escorts group investors december 13

8/13/2019 Escorts Group Investors December 13

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Copyright 2013 Escorts Limited

Escorts Limited


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Page 2Escorts Ltd.December13

Contents

Escorts Agri Machinery 6

Escorts Construction Equipments 10

Escorts Railway Products 13

Escorts Ltd. Overview 3

Escorts Auto Products 17

Financial Highlights 21

Recent Developments 27

Award & Achievements 32


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WORLDS LARGEST PICK NCARRY HYDRAULIC MOBILE

CRANE MANUFACTURER

PIONEER IN AUTOMOTIVE

SHOCK ABSORBERMANUFACTURING

ESCORTS GROUP

INDIAS 3RDLARGEST TRACTORMANUFACTURER

ASIAS LARGEST

MANUFACTURER OF AIRBRAKE SYSTEMS

Escorts Ltd


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Escorts LtdEscorts Ltd is one of India's leading engineering conglomerates

Over six decades of experience in engineering innovation

Strong focus on customer centric innovation

Presence across growth sectors of Agri-machinery, Construction & Material Handling Equipment, Railway Equipmentand Auto Components

Escorts Agri Machinery

(EAM)

EAMs advanced agri-machinery &crop solutions help enhance

agricultural productivity and addvalue to a farmers life

Escorts Railway Products

(ERP)

ERPs wide array of

railway products aids themodernization of Indian Railways

Escorts Construction

Equipment(ECE)

ECEs vast range of construction &material handling equipment

supports Indias infrastructure

growth

Escorts Auto

Products(EAP)

EAPs auto suspension productsleverage the high potential of the

auto component industry

Escorts Ltd


5/34Page 5Escorts Ltd.December13

Management TeamBoard of Directors

Rajan NandaChairman

Active member of several apex trade and industry bodies and

member of CII National Council

Nikhil NandaManaging Director

Alumnus of Wharton Business School, PhiladelphiaResponsible for driving Escorts growth initiatives to strategically

position it in the global arena

Dr. S.A.Dave

Director

The first Chairman of SEBI

Acting chairman of Centre for Monitoring

Indian Economy, Mumbai

Dr. P.S.Pritam

Director Retired as Executive

Director of LIC India

Over 40 years of expertise in large

financial institutions

S.C.Bhargava

Director Senior Fellow member of

ICAI

Worked as a Technical Advisory

Committee member for RBI

Hardeep Singh

Director Chairman - Monitoring

committee on minimum

support price (Planning Commission) &

Food security Task force (CII)

Business

Heads

Corporate

Heads

G. B. MathurEVP

Company Secretary & Strategic Advisor

GVR MurthyCEO, Escorts Construction Equipment

Lalit K PahwaCEO, Escorts Auto Products

S SridharCEO, Escorts Agri Machinery

Ishan MehtaEVPHR & ER

Dipankar GhoshBusiness Head, Escorts Railway Products

35 years experience in secretariat & legal

matters. Responsible for all Secretarial matters.

26 years of experience in engineering, automotive & manufacturing

32 years experience in aligning HR/ER strategies

to business, enhancing organizational

effectiveness and work place improvement

30 years of experience in engineering, manufacturing & automation 22 years of experience in systems & process, manufacturingoperations and engineering

32 years of experience across sectors such as construction, cement

products and mineral processing

S RamaswamyVPGroup General Counsel

30 years experience in Legal & Company Secreta

Responsible for Group Corporate Law.



Escorts Agri Machinery (EAM)

Comprehensive range of

tractors with over 45

variants

European RangePowertrac 25-50HP(Midsize, Efficient Range)

Farmtrac 34-65HP(Premium Range)

Four plants - Farmtrac, Powertrac, Component, Crankshaft & Hydraulic - covering manufacturing area of 134,000 sq.m., with

production capacity of 100,000 tractors p.a.Poland plant, a 100% subsidiary, has an installed manufacturing capacity of 2,500 tractors p.a.

