Corporate Presentation FY 12 TRIVENI ORGANISATION STRUCTURE 2 - - PowerPoint PPT Presentation
Corporate Presentation FY 12 TRIVENI ORGANISATION STRUCTURE 2 Triveni TEIL holds 21.8% of the equity in TTL Triveni Engineering Triveni Turbine Ltd. & Industries Ltd. (TTL) (TEIL) 50% plus one share GE Triveni Ltd. Sugar
2 Triveni Triveni Engineering & Industries Ltd. (TEIL) Sugar Business Sugar Co- generation Distillery Engineering Business Gears Water & Waste Water Triveni Turbine Ltd. (TTL) GE Triveni Ltd. (JV with GE)
TEIL holds 21.8% of the equity in TTL
50% plus one share
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Mysore Corporate Office Manufacturing Facilities Noida Water Treatment Projects
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500 1000 1500 2000 2500 3000 3500
FY07* FY08 FY09 FY10 FY11 FY12
` in millions
Revenue PBIT
FY07* - 12 months period from Oct 06 – Sep 07
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Triveni is in the business of design, manufacture and marketing of customised gears and gearboxes. State of the art design and manufacturing facility at Mysore. Conforms to international standards such
as DIN, API & AGMA - DIN 3 quality assured.
About 60% market share in complete high speed gear market across applications up to 70 MW
capacity and speeds of 70,000 rpm.
Own developed technology for high speed gear boxes upto 7.5 MW. Range above 7.5 MW-62 MW is
manufactured using technology licensed from Lufkin. Indigenously developed 6 MW hydel gearbox.
Renewed the License Agreement with Lufkin for a further period of 12 years with extended product
range and geographies. Full range to be manufactured in Mysore.
boxes for gas turbines apart from gear boxes for mechanical drives like Pumps, Fans and Blowers driven by Electric Motor, Steam Turbine or Diesel Engine.
Singapore, Thailand with the possibility of enhancing territories in the future.
On 22nd July 2011, the company signed the Technology License Agreement for manufacture of niche
engineered-to-order high technology low speed gear applications with Lufkin for four industrial segments viz., Rubber & Plastics, Metals and Steel, Marine and Coal pulverizer application in the thermal power plants.
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FY07* - 12 months period from Oct 06 – Sep 07
605 769 733 1014 1202 1043 146 220 244 345 419 301 24 29 33 34 35 29 10 15 20 25 30 35 200 400 600 800 1000 1200
FY 07* FY 08 FY 09 FY10 FY11 FY12
PBIT Margins (%) ` in millions
Net Sales PBIT PBIT Margins
CAGR 07*-12 SALES – 12% PBIT – 16%
The turnover and profitability year-on-year has been lower due to overall economic and industrial slow down which resulted in deferment of delivery etc. On account of lower turnover, absorption of less fixed overhead resulted in decline in profitability. The share of OEM sales has been lower during the year in comparison to previous year while the aftermarket sales showed an increase. The company entered into a long term agreement with BHEL for supply of gas turbine gearboxes and its foray into low speed applications will be beneficial for the business in the long term.
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Rising Water Demand to double by 2025 from 2000 levels - Growth potential in coming years
Multi-lateral funding actively promoting privatisation and commercialisation of water. Annual estimated market for Water/Waste Treatment is ~ ` 54 billion with an estimated
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – annual estimated water
Substantial new power generation capacities to be added; Largest user of water & waste
Major expansion and capacity additions envisaged in steel, coal etc. – estimated annual
High cost & scarcity of water driving manufacturing industry to have In-house water
Stricter regulations for environmental compliance in terms of effluent and pollution control.
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Technology association with world’s leading technology providers for various products,
One of the widest ranges of products & technologies offered in the Indian Market. Indigenous Product lines include clarifiers, aerators, filters, membrane solutions, de-watering
Over 2000 numbers of process equipments for water & waste water treatment applications,
Undertaken the largest desalination plant for a power plant. Undertaken sewage recycling to boiler feed quality water project. Currently executing the largest plant in the country involving UF for surface water treatment
With the visibility of a fast growing market, WBG expected to grow consistently in future.
