powerpoint presentation · who we are 2 full-fledged state of the art production facilities...
TRANSCRIPT
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May, 2018 1
Action Construction Equipment Ltd.
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Who We Are
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Full-fledged state of the art production facilities supported by a strong R&D backbone.
Established brand with a significant presence across the Indian construction, infrastructure, logistics and Industrial landscape.
India’s leading material handling and construction equipment manufacturing company.
Enjoying over 63% market share in the Mobile cranes segment and 60% market share in Tower Cranes segment.
Widest sales and service network operating from 100+ locations.
15000+ strong Customer base including all the leading names.
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Our Philosophy
“To be the largest Company in Cranes and Construction Equipment Sector, with a Global Focus”
Mission
Provide customers with latest technology, construction equipment and effective Pre sales and after sales support aimed at satisfying their real needs
Integrated Enterprise
Leveraging the strengths and unique capabilities of our businesses
Measures
Delivering results today, within each business, while building for the future
Strategy
Product Development │ Market development │ Market Penetration
Our Aspiration
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Cranes
Material Handling
Road Equipment
Agriculture Equipment
Truck Cranes Crawler Cranes Fixed Tower Cranes
Backhoe Loader Wheel Loader Soil Compactors & Tandem Vibratory Rollers Motor Graders
Tractors Harvester Combines Wheel Harvesters Rotavators
Forklift Trucks Warehousing Equipment
Lorry Loader Cranes Pick and Carry Cranes Self Erecting Tower Cranes
Products
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State of art Production Facilities
Total owned area: 82 acres
Utilised area: 30 acres
Facilities
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Key Drivers
Infra Development
Demand for Housing
Job Creation
Demand for
improved
Urban
Infrastructure
Expansion In GDP
Increased
Income
Source: industry data
6
• Government focus on Infrastructure, Railways, Roads, Metro, Defence, Housing and Smart Cities etc. • Industrial Capex Cycle • Higher GDP growth rate • Growing mechanization in the construction, agriculture and manufacturing sectors • Increased Private sector participation and opening of FDI • Ease of availability of finance for material handling & construction equipment • The Indian construction equipment market has the potential to grow to US$ 5 billion by FY 2020 from US$ 3 billion in FY 2016 • Infrastructure spending to be about 9% of GDP by FY 2020 from 7.20% in FY 2017
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Key Infra Projects
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Roads : Bharat Mala Phase-I – 35000 Kms PMGSY (Pradhan mantri Gramin Sadak Yojna) – 57000 Kms. Mumbai Trans harbour Link (MTHL)
Railways : Dedicated freight corridor High Speed Rail Project ( Ahmedabad – Mumbai ) Re-development of 600 Major Railway stations 3600 Kms. Of track removal
Airports : Increasing airport capacity by 5 times Navi Mumbai Airport 50 locations for Reconstruction
Housing : PMAY ( Pradhan Mantri Awas Yojna ) 1.2 Crore houses by 2022 Sanctioning @ 3-5 Lacs houses per month
Industrial : Corridor
DMIC ( Delhi Mumbai Industrial Corridor ) USD 100 Billion over next 10 years
Ports : Sagar Mala – comprising of 400 projects
Metro Rail : Delhi, NCR, Mumbai, Ahmedabad, Jaipur, Lucknow, Kolkatta, Bangalore, Hyderabad, Chennai
Urban : Infrastructure
City Roads, Bridges, Flyovers, Water, Sewage etc. being built all across
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ACE in the forefront
Future ready infrastructure
• Under utilized manufacturing facilities in place for future revenue growth
• Present utilization levels 30%-75%, no further major CAPEX envisaged ( Land Utilization – 37%) • Establishing new product categories
Ability to Counter and Capture
• Quality and Reliability Focus
• Competitively priced – cost effective products • Fastest after-sales product support through a countrywide network (100+ locations) equipped with genuine
parts and trained engineers Strong emphasis on research and development
• Investments in R&D to ensure international quality standards
• Thrust on continued innovation and Value engineering • Only construction equipment company in India whose R&D department is recognized by DSIR – GOVT. of INDIA
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Opportunity
Vibratory
Rollers
Crawler Cranes
Forklifts
Motor graders
Backhoes
Tractors
Tower
Cranes
Pick and
Carry Cranes
Harvester
Combines
Construction,
Railways,
Metro,
Urban Infra
Steel, Cement, Power, Hydel,
Power Distribution
Engineering Industry, Mining
Roads, Ports,
Pipelines, Refineries
Agriculture
Infrastructure and
Agriculture
The future economic
drivers
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Indian Defence : Cranes, Forklifts, Skid Steer Loaders, Multi Purpose Tractors, Tele handlers and special mobile equipment.
