Shakti Pumps (I) Ltd India's Largest Manufacturer of Stainless Steel - - PowerPoint PPT Presentation

India's Largest Manufacturer of Stainless Steel Pumps & Motors An ISO 9001‐2008 Certified

Shakti Pumps (I) Ltd

Shakti Pumps has been conferred with ECGC – Dun & Bradstreet INDIAN EXPORTER’S EXCELLENCE AWARD 2015 under the category - BEST FOCUS PRODUCT EXPORTER

"Corporate Excellence Award at National Conclave ‘Make In India', under the category of Excellence in the Field of Industry. The award was handed over by Honorable Union Minister of Home Affairs Shri Rajnath Singh to the company Chairman and Managing Director, Mr. Dinesh Patidar at a glittering ceremony in the capital New Delhi on 24th dec 2014.

OVERVIEW

Started as SSI unit in 1982 at by Patidar Family to manufacture Submersible Pumps An Energy efficient high performance pumping solution company, First in India Headquartered in Pithampur near, Indore, the commercial capital of MP, Having two manufacturing facilities at Pithampur DTA and SEZ, most developed Industrial Area of MP Designs and manufactures Stainless Steel Submersible Pumps, Motors, Solar Pumps, Industrial Pumps, Openwell Pumps, Monoblock Pumps and Associate Control panels, etc. Products have applications in Ground Water Supply, Irrigation, Pressure Boosting, Industrial Applications, Fire Fighting Systems, Pumping Applications for Home, Hospitality Industry, etc. Installed Capacity 500,000 units PA, a wide range (0.5 HP – 250 HP) of Submersible pumps & Motors, Centrifugal Pumps (100 to 300 mm) with 1200 variants 17 Branches across India, Network of 500 dealers in 13 states First Indian pump manufacturing company with the ‘BEE’ Five‐star rating, A Star rated Export House with international presence in 100 nations An ISO 9001:2008, Certified for ISI mark, Certified by the Bureau of Indian Standards, also has URL, Veritas, CE Mark, etc. Listed on both the Stock exchange BSE and NSE

Journey over the years

1982 ‐ Started as SSI unit by Patidar Family 1985 ‐ Mr Dinesh Patidar (CMD) joined the company with a vision to manufacture world class pumps 1986 ‐ Commencement of full – fledged manufacturing unit 1989 ‐ Received BIS Certificate 1995 ‐ becomes a public limited company and got listed on BSE 1996 ‐ Started manufacturing of Stainless steel Submersible Pump in separate unit 1998 ‐ Received ISO 9001:2000 certification, focus on direct exports 2003 ‐ Received quality marking system ‘CE mark’ Exports extended to 20 countries 2006 ‐ Received One‐Star‐Export House Status, Re‐certification ISO 9001:2000 2007 ‐ SAP Implementation Started across all verticals, Geographical reach upto 50 Countries 2008 ‐ Put Up a Separate SEZ Unit, expansion of main DTA UNIT, total capacity of 4.5 Lacs Pumps 2009 ‐ First company to received 5 Star Rating from BEE in pumping segment 2010 ‐ Introduced New Booster Pumps and Resin Cooled Motors, Widened pump range up to 250HP 2012 ‐ Completion of Separate Booster Pump Unit, Launched Solar Pumping Solutions 2013 ‐ Awarded as "Best SEZ Exporter" – ECGC & “Outstanding Pump Company” – EPC Award 2013 ‐ Mr Amitabh Bachchan, super star of millennium becomes the face of our brand 2014 ‐ EEPC India Regional Award for the year 2012‐13 for outstanding export performance 2014 ‐ Corporate Excellence Award at National Conclave ‘Make In India', for Excellence in Industry 2015 – ECGC ‐ Dun & Bradstreet INDIAN EXPORTER’S EXCELLENCE AWARD 2015 ‐ BEST FOCUS PRODUCT EXPORTER 2015 – New full flash Industrial Segment Launched

Shakti Pumps was promoted by reputed Patidar Family headed Shri. Dinesh Patidar

• Shri. Dinesh Patidar ‐ CMD, aged 52 years is a commerce graduate, incorporated company 3 decades
• ago. He has gathered expertise in R & D and put lot of efforts to adopt the latest technology world
• ver to make the quality product compatible with the International standard. He is the person who

conceived the project and started manufacturing of Stainless Steel Pumps in India with very limited

• resources. With his constant efforts today Shakti has presence in 100 Countries with production

capacity of 500000 pumps per annum.