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400 668 997 1610 1866 1692 46 105 148 219 232 123 12 16 15 14 12 7 5 7 9 11 13 15 17 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 FY 07 (*) FY 08 FY 09 FY 10 FY 11 FY 12
PBIT Margins (%) ` in millions Net Sales PBIT PBIT Margins
FY07* - 12 months period from Oct 06 – Sep 07
CAGR 06-11 SALES – 33% PBIT – 22%
The turnover & profitability for the current quarter
and full year has been lower than the previous period/s primarily because of delay in execution
Power Sector, being one of the important
customer for this business, has been facing problems in terms of fuel linkages apart from issues such as land, environment etc.
During the year, the company has made a long
term strategic investment by acquiring 25.04% equity stake in Aqwise-Wise Water Technologies Limited, a company registered in Israel, engaged in providing water treatment solutions using proprietary technology. The investment is synergistic to the water / waste water business of the company.
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India's estimated sugar production for Oct 2011- Sept 12 season is ~26.2 million tonnes, an increase of 7%. Average recovery for the state of U.P. for the season 2011-12 was ~ 9.09%, lower than the previous
The estimated total exports during 2011-12 was around 3.3 million tonnes. Even with an estimated
increase in consumption and higher exports during the year, the sugar balance at the end of September 2012 was higher in comparison to the opening inventory levels.
Even though it is early to estimate the country's sugar production for the next season, given the current
climatic conditions etc., the country's sugar production is estimated at ~23.5 million tonnes, which is a decline over last year.
Maharashtra and Karnataka expected to contribute for the overall decline while U.P. estimates an
increase of ~ 15%.
Contrary to downward movement of sugar prices globally, the domestic sugar prices gained significant
movement upward in the July - Sept 2012 quarter on the news flow of lower production in the forthcoming season and continue to remain healthy.
The world sugar surplus is expected to remain high at around 8 million tonnes in 2012-13 also. Even though the global sugar prices touched an all time high in June 2012, on account of overall higher
production by about 10 million tonnes in 2012-13, the sugar prices steadily declined.
14 (Figures in million tonnes)
Closing stock taken as a percent of consumption is one of the indicators of sugar price movement.
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (E)# Opening Stock as on 1st Oct. 4.3 11.0 10.4 4.4 5.0 5.5 5 Production during the Season 28.3 26.3 14.5 18.9 24.4 26.03 24.0 Imports
4.0 Total Availability 32.6 37.3 27.4 27.3 29.4 31.8 29.0 Off-take I) Internal Consumption 19.9 21.9 23.0 21.3 20.8 22.0(*) 22.5 ii)Exports 1.7 5.0 0.02 0.2 2.6 3.3 Total off-take 21.6 26.9 23.0 21.5 23.4 25.3 22.5 Closing Stock as on 30th Sept. 11.0 10.4 4.4 5.8 6.0 5(**) 6.5 Stock as % of Off-take 55.3% 47.7% 19.1% 27.2% 28.9% 22.73% 28.89%
Source: ISMA (*) this include 2.66 lac tonnes of levy sugar pertaining to 2009-10 & prior to that converted into non-levy. (**) as per industry estimates (#) as per company estimates
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Deoband Khatauli Ramkola Chandanpur Sabitgarh Milak Narayanpur Rani Nangal
Major facilities located in cane rich areas
80% cane intensity – fertile and irrigated land Sugar cane catchment area for all sugar units under canal irrigation – both in Western & Central Uttar Pradesh - Lower dependency on monsoon Closer to country’s major sugar consuming markets - better realizations & lower transportation cost Long term relationship with ~ 250,000 farmers Extensive sugar cane development programme – to develop new areas under cane cultivation in our new locations; improving yields of cane across the units
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FY07* - 12 months period from Oct 06 – Sep 07
Triveni crushed 5.12 million tonnes cane at an average recovery of 9.09% during the season which is
higher by 12% in comparison to the previous season. Ramkola recorded the highest recovery in the state of U.P. at 10.29%.
