Hindusthan National Glass & Industries Ltd.

Transcription

1 Hindusthan National Glass & Industries Ltd.

2 2 Disclaimer Certain statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forwardlooking statements. Important developments that could affect the Company s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Hindusthan National Glass & Industries Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

3 3 Table of Contents Industry Snapshot Company Overview Business Overview Operating and Financial Performance Annexures

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5 5 Global Packaging Industry As per World Packaging Organization, the global packaging industry is expected to be USD 597 billion by 2014 with ten year historical growth at ~ 3.1% CAGR Projected to grow at ~ 3.5% CAGR in the medium term mainly driven by growth in emerging markets (Asia Pacific region) Geography End-User 5% 13% 27% 34% Europe Asia, Oceana, Africa & ME North America South & Central America 9% 11% 15% 52% Liquor Beer Food Pharma Others 34% Source: Owens-Illinois, Inc. - Investor presentation, March 2010

6 6 Packaging Industry in India At USD14 bn, Indian packaging industry has been growing at ~ 15% over the last few years Expected to accelerate further with increasing urbanization, growing middle class and expansion of modern retail Indian glass container market is estimated to be around USD 1.1 bn and is growing at the rate of ~10% p.a. Indonesia India Brazil China World glass container per capita consumption Entry barriers in Indian Glass industry is owing to capital intensive nature Top 3 players are HNG, HSIL and Piramal Glass Low per capita glass container consumption of 1.5 kg in India as compared to other countries (refer chart alongside). Strong economic drivers for end-user segments (liquor, beer, pharmaceuticals, food, cosmetics etc.) Japan Mexico USA UK Spain France South Korea (Kg)

7 Cases in Millions Cases in Millions 7 End-User Industry Overview Liquor Soft Drinks 19,731 58,788 66,040 Food 93, HNG Supply IMFL Industry Volumes Figures in MT HNG Figures in MT HNG Beer Liquor and beer industries are the main users of glass containers with 65% share, followed Pharmaceuticals by food 12%, pharmaceuticals 10%, carbonated drinks 8% and cosmetics & others 95, account for the remaining 79, HNG Supply IMFL Industry Volumes Favourable demographics and rising disposable incomes driving consumption across end-user industries in India * Figures in MT HNG

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9 9 Company overview Dominant position Consumption Ancillary Leader in the container glass segment Current Installed capacity in India is 4,395 TPD (including Naidupeta) and Germany 320 TPD; Planned capacity expansion to ~4,820 TPD in India by FY14 Diversified end-user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others Pan-India Presence Manufacturing facilities in 6 locations across India, Facility at Naidupeta shall start by June 12 Additionally, International manufacturing footprint through 100% subsidiary HNG Global GmbH, Germany Competent Management Strong Management with vast experience and huge domain knowledge Successful history of acquiring loss-making units and turning them around Well established customer relations Six decades of presence in the industry has enabled the Company to develop long standing customer relationships Strong Financials In a capital intensive industry, the Company has been able to maintain a robust Financials

10 10 Corporate Milestones First 30 TPD plant commissioned in 1952 Second 90 TPD plant commissioned in 1964 Acquired 2 plants (Rishikesh & Pondicherry with total capacity 700 TPD) from Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Renamed the company as Ace Glass Containers Ltd. Ace Glass Containers Ltd. merged with HNG Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany Capacities expanded to 1,100 TPD Acquired 320 TPD loss making glass division from Larsen & Toubro at Nashik Established float glass plant in Halol under HNG Float Glass Ltd. Acquired 180 TPD Neemrana unit of Haryana Sheet Glass Commissioned 650 TPD furnace at Nashik on 28 th February Our 7 th plant at Naidupeta (650 TPD) shall begin commercial production from June 2012