Leading Revolution in Agricultural Mechanization

A move from being a "Tractor Manufacturer"to a complete"Farm Solutions Provider"

An industry first,

EscortsJai Kisan Series

tractors address the

differentiated needs of

the modern Indian

farmer

ValuemaxxFor basic agricultural

purposes

LoadmaxxFor heavy haulage &

commercialapplications

SupermaxxFor all applications,agriculture/ haulage

InframaxxFor infrastructurebased applications

AgmaxxFor special PTO

operated agriequipment

Indian Market International Market-Farmtrac

Heritage Series



Industry: Drivers for Mechanization

Source: Dept. of Financial Services

0200400

600800

1,0001,2001,4001,600

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Padd Wheat Coarse Cereals

INR/Qunital

RISING MSPs

1% 5% 6% 8%11%

16%18%

20% 18%

0%

5%

10%

15%

20%

25%

0

40

80

120

160

200

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Average daily wage rate in rural India for men(INR)

y-o-y growth(RHS) Source: RBI

INCRASING RURAL WAGES

14.1 17.522.5

28 32.5 37.5

47.5

57.5

7034%

24%29%

24%16%

15%

27%

21% 22%

0%

10%

20%

30%

40%

0

20

40

60

80

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14E

Agri Credit Target (INR bn) growth y-o-y (RH

IMPROVED CREDIT

TARGETS

165.7191.7

262.3295.1 352.8346.5

345.8

441.2545.1

607.7

590.9

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Tractor Volumes ('000) Source: ICRA

HISTORICAL TRACTOR VOLUMES

Growth Drivers

Higher MSP for

key crops

Increasing

demand for food,

fuel & fiber

Ease of credit

availabilityIncreasing rural

wages

Demand of

safety & comfort



Tractor Manufacturer &Limited Reach

Building Brands &Expanding Geographies

Integrated Farm SolutionProvider

Our Approach

HISTORY CURRENTASPIRATIONS

GUIDING PHILOSOPHY

AMBITION

Focus on Premium

Segment

Highest commitmentplayer

Frequent Renewal of

Product Portfolio Cost Discipline

Application based

Product Segmentation



Farm Solution

FARMSOLUTIONS

Crop Focusapproach

Latest TechofferingsDedicatedChannel



Escorts Construction Equipment (ECE)Escorts entered into the field of Material Handling Equipment in 1971 and introduced the concept of

Pick-n-Carry Hydraulic Mobile crane.

Material HandlingEquipment Road ConstructionEquipment Earth MovingEquipment UtilityEquipment

Pick-n-Carry Cranes

Truck

Crane

Tower Crane

Vibratory soil

Compactor

Backhoe

Loader

Motor Grader

Telescopic

Handlers

Forklift Truck

Arial Work Platform

Crawler Crane

Tandem Compactor

Wheel Loader

Slew

Cranes

State-of-the-art manufacturing and assembly facility sprawling 250,000 sq.ft. of space, Capacity of 14,000 units p.a.


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0

100

200

300

400

Tranp

ort

Power

Others

Teleco

mIrrigati

on

Water

Supply

356.4

227.8

126.8 119.486.3 84.5

12th Five Year PlanFund allocation

0

100

200

300

FY08

FY09

FY10

FY11

FY12

FY13E

FY14E

FY15E

FY16E

FY17E

75.7 69.489.5 101.6 101.9

157.4181.2

206233.5

264.4

Infrastructure Spending - 11th & 12th Five YearPlan

Industry

Source: Planning Commission

Industry revenues estimated to reach US$ 22.7 billion by 2020from US$ 4.2 billion in 2011

Total infrastructure spend to be about 10% of GDP during the12th Five-Year Plan

Significant increase in rental and leasing business

Backhoe loaders & Crawlers excavators expected to account forsignificant sales

Significant increase in Replacement Market Sales

11thPlan

12thPlan


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Pick and CraneManufacturer / Limited

Reach

Leading CraneManufacturer, presence

across segments

End to End Solutionsprovider in Construction

Equipment Sector

Our Approach

HISTORY CURRENT ASPIRATIONS

GUIDING PHILOSOPHY

AMBITION

Expand market & retain

market leadership inCranes

Manufacturer of

Choice

Highest commitment

player

Attain significant

market penetration in

Earth MovingEquipments


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CompositeMaterial

SuspensionSystems

CouplersBrake Systems

Escorts Railway Products (ERP)

With over 40 years of rich experience in manufacturing of critical railway systems, Escorts has played a

major role in the modernization of Indian Railways.