The company has produced 0.465 million tonne of sugar during the season which is higher by 11% in
comparison to the previous season.
The profitability in sugar for the quarter has been significantly better in comparison to previous quarter
due to higher volume sales and better realisation
For the full year, even though the sales volume was more or less same, the price realisation was higher
by 14% which absorbed the increase in the cost of production.
The current year also includes an exceptional charge of ` 789 million relating to differential cane price
The company estimates to crush higher volumes of sugarcane and expects to produce ~ 10% more
sugar during 2012-13 season
FY 07 (*) FY 08 FY 09 FY 10 FY 11 FY 12 Net Sales (` in millions) 7605 8863 12529 14055 13434 14821 PBIT (` in millions) (900) 359 2023 (573) 74 29 PBIT Margins (%) NM 4 16 NM 0.6 0.2 Sugar Manufactured (000 t) 591 580 336 506 420 465
17 Three plants in two sugar units viz. Khatauli & Deoband.
The CERs for the period April 2008 - May 2010 for
Deoband and Khatauli units were transacted and the Company earned revenue of ` 55.6 million. CERs for the period June 2010 – May 2011 were issued in respect of Deoband unit.
Company’s Deoband and Khatauli units are also
eligible to get Renewable Energy Certificate (REC) benefits and have already been registered. Post clarification from Central Electricity Regulatory Commission (CERC), REC issuance shall commence in U.P. as well as for our projects.
The operational period during the 2011-12 season has
been higher due to higher quantity of bagasse transferred to the co-generation plants. The
excellent.
With the increased volume of sugar cane crush
estimated for the 2012-13 sugar season, the co- generation operations are also expected to generate and export more power.
1339 1174 948 1467 1171 1293 449 476 201 270 366 499 34 41 21 18 31 39 5 10 15 20 25 30 35 40 45
100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
FY07 (*) FY 08 FY 09 FY 10 FY 11 FY 12 PBIT Margins (%) ` in millions Net Sales PBIT PBIT Margins FY07* - 12 months period from Oct 06 – Sep 07
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One of the largest single stream molasses
based distillery in the country and is located at Muzaffarnagar.
Ideally located to use the molasses from two
The distillery sales for the full year have been
higher by 66%.
The company achieved its highest production
from distillery during the current year.
With a proper mix of ENA, Ethanol and
Rectified spirit sales, the company could
litre during FY 12 as against ` 28.70 during the previous year.
With the estimated higher sugarcane crushing
for the coming season, the molasses production would also be high resulting in higher alcohol production.
182 737 539 889 762 1264 23 177 92 81 90 272 13 24 17 9 12 22 5 10 15 20 25
100 200 300 400 500 600 700 800 900 1000 1100 1200 1300
FY07 (*) FY 08 FY 09 FY 10 FY 11 FY 12 PBIT Margins (%) ` in millions Net Sales PBIT PBIT Margins FY07* - Period from Apr 07 – Sep 07
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20 Sep FY 12 Sep FY 11
GBG WBG
50% plus one share
Board of Directors approved the demerger of Turbine Business from Triveni
TEIL is holding 72 million equity shares of ` 1/- each in TTL - 21.8% of the total
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Mumbai Pune Kolhapur Latur Hyderabad Vijaywada Bengaluru Allahabad
Manufacturing Facility Marketing and Service Centres
Raipur Nagpur Noida Ahemdabad Kolkata
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Power Shortage Industrial Growth Manufacturing Growth Replacement market Power Rates Kyoto Protocol
Premium on shorter deliveries. Purchase decision based on high levels of technology, efficiency & lower life cycle cost. Price sensitive market. Strong servicing capabilities and lifetime relationship with the customer is expected. Robust designs, typically suited for the Indian market are in demand.
