INVESTOR PRESENTATION NOVEMBER 2016
EXECUTIVE SUMMARY
Executive Summary 3 Overview Business Mix Goodluck India Ltd. incorporated in • CR Sheets & Pipes – Includes C.R Sheet/Coil, • 1986 by Mr. Mahesh Chandra Garg, an G.P.G.C Sheet/Coil, C.R.C.A Sheet/Coil, Pipes, IIT graduate, is an established name in etc. the Steel Tubes, Engineering Structures, Engineering Structures – Transmission & • Forgings and Cold Rolled value added Telecom towers, Fabricated steel structures products industry. Forging – Forged flanges, gear rings, gear • The company is headquartered in • shanks, forged shafts, railway products Ghaziabad with a 2,30,000 MT p.a. Precision Tubes – Auto Tubes, CDW/ERW Tubes, • manufacturing facility in Sikandrabad in Boiler Tubes, Transformer Tubes, Air Heater Uttar Pradesh, India with more than 2,000 employee strength. Tubes Marquee Clients FY16 Financial Highlights Cold Roller sheets, coils & Engineering structures : • Indian Railways, ABB, L&T, Reliance Industries, GMR, Total Income- INR 10,989 Mn; • ISGEC, Sterling & Wilson, Alstom, Powergrid, NTPC, Toshiba, TRF, EIL, NPCIL EBITDA – INR 1,020 Mn; • Forging : GE Oil & Gas, Allied Group, Saint-Gobain, • Midsteel, Flaboform, Edelstahlservice, BPCL, Indian PAT – INR 332 Mn; • Oil, BHEL, RIL, L&T, Alstom, Mitsubishi Precision Tubes : Volkswagen, Audi, BMW, ROCE – 15.83% • • Mercedes, Skoda, Renault, GM, Ashok Leyland, TVS, Bajaj, Gabriel, ISGEC, Talbros, Mahindra, Tata Motors ROE – 15.61% •
COMPANY OVERVIEW
Company Overview 5 Approx. Revenue Mix – FY16 Goodluck India is a diversified company with 30 years of experience in • manufacturing of Cold rolled steel products, structural steel towers, Auto tubes, pipes, forgings and flanges. Structures The company has a total manufacturing capacity of 2,30,000 MT p.a • 15% Forging The company’s products get sold domestically and to over 100 • CR Sheets 13% countries across the world to high growth sectors like Auto, Power, & Pipes Precision 47% Infrastructure, Oil & Gas and also diversified further for high end Tubes engineering structures for Auto, Solar, Railways, etc. 25% The company has strategically shifted its focus towards the high-margin • value added steel products like forgings and structured steel with the share of these value added high margin products share grown from 39 % in 2011 to 53 % in FY16. Goodluck India Ltd is an ISO 9001:2008 certified organization. • Geographical Breakup – FY16 Myths about Company: Truths about Company: Goodluck India is a steel Goodluck India converts steel into • • Export company as the name customized precision products 27% suggests Goodluck India is a professionally • Domestic The company is a family • managed company employing skilled 73% managed company professionals It is difficult to do • The company started in UP in 1986, and • manufacturing business in has been able to continue to grow with Uttar Pradesh continuous availability of power
The Management Team 6 Mr. Mahesh Chandra Garg – Chairperson Graduated in the year 1967 (Indian Institute of Technology, Roorkee). Mr. Manish Garg - COO Possesses more than 45 years experience. 44 years of age, is an qualified engineer, handling over Took-up an overseas assignment with M/s all the Export Business since last 22 years. Comcraft Ltd. Promoted by NRIs and erected many steel tube mills in Kenya and Nigeria and thereafter started his own venture. Mr. Ram Agarwal - CEO Mr. Ramesh Chandra Garg – Whole Time Director Qualified engineer and completed his graduation in Graduation in the field of mining ( ISM – the year 1990. Dhanbad ). 24 years experience in steel industries. Being the Chief Mining Engineering, he had a Handled a number of CR projects and Structure distinguished career with M/s Coal India Ltd. projects independently. Maintains an equivalent exposure in the field of sales Possesses more than 40 years of experience. and marketing. Mr. Nitin Garg – Whole Time Director 34 years of age, a qualified Mechanical Engineer from HBIT, Kanpur and an M.B.A. from Mr. Shyam Agarwal – COO Narsee Monjee Institute of Management. 44 years old, is a qualified engineer and has more than Worked with Yamaha Motors and Honda Motors. 20 years of experience in steel Industry. Joined the company as a production Engineer and currently looking after entire production process independently.
