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Corporate Presentation Sept 2019 .pdf
- 1. Corporate Presentation One Of The Leading Container Glass Manufacturer
- 2. This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by AGI glaspac. By attending the meeting where this presentation is being made or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared for use in presentations by the Company for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or initiation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not constitute a recommendation by the Company or any other party to sell or buy any securities of the Company. This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notified and in force or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended. This presentation and its contents are strictly confidential to the recipient and should not be further distributed, re-transmitted, published or reproduced, in whole or in part, or disclosed by recipients directly or indirectly to any other person or press, for any purposes. In particular, this presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. No person is authorised to give any information or to make any representation not contained in or inconsistent with this presentation or/and if given or made, such information or representation must not be relied upon as having been authorised by us. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. Any failure to comply with this restriction may constitute a violation of applicable securities laws. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither the Company nor any of its affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Unless otherwise indicated, the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and other sources and has not been independently verified by us. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. THIS PRESENTATION IS NOT AN OFFER FOR SALE OF SECURITIES IN INDIA, THE UNITED STATES OR ELSEWHERE. Disclaimer Slide 2 of 40
- 3. • 1960: Incorporated as Hindusthan Twyfords Limited, with a technical collaboration with Twyfords, UK, to introduce vitreous china sanitaryware in India • Recognised by the iconic brand‘hindware’ • The first sanitaryware company to be featured in the Fortune India 500 list in 2014, the Company continues to be featured in the 2017 list as well • Listed on NSE and BSE; market capitalization of Rs. 2,684 crore as on 31st March 2018 (as per NSE) • Revenue and EBITDA for FY 2017-18 were 2,250 crore and ` 282 crore, respectively • Four focused business segments, namely the Building Products Division (BPD), Consumer Products Division (CPD), Retail Division and Packaging Products Division (PPD) • 11 manufacturing facilities 46% Share in overall business 9% CONSUMER PRODUCTS `208 crore Revenue from operations 4% Share in overall business RETAIL Share in overall business `96 crore Revenue from operations 41% PACKAGING PRODUCTS `920 crore Revenue from operations Business Divisions FY 2017-18 Revenuebreakup BUILDING PRODUCTS `1,029 crore Revenue from operations Ownership profile *As on 30th June 2018 Promoters 48.43% FIIs/DIIs, MFs 30.93% Others 20.64% Share in overall business HSIL Snapshot Slide 3 of 40
- 4. PRODUCTS FACILITY CAPACITY Sanitaryware Bahadurgarh (Haryana) Up to 2 million pieces per annum Bibinagar (Telangana) Up to 2.2 million pieces per annum Faucets Kaharani (Rajasthan) 2.5 million pieces per annum Bhiwadi (Rajasthan) * 0.5 million pieces per annum Plastic pipes and fittings Medak (Telangana) 14,000 tonnes per annum Glass containers Sanathnagar (Telangana) 650 tonnes per day Bhongir (Telangana) 950 tonnes per day PET bottles and plastic products Selaqui (Uttarakhand) 2,569 tonnes per annum Dharwad (Karnataka) 5,284 tonnes per annum Medak (Telangana) 2,313 tonnes per annum Security caps and closures Medak (Telangana) 275 million pieces per annum Sanitaryware Up to 4.2 mn pieces/Annum Glass containers 1,600tonnes/day Faucets 3 mn pieces*/Annum PET products 10,166 tonnes/Annum Plastic pipes andfittings 14,000 tonnes/Annum Security caps and closures 275 million pieces/Annum 11 MANUFACTURING FACILITIES (PRODUCTION CAPACITY) HSIL leadership in India LEADING SANITARYWARE PLAYER AMONG LEADING FAUCET PLAYERS ONE OF THE SIGNIFICANT GLASSCONTAINER MANUFACTURERS FEATURESAMONGTHE TOP 3 PLAYERSIN THE KITCHEN CHIMNEY SEGMENT As on 31st March2018 *Includes 0.5 million pieces per annum of faucets plant at Bhiwadi (Rajasthan), which is under temporary shutdown HSIL Scale Slide 4 of 40