11 11 Corporate Structure Hindusthan National Glass & Industries Ltd. - Consolidated net revenues: Rs. 15,678 millions. - Standalone net revenues: Rs. 15,525 millions. Glass Equipment (India) Ltd. 100% 100% Quality Minerals Ltd. 100% HNG Global GmbH 47.4% HNG Float Glass Ltd. (HNGFL) Net revenues: Rs. 299 millions. Capital Goods & Spares Supplier to Glass Industry Net revenues: Rs. 10 millions. Mineral Supplier to Glass Industry Acquisition of assets of Agenda Glas AG Net revenues: Rs. 2,948 millions. Manufacturer of Float & Processed Glass Note: 1. All revenue figures are for FY HNG Global GmbH was acquired after March 31, 2011.

12 12 Pan India Presence HNG, the largest container glass manufacturer in India has a manufacturing Bahadurgarh Rishikesh capacity of 4,395 TPD (including 650 TPD Neemrana Delhi of Naidupeta) Multi-locational production facilities Vadodara Kolkata Rishra enable the Company to: Lower landed cost to customers Mumbai Nashik Hyderabad GEIL Provide JIT supplies Cater to key customers across Bengaluru Naidupeta Chennai Float Glass Unit Container Glass Plant Locations Marketing Offices India Puducherry Upcoming Greenfield Mega Project Commenced Brownfield Mega Project (Nashik) Note: The total capacity is expected to grow to ~4,820 TPD by FY14 in India.

13 13 Strong customer relationships LIQUOR BEER FOOD SOFT DRINKS PHARMACEUTICALS Caters to customers across segments

14 14 HNG s Share of Top 10 Customers HNG's Share in the Total Requirement of Top 10 Customers in (%) United Spirits Limited United Breweries Limited Pernod Ricard India SAB Miller India Allied Blenders & Distillers Coca Cola India Pepsico India Bajaj Corp Limited Shiva Distilleries John Distilleries Limited

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16 16 Expanding Scale Location Capacity as at March 2012 Expected Capacity as at March 2014 To be Commissioned in Present capacity of c. 4,000 TPD with proposed expansion to c. 5,100 TPD by FY14 New Furnace(N) / Rebuild (R) RSR Furnace RSR Furnace RSR Furnace R BGR Furnace BGR Furnace BGR Furnace NMR Furnace R RSK Furnace RSK Furnace PDY Furnace NSK Furnace R NSK Furnace Started on 28 th February, 12 N Naidupeta N Gardelegen Acquired in May TOTAL 4,065 5,140

17 17 HNG Global GmbH, Gardelegen, Germany One of the most modern production facilities in Europe, with 320 tpd capacity. HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to all key raw materials. The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. Germany is the largest market for Container Glass in Europe, with a share of ~ 20%. Company s technological edge is planned to be back pedaled in HNG s Indian operations, as Germany is always considered ahead in terms of technology. The Finished-ware quality in Germany is of superior standards than in India and it will help us embark the upward quality journey in India.

18 18 Business Strategy Capacity Expansion Acquired and turned around four loss making units over the last nine years Planned expansions to take total capacity to ~ 4,820 TPD at Indian level by FY14 Expanding product portfolio Presence across key user industries liquor, beer, pharmaceuticals and food Capitalizing on opportunities in the high growth float glass industry Adapting new technology Backward integration Introduced Narrow Neck Press and Blow (NNPB) technology, first in India Sustained competitive advantage through product optimization and continuous innovation Increasing production of light weighted bottles to enhance margins Captive power plant to improve cost efficiencies (at Bahadurgarh plant) Silica mining to support raw material supply chain (Proposed) Manufacturing of glass machines & spares in 100% subsidiary GEIL International Footprint Gained European presence, one of the largest markets for food and alco-bev industries Access to technological strength and production processes

