Venus Pipes & Tubes Limited has informed the Exchange about Investor Presentation
Date: 28/02/2024
To,
Listing Department Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: VENUSPIPES Scrip Code: 543528 ISIN- INE0JA001018
Dear Sir/Madam,
Sub: Investor Presentation
With reference to above captioned subject, please find attached Investor Presentation.
The Presentation will be uploaded on the company’s website at www.venuspipes.com
Request you to kindly take the same on record.
Thanking You,
For Venus Pipes & Tubes Limited
CS Pavan Kumar Jain Company Secretary and Compliance Officer Membership No. A66752
VENUS PIPES & TUBES LIMITED
Company Update – Investor Presentation, Feb 2024
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
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Rationale to foray into Fittings Solutions
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Expanding offerings to include comprehensive range of fittings solutions Building on our reputation and execution track record, we are diversifying our product portfolio to encompass a wide selection of fittings , leveraging our expertise to provide complete PFF (Piping, Fittings & Flanges) solutions to our customers across industries
Faster approval on back of proven track record of serving diverse clients Our longstanding commitment in delivering top-notch solutions to our clients has earned us a loyal clientele base with trust, which will enable us in getting faster approvals
Complementary to pipes business, low competition a strategic advantage Fittings represent a value-added product line that complements our pipes business, with only a handful of competitors in the industry. This advantageous position provides us with a strategic edge over competition allowing us to offer a basket of products and increasing our SKUs to position ourselves as complete fittings solutions provider
Existing wastages/scrap key raw material for fittings solutions Internal wastages generated from pipes business will form a part of raw material used for fittings business along with wastage procurement from other players, allowing us to save high raw material costs thereby enhancing our profitability
Fitting companies play a vital role in facilitating the efficient operation of industrial processes by providing high-quality fittings that enables the seamless flow and control of fluids and gases within complex piping systems
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Fitting Project – Key Highlights
Product Range
Wide range of fittings such as elbows, tees, reducers, joints, flanges etc. designed to meet the specific requirements of different industries and applications
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Material Expertise
We will work with various metals to ensure compatibility with the substances being transported and environmental conditions
Customization
Quality Assurance
We will provide customization services to tailor fittings according to clients' specifications, which may involve modifications in size, shape, material, or other parameters
Strict quality control standards to ensure the reliability, durability, and safety of their products, while complying with industry regulations and certifications
Faster approvals expected, given our strong relations and proven track record of delivering quality products
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Capacity Expansion : Value added Welded Tubes
Description
Details
Impact
Value Added Product Line
Introducing a specialized product line of stainless and titanium welded tubes aimed at enhancing our competitive edge and profitability
Capacity Expansion
Low Competition
These specialized tubes represent critical innovation in an industry where such products are manufactured by only a select few players High precision engineering which makes it difficult for other players to enter the market
Revenue Growth & Margin Improvement
High reliability in critical applications
These value-added tubes are crafted to meet the demanding industrial requirements, boasting exceptional strength, precision, and resistance to corrosion
Increased Market Dominance
Increased sector outreach
We will manufacture both – Hygienic SS & Titanium grade of Tubes allowing us to diversify into sectors requiring critical application such as food processing, pharma along with nuclear and power sector as well
Value Added Premium Products
Phase 1 : Includes capacity expansion for setting up of value-added Fittings & Welded Tubes; to be completed by March 2025
Phase 2 : Includes capacity expansion for setting up of value-added Fittings, Welded / Seamless - Pipes / Tubes; to be completed by December 2025
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Financial Contours
Phase 1
Phase 2
Funding
Project Details
Fittings & Welded Tubes
Fittings, Seamless & Welded – Pipes / Tubes
Project Cost
Rs 115 Crores
Rs 60 Crores
Margins (%)
High teens
High teens
Asset Turnover
Similar to current asset turns
Similar to current asset turns
Return Ratios
Non-Dilutive
Non-Dilutive
Timelines
March 2025
December 2025
~40% In form of warrants to be issued to Promoters & others
~60% In form of term loan from Banks & Internal accruals
Foraying into these value-added product lines present a high Return on Capital Employed (ROCE) opportunity for the company, poised to amplify profitability and drive sustained financial growth
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Thank You
Venus Pipes & Tubes Limited
CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna ( Chief Financial Officer ) cs@venuspipes.com
Strategic Growth Advisors Private Limited
CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Ayush Haria sagar.shroff@sgapl.net / ayush.haria@sgapl.net +91 98205 19303 / +91 98204 62966
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