KEY Management

Key Team Members

• Mr. Dinesh Patidar

Chairman & Managing Director R & D, Production and Sales

• Mr. Sunil Patidar

Executive Director : Administration

• Mr. Ramesh Patidar

Executive Director & Head International Marketing

• Mr. BR Patidar

Director – FICO : Finance & Accounts

• Mr. Ankit Patidar

Vice President – Sales & Marketing

INFRASTRUCTURE

SEZ Benefits Exemption of custom duty on import and export Exemption from entry tax on raw material No service tax by the service providers DTA suppliers will get all the benefits of exporters Exemption from Central Excise Duty on all goods SEZ unit can open an EEFC a/c for import

• bligation with the proceeds of export.

Plants An infrastructure, at par with the best in the world, one of the most advanced assembly line. Tool room with high efficiency equipments and with AutoCAD designing facility Die‐ shop equipped with sophisticated CNC machines, Wire cut, Spark erosion machine, Milling machine and other Die finishing facilities SAP Environment – Machineries imported from Japan, Germany and USA Divided into diverse sections where specialized stages of manufacture are given shape Manned by highly efficient manpower Plant Location Installed capacity DTA Unit Plant at Plot No. 401,402‐413, Sector III, Pithampur – 454775 District Dhar (Madhya Pradesh) 3,50,000 Units SEZ Unit Plot No. F‐14 & 15, Sector III, SEZ, Pithampur – 454775 District Dhar (Madhya Pradesh) 1,50,000 Units

Products Par Excellence

Vertical Multistage Centrifugal Pumps Horizontal Multistage Centrifugal Pumps Submersible Pumps Submersible Pumps Submersible Motor Submersible Motor

Domestic Booster Openwell Pump Hydro Pneumatic Pump

Products Par Excellence

PUMPING SOLUTION

Submersible Pumps Stainless Steel Pumps, under the brand name “SHAKTI” Ranging between 0.5 HP To 250 HP, more than 1200 models Stainless Steel construction of main hydraulic components impeller, diffusers and Bowl. Electric submersible pump sets of modular design, suitable for underwater

• perations.

Submersible pumps with energy‐ efficient duty points ranging from 0.1 to 280 m3/h. A BEE Rated 5 Star pump, Standard dimensions according to ISO standards Submersible Motors Stainless Steel construction of motor shell under high precision, Suitable for 220V/380V, 415V/50Hz, 220V/50Hz, 220V/60Hz, 380V/60Hz Uniquely positioned as one of the overriding submersible electric motor supplier Needs no special maintenance and consumes low electricity. very high efficiency and designed for high voltage fluctuations. follows the NEMA standards for manufacturing of SS Motors very easy to dismantle & repair and has no priming & suction problems temperature protection When the temperature become too high.

PUMPING SOLUTION

Vertical Multistage Centrifugal Pumps : A non‐self‐priming, vertical multistage centrifugal pump. In‐line design enables the pumps to be installed in a horizontal one‐ pipe system where the suction and discharge ports are in the same horizontal plane and have the same pipe dimensions. Horizontal Multistage Centrifugal Pumps : most suitable to provide peak pressure to every water fixture having pre‐set pressure to avoid any hesitation to customer at the time of installation Open‐well Pump

• Stainless steel motor body, Carbon bush bearing.

Maintenance free water lubricated bushes. Easy installation, foundation, installation platform not required. Replaceable wearing parts, hence longer life Low power consumption and Easy maintenance Can be placed at the bottom of the well

SHAKTI SOLAR PUMPS :

High Profitability and Reliability leads to Prosperity high efficiency Solar Pumps useful for Irrigation, Industry, Remote Location, etc. Non‐dependent on conventional energy (fuel & electricity) Easy to operate and maintain, No recurring expenses Long operating life 20‐25 Years, Highly reliable and trouble‐free performance Eco‐friendly, Accessibility in remote areas Un‐interrupted supply for irrigation during day time The reasons behind encouragement of the Indian solar sector are: India has very high solar isolation, A huge electricity demand supply gap, Lack of power grid availability, Increasing expenses and unreliable electricity supply, Availability of more efficient solar technologies and Government Support Applications Irrigation, Desert Control, Animal Husbandry, Salt Pans Water Supply for Sea Island, Water treatment Projects, Industrial plants Apartments / Bungalows, Small Resorts, Restaurants Domestic Water supply, Hospitality services, Malls, Hospitals, Hotels, etc.