ACE – URSUS MOU : (Massey Ferguson Technology
Tractor) for Re-export and domestic markets. North Eastern States : Increased focus on Infra
development
Exports : Increase in export revenue and %age contribution from INR 480 Mn. (4.5%) to INR 2000 Mn. (11%) over next 2-3 years.
Foray into AWP segment (Aerial Work Platforms)
Evolving Opportunities
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ACE Edge
Extensive range of products
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Value for money
propositions
Established Brand Name
Highly capable and qualified management
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Established Brand Name
India’s largest Mobile Crane and Tower Crane Company
“ACE” brand name is synonymous with product excellence, quality, product
support and customisation
Most awarded Construction Equipment Company in the Country.
ISO 9001 certified - stringent quality standards for design, development,
procurement, manufacturing, testing & installation.
Most ACE products are CE Certified – key indicator of a product's compliance
with EU standards
15000+ satisfied customers including all large names in the country.
In House Training Centre
Edge
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Extensive Product Range
Widest range of products with better specifications & capacities at reasonable price points translates to improved efficiency, productivity and cost saving for customer.
ACE equipment is rugged, simple to maintain and designed to suit Indian work conditions.
Nearly all products developed indigenously.
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R&D Facility
Expansive
range of
products
Customers benefit from single window service.
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Edge
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Ashok Tomar Head – Tractors
Qualification - B.Tech.(Agril.Engg.) Industry Experience – 34 years
Pradeep Sharma Head – Cranes & Construction Equipment
Qualification – B. Tech Industry Experience – 39 years
Promoted by Mr. Vijay Agarwal in the year 1995; went public in the year 2006
Md Imteyaz Ahmed Head – Agri division Qualification – M.Tech (Engineering) Industry Experience – 35 years
Sorab Agarwal Executive Director
Qualification – BE (Mech Engg), Industry Experience –20 years
Rajan Luthra CFO
Qualification –ICWA, CS, PGPM Industry Experience – 35 years
Vijay Agarwal Chairman & Managing Director
Qualification - BE (Mech Engg), MBA, Industry Experience – 48 years
Highly
capable and
qualified
management
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Edge
Value for money proposition • Reliable Value for money product offerings: latest technology at
competitive price points.
• Offering the fastest after-sales product support.
• Customer Centric Solutions .
• Focused on further increasing the sales and service network and dedicated spares parts division.
• Pan-India presence through a network of 83 sales and service locations, supported by 21 offices based at Delhi, Mumbai, Chennai, Kolkatta, Ahmedabad, Surat, Pune, Jaipur, Chandigarh, Ranchi, Raipur, Indore, Bhubaneshwar, Lucknow, Jamnagar, Hyderabad, Bangalore, Guwahati, Patna, Vizag & Kochi.
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Nationwide Sales & Service Network
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Awards 2017
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Milestones
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Customer base
5 99 211 339 497 576 692 805 976 1324
… & many more high profile
clients
3368
12010
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2016
Nu
mb
er
of
cu
sto
mers
Key Customers
18
4722
5995
7320
8962
15040
2065
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Cranes
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Product
Mobile Cranes
Market leader - 63% Market Share Operating at 75% capacity
Market Environment
Buoyant demand leading to scarcity Average life of mobile crane 10-12 years,
strong replacement market
Strategy Going Forward
Our Position
Current Capacity Classes 9 tonnes – 40 tonnes High quality offering with equitable pricing Application – Versatile cranes that can be used
for a wide range of lifting needs, both on and off road
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Focus on improving market share - crossing the next milestone 70%
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Product
Crawler Cranes
No. 1 position in India ( upto 75 Tons ) Presently operating at 20% current
capacity utilisation
Leverage on strong brand equity to improve market share
Market Environment
Strategy Going Forward
Our Position
21
Capacity Class : 25 Tons – 75 Tons ( 150 Tons under development)
Application : Crawler cranes have the highest lifting capacity in any type of mobile cranes, primarily used in heavy engineering, petrochemical industry, power plant construction, infrastructure projects and wind power
Crawler cranes demand set to increase with revival in the Infra and Construction sectors
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Product
Tower Cranes
Market leading position (~60% share )
Current Capacity utilisation is 40%.
To leverage Capacity opportunity .
