Company Presentation
October 2011
www.aiaengineering.com
0
www.aiaengineering.com
1.
Industry Opportunity
2.
Business + Management
3.
Financial Snapshot
4.
Growth Strategy
1
Industry: Mill Internals
High Chromium wear resistant parts for grinding & crushing equipment
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2
Industry: Mill Internals (cont’d)
Grinding Media
Rollers & Table liners
Liners
Diaphragm
Blow bars / Hammers
Dipping Tubes
Cement & Mining as key end-user industries
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3
Process Critical Input for Grinding
Optimal design for
given application
• Consistent end product quality
• Increased production volume
• Reduce process costs
A small component of grinding cost, but essential for continuous production
Non availability
Grinding Operations can
come to a halt
Product failure
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4
Industry Size & Scope
• Global market for Mill Internals for mining and cement sectors estimated
at 3 mn MT (Rs 125 bn) and growing at 4-5% per annum
– Mill internals are consumables in grinding mills
– Their design and properties (abrasion, corrosion, impact resistance) are critical to
grinding process efficiency
• Demand driven by new projects and replacement for wear parts
• Industry moving from cost of parts to total cost of ownership, driving
innovation in product development and total solutions
– Move from forged grinding media to high chrome cast media
– Total solutions include design of parts, metallurgy to meet the specific requirement
of the material being ground – varies from plant to plant
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Industry size
Mining Sector Demand at
2.4 mn MT
India 25 KT
Consumable Demand
(mn MT)
Estimated
production
Incremental Grinding
production media
Mill internals
Project Demand
Grinding
media
Mill internals Total
2003-04
1937
67
43,010
187,000
20,100
5,025
255,135
2004-05
2007
70
44,551
193,700
21,000
5,250
264,501
2005-06
2079
72
46,161
200,700
21,600
5,400
273,861
2006-07
2154
75
47,817
207,900
22,500
5,625
283,842
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Cement Sector Demand at
300,000 MT
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www.aiaengineering.com
1.
Industry Opportunity
2.
Business + Management
3.
Financial Snapshot
4.
Growth Strategy
7
Company Overview
•
AIA Engineering Limited (‘AIAE’ ) promoted by Mr Bhadresh Shah, a first
generation entrepreneur, began operations in 1978
•
A niche manufacturer of impact / abrasion / corrosion resistant high chrome
castings with rated capacity of 200,000 MT per annum
•
Products include grinding media , liners, diaphragms etc for cement, mining &
utility industries, with focus on application and end to end solutions
•
Strong focus on metallurgy, process technology – for product development and
process improvement to facilitate total solutions to customers
–
–
•
Basic know how through collaboration (1991 to 2000 ) with M/s Magotteaux, Belgium
Collaboration with Southwestern Corp, UK for process improvements (vertical mills)
Global marketing presence, through 100% owned subsidiaries / branches in USA,
UK , ME , Australia, South Africa, China, Egypt, Brazil, Canada and Philippines.
–
–
Supply contracts with global cement majors like Holcim, Lafarge, Cemex, FL Smidth. Anglo
Platinum, Rio Finto, CVRD, Arcelor Mittal, BHP Billiton.
Domestic customers include leading cement manufacturers, mining companies, major thermal
power plants and OEMs
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Milestones
Initial years
1978 - 1985
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Develop
high
chrome
application
s
Foreign
Joint
Venture
1985 - 1991
1991 - 2001
Independent
global
foot print
2001
onwards
IPO
2005
100K Mt
plant
fully
commissioned
$ 200
million
revenue
mark
2008
2009
9
AIA Engineering – A Total Solution Provider
Application
A
A
Application : Working Conditions
Design of Part
Physical & Metallurgical Properties
M
M
Metallurgy
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D
D
Design
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Charge
Molding
Manufacturing Process
Molds
Melting
Liquid M etal (of desired composition) is
poured in the molds
Ferro Chrome
+
Scrap
Sand
Preparation
C harge is heated
in F urnace
Mold Knock off
M olten metal is allow ed to
solidify in the molds after w hich
mold is knocked off
Charge
Molding
C harge is heated
in F urnace
Molds
Melting
First Inspection
G rinding M edia
O ther C astings
Liquid M etal (of desired composition) is
poured in the molds
Mold Knock off
M olten metal is allow ed to
solidify in the molds after w hich
mold is knocked off
Shot
Blasting
Breaker
Drum
Fettling/
Machining
Dimensional
Inspection
Indiv idual balls are
separated from the bunch
in the breaker drum
First Inspection
O ther C astings
G rinding M edia
Shot
Blasting
Breaker
Drum
Fettling/
Machining
Dimensional
Inspection
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Heat
Treatment
Indiv idual balls are
separated from the bunch
in the breaker drum
G rinding M edia and O ther Castings
are Heat Treated to achiev e the
desired metallurgical prope rties
Hardness
RA
Micro
Final Inspection
11
Marketing
• International marketing presence – under ‘Vega’ brand
–
Wholly owned subsidiaries and offices covering USA , UK, Middle East, Australia
–
Technical team in key offices servicing customer requirements
–
Established relationships with industry majors / technology suppliers
•
–
Holcim, Lafarge, Cemex, FL Smidth. Anglo Platinum, Rio Finto, CVRD, Arcelor Mittal, BHP
Billiton.
