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CORPORATE PRESENTATION

Hindusthan National Glass & Industries Ltd. . CORPORATE PRESENTATION. Disclaimer.

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CORPORATE PRESENTATION

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  1. Hindusthan National Glass & Industries Ltd. CORPORATE PRESENTATION

  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 forward-looking 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. 2

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

  4. Company Overview 4

  5. Dominant position Pan India Presence Consumption Ancillary Competent management Well established customer relations Strong Balance Sheet Company overview Market share of ~ 55% in the container glass segment Installed TPD capacity in India (2,925 MT) and Germany (320 MT); Planned capacity expansion to ~6,765 TPD by FY17 Diversified end user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others Manufacturing facilities in 6 locations across India, 7th facility will start by April, 2012 Additionally, international manufacturing footprint through its 100% subsidiary HNG Global GmbH, Germany Strong management with vast experience and domain knowledge Successful history of acquiring loss-making units and turning them around Six decades of presence in the industry has enabled the Company to develop long standing customer relations In a capital intensive industry, the Company has been able to maintain a comfortable long term debt/ equity ratio

  6. Corporate Milestones • First 30 TPD plant commissioned in 1952 • Second 90 TPD plant commissioned in 1964 Acquired 700 TPD facility in Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Company renamed as Ace Glass Rated Best Indian Glass & Ceramics Company by Dun & Bradstreet Work on 7th plant at Naidupeta (650 TPD) initiated – operations to commence by Q1 FY13 Ace Glass Containers merged with HNG Acquired 320 TPD loss making glass division from L&T at Nashik Established float glass plant in Halol under HNG Float Glass Acquired 180 TPD Neemrana unit of Haryana Sheet Glass Nashik plant to add capacity of 650 TPD by Q4 FY12. Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany Capacities expanded to 1,100 TPD 6

  7. Hindusthan National Glass & Industries Ltd. HNG Float Glass Ltd. (HNGFL) HNG Global GmbH Quality Minerals Ltd. Glass Equipment (India) Ltd. Acquisition of assets of Agenda Glas AG Corporate Structure • Consolidated net revenues: Rs. 15,678 millions. • Standalone net revenues: Rs. 15,525 millions. 47.4% 100% 100% 100% • Net revenues: Rs. 2,948 millions. • Manufacturer of Float & Processed Glass • Net revenues: Rs. 299 millions. • Capital Goods & Spares Supplier to Glass Industry • Net revenues: Rs. 10 millions. • Mineral Supplier to Glass Industry Note: 1. All revenue figures are for FY 2011. HNG Global GmbH was acquired after March 31, 2011. 7

  8. Adapting new technology Expanding product portfolio Backward integration International Footprint Capacity Expansion Business Strategy • Acquired and turned around four loss making units over the last nine years • Planned organic expansion to ~ 6,765 TPD by FY17 • Presence across key user industries – liquor, beer, pharmaceuticals and food • Capitalizing on opportunities in the high growth float glass industry • 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 (Existing and Proposed) • Silica mining to support raw material supply chain (Proposed) • Manufacturing of glass machines & spares in 100% subsidiary GEIL • Gained European presence, one of the largest markets for food and alco-bev industries • Access to technological strength and production processes

  9. Business Overview 9

  10. Pan – India Presence • HNG, the largest container glass manufacturer in India has a manufacturing capacity of 2,925 tonnes per day • Multi-locational production facilities enable the Company to: • Lower landed cost to customers • Provide JIT supplies • Cater to key customers across India Bahadurgarh Rishikesh Delhi Neemrana Kolkata Vadodara Rishra Nashik Mumbai Hyderabad GEIL Float Glass Unit Naidupeta Container Glass Plant Locations Bengaluru Chennai Marketing Offices Puducherry Upcoming Greenfield Mega Project Upcoming Brownfield Mega Project (Nashik) Note : Further, the Company is setting up greenfield manufacturing facilities in new locations in West Bengal and Rajasthan. The total capacity is expected to grow to ~6,765 TPD by FY17 through Greenfield and Brownfield expansions in India. 10

  11. International Presence • Plant location: Gardelegen, Germany • Capacity: 320 TPD Gardelegen 11

  12. 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 RM’s. • The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. • Company has 147 FTE, the average age of employees is 37 years, with 50% of the workforce below the age group of 35 yrs. • Germany is the largest market for Container Glass in Europe, with a share of ~ 20%. • Company’s technological edge can also be back pedalled in HNG’s Indian operation, as Germany is always considered as two steps ahead in terms of technology, from the rest of the World. 12