Vestibule

Fire RetardantVestibule

Electro Pneumatic Brakes CBB for Freight application CBB for Coaching application CBB for EMU application

CBB for Loco application

Disc Pads for LHB / MetroCoaches

Air Brake System -

Passenger - Conventional &

Axle Mounted

Air Brake System - Freight

- Conventional & Bogie

Mounted

Electro Pneumatic Brake

System -

EMU/MEMU/DEMU

Pneumatic Brake System -EMU- AC/AC

Dampers

TV Type Shocker -Conventional Coaches

NTa Type ShockersEMU

Coaches with Air Suspension

Ta Type Dampers -

Conventional Locos

Dampers for LHB

Coaches, ABB Locos, EMDLoco, Self Propelled Cars

AAR H Centre Buffer Coupler-LHB / Main line Coaches

Semi Permanent Coupler -Schaku Type-

EMU/MEMU/DEMU

Automatic Coupler - KolkataMetro

AAR H Transition Coupler -LocosEMD/ALCO

AARH CBC

The manufacturing plant spread across an area of over 12,500 sq. meters, Houses superior production and testing facilities,inclusive of a research and development centre; ISO 9001:2008


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Source: Railways Budget 2013, Planning commission,Railway Ministry , Dept of Industrial Policy & Promotion

57.3 75.3109.6

132.8

240.3270.3

0

50

100

150

200

250

300

FY08 FY09 FY10 FY11 FY12 FY13

Indian Railways

Cumulative Increasing FDI

Inflows (US$ Million)

1920

7350

17000

2000

4000

6000

8000

2007-12 2012-17

Total Stock Rolling Stock

Investment Plans (INR Billion)

6.2 6.56.9 7.2

7.7 8.28.9 9.5

10.210.9

11.7

0

2

4

6

8

10

12

14

FY07 FY09 FY11 FY13F FY15F FY17F

Railways Planned Investment- 12thFiveYear Plan

Passenger Volumes (Million)

Growth Drivers

Infrastructure Building

Ex: Metro & Monorails

Increasing PPPGrowth in freight traffic Safety & Comfort

Rising transportation

demandModernization of

Indian Railways

7% 8% 8%

33%

44%

0%

10%

20%

30%

40%

50%

Gauge

Conversion

New Line Track

Renewals

Rolling

Stock

Others


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Metro & Monorail

33 rail-based urban projects involving investment of over Rs. 3,080

billion expected in India over next 10 years

24 Metro Projects - Investment of Rs. ~2870 billion

5 monorail Projects at Rs ~140 billion & 4 suburban rail

projects at Rs ~70 billion

Expected Investments in metro rail networks USD 42 billion by

2020 amount invested so far USD 16.7 billion

Over 2200 metro cars worth USD 3.45 billion would be added to

the existing fleet

222

810

0

100

200

300

400

500

600

700

800

900

2011-12 2016-17

Growth in Metro Network (KM)

India, 25Brazil, 15

Others, 5

Monorail Projects over the next 5 years across Asi& S. America ($ bn)

Source: Railways Budget 2013, Planning commission,Railway Ministry , Ministry of Urban Development


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Mechanical ComponentManufacturer

Component centric supplierto Indian Railways

Solution centric approach

Our Approach


GUIDING PHILOSOPHY

AMBITION

Focus on Electronic led

product innovation

Substantial export

Footprint Lean Manufacturing

Technology

partnerships to

complement futurerequirements


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Escorts Auto Products (EAP)

EAP pioneered the manufacturing of automotive shock absorbers in India and it continues to be one of

the leading manufacturers of auto suspension products

Shock AbsorbersTwo & Three Wheelers

Passenger cars

& utility

vehiclesCommercial Vehicles

McPhersonStruts

Steering Components

Telescopic Front Forks

Four Wheelers

Light

Commercial

Vehicles

Plant spread across in an area of 2,25,000 sq.ft., Capacity to produce 3.2 million shock absorbers and struts

and 0.3 million front forks


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EAP Key Customers


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The Indian auto component industrys turnover atUS$ 40.6 billion in 2012-13

