Shaily Engineering Plastics Limited has informed the Exchange about Investor Presentation
SEPL/SE/Feb/23-24 February 15, 2024
The General Manager, Corporate Relations/Listing Department BSE Limited Floor 25, P.J. Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 501423
The Manager,
Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code: SHAILY
Sub: Resubmission of Q3FY24 - Result Presentation
Ref: Regulation 30 of the SEBI Listing Regulations, 2015
Dear Sir,
This is in continuation of our earlier submission of Investor Presentation dated 13th February 2024, we hereby inform that there is some typographic error at page no. 10 in the presentation which we have corrected. Hence, the Company is submitting the revised file of the Investor Presentation for the quarter and nine months ended on 31st December 2023. Please consider the same as part of earlier compliance.
A copy of the same is also available on our website www.shaily.com.
Kindly take the same on record.
Thanking You.
Yours truly, For Shaily Engineering Plastics Limited
Dimple Mehta Company Secretary & Compliance Officer M. No. A31582
Encl: a/a
Shaily Engineering Plastics Ltd
Investors Presentation February 2024
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shaily Engineering Plastics 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.
2
Key Performance Highlights
Key Business Updates for Q3 FY24
Pharma
Contracts signed for development and supply of Pen injectors
Home Furnishing (Steel)
Business awarded for products in carbon steel
Total Contracts Received
Total Products
4
2
Personal Care
Business awarded for supply of caps by FMCG Customer Components confirmed
4
Key Financial Highlights – Q3 & 9M FY24 (Consolidated*)
Revenues
Gross Profit Margin
EBITDA
+16%
0%
+770 bps
+580 bps
158.4
472.6
473.3
136.3
43.9%
36.2%
41.0%
35.2%
+67%
33.0
19.7
+25%
87.2
69.9
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
EBITDA Margins
Profit After Tax
Cash PAT#
+630 bps
+360 bps
20.8%
18.4%
14.8%
14.5%
+156%
14.5
5.7
+50%
38.0
25.2
+76%
23.9
13.6
+31%
63.6
48.7
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
(Rs. Cr.)
#Cash PAT includes PAT & Depreciation
* Includes the UK Subsidiary Business
5
Key Financial Highlights – Q3 & 9M FY24 (Standalone)
Revenues
Gross Profit Margin
EBITDA
+8%
-3%
+330 bps
+410 bps
134.2
144.7
466.2
453.2
35.3%
38.6%
34.3%
38.4%
+22%
22.2
18.2
+10%
65.0
71.5
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
EBITDA Margins
Profit After Tax
Cash PAT#
+180 bps
+180 bps
13.6%
15.4%
14.0%
15.8%
+39%
6.2
4.5
+16%
24.7
21.3
+23%
15.3
12.4
+12%
44.6
50.0
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
Q3FY23 Q3FY24
9MFY23
9MFY24
(Rs. Cr.)
#Cash PAT includes PAT & Depreciation
6
Utilization & Volume
n o i t a z i l i t U e n h c a M
i
)
%
(
l
s t n a P s s o r c A
s r e m y l o P f o e m u o V
l
) T M
( d e s s e c o r P
On Standalone basis
38.0%
39.9%
37.6%
44.7%
40.2%
Q3FY23
Q2FY24
Q3FY24
9MFY23
9MFY24
5,673
5,223
16,026
16,718
4,121
81% of FY23 Volumes
Q3FY23
Q2FY24
Q3FY24
9MFY23
9MFY24
* Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it will ramp up in the coming quarters
7
Operational Trends
n o i t a z i l i t U e n h c a M
i
)
%
(
l
s t n a P s s o r c A
s r e m y l o P f o e m u o V
l
) T M
( d e s s e c o r P
On Standalone basis
58.0%
59.7%
42.2%
40.2%
FY21
FY22
FY23
9MFY24
14,602
19,474
20,615
16,718
FY21
FY22
FY23
9MFY24
* Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it will ramp up in the coming quarters
8
Revenue Analysis - Domestic Vs. Exports
FY23
9M FY24
23.0%
25.8%
77.0%
74.2%
Export
Domestic
On Standalone basis
9
Profit & Loss Statement
Standalone
Consolidated
Particulars (Rs. Cr.)
