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Minda Industries Limited Corporate Presentation

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  • 1. Corporate Presentation | MINDA Industries Limiteda BRIGHT FUTURE ahead August 2010
  • 2. Contents03 About the Group13 Growth over the last five years15 Industry Outlook24 Business Review30 Key Strengths32 After Sales Network35 Shareholding Pattern - Group37 Resurgence40 Financials
  • 3. ABOUT THE GROUP
  • 4. ABOUT THE GROUP Group Structure Minda Investments Ltd + NKM + FamilyMinda Minda Minda PT Minda Jindal Soft Minda Minda TokairikaIndustries Mindarika Emer Acoustic Asean Italia Vietnam Autogas Minda IndiaLtd(BSE/N Pvt Ltd Technologi Ltd Automotive Seating Company Ltd Pvt LtdSE Listed) es Ltd Ltd Pvt. Ltd Ltd2W Switches 4W Switches Pressure Pressure Horns Lock Sets Seat Switches Seat Belts Regulator Regulator AssemblyHandle Bar PWS Panel LocksAssembly Gas Air Gas Air Switches OPS Mixture MixtureLevers & Brake HVACHolders Gas ECU Gas ECU Switches MirrorsElectronics- Fuel Control Fuel Control Handle BarECU Valve Valve SwitchesLightingsBatteryBlowMoulding 04
  • 5. ABOUT THE GROUPA brief introductionA diversified, customer oriented, multi-product and multi-location organisationProducts include lighting, batteries, horn – 2/3/4 wheelers, switches – 4 wheelers andCNG/ LPG KitsFormed in 1958 by the founder Chairman late Mr S L MindaThe group has grown multifold under the dynamic leadership of Mr N K Minda who tookover as the Managing Director since 1995Annual turnover of Rs. 1313 cr. ($ 297Mn.) in 2009-1021 manufacturing facilities in India16 Marketing and design offices across 9 cities in IndiaGreenfield manufacturing facilities at Indonesia and VietnamJV’s with global technology leadersInnovative design solutions 05
  • 6. ABOUT THE GROUPRs.1313 cr. ($ 297 Mn.) Annual turnover in 2009-1034 Patents awarded54 Design registrations3% R&D spend as a proportion of annual turnover15 Product lines5850 Employee strength52 Senior Management strength33 Average age of employee 06
  • 7. ABOUT THE GROUPShared Values & Vision MINDA Values MINDA Vision Customer is Supreme Group to be Global Benchmark in QPCDSM by Focus on Quality 2012-13 and pioneer in Respect for an Individual Technology by 2014 - 15 Respect for Work Place ethics Encourage creativity & innovation to drive people, processes and products “Not the words but how honestly values are followed and respected makes a key differentiator” 07
  • 8. ABOUT THE GROUPDesign capabilitiesFully integrated design cellAutomotive styling capability‘Class A’ surface modelingHand and digital sketchingClay modelingMock-up generationRapid prototypingSimulations – Thermal/ Optical / OthersInvolvement with customer right from initial stageMechanism Dynamic Option for Simulation (MDO) 08
  • 9. ABOUT THE GROUPJV’s and collaborationsPartner Head office Product rangeTokai Rika Japan • Automotive switches • Outer rear view mirrorsTYC Taiwan • Automotive lightingSoft Italy • SeatingKyoraku Japan • Engine rooms, interior and exterior parts • Energy absorbing partsFiamm Italy • Starter batteries • Stand-by batteriesEmer Italy • Alternate fuel kits – CNG/LPG • Alternative fuel components 09
  • 10. ABOUT THE GROUP Manufacturing Nalagarh locations in Sonepat Haridwar India Manesar PantnagarThe group also has Aurangabadmanufacturing locations in MumabiIndonesia and Vietnam Pune Bangalore Hosur Mysore Manufacturing 10
  • 11. ABOUT THE GROUP Milestones 1958 1960 1980Group foundation; Ammeter Switch manufacturing Automotive lightingmanufacturing manufacturing 2001 1995 1993Switch Unit in Pune JV with Tokairika – ‘First Horn manufacturingestablished full fledged base financial JV in Minda Group’in Western India. Manufacturing Turning Point 11
