ANNUAL INVESTOR CONFERENCE st May 2013, Mumbai

Transcription

1 ANNUAL INVESTOR CONFERENCE st May 2013, Mumbai

2 RPG Group $3 bn Global & diversified Indian business group TYRE INFRASTRUCTURE Presence in key sectors of economy SPECIALITY IT 2

3 Group Vision We shall be a leading Indian group with a focus on: Leadership in profitability and revenue growth in our chosen business Being a customer - centric organization Being the most exciting workplace Thus creating shareholder value 3

4 Group - Long Term Strategy Regional dominance in Tyre sector Auto penetration in semi-urban / rural area offers growth opportunities India cost advantage can be taken to the world Looking to grow in South Asia region Global Power EPC to Infrastructure EPC major Infrastructure - key to industrial and economic growth Presence in developed as well as developing markets Asset light model; proven execution track record $1bn company by FY16 and profitable growth thereafter Indian IT has remained a global powerhouse Evolution from technology providers to strategic business partners to drive future growth 4

5 RPG Group: Journey so far Building Scale profitably... Revenue grew by 20% while PAT grew by 17% CAGR in the last 4 years Group revenue doubled in last 4 years from Rs 8000cr to Rs 17000cr. Group operating profit at Rs 1200 cr Driven by... Investments... Over Rs 1,100 crs invested in capacity expansion in last 3 years. Strategic Acquisitions... Akibia & SAE Towers Partnerships... Set up strategic JVs in key markets such as Sri Lanka, Bangladesh to leverage local partner s advantage, tie-up with tyre outsourcing partners in India Funding growth through internal accruals... Against a total investments & acquisitions of ~ Rs 1,900 Cr, outstanding debt against these investments of only ~ Rs 1,000 Crs as on date Global Player... ~42% revenues from global business. Attracting talent...with mix of skills, nationality and professional background 5

6 CEAT Trends and Opportunities Export play: Asia becoming the manufacturing hub for Auto & Tyres; India Cost advantage Leverage global brand and distribution network in over 100 countries Passenger segment play: Leadership in two-wheeler and UV segment Strong brand presence; high customer recall Emerging markets play: Leader in Sri Lanka; replicate success in Bangladesh Proven competitive advantages to lead higher growth & improve margins 6

7 KEC Overview and Strategy Overview: 1.3 billion dollar enterprise with 55% plus business from international markets Footprints in 48 countries; 8 manufacturing facilities across India, Brazil and Mexico Global workforce; 23% non-indians with diverse nationalities Key strategic drivers: Maintain global leadership in Transmission business; expand construction activities in Americas Build new businesses such as Power Systems, Railways and Water through partnerships; expand internationally by leveraging transmission business global network SAE Towers acquisition is successful; generated $ 66mn EBITDA in 2.5 years against acquisition value of $ 95 mn; plans to increase presence in poles segment Increase presence in EHV cables through new facility at Vadodara Entry into Wind and Solar EPC Opportunistic acquisitions 7

8 ZENSAR IT Sector and Way forward IT Sector Highlights The $ 100+ Bn industry is projected to grow at 13% for the year as against the Global IT Industry growth of about 6% Strategic Imperatives for IT Service Providers End to End Solutions New trend areas including Cloud, Mobility, Social Media and Analytics Non-Linear Play ZENSAR: Focus areas for FY11- Fy13 Integrated Application Infrastructure management solution with acquisition of Akibia Structured the organization with focus on key Verticals Move from Time and Material to Managed Contracts Way forward Strong vertical propositions and arrowheads in focus verticals Focus on Larger Deals Focus on expanding Fortune 1000 Customer base 8

9 Speciality Business Update RPG Life sciences Biotech - Turnaround during the year- Growth in product yields & higher sales in India & LATAM markets - 72% growth in top-line and a positive PBT Formulation Business (Domestic) - Focus brands to drive growth Business affected by certification issues. Now resolved. Harrisons Malayalam Limited Tea - Modernisation of factories to exploit both export and domestic demand; replantation to improve yield per hectare Rubber - Extensive re-plantation with most modern clones of high yielding potential; plan to produce value added rubber using captive latex production Raychem RPG (Unlisted) 50:50 JV of TE Connectivity (formerly Tyco Electronics), USA and RPG Group, India A multi-product & solutions company catering to Energy (T&D), Telecom, Oil & Gas Investing in R&D to create a pipeline of high-tech products Turnover of over Rs 600cr in FY13 9

