credibility since 1909 -… · technovaa plastic industries pvt ltd (tpipl) •set up in fy 2011...

CREDIBILITY SINCE 1909

DARVESH

Group Introduction

The Group was established by Late Miya Ahmed Suleman Sodagar Darvesh in 1909.Darvesh Group is headed by Mr. Hassan Suleiman Darvesh (Chairman) and ablysupported by his sons, Mr. Ahsan Hassan Darvesh (President) and Mr. Talib HassanDarvesh (Vice President)

Started primarily with trading activities in timber business, Darvesh has steadily grownand established itself as a key player in timber, supply of constructionmaterials, chemicals, tyres and flexible packaging

Its geographic presence includes Middle East (UAE & Oman), China (Guangzou, HongKong), Singapore, Europe (Portugal, Spain, Italy), Africa (South Afrika, Nigeria, Kenia).

The turnover of Darvesh Group in 2016 was circa USD 1 Billion, with packagingbusiness driving the growth. In the Flexible Packaging Division, the Group hassuccessfully been recognised as a major player in UAE, Oman, South Africa, Italy andIndia. The cumulated turnover of this division exceeded 300 Million USD

An investment company in Mauritius holds the group investments spread across theglobe in India, Europe, Dubai and Africa

Strictly private & Confidential

The Family Tree

Hassan Suleiman Darvesh (Chairman)

Mr. Hassan S Darvesh is the founder of the Darvesh Group in UAE. Mr. Darveshstarted his career in timber business in India early in 1960 after graduating fromBombay University. To explore global opportunities, he ventured into theMiddle East in 1980s, setting up business in Oman and then in UAE. AsChairman of the Board of Directors, he provides the strategic direction of theGroup and is involved in senior level discussions with various stakeholders suchas Government, leading suppliers and buyers and banks.

Ahsan Hassan Darvesh (President)

Mr. Ahsan Darvesh, the eldest son, holds an MBA and has been involved in thebusiness for a decade. He cut his teeth in leading the fashion furniture businessof the Group and has been actively involved in setting up the manufacturingfacilities in the packaging business across the world. He currently leads theGroup’s business in Europe and Africa.

Talib Hassan Darvesh (Vice President)

Mr. Talib Darvesh, the younger son, has been involved in business for severalyears after graduating from American University in Dubai, UAE. Mr. TalibDarvesh oversees the Group’s business in the Middle East and India, whichcovers the entire gamut of operations from manufacturing to trading and finallyfashion retail display furniture.


Geographical Presence & Verticals

Business Verticals


‹#›

The 4th Generation

Building on the success of three generations of family business, the 4th generation plan focuses

on international recognition and quality service. As a family business, DARVESH aims to solidify

and deepen current relationships with all stakeholders like suppliers, buyers, employees as well as

developing potential new clients and partners.

Our strategic goals and objectives are based on our aspiration to be recognised for our

excellence, innovation and quality service in all sectors and business relationships.


Striding Ahead…Awards & Recognition

2015 : Forbes Top Indian Business Leaderin Middle East

2016 : Winner of GPCA Award for Development/ Improvement Project

2017 : Business Excellence Award in UAE


Packaging Industry: Core Strength of Darvesh

1996

First factory set up in Dubai

2010

Durban operations commenced

2011Factory in India set up

2012Acquisition of paper and paper core factory in Portugal

2014

Acquisition of packaging plant in Italy completed

2015• Acquired paper core plant in Spain•Factory in Oman becomes operational

2016

Flagship factory at KIZAD, UAE with enhanced capacitycommenced operation


Packaging Industry Outlook


International

•Globally, packaging is amongst the more stable industries, with growth rates higher than the GDP in most countries

•USD 700 Bn* industry

•Average annual growth in the range of 4%-5% with Asia having a higher growth rate of 7%*

•Per capita consumption of packaging in developed economies exceeds 80 kgs *

•AMCOR is the leader , other major players include BEMIS, Mondi, Constantia, Huhtamaki, etc

India

•USD 32 Bn industry – FY 15 and expected to touch USD 70 Bn by 2020 *

•CAGR of 18% with flexible packaging clocking a higher rate of 25% *

•Low Per capita consumption of packaging at 4.3 kgs * – high potential for continued growth

•Fragmented industry with organised and un-organised players

•Plastic packaging is the fastest growing segment in packaging* source FICCI, HDFC Sec 3.3 8.5