  • 12. ABOUT THE GROUP Milestones (contd.) 2003 2004 2007Collaboration with TYC Manufacturing plant in Collaboration with Kyoraku,Brother Industrial Company Indonesia – First Japan; Tie-up with FIAMM;for lighting technology International Battery manufacturing manufacturing Plant 2010 2009 2008Head Light manufacturing Seat belt manufacturing (JV Blow moulding manufacturingfor 4Wheeler for VW with Tokoirika); JV with EMER spa, Italy for Fuel Kits; Manufacturing plant in Vietnam Manufacturing Turning Point 12
  • 13. GROWTH OVER THE LAST 5 YEARS
  • 14. Growth of the Company over thelast five yearsTurnover (Rs. in million) PAT (Rs. in million) Capital Employed (Rs. in million) 2,838 6,248 229 2,404.2 2,010.8 4,946 4,441 4,591 157 1,668 152 130 135 3,066 1,1142005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 14
  • 15. INDUSTRY OUTLOOK
  • 16. INDUSTRY OUTLOOKAuto IndustryIndia is the world’s second largestmanufacturer of two wheelers and seventh Increasing production overlargest car manufacturer and has emerged the yearsas one of the favorite investmentdestinations for automotive manufacturers Type of vehicle CAGR (2002-09)The industry recorded the highest ever Passenger vehicle 18.4%sales of 12.3 million units in 2009-10,making it the second fastest growing market Commercial vehicle 15.9%after China Tractors 11.1%The industry is expected to be worth 2 Wheeler 11%US$145 billion by 2015-16 form the currentvalue of US$ 35 billionIt is expected to contribute towards 10% ofIndia’s GDP and 30-35% of the IndustryGDP by 2016 16
  • 17. INDUSTRY OUTLOOKOEM presence across India 17
  • 18. INDUSTRY OUTLOOKInvestments by the OEMs In India (%)OEM Total investments OEM’s market share in India 0.9% 3.3% 1.8%Hyundai US$ 1 billion 3.1% 3.6%Nissan-Renault US$ 1 billionVW US$ 750 million 10.5%General motors US$ 650 million 46.3%Ford US$ 500 millionMaruti Suzuki US$ 380 millionToyota US$ 310 million 30.5%Honda US$ 250 millionTata Motors US$ 240 million Maruti Suzuki Hyundai Tata Motors General motors Honda Ford Skoda Others 18
  • 19. INDUSTRY OUTLOOKAuto Component Industry Classification Auto Segment Component Demand Two and three- 34 %Based on technology and quality wheelers Passenger cars 33 %Tier 1 consist of MNCs - supply complete systems Commercial 24 %Tier 2 - large and medium sized industrial units vehicles Tractors 9%Tier 3 - small and unorganized units Product RangeUnorganized - counterfeit parts Source: ACMA 19Based on end user classification 31OEMs- 67% of sales 12Exports - 14% (with over 60% of exports to Europe and USA) 7 12After market-sales 19% of sales 9 10 Engine Parts Drive Transmission & Steering Parts Suspension & Braking System Body & Chasis Equipments Electrical Parts Others
  • 20. INDUSTRY OUTLOOKAuto Component Industry ClassificationForeign Foreign Indian Indian CaptiveOEMs suppliers OEMs suppliers Suppliers • Delphi • MindaGeneral Bosch Tata Bharat Forge Kunal Engineering • Sono Koyo SteeringMotors Motors (HH) • Denso • Shriram PistonsBMW Valeo Maruti Sundaram Napino (HH) Suzuki FastnersMercedes Eaton M&M Shriram Delhi-Gurgaon-ManesarBenz PistonVolvo Arvin Bajaj Auto Rico Auto Meritor JamshedpurVolkswagen Motherson TVS Sona Koyo Kolkata Sumi Motors Steering Halol • Amtek IndiaFiat Continental Hero Rane Group • International Auto Honda • Bharat Forge Pune-Nasik Forgings • SKF bearings Aurangabad • JMTCummins Delphi Ashok Lucas TVS Endurance(BAL) • Tata Johnson Leyland • EnduranceFord Visteon HM TACO Varrock (BAL)Toyota Denso Atul Auto Amtek Auto Chennai Bangalore HosurNissan TRW Munjal Showa • Sundaram Fasteners • Visteon Exide • Rane TRW • Lucas TVS Minda • Bosch Industries Jai Ushin 20
