Corporate Presentation FY 12
TRIVENI ORGANISATION STRUCTURE 2 Triveni TEIL holds 21.8% of the equity in TTL Triveni Engineering Triveni Turbine Ltd. & Industries Ltd. (TTL) (TEIL) 50% plus one share GE Triveni Ltd. Sugar Engineering (JV with GE) Business Business Co- Water & Sugar Distillery Gears generation Waste Water
TRIVENI FACT SHEET 3 Two Independent Listed Companies – Triveni Engineering & Industries Ltd. and Triveni Turbine Ltd. Promoter driven, professionally managed company Eminent and independent Board of Directors Pan India Presence
T RIVENI ENGINEERING & INDUSTRIES L TD . ( TEIL ) Triveni Engineering & Industries Ltd. (TEIL) Sugar Engineering Business Business
ENGINEERING BUSINESS – PAN INDIA PRESENCE 5 GEARS BUSINESS - MYSORE Market leader in High speed gears & gear boxes upto 70 MW capacity and speed of Noida 70,000 rpm WATER BUSINESS - NOIDA A leading player in the high technology water & wastewater management business Corporate Office Mysore Manufacturing Facilities Water Treatment Projects
ENGINEERING BUSINESS – REVENUE GROWTH 6 3500 CAGR 07*-12 3068 3000 SALES – 22% 2736 2625 2500 PBIT – 17% ` in millions 2000 1730 1437 1500 1006 1000 651 565 423 392 325 500 192 0 FY07* FY08 FY09 FY10 FY11 FY12 Revenue PBIT FY07* - 12 months period from Oct 06 – Sep 07
GEARS BUSINESS GROUP – BUSINESS PERSPECTIVE 7 Triveni is in the business of design, manufacture and marketing of customised gears and gearboxes. State of the art design and manufacturing facility at Mysore. Conforms to international standards such as DIN, API & AGMA - DIN 3 quality assured. About 60% market share in complete high speed gear market across applications up to 70 MW capacity and speeds of 70,000 rpm. Own developed technology for high speed gear boxes upto 7.5 MW. Range above 7.5 MW-62 MW is manufactured using technology licensed from Lufkin. Indigenously developed 6 MW hydel gearbox. Renewed the License Agreement with Lufkin for a further period of 12 years with extended product range and geographies. Full range to be manufactured in Mysore. Product range includes all Steam Turbine gear boxes, gear boxes for compressors and load gear boxes for gas turbines apart from gear boxes for mechanical drives like Pumps, Fans and Blowers driven by Electric Motor, Steam Turbine or Diesel Engine. Geographies extended to cover major markets in South East Asia such as Malaysia, Indonesia, Singapore, Thailand with the possibility of enhancing territories in the future. On 22nd July 2011, the company signed the Technology License Agreement for manufacture of niche engineered-to-order high technology low speed gear applications with Lufkin for four industrial segments viz., Rubber & Plastics, Metals and Steel, Marine and Coal pulverizer application in the thermal power plants.
GEARS BUSINESS GROUP - FINANCIAL PERFORMANCE 8 The turnover and profitability year-on-year CAGR 07*-12 1202 1200 has been lower due to overall economic 34 SALES – 12% 35 35 and industrial slow down which resulted in 1043 PBIT – 16% 1014 33 deferment of delivery etc. 1000 30 On account of lower turnover, absorption of 29 29 PBIT Margins (%) less fixed overhead resulted in decline in 800 ` in millions 733 769 profitability. 24 25 The share of OEM sales has been lower 600 605 during the year in comparison to previous 20 419 year while the aftermarket sales showed an 400 345 301 increase. 244 220 15 The company entered into a long term 200 146 agreement with BHEL for supply of gas turbine gearboxes and its foray into low 0 10 FY 07* FY 08 FY 09 FY10 FY11 FY12 speed applications will be beneficial for the business in the long term. Net Sales PBIT PBIT Margins FY07* - 12 months period from Oct 06 – Sep 07 Outstanding Order Book as on 30 th Sep 2012 – ` 486 million
WATER INDUSTRY – POTENTIAL TO GROW 9 Rising Water Demand to double by 2025 from 2000 levels - Growth potential in coming years in both major segments – Municipal and Industrial. Multi-lateral funding actively promoting privatisation and commercialisation of water. Annual estimated market for Water/Waste Treatment is ~ ` 54 billion with an estimated growth of 13% between 2010-13. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – annual estimated water related schemes of ` 13-15 billion. Substantial new power generation capacities to be added; Largest user of water & waste water treatment - Annual estimated market size of ` 10-13 billion for water business. Major expansion and capacity additions envisaged in steel, coal etc. – estimated annual market of ` 7-12 billion. High cost & scarcity of water driving manufacturing industry to have In-house water management and water recycling programs. Stricter regulations for environmental compliance in terms of effluent and pollution control.