- 5. CORE STRENGTHS HSIL Model for Value Creation HSIL ALWAYS TRY TO CATERING THE EVOLVING NEEDS OF CUSTOMERS BY LEVERAGING OUR DECADES-RICH EXPERIENCE AND EXPERTISE. 30,500 + 3,950 + As on 31st March, 2018 30 Distributors (distinct distribution channel created for the pipesbusiness; target to cross 100by March 2019) Retail touchpoints (including 8,500+ forCPD) 14 Large formatretail stores under EVOK brand Trade partner network (including 575+ for CPD) We possess an extensive and diverse portfolio of products across all our businesses Our brands are carefully crafted with a unique personality Our workforce is inspired, motivated and fully engaged in achieving organisational goals Inspired design, fresh thinking and highest quality standards help us engage with our customers and deliver great value Our widespread pan- India distribution enables us to reach target consumers We consistently introduce smart and intelligent products to provide differentiated offerings to our customers DISTRIBUTION CHANNEL 1.Products 2.Brand 3.Customer 4. Technologies 5. People 6. Reach Slide 5 of 40
- 6. B2C RETAIL SALES CHANNELS 2010 2018 1 4 INCREASED 4 times NUMBER OF BUSINESSES 2010 2018 3 8 INCREASED 2.7 times TRADE PARTNERS 2010 2018 1,400+ 3,950+ INCREASED 2.8 times NET WORTH (` in Crore) 2010 2018 290 1,195 RETAIL TOUCHPOINTS 2010 2018 12,000+ 30,500+ INCREASED 2.5 times MARKET CAP* (NSE) (` in Crore) 2010 2018 434 2,684 CAGR 19% CAGR 26% (NSE Nifty 50 CAGR 8 years: 8.54%) *As on 31st March2018 HSIL Progress From FY 2010 to FY 2018 THE JOURNEY OFTRANSFORMATION Slide 6 of 40
- 7. PRE-SCHEME STRUCTURE POST-SCHEME STRUCTURE Promoters 48.4% HSIL HSIL SHIL SHIL Brilloca Brilloca Public 51.6% Promoters 48.4% Public 51.6% Promoters 48.4% Public 51.6% 100% Subsidiary 100% Subsidiary 100% Subsidiary Demerger - To Unleash Potential HSIL: Hindustan Sanitary Industries Limited SHIL: Somany Home Innovation Limited Brilloca will continue to be a subsidiary of SHIL immediately post demerger Slide 7 of 40
- 8. HSIL Business Divisions After Demerger Building ProductsDivision Packaging ProductsDivision Slide 8 of 40
- 10. Our Mission Our Vision Innovative and Eco-friendly Glass Packaging Solution To Be The Most Preferred Glass Company Creating Value For The Customers And Stakeholders
- 11. Our Values Integrity Customer Focus Respect For All Innovation Passion Slide 11 of 40
- 12. Since: 09.01.1988 (Associated with theCompany since 01.10.1965) • Commerce graduate from St. Xavier’s College, CalcuttaUniversity Provides strategic direction and vision to the Company • Extensive 63-year work experience • Active member of Rotary for past 56 years • Bestowed upon with degree of ‘Doctor of Philosophy in Management’ by KEISIE International University (KIU), South Korea • Presented with ‘Lifetime Achievement Honour’ by Washroom & Beyond, reputed trade magazine • Presented with ‘Lifetime Achievement Award’ and ‘Vishwakarma Award’ by Indian Plumbing Association (IPA) • Conferred with ‘Lifetime AchievementAward’ by ACETECH • Conferred with ‘Lifetime Achievement Honour’ by World Consulting and Research Corporation (WCRC) • Conferred with ‘Lifetime Achievement Award’ at India’s Most Admired Brand’s event hosted by White Page International • Presented with ‘Trailblazer of Sanitaryware Award’ at World Business Conclave, Hong Kong ‘World Leader Businessperson’ recognition by the World Confederation of Business Assisted the Bureau of Indian Standards to develop quality standards for the Sanitaryware Industry and instrumental in