MMP INDUSTRIES LIMITED

Transcription

1 ISSUE OPENS ON: MARCH 28, 2018 ISSUE CLOSES ON: APRIL 4, 2018 ANCHOR INVESTMENT STARTS 1 DAY PRIOR TO THE ISSUE MMP INDUSTRIES LIMITED INVESTOR PRESENTATION SME IPO ON NSE EMERGE LEAD MANAGER

2 COMPANY OVERVIEW 34+ Years of Proven Record

3 OUR PRODUCTS ATOMIZED ALUMINIUM POWDER FLAKE ALUMINIUM POWDER ALUMINIUM PASTE VIA-SOLAR VIDARBHA UDYOG GAURAV AWARD WINNER

4 ALUMINIUM POWDER MMP Industries Limited set up its first capacity in 1983 for Aluminium Powders in technical collaboration with a Belgium company, Ets. Andre Van Lerberghe (now called AVL Metal Powders). Aluminium powders (Pyro & Flake and atomized) are used in many industrial sectors like Infrastructure (Construction via AAC Blocks and Mining via Slurry explosives), Agriculture (via Pesticides), MMP Industries Limited s Aluminium Pyrotechnic &Flake powder capacity has grown from 300 Metric Tons per annum to 7,200 Metric Tons per annum over the period. AN ISO 9001:2008, ISO 14001:2004 AND OHSAS 18001:2007 (IMS) CERTIFIED COMPANY

5 ALUMINIUM POWDER APPLICATION MILITARY AMMUNITIONS FIREWORKS RAILWAY THERMITE WELDING PESTICIDES AAC BLOCKS MASTER BATCH SILVER ALUMINIUM PASTE EXPLOSIVES

6 COMPETITIVE STRENGTH EXPERIENCED MANAGEMENT & TECHNICAL TEAM DOMESTIC DEMAND AUGURS WELL FOR THE COMPANY STRONG TRACK RECORD & FINANCIAL STABILITY QUALITY ASSURANCE DIVERSIFIED & LARGE CUSTOMER BASE

7 OUR STRATEGY EXPANSION PLAN AND DIVERSIFICATION ENHANCING CUSTOMER BASE CONTINUE TO GROW THE OVERALL MARKET SHARE BY LEVERAGING THE PRESENCE IN EXISTING BUSINESS VERTICALS COMPETITIVE PRICING INVESTING IN ADVANCED TECHNOLOGY MANUFACTURING PLANT AT BHANDARA, NAGPUR (MAHARASHTRA), INDIA

8 GLOBAL PARTNERSHIP INDIA BELGIUM JAPAN GERMANY

9 VANTAGE POINT Located in Central India with proximity to the Manufacturing Hub for all the key end user Industry Segments Largest manufacturer of Industrial Explosives in India is based out of Nagpur with Majority of its Plants in Central India Manufacturing presence of all leading manufacturers of Pesticides in Central India COAL MINING HUB OF INDIA 80% of the coal resources in India are located in the 5 states of Central India Industrial Paints Manufacturing Companies in Central India Manufacturing presence of all leading manufacturers of AAC blocks in Central India

10 CUSTOMER CLOUD EXPLOSIVES SEGMENT PESTICIDES SEGMENT CONCRETE (AAC BLOCKS) SEGMENT PAINTS SEGMENT

11 PRODUCT REVENUE SHARE MANGANESE ALUMINIUM ALUMINIUM ALUMINIUM OXIDE PASTE CONDUCTORS POWDER 3% 8% 28% 61% SUB-PRODUCT: PAINT SUB-PRODUCT: EXPLOSIVES, AAC BLOCKS, PESTICIDES, FIREWORKS, ATOMIZED POWDER & LP POWDER

12 SEGMENT WISE REVENUE OF ALUMINIUM POWDER Product Portfolio Segmented based on the end use industry application Explosives Aluminium Powder Aluminium Paste Aluminium Conductors Manganese Oxide End use Revenue Share End use Revenue Share Revenue Share Mining 20.50% Paints 28% Concrete AAC Blocks 18% Revenue Share 3% Alphos Pyro Atomized Powder LP Powder Pesticides 12% 8% Fireworks 2% Diverse 8% Diverse 0.5%

