Dixon Technologies (India) Limited Corporate Presentation
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Dixon Technologies (India) Limited Corporate Presentation October 2017 Company Overview Dixon Technologies (India) Limited Corporate Presentation 2 Dixon Overview – Largest Home Grown Design-Focused Products & Solutions Company Business overview Engaged in manufacturing of products in the consumer durables, lighting and mobile phones markets in India. Company also provide solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels Fully integrated end-to-end product and solution suite to original equipment manufacturers (“OEMs”) ranging from global sourcing, manufacturing, quality testing and packaging to logistics Diversified product portfolio: LED TVs, washing machine, lighting products (LED bulbs &tubelights, downlighters and CFL bulbs) and mobile phones Leading Market position1: Leading manufacturer of FPD TVs (50.4%), washing machines (42.6%) and CFL and LED lights (38.9%) Founders: 20+ years of experience; Mr Sunil Vachani has been awarded “Man of Electronics” by CEAMA in 2015 Manufacturing Facilities: 6 state-of-the-art manufacturing units in Noida and Dehradun; accredited with quality and environmental management systems certificates Backward integration & global sourcing: In-house capabilities for panel assembly, PCB assembly, wound components, sheet metal and plastic moulding R&D capabilities: Leading original design manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines Financial Snapshot: Revenue, EBITDA and PAT has grown at a CAGR of 33.8%, 44.4% and 78.3% respectively from FY13 – FY17; ROCE for FY17 is 36.5% Strong relationship with diverse top-tier customer base Philips Lighting India Haier Appliance (I) Panasonic India Private Limited Limited Private Limited Mitashi Edutainment Surya Roshni Dish Infra Services Private Limited Abaj Electronics Private Limited Limited Private Limited Intex Technologies Vijay Sales Reliance Retail Limited Gionee (I) Limited Note: (1) As per Frost & Sullivan research report on “Indian Consumer Electronics & Appliances Market Study – May 2017” Dixon Technologies (India) Limited Corporate Presentation 3 Diversified Product Portfolio Timeline of Product Evolution Products Offerings within Verticals Regular addition of new products coupled Consumer LED TVS – 19’’ to 65’’ and 4K2K technology with gradual scaling up in existing product categories Electronics Home theatres – 2.1 and 4.1 channel CFL Lighting, CFL Lamps, Ballast, Tube lights, Batten, CFL PCB, Downlighters, Lighting Products Colour TV reverse Phones CFL/LED Drivers logistics Home Appliances Semi-automatic washing machine ranging from 6.2kg to 8.2kg 2007 2010 2017 Mobile Phones Feature and smart phones (2G, 3G, 4G/LTE, VoLTE & CDMA) 1994 2008 2016 Repair and refurbishment – set top boxes LED TV, CCTV(1), Reverse Logistics Repair – mobile phones, LCD/LED TVs, LED panel, home LCD TV Washing Digital Video theatre and computer peripherals & other devices Machines Recorder(1) Revenue mix by verticals FY14 FY15 FY16 FY17 0.3% 1% 2% 3% 3% 8% 9% 9% 33% 34% 28% 25% 31% 55% 64% 65% 8% 22% Consumer electronics Lighting products Home appliances Mobile phones Reverse logistics Provide one-stop-shop solutions to companies in the consumer durables, lighting and mobile phones industry in India Note: (1) Executed a joint venture agreement to manufacture the mentioned products Dixon Technologies (India) Limited Corporate Presentation 4 Key Milestones Amalgamation of DAPL and DBMPL Entered the lighting products vertical Entering into a JV with Aditya Infotech Limited for the manufacture of security systems including CCTVs and DVRs Private equity investment by IBEF and IBEF 1 Company got Listed on BSE & NSE Commencement of reverse logistics operations Commencement of manufacturing Acquisition of remaining Commencement of manufacture of of washing machines by DAPL shareholding of DAPL & DBMPL colour TVs (erstwhile subsidiary) (erstwhile subsidiaries) 1996 2009 & 2010 2014 2016 1994 2008 2010 2015 2017 Achieved more than INR 10 Bn of Establishment of revenue from operations on a Noida I Facility standalone basis Commencement of commercial Commencement of manufacture of mobile manufacturing in the metal sheet and phones through JV, PEPL moulding segments by DBMPL (erstwhile Granted approval by the GoAP for setting up subsidiary) a manufacturing facility in Tirupati Dixon has emerged as one of the leading design focused products and solutions company Source: Frost & Sullivan Note: (1) DAPL – Dixon Appliances Private Limited; (2) DBMPL – Dixon Bhurji Moulding Private Limited; (3) PEPL – Padget Electronics Private Limited Dixon Technologies (India) Limited Corporate Presentation 5 Business Segments 5 1 Reverse