The Waterbase Limited Investor Presentation June - 2016
Contents Contents 2 Safe Harbour Statement: Certain statements in this presentation concerning our future plans, growth prospects, etc. are forward looking statements, Company Overview 3 which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. The risks and uncertainties relating to Growth Strategy 11 these statements include, but are not limited to, fluctuations in earnings, our ability to manage growth, competitive intensity in our industry of operations including those factors which may 17 Scheme of Amalgamation - Transaction Highlights affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, sufficient availability of raw materials, our ability to successfully complete and integrate 21 Industry Overview potential acquisitions, liability for damages on our contracts to supply products, the success of the companies in which TWL has made strategic investments, withdrawal of governmental fiscal 30 Financial Overview incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting 35 Business Updates our industry. TWL may, from time to time, make additional written and oral forward-looking statements, including those in our reports to shareholders. The Company does not undertake to 41 Industry Trends & Outlook update any forward-looking statement that may be made from time to time by or on behalf of the company
Company Company Overview Overview 3
Company Overview Company Overview 4 Pioneer in Aquaculture business – over 20 years of experience – Incorporated in 1987 Rich Legacy : Part of the diversified Karam Chand Thapar Group (KCT Group) which has interests in coal, real estate, infrastructure, manufacturing and aquaculture Debt-Equity Revenue Wide Presence: Ratio CAGR: FY12-16 Headquartered in Chennai, Tamil Nadu; o Mar 2016 Manufacturing plants in and around Nellore, Andhra Pradesh ; o Market Presence in Andhra Pradesh, Karnataka, Tamil Nadu, o Gujarat, West Bengal & Odisha Diversified Operations – Current operations comprise Manufacturing of Employees shrimp feed, processing of farmed shrimp & export of processed shrimp. The Company is in the process of setting up Vannamei Shrimp Hatchery. Quality Compliant: Processing facilities are FDA & BAP approved, EU Product Portfolio listed and HACCP certified. Feed plant is BAP certified. Shrimp Feed 135 110,000* 100 90 70 60 35,000 35,000 30,000 20,000 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Dealers Capacity (MT) Processed Shrimp * Post Amalgamation with Pinnae Feeds Limited
Locations Locations 5 Registered office and factory Ananthapuram Village, T.P. Gudur Mandal, Delhi Nellore – 524 344, Andhra Pradesh. Corporate Office Kolkata No. 37, Thapar House, Montieth Road, Egmore, Chennai – 600 008 Nellore Group Corporate Office Delhi Kolkata Chennai Corporate Office Factory
Key Strengths Key Strengths 6 Strong Brands Rich Legacy Technical Expertise • Several popular brands which are • Several popular brands which are • Over two decades of expertise in • Over two decades of expertise in • TWL enjoys unparalleled • TWL enjoys unparalleled favoured by shrimp farmers favoured by shrimp farmers the business- strong connect with the business- strong connect with technical expertise in the industry technical expertise in the industry suppliers and farmers suppliers and farmers as the Pioneer as the Pioneer • Enjoy high recall and are seen to • Enjoy high recall and are seen to be synonymous with quality and be synonymous with quality and • Backed by the KCT Group – has • Backed by the KCT Group – has • Staffed by well-qualified • Staffed by well-qualified value value inculcated ethical business inculcated ethical business personnel with rich industry personnel with rich industry practices with long-term vision in practices with long-term vision in experience experience mind mind • Products, processes, practices are • Products, processes, practices are viewed as gold standard by viewed as gold standard by industry industry Quality Control R&D Focused Financial Position • Zero net debt – Existing Cash • Zero net debt – Existing Cash • Working with renowned research • Working with renowned research • Robust manufacturing processes • Robust manufacturing processes balances are in excess of debt balances are in excess of debt and step by step quality control and step by step quality control institutions in India and abroad institutions in India and abroad for the benefit of industry for the benefit of industry system system • Demonstrated financial discipline • Demonstrated financial discipline • R&D initiatives have been • R&D initiatives have been through good and bad years for through good and bad years for • Processing facilities are FDA and • Processing facilities are FDA and meaningfully converted into new meaningfully converted into new industry industry BAP approved, EU listed and BAP approved, EU listed and products products HACCP certified HACCP certified • Have driven improvements in • Have driven improvements in • Global best practices • Global best practices feed manufacturing, farm feed manufacturing, farm implemented implemented practices, waste management, practices, waste management, shrimp processing shrimp processing
Product Portfolio Product Portfolio 7 Shrimp Feed Processed Shrimp
R&D Strengths R&D Strengths 8 Over 20 years of in-house Proven Research & competence in Development research and (R&D) Works closely Large unparalleled activities with reputed repository of institutes in the technical data: area of Aqua Feed expertise in the nutrition, Nutrition industry diseases, soil Research and marine conditions Continuous interaction with Farmer training international experts Track record and testing of on Shrimp feed of R&D initiatives nutrition, water introducing under live quality management innovative conditions and development of shrimp feeds specialized feed ingredients
R&D Initiatives R&D Initiatives 9 Promoting gut health & a stable gut BAY WHITE Enriched microflora: Natural antibacterial action Details Feature 1 Feature 2 Natural Enhances USP antibacterial hepatopancreas action function Benefits Stabilization of Enhanced Boosting energy reserves (nutritional status the gut energy hepatopancreas) microflora using availability and natural digestive bacteriostatic capacity for fats, action improved lipid nutrition
st March, 2016 Shareholding Pattern as on 31 st Shareholding Pattern as on 31 March, 2016 10 Indian Public 31.6% Promoters 52.5% Others 0.7% NRI 4.0% Corporate Institutions Bodies 11.0% 0.2% Note: • Karam Chand Thapar & Bros. (Coal Sales) Ltd had acquired 19,10,500 shares of the company on 30th & 31st March, 2016 which is not reflected in the above chart. • Consequent to this acquisition, the stake of Karam Chand Thapar & Bros. (Coal Sales) Ltd has increased from 46.66% to 51.60% and the Promoters stake has increased from 52.50% to 57.41%.
Growth Growth Strategy Strategy 11
Business Strategy Business Strategy 12 12 St rat eg y $ $ $ I ncr ease Scale Diver sif y Mar ket Pr esence Diver sif y Revenue St r eams
Business Strategy Business Strategy 13 13 Installed capacity at 35,000 MTPA. Post merger of PFL, combined capacity of 1,10,000 MTPA will be higher by 300% Increase volumes and market share by leveraging on strength of highly skilled technical manpower, brand salience, wider product portfolio, improved distribution network and value-added services Capacity constraints are no longer a hindrance – will enter new geographies and aggressively pursue customer categories to increase off take Increase in scale expected to be margin accretive – incremental revenues to enhance return ratios Diversify Revenue Streams
Business Strategy Business Strategy 14 14 Widening distribution infrastructure to enhance pan-India presence by consolidating our position in potential markets like West Bengal, Gujarat and foraying into Odisha. Will strengthen farmer network in Tamil Nadu & AP Strengthening distribution network by adding new dealers. Increasing our weighted reach and shop share in all the markets through high performance feed and enhanced after-sales service. Also working on identifying and developing new markets for shrimp farming Diversify Revenue Streams
Business Strategy Business Strategy 15 15 Entering more verticals within the value chain – set to emerge as an integrated player from farm to fork Have commenced setting up of Hatcheries to supply good quality seeds for shrimp farming - location and design finalized; expected completion in Q4 FY17 Restarted direct exports - despatched over 200 tonnes of shrimp in FY16 to customers in Europe & USA Diversified revenue streams, wider market presence, new products and integrated model will elevate business profile Diversify Revenue Streams
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