Signet Industries Limited has informed the Exchange about Investor Presentation
SIGNET INDUSTRIES LIMITED
Investor Presentation QFY2024
1
DISCLAIMER
This information may contain certain forward-looking statements/details in the current scenario, which is
extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances,
achievements or sequence of events may be materially different
from the views expressed herein.
Investors/shareholders/public are hence cautioned not to place undue reliance on these statements/details,
and are advised to conduct their own investigation and analysis of the information contained or referred to in
this section before taking any action with regard to their own specific objectives. Further, the discussion
following here in reflects the perceptions on major issues as on date and the opinions expressed here are
subject to change without notice. The Company undertakes no obligation to publicly update or revise any of
the opinions or forward-looking statements expressed in this section, consequent to new information, future
events or otherwise.
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Company Overview
− Signet Industries is a diversified company engaged in manufacturing of
plastic products and wholesale trade of chemicals and plastics
− The Company’s manufacturing segment is engaged in manufacturing of
irrigation and plastic products
− The Company trades in products like PVC Resins, Polyolefins, PET Resins
and Plasticizers
− Signet has wind power generation units in the state of Maharashtra and
Rajasthan
• •
• •
TRADING
PVC Resin Polyolefin
• HDPE • LLDPE • PP
PET Resin Plasticizer’s • DOP • DBP
3 2 Y F
MANUFACTURING
REVENUE ₹1017.69 cr
EBITDA ₹72.38 cr
PAT ₹13.16 cr
Micro irrigation system
HDPE Sprinkle Pipe, HDPE Pipes & Cable Duct
PVC Pipes & Fittings
Spray Pumps
Crates
Ghamela
Moulded Furniture
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The Enterprising Journey So Far
1994-2000
Distribution of DCW’s PVC resins and imported Poly- olefins. Added Reliance as client in 1996 & HPL IN 2000
1986-1991
Incorporated in 1985 & listed on BSE. It started trading of LDPE manufactured by Oswal Petrochemicals Ltd.
2007-2010
Expanded injection moulding for household/lifestyle products in 2007. And in 2010 started injection moulding for furniture & first pilot project for Drip irrigation with 1line
2002-2005 Set up 1st reprocess unit in 2002. 1st pilot project of injection moulding in 2005
2011-2013
Started work on mega project at Pithampur for drip irrigation/HDPE & PVC pipes. Completed the project in record 6 months time. In 2012 started registration in APMIP & GGRC of various states
2014-2016
Expanded dealer networks. Expanded PVC line for infrastructure projects. In 2016 expanded HDPE facility for irrigation & infrastructure NSE listing in March ‘2015. Production of 300-500mm large diameter pipes
2017-2018
Entered CPVC pipes & fitting segment. Expanded PVC fitting range. Expansion of HDPE & Drip irrigation capacity. Launched diameter fitting plant for HDPE pipes
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Our Business Segment and Product
IRRIGATION PRODUCTS
AGRICULTURE PRODUCTS
• Flat Emitting Pipes • Round Emitting Pipes • Online Drip Systems • MIS Accessories • •
Sprinkler Irrigation Systems Project implementation & Services
POLYMER TRADING • Pet Resins • PVC Resins • HDPE Granules • LLPD Granules • PP Granules • LDPE Granules • LLDPE Granules
• RPVC Pipe & Fittings • Casing Pipe • HDPE Pipes • Column Pipes • Rain Pipes •
Spray Pumps, Ghamelas, Milk Canes, Crates etc.
INFRASTRUCTURE PRODUCTS • UPVC Pipe & Fittings • CPVC Pipe & Fittings • SWR Pipe & Fittings • Construction Ghamelas • Air duet & Telephone Pipes • Ducting Pipe • DCW Pipe
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MANUFACTURING
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Micro Irrigation
A D V A N T A G E S A N D D Y N A M I C S
30-70% Savings in Water
20-25% Savings in Electricity
20-30% Savings in Labour
20-30% Savings of fertilizers
80% Increase in Crop Yield
40-60% Increase in Net Annual Income
Micro Irrigation technology plays role in Agriculture in a vital and increasing saving water productivity through effective utilization of every drop of water
− Increase in production & productivity − Improves quality & ensure early maturity of the crops − Fertigation and Chemigation save costs, increase efficacy − Control diseases − Use of saline water − Suitable for undulating land − High water use efficiency − Soil erosion is eliminated
Response of Different Crops to Micro Irrigation Systems
WATER SAVINGS (%) 45 68 68 56 48 40 45 50 61 42 66
CROPS Banana Cauliflower Chilly Cucumber Grapes Ground nut Pomegranate Sugarcane Sweet lime Tomato Watermelon
INCREASE IN YIELD (%)
52 70 28 48 23 152 45 99 50 60 19
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Extensive Range of MIS Products
PRODUCTS
Flatsil Integral Dripline
Golsil Integral Dripline
Silonline Drippers
Plain Lateral
Fertilizer Tank
Plastic Disc / Screen Filter
Ventury Injector
Metal Disc Screen Filter
Control Valves
Sand Media Filter
Other Valves
Hydro Cyclone Filter
Drip Poly Fitting
Our Formidable Reach & Presence
Our Plant
Our Offices
Our Depots
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Agri and Infrastructure Segment
Sprinkler Irrigation System
HDPE Pipes
HDPE Cable Duct
ADVANTAGE
APPLICATIONS
•
• •
•
•
•
Chemically inert, and suitable to use liquid fertilizers and pesticides Corrosion resistant, flexible and tough; Protection from sunrays, as pipes are UV Stabilized Strong, durable and cost effective
•
• • •
corrosion
Excellent resistance High flow characteristics Good abrasion resistance Smooth inner frictional losses
and
chemical
walls minimizes
Field Crops: Wheat, Gram, Pulses, Vegetables, Cotton, Soya Bean, Tea , Coffee and other fodder crops.
Applications:
Residential, Other Industrial, Hotel, Public, Government Enterprises, Golf Courses, Race Courses.
Resorts,
For Agriculture Use: Sprinkler irrigation system, Lift irrigation plan, Drip irrigation
For Industrial Use: Sewage and drainage system, Air conditioning and ducting, Dumping radioactive waste, Discharge of saline water, Discharge of chilled water, Discharge of edible oil, fruit juice and pulp milk and other edible products and Discharge of acid, bases and alkaline chemical solution
•
•
•
Low co-efficient of friction for easy, safe and fast installation by high speed air blowing without damage to duct. Reduced cost of installation and repair or upgrades Provides an alternative to HSAB of cable
Telecommunication, Computer Network,
Automatic Signalling, Railways Information
Network, Highways Cable service provider,
Broad Band Networks,
Electric Cable
Installation, etc.
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Other Agri and Household Products
Crates
Finds applications in Food and Beverages, Bakeries and Confectionaries, Hotels, Fruits, Vegetables & Flowers, Pharmaceuticals, Textiles, Automobiles, Retail Chains, Catering, Cold Storages, Fishing, etc
Ghamela
Used in construction, agriculture, storage, transportation, mining, animal feeding, domestic uses, milk transportation and drainage applications. The products mainly are Ghamela, Buckets, Milk Canes, Stools, Mugs, Supda, etc.
Household Products
The products are mainly used in day to day household chores. Products include dinner sets, baskets, trays, microwave boxes, soup cases, bulky drums, dustbins, buckets, etc.