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20 20 Operational Overview Production volume (MT) 7,85,300 7,67,258 8,29, ,65,459 Sales Volume (MT) 7,82,584 8,42, ,92, ,64, FY 2009 FY 2010 FY M FY FY 2009 FY 2010 FY M FY Realization (Rs. / MT) 20,482 Key Highlights ,332 17,151 17,344 FY 2009 FY 2010 FY M FY 2012 Firm domestic demand driven by growth in end-user industries - liquor, beer, pharmaceuticals, foods and carbonated drinks Manufacturing facilities located across India provide an edge over peers who have only regional presence Pan-India distribution network Implementation of advanced technology enables improved cost efficiencies

21 21 Volume Mix -FY11 End-user segment Geographical distribution of Sales Volume 13% 9% 11% 15% 52% Liquor Beer Food Pharma 19% 42% 4% 22% 13% East West North South Others Export Geographical distribution of capacities (Post commissioning of Naidupeta) 20% 34% 23% North West 23% South East 1 Others include soft drinks

22 22 Financial Performance (All figures stated in Rs. millions on a standalone basis) Net Turnover 15, EBIDTA 25% ,110 13,599 13, % 23.3% % % % 15% FY2009 FY2010 FY M FY FY2009 FY2010 FY M FY 2012 EBITDA Margins 10% PAT 17% EPS (Rs. / share) % % % 4.4% FY2009 FY2010 FY M FY 2012 PAT Margins 12% 7% 2% FY2009 FY2010 FY M FY 2012

23 23 Balance Sheet (All figures stated in Rs. millions on a standalone basis) Particulars (Rs. million) Nine months ended December, 2011 Year ended March, 2011 Year ended March, 2010 Share Holders Funds 12,275 11,661 10,428 Loan Funds 16,302 6,395 5,657 Deferred Tax Liabilities TOTAL LIABILITIES 29,289 18,769 16,782 Net Block + Capital Work-inprogress 23,233 13,845 11,438 Investments 2,281 1,775 1,471 Net Current Assets 3,775 3,149 3,873 TOTAL ASSETS 29,289 18,769 16,782

24 24 9 Months FY Financial Highlights (All figures stated in Rs. millions on a standalone basis) Profit & Loss Statement Snapshot Particulars (Rs. million) 9-M FY M FY2011 Shift (%) Total Income 13,670 11, % EBIDTA 2,275 2, % Margins 16.6% 19.9% Depreciation % Interest % Profit Before Tax (34.3%) Margins 5.5% 10.1% Tax expense (38.5%) Profit After Tax (33.1%) Margins 4.4% 7.9% EPS (in Rs.) (33.1%)

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26 26 Shareholding Pattern Particulars % Shareholding (as on December, 2011) Promoters Public Shareholding Insurance Companies 0.31 Bodies Corporate 3.93 Financial Institutional Investors 7.28 Individuals & Others* Total * Includes 16.76% held as Treasury Shares in the Company Total 87.3 million shares Listed at: National Stock Exchange (NSE) - HINDNATGLS Bombay Stock Exchange (BSE) Calcutta Stock Exchange (CSE)

27 27 Ratings, Rankings & Accreditations Business Today Ranking (Out of 500 top listed corporates, as of October, 2011) In terms of Average Market Capitalization 368 th Rating by CARE (Credit Analysis & Research Ltd.) Long Term credit rating of AA+(implying high safety for timely servicing of debt obligations and carrying very low credit risk). Short Term credit rating of PR1(+), being the highest grade (implying the lowest credit risk). Rated as the best Indian Company in the Glass & Ceramics category by Dun & Bradstreet in years 2009 and 2010 Accredited with ISO 9001:2008 certification, ensuring stringent quality standards and ISO for food and safety Rated at No.35, out of the best 500 companies by Inc.India (Comprehensive ranking of India s best performing mid-sized companies) in their Sep-Oct, 2010 issue.

28 Hindusthan National Glass & Industries Ltd. (HNG) For further information please log on to or contact: Laxmi Narayan Mandhana (CFO) HNG Tel: Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: / anoop@cdr-india.com / dipti@cdr-india.com