  • 21. INDUSTRY OUTLOOKAuto Component IndustryMinda has significant scope for growth in the OEM market given its expertise inreplacement market 7% 6% Minda’s revenues share 87% Replacement Market Original Equipment Export market 21
  • 22. INDUSTRY OUTLOOKAuto Component IndustryParts manufactured in the Indian auto component industry 7% 9% Electrical Parts 10% Engine Parts 31% Drive transmission & Steering Parts 12% Body & Chasis Suspension & Braking Parts 12% Equipments 19% Others 22
  • 23. INDUSTRY OUTLOOKGrowth DriversGrowing middle classChanging life styleDemographicsRising per capita incomeIncrease in rural demandImprovement in road infrastructureLow penetration rate of cars (8/1000)Low cost of skilled manpower and design capabilityIncreasing Government support in terms of infrastructure improvement and allowingforeign investments in the sectorThe entry of new generation vehicles and the resultant demand for genuine spare parts 23
  • 24. Business review
  • 25. BUSINESS REVIEWProducts and theircompetitive positioningSwitch Market leader in India with 60% market share.Lights In top 3 with fully integrated manufacturing facilities, except Bulb & WH.Battery New entrant, Huge market, strong technology backup.Blow moulding New entrant, strong technology backup.Auto gas First OEM supplier in India with In-house assembly & testing facilities.Horns Supplies to all auto segment including 2/3/4 wheeler both to OEMs & after market. 25
  • 26. BUSINESS REVIEWProducts Profile Source : Based on data received from Marketing DepartmentSWITCHES Used in 2 wheelers BATTERIES Used in 2 wheelers and 4 wheelersShare in the Market – 66% Share in the Market – 7% in 2 wheeler batteries • Largest manufacturer of 2W/3W 2% in 4 wheeler batteries switches in India • Largest manufacturer of 2W/3W switches • Contributes ~ 75% of the total revenues in India of MIL. • Contributes ~ 75% of the total revenues • Key customers ~ Bajaj, TVS, Hero of MIL. Honda • Key customers ~ Bajaj, TVS, Hero Honda • Revenue Break-up • Revenue Break-up – OEMs - 90%, exports 5%, after- – OEMs - 90%, exports 5%, after- market - 1% market - 1%LIGHTING Used in 4 wheelers BLOW MOULDING Used in 4 wheelersShare in the Market – 7% Share in the Market – 3% • Head lights, lights for 2/3/4 wheelers • Set recently with an investment of Rs. 150mn • Technical assistance agreement with • Technical assistance from Kayoraku, Japan TYC Brothers, Taiwan • Servicing Toyota Kirloskar for “Innova” Model. • Contributes ~ 20% of the revenue • Products include Air ducts, Duct defrosters, Duct heater, Deck • Key customers ~ Tata Motors, M&M, Board, reservoir tanks, Spoliers and Arm Rest maruti and VW (recent addition) • Revenue Break-up – OEMs - 90%, exports 4%, after-market - 7-8% 26
  • 27. BUSINESS REVIEWProducts Profile Source : Based on data received from Marketing DepartmentCNG/ LPG KITS Used in 4 wheelers SWITCHES Used in 4 wheelersShare in the Market – 35% Share in the Market – 46% • Large player in LPG kit segment • Relationships with leading component • Largest 4Wswitch manufacturer in India suppliers Technical collaboration with Tokairika, • Recent JV with EMER for developing CNG Japan, a Toyota Group Company kits • Key customers ~ Maruti, Tata Motor, • Key customers ~ Maruti, Tata Motor, Ford, GM Toyota • Revenue Break-up • Revenue Break-up – OEMs - 96%, exports -3%, after- – Product – 96%, Fitment Charges – 4% market - 1%HORNS Used in 2 wheelers and 4 wheelers. REPLACEMENT MARKET Switch, Horn,Share in the Market – 15% in 2 wheeler horns. 15% Lights, Batteryin 4 wheeler horns • Distribution network of 300 dealers spread across 91 A, B • Technical Agreement with FIAMM and C category cities Capacity of over 25 mn horns across 3 • Separate production units in tax exempt zones to reduce facilities costs • Key customers ~ Bajaj, TVS,Tata Motors, FIAMM • Revenue Break-up – OEMs - 35%, exports 50%, after- market - 15% 27