Q3 FY24
Q3 FY23
YoY %
9M FY24
9M FY23
YoY %
Q3 FY24
Q3 FY23
YoY %
9M FY24
9M FY23
YoY %
Revenue
Raw Material
Employee Expenses
Other Expenses*
Other Income
EBITDA
144.7
134.2
8%
88.8
14.5
20.2
1.1
22.2
86.9
11.6
17.7
0.2
18.2
22%
453.2
279.3
40.9
66.5
4.9
71.5
466.2
306.4
35.4
62.6
3.2
65.0
-3%
158.4
136.3
16%
88.8
14.7
23.0
1.1
33.0
86.9
11.8
18.1
0.2
19.7
67%
10%
473.3
279.3
41.5
70.3
4.9
87.2
472.6
306.4
35.9
63.5
3.2
69.9
EBITDA Margin
15.4%
13.6%
15.8%
14.0%
20.8%
14.5%
18.4%
14.8%
Depreciation
Finance Cost
PBT
PBT Margin
Tax
PAT
PAT Margin
Cash PAT^
Cash PAT Margin
9.0
5.0
8.2
7.9
4.8
5.5
5.7%
4.1%
2.0
6.2
4.3%
15.3
10.6%
1.0
4.5
3.3%
12.4
9.2%
25.2
13.2
33.0
7.3%
8.3
24.7
5.5%
50.0
11.0%
23.4
13.0
28.7
6.2%
7.4
21.3
4.6%
44.6
9.6%
49%
39%
23%
15%
16%
12%
9.4
5.0
18.6
11.7%
4.0
14.5
9.2%
23.9
7.9
4.8
7.0
5.1%
1.3
5.7
4.2%
13.6
25.7
13.2
48.3
10.2%
10.3
38.0
8.0%
63.6
23.4
13.0
33.5
7.1%
8.3
25.2
5.3%
48.7
166%
156%
76%
15.1%
10.0%
13.4%
10.3%
0%
25%
44%
50%
31%
* Other Expenses include Power & Fuel costs
^ Cash PAT = PAT + Depreciation
10
Balance Sheet
Particulars
Non Current assets Property, Plant and Equipments Capital Work in Process Intangible assets Investments Intangible assets under development Financial Assets Other Investments Loans Income tax assets
Other Non-Current Assets
Total Non Current Assets
Current Assets Inventories Financial Assets Trade Receivables Cash and Cash Equivalents Loans
Other Current Assets
Total Current Assets
Total Assets
On Standalone basis
Sep-23
Mar-23
Particulars
Sep-23
Mar-23
332.7 95.5 13.6 20.6 6.3
0.5 0.5 21.0 490.7
348.6 49.0 13.8 15.4 5.7
0.5 2.1 17.2 452.3
89.0
73.0
103.4 17.8 5.4 42.4 257.9 748.6
88.8 17.7 13.7 39.2 232.4 684.6
Equity
Equity Share Capital
Other Equity
Total Equity
Non Current Liabilities
Financial Liabilities
Borrowings
Other Liabilities
Provisions
Deferred Tax Liabilities (Net)
Total Non Current Liabilities
Current Liabilities
Financial Liabilities
Borrowings
Trade Payables
Other Financial Liabilities
Other Current Liabilities
Provisions
Total Current Liabilities
Total Equity and Liabilities
9.2 403.7
412.9
63.6 12.5 2.4 17.3
95.8
144.5 76.3 12.7 4.7 1.6 239.9
748.6
9.2 386.5
395.6
62.5 1.2 2.3 16.9
82.9
123.2 51.7 10.4 19.5 1.2 206.1
684.6
11
Cash Flow Statement
Particulars (Rs. Cr.)