10 People practices as a differentiating strategy Core values: Respect and value people; Empowerment key to unleash individual potential Forward looking and quick to adopt cutting edge people practices: Balanced score card to promote performance oriented culture 360 o feedback for self development Elaborate career and succession planning Young executive board as a shadow board in all companies Self managed teams at all new factories Amongst the best employee satisfaction scores Able to attract talent with diverse skills & nationalities 10

11 PROFITABLE GROWTH IN UNCERTAIN TIMES

12 Emerging markets driving world growth; Asia becoming the manufacturing hub for Tyres Performance of world markets Sales 2010 Mn Units Growth rate CAGR, Global & regional tire production and sales, 2010 Mn units Africa/ Middle East Asia/ Pacific 9.51 Sales Production South America 5.05 Central& Eastern Europe 4.63 Western Europe North America Source : Internal Analysis North America South America Western Europe Central and Eastern Europe Asia/ Pacific Africa/ Middle East 12

13 India: Product mix is slowly changing with a clear shift towards non-truck segments; however T&B still ~50% of the market Sales growth and split of tyres All India ` crore, % Historical CAGR 25,110 26,730 28,580 28,615 33,705 36,900 38, % Truck Bus % 2/3 wheelers Passenger Cars Jeep LCV % 4% 7% Tractor overall Industrial OTR % 7% 10% Source : Internal Analysis FY06 FY07 FY08 FY09 FY10 FY11 FY12 13

14 CEAT Strategic Drivers Profitable Growth Exports Competitive Advantage CEAT global brand Emerging markets Proven model in Sri Lanka Replicate in Bangladesh Passenger segment Brand recall Barriers to Entry Brand Building Channels Expansion Asset Light Model Proven competitive strategies 14

15 A BILLION DOLLAR GLOBAL INFRASTRUCTURE EPC MAJOR

16 KEC An Indian multinational infrastructure EPC major EPC Major 1.3 billion dollar enterprise Doubled sales in last 4 years 50%+ revenue from outside India Executing 100+ projects Business Portfolio Global leader in Power Transmission EPC Growing presence in Power Systems, Cables, Telecom, Railways and Water Multi-Locational Manufacturing 8 Manufacturing facilities across India, Brazil and Mexico Manufactures Towers, Cables, Poles and Hardware Global Presence Spread across 6 continents Footprints in 48 Countries Currently operating in 30 countries Global Sourcing Material Working capital funding Equipment Manpower Global Workforce 5,000+ employees 23% non Indians Diverse nationalities 16

17 Growth Enablers - Infrastructure sector Ability of citizens to pay Growing middle class population Focus on better quality of life Growth Enablers - Infrastructure Sector Government Policies Land acquisition and Right of Way Environmental clearances Payment security of PPP projects Financial health of distribution companies Stable tax policies Infrastructure planning Funding availability Multilateral agencies funding (JICA, AfDB, EBRD, World Bank, ADB etc.) Increasing private sector participation FDI Cost of capital 17

18 Growth Enablers - KEC Strong Industry Fundamentals Power, Telecom, Railways and Water: Basic infrastructure needs for economic development of all the developing & underdeveloped countries Each of our business has large global potential Strong Balance Sheet Superior working capital management Ability to grow through internal accruals; no equity dilution in last 15 years Credit Rating: A+ & A1 Ability to borrow for growth Growth Enablers - KEC Diversified Presence Well balanced business portfolio : 6 businesses Global presence: Ability to secure business from across the world Presence in developing markets as well as developed markets; 20%+ sales from Americas 18

