Walchandnagar Industries Ltd. (WIL)
Corporate Presentation
2012
Apurva Sharma Strategy Implementation Contents
WIL- An Overview
Key Highlights
Manufacturing Capabilities
Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD Pedigree of Walchand Group
One of the renowned industrialist of pre-independence India, who promoted and established multiple business ventures in various sectors • Ranging from automobile manufacturing, civil engineering, construction of dams, bridges, barrages and hume pipes, aircraft manufacturing, ship building, to maritime shipping
Founder…Hindustan Aircraft Company… Founder… Scindia Steam Navigation Pioneer in Aircraft Manufacturing Company…Pioneer in Maritime Shipping
Founder…Hindustan Shipyard Vizag… Pioneer in Shipbuilding Industry SETH WALCHAND HIRACHAND Established many new ventures (1882 - 1953) In various core sectors like Founder Automobile Civil Engineering Founder…Walchandnagar Industries Construction of Dams, Bridges, Ltd (WIL)…One of India’s leading Barrages & Hume Pipes` heavy engineering and project execution company
“Walchand Hirachand was a dreamer, a visionary, a great builder, a great leader of industry. Above all, he was a patriot, and in his own way, he was an inspiring leader of our struggle for freedom. I salute his memory.”
“When we celebrate the life of an entrepreneur like Walchand Hirachand, we must draw the correct lessons from his life. The lesson I draw is that the ultimate spur to growth and development is individual creativity and enterprise” Dr.Manmohan Singh, Prime Minister Of India
3 WIL…Building Engineering Excellence For Over 100 Years
A Snapshot Evolution over the Years…
WIL is one of India’s leading heavy engineering and project execution company with a strong history
Diversification across products, sectors and geographies through its Poised for strong growth in the years to come business offerings Professionally managed with growth oriented Manufacturing and EPC- Focus on Energy, Mining & Minerals, corporate structure Cement, Sugar, Oil & Gas, etc. Special Products- Focus on Defense, Nuclear Power and Evolved into a multi divisional, multi location Aerospace company
Engineering- Walchand Technology Group (WTG) Became among the first few Indian companies to Other Businesses- Foundry, Precision Instrumentation, manufacture critical components for a nuclear Gears (for variety of applications) power project managed by BARC and to be associated with ISRO for India’s space research programme Continued strong engineering & project management capabilities, backed by its technological strength and an able work force Commenced the heavy engineering & machinery manufacturing business in early 1960s Shareholding Pattern Initial business of an integrated sugar manufacturing Key Institutional Shareholders at Walchandnagar (near Pune)
Other Public 37.5% Name % Holding Changed its name to Walchandnagar Industries Ltd. in Promoter & 1944 Promoter Group 5.55 55% LIC of India Oriental Insurance Incorporated in 1908 under the name Marshland and 1.54 Ins titutional Company Ltd. Price Company Ltd. 7.5%
Founded by the visionary industrialist, Seth Walchand Hirachand
4 Manufacturing & EPC Business
Sugar & Energy Mining & Bulk Cement Oil & Gas
Manufacturing of Design, engineering, Design, manufacturing Providing products and industrial Boilers & Steam procurement and and supply of complete services for onshore generators. Technology construction of mineral cement projects up to and offshore oil and gas from Foster Wheeler USA processing projects and capacity of 1 MTPA on projects bulk material handling turnkey basis Manufacturing of critical Power plant projects on a equipments components for offshore / turnkey basis. Executed Executed over 70 cement plant projects at onshore exploration & captive as well as Projects include calcination various domestic and production, refineries, independent power plants and machinery international locations petrochemical plant & projects. Currently has for extraction of metals, other onshore facilities capacity to execute power mine backfill projects etc. Tie up with ATEC Austria projects up to 100 MW to enable in bidding for Project execution MOU with P&H, Kawasaki, larger size projects and India’s first Sugar capabilities includes Earth Technica for LDC, in new geographies machinery manufacturer & execution of onshore oil FDC, Crusher respectively exporter. Capabilities up to Range of products include & gas processing facilities, 26000 TCD with Cogen. ball mills, slide shoe mills, refineries, petrochemical kilns etc companies & other Best in class Centrifugal process plants on EPC or Mills & Diffuser Technology Tie up with UBE Japan for pure construction basis VRM manufacturing
5 Special Products Business
Defence Nuclear Aerospace / Missile
Associated with the Ministry of Accredited with pre-qualifications Associated with ISRO since its Defence, for more than 35 yrs from the BARC and NPCIL for inception, for manufacturing supplying nuclear components critical components for space Recently supplied critical core research projects equipment for “INS Arihant” Undertakes site installation and Company has manufactured and India’s 1st ever indigenously integration activities of nuclear supplied booster motor casings built nuclear submarine power reactors and nozzles for the satellite launch vehicles, including the Major Equipments supplied for Supplying major core equipment ASLV, PSLV and now GSLV defense applications include for various nuclear power plants Supplied certain critical naval gear boxes, combustion for both 235 MW and 500 MW components for ‘Chandrayaan chambers, missile casings, projects Mission’, India’s maiden moon air booster casing, static and mission mobile launchers etc MOU with Atomenergomash Major critical components for and Atomstroyexport Russia India’s ICBM program “Agni V”
Regularly working with exotic materials such as maraging steel, cladded steel, inconel, etc.