aligning the Indian Standards with European counterparts • Executive Board member and Senior Fellow member of Indian Green Building Council (IGBC) Chairman of Indian Plumbing Skills Council (IPSC) Former Chairman of Council of Indian Employers • Former President of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and PHD Chamber of Commerce and Industry (PHDCCI) and Employers’ Federation of India • Founder President of Bahadurgarh Chamber of Commerce and Industry • Fellow member of Chartered ManagementInstitute, Institute of Directors, Institute of Materials, • Minerals and Mining, UK (IOM3) and Life Fellow of the All India Management Association Emeritus memberof American Ceramic Society • Member of Corporate Affairs Committee and CSR Committee of the Company DR. RAJENDRA KUMAR SOMANY Chairman and ManagingDirector Since: 12.09.1995* (Associated with the Companysince01.10.1985) • Commerce graduate and a diploma holder in Ceramic Manufacturing Technology from theUS • A 33 year work experience in the ceramics and glass industry • Former President of PHD Chamber of Commerce and Industry (PHDCCI) • Past-President of International Chamber of Commerce — (headquarter in Paris) India Chapter • President of The Federation of Indian Chambers of Commerce and Industry (FICCI) • Member of Managing Committee of The Associated Chambers of Commerce and Industry ofIndia (ASSOCHAM) • Chairman of the Indian Council of Sanitaryware Manufactures (INCOSAMA) • Member of the Governing Council of All India Glass Manufacturer’s Association • Member of Corporate Affairs Committee and CSR Committee of the Company *Mr. Sandip Somany was appointed as Joint Managing Director w.e.f 12.09.1995 to 30.11.2016 and was re-designated as Vice Chairman and Managing Director w.e.f. 01.12.2016. SANDIP SOMANY Vice Chairman and Managing Director Promoters Slide 12 of 40
- 13. Management Team Mr. Rajesh Khosla President & CEO Mr. K.S Shetty President - Operation & Technical Mr. O.P. Pandey Sr. VP - Finance Mr. P.V.S.R Murthy AVP - Commercial Mr. Akshay Nagar Associate VP - Marketing Mr. A. Srinivasa Rao AVP – Plant Engg. Bhongir Mr. G.V. Shrinivas VP - Marketing Mr. B.V Rambabu VP - Manufacturing Mr. E. Karthikeyan AVP - Exports Mr. Govind Jee Rai VP – P & A Mr. S. Ramesh VP - F & A Mr. T. Krishna Murthy AVP – Plant Engg. Hyderabad Mr. Dheeraj Kumar AVP - QA & Sys. Mr. V. Subba Rao VP - Works Mr. T. V Rao AVP – PPC & Logistics Slide 13 of 40
- 14. AGI glaspac-Snapshot 02 01 03 04 Leading Container Glass Manufacturer In India Capable To Manufacture Container Size From 5 ml to 4000 ml Rs. 1000+ Crores (140 million USD) Sales Every Year Installed Capacity Of 1600 Metric Tonnes/Day Slide 14 of 40
- 15. 1972 Started with 80 Tonnes/day 1981 HSIL Ltd acquired AGI and upgraded the Furnace capacity to 180 Tonnes/Day ISO 9000 Certification 1996 2000 1st New Furnace (F-2) added which Increased the capacity to 450 TPD 2nd New Furnace (F- 3) added which Increased the capacity to 600 TPD 2004 New Green Field plant Started at Bhongir with 3rd New Furnace (F-4) with capacity 500 TPD which increased the Capacity to 1100 TPD 2009 1st Export Started 2011 2012 4th New Furnace(F-5) added which increased the capacity from 1100 TPD to 1600TPD with Coloring Forehearth added in the same Furnace. It also the Largest Container Glass Manufacturing Facility at Single Location in Asia Installed Electrostatic precipitators to reduce SOX, NOX and CO2 emissions. 2016 2017 TPM, LEAN & 6 SIGMA Our Journey So Far 2019 Natural Gas Implementation to curb carbon emission Slide 15 of 40
- 16. Beer Bottles Pharma Bottles Soft Drinks Bottles Food J ars Liquor Bottles Wide Range Of Product Services Olive Oil Bottles Chemicals Bottles Wine Bottles Retail Bottles Slide 16 of 40
- 17. AGI Industrial Services/Capabilities Slide 17 of 40
- 18. Our Global Exports Reach Pharma Food Liquor Beverages Beer Wine Slide 18 of 40
- 19. Our Certifications FSCC 22000 ISO 9001:2008 ISO 14001:2015 OHSAS 18001:2007 ISO 15378:2011 Slide 19 of 40