13 ALUMINIUM POWDER PLANT CAPACITY UTILISATION INSTALLED CAPACITY CAPACITY UTILISATION 25, , , , ,000 2,500 13,560 15,060 15,060 15,060 18,060 21, % 87% 91% 97% 96% 96% 1, FY 15 FY 16 FY 17 FY 18* FY 19* FY 20* 0 FY 15 FY 16 FY 17 FY 18* FY 19* FY 20* * Projected Figures CAPACITY IN MTPA CAPACITY IN %

14 ALUMINIUM PASTE PLANT CAPACITY UTILISATION INSTALLED CAPACITY CAPACITY UTILISATION 2, , , , , ,500 1,500 1,500 1, % 54% 64% 60% FY 15 FY 16 FY 17 FY 18* FY 15 FY 16 FY 17 FY 18* CAPACITY IN MTPA CAPACITY IN % * Projected Figures * Company will discontinue Aluminium Paste business as per JV agreement.. Aluminium Paste will be manufactured by Toyal JV Toyal JV will procure Aluminium Power from MMP to manufacture high grade Aluminium Paste

15 ALUMINIMUM CONDUCTOR PLANT CAPACITY UTILISATION INSTALLED CAPACITY CAPACITY UTILISATION ,200 7,200 7, % 66.67% 77.92% FY 18* FY 19* FY 20* 0 FY 18* FY 19* FY 20* CAPACITY IN MTPA CAPACITY IN % * Projected Figures

16 ALUMINIMUM FOIL PLANT CAPACITY UTILISATION INSTALLED CAPACITY CAPACITY UTILISATION ,080 5,000 5, % 80% 90% 0 FY 20* FY 21* FY 22* 0 FY 20* FY 21* FY 22* CAPACITY IN MTPA CAPACITY IN % * Projected Figures

17 MANAGEMENT OVERVIEW 34+ Years of Proven Record

18 ABOUT US The Company is engaged in manufacturing of Aluminium products at locations at and close to Nagpur. It has entered into a Joint Venture with Toyo Aluminium K.K. of Japan for the manufacturing of specialty Aluminium pastes in a new company Toyal MMP India Private Limited. It s association with Global Industry leader?toyo Aluminium K.K., Japan would help in moving up the value chain alongside technological support. The Company holds 26% shareholding in this JV Company. The commercial production in this unit has commenced from February The Company has set up its first plant in 1983 for pyrotechnic Aluminium powders in technical collaboration with Andre Van Lerberghe nv, Belgium (now called AVL Metal Powders nv). The Company has further entered into a License Agreement with A. Van Lerberghe for the production of Aluminium powder for light weight concrete. The agreement is a continuing one and has been extended till April 30, From an initial capacity of 300 MTPA in 1983 of pyro and flake Aluminium powders, the capacity presently is 7,860 MTPA. In addition, Atomised powder capacity is 7,200 MTPA including for captive consumption and Aluminium paste capacity of 1,500 MTPA. The Aluminium conductor capacity is presently 7,200 MTPA. The Company is constantly adding the capacities for Powder and Conductors to meet the growing demand of its products.

19 TECHNICAL COLLABORATION The Company set up its first capacity in 1983 for pyrotechnic aluminium powders in technical collaboration with A. Van Lerberghenv, Belgium (now called AVL Metal Powders nv). The Company has further entered into a License Agreement with A. Van Lerberghenv for the production of aluminium powder for light weight concrete. The agreement is a continuing one and has been extended till April 30, 2020 vide an addendum to license agreement

20 OUR PROMOTERS MR. ARUN BHANDARI WHOLE TIME DIRECTOR AND CEO Mr. Arun Bhandari, aged 62 years, is the Promoter, Chairman and Managing Director of our Company. He is a resident Indian national. He holds a Bachelor s degree of Technology in Chemical Engineering from the Banaras Hindu University, Banaras, India. He has experience of more than 36 years in the manufacture of pyro technique aluminium powder, paste and conductors and also manufacturing of circlips, retaining rings and other carbon steel stampings and formed components. He has been on our Board since February 5, Under his management MMP Industries Limited has created its niche and become one of the reputed Aluminium powder player in the country.