6 Engineering and Other Businesses
Walchand Technology Group Precision Foundry (WTG) Instruments
The group focuses on the Operates a grey and ductile iron Manufacturer of precision research & development of foundry with capability to handle instruments such as pressure highly intricate castings for engineering applications for the gauges, temperature gauges, specialized applications potential business opportunities sector mechanisms etc. being pursued by the Company Key business focus on wind mill, industrial machinery, automotive Key industry focus is Employs technology professionals and oil & gas sectors automotive, wide range of qualified engineers in several process industry, power projects disciplines of engineering etc. Range of products include casting in grey cast & ductile iron, castings for manufacture of Provides comprehensive Design automotive dies etc. Used in variety of industrial and Engineering services applications such as CNG kits, several fields such as Nuclear refineries, air-conditioning, Power, Oil & Gas, Aerospace, Ability to handle single piece refrigeration equipment etc Thermal, Non-conventional weight of 13 tonnes of grey cast Energy etc. iron and 8 tonnes of ductile iron
7 Office and Plant Locations
Details of offices and plant locations Registered Office- Mumbai
Oil and Gas Division- Mumbai Delhi
Regional Offices- Delhi, Kolkata, Hyderabad and Chennai
West Precision Instruments Division- Dharwad Bengal
Foundry- Satara Maharashtra
Marketing & Projects Office- Pune Andhra Walchand Technology Group- Pune Pradesh
Heavy Engineering Manufacturing Plant- Walchandnagar Karnataka
Tamil Nadu
WIL’s manufacturing facilities are based out of Mahrashtra and Karnataka... Presence in key cities through its regional and marketing offices
8 New shore based manufacturing facility planned at Dahej on the Western coast of India
PLANNED LAYOUT
9 Select Business Achievements of WIL
9 Independent power project based on municipal solid waste in India 9 Amongst the first few exporters of a complete cement plant 9 Indigenously built sugar project in India way back in 1960s 9 Amongst the first few exporters of sugar machinery and complete turnkey project from India 9 Largest number of sugar plants projects completed in India & Abroad.
Manufacturer of …
9 Critical components for nuclear reactor 9 Main gear boxes for Indian built Naval frigates 9 Components for satellite launch vehicle for ISRO 9 Critical components for 235MW and 500 MW nuclear power project 9 One of the largest optical telescope in India 9 Major critical components for India’s first mission to moon “CHANDRAYAAN” 9 Critical core components for “INS ARIHANT” India’s first nuclear submarine 9 Major critical components for ICBM “Agni V”
10 Recognition and Accreditations
Technology Absorption Award From Govt. of India
Indian Nuclear Society “ Industrial Excellence Award” for the year 2006
Best Performance In Exports on Number of Occasions
Excellent Employee Relation Award from Govt. of Maharashtra
11 Financial year 2010-11 in retrospective
Economic Overview • The Financial Year October 2010 - September 2011, (Year 2010-11), started with the potential of a good economic recovery after the global slowdown of 2008 and 2009 • But, rising inflation in the country has become a big point of worry for the Government and the Finance Ministry & the RBI decided to increase interest rates substantially to stem the impact of inflation. • This rise in interest rates has resulted in a complete slowdown in credit off-take for infrastructure projects, as these projects struggle to show viability to their bankers.