19 KEC Strategy Product Expansion Entered in Power Systems, Railways, Cables, Telecom and Water; contributes 30% of sales Established new facility for EHV cables at Vadodara Exploring opportunities in Solar and Wind EPC Monopoles business in US; Increasing capacity at Mexico Hardware product portfolio expanded in Brazil Geographical Expansion Enter new countries every year Expand foothold in South America Strengthen presence in SAARC & Southeast Asia Expand each businesses internationally by leveraging strong global presence KEC - Strategy Business Expansion Expand prequalification (PQ) base for new businesses Acquisition of 220 kv cables PQ Target construction opportunities in Americas Increasing tower manufacturing capacity in India at existing plants M&A: Proven track record; Continue to look for opportunistic acquisition 19

20 To sum up.. KEC has all the key enablers and strategies in place, To capture the growth opportunities In a Multi Billion Infrastructure Sector 20

21 STRONG FOCUS ON OUTCOME LED PROPOSITIONS

22 ZENSAR at a glance 22% CAGR for Revenue and PAT in the last 5 years 2115* crores FY13 Revenues 175* crores FY13 PAT Employees * In INR ** Harvard Business School 290+ Active Customers 20+ Global Locations #13 in NASSCOM Top Indian IT Providers 2 Case Studies by HBS** on ZENSAR 22

23 LEAN INNOVATIVE CUSTOMER CENTRIC COMPLIANT INFORMATION DRIVEN EXPANSIVE Aligning with customer needs AGILITY WILL SET THE LEADERS APART MANUFACTURING Supply Chain Efficiency Shop Floor Efficiency Shop floor to Top floor decision advantage M&A Efficiency Business Impact Sourcing RETAIL Source To Store Supply Chain Optimization Accelerate ROI in Omni-Channel Customer behaviour driven revenue growth Business Impact Sourcing INSURANCE Policy Administration Efficiency Insurance SME led Managed Services Customer Integration through mobility Claims Management Efficiency 23

24 While giving more bang for the buck in traditional services Commitment to the Customer 30% Savings QUANTIFIED SAVINGS Over 3 years IMMUNITY to Technology OBSOLESCENCE SINGLE POINT SLA ASSESSMENT & PLANNING TRANSITION MANAGE & OPERATE OPTIMIZE TRANSFORM & TAKE OVER MANAGE Transformed Environment CONTINUOUS Improvement DISCOVER EXECUTE AND IMPROVE 24

25 ZENSAR - Growth Enablers IT-IM-BPM Integrated Solutions Attain Partner of Choice status in chosen Vertical/Solutions/ Technologies Number 1 Mid-Tier Strategic IT Partner Top 3 Oracle ecosystem partner for Manufacturing Company Number 1 Mid Tier Partner for Analytics and Big Data (MRD) Digital Economics (Social Media, Cloud, Mobility) Achieve Accelerated Growth Investment in a large team focusing on Big Deals Majority of business from F1000 Meaningful M&A Attain Best in Class in chosen Business Metrics 25

26 MANUFACTURING RETAIL BANKING AND FINANCIAL SERVICES INSURANCE HEALTHCARE ZENSAR - Solution Portfolıo Process and Business Consulting Solutions CONSULTING Focus on domain capabilities and outcome led models for business Strong presence across services Acquisitions in white spaces SAP, Cloud, PES, IM Focus on Business Outcomes INFRASTRUCTURE MANAGEMENT BUSINESS PROCESS MANAGEMENT MANAGED SOURCING APPLICATION MANAGEMENT 26

27 RPG LIFE SCIENCES LIMITED

28 RPG LIFE SCIENCES - Update & Way forward Overview: RPGLS- An integrated Pharmaceutical Company : Presence in API (Synthetic & Biotech) and Formulations (Branded Generics India & RoW markets, Generics- Regulated Markets) Performance highlights: API Received EU GMP certification for Synthetic API facility at Navi Mumbai Biotech - Turnaround during the year Growth in product yields & higher sales in India & LATAM markets - 72% growth in top-line and a positive PBT Formulation Business (Domestic) - Year of consolidation Way forward: Drive growth through: New Product Developments in both API and Formulations Geographical Expansion with increased presence in the Regulated Markets Strengthen the Domestic Branded Generics Business 28

29 Q & A 29

30 T H A N K Y O U 30