Corporate Presentation | Q4, FY 2014 Ashok Piramal Group Overview
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5, 87, 162 123,143,201 179,188,223 153,51,102 192,192,192 Corporate Presentation | Q4, FY 2014 Ashok Piramal Group overview 5, 87, 162 Ashok Piramal Group 123,143,201 63.8% 55.7% Listed Morarjee Textiles Peninsula Land 179,188,223 Unlisted (Market Cap: Rs.134 Cr) (Market Cap: Rs.1,107 Cr) 153,51,102 PMP Miranda Tools Piramal Renewable Pune FC (Auto Components) (Cutting Tools) Energy (Sports) 192,192,192 Diversified, family-owned, professionally managed business conglomerate with operations spread across India and Europe Group market cap of ~Rs 1,250 Cr as of 30 May 2014 Group revenues of Rs. 1,155 Cr and EBITDA of Rs 260 Cr for FY 14 Strong focus on cash generation and prudent risk and investment philosophy 2 Company overview 5, 87, 162 Pioneer in Mumbai real estate market ; with the first retail mall and first textile mill re-development project in the city 123,143,201 Executed projects aggregating to 6.4 mn sq ft (current market value ~Rs14,000 Cr), presence in 3 states and 7 cities Over 18.3 mn sq ft development in pipeline primarily in Mumbai, Pune and 179,188,223 Bengaluru Access to multiple sources of capital : 153,51,102 Joint Ventures, Joint Development and PMC with Land Owners 192,192,192 Private Equity, Mutual Funds, and Financial institutions Two real estate funds - Rs. 160 Cr Peninsula Realty Fund & Rs. 1,200 Cr Peninsula - Brookfield Fund (JV, with Brookfield, Canada) 3 Milestones 5, 87, 162 JV with Brookfield, Canada for Real Estate fund management 2013 123,143,201 Completed Ashok Gardens at Parel 2011 Acquisition of projects in South 179,188,223 Mumbai, Pune , Bengaluru and 2014 other Tier 2 cities 2012 2009 2010 Acquisition of NGE, Raised Rs 525 Cr 153,51,102 Byculla through QIP Acquisition of Celestia spaces and Completed development Completed Ashok of Peninsula Technopark and Pipeline of ~18 mn 2008 Towers at Parel Peninsula Business Park 192,192,192 Raised Rs 156 Cr sq ft in west and through QIP south India 2006 2005 Developed low income housing project at Kanjur Marg 2003 Developed Peninsula Corporate Park – 1st mill redevelopment project in Mumbai 1999 1997 Developed “Crossroads” – one of the earliest malls catering to international standards in Mumbai Foray into real estate development business 4 Developed marquee destinations in Mumbai 5, 87, 162 Location : Lower Parel, South Central Mumbai Saleable Area : 1.3 mn sq ft (6.5 acres), comprising of two towers of 20 floors each Peninsula Occupants : Cipla, HDFC Group, Tata Capital, Tata AIG, Rabo Bank, Jones Lang Lasalle, 123,143,201 Business Park DCB Sold one tower at under construction stage to Alok Industries for Rs. 1,100 Cr as a project de-risking strategy in 2007 179,188,223 153,51,102 Location : Parel, South Central Mumbai Saleable Area : 1.1 mn sq ft, (18 acres) comprising of four towers of 30-50 floors Configuration : 550 apartments comprising of studios 2, 3, 4, 5 BHK , penthouses and Ashok Towers garden duplex 192,192,192 Project USP: 85% of project open to sky, very rare in Mumbai First textile mill redevelopment project in Mumbai. Peninsula Location : Lower Parel, South Central Mumbai Corporate Park Saleable Area : 0.9 mn sq ft (11.90 acres) Occupants : Vodafone,Disney, Loreal, KKR, Piramal Enterprises, Amarchand Mangaldas, Reuters, Capital First 5 Developed marquee destinations in Mumbai (contd…) 5, 87, 162 Location : Kurla off BKC Peninsula Techno Saleable Area : 0.9 mn sq ft (5.6 acres) of IT / ITES park Occupant : Sold to Essar Group for 1,275 Cr 123,143,201 Park 179,188,223 Location : Sewree, Central Mumbai Saleable Area : 0.9 mn sq ft (12 acres) comprising of two 23 storey buildings with three Ashok Gardens wings each 153,51,102 Configuration : 650 apartments comprising of 2,3,4 & 5 BHK apartments 192,192,192 Location : Tardeo, South Mumbai Developed in 1999, India’s first shopping mall with international standards Crossroads Saleable Area : 0.2 mn sq ft Location : Nariman Point, South Mumbai Saleable Area : 0.2 mn sq ft CR2 Configuration : Mall-cum-Multiplex with 8 floors of parking for ~500 cars Developed as a JV with Larsen & Toubro Occupants are some of the biggest international Brands 6 Execution track record 5 (mn sq ft) 5, 87, 162 4.1 4 3 123,143,201 2 2.0 1 0.3 0 179,188,223 1997-2004 2005-2009 2010-2014 1997-2004 (0.3 mn sq ft) 2005-2009(2 mn sq ft) 2010-2014 (4.1 mn sq ft) 153,51,102 Peninsula Centre Peninsula Corporate Park Peninsula Business Park Palm Beach Bayside Mall Peninsula Technopark Crossroads CR2 Center point 192,192,192 Kanjurmarg Ashok Towers Ashok Gardens 6% Residential 44% Commercial Retail 50% Company to focus on residential, poised to deliver 2x