Ramkrishna Forging Limited Corporate Presentation 1
AGENDA History & Profile Strategy & Approach Business Operations Governance & Financials • About Our • Market • Manufacturing Company Opportunities Facilities • Board of Directors & Key Management • Product Lines • Key Differentiators Personnel • Key Milestones • Strategic Priorities • Awards & • Key Financial Recognition Indicator • Corporate Social Responsibility • Financial Snapshot and Shareholding Pattern 2
HISTORY & PROFILE 3
ABOUT OUR COMPANY The Beginning Incorporated in 1981 by first Ø generation entrepreneur Mr. M P Jalan, Chairman, a technocrat by profession from BITS Pilani, with a vision to create a world class Auto Component Manufacturing facility The Company Today Company is one of the leading Ø players in Indian Forging Industry with technical capabilities to manufacture high end forge and machined components supplying products to CV, Railways, and industrial markets Diversified product profile with Ø almost 85% of total component needed by a truck, manufactured in house Strong operational results with Ø c o n s i s t e n t t r a c k r e c o r d o f profitability and growth Ably supported by Mr. Naresh Jalan, Ø MBA Finance, MD, having more then 15 year experience of managing the forging business 4
OUR PRODUCT PORTFOLIO Rolled Front Axle Beam, Products Crankshaft & Knuckle Applications Automotive Earth Moving & Mining Farm Equipments General Engineering Railways Steel Plants Oil Exploration Wind Energy Machined Forged Products Products 5
KEY MILESTONES Creating Shareholder Value 1981 1994 2000 2004 2007 2009 2013 Incorporation RKFL became a Accredited as ISO RKFL IPO Investment from Company Raised equity from of Company public limited 9002 Company launched, Ascent Capital became IFC, Wayzata company becomes a listed TS16949 Started automated entity certified Press Project 2014-15 2011 2002 1985 1995 2006 2008 Commissioning Receives Approved by Approved by RKFL became Successful entry Commencement of of Press Line of OSHAS and Indian Defense Indian a supplier to into machining 2000T Press line 3150T, 4500T, NABL for producing Railways as TATA Motors, with machining for 6300T & accreditations Defense related Critical Safety Jamshedpur Ring rolled 12500T parts Item Supplier Products for items like Hanger, Draw Gear Arrangement 6
KEY FINANCIAL PARAMETERS (YoY) Figures In cr Revenue PAT EBITDA 500 140 80 133 75 455 450 Domestic Exports 70 120 390 400 351 350 60 100 350 327 82 50 300 80 250 40 62 60 60 200 30 24 150 40 103 20 100 11 54 20 46 8 50 10 0 0 0 FY 12 FY 13 FY 14 FY 15 FY 12 FY 13 FY 14 FY 15 FY 12 FY 13 FY 14 FY 15 Sustained Growth with improving top-line, EBITDA and bottom-line 7
STRATEGY AND APPROACH 8
MARKET OPPORTUNITIES Domestic Demand Growth: Ø Expanding city perimeters leading to increase in demand for mass transportation which is International Opportunity mainstay for Indian forging sector Ø Increase in industrial production and revival of Ø Indian Forging Industry has passenger vehicle market gained recognition due to its Ø Increasing need to transport products technical capabilities and cost between production centers and consuming advantage Make in India : markets with massive growth in Indian Ø Push for cleaner and safer Ø India has been positioned logistics sector transportation with emphasis on as a global manufacturing Ø Revival of mining sector in specific states like emission norms with Euro 6 hub with the ‘Make in India’ Orissa, Karnataka would benefit commercial implementation campaign vehicle industry which is showing growth after Ø Global economic recovery and Ø Easier tax structures and slowdown reduced fuel prices world over can better approval structures Ø Lowering of interest rates to further strengthen boost commercial vehicle can boost manufacturing domestic demand demand Ø Stricter anti-overloading and ABS braking norms to contribute to demand Ø Consolidation of Indian Forging Industry with few large players dominating the market 9