25.912.1

23.3

46.8

0

10

20

30

40

50

60

70

80

FY 10 FY 15 FY 20Rigid Flexible

0

10

20

30

40

50

60

70

80

US Germany China Taiwan India

Per Capital Consumption

Flexible Packaging growth -India

Industry Outlook


India – growth drivers

• Rise in organised retail and e-commerce

• Shift to lower pack size and regularly changing pack weights

• Increasing rural penetration

• Increasing packed food consumption and demand for longer shelf life

• Branding

• High quantum of food going waste for lack of packing and transportation


Technovaa Plastic Industries Pvt Ltd (TPIPL)

•Set up in FY 2011

•Located in Gujarat, 50 kms from the city of Ahmedabad

•Leader in the Cast Polypropelene (CPP) and Stretch film industry

•State-of-art machinery from Europe

•Exports constituted 30% circa revenues in FY 16

•Annual manufacturing capacity *

- CPP : 9,600 MT

- Stretch Film : 9,600 MT

•Product as thin as 9 microns

•Tie-ups with large FMCG like Britannia & Parle

* Capacity is relative and is dependent on thickness and width

TPIPL – A Snapshot

Revenue Snapshot (USD Mn)

8.8

12.1

21.5

0.0

5.0

10.0

15.0

20.0

25.0

FY 14 FY 15 FY 16


History & Milestones

2010

Incorporation of the company

2011

Acquisition of Land

2012

-Commissioning /Commercial Production of CPP – 1st line-Cast Line + Metallization

2013

Commissioning of Paper Core Line

2014

-Commissioning/ Commercial Production of CPP – 2nd line-Commissioning of Stretch Film Line

2015

Tie-up with Britannia - Contract

2016

EBITDA positive


Capacity & Utilization

ProcessCapacity

per AnnumCapacity Utilized

FY 2016Capacity

Utilization

Casting – CPP 9600 6650 69%

Metallization – CPP 9600 5650 59%

Casting – Stretch 9600 7330 76%


Board of Directors

Jarek Madej (COO)

Ritesh Shroff

(CFO)

Finance & Accounts

Procurement LogisticsStores & Dispatch

Sarwottam Waghmare (Head - Production and

Technical Development)

CPP Production

Team

Stretch Production

TeamMaintenance

Prasenjit Chattopadhyay

(Head - Sales & Marketing)

CPP Sales Team

Stretch Sales Team

Santosh Katke (Head Quality)

Quality Team

Organizational Structure


Key Management Team

Jarek Madej- Master in Economics, Cracow University of Economics, Poland- 15 Years of rich experience with MNCs like Fisher & Krecke (Bobst

group), Windmoller & Holscher- Currently responsible for operations of Dubai, Oman and India

Sarwottam Waghmare- Master in Industrial Chemistry & PGDM from Indian Institute of Packaging, India- 30 Years of hands on experience with established packaging companies like Cosmo

Films, Gujarat Propack, Positive Packaging (currently Huhtamaki PPL)- Leads Production and R&D

Ritesh Shroff- MBA in Finance from Amity University, India- More than 25 Years of experience in Finance & Operations with 13 years of this in

packaging industry - Currently overseas Finance & Supply Chain

Prasenjit Chattopadhyay-PGDM in Packaging technology from Indian Institute of Packaging, India-Experience of more than 20 Years in Packaging, including 10 years in Technovaa’soverseas units in Dubai & Oman-Presently spearheads the Sales and Marketing


Product Basket

High Bond Low Seal Temperature(HBLTS) - MCPP

High Bond (HB) - MCPP

High Bond Nitroflush(NTFL) - MCPP

Thermoformable CPP(THCP) - White

Easy Peel CPP(EPCP) - NCPP

Modified Metallised CPP(MMCPP) - MCPP

Standard Metallised CPP(MCPP)

Standard White CPP(WCPP)

Standard Natural CPP(NSCPP)