of it’s past delivery over the next 5 years 7 Experienced Board of Directors 5, 87, 162 Leadership team 123,143,201 Urvi Piramal Rajeev Piramal Mahesh Gupta 179,188,223 Group Chairperson Vice Chairman & Managing Director Group Managing Director > 29 years experience of managing diverse Leads strategy for PLL ; actively oversees > 3 decades of experience in all facets of business expanding land bank , making acquisitions management including M&A , strategic Recognitions for her exemplary work include and development of properties planning, treasury, corporate law and 153,51,102 the Qimpro Gold Standard Award, Selected in top 50 young achievers by a operational turnaround Outstanding Industrialist Award and popular business magazine Awarded ‘’ CFO of the year ‘’ in 2001 and Cheminor Award Co-Chair at FICCI real estate committee Special Recognition for Financial Excellence 192,192,192 by IMA Board members committed to best Corporate Governance Practices Expertise: Taxation, Audit and Finance Sudhindra Expertise: Strategy, Re-engineering & Technology Bhavna Senior advisor to KPMG Khanna Retired from Accenture as Global Managing Partner Doshi Has been member and advisor of various business Expertise: Real Estate development Jaydev Mody bodies, ICAI Key role in development of projects in/around Mumbai Expertise: Policy Making and Strategy Expertise : Legal Former Secretary in Ministries of Industries and D. M. Popat Ajay Dua Senior partner at Mulla & Mulla & Craigie Blunt & Caroe Commerce, GOI. Has worked as Chairman/MD of Expertise: Management, Operations, Risk Assessment & Lt. Gen. NHPC/REC, MHADA Leadership Expertise: Banking and Finance Deepak Amitabha Kargil war veteran and recipient of Uttam Yudha Seva Previously Deputy Governor of RBI and Chairman of Summanwar Ghosh Medal Allahabad Bank 8 Scaled up management structure to support growth 5, 87, 162 VC & MD 123,143,201 Head – Special 179,188,223 Head Strategy & Chief Design Head Business Head – Sales & Project & Head – HR CFO COO Head Liaison Planning Advisor Development Marketing Commercial & Retail Sales 153,51,102 Clusters 192,192,192 Organisational structure revamped based on advice of Accenture Cluster concept introduced to focus on execution and delivery Total Number of employees - 343 New Positions created 9 Scaled up management structure to support growth (contd…) 5, 87, 162 VC & MD 123,143,201 COO 179,188,223 153,51,102 Cluster Head – Cluster Head – Cluster Head –Pune – Cluster Head –West 1 Cluster Head – Procurement & Mumbai 1 – NGE Mumbai 2 – Celestia Tathavade and – Nashik, Lonavala Bengaluru – JP Nagar Contracts Byculla, Carmichael Spaces and Hinjewadi and Goa and Mahadeopura road Bishopsgate 192,192,192 Cluster head is supported by respective Cluster teams and site teams Every cluster comprises of a cross functional team that looks after Design , Procurement & Construction Each cluster is responsible for 2 or more projects within the same geographical location Enables scalability, as clusters can be added/ re-allocated as per business needs 10 Robust pipeline and renewed geographic focus 5, 87, 162 Presence in Key urban Tier 1 & 2 Cities in Western & Southern India Completed Ongoing Pipeline 123,143,201 No of Projects Area (mn sq ft) No of Projects Area (mn sq ft) No of Projects Area (mn sq ft) Mumbai 12 6.4 2 0.6 4 1.9 Pune 1 0.5 2 12.3 179,188,223 Bengaluru 2 1.3 A 12 6.4 3 1.1 8 15.4 153,51,102 Others: Nashik 1 0.6 192,192,192 Goa 1 0.3 Alibaug 2 0.7 Lonavala 1 0.3 B 0 0 3 1.2 2 0.7 A+B 12 6.4 6 2.3 10 16.1 Mumbai, Pune and Bengaluru remain our focus 11 Acquisition of NGE Byculla land 5, 87, 162 Site map Primary access through Ambedkar Road 123,143,201 179,188,223 153,51,102 192,192,192 Description Details Description Details Location Byculla PLL stake (%) 57% Land area 5 acres PREI Fund (JV Partner ) 43% Land cost Rs. 682 Cr Expected launch timeline Q2 FY 16 Zoning as per municipal records Residential Current Selling prices in the vicinity (Rs. / sq ft) 25,000- 30,000 Saleable area 500,000 sq ft 12 5, 87, 162 123,143,201 179,188,223 Projects Overview 153,51,102 192,192,192 Ongoing projects – till March 14 (cumulative) 5, 87, 162 Saleable Area Sold Sales Average Collections Projects Area (sq ft Location PLL Share (%) (sq ft in Value Realization (Rs. Cr) 123,143,201 in 000’s) 000’s) (Rs. Cr) (Rs. / sq ft) Ashok Astoria 589 Nashik 100% 282 97 3,443 73 179,188,223 Ashok Nirvaan 352 Lonavala 25% 106 72 6,802 22 Ashok Beleza 247 Goa 58% 44 27 6,135 11 153,51,102 (Plot B & C ) Ashok Meadows 498 Pune 55% 261 124 4,771 40 (Phase 1) 192,192,192 Bishopsgate 86 Mumbai 50% 47 349 74,700 161 Celestia Spaces(PLL 479 Mumbai 100% 57 125 22,064 45 Share) Total 2,251 796 795 352 FY14 sales of 236,000 sq ft with sales booking of Rs.