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JVL Agro Industries Ltd.
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  1. JVL Agro Industries Ltd. A strategic growth option

  2. Contents • Indian Macro Economic Overview • Company Overview • Milestones and Achievements • Haldia Port • JVL Oil Refinery, Haldia (A unit of JVL Agro Industries Ltd) • Thank You

  3. Indian Macro Economic Overview Source: Solvent Extractors Association of India   • India – a fast growing significant economy inspite of • global slowdown • Strong Macro-economic fundamentals • GDP Value – Over $1.3 Trillion • Purchasing Power Parity (PPP) : Five Trillion • Forex Reserve - US$ 283 billion …. and growing • Average GDP growth rate in last 5 years - 8.4 % • Household savings rate : 32.5 %(2009-10) – world’s • highest. • Industry sector GDP growth In 2008-2009 the industry growth reduced to 3.9% due to global recession. However, in 2009-2010 revived and reached at 9.2%. Current year growth forecasted at 9.6%. 3

  4. Indian Macro Economic Overview (contd…) Source: Solvent Extractors Association of India   • Agriculture sector GDP growth • All India area, production and yield of oilseeds Production of Oilseeds during 2009-10 was estimated at 25.4 million tonnes compared to 27.7 million tonnes in 2008-09 and 29.8 million tonnes in 2007-08 Forecast for the current year production in the year 2010-2011 is at 29.5 million tonnes Agriculture sector growth is fluctuating depending on monsoon performance. Indian Government is aiming at 4% Agriculture GDP Growth to achieve 10% overall GDP growth. In the year 2009-2010 due to bad monsoon, agriculture sector had a negative growth of 0.5%. In the year 2010-2011, with good monsoon, growth is projected at 6.3% 4

  5. Indian Macro Economic Overview (contd…) Source: Solvent Extractors Association of India   • Oilseed production from 2004-2005 to 2009-2010 (Quantity in million tonnes) 5

  6. Indian Macro Economic Overview (contd…) Source: Solvent Extractors Association of India   • Oilseed sector 2009-2010 • Edible oil demand and import projections • Area Under Oilseed Cultivation 26-27 million Ha • Average yield (per hectare) 950 –1000 kg • Output of 9 cultivated Oilseeds 25.4 million tonnes • Output of Cottonseed & Copra 9.8 milion tonnes Total 35.2 million tonnes • Production of Vegetable Oils 7.9 million tonnes • Demand of Vegetable Oils 14 -15 million tonnes • Import of Veg. Oil 2009-10 (Est.) (Nov-Oct) Edible 8.0 million tonnes Non - Edible 0.4 million tonnes Total 8.4 million tonnes • Per capita consumption 13.5 Kg. • Per capita consumption is rising by 3 to 4% per annum 6

  7. Indian Macro Economic Overview (contd…) Source: Solvent Extractors Association of India   • Population and consumption of edible oils 7

  8. Company Overview Revenues ( in USD’ Million) • Listed on the Bombay Stock Exchange since 1993 and National Stock Exchange • On 30.09.2010 the stock price reached its highest ever price i.e. Rs. 45.80 (share of face value Re 1/- each) • Provides a complete vegetable oil solution: Palm Oil, Soybean Oil, Mustard Oil and Saturated fats EBIDTA ( in USD’ Million) • Trusted 2-decade relationship with credible plantation owners in Indonesia, Malaysia, Argentina & Brazil • Largest crude edible oil importer in Northern and Central India • Available in 17 Indian states, 2 Union territories and more than 5000 retail outlets in India PAT ( in USD’ Million) • Owns the single largest manufacturing unit for saturated fats in India • ISO 9001-2008 certified

  9. Milestones and Achievements Commissioned an edible oil refinery/ Saturated fats unit in Bihar. Commenced the production of a new refinery UP Started the export of de-oiled cakes. Received govt. approval for a multi-services SEZ near Saranath/ Varanasi in UP on 100 hectare Acquired a seed crushing & refining plant in Rajasthan for mustard oil. Invested in Adamjee Extraction Pvt. Ltd., Sri Lanka for import of Saturated fats under the brand - ‘Jhoola’. Started work on the Haldia unit with refining Capacity of 1000 MT per day along with oleo-chemical section Acquired 40 hectare of land close to Mumbai for future expansion Become Listed in National Stock Exchange Installed a 60-TDP unit for refined oil; introduced crude soybean and palmolein oil to the product mix Achieved 100-TDP production at Varanasi 2011 1990 1993 1995 1999 2000 2006 2007 2008 2009 2010 Achieved highest ever turnover growth of over 60% Commenced commercial production from the Bihar unit Introduced products in Northern states like J&K, HP, MP, etc. Commenced production with a 25-TPD capacity Switched from chemical processing to modern mechanical techniques Increased Saturated fats production capacity to 200 TPD Globoil India Legend 2011, award received by the Chairman JVL Agro Industries Limited Emerged as the first edible oil manufacturer in North & Central India to commission a 3-MW turbine. Formed a wholly-owned subsidiary in Singapore under the name of JVL Overseas Pte. Ltd. 9