Profit Before Tax
Adjustments
Operating profit before working capital changes
Changes in working capital
Cash generated from operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Change in cash and cash equivalents
Opening Cash Balance
Effect of exchange rate changes on cash & cash equivalents held in foreign currencies
Closing Cash Balance
On Standalone basis
H1 FY24
H1 FY23
24.8
23.2
48.0
-8.6
39.4
-3.9
35.6
-54.6
15.2
-3.8
17.7
0.0
13.9
23.2
21.7
44.8
-12.6
32.3
-4.6
27.7
-21.8
48.9
54.7
31.4
0.1
86.2
12
Delivering PROFITABLE GROWTH
Revenues
+29%
565.9
599.7
EBITDA
+21%
89.8
91.1
360.6
453.2
62.1
EBITDA Margin
17.2%
71.5
15.2%
15.8%
15.9%
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
Profit After Tax
+17%
35.1
22.0
30.0
24.7
41.5
Cash PAT
+23%
61.6
63.2
Margin Profile
8.3%
6.1%
8.2%
6.2%
50.0
6.7%
5.0%
7.3%
5.5%
PBT%
PAT%
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
(Rs. Cr.)
On Standalone basis
Note: Financials are excluding Excise Duty
13
Growth Along With Low Leverage
RoCE
RoE
15.7%
16.3%
12.5%
12.9%
12.9%
12.8%
7.9%
8.2%
FY21
FY22
FY23
9M FY24*
FY21
FY22
FY23
9M FY24*
Total Debt : Equity (x)
Long Term Debt : Equity (x)
Total Debt / EBITDA (x)
1.2
0.7
3.6
0.5
0.5
0.5
0.3
0.2
0.2
1.9
2.0
2.4
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24*
✓ The growth in Business has been achieved with disciplined use of capital
✓ The internal accruals also been utilized towards scheduled repayments of Long-term loans, which have positively impacted the credit rating therefore the
borrowing costs
On Standalone basis
*On Annualized Basis
14
Strong Focus on Improving Our Key Metrics
Fixed Asset Turnover (x)
OCF to EBITDA
1.6
1.7
1.7
93.0%
69.8%
1.1
45.8%
46.9%
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9MFY24
✓ The Fixed Asset Turnover has been inching up despite continuous capex (barring FY19) on back of improving utilization levels to cater
to the new business wins across multiple segments of Home Furnishing, FMCG, Pharma
✓ Cash flow generation has been healthy resulting in capex spends from internal accruals
On Standalone basis
15
Overview
About the Company
Enriching Lives Through Plastics
Shaily was established in 1987 with just two moulding machines. Today, its facilities have grown significantly to include more than 175 machines, and Shaily plastics can be found across the globe in products as diverse as medical devices, home furnishing, Toys, Personal Care and automotive components in plastic and we have recently forayed into steel furniture.