Projected -US$ 115 billion in 2020-21

Industry estimated to grow at a CAGR of 14% till

2020

Exports were at US$ 9.3 billion in 2012-13Projected-US$ 30 billion in 2020-21

Demand for luxury & premium cars, higherdisposable income would help sustain the auto

component industry growth

1.2 million additional jobs & 3.6% of total GDP

contribution (from 2% in 2011-12) by 2020

26

35

9

1

4

25

Export Destinations

Europe

Asia

South America

North America

Australia

Africa

Industry

Source: ACMA


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Leading auto suspensionmanufacturer

Focus on 2W/3W shockabsorbers

Focus on high end Shox forPV/CV

Our Approach


GUIDING PHILOSOPHY

AMBITION

Optimum mix of OEM,After Market and Export

ExposureCost Discipline

Expand International

Presence

Focused Product

Offerings

Fi i l Hi hli h


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Financial Highlights

Headquarters Faridabad, Haryana, India

Initial public offering 1991 (BSE and NSE(India))

Workforce* ~ 8500FY12 Earnings

Revenue INR 3,894 Crore (USD 634.2 mn)

Net Profit INR 69.6 Crore (USD 11.3 mn)

EV/EBIDTA 6X12M FY13 Earnings

Revenue INR 4,149 Crore (USD 675.7 mn)

Net Profit INR 167.6 Crore (USD 27.3 mn)

EPS 14.05Market Share tractors 11.1%

Book Value Per Share 145.61Escorts Limited has extended its financial year by 6 months i.e. up to 31st March 2014 as approved by the Board of Directors in their meetingheld on 2nd October 2013. The results reported are for 12 months ended 30thSeptember 2013.

*Direct + Indirect workforc1 USD = 61.4 INR


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Profitability

Rs Cr

Turnover EBIDTA

3,893.9

4,149.0

FY12 12M FY13

182.2

264.5

4.7%6.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-

50.0

100.0

150.0

200.0

250.0

300.0

FY12 12M FY13

EBIDTA % to revenue

87.9

183.0

2.3%

4.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

FY12 12M FY13

EBT % to revenue

5.84

14.05

FY12 12M FY13

EBT EPS

Escorts Limited Financials


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Escorts Limited Financials

Particulars 12M Sept'12 12M Sept'13

Revenue 3,893.9 4,149.0

Material Cost 2,844.5 2,963.1

% to Revenue 73.1% 71.4%

Employee Cost 406.1 441.6

% to Revenue 10.4% 10.6%

Other Expenses 461.0 479.8

% to Revenue 11.8% 11.6%

EBIDTA 182.2 264.5

% to Revenue 4.7% 6.4%

Other Income 48.9 54.5

Exceptional Items (1.7) 0.8

Interest 96.4 81.7

Depreciation 48.4 53.5

EBT 87.9 183.0


TAX 18.3 15.5

EAT 69.6 167.6


Material Cost downby 1.6%

EBIDTA up by 169bps at 6.4%

PBT up by 215 bpsat 4.4%

Finance Cost downby Rs. 15 crs.

Turnover up by6.6%

S f


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Segment Performance

EAM79.76%

ECE12.43%

EAP

3.59%

ERP4.23%

12MFY13 Revenue

EAM73.67%

ECE18.94%

EAP

3.62%

ERP3.76%

FY12 Revenue

S k M k I f


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Rs. 115.10

Rs. 48.35/Rs. 125.35

12.26 Crs.Shares Outstanding

Current Market Price

52 Week Low/High

Stock Market Info.

As on 02.12.2013

Rs. 1,413.31 Crs.Current Market Cap

Sh H ldi P


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As on 30th Sept 2013

Promoters,41.97%

FII's, 12.27%

DII's, 4.66%

Body Corporates,

7.34%

Public & others,33.76%

Share Holding Pattern

R D l


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Recent Developments

The New Farmtrac Executive Series

Tractors that are designed with help from a leading European engineering

company.