COMPETITIVE ADVANTAGE

Shakti’s USP

Consumes 40% less energy Lower Maintenance, Installation & Op Cost Compatible with PVC/HDPE pipes Lightweight compare to any CI Pump, Higher evacuation capacity compare to CI Pump Long lifespan of 10 Yr compare to 5 Yr of CI

After Sales Service

excellent service & customer delight through teamwork consistent improvement in Quality Management System. More than 500 Domestic dealers supported by branches and service centers. Reliable & Fast service Always seek the views/suggestions

• f customers to serve them even

better

PRODUCT USP & AFTER SALES SERVICE

Domestic:

Domestic business divided into Retail, Solar and Industrial segment Year 2014‐15 domestic revenue grown by almost 60%, all three segment done really well, achieved highest ever domestic sales having network of 500 dealers, target to reach upto 800 by 2017. Creating a pan‐India proximity to customers, having 17 branches across India, target to reach 30 by 2017, Widening exclusive Dealers network to increase the shop share, Amitabh Bachchan as a Brand Ambassador for creating visibility and change perception across India, Appointed local representatives under each dealer responsible for grassroots product marketing and increasing the dealer’s off take creating more awareness to end users in rural areas via: Rath promotion, Mechanic Meet, Kissan meet, Road shows, Demo at Farm Houses & Dealers Meet Participations in various exhibitions, Kisan Melas, Industry Events, Government events, etc.

GEOGRAPHICAL OVERVIEW

GEOGRAPHICAL OVERVIEW

International:

Traditionally high growth area and high margin zone Expanded International network to more than 100 Countries, Has incorporated two subsidiaries in UAE & USA to cater highly potential GULF and US market Focusing on Deep Penetration and Country share Strategy Diversified from Gulf to other regions, focus shifted from Gulf to America, Europe, Africa and Asia Creating world over presence by taking part in International exhibitions like EIMA – Italy, Mostra Covengo – Milan, NGWA – United States, BIG 5 – UAE, etc. Exploring more potential areas like USA, South America, Africa, etc Expanding International Marketing team and Dealers Network 14‐15 export down due to major crisis in Gulf region, Ex gulf Shakti has grown by 20‐40% in all the regions

FINANCIAL HIGHLIGHTS

INR in Millions

Particulars 2012‐13 A 2013‐14 A 2014‐15 A Share Capital 152.44 152.44 317.43 Reserves & Surplus 948.30 1176.15 1776.72 Money received against Share Warrant 0.00 30.00 Total Shareholders Fund 1100.74 1358.59 2094.15 Long Term Borrowings 299.51 264.76 165.78 Short Term Borrowings 625.44 865.04 855.66 Total Loan Fund 916.77 1129.80 1021.44 Trade Payables 209.77 268.14 265.41 Other Current Liabilities 101.56 132.19 86.97 Short Term Provisions 94.41 159.04 187.47 Total Current Liabilities 405.73 559.37 539.85 Deferred tax Liabilities 45.30 57.51 62.55 Total Liabilities 2468.55 3105.27 3718.01 Net Block 802.69 895.78 1059.72 Capital WIP 0.00 15.43 46.10 Non Current Investments 5.54 5.54 6.27 Long Term Loans & Advances 113.95 188.72 102.49 Total Non Current Assets 922.18 1105.47 1214.58 Inventories 658.41 633.12 824.22 Trade Receivables 641.22 936.28 1165.49 Cash & Bank Balances 43.90 65.93 65.76 Short Term Loans & Advances 144.01 194.50 249.61 Total Current Assets 1487.54 1829.83 2305.09 Misc Exp 58.83 169.97 198.34 Total Assets 2468.55 3105.27 3718.01