Founded in 1987
Revenue* Rs. 607 Crores FY 2022-23
7 Facilities in Gujarat 6 for Plastic 1 for Steel Furniture
Long-standing global relationships with marquee clients
200+ Injection moulding machines
Over 2,000 employees across 7 plants
De-risked Business Model
* On Consolidated Basis
17
Vision, Mission & Our Values
Vision & Mission
To provide end-to-end solutions in plastics
Deliver superior quality to our customers; higher profitability and value to our shareholders; and sustainability for future generations
✓
✓
Our Values
Deliver customer delight through excellence in performance
Never bypass systems and processes
Always follow through on targets and commitments
Build a positive team and family spirit – One Shaily
Treat everyone with courtesy and respect
Doing it right the first time
Be passionate, determined, proactive and ready to take on challenges
18
Our Core Capabilities
NPD
Manufacturing
Quality
Sustainability
• Tool design • Mold flow • • Automation •
Process design
Polymer Selection
Precision molding
• • Decoration &
Printing • Assembly • Automation
• Regulatory compliance • Robust QA/QC processes • • Continuous improvement
Testing protocol
• Social compliance • Renewable energy • Recycled /
biodegradable plastics
19
Our Journey from FY15 to FY23 has created a strong base
Consumer Business
Healthcare
Business
Financial Health
Accelerated existing Consumer Business by adding New Customers & New Segments
Increased utilization levels of Healthcare business
De-risked Business Model
Created Financial Flexibility and Strong Balance Sheet to address large Business opportunities
We have developed a Strong base for growth: SHAILY IS FUTURE READY
20
Our Strong base of last few years makes us Future Ready…
Accelerated existing business with Homes Furnishing major
1
• Strengthened our relationship with Swedish Home Furnishings major • Ventured in Carbon Steel Business for the Homes Furnishing Major
Deepening foray in IP related products and Healthcare
De-risked Business Model
3
• Focused on new business segments and customers to de-risk the
business model
• Ventured in Toys category with the addition of Toys major Spin Master • Investment made in Carbon Steel Business to diversify concentration beyond Plastics
• By entering into Carbon Steel business, cemented relationship with
existing customers and have got into Multi Material Products (combination of Plastic & Steel)
• Healthcare is now the 2nd largest revenue contributing segment • Added 12 Drug Delivery devices in commercial production • Consolidation of Healthcare units to achieve faster breakeven and
higher efficiencies
• Built high scale to be able to achieve 2-3x revenue growth in 3-5 years
Created Financial Flexibility and Strong Balance Sheet to address large Business opportunities
• Funded capex of Rs. 150cr to set up Healthcare business, expansion of new SKUs for Homes Furnishing major and carbon steel business from internal cash flows and Debt
• Despite investment in capex Debt/Equity at comfortable levels; below 1x • A Strong Balance sheet is FUTURE READY to take advantage of ‘MAKE IN
INDIA’
2
4
21
Business Segments
Consumer
Personal Care
Healthcare
Automotive & Engineering
Steel Furniture
Home Furnishings Business
Toys Business
High Volume Molding, Decoration & Assembly
Drug Delivery Devices
Automotive Components
Pharma Packaging
Engineering Plastics
Carbon Steel Furniture
22
Quality Certifications
IATF 16949-2016
ISO 9001 : 2015
ISO 13485 : 2016
ISO 15378 : 2015
MDSAP
23
Certifications
Security Certifications
Social Compliances Certifications
Other Certifications
AEO T2 Certificate
Intertek
RD Recognition Letter
Star Export House
SA-8000 2014
Other Social Compliances Certifications
I-WAY
GMP
24
Enriching Lives … Through Sustainable Performance
The PLEX Council Award Top Exporter Of Engineering Components For Eleven Consecutive Years: 2005 to 2019
Top Exporter Award (1St Position) For Exports Out Of Rct, Vadodara By Container Corporation Of India Ltd At Concor Awards, 2017
Award for BPC
Piramal All India Kaizen Competition 2017-18 For Automation Of Kaizen
GOLD Winner For Outstanding Export Of Finished Plastic Goods By Plastindia Foundation
25
Awards from Customers
Top Exporter of Engineering Components.
