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Teaser Chemic


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A Buy Out Opportunity of a Chemical Manufacturing company with Marquee clients together with high value commercial real estate.

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Teaser Chemic

  1. 1. Project ChemicBuyout Opportunity Presentation March’ 2012 Strictly Private and Confidential 1
  2. 2. Presented by Andal Equity Advisors Contact Syamala Prasad.O +91 - 98491 07722 Strictly Private and Confidential 2
  3. 3. Company Overview About the company • Headquartered in Hyderabad, with three decades of history • Manufactures a range of sodium and other fine chemicals • Operates in three different manufacturing units comprising facilities ranging from gram level to full fledged production • In house R&D facility • Widely spread Industrial Clientele • Listed on both BSE and NSE Management • Managing Director - Graduation in Mechanical Engineering Fellow member of a government institute, India • Director / Chairman - Doctorate in Chemistry Worked as head of Central govt. research Institute “ The Company has Expertise in manufacturing, handling and producing products related to sodium, and variant metal derivatives such as Amides, Azides & compounds etc”Note: 1. Information from Annual Reports Strictly Private and Confidential 3
  4. 4. Facilities Overview Manufacturing Facilities Built up area of more than 7000 sq meters for manufacturing wide rage of Unit I Sodium and other fine chemicals, is located at a distance close to the headquarters An additional facility of more than 3000 sq meters built up area is Unit II operating for production of varieties of chemical compounds Recently started facility with focus on carrying out specialized reactions Unit III such as Chlorination, Cyclisation, Nitration etc. R&D Facilities Lab I Around 10oo sq meters of lab for Operation & Research Lab II Around 17oo – 2000 sq meters of lab for low quantity production Around 2500 sq meters multi storey building for scaling up the products to Lab III commercial range usageNote: Strictly Private and Confidential 4
  5. 5. Business Overview Production InformationProduct I DetailsParticulars 2008-09 2009-10 2010-11Installed Capacity (In MT) 4400 4400 5000Production (In MT) 1597 1803 1969Sales (In MT) 1606 1793 1968Utilization rate(%) 52% 56% 58%Product II - DetailsParticulars 2008-09 2009-10 2010-11Production (In MT) 700 666 933Sales (In MT) 700 666 933 Financials Segment Results 800 685.4 691.5 In Rs. Millions 700 600 604.1 580.5 Particulars 2009-2010 2010-2011 Unit 1 279 371 In Rs. Millions 500 Sales 400 300 Unit 2 296 283 200 130.0 121.7 80.8 Unit 3 - 3 100 0 87.8 65.4 31.2 -53.9 EBIT Unit 1 35 17 -100 2008-2009 2009-2010 2010-2011 2011-2012 Unit 2 68 54 -117.4 -200 Unit 3 - -17 Sales EBITDA PATNote: Utilization rate includes both the products’ Production Capacity Strictly Private and Confidential 5
  6. 6. Customers FY 11 Sales by top 10 Customers (INR Mn) Rallis India 58 Archimica SRL 41 Teva Plantex Chemical Industries 40 Chemsource SA 35 Allwin Asia 34 DKSH Japan KK 33 Hetero Labs Ltd 32 Aurobindo Pharma LTD 25 Aarti Drugs 24 Vivimed Labs Ltd 17 Top Customers Net 339 Total Revenues 657 Contribution by top customers 52%Note: Financial Information from the Company’s 2010-2011 Annual Report Strictly Private and Confidential 6
  7. 7. Machinery Details Machinery Unit I Unit II Unit III Water Source (Cubic m/day) 150 150 350 Water Storage( Cu.m) 300 200 200 Power (KVA) 750 500 200 Standby Power (KVA) 1145 1255 750 Hot Oil System (K.Cal) 24 L 20 L 8L Cooling Water 300TR 300TR 150TR Steam (Kg/hr)Pressure 1T, 7kgs/cm 3T, 7kgs/cm 3T, 7kgs/cm 2 2 2 o Refrigeration (-10 c) 80 TR 40 TR 100 TR o Refrigeration (-40 c) 2 TR - 100 TR Bulk Liquid Storage 500 Cu.m 600 Cu.m 200 Cu.m Plant Reactors 200 Cu.m 150 Cu.m 100 Cu.m R&D Reactors 14 Cu.m 4 Cu.m - Inert Gas 50 Cu.m/hr 70 Cu.m/hr 100 Cu.m/hr Distillation Columns (No.s) 1 1 - Mixers/Blenders 14 14 1 Dryer (No.s) 4 2 1 Centrifuges(No.s) 8 3 4 Incinerator (N0.s) 1 1 2Note: Financial Information from the Company’s 2010-2011 Annual Report Strictly Private and Confidential 7
  8. 8. Valuation SummaryAs per books Assets In Rs. Crs Gross Block 65 Acc. Depreciation 16 Net Block 49 Networth In Rs. Crs Share Capital 10 Reserves & Surplus 56 Total 66 As of 13-March-2012 In Rs. Crs Book Value (in Rs) 66 Market Cap 40Note: Financial Information from the Company’s 2010-2011 Annual Report Strictly Private and Confidential 8
  9. 9. Valuation Summary (cont.) Book Value Market Value Particulars In Rs. Crs In Rs.Crs Land & Buildings 20.0 100.0 Plant & Machinery, Other Equipment 66.0 39.6 IT Refund (Due in the First quarter of FY 2012-2013 6.0 Debt outstanding -23 -23.0 63.0 122.6 Market Value Land & Building details Description In Rs.Crs Unit I 5 Acres 60.0 Unit II 5 Acres 20.0 Unit III 15 Acres 20.0 Total 100.0 Note: • Unit I Operations are Shutdown, except for R&D • Workers’ Settlement is Completed • Property good for any mixed used developmentNote: Financial Information from the Company’s 2010-2011 Annual Report Strictly Private and Confidential 9
  10. 10. Transaction SummaryPromoters’ seeks to sell 100% of their Shareholding to any Investor or group of Investorsfor a minimum consideration of Rs. 100 Crores Shareholding Pattern 30% 70% Promoters Retail InvestorsNote: Financial Information from the Company’s 2010-2011 Annual Report Strictly Private and Confidential 10
  11. 11. DisclaimerThis material was produced by Andal Equity Advisors (hereinafter referred to as “Andal”). The objective of this informationmemorandum is to provide to Prospective Investors with information related to the Investment/Business OpportunityThis document is not for distribution and directed only to Prospective Investors that have been selected by Andal, in the capacity ofIndependent Advisor, on private and exclusive basis and for the purpose of providing information of the project and investmentopportunity.Information and opinions contained herein have been compiled or arrived by the Manufacturers and their Advisors from sourcesbelieved to be reliable and submitted to Andal, but Andal has not independently verified the contents of such documents.Accordingly, 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 the information and opinions contained in this document. Andal accepts no liability for anyloss arising from the use of this document or its contents or otherwise arising in connection therewith. This document is not to berelied upon or used in substitution for the exercise of independent judgment.Andal shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other documentprepared by Andal for, or sent by Andal to any person and any such person shall be responsible for conducting his own investigationand analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in theproject forming the subject matter of this or other such document.Neither this report nor any copy hereof may be distributed. Persons who receive this presentation should make themselves aware ofand adhere to any such restrictions. By accepting this report you agree to be bound by the foregoing limitations. Strictly Private and Confidential 11