Industry review • As WIL is in the Capital Goods space, this Growth in Order Book (INR mn) over the years… slowdown in infrastructure projects has a direct impact on the new order booking for the Company. CAGR (FY-07 – 11) : @23% • Cement business continued to be lean as customers were not able to arrange for finance for their projects. • The business in Aerospace, Defence and Nuclear Power segment also got impacted; due to delay in clearances and long manufacturing cycles of these products
12 Note : WIL follows Sept. Year end Strong financial performance over the years
Highest revenue of Rs 964 crores with exports of Rs 137 crores in FY 10-11
Growing demand pull from customers, especially Total Income (INR mn) in the sugar, boiler and power project business.
The strong sales performance in the year 2010– CAGR (FY-07 – 11) : @11% 2011 has given the Company reasons to have favorable outlook for the next year: . Strong Order book as on September 30, 2011, which stands at Rs. 2205 Crores. . Strong business outlook in the Aerospace, Defence and Nuclear power segment. This business lends long term sustainability to the revenue model of the Company. . Since Dollar is becoming strong, value of Rupee realization from exports will be remunerative and Company will be giving thrust for export market. . Continued focus & efforts to build on the current strong order book position of the Company.
13 Note : WIL follows Sept. Year end Corporate Social Responsibility (CSR) Practices by WIL
CSR activities practiced by WIL way back since 1934…
The Walchandnagar Township Named after the founder, Walchandnagar is a well designed township having all civic amenities Spread over 157 acres of land which includes 50 acres of factory area A cosmopolitan set-up with a population of approx. 15,000 Well established infrastructure Runs primary schools in each Agricultural Estate and a high school established in Walchandnagar A 70 bedded modern hospital Sports facilities Senior citizen park, children play park Banks/ATM centers etc.
WIL has initiated, implemented and actively practices many welfare activities for the society
14 Contents
WIL- An Overview
Key Highlights
Manufacturing Capabilities
Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD WIL- Key Highlights
1
An end to end turnkey solutions provider…ability to provide engineering, manufacturing and construction services
5 2
Successful track record in Benefits of experienced Indian nuclear, defense and management team aerospace…area witnessing huge traction
4 3
Execution strength & Strong order book… capabilities backed by increased visibility and marquee partnerships momentum for the future
16 1. An End to End Turnkey Solutions Provider
From Design & Engineering…
. Offers complete in-house basic, manufacturing & detail engineering services
. Ability to provide process system design, plant layout design, analytical studies and system To Manufacturing… integration . Offers state of the art manufacturing facilities . Over 370 qualified and . Ability to manufactures diverse experienced engineers range of products . Industrial boilers, material handling equipments, critical and …To Execution core equipment for aerospace, defence and nuclear power . Offer turnkey projects for business, core equipment for independent power projects & cement plant, gear boxes etc. cement plants sugar plants boilers . Total manpower of 1,866 and steam generating plants managerial and skilled workers . EPC projects for mining, bulk material handling, mineral processing, oil & gas sector . Significant number of turnkey/semi turnkey/EPC projects completed
WIL’s presence in diversified yet synergetic businesses makes it a successful integrated turn key solutions provider
17 2. Successful Track Record in Indian Defense, Nuclear & Aerospace
Defense Associated with the Ministry of Defense (GoI) for more than 35 years
Major equipments include Naval gear boxes, combustion chambers, missile casings, air booster casing static and mobile launchers, Karthik bridges etc. Supplied critical equipment for “INS Arihant” India’s 1st ever indigenously built nuclear submarine
Nuclear
Associated with the Department of Atomic Energy (GoI), NPCIL , BARC for over four decades now Supplies core equipment such as Calandria, End shield, Moderator heat exchangers etc. for 700 MW, 500 MW, 235 MW nuclear power plant Pioneer in the private sector to manufacture moderator heat exchangers, dump tanks and fuel magazines
Recently awarded a EPC piping contract for a 700 MW power project by NPCIL
Aerospace
Associated with ISRO for over three decades now Supplied certain critical components for ISRO’s Polar Satellite Launch Vehicle and the ‘2008 Chandrayaan Mission’, India’s maiden moon mission Major critical components for India’s Inter- Continental Ballistic Missile (ICBM) program “Agni V”
Indian defense, nuclear & aerospace is witnessing huge traction…WIL plans to strengthen its position in these high potential areas