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Gap between power requirement and generation getting wide
Costly fuel source to influence replacement of DG to TG sets; thrust on co-generation. Focus on waste heat to energy and non-conventional energy sources like solar etc. Current industrial power consumption – generation gap to be bridged – focus on
Additional power requirement in the country - incentivisation for surplus generation
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Cater to wide range of customers across segments like sugar, paper, co-gen, textiles, pharma,
Consistently upgrading the product range and efficiency. The current range of product up to 30MW. Manufacturing since 1968; over 2,500 turbines manufactured and sold since inception. Highly efficient turbines with indigenously developed tapered twisted blades. Fully integrated operations with strong Engineering & Design team. Facility equipped with state of the art equipments and machine tools best in the industry. Strong in-house R&D team and tie-ups with leading international design and R&D establishments. In-house learning centre – to create pool of technical team for design, engineering and servicing. Consistently maintained dominant market share. Commands market leadership for range up to 30
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An extensive network of 13 Service centres. A strong team of 185 service professionals. Reaching the customer site within 24 hours of service call. Currently over 900 turbines serviced annually.
Full speed vacuum balancing tunnel for balancing turbines, compressors/alternators –
Refurbishment & Residual Life Assessment of all makes of turbines, compressors etc.;
Customization & upgradation of old turbines for both industrial and utility segments in
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All financials are for April-March period for respective financial year
2783 4680 4845 4542 5256 6135 6319 373 916 1135 978 1140 1289 1350 13 20 23 22 22 21 21.4
CAGR 06 06-12 12 SALES – 15% PBT – 24%
28 During H1 FY 13 exports sales have shown a growth of 68% year on year while the export order inflow has been strong during the period under review. The mix of product and after-market has improved significantly in H1 FY 13 at 80:20 from 85:15 during H1 FY 12.
(Figures in ` million)
Q2 FY 13 July - Sept 2012 H1 FY 13 Apr - Sept 2012 Q2 FY 12 July - Sept 2011 H1 FY 12 Apr - Sept 2011 Net sales 1,797 2,912 1,819 3,431 EBITDA 454 756 409 777 EBITDA Margin 25.3% 26.0 22.5% 22.6% Depreciation & Amortisation 31 61 28 56 PBIT 423 695 381 721 PBIT Margin 23.5% 23.9% 20.9% 21.0% Interest 8 22 23 47 PBT 415 673 358 673 PBT Margin 23.1% 23.1% 19.7% 19.6% PAT 281 455 243 456 PAT Margin 15.6% 15.6% 13.4% 13.3%
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(Figures in ` million)
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Triveni formed a Joint Venture with GE for the turbine business on 15th April 2010. GE Triveni Ltd. (GETL)
headquartered in Bengaluru, will design, manufacture, supply, sell and service advanced technology steam turbines in India in the range above 30-100MW range for power generation applications in India and globally.
GETL to get technology and on-going R&D support from GE and TTL and will use TTL’s Bengaluru facility for turbine
manufacturing.
The vision of both partners is to make GETL a global leader in above 30—100 MW segment. TTL holds one extra share with both parties having equal representation on the board; GETL a subsidiary of TTL. GETL became operational after fulfilment of all closing formalities including signing off all ancillary agreements
and subscribing to the share capital of GETL by both the partners on 3rd of November 2010.
The operations of the joint venture with GE are in line with our expectation. All key managerial personnel are on
board and the technology transfer is progressing as per schedule.
GE Triveni Limited started bidding both in the domestic and international markets - the marketing teams of both
GE and Triveni are working closely on the opportunities in their respective markets.
GE Triveni executed its first order for 35 MW from a domestic customer.
31 CN Narayanan Triveni Engineering & Industries Ltd.
cnnarayanan@trivenigroup.com Gavin Desa/ Rishab Barar Citigate Dewe Rogerson Tel: +91 22 66451238 gavin@cdr-india.com / rishab@cdr-india.com
Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking
types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry. Further, this presentation may make references to reports and publications available in the public domain. Triveni Engineering & Industries Ltd. makes no representation as to their accuracy or that the company subscribes to those views / findings.