21 OUR PROMOTERS MR. MAYANK BHANDARI PROMOTER Mr. Mayank Bhandari, aged about 33 years, is son of Promoter Shri Arun Bhandari. He completed his high school education from United World College of South East Asia, International Baccalaureate Diploma He completed his Bachelors in Engineering B Eng-Manufacturing Engineering with Business Management, from University of Birmingham and did his M. Sc. Engineering Business Management from MRS. SAKSHI BHANDARI PROMOTER Mrs. Sakshi Bhandari, aged 30 years, is wife of Mr. Mayank Bhandari. She completed her high school education from Mahindra United World College of India in 2003 with the International Baccalaureate Diploma. She then completed h e r i n t e g r a t e d u n d e r g r a d u a t e a n d postgraduate Masters in Engineering in Manufacturing Engineering & Management from University of Warwick in University of Warwick 2006.

22 FINANCIAL OVERVIEW Strong financial performance over the period

23 BALANCE SHEET (STANDALONE) PARTICULARS Share Capital Reserves & Surplus Long Term Borrowing Other Long Term Borrowing Deferred Tax Liabilities (Net) Short-Term Borrowings Trade Payables Short-Term Provisions Other Current Liabilities TOTAL LIABILITIES Fixed Assets Non Current Investments Long Term Loans And Advances Other Non-Current Assets Inventories Trade receivables Cash and Cash Equivalents Short-Term Loans and Advances Other Current Assets TOTAL ASSETS MAR, , , , , , , , MAR, , , , , , , , , [FIGURES ARE IN LAKHS] MAR, , , , , , , , MAR, , , , , , , , SEP, , , , , , , ,229.06

24 PROFIT & LOSS STATEMENT (STANDALONE) PARTICULARS MAR, 2014 MAR, 2015 INCOME Net Revenue from Operations Other Income TOTAL REVENUE EXPENSES Cost of Material Consumed Purchase of Stock in Trade Employee Benefit Expenses Change in Inventories of Finished Goods Finance Cost Depreciation and Amortization Expenses Other Expenses PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX Add: Exceptional Items PROFIT BEFORE TAX Less : Current Tax Less: Deferred Tax PROFIT AFTER TAX 12, , , (103.8) , , , , , [FIGURES ARE IN LAKHS] MAR, 2016 MAR, , , , , , , , , (23.93) (234.15) , , , , , , , SEP,

25 BALANCE SHEET PARTICULARS Share Capital Reserves & Surplus Long Term Borrowing Other Long Term Borrowing Deferred Tax Liabilities (Net) Short-Term Borrowings Trade Payables Short-Term Provisions Other Current Liabilities TOTAL LIABILITIES Fixed Assets Non Current Investments Long Term Loans And Advances Other Non-Current Assets Inventories Trade receivables Cash and Cash Equivalents Short-Term Loans and Advances Other Current Assets TOTAL ASSETS MAR, , , , , , , , [FIGURES ARE IN LAKHS] MAR, , , , , , , , , SEP, , , , , , , , , ,202.14

26 PROFIT & LOSS STATEMENT PARTICULARS INCOME Net Revenue from Operations Other Income TOTAL REVENUE EXPENSES Cost of Material Consumed Purchase of Stock in Trade Change in Inventories of Finished Goods Employee Benefit Expenses Finance Cost Depreciation and Amortization Expenses Other Expenses PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX Add: Exceptional Items PROFIT BEFORE TAX Less : Current Tax Less: Deferred Tax Add: Share of Profit from Associates PROFIT AFTER TAX [FIGURES ARE IN LAKHS] MAR, 2016 MAR, , , , , , , (23.93) ) 1, , , , , , , , , SEP, , , , ,

27 INDUSTRY OVERVIEW One of the fastest growing Industry of India

28 ECONOMY OVERVIEW In an Indian Explosives market, a vigorous volume growth (~10%-12% CAGR) is expected during FY16-FY19E. 12% 10MN Passenger vehicle market in India is expected to cross 10 million units in FY compare to 3.8 million in In India, the demand for AAC (Autoclaved Aerated Concrete) Blocks has risen by 10 fold in the last 5 years Indicating significant growth in the power transmission sector, the Central Electricity Authority (CEA) has estimated an investment of INR 2.6 lakh crore till 2022.