Machine Grade Stretch Film- Super Power 300 %

Machine Grade Stretch Film- Super Power 250 %

Modified Manual Grade Stretch - Upto 9 micron

Manual Grade Stretch Film - Standard

CPP Stretch


Our Business Partners


State-of-the-art European manufacturing facilities

Market leadership through technical expertise

Highly experienced team with strong focus on R&D and technology

Locational advantage – proximity to ports and customer base

Strong customer relationship leading to customer loyalty

Continuously improving product basket with focus on specialized product segment

1

2

3

4

5

6

Key Highlights


Machineries

• 5 Layer Cast line

• Latest technology from Germany

• Ideal for producing barrier films

• Width : 2500 mm

• Speed : 300 mtrs / minute

• 3 Layer Cast line

• State of art technology from Austria

• Width : 2500 mm



• Metallization (Aluminium coating) on film surface


• Specially equipped with Plasma treater

• Width : 2450 mm

• Output : 6000 MTPA

Supported by 2 Jumbo slitters from Kampf, Germany

Machineries



• Automatic with robotic arm

• Capable to produce up to 7 micron film

• Width : 2000 mm


Machineries


Quality FocusQ

ual

ity

Co

ntr

ol

• Every process has quality check protocol established

• Stringent quality checks at all levels of production are carried out to ensure materials are free of

defects and adhere to requisite standards

• Sourcing from renowned international polymer giants for high quality raw materials

Key Laboratory Equipment

Envi

ron

me

nt,

He

alth

& S

afet

y

• All products manufactured by us are recyclable

• Endeavors to manufacture products in an eco-

sensitive manner to reduce its carbon footprint

• Recycles majority of the waste

• Develops substrates to replace ‘alternate’

packaging to increase recycling

Environment Health & Safety• Endeavors to create safe and healthy

workplace for all employees and the communities they work in

- No major injuries/accidents- Employee safety manual in place

• SOPs in place for emergency evacuation procedures


• State-of-art Machinery• Technological expertise• Established customer base• Group’s industry experience• Diversified product basket• Agreements / access with FMCGs

• Fast growing market• Demand for value added products• Expanding relationship with

International FMCGs (Exports)• Environmental notification on

homo-polymerisation

• High Initial Capital investment• High cost of finance• Initial cost of product development

• Fragmented industry with unorganised players

• Expected capacity additions• Currency fluctuation

Strengths Opportunities

Weakness Threats


CompetitionPlayer Segment Capacity

(MTPA)

Remarks Remarks

Uflex CPP 4000Procures its CPP requirements for

organised FMCG from us

In-house capacity used to

cater Tobacco segment

Huhtamaki PPL

(Vista Films div)CPP 6000 ------do-----

Kanodia Technoplast CPP 6000 Focus primarily on Tobacco segment

Jhaveri FlexoCPP 5400 Uses majority for captive consumption

Cosmo Films CPP 2400Old coating line, converted and re-

commissioned in 2016

Power Band Stretch 3000Ownership change in progress – as per

market sources

Shreenath Poly Stretch 2400 Regional player based in Hyderabad

Pepcee Stretch 3000 Local machinery

Jagannath Extrusions Stretch 2400 Local machinery

Unorganised players in CPP with indigenous machines comprise of companies like Vinay Wires, Welset, Rahil, Akash Packaging, Sampark, etc


Financials & Proposal

Key Trends

Figs in USD Mn

Topline : 244% over last 2 years

2016 : EBITDA Turnaround

2017E : Cash Profit


8.8

12.1

21.5

18.6

24.727.8

0

5

10

15

20

25

30

2014 2015 2016 2017E 2018E 2019E

Revenue

-0.1 0.1

0.7

1.9

3.1

3.6

-1

0

1

2

3

4

2014 2015 2016 2017E 2018E 2019E

EBITDA

-1.5 -1.4 -1.4

0.6

2.93.5

-2

-1

0

1

2

3

4

2014 2015 2016 2017E 2018E 2019E

Cash Profit

The Proposal

Finance

• Fund Requirement USD 25 Mn / equivalent Euro

• Expected coupon rate @ 1.5% on the incremental turnover

• Tenor (door-to-door) of 7.5 years with an option to roll over with mutual agreement

• Progressive repayment model

Collateral

• Fixed Assets (Plant & Machinery + Land & Building) of TPIPL

• Current Market Valuation of Fixed Assets, done through certified valuers, stands at USD 17 Mn

• Security coverage can be addressed.


Utilization Plan

Repayment of existing Term Loan : 12.2

Repayment of existing WC Loan : 2.8

Augmentation of Working Capital : 10.0

Total : 25.0

The Proposal

Figs in USD Mn


Loan Structure

Lender

Mauritius Holding Co - Borrower

TN India - Equity

BOB – Term Loan payment

BOB – WC payment

Working Capital

TN India –EMI &

Interest

Mauritius Holding Co

Lender

Borrowing Servicing


credibility since 1909 -… · technovaa plastic industries pvt ltd (tpipl) •set up in fy 2011...

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