KEY DIFFERENTIATORS Manufacturing Capability & Economies of Scale • 5 manufacturing set ups with 45,000T Hammers and Upsetters, 24000T ringrolling pressline and 4 presslines of totaling to 80,000T capacity (3,150T, 5,400T, 6,300T and 12,500T • Best in class technology for precision and industry leading cycle time Rich Product Portfolio & Proximity to Raw Material Source • Rich product portfolio comprising of axle components, transmissions components crown wheels etc. • Large set up in Jamshedpur, Baliguma and Howrah close to steel capital of India Innovation Capability • Successfully transformed from a forging company to a an integrated product development firm providing cutting edge solutions • Developed expertise in ring-rolling and machining complementing the forging business Demonstrated Growth & Profitability • Revenues growth by over 72% from FY 14 to FY 15 with commissioning of new capacity with healthy EBITDA margin of 17% • EBITDA growth of over 120% from FY 14 to FY 15 with to a RoACE of 10.7% and an RoE of 20.4% Experienced Management & Marquee Client Base • Strong management with experience in Innovation, Product Development and Manufacturing • Has marquee client base with all Top OEMs as clients including TATA Motors, Ashok Leyland, VE Commercials, along with component manufacturers like Automotive Axels etc. 10
STRATEGIC PRIORITIES FY 13-14 Sales Others USA Commissioning of State 1% 9% Europe of Art 12,500T Press with 5% a capability of churning out high precision Mexico products every 40 sec 12% India 74% Product & Global Capacity Addition will take total Diversification Expansion forging capacity to 150,000T along with sufficient machining Contribution of Capacity expansion FY 14-15 Sales capacity export to increase in forging as well as Others going forward which machining and 1% have higher margins commissioning of state of art 12,500T USA Press 39% India 47% Forging and machining together provides capability to foray into high precision and Europe weightage parts 4% Mexico 9% 11
BUSINESS AND OPERATIONS 12
MANUFACTURING FACILITIES Plants Process Facilities Hammer Forging Heat Treatment Plant 1- Jamshedpur Upset Forging Shot Blasting Die Making Testing Machining/Assembly Plant 2-Liluah Light Fabrication Functional Testing 1) CNC Machining MHC & VMC ISO Annealing Machining Sealed Quenching Plant 3 & 4- Jamshedpur Gear Cutting Plug Quenching 2) Press line with Induction Hardening machining Press Project 2000T, 3150T, 4500T, 6300 T Presses Plant 5 - Jamshedpur 12500T Press, Integrated Paint Shop HMC & VMC Machining, Die Making & Heat Treatment Facilities 13
GOVERNANCE AND FINANCIALS 14
KEY MANAGEMENT PERSONNEL Board of Directors Key Management Personnel Mr. A. N. Mr. K Choudhary, Mr. Mahabir Prasad Jalan Chandramouli, Plant COO, 30 yrs exp (Chairman ) Head, 29 yrs exp Bharat Forge Kalyani Forge Mr. J. Patasani, Mr. Pawan Kumar Mr. Alok Sharda, ED & Mr. Naresh Jalan Plant Head, 21 Yrs Kedia CFO, 21 yrs exp, exp, (Managing Director) (Wholetime Director) Adhunik, Usha Martin ABB, Paharpur Mr. Satish Kumar Mr. Padarm Kumar Mr. Sibaji Mitra, Mr. Rajat Dutta, CIO Mehta Khaitan CPO 21 yrs exp, 24 yrs exp, Adhunik, (Non Executive (Independent Director) Outotec, Ispat Usha Martin, IIT Kgp Director) Mr. Rajesh Mundhra, Mr. Yudhisthir Lal Mr. Milesh Gandhi, CS & Sr GM Finance, Ms. Aditi Bagri Madan Sr GM Marketing, 14 yrs exp, UT (Independent Director) 12 yrs exp Wireless, Carnation (Independent Director) Ind Mr. Ram Tawakya Mr. Amitabha Guha Singh (Independent Director) (Independent Director) 15
AWARDS AND RECOGNITION Awards & Accolades Ø SAP ACE AWARDS 2012 - Best Run in R&D, Design and New Product Development Ø HVAL Ø Appreciation - New Product Development Ø Appreciation - Overall Best Performance Ø HVTL Ø Appreciation - Quality Ø Appreciation - Delivery & Ramp up of Gears and Shafts Ø Appreciation - New Product Development Certificates & Recognitions Ø EEPC INDIA - Eastern Region Award for export excellence Ø CII - Confederation of India Industry Certificate of appreciation Ø AIAG - The Catalyst for Peak Performance Ramkrishna Forgings Limited 16
CORPORATE SOCIAL RESPONSIBILITY Environmental Policy Ø Create awareness for the environment which plays an integral role in day to day business activities. Ø Undertake all reasonable and economical viable steps to minimize adverse effects upon the environment. Ø Comply with the requirements of relevant environmental policies, regulations and codes of practices. Corporate Social Responsibility Ø Embrace responsibility for impact of its operations and actions on all stakeholders including society and community at large. Ø Encourage all its employees and other participants to ensure positive impact and its commitment towards CSR. Ø Committed to develop and implement EMS (Environment Management System) throughout the plant, control and reduce the environment impact. 17
Recommend
More recommend