Market Environment
Key Drivers - Increasing construction of multi-storeyed buildings, translating into expansion in demand.
Precast construction leading demand for bigger cranes.
Our Position
Maximum lifting heights of 300 metres and a working radius of up to 70 meters.
Used in construction of multi storey buildings and infra projects.
Strategy Going Forward
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Electric, Diesel and LPG operated Forklift Trucks
Capacity Class : 1.5 tons - 10 tons
Forklifts
No. 3 player in the market - ~ 18% market share
Expertise and capabilities available to achieve leadership position
Operating at 40% capacity
Development & expansion of corporate sales channel through dealer leverage
Market Environment Key customers are corporates – used mainly in
factories Key Driver - Increase in logistics and warehousing
activities to drive sales Huge potential in the segment with high margin led
growth
Strategy Going Forward
Our Position
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Product
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Road Construction Equipment
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Product
Road Construction
Equipment
Operating at ~ 25% -30% capacity utilisation. Our products are competitively priced, offering
equivalent quality with cushion to raise prices once volume picks up.
Leverage existing sales network to grow road construction equipment business.
Leverage existing customer base.
Market Environment
High growth segment expected to grow at ~70% CAGR for next 3-5 years.
Key Drivers – pick up in construction and infra activity.
Strategy Going Forward
Our Position
Value for money products, with latest technology. Application - Used for digging, moving, grading, compacting
and loading earth and other loose aggregates, also find application in industrial and mining activity.
Current Capacity Class
Soil compactors : 10 - 12 tonnes
Tandem compactors : 3.5 – 9 tonnes
Motor Graders : 150 – 176 Hp
Backhoe : 1 Cu.M
Loader : 3 and 5 tonnes
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Agriculture Equipment
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Tractor Industry in
India
Key Strengths of Agriculture Industry • Increasing trend towards Mechanisation • Minimum Support prices for Key Crops • Scarcity of Labour • Ease of Credit Availability from Govt.
Future Prospects • According to CRISIL Research, domestic tractor sales are expected to
close fiscal 2018 with impressive 16%-18% growth • The long term growth fundamentals of industry are strong with
lowering of the replacement cycle.
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Presence across northern states of Haryana & Uttar Pradesh, focusing on PAN India Presence.
Cash flow positive business with negative working capital and zero credit on Tractors.
Operating at 50% capacity
To increase presence and brand awareness in West and South India.
Increase supply and focus on Marketing & Promotion activities.
Focus on Export already supplying to Egypt, Afghanistan, Bangladesh and Nepal.
Value for money products, offerings with latest features. Presence across product ranges in 35, 45 & 50 HP
and now upto 90 HP category .
Market Environment
Strategy Going Forward
Our Position
Tractors
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Product
Increasing trend towards Mechanization. Minimum Support prices for Key Crops. Scarcity of Labour. Ease of Credit Availability from Govt.
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Range of Agriculture Equipment
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Tractors
Rotavators
Wheel Harvester
Track Harvester
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Presence
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Madhya Pradesh
Punjab
Uttar pradesh Bihar
Jharkhand
Existing Operations
Expanding
Just Open
Delhi
Karnataka
Andhra Pradesh
Tamil Nadu
Chhattisgarh
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FINANCIALS
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P&L Perspective
615 598 637 751
1086
0
200
400
600
800
1000
1200
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
Net Operating Revenue (`cr)
31 32 40
48
100
0
20
40
60
80
100
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
EBITDA (`cr)
4 7 9
20
53
0
10
20
30
40
50
60
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
PAT (`cr)
0.4 0.7 0.7
1.2
4.5
0
1
2
3
4
5
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
EPS (‘Rs)
Note: 1. Figures for the FY18 and FY17 are after considering the impact of Ind AS.
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Balance Sheet Perspective
251 256
310
357
406
0
50
100
150
200
250
300
350
400
450
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
Net Worth (`cr)
26 28
30
38
48
0
10
20
30
40
50
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
Cash in Hand (`cr)
150 138
154
114
78
0
20
40
60
80
100
120
140
160
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
Borrowings (`cr)
6 8
9 9
19
0
5
10
15
20
31/03/2014 31/03/2015 31/03/2016 31/03/2017 31/03/2018
Return on Capital Employed (%)
Note: 1. Figures for the FY18 and FY17 are after considering the impact of Ind AS. 2. Borrowing includes Preference Share Capital of Rs.17 Crs in FY18 and Rs.30 Crs in FY17 & FY16.
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Lifting India’s Infrastructure Growth