The new Farmtrac Executive series tractors comes with new style,

improved operator ergonomics, and a host of world-class features.

Powertrac Diesel-Saver Plus

The new Diesel-Saver Plus series enhances power of the current

engines by about 10%, and at the same time reduces their fuel

consumption by 10%.

R t D l t


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Recent DevelopmentsGlamour & Sophistication to the World ofTractors

Ferrari Orchard Tractor a revolutionary new machine and a

technology wonder, for the high value Orchard Farmers.

All four equal-sized wheels.

Oscillating chassis system

All-time 4 wheel-drive.

Front-engine mounting for super-low turning radius and an ideal weight

distribution.

Backhoe Loader offering has been strengthened:

The new DigMax II series backhoe loaders are highly fuelefficient, more productive and exceptionally reliable

machines packed with host of new exciting features like:

Equipment monitoring system communicates with you

through Voice messaging system in nearly 21 Indianlanguages as per customer preferences , FM & USB

Infotainment system , Outrigger alarm, Two side Horn,

Spacious all weather Cabin Etc.

R nt D l pm nt


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Recent Developments

International Launch of Tractors at Hannover AGRITECHNICA

201311thNovember

Going Global Strategy Escorts to focus on several new markets in the European region, Latin

America and South Africa and provide the best of technology at an affordable price. The Company

will further expand its current presence in ASEAN countries, Africa and pockets of Europe. The

European markets in focus are Germany, UK, France, Turkey, Italy and Spain.

Farmtrac Europe-lineproduct range would cater to the high HP segment, i.e. up-to 110 HP. TheUSP of the product range is that it comes with world class components at a price structure at a

competitive price

Farmtrac Heritageproduct range would cater to sub 80 HP segment. The USP of this range would

be its classic finish, which is simple yet highly efficient. The same Heritage series would be a great

choice for small farms where in the use of a very large, sophisticated tractor cannot be justified.

Recent Developments


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Recent Developments

RT 40 Slew Crane40T Class4 wheel drive 4 Wheel Steer- Rough Terrain

Crane

Ergonomically designed controls for smooth and precision

handling of loads

Haulage Tractor M 1000 Multi loader Safe Cranes

Recent Developments


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Recent DevelopmentsBogie Mounted Brake System (BMBS)

Escorts-make BMBS is based on the floating concept of braking supported by the four-bar

mechanism concept. The system is designed for higher rigging efficiency and reduced number ofcomponents, for achieving better brake force on all the wheels. The system is also equipped with

Hand Brake Mechanism.

Use in all types of Railway Freight Wagons of Axle load of 20.32 tonne and more such as BOBRN,

BOBRNHS1M, BOXN, BOXNHL, BCN, BCNA

Award & Achievements


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Award & Achievements

Escorts Agri Machinery won the Rural Marketing Association of India

Gold AwardsEscorts CIO wins top Information Security Award

Escorts received the Best Supplier award from Suzuki

Motorcycles India for two consecutive years (2012 & 2013)

Escorts was awarded the Star Performer Award in the two & three

wheeler auto component category at the 44thEEPC INDIA National

Awards for Export Excellence

Safe Harbor


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Safe Harbor

Certain statements in this document may be forward-looking statements. Such

forward-looking statements are subject to certain risks and uncertainties like

regulatory changes, local political or economic developments, and many other

factors that could cause our actual results to differ materially from those

contemplated by the relevant forward-looking statements. Escorts 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.


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Escorts Limited |www.escortsgroup.com

Email us @ [email protected]

Corporate Centre | 15/5, Mathura Road, Faridabad121003+91-129-2564711, 2564921, 2564558
http://www.escortsgroup.com/mailto:[email protected]://twitter.com/escortsgrouphttp://www.youtube.com/channel/UCr9EmkZ6v491diJcSqUQ0cQhttp://www.linkedin.com/company/escorts-limitedhttps://www.facebook.com/ESCORTSGROUPmailto:[email protected]://www.escortsgroup.com/

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