- 20. This Plant Has Two Furnace’s – Both Are Flint One Furnace get changed from Flint to Green & Amber AGI glaspac Hyderabad Manufacturing Unit Total Capacity Of 600 MT. Machines Used in Furnaces are From SORG, Germany Annealing Lehrs by Pennekamp, Germany & Antonini, Italy Hot End Handling by Sheppee-UK 2 Fully Automatic Batch Plants - ZIPPE , Germany There are 11 IS Machines For 2 Furnaces Machines Used For Making Glass Bottles are from Emhart, Sweden Slide 20 of 40
- 21. Two furnace’s – Amber (convertible to Green) & Flint. AGI glaspac Bhongir Manufacturing Unit Total Capacity Of 1000 MT. Annealing Lehrs by Pennekamp, Germany & Antonini, Italy Hot End Handling by Sheppee-UK 2 Fully Automatic Batch Plants - ZIPPE , Germany There are 4AIS & 11IS Machines For 2 Furnaces Machines Used For Making Glass Bottles are from Emhart, Sweden Colour Forehearth Technology Machines Used in Furnaces are From SORG, Germany Slide 21 of 40
- 22. Our Valuable Clients Slide 22 of 40
- 23. AGI glaspac Offices Across India Delhi Kolkata Mumbai Bangalore Chennai Regional Offices Production Plant Hyderabad Bhongir Goa Slide 23 of 40
- 24. We Committed to Health, Environment & You (Hey !) • Glass is endlessly recyclable, keeping it in use and out of landfills. Recycling glass decreases the amount of raw materials used, lessens demand for energy consumption and cuts CO2 emissions which makes it Environmental friendly. • AGI glaspac committed to all major stakeholder, more specifically to our employees, customers, communities, business partners and suppliers to maintain long-term stability, growth and enhance the competitive position of our business with Transparency. • Glass has zero rate of chemical interactions which ensure many Health benefits for the food & beverages present inside a glass bottle which keeps their freshness, purity, strength, aroma, and flavor. • Glass is by far the most eco-friendly packaging material & with 75% recyclability of glass , the toxicity potential gets further reduced by almost 40% when compared to other packaging products which can effects the Human Health badly. Environment Health You Slide 24 of 40
- 25. Installation of Roof top and Ground mount Solar Power Plant With 8.5 MW Capacity Roof Top Ground Mount System is “On Grid” and connected directly to our system. Annual Estimated Energy Generation 12,264 MWh. Plan to setup another 8.5MW Solar Power Slide 25 of 40
- 26. ESP (Electrostatic Precipitator) • Reduction of High emissions from Glass furnace outlet flue gas system • Reduction of Sox and Nox from flue gas system • To meet statutory requirements • To protect environment from pollution. Inlet Parameters : • SPM -1040 mg/Nm3 • SOX < 3500mg/nm3 Outlet Parameters • SPM <50 mg/ nm3 • SOX<1300 mg/Nm3 GAS cleaning plant in AGI glaspac Slide 26 of 40
- 27. Natural Gas AGI glaspac and Bhagyanagar Gas Limited has build an “Supply of Natural Gas to AGI glaspac Hyderabad Plant”. Reducing Carbon footprint by making a shift from Crude Oil towards Natural Gas Slide 27 of 40
- 28. Water Recycling (Installation of Effluent Treatment plant in AGI glaspac) 360 KL/Day Effluent Treatment Plant R.O Plant • Raw water consumption is high-800-850 KL / day • Existing bore well water is high TDS (1500-2500)and high hardness (600-800) which is unable to use for process • Raw water supply completely depends on external source chances of supply failures is very high • Compressors filters are chocking frequently due to high TDS in cooling water supply • High dependence on external sources( water tankers ) Burning Issues Before This Project • Reduction of raw water consumption from 800 to 550 KL/Day • Utilization of high TDS & Hardness water from bore wells • Reuse of waste water from STP,ETP outlets by recycling to meet statuary norms. • Cost saving by reducing water tankers • No/very less dependency on external source of water for plant operation( water tankers ) • To meet Zero liquid discharge . • Cost savings achieved 1.1 cores / year Benefits Slide 28 of 40