  10. Vision & Mission Vision To delight the consumer through a complete vegetable oils solution, through continuous research and development in healthier oil varieties, leading to a single-stop convenience. Mission We expect to extend our leadership from saturated fats to the entire vegetable oil segment in the first stage and then to agro-based premium food products thereafter, from one region in India to a global manufacturing and marketing presence. 10

  11. Addressing Wider Market Through an Intelligent Product Mix Leveraging its established Brand power to sell all its products One of the leading brands in Central, Northern and Eastern India • Jhoola • Refined Palm Oil • Refined Soybean • Saturated fats • Palmoline Vegetable Oil • Mustard Oil • Fatty Acid Product Mix In India Palm, Soybean and Mustard constitutes 75% of total edible oil consumption Customised Packaging Addressing the varied quantity needs of consumers From 200 ml to 1 litre to 15 kg JVL’s complete product mix helps in addressing different sections of consumers in different parts of the country 11

  12. Feeding the States Account for >60% of India’s Population Available in 17 Indian states and 2 union territories,accounting for more than 60% of the total population Transformed from a Regional player to a Zonal entity UP and Bihar are the largestsaturatedfats and refinedoil consuming market in India De-oiled cake exported to Vietnam, Bangladesh, Thailand, China, Indonesia and South Korea International Markets Pan North, Central, East and North-East India Network of over 30depots and 12salespoints Distribution Network Available in more than 5000retailoutlets in India Sales agreement with large retail formats like Big Bazaar in UP Market Share of 35%+ in North – 5 States (UP / Bihar / MP / Punjab / Uttarakhand) 12

  13. Cost Efficient Production Facilities Single largest Saturated fats manufacturing unit in India One of the lowest per ton production cost In-house facility for packaging material production Reduced packaging cost A 3-MW captive plant in the Varanasi facility, fulfilling most of unit’s power requirement Reduced power cost compared with the prevailing grid tariff Lower overall production cost and better sales margin Northern and Central India’s largest crude oil importer Better bargaining power and logistical competitiveness Invested in ERP for transparency, enhanced scalability and accuracy Informed decision making Trusted 2-decade relationship with suppliers locally and internationally Uninterrupted raw material supply Over 80% capacity utilisation in Varanasi, Bihar and Alwar units Enhanced capacity utilisation 13

  14. Current Production Capacity Saturated fats and Edible oil production capacity Packaging material production capacity • 1,800,000 HDPE jars per annum • 4,200,000 tins per annum • Also manufactures the handles and caps required for the containers Oil Production Capacity of 1,400 TPD (as on March 31, 2010) TPA – Tonnes Per Annum; TPD – Tonnes Per Day 14

  15. JVL’s presence in India Mumbai Ludhiana Delhi Varanasi Guwahati Haldia Bihar Feeding point Alwar Marketing area Krishnapatnam Manufacturing location Proposed location 15

  16. Haldia Port • Only port on the East coast of India (along with Kakinada in South-Eastern part of India) which has edible oil refineries and receipt of imported edible oil • Location advantage – being the only port having access to the entire Central, Eastern and North-Eastern states of India (over 12 states and at least 40% to 50% of the Indian population) • Being on the east coast, it has better proximity to Indonesia/ Malaysia, the hub of palm oil in the world • Facility to unload the crude palm oil directly in the factory from the vessel through pipeline • Facility to load finished product in the railway wagons from outward transportation • Proximity to National/ State roadways, waterways etc for outward transportation through trucks • Availability of quality manpower, power, industrial water and other infrastructure for industrial operation • Eligible incentive for refund of 70% of the VAT deposited, restricted up to 100% of the fixed capital investment in plant & machinery

  17. JVL Oil Refinery, Haldia (A unit of JVL Agro Industries Ltd) • Oleo-chemical section for fatty acid splitting and distillation and production of soap noodles and hydrogenation of 300 metric tonnes per day as advised by Lurgi (India) • No problem of feed for the oleo-chemical plant because of the availability of many refineries in the proximity • Finished product will be sold to FMCG companies such as Hindustan Lever, ITC, Godrej etc already operating in that area • Captive Power plant of 3 Megawatts • Associate plant in the state of Assam in North-Eastern part of India because of fiscal benefits and 30% of the total output will be sold there • Over all cost of project to be approximately USD 50 million • Physical refining capacity of 800 metric tonnes per day of crude palm oil. Plant & Machinery order have been placed with Alfa Laval (India) • Fractination plant of 600 metric tonnes per day (expandable upto 750 metric tonnes per day). Plant & Machinery order have been placed with Alfa Laval (India) • Inter-esterification plant of 200 metric tonnes per day. Quotations called from Alfa Laval (India) and Desmet (India) • Soybean oil de-gumming and refining facility of 400 metric tonnes per day. Quotations called from Alfa Laval (India) and Desmet (India) • Work is on full swing and the above sections are expected to commence commercial production in the financial year 2011-12 • Finished products will be sold in 12 states account for around 40% to 50% of the Indian population • Existing sales and marketing network in these states either through refined oil, saturated fats or rapeseed oil sold under the brand ‘Jhoola’

  18. Thank You Source: 18