WATER BUSINESS GROUP - BUSINESS PERSPECTIVE 10 Technology association with world’s leading technology providers for various products, process & solutions such as Ultra filtration (UF), Reverse Osmosis (RO), Moving Bed Bio Reactor (MBBR) etc. One of the widest ranges of products & technologies offered in the Indian Market. Indigenous Product lines include clarifiers, aerators, filters, membrane solutions, de-watering equipment and high purity water systems. Over 2000 numbers of process equipments for water & waste water treatment applications, supplied and commissioned till date. Undertaken the largest desalination plant for a power plant. Undertaken sewage recycling to boiler feed quality water project. Currently executing the largest plant in the country involving UF for surface water treatment and largest globally for MBBR technology. Project includes operations and maintenance contract for a ten year period. With the visibility of a fast growing market, WBG expected to grow consistently in future.
WATER BUSINESS GROUP - FINANCIAL PERFORMANCE 11 CAGR 06-11 The turnover & profitability for the current quarter SALES – 33% and full year has been lower than the previous PBIT – 22% 1866 1900 17 period/s primarily because of delay in execution 1800 1692 1700 1610 of projects at customer end. 16 1600 15 14 1500 Power Sector, being one of the important 15 1400 customer for this business, has been facing 1300 13 PBIT Margins (%) 1200 problems in terms of fuel linkages apart from 12 12 ` i n millions 1100 997 issues such as land, environment etc. 1000 11 900 During the year, the company has made a long 800 668 term strategic investment by acquiring 25.04% 700 9 600 equity stake in Aqwise-Wise Water Technologies 500 400 Limited, a company registered in Israel, engaged 400 7 300 in providing water treatment solutions using 232 219 7 148 200 123 105 proprietary technology. The investment is 46 100 0 5 synergistic to the water / waste water business of FY 07 (*) FY 08 FY 09 FY 10 FY 11 FY 12 the company. Net Sales PBIT PBIT Margins FY07* - 12 months period from Oct 06 – Sep 07 Outstanding order Book as on 30 th Sep 2012 - ` 4.9 billion
SUGAR BUSINESS SUGAR BUSINESS One of the largest sugar producers in India with seven sugar manufacturing facilities CO-GENERATION BUSINESS Two state of the art co-generation facilities at two of its major sugar units viz. Khatauli and Deoband DISTILLERY BUSINESS One of the largest single stream molasses based distillery in the country located at Muzaffarnagar
SUGAR INDUSTRY OVERVIEW 13 Global: The world sugar surplus is expected to remain high at around 8 million tonnes in 2012-13 also. Even though the global sugar prices touched an all time high in June 2012, on account of overall higher production by about 10 million tonnes in 2012-13, the sugar prices steadily declined. India: India's estimated sugar production for Oct 2011- Sept 12 season is ~26.2 million tonnes, an increase of 7%. Average recovery for the state of U.P. for the season 2011-12 was ~ 9.09%, lower than the previous season. Western U.P. recorded a substantial drop in recoveries. The estimated total exports during 2011-12 was around 3.3 million tonnes. Even with an estimated increase in consumption and higher exports during the year, the sugar balance at the end of September 2012 was higher in comparison to the opening inventory levels. Even though it is early to estimate the country's sugar production for the next season, given the current climatic conditions etc., the country's sugar production is estimated at ~23.5 million tonnes, which is a decline over last year. Maharashtra and Karnataka expected to contribute for the overall decline while U.P. estimates an increase of ~ 15%. Contrary to downward movement of sugar prices globally, the domestic sugar prices gained significant movement upward in the July - Sept 2012 quarter on the news flow of lower production in the forthcoming season and continue to remain healthy.
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