  13. Expanding Scale Presentcapacity of 3,245 TPD with proposed expansion to ~ 6,765 TPD by FY17 13

  14. Strong customer relationships LIQUOR BEER FOOD SOFT DRINKS PHARMACEUTICALS Caters to customers across segments 14

  15. HNG Float Glass Overview Diversification within the glass sector Extensive and expanding pan India dealer network One of the fastest growing Float Glass companies Commenced operations in February 2010 • Established a 600 TPD Greenfield Plant at Halol, Gujarat • Accomplished 100% capacity utilization in the first year of operations • Achieved pan-India market share of 21% in clear glass and became industry leader in the west Indian market with 30% market share in clear glass in its first year of operations • Created a strong distribution base with over 928 dealers spread across India • Leveraged six-decade experience in glass manufacturing • Synergies in technology – Significant part of float glass manufacturing process is similar to that of container glass • Economies of scale achieved in raw material procurement 16

  16. HNG Float Glass Overview Future growth plans Industry growth drivers – low penetration of Glass and boom in the end user industry to drive growth • Setting up of a Mirror line, High performance Low E glass, Two float lines at Halol (Gujarat) & South India • Second Float Line at Halol for 900 TPD for architectural glass by FY14 • Setting up additional 1,200 TPD float glass Capacity for architectural quality in South India by FY16 • Plan to commission production facility for Soft coated High performance Low E Glass by start of FY14 • Nascent industry in India with just 8 float glass lines compared to 246 in China • Indian Float Glass industry has been growing at c.20%CAGR over the last three years • India’s total installed capacity for float glass is ~ 4,700 TPD which results into saleable production of 3,840 TPD • Low per capita consumption of Float Glass in India of 0.8 kg as compared to 12 kg in China and 10.4 kg in USA 17

  17. Industry Snapshot 18

  18. Global Packaging Industry • As per World Packaging Organization, the global packaging industry at present is estimated to be USD 425 billion in revenues, with ten year historical growth at ~ 3.1% CAGR, expected to be USD 597 billion by 2014 • Projected to grow at ~ 3.5% CAGR in the next five years mainly driven by growth in emerging markets (Asia Pacific region) Source: Owens-Illinois, Inc. - Investor presentation, March 2010 19

  19. Indian Glass Packaging Industry • At US$ 14 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 stood at US$ 1 bn plus in FY10 with a growth of ~ 12% • Entry barrier owing to capital intensive nature • Top 3 players are HNG, AGI Glaspac and Piramal Glass • Low per capita glass container consumption of 1.5 kg in India as compared to 27.5 kg. in US and 10.2 kg. in Japan • Strong economic drivers for end-user segments (liquor and beer, pharmaceuticals, food, cosmetics, etc.) World glass container per capita consumption (Kg) 20

  20. Operational & Financial Snapshot 22

  21. Operational Overview • Key Highlights • 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 regional presence • Pan India distribution network • Implementation of advanced technology enables improved cost efficiencies 23

  22. Volume Mix -FY11 End user segment Geography Production - Capacities FY11-12 1 Others include soft drinks 24

  23. Financial Performance Net Turnover EBITDA PAT EPS (Rs. / share) All figures stated in Rs. millions on a standalone basis 25

  24. Balance Sheet All figures stated in Rs. millions on a standalone basis 26

  25. Key Balance Sheet Ratios ROCE 27

  26. H1 FY 2012 - Financial Highlights Profit & Loss Statement Snapshot All figures stated in Rs. millions on a standalone basis 28

  27. Annexures 29

  28. Shareholding Pattern 30.02 • * 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) - 515145 • Calcutta Stock Exchange (CSE) 30

  29. Ratings, Rankings & Accreditations • Business Today Ranking (Out of 500 top listed corporates, as of October, 2011) • In terms of Average Market Capitalization – 368th • 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 22000 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. 31

  30. Hindusthan National Glass & Industries Ltd. (HNG) Thank you For further information please log on to www.hngindia.com or contact: Laxmi Narayan Mandhana (CFO) HNG Tel: 033-2254-3100 Email: investor.relations@hngil.com Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1218 Email: anoop@cdr-india.com / dipti@cdr-india.com 32

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