FINANCIAL HIGHLIGHTS

INR in Millions

Particulars 2012‐13 A 2013‐14 A 2014‐15 A REVENUE Sales Domestic 721.11 890.38 1420.89 Sales export 1382.22 2075.15 1564.34 Net Sales 2103.34 2965.52 2985.23 Other Income 65.63 101.89 114.52 Total Revenue 2168.97 3067.42 3099.75 Net RM Consumed 990.97 1307.51 1367.47 Employee Remuneration & Benefits 208.00 254.67 346.68 Manufacturing Exp 66.43 87.55 97.68 Admin Exp 36.26 38.03 62.47 Selling & Distribution Exp 453.15 808.60 621.04 Other Expenses 30.33 20.53 21.90 Total Operating Expenses 1785.14 2516.89 2519.61 Operating Profit (EBITDA) 383.83 550.53 580.15 EBITDA % 17.70% 17.95% 18.72% Depreciation 50.05 67.67 98.23 Profit Before Interest & Tax (EBIT) 333.78 482.86 481.92 EBIT % 15.39% 15.74% 15.55% Less Finance Cost 121.85 125.86 131.67 Profit Before Tax (PBT) 211.93 357.00 350.25 PBT % 9.77% 11.64% 11.30% Less Taxation 27.47 91.85 93.05 Profit After Tax (PAT) 184.46 265.15 257.20 PAT % 8.50% 8.64% 8.30%

INDUSTRY OUTLOOK – DOMESTIC MARKET

Indian pump industry is currently valued at 10000 crore India produced 6 million pumps annually. However, only a small part of these are from national‐level players. CRISIL expects demand for pumps industry to grow at 12‐14 per cent over the medium term About 80% of requirements of submersible pumps are from agriculture sector Agriculture sector used 75 per cent of the water in the country The total electricity consumption by pump industry in India accounts for 27% (As per BEE). Electricity is largely used in agricultural pump sets which generally have very poor efficiency As per BEE estimates Overall electricity savings by replacing 20 million inefficient pumps is estimated at 62.1 billion units annually, Estimated to translate in to the yearly savings of Rs 18000 crores (2011 Report) Energy costs constitute up to 60‐70 percent of an Indian municipality's total cost of pumping water to its residents Domestic players meet an estimated 95 per cent of the country's demand In India, irrigation will be a big domestic demand driver in coming years Water tables are going down every year drastically India’s need for Infrastructure and power generation capacity, supporting organized Pump Industry

• Govt. Initiatives
• Increase in Farm Credit and Implication of Micro Irrigation project
• to replace inefficient conventional pumps with high energy efficient alternatives,

The replacement of existing inefficient pump sets with energy efficient (BEE star labeled) pump sets would unlock the market for large scale investments in this area Replacement potential of 20 Mn inefficient pumps boost the growth of Organized players Replacement of inefficient pumps where water level is fall below the normal level, 10 % of total market Government’s ambitious projects like “Swachchh Bharat Abhiyan, Ganga Cleaning, River connecting, Housing for all, rural electrifications, 6 cr toilets will fuel the sector growth Central Gvot’s ambitious 100000 Solar pumps will also drive the solar segment Government focus on Waste water treatment for Industry, big commercial units will also open the doors for waste water pumping solutions Demands for pumps are expected grow substantially given that the municipal waste disposal facilities of the Country need to modernized Emerging new Opportunities Entertainment Parks, musical and other fountains regularly need high energy efficient Pumps, Malls, hospitals, Hotels, etc. Need for desalination of water is expected to increase in coming years

• Govt. Sector, Indian Railways, Public Health Department, various water Supply boards, generating bulk

requirement of energy efficient Pumps Many state Govt moving towards replacement of inefficient pumps by energy efficient rated pumps

DOMESTIC OPPORTUNITIES

USA Huge market for domestic and industrial pumps The growth in NAFTA will be led by the non‐conventional oil and gas sector Pennsylvania, Texas and other states in the West will expand their production of gas and oil from shale. This will generate very substantial investments in pumps. Asia Development in real estate, Hospitality, tourism, agriculture etc will lead the growth Investment in municipal wastewater treatment and drinking water facilities will also outstrip the other regions More power plants will be built in this region in the next five years than in the rest of the world combined Because of aridity in much of the region, the investment in irrigation pumps will be substantial. Opening up of economy, commercialization Real Estate, tourism, Rapid Construction will lead the demand Europe Western Europe will be a slow growth market characterized a large percentage of replacement pumps and parts for existing plants as opposed to pumps for new plants Eastern Europe will reflect growth in expenditures to meet environmental regulations required for European Union membership. No new facilities in last few years, so demand will be fulfilled by Asian players Africa Huge potential for Indian products, Huge untouched area, African economies are yet to open Dependency on agriculture and mining is high Middle East Very prominent market for Indian quality products, Huge potential once the crisis is over Economically rich with high paying capacity

OPPORTUNITIES IN WORLD MARKET