Consumer Logistics Electronics 4 2 Mobile Lighting Phones products 3 Home Appliances Dixon Technologies (India) Limited Corporate Presentation 6 1 Consumer Electronics Overview Business segment overview Product portfolio Products: Manufactures complete range of LED TVs from 19’’ to 65 ’’ and 4K2K technology and Home theatres – 2.1 and 4.1 channel Annual installed capacity of 1.2 Mn units – 10%(1) of the FY16 market size 62.60% capacity utilized during the fiscal year ended Mar 31, 2017 Our customers include private labels such as Reliance Retails, Vijay Sales and leading brands such as Haier and Intex Backward integration into LED panel assembly (clean room), PCB assembly, back light unit and plastic moulding Dixon’s FY16 production is 6x of the next competitor LED TVs Client concentration by Key customers Financial performance (INR Mn) ODM Revenue share (%) FY17 Revenue Haier Appliance (I) Panasonic India Other Private Limited Private Limited 12% 13% 3.0% Haier 9% 9% Abaj Electronics Reliance Retail 3% 2.1% Private Limited Limited Intex 1.6% 1.7% 9% 8,445 4% Mitashi Intex 6,983 Edutainment Technologies (I) Reliance 7,701 Private Limited Limited 10% 7,756 Panasonic 65% Vijay Sales FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Revenue EBTIDA Growth is will be driven by further strengthening relationships with existing customers and increase product portfolio in ODM solution category Note: (1) Source: As per Frost & Sullivan research report on “Indian Consumer Electronics & Appliances Market Study – May 2017” Dixon Technologies (India) Limited Corporate Presentation 7 EMS Opportunity for Consumer Electronics – Television Market FPD TV market to grow @ CAGR of 16%... ….With increasing share of LEDs… FPD TV market by type (Volume) CAGR: FY16-FY21 26.2 Volume: 16.9% 23.1 Value: 15.7% 19.8 17.0 14.5 75% 12.0 92% 10.0 98% 100% 100% 100% 100% 100% 100% 8.0 777.1 693.8 5.0 601 448.1 520.2 315 374.4 160.5 254.4 25.0% 8.0% 2.0% 0.2% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue (INR Bn) Volume (Mn) LCD LED Higher localization and domestic manufacturing to aid to growth opportunities for EMS/ ODM companies OEP data segmented by OEM and EMS production ratio EMS/ODM segment to grow @ CAGR of 55% (FY16 – FY21) Domestic Manufacturing FY16 – (Mn units) Production by EMS / ODM FY16 (Mn units) (Mn Units) 10.8 0.2 17% 8.2 Dixon is the leader in the 0.1 8% FPD TV with a share of 5.9 6.7 1.2 0.6 50.4% in India and is 85% 4.2 15% 0.1 50% ranked number one. The 8% next competitor MEPL is a 2.3 distant second with a 1.2 0.1 0.6 share of only 8.4%. 0.1 0.5 8% 0.1 9% Dixon MEPL SVL FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 OEP by EMS OEP by OEM Videotex Noble Others Growing trust and confidence in EMS and ODM players is leading shift towards outsourced manufacturing Source: As per Frost & Sullivan research report on “Indian Consumer Electronics & Appliances Market Study – May 2017”; OEP – Original Equipment Production; MEPL – Malhotra Electronics Pvt. Ltd. Dixon Technologies (India) Limited Corporate Presentation 8 2 Lighting Products Overview Business segment overview Product portfolio Products: Manufactures CFL Lamps, Ballast, Tube lights, Batten, CFL PCB, Downlighters, CFL/LED Drivers LED LED bulbs 0.5W to 20 W; Downlighters 5W to 15W; Battens; T- LEDs 20W to 24W Annual installed capacity (Mn units): CFL lamps (48.0) & LED lamps (126.0) and LED Products drivers (6.0); Ballast (15.6); Others1 (64.8) 53.48% capacity utilized during the fiscal year ended Mar 31, 2017 Acquired design capabilities for CFL and LED lighting solutions from 0.5W to 20W CFL Lamps CFL Lamps 5W to 27W and include main electronic board designing, mechanical and light source and packaging designing Backward Integration include sheet metal, plastic moulding and wound components Indoor LED drivers 5W to 20W; Outdoor LED drivers 20W Lamp Drivers Exporting CFL/LED lamps to parts of Europe, Africa and Asia to 150W; Electronics lamp driver 10W to 40W Secured prestigious government tender for supply of 45 Mn LED lamps Client concentration by Key customers Financial performance (INR Mn) ODM Revenue share (%) FY17 Revenue 45% 10% 5.2% 40% Philips Lighting India Limited 3.2% 2.8% 3.0% Surya Roshni Limited 5,508 4,295 12% 3,077 3,006 4% 90% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Philips Other Revenue EBITDA Dixon serves top players of the market covering ~40%2 of the share and plans to increase product portfolio in ODM solution category Note: (1) Others include downlighters, tubelights and battens, CFL PCB, Deco lamp; (2) As per Frost & Sullivan research report on “Indian Consumer Electronics & Appliances Market Study – May 2017” Dixon Technologies (India) Limited Corporate Presentation 9 EMS Opportunity for Lighting