  • 28. BUSINESS REVIEW Revenues (Rs. in million) Proportion of Total Revenue (%)12000 12010000 100 8000 80 6000 60 4000 40 2000 20 0 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (E) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (E) Horns Auto Gas Blow Moulding Battery Lights Switch Horns Auto Gas Blow Moulding Battery Lights Switch 28
  • 29. BUSINESS REVIEWInvestments in Capacity Creation overthe last 5 years Rs. In lacs 2005-06 2006-07 2007-09 2008-09 2009-10Switch 1690 2431 977 1079 1695Lights 1744 2062 897 519 6951Battery N.A. 1847 2626 485 553Blow moulding N.A. N.A. 683 219 29Auto gas 6 100 167 229 101Horns 3019 959 42 740 88 29
  • 30. Key Strengths
  • 31. KEY STRENGTHSKey StrengthsPresence across 2W, 3W and 4W segments, Tractors & Off Road Vehicles.Rich product portfolioLeaders in 2W, 3W and 4W wheeler switches space and amongst top three in lighting and hornsbusinessStrong customer relationshipsExcellent vendor baseFully integrated manufacturing unitsMarketing network all across India and the worldJoint ventures and collaborations with global leadersDedicated R&D Team of more than 40 EngineersLarge number of design patentsRich talent poolProfessional management 31
  • 32. After sales network
  • 33. AFTER SALES NETWORKProduct Basket2500 spare parts and components procured from 15 countrywide supply pointsDistributor Reach250 dealers spread across 91 cities40 Missionary Sales Representatives for grass roots level demand generation.36 Sales officers and Area Manager located in the key markets18 depots in all major states of the country 33
  • 34. AFTER SALES NETWORKRevenue growth overthe last 5 years Revenues (Rs. in million) 266 268 246 231 214 73% 2005-06 2006-07 2007-08 2008-09 2009-10 CAGR 34
  • 35. Shareholding Pattern - Group
  • 36. GROUP SHAREHOLDING 29% N K M Group N K M Group 71% 100% 100% N K M Group PublicMinda Industries Ltd Minda Acoustics Ltd Minda Autogas Ltd 5% 14% 26% 35% 60% 50% 50% 60% N K M Group Tokairika Sumitomo N K M Group Emer N K M Group Jindal Soft ItaliaMinda Industries Ltd Minda Emer Technologies Ltd Jindal Soft Italia Seating Pvt. Ltd. 30% 50% 50% 50% 50% 70% N K M Group AKM Group N K M Group AKM Group N K M Group Tokai RikaPT Minda Asean Automotive Ltd Minda Vietnam Company Ltd. Tokai Rika Minda India Pvt. Ltd. 36
  • 37. Resurgence
  • 38. RESURGENCEBusinesses being consolidated under the flagship, Minda Industries LtdStrong consolidated balance sheet to drive investmentsRenewed management focus – value creation in the flagship companyAll stakeholders to benefit – shareholders, customers, suppliers etc 38
  • 39. RESURGENCERestructuringMinda Industries LtdConsolidation of Minda Auto Gas w.e.f. FY 10Consolidation of Minda ACOUSTIC w.e.f. FY 11After market business being consolidated w.e.f FY 10Consolidation of 27% stake in four wheeler switch business w.e.f FY 10 39
  • 40. Financials
  • 41. FINANCIALSConsolidated Financials (Rs. in million) MIL+MACPL+ MIL+MACPL+ MIL MIL MAGL MAGL+MAL 2007-08 2008-09 2009-10 2010-11 Net sales 3961 4457 7,122 9,823 EBITDA 484 589 928 1,141 PBT 198 210 495 575 PAT 157 152 355 433 Net worth 651 770 1,730 2467 DEBT 1360 1634 1491 1,720 EBITDA Margin 12.22% 13.21% 13.02% 11.61% PAT Margin 3.97% 3.40% 4.98% 4.41% ROCE 15.56% 15.58% 20.15% 15.49%* consolidation of auto gas & after market w.e.f FY10 and Horns w.e.f FY11** merger of auto gas and horns subject to statutory approvals” 41
  • 42. Thank You MINDA Industries LimitedCorporate Office AddressMinda Industries Ltd.Village Nawada FatehpurP.O. Sikanderpur BaddaManesar, Distt., Gurgaon – 122004Haryana, India.Website: www.mindagroup.comFor further details contact at: info@mindagroup.com