
facility
in
• 2 facilities in Germany and Luxembourg.
• 1 Maquiladora Juarez, Mexico.
facility
in
• Acquired by Suprajit in May 2015 and merged with Suprajit in August 2017
• Over 30 years of expertise in Halogen Lamps.
• Acquired by September 2016.
Suprajit
in
• Over 75 years of expertise in cables & controls.
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
17
Global Footprint
20 manufacturing plants globally for Automotive control cables and Halogen Bulbs
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
18
Financials
Capacities
300
250
200
150
100
50
0
Cable Capacity
(In millions)
0 0 2
0 8 1
5 7 1
0 4 1
7 5 1
5 2 1
0 4 1
5 1 1
0 5 1
5 2 1
5 0 1
0 0 1
0 9
0 8
6 6
0 5 2
0 5 2
2 1 2
* 0 5 2
5 2 2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Cables Produced
Cable Capacity
CAPACITY Bulbs – 110 million
Cables – 300 million
Revenue Split
Bulbs, 18%
FY 18‐19
Cables, 82%
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
20
Robust Financials (Group)
Robust growth in net sales…
…high EBIDTA …
...and high net profit
(USD Mn)
4 . 0 3 2
3 . 4 7 1
1 . 7 6
2 . 0 5
9 . 9 2
7 . 8 8
7 . 3 3 3 . 9 2
4 . 9 5 1 . 6 1
0 . 4 1
2 . 1 1 1 . 8
3 . 4
8 . 8 6 . 4
3 . 7
3 . 1
FY09 FY11 FY13 FY15 FY17 FY19
FY09 FY11 FY13 FY15 FY17 FY19
FY09 FY11 FY13 FY15 FY17 FY19
supported by low Long Term Liabilities / Equity...
5 5 0
.
6 4 0
.
5 4 8 0 3 0
.
.
7 2 0
.
1 2 0
.
resulting in exceptional ROCE…
% 1 6 3
.
% 8 2 3
.
% 7 1 2
.
% 8 2 2
.
.
% 3 6 % 2 0 3 0 2
.
….and high EBIDTA margins
% 2 6
.
% 1
.
2 3 1
% 7 5 1
.
% 9 4 1
.
% 6 6 1
.
% 6 4 1
.
FY09 FY11 FY13 FY15 FY17 FY19
FY09 FY11 FY13 FY15 FY17 FY19
FY09 FY11 FY13 FY15 FY17 FY19
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
21
Segmental and Geographic Synergies
i
e s w - y r o g e
t
a C
e s i w ‐ y h p a r g o e G
1%
2.5%
21%
21%
FY 01-02
96,5%
22%
22%
21%
FY 17-18
FY 18-19
21%
36%
36%
Automotive
2‐wheeler
Aftermarket
Non‐automotive
1%
FY 01-02
99%
FY 17-18
41%
59%
59%
FY 18-19
41%
Global
Domestic
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
22
Milestones, Strengths and Accolades
A Global Leader in Control Cables and Halogen Lamps
23
Key milestones in our journey
• Listing of shares in NSE and BSE • • Acquisition of Shah Concabs – 4W
India’s largest cable marker
cable competitor
• Plants in Bangalore, Manesar and
Chakan ‘Enterprise of the state’ award by KSFC
•
0 1 - 6 0 0 2
5 9 - 5 8 9 1
• Commencement of
operations
• Consolidating position as established global
mechanical cable marker; diversifying and de- risking revenue profile
• New plant at SAL, Bangalore and Pathredi • Acquisition of Speedo cable business (4W
business) of Pricol
• Acquisition of Phoenix Lamps Limited • Acquisition of Wescon Controls, Wichita, USA. • Launched two new plants in Chennai and Sanand • Launched capex of Rs.100 crores to expand cable
capacity to 300 million with 2 new plants.
• Acquisition of Osram Karnai, Chennai Plant
(Halogen Bulbs division)
• Two new cable plants in
Bangalore
5 8 9 1
5 0 0 2 - 6 9 9 1
6 acquisitions – 4 in cable space / 2 in Halogen bulbs space. Proven track record of integration Strong Organic growth
• New plants in Pantnagar, Haridwar and
Manesar
• 100% EOU for non-automotive cables in
Bangalore
• Best Enterprise of the State Award by
Karnataka State
• Twin Awards by CNBC/ICICI/CRISIL- SME of
the year & Auto Ancillary of the year
• Acquisition of CTP Gills Cables, one of the oldest cable companies with marquee global customers – now renamed as Suprajit Europe
9 1 - 1 1 0 2
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
24
Suprajit Strengths
Mass manufacturer with competitive cost advantage.
High productivity and low overhead costs.
Excellent customer rapport.
A proprietary class `B’ item, giving a strategic relationship advantage.
Best in-class manufacturing system.
Excellent R&D system.
Best supply chain footprint for customer requirements.
Best in class testing facilities.
Ability to setup modular capacities at low capex for dynamic growth.
Industry beating operational and financial costs.
Excellent management team, motivated and focused.
“Value for money supplier” with best QCDD rating.
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
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Awards and recognitions
s n o i t i n g o c e r d n a s d r a w a r e m o t s u C
Volkswagen – ‘A’ Grade Supplier Award, Quality Performance Award.
Honda Motor Cycles and Scooters – Quality and Delivery Achievement Award.
General Motors - Supplier Quality Excellence Award (3 years in a row).
John Deere – Accelerated Global Sourcing Award.
Brose Key Supplier Award.
Bajaj Auto Limited – TPM Excellence Award.
Tata Motors – Green Card for ‘0’ PPM.
Hero MotoCorp Limited – Direct Online Supply (DOL) Award.
Bajaj Auto Limited - Quality Consistency Gold Award.
Yamaha - Cost Reduction & VA/VE activity award. - A grade excellence Award.
TVS, Bajaj and Mahindra – various Awards.
And many more….
r e h t
O
s d r a w A
1995
2006
2007
2010
2017
KSFC: Entrepreneur of the year for the promoter
CNBC/ICICI/CRISIL: SME of the year
Auto Ancillary of the year
NASSCOM: Best IT user Award in Automotive Sector
KSFC: Outstanding Enterprise of the State.
BMA – Entrepreneur of the Year.
A Global Leader in Control Cables and Halogen Bulbs…… A Global Leader in Control Cables and Halogen Lamps
26
300 Million Cables
110 Million Halogen Bulbs
One Goal
Customer Satisfaction
A Global Leader in Control Cables and Halogen Lamps
27
THANK YOU
www.suprajit.com
A Global Leader in Control Cables and Halogen Lamps
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