Award won consistently from 2005 – 2019
Awarded for design of the Sanofi AllStar Pen
Award for two years of supplying Shellpak with 100% product quality
26
Consumer Segment Home Furnishings Business Toys Business
Our capabilities in Consumer Segment
Our Forte in Consumer Segment
Global Quality
End to End Solutions
High Consistency in production standards and with global quality norms
Product development capabilities from concept to final product Expertise in decoration & post assembly facility
Large Volume Manufacturing Complex Plastic engineering capabilities with deep understanding of raw materials
Environment Friendly
Timely Execution
Highly compliant with global norms on social and environmental norms
On time delivery by managing an efficient supply chain across all stages of production and final shipment to customers across the globe
28
Home Furnishings Business
Proven execution with our major home furnishing client
Home Furnishings Major is our largest customer
Long Standing Relationship
Associated with the Home Furnishings major as a plastics supplier since 2004
Supplier of Choice
Over the years have Evolved as a Trusted Supplier of plastic products
Scale Up
Scaled up from 18 SKU’s in FY17 to supplying ~48 SKU’s currently
Growing Business
Started with a value of Rs. 1cr and currently have orders worth more than ~Rs. 200crs
Dedicated Facility
Global Suppliers
Set up a dedicated EOU facility to serve the requirements of the Home Furnishings Major with more than 46 machines
Supplies across the Globe to different segments: Kitchen, Children’s, Cooking & Eating, Organizing & Storage
29
Toys Business
Toys Segment
About Spin Master Added Spin Master as our 1st client in Toys Business. Spin Master is a leading global, diversified, multi-platform and highly innovative children's entertainment
company and is regarded amongst the top toy
companies in the world
Business Potential The Toys segment possesses huge growth opportunities
Order Flow ❑ Shaily received first order from Spin Master during
Q1FY20
❑ Initial shipments were made in Q3FY20
❑ We expect to further ramp up this business in FY23
Quality Shaily manufactured Children's Products comply with the highest international standards
Scope of growth in Toy Industry
The Global Toys market is expected to gain strong momentum in the coming decade
Trend The top toy companies are focusing on developing new products, mergers and acquisitions, as well as partnering with local or regional players, to optimise their offerings.
Opportunity for Shaily
❑ Increasing children’s programs and TV channels
are expected to drive demand for toys smarter
becoming
toys
❑ Baby
designed
specifically for learning purposes
❑ Global toy companies are anticipated to diversify outsourcing to India, seen as the alternative manufacturing hub
❑ Products quality comply with
the highest international standards, making us supplier of choice across the globe
30
Personal Care
Our Personal Care Clients & Services
Servicing global FMCG majors such as Unilever and P&G since early 90s
Products Manufactured
• Primary Packaging for
cosmetics
• Primary Packaging for Vicks • Razor handles for Gillette • Trigger Sprays & Pumps
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
32
Healthcare Segment Pharma Devices Pharma Packaging
Our capabilities in Healthcare Segment
Our Forte in Healthcare Segment
Drug Delivery Devices
Primary Packaging
-
Contract Manufacturing IP Related Product Development
-
Dedicated Facility In-House Research & Development Division
Quality & Compliance
34
Drug Delivery Devices
One of the leading Injection Molding Companies in Medical Devices field Globally
Our Value Proposition
Manufacturing of complex precision components and assemblies requiring stringent quality and tight tolerances
Comprehensive Design Review
We have the expertise in assisting clients with Compliance & Regulatory filings
Our vision is to design, develop and manufacture high quality & cost effective healthcare devices in order to customers’ increase competitiveness
our
Ventured into devices segment in early 2000 and today are one of the few suppliers globally. Manufacture products like DPI’s, Pen Injectors, and Primary Packaging
Collaborative Tool Design & Manufacturing
Innovative Assembly Solutions
Efficient Supply Chain
35
Drug Delivery Devices
Maxim
Protean
Axiom
Toby Auto-Injector
Tristan Auto-Injector