18 3. Strong Order Book…Visibility and Momentum for the Future
Growth in Order Book (INR mn) over the years… Sept 11- Order Book Break Up
14,632 CAGR (FY-07 – 11) : @23% Other Businesses 12,195 10% 10,000 9,687 SPD 27% Mfg. & EPC 63% 4,500
Sep-07 Sep-08 Sep-09 Sep-10 Sep-11
WIL’s execution strength and capabilities have resulted in continued growth in order book
Consistency in providing quality output…validated by zero cancellations of orders in the last two years
Focus on strengthening its ability to bid for larger sized power and cement projects
Focus on garnering larger market share in defense, nuclear and aerospace segments…potential high growth areas
WIL’s strong order book with an average tenure of 18-20 months...an assurance for future revenue growth
19 4. Strong Execution Capabilities Backed by Marquee Partnerships
Select Technology Partnerships... Engineering Capabilities Ability to provide designing, detail engineering to system integration A-Tec Production Services GmBH, UBE Japan …variety of design softwares available Products and services relating to the cement Over 370 experienced engineers and technical staff industry
Manufacturing Capabilities Fully equipped modern manufacturing facilities at Walchandnagar…ability to P&H MinePro Services, Kawasaki, Earthtechnica manufacture diverse range of products, handle variety of raw material and Technical assistance in mining and bulk capability in precision welding, fabrication and machining equipments for crushing related activities special products and cement businesses Boilers, material handling equipments, gear boxes, core & critical
Project Management Capabilities Foster Wheeler North America Corporation Project manager for every project Technology relating to manufacture of high pressure Well versed in modern project management tools Travel grate steam boilers Large support base of prequalified partners
Construction Management Capabilities Atomenergomash and Atomstroyexport Russia Dedicated separate in-house construction management team… qualified Technical assistance for manufacturing of Nuclear engineers in the field of mechanical, electrical, instrumentation Power equipments. Completed large number of projects on turnkey/ semi turn key / EPC basis
WIL leverages its inhouse core skill sets and competencies, supported by marquee global partnerships, to address a wider section of industry and end applications
20 5. Key Management Team - Strengths and Accomplishments
Holds M.S. in Operations research & Industrial Engineering from U.S.A Renders valuable advise to the company in the matters of strategic planning, organisation building, new Chakor L. Doshi business initiatives etc. Chairman Holds the position of chairman since 1998 before that he has served as MD of the company for 10 years. Holds board position in other Indian public limited companies and private limited companies
Holds B.A (Economics) from University of Michigan, USA and M.B.A. from INSEAD Institute Paris
Chirag C. Doshi Managing Director of WIL since November 25,2007. Managing Director Extensively worked on various growth initiatives, business development and exploring new business ventures for WIL
Holds a bachelor of Engineering (Mechanical) J. L. Deshmukh Joined WIL in 2004 as executive director and currently serves as MD & CEO of the company. Managing Director & CEO Worked for more than 30 years at Cummins India Ltd, with long stint on various board positions including Managing Director
Alumnus of BITS Pilani in Instrumentation Engineering GK Pillai Illustrious career in the private and public sectors COO Last assignment was as CMD of Heavy Engineering Corporation where he anchored turnaround of the PSU to a profitable venture
The Corporate management is supported by a strong team involving professionals with long standing experience in several fields
21 Strategy Going forward…
Leverage core strength to address wide cross section of industry and end application Continuous up gradation in skill sets in technology, project management and Focus on attaining people capability prominence in EPC Move up the value chain in offering: — High pressure boilers and large turnkey plants — Large capacity cement plants
WIL is already a recognized supplier of core nuclear power equipment Nuclear power segment has significant potential growth opportunities Deeper engagement in Nuclear Power Business — India is expected to increase nuclear energy collaboration with US and other countries Leverage the present position to strengthen future growth
Establishment of WTG, a dedicated engineering centre with adequate qualified engineers Building Engineering in diverse applications Excellence Focus on research in engineering field for existing and potential business areas being pursued by the company
22 Contents
WIL- An Overview
Key Highlights
Manufacturing Capabilities
Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD Walchandnagar Plant