Spray Pumps
Sprayers are commonly used for the administration of water or a water-chemical solution onto soil or vegetation for growth performance or pest control
Moulded Furniture
Used in home, school, office, etc. Products include chairs, stools, etc
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Manufacturing Segment – Revenue Mix
3% O T H E R M A N U F A C T U R E D G O O D S
74% I R R I G A T I O N
Revenue Mix
23% I N F R A S T R U C T U R E
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Polymer Trading Business
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Polymer Import & Distribution Business
Product
Principal/Vendor
PVC Resin
Imports/DCW Ltd
Polyolefin • HDPE • LLDPE • pp
Imported & locally produced
PET Resin
Reliance Industries
One of the leading players in distribution of Polymers in Central India
Sole distributor for Leading manufacturers of Polymer products
Importing PVC resin and CPVC Compounds from world-renowned suppliers Base II International | NCT | LG Chet | Maru Bani | Formosa Plastics | Sasol
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Strategically Located Plant in Central India - Indore
− Total land area of 16.5 acres with constructed area of
plant machinery and utilized is only 60%
− Latest technology/know-how from Switzerland, Israel
and USA
− With Millefleur and DRTS machines
PLANT CAPACITY
− HDPE 3000 tons per month
− Drip 700 tons per month
− PVC pipes 2200 tons per month
− Injection molding 400 tons per month
− Blow molding 50 tons per month
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Investment Rationale
Backward and forward integration strategy
Nil industry legacy issues
Experienced Promoter & Team
State of the art manufacturing plant
Bringing down manufacturing costs and ability to charge premium for brand– Saurabh Shaktiman
Absence of issues related to long outstanding, unpaid government subsidies or working capital
inefficiencies
Hands on promoter focus having more than four decades experience in the field of plastics and
Agro-Industries with due support from professional management team
State of the art automated manufacturing plant meeting global standards – quality first approach
Dealership Network
Growing dealership network across key states in India
Cash & carry model
Pioneer in sales scheme development - cash & carry model for farmers with no access to subsidy
Robust supply chain
End to end solution provider
Among the top 4 players to have created robust and complex supply chain across India
End to end solution for drip irrigation from project design to implementation and after sales
service
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Financials
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Financial Performance - Snapshots
Net Sales (₹ In Lacs)
PBT (₹ In Lacs)
31190.0
705.81
734.83
476.82
26396.5
26978.3
Q3 FY23
Q2FY24
Q3 FY24
Q3 FY23
Q2 FY24
Q3 FY 24
1.6
EPS (₹)
1.0
1.7
517.99
PAT (₹ In Lacs)
539.64
341.40
Q3 FY23
Q2 FY24
Q3 FY24
Q3 FY23
Q2 FY24
Q3 FY24
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Financial Performance - Snapshots
Net Sales (₹ In Lacs)
PBT (₹ In Lacs)
70,681.09
1187.23
87,097.78
1638.11
9M FY23
9M FY24
9M FY23
9M FY24
PAT (₹ In Lacs)
1201.07
EPS (₹)
3.95
853.59
2.77
9M FY23
9M FY24
9M FY23
9M FY24
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Key Financials- P&L Accounts
₹ in lacs
Net Sales
Raw Material
Employee Cost
Other Expenses
Total Expenditure
EBITDA
EBITDA (%)
Other Income
Interest
Depreciation
PBT
Tax
Def Tax
Net Profit
Q3FY23
26338.65
21275.89
668.74
2479.65
24424.28
1914.37
7.27
57.86
1034.51
231.93
705.81
-206.60
18.78
517.99
Q3FY24
YOY Change%
9M FY 23
9M FY24
YOY Change%
31130.58
25822.95
730.18
2091.14
28644.27
2486.31
7.99
59.45
1565.68
245.26
734.83
-214.84
19.65
539.64
18.19
29.88
04.11
04.18
70516.95
57914.34
2086.48
5610.48
86890.49
71694.62
2167.56
6738.28
65611.30
80600.46
4905.65
6.96
164.13
3206.94
675.63
1187.23
-381
47.36
853.59
6290.03
7.24
207.29
4128.55
730.66
1638.11
-505.84
68.80
1201.07
23.22
28.22
37.98
40.71
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Strategy
MIS
Capacity increase by 25% through debottlenecking cost of ₹ 1.5 cr. Taking production to 9-10 lakh mtr p.d. Entry to new states. Improvement in inventory management
Introduction of high margin products. Increase in capacity to 13000 tons @ ₹ 3 cr giving revenue potential of ₹ 130 cr additional. HDPE solid wall pipes with investment of ₹ 14cr
DWC
PVC & CPVC
Pipe fitting for PVC & CPVC. High margins products with high automation plant
Through it helps to de-risk the R/M dependence. Being non-focused area, it will remain stagnant
Trading
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Thank You