29 ASSOCIATE COMPANIES Strong financial performance over the period

30 TOYAL MMP INDIA PVT LTD MMP Industries Limited holds 26% Equity Shareholding in the Toyal MMP India Pvt Ltd Established in 2016, as joint venture company between Global leader Toyo Aluminium K.K., Japan and MMP Industries Limited, India. 26% Manufacture high grade speciality Aluminium pastes used in Automobile Industry TRIAL PRODUCTION STARTED FROM NOVEMBER 2017

31 STAR CIRCLIPS & ENGINEERING LTD. MMP Industries Limited holds 26.06% Equity Shareholding in the Star Circlips & Engineering Limited Incorporated in 1974 and engaged in the business to buy, sell, manufacture, produce, crush and deal in metal powders like aluminium, zinc, copper, iron, brass, ferro-manganese, ferrosilicon and other ferro alloys and metal scraps, sheet metal components, circlips, washers, rings, zinc plating for automotive and other industries. Company s portfolio includes nearly 800 products, which are being supplied to the automobile industry around the world. Nearly 35% of sales constitute of exports, with Germany and USA being the major markets. Few domestic customers include Bajaj Auto Limited, TVS Motor Co, Maruti Suzuki, Piaggio Greaves, Suzuki Motor Cycles, Hero Honda, Ford India, M&M etc.

32 STAR CIRCLIPS & ENGINEERING LTD. REVENUE CAGR 11.00% PROFIT CAGR 46% % Revenue (INR mln) % % MAR-15 MAR-16 MAR Net Profit (INR mln) Margin Improvement in net profit margin in 2017 is attributable to introduction of high margin products, declining raw material prices, positive impact of operating leverage and impact of currency fluctuation on finance cost.

33 OFFER DETAILS OFFER DETAILS IPO on NSE EMERGE Platform

34 VALUE PROPOSITION ASSOCIATION WITH GLOBAL INDUSTRY LEADER TOYO ALUMINIUM K.K., JAPAN LEADING MANUFACTURERS OF ALUMINIUM POWDERS, ALUMINIUM PASTE AND ALUMINIUM CONDUCTORS LARGE CUSTOMER BASE IN DIVERSIFIED INDUSTRIES WITH STRONG CUSTOMER RETENTION

35 ISSUE DETAILS PARTICULARS Issuer Offer Type Price band Per Share Minimum Lot Size Issue Size Stock Exchange Issue Structure Issue Manager : : : : : : : : DETAILS MMP INDUSTRIES LIMITED Initial Public Offering on NSE EMERGE Rs. 186 to 188/- Per Equity Share 600 Equity Shares and Multiples thereof 45,00,000 Equity Shares of Face Value of Rs. 10/- each for Cash at a Price band of Rs. 186 to 188/- Per Equity Share through Book Building Process. NSE EMERGE PLATFORM Non Retail Portion ,78,750* Equity Shares Retail Portion ,96,250* Equity Shares Market Maker Portion --- 2,25,000 Equity Shares GUINESS CORPORATE ADVISORS PRIVATE LIMITED *Number of shares may need to be adjusted for lot size upon determination of issue price.

36 ISSUE OBJECTIVES UTILISATION OF ISSUE PROCEEDS Rs. 5, Lacs Setting up a new facility for manufacturing of Atomised Aluminium Powder, Pyro and Flake Aluminium Powder and Aluminium Foils [ ] Prepayment or repayment of a portion of loan facilities [ ] General Corporate Purposes [ ] Public Issue Expenses

37 DISCLAIMER This document has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure. Neither this document nor any of its contents may be used for any other purpose without the prior written consent of MMP industries Ltd. ( Company ). In preparing this document, we have relied upon and assumed, without any independent verification, the accuracy and completeness of all information provided by the Issuer company. This document contains certain assumptions, which the company considers reasonable at this time and which are subject to change. Any calculations or forecasts produced within this document are indicative and subject to change. Recipients should not construe any of the contents within this document as advice relating to business, financial, legal, taxation and/or investment matters and are advised to consult their own business, financial, legal, taxation and other advisors. This document is for information purpose only and does not constitute an invitation to subscribe for and/or purchase equity shares or other assets or securities of the Company and the information contained here in shall not form the basis of any contract. Promoters/analysts of and/or Guiness Corporate Advisors Pvt. Ltd., as a company do not hold any shares of this company. However, they reserve the right to acquire the shares of the company either in the public offer (if company comes out with IPO) and/or subsequently from the secondary market.

38 THANK YOU INVESTORS MMP INDUSTRIES LIMITED REGD OFFICE: 211, SHRIMOHINI 345, KINGSWAY, NAGPUR, MAHARASHTRA PHONE: / COMPANYSECRETARY@MMPIL.COM WEB: COMPANY SECRETARY: MR. CHANDRAKANT NIMJE