- 29. 29 Awarded 4 Star Rating For CSR By EHS Our CSR Activities School Construction Medical Camps Road Construction Distribution of Home Appliances To Villagers Slide 29 of 40
- 30. Our Facilities Security Guards & CCTV Surveillance All Over The Factory For Better Security & Safety Employee’s Count Total Employees- 3300 Medical Dispensary 24 X 7 Medical Assistance With Ambulance Facility Canteen Facility Subsidized Food For All the Employees Training Facilities On Job Training For All Employees Which Includes Simulations Slide 30 of 40
- 31. Awards Won Awarded For Phenomenal Support Award By UB Group in 2003-04 Awarded For Best Supplier By GlaxoSmithKline Consumer Healthcare in 2006 Awarded For 66 Million Cases Crossed Award By UB Group in 2007 Awarded For Outstanding Vendor By British Biologicals Awarded For Aspire Innovate Lead By UB Group in 2010-11 Awarded For 73 Million Cases Crossed Award By UB Group in 2008 Awarded For 100 Million Cases Crossed Award By UB Group in 2009-10 Awarded For Continued Support & Contribution Award By Pepsico India in 2010 Awarded For Best Supplier Performance Award By Coca Cola in 2011 Awarded For Value Partnership Award By Carborundum Universal Limited in 2015 Awarded For Valuable Partnership Award By Coca Cola in 2017 Awarded For Best Management Award By Govt. of Telangana in 2016 Awarded For Best Management Award By Govt. of Telangana in 2017 Awarded For Excellence in All Round Performance Award By FTAPCCI in 2015 Awarded For Most Innovative Designs by ABInBev in 2019 Slide 31 of 40
- 32. Our Priority Our Safety Top Management Commitment Towards Safety is Unconditional In AGI glaspac Safety is a line function & It’s everyone's responsibility Workers Active Participation In The Safety Management Programs Accident Prevention Programs are Implemented Frequently Emergency Management System in Place Safety Suggestions and Promotional Programs Conducted Safety Deviations Reporting and Monitoring System Regulatory Licenses From Various Authorities and committed For All Regulatory Compliances Certified for Occupational Health & Safety Management System-OHSAS 18001 Slide 32 of 40
- 33. Tools & Techniques Used In Our Business Total Productive Maintenance(TPM) 1 2 Few of the Tools used in AGI for Improving Efficiency, Productivity & Eliminating Defects. TPM is a method of maintaining and improving the integrity of production and quality systems through the machines, equipment, employees and the supporting processes. Six Sigma is a disciplined, statistical-based, data-driven approach and continuous improvement methodology for eliminating defects in a product, process or service. Six Sigma (6σ) Slide 33 of 40
- 34. Our TPM Our Way Objectives of TPM Zero Breakdown Zero Accident Zero Defect Slide 34 of 40
- 35. Six Sigma(6σ) Technique T H E 6 S I G M A W A Y Productivity Improvement Energy cost Optimization Key metrics • Efficiency Improvement • Process Sigma Level Improvement • Stable Process • DPMO Reduction • Energy Cost Reduction • Process Sigma Level Improvement • Optimised Process Parameters D- DEFINE M- MEASURE A- ANALYSE I- IMPROVE C-CONTROL V O I C E O F C U S T O M E R V O I C E O F P R O C E S S Projects Slide 35 of 40
- 37. Our Manufacturing Machineries IS m/c Are From Emhart, Sweden Batch Plants From Zippe, Germany Annealing Lehr m/c are from Pennekemp, Germany Hot end handling equipment from Sheppee, UK Slide 37 of 40
- 38. Our Utility Machineries Automatic Inspection m/c Emhart INEX, USA Screw Compressor From Atlas Copco Coloring Forehearth From SORG, Germany Coloring Forehearth From SORG, Germany Vacuum Pumps- Pneumofore, Germany Centrifugal Compressors are from Cameron USA. Slide 38 of 40
- 39. Our ACL Machineries A Process where Ceramic Inks are printed directly on to the bottles and then heated to adhere the ink directly to the bottle, creating permanent decoration. ACL Graphics can be up to three colors with potential for 360 degrees graphics on the body and/or neck areas. One of Our Showcase for Ceramic Labelling Carl Strutz & Co. Inc. Are From USA Slide 39 of 40