Key Highlights Area under crane: 56,000 sq mtr Fully equipped with modern manufacturing facilities- CNC horizontal and vertical boring machines with multi axis control, lathes, plate bending machine, milling machines, gear cutting & grinding machines etc Manufacturing of boiler drum 130mm thick with ASME material SA302 & WIL Associates having manufacturing facilities for Membrane panel and carbon steel/alloy steel tube bending, up to 150 MW with super heater temperature up to 5400C Sophisticated Automatic Welding Systems capable of precision welding of exotic materials Dust Free Halls for critical assembly and precision welding related to Aerospace, Defence and Nuclear equipment Large sized Furnaces with Data Acquisition Systems Optical tooling & measuring instruments for precision measurements Crane capacity up to 150 tonnes Large capacity turning facility Heavy machine shop area
Birds eye view of Walchandnagar Plant
Select facilities Heavy equipment fabrication area Heavy duty vertical boring machine
24 Manufacturing Capabilities
Complying with various codes
Fabrication of components complying to various codes of conformance such as A.S.M.E, Sec.VIII Div.I, A.S.M.E, Sec.VIII Div. II, A.S.M.E. Sec. III NB, A.S.M.E. Sec.III NC, A.S.M.E Sec.III ND, A.S.M.E. Sec.III NF, I.B.R. Act 1948, ISO, DIN, Customer Codes etc. Welding procedures and welders are qualified under the various third party inspection surveillances such as I.B.R., N.P.C.I.L, V.S.S.C, E.I.L, L.R.I.S, A.B.S., P.D.I.L, Bax Council, T.E.I.L, B.V., DNV, D.R.DL, Holtec etc.
Special Products Division
Critical materials handled
Cladded Steel (Stainless Steel, Titanium Cladding), Alloy Steel (Including varieties of Cr, Mo Steels), Stainless Steels ( Austinetic, Martensitic & Super Duplex Types), High Strength Maraging Steel &Vanadium Steel, Inconel, Monel & Incoloy, Titanium Alloys, Aluminum Alloys, Cobalt Alloy, etc
25 Certifications
• ASME Certificate for NB, R, S, PP & U stamps ISO 9001: 2008 Certified entity
• For over a decade WIL holds ISO certification • QMS has been specially designed to maintain and improve organization’s quality standards. • Adherence to QMS has helped WIL to improve business performance and take it a step towards becoming the World Class Organization. • Preparations are on for ISO 14000 & OHSAS Certifications.
27 Health, Safety and Environment policy
• WIL is committed to have healthy, safe and environment friendly workplace for all its stakeholders • There is constant promotion & education of health, safety & environment practices amongst stakeholders and their participation is encouraged • By Continually improving the health, safety & environment management system, WIL wants to achieve its aim of zero accidents, good health & pollution free environment • Preparations are on for ISO 14000 & OHSAS Certifications.
28 Contents
WIL- An Overview
Key Highlights
Manufacturing Capabilities
Annexure - Select Turnkey EPC Projects Completed - Select Components Manufactured by SPD Select Turnkey EPC Projects completed by WIL (1/2)
Kager Sugar Ltd Tanzania- Sugar Plant Meghalaya Cements- Cement Plant
Vedanta Group- Zinc Roaster Plant Gem Sugars- 5000 TPD Cane Sugar Plant
30 Select Turnkey EPC Projects completed by WIL (2/2)
15 MW Cogen Plant 6.6 MW Municipal Waste Power Plant
Waste Heat Recovery Boilers 25 MW Biomass Power Plant
31 Select Equipments Manufactured by Special Products Division(1/2)
Gearbox for Corvettes Gearbox for LST (L) Core Support Structure for 500MW PFBR
Nuclear Fabrication- End Shield Calandria for 500MW projects Intermediate Heat Exchanger
32 Select Equipments Manufactured by Special Products Division(2/2)
Manufacture of space launch vehicle support material by WIL..
PSLV-C2: End segment SLV-3 and nozzle manufactured
33 Thank You ! Disclaimer
This presentation has been prepared by Walchandnagar Industries Limited (the “Company”) solely for providing information about the company. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner.
This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded
This presentation has been prepared by the Company based on information and data which the Company considers reliable. However, 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 such information or opinions contained herein. Neither the company nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in 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 contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements”, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India and worldwide. The Company undertakes no obligation to update forward looking statements to reflect events or circumstances after the date thereof.
This presentation and any information presented herein are not intended to be and shall not be construed as an offer to sell or solicitation of or an offer to buy the Company’s equity shares or any of its other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes.