investor meet - sudarshan · investor meet september 2016. what are pigments? addressable markets...
TRANSCRIPT
What are Pigments?
Addressable markets
From local dominance to global leader– Strategic development– Infrastructure– Competitive advantages– Culture– Financial overview
Key Messages
2
Overview
It is dry color powder, Insoluble in medium but easily dispersible in medium (Resin/binder)
5
Pigment - Definition
India market estimated to be USD 235 Mn = Rs. 1550 crs.
8
Market size of Organic Pigment
GLOBAL
USD 5.5 Bn
RELEVANT
USD 3.5 Bn
PLASTIC + COATING
USD 1.25 Bn
Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy which can be divided in four phases
Strategic Development – Journey
Phase-II
Next Leap in technology(1989-2008)
Phase-I
Establishing the Business
( Before 1989)
Phase-IIIPhase-IV
Becoming the Market Leader
(Post 2020)Going Global(2008-2020)
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Current Phase
Strategic Development – Pigment Focus
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60%
90%
40%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004-05 2015-16
Agro
Pigment
Agro business - Margins are low - Working capital cycle is long
Strategic Development – Phase III Objectives
• Increase global share
• Become a 1st division Global player
• Be among top-4 pigment players in the world
Phase-III
Going Global(2008-2020)
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Low end markets Specialized marketsGeneral Printing Inks
Plastics
Coatings
Automotive Paints
Machine Colorants/Decorative Paints
Plastics
Cosmetics
Commodity Pigments Specialty pigmentsChromes & Cadmiums
Blue Green
Azos
High Performance Pigment
Specialized Azos
Specialized Effects
Toll manufacturing Direct market access
Industry Shift
+
+Product Shift
Model Shift
Brand Shift
Strategic Development – Phase III
Europe Office
North America Office
Global Head Office
Infrastructure - Global Presence
Brazil Office
China Office
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Mexico Office
Infrastructure - India
Global Head office in Pune
R&D in Ambadwet near Pune
India based Manufacturing
Roha
Mahad
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Infrastructure - Sales
Well established distribution network across the Globe
11 Sales offices
50+ member Sales team
(Brazil, China, Europe, India,, Mexico, Turkey,)
60+ channel partners
20+ Stocking points
Sales across 150+ countries
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Competitive Advantage – Reliability
We achieve excellent product and process reliability
Product consistency and process control
ISO 9001
Six Sigma
We conduct over 800 tests
We guarantee over 4,000 specifications
Reliable technical information
ISO 17025:2001 Our laboratories are certified by the National Accreditation Board for Testing and Calibration Laboratories
Reliable service Oliver Wight Class A Certificate
We are recognised for operational excellence in supply chain management
Easy access to order information
SAP We use fully traceable business processes
Environment & Occupational health
ISO 14001
OHSAS 18001
We ensure safety for our plant operatives.
British Safety Council 5 Star Rating
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We spend over $2million every year on research, development and technical service, with over
100 technicians in 3 laboratories.
Competitive Advantage – R&D and EHS
We spend over $4million every year on environmental compliance with a $3.4 million effluent plant. All plants are ISO 14000: OHSAS certified.
Technology
Health, safety & environment
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Won 5 star BSC rating in 2012 for Roha and Mahad
Competitive Advantage – Why Sudarshan?
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• Pigment Focus – don’t compete with our customers
• Breadth of the product range
• Reliability
• Customer Partnerships
– R&D
– Technical Service
– Customer Service
• Culture and Values – ease of execution and focus
Financial overview - Overall
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7,853 10,267 10,883 12,073
10.4%
12.5%12.2%
14.0%
8.4%
13.5% 13.8%
18.5%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2012-13 2013-14 2014-15 2015-16
INR Million PBDIT % ROCE
Sales CAGR 15.4%PBDIT CAGR 27.5%
Sales INR Mn
6,967 9,167 9,628 10,734
13.8%14.6%
15.3%
18.4%
6.5%
13.3% 13.5%
22.5%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
23.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
2012-13 2013-14 2014-15 2015-16
INR Million PBDIT ROCE
Financial overview - Pigments
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Sales CAGR 15.5%PBDIT CAGR 27.2%
Sales INR Mn
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Financial Overview – Q1 2016-17
– Strategic Sourcing initiatives
– Manufacturing cost reduction
– Firm budgetary control
Q1 2016-17 Corporate Pigment
Sales INR Million
3,368 2,835
PBDIT % 18.2% 23.4%
Financials - Sales Split
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Exports48%
Domestic52%
2015-16
CAGR over 4 years Exports CAGR 19.2% Domestic CAGR 12.0%
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Financial overview – ROCE
• Capital investment towards high margin and high growth product lines
• Consistent focus on reduction of working capital; NWC as percent to sales reduced from 34% to 22%
• Margins are improved with various strategic initiatives
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Key Messages
Growth engine – in pursuit of the visiona. From a non existent to the 5th largest producer in the last
7 yearsb. Received Government permission and signed a MOU for
Rs. 1000 crs investment
Customer PartnershipTop global coatings, plastics and cosmetic players have engaged us as a strategic partner
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Key Messages
Reliability and Sustainabilitya. British Safety Council – Sword of Honorb. Amongst the top suppliers in the world, which meet the
stringent social compliance norms of the CosmeticIndustry
Cutting Edge TechnologyIntroduced 100+ new products – High Performancerange, Cosmetic range
Culturea. Among “Top 50 Dream Companies to Work”b. Strong culture enables ease of execution and focus