Now focusing on opportunities available in global mining & utility sectors
• Domestic business spread across cement and utility/mining sectors
–
ACC Limited, Gujarat Ambuja Cement Ltd., Ultra-tech Ltd., Grasim Industries Ltd.,
etc- in cement segment
–
Kudremukh Iron Ore Company Ltd., Hy-grade Pellets, Hindustan Zinc, Bharat
Aluminium Company-in mining segment
–
Major thermal power plants and OEMs in the utility segment
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12
Total Solutions Approach = Long Term Client Relationships
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13
Organisation Structure
AIAE
200,000 MT manufacturing capacity
Domestic & International Sales Operations
Production &
Sales
Background
Manufacturing Subsidiaries
Welcast Steels
Limited (WSL)
DCPL
Foundries Pvt.
Ltd.
• WSL is a
listed entity.
AIAE holds
72% of its
equity
• DFPL is a
unlisted
entity. AIAE
holds 70%
of its equity
• Manufactures
Grinding
Media
• Manufactures
Grinding
Media
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Marketing Subsidiaries
Vega,
ME
Vega,
UK
Vega,
USA
Vega,
RSA
Vega,
China
• 100%
Subsidiary
of AIAE
• Vega, ME
owns 100%
of Vega UK
• Vega, UK
owns 100%
of Vega
USA
• Vega, ME
owns 100%
of Vega,
RSA
• Vega, ME
owns 100%
of Vega,
China
• Direct Sales
to Asia (exIndia),
Africa (exRSA),
South
America
• Direct Sales
to European
Region
• Direct Sales
to North
America
and part of
Central
America
• Direct Sales
in South
Africa
• Direct Sales
in China
14
www.aiaengineering.com
1.
Industry Opportunity
2.
Business + Management
3.
Financial Snapshot
4.
Growth Strategy
15
Consolidated Financials ( In USD )
PARTICULARS
FY 07
FY08
FY09
FY10
FY11
Q1,12
120
173
201
211
256
59
32
49
53
58
62
14
27%
28%
27%
27%
24%
24%
Interest
1
0
0
0
0
0
Depreciation
2
3
4
5
6
2
Tax
8
11
15
15
14
3
22
33
34
38
41
9
18%
19%
17%
18%
16%
16%
Capital Employed
119
159
164
206
245
256
Networth
113
152
152
201
237
243
ROCE (%)
26%
29%
30%
26%
23%
20%**
RONW(%)
19%
22%
22%
19%
17%
14%**
Sales
EBIDTA
EBIDTA / Sales (%)
NP after minority interest
PAT / Sales (%)
** Annualised
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Consolidated Financials ( Rs. In Millions)
FY 07
FY08
FY09
FY 10
FY 11
Q1,12
Sales
5230
6912
10233
9497
11369
2642
EBIDTA
1407
1955
2717
2611
2738
617
EBIDTA / Sales (%)
27%
28%
27%
27%
24%
23%
Interest
24
17
21
14
19
6
Depreciation
82
136
203
227
254
69
Tax
346
460
750
659
629
150
NP after minority interest
943
1333
1736
1707
1834
391
PAT / Sales (%)
18%
19%
17%
18%
16%
15%
Capital Employed
5184
6379
8324
9280
10950
11499
Networth
4918
6100
7726
9021
10521
10953
ROCE (%) (EBIDTA-DEP/CE)
26%
29%
30%
26%
23%
20%**
RONW(%) (PAT/NW)
19%
22%
22%
19%
17%
14%**
PARTICULARS
** Annualised
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17
www.aiaengineering.com
1.
Industry Opportunity
2.
Business + Management
3.
Financial Snapshot
4.
Growth Strategy
18
Growth Strategy
Capitalize further on
predominant position in
Cement globally
Exploring backward
integration opportunities for
sourcing of certain key
inputs and setting up
a power plant
www.aiaengineering.com
Expand focus on global
mining & utility segments
Increased R&D focus to
further strengthen total
solutions capabilities
Focus on strategic
relationship / commercial
partnerships with
international partners to
gain access to newer
markets
19
Proposed Capacity & Plans
Capacity in tons
250,000
200,000
200,000
165,000
Further expansion of
manufacturing
capacity to 300,000
tons)
150,000
115,000
100,000
115,000
65,000
50,000
0
DecExisting
- 2005
Jun-07
June
- 2007
April -Q408
2008
Mar-09
FY 2010-2011
Implementation
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Thank You
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