Premium reusable / disposable pen injector
Cost-effective disposable / reusable pen injector
Fixed-dose pen injector
1.0ml – 3.0ml PFS & Cartridge based auto-injector
0 – 80 units insulin / GLP-1 / alternate therapies
Improved usability: low dose dial extension and low injection force
0 – 60 units insulin / 1.8mg and 3.0mg liraglutide / abaloparatide
Teriparatide / PTH / FSH
¼in – 1in needle (subcutaneous and intra-muscular)
Non-priming
High performance, robust design with low complexity
1.0ml – 3.0ml PFS and cartridge based auto-injector ¼in – 1in needle (subcutaneous and intra-muscular) Automatic needle insertion High performance, robust design using torsion spring
36
Drug Delivery Devices – New Order
First Non-European INSULIN PENS
❑ Equipped world’s first Insulin Pen that is made up of 100% plastic
components
❑ Pens were designed to meet UL & FDA approvals
❑ Pens are ISO 11608 1,2&3 certified
❑ Shaily is one of the very few manufacturers of Insulin pens in the World
today
❑ Shaily in association with IDC designed & engineered an insulin pen for
Wockhardt
❑ Post Wockhardt success, Shaily started manufacturing Insulin pens for Sanofi
❑ These are marketed by Sanofi as “AllStar pens”
37
Primary Packaging
Our Capabilities
Our Competitive Edge
Superior Protection for Active Pharmaceutical Ingredients
Value Addition through Expertise in Materials, Manufacturing, Quality and Regulatory Compliance
Solid Dosage Forms
Liquid Dosage Forms
Specialty Packaging
High end vision system for bottles and closures
Safer Design with Shaily CRCs
Type III Drug Master Files
US Pharmacopeia Standards
38
Our Healthcare Clients
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
39
Healthcare segment – Way Forward
Industry Growth
Increasing demand for pharmaceutical devices & packaging products due to rising geriatric population, growing chronic diseases, increasing number of diabetic patients, etc.
Growth Drivers
Expansion of the generic market, technological advancement & strict government regulations for conventional packaging are major factors that drive market growth
Building Strong Relationship
Our key partners for device development in the UK & Taiwan continue to build upon their capabilities to ensure that they can aid Shaily in the successful & sustainable development of next generation platforms.
Developing our R&D
Our ability to develop IP & our own pen injector platforms are finally paying off We have a total of 5 pen injector platforms for various molecules today and are working towards developing an auto injector
End-Market
Capabilities include supplies to ophthalmic brands, skin care brands & CRC and specialized packaging applications
40
Automotive & Engineering
Automotive & Engineering Business
At Shaily our efforts in the automotive segment is geared towards light weighting the vehicle
Automotive Applications in the turbo chargers of high-end luxury cars
Engineering Plastics Manufacturing high value-added products from ultra- high-performance engineering plastics
Unique Molding Process Proprietary molding process to manufacture components from Torlon and PEEK
Tooling Years of expertise in designing and developing moulds, with a focus on mould flow analysis and design for manufacture
Assembly Solutions Complete molding and assembly solutions with manual, semi-automated and fully automated processes to reduce cost and promote quality
Metal to Plastic Conversion Outstanding solutions to replace metal with high strength plastic, resulting in greater productivity and cost savings
42
Our Automotive & Engineering Plastics Clients
Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only
43
Steel Furniture Carbon Steel Furniture
Building New Capabilities and Diversity in Orderbook
New Carbon Steel Facility at Halol
Newly Added Business Segment
❑ Received confirmation for manufacture & supply of Carbon Steel
products from Swedish Home Furnishings Major in Q1FY19
❑ Signifies immense faith placed by the customer in our capabilities
and execution skills
Facility Commissioned at Halol, Gujarat
❑ Investment of Rs. 55 Crs.
❑ Phase 1 plant is built in 70,000 sq ft area (total land of
the facility is 8L sq ft
❑ 600 tons of RM steel processed / annum
❑ Started commercial production in Q3FY21
Order Details
❑ Order for 6 new products which has scope to grow in future
❑ Estimated sales value of the order is over Rs. 100 Crs.