Milestones 7 1995 2013 2015 2003 1987 2007 Company Commissioned Commissioned Converted changed Incorporated Capacity First Forging Turnover crossed another plant for into Public name to Pvt. Ltd. Enhanced to INR 5,000 Mn Plant ERW/CDW Ltd. Goodluck Company 50000 MTPA Precision Tubes Company India Ltd First Plant Got listed on Turnover First plant Turnover Expanded Commissioned BSE Crossed INR commissioned crossed INR Engineering 1,500 Mn for ERW/CDW 10,000 Mn structured 1986 1994 Precision Tubes products to 1997 2006 2009 2014 2016 high growth sectors like solar and railways
Global Footprint 8 PANTNAGAR HARIDWAR PARWANOO SIKANDRABAD LUDHIANA GURGAON FARIDABAD SWEDEN UK BELGIUM NASHIK NORTH AMERICA GERMANY FRANCE UAE INDIA OMAN CHENNAI ETHIOPIA SRI LANKA SINGAPORE BRAZIL BOLIVIA MADAGASCAR AUSTRALIA SOUTH AFRICA CHILE NEW ZEALAND MANUFACTURING PLANT WAREHOUSE EXPORT MARKET
Business Units 9 Goodluck Engineering Goodluck Industries Goodluck India Ltd. Segments: Forgings – Segments: CDW Tubes , Segments: CR Coils & Sheets , Galvanized Pipes, Forged flanges, gear ERW Tubes, Precision Square & Rectangular Pipes, Transmission & Telecom rings, gear shanks, Tubes, Engineering Tubes, Towers, Fabricated Steel Structure forged shafts, blind & Boiler Tubes tube sheets Cold Roll Coils & Pipes Engineering Structures Forgings Precision Tubes Capacity 1,10,000 MT p.a. 48,000 MT p.a. 12,000 MT p.a. 60,000 MT p.a. Manufacturing Sikandrabad, (U.P.), India Sikandrabad, (U.P.), India Dadri (U.P.), India Facilities
Our Customers 10 Auto Tubes Auto Tubes Engineering / Structures Global Domestic Domestic Forgings Global Domestic
Key Strengths 11 Strong Industry Knowledge - Three decades of Experience with consistent growth & progress Strong and well reputed management Concentrating on team and a motivated and talented deleveraging the balance team of over 2000 employees sheet empowering growth Strong capital and A base of over 450 customers operational efficiencies Spread over 100 countries across resulting in good return ratios. the world Strategically focusing on High Margin Diverse product range Value Added Products and high with good level of growth sectors like Auto, Solar, Railways customization and Defence Catering to Marquee Consistent dividend paying Clients across the world company
Strategic Direction – Changing Focus 12 61% 65% The company has been strategically shifting • 57% 60% its focus on increasing their value added 54% 52% products 55% 47% Value added products include high margin • 50% Auto, Forging and Structure support 45% solutions 40% The company intends on reducing the share • 35% of CR Coils & Corrugated Sheets 2012 2013 2014 2015 2016 The product profile for Engineered value • Regular Products products has increased from 43 % to 53 % in the last three years Over the next three years the management • plans to increase the share of value added 53% 55% products to around 75 % from current levels 48% of 53 % 50% 46% All new expansions are aimed at achieving • 43% 45% this objective. 39% The company is also diversifying to other 40% • value added high margin products for 35% sectors like Auto, Solar, Railways etc. 2012 2013 2014 2015 2016 Engineering Value Products
BUSINESS OVERVIEW
Cold Rolled Coil and Pipes 14 Established in the year 1986, Goodluck • India Ltd is an ISO 9001:2008 certified organization, The company is engaged in • manufacturing and exporting of a wide range of Cold Rolled Coils and Sheets, and pipes The company has a manufacturing • capacity of 1,10,000 MT p.a. These are acclaimed for high tensile • strength, long service life and higher efficiency Product Range: Square & rectangular pipes, round hollow sections, black pipes, welded tubes & pipes, CR coils & sheets, CRCA, HRPO, galvanized coils & sheets, GI hollow sections, etc.
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