Glimpse of our Carbon Steel Products
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Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
State-of-the-Art Manufacturing Facilities
7 Facilities with over 180 molding machines ranging from 35 tons to 1,000 tons
Rania
Halol
GUJARAT
Rania
❖ Export Oriented Unit ❖ Pharma (Dedicated ISO Class 8 clean
room manufacturing facility)
❖ Others
Halol (Existing)
❖ Automotive & Engineering
Halol (New)
❖ Carbon Steel ❖ New Plastic Facility under construction
Disclaimer: Maps 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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We are focused on Sustainable Development
We believe operations positive Planet and People
in Business that have a the
impact on
Our Goal is to constantly improve our Processes in reduction in power, water and other natural essential resources
in a way that results
forms
Sigma
Lean a significant part of our in strategy improvement across Business landscape
resulting
SOCIALLY AND ENVIRONMENT RESPONSIBILITY IS OUR DNA
We have also been successful in being able to convert products manufactured from virgin materials to both recycled plastics as well as bioplastics
In 2017, we were able to use more than 50% of our energy requirement from Renewable sources
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Board of Directors
Executive Chairman
Mr. Mahendra Sanghvi
Whole Time Director
Ms. Tilottama Sanghvi
Managing Director
Mr. Amit Sanghvi
Executive Director
Mr. Laxman Sanghvi
Independent Director
Mr. Milin Mehta
Independent Director
Dr. Shailesh Ayyangar
Independent Director
Mr. Ranjit Singh
Independent Director
Mr. Samaresh Parida
Independent Director
Mrs. Sangeeta Singh
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Strong Credit Rating*
LONG TERM BANK FACILITIES
Rs. 283 Crs.; enhanced from Rs. 243.17 Crs.
CARE A; Outlook: Stable
Rating Action: Reaffirmed
SHORT TERM BANK FACILITIES
Rs. 35 Crs.
CARE A1
Rating Action: Reaffirmed
Long and established track record in the plastic injection molding business along with experienced Promoters
Growth in Total operating income on the back of increased volumes & higher exports
Sustainable healthy operating margin along with strengthening leverage and debt coverage indicators
New business confirmations from existing clients along with addition of marquee clients across diversified industries
Sustainable healthy operating margin along with strengthening leverage and debt coverage indicators
*Updated as on 7th November 2023
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Our Risk Mitigation Strategy helps us Grow
1
2
3
Revenue Growth
Risk We are a B2B player and are dependent on the success of our customers products in end products as well as Global Economic Environment
Mitigation Strategy: We have diversified our product portfolio across multiple customers, multiple SKUs and multiple business segments
Labour and Manpower availability
Risks We have faced challenges in terms of Labour and Manpower affecting production schedules
Mitigation Strategy We have increased the mix of permanent labour and manpower in all our facilities. Further we have hired technical Manpower from ITI
Raw Material price volatility
Risks Volatility in prices of Raw materials can create volatility in Margins
Mitigation Strategy We have a raw material price pass through with all our customers. The price pass through mechanism is varied across customers
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Our Way Forward is… Clear !
Revenue Uptick
Sustained uptick in Revenue based on New business confirmations, addition of new clients and increased contribution from New business segment
Sustainable EBITDA Margin
EBITDA margin should be sustainable on annual basis on back of higher utilizations in existing facilities and increasing contribution from Healthcare segment
Vast Experience and Capabilities
Varied manufacturing experience across multiple segments, long standing Global relationships, complex engineering capabilities and consistent delivery, we are a highly competent Manufacturer
Increased Healthcare Revenue
Expect 2-3x revenue growth from Healthcare segment on back of faster penetration within existing and new clients as well as large pipeline of products
Uptick in Profitability
Limited investment in capex, faster capacity utilization in Carbon Steel business and Healthcare business to lead to an uptick in Return ratios and profitability
Benefit under Make in INDIA
Global majors to increasingly outsource manufacturing to India and create alternate manufacturing hubs
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Contact
Company :
Investor Relations Advisors :
Shaily Engineering Plastics Ltd. CIN – L51900GJ1980PLC065554
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285
Mr. Sanjay Shah, Chief Strategy Officer & Chief Financial officer sanjay@shaily.com
www.shaily.com
Mr. Shogun Jain / Mr. Deven Dhruva shogun.jain@sgapl.net / deven.dhruva@sgapl.net +91 77383 77756 / +91 98333 73300 www.sgapl.net
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