Synergy Green Industries Limited

Investor Presentation

SME IPO O N BSE SME

Company Overview

1

Shirgaokar Group

The Ugar Sugar

Work Ltd.

Sugar Industry

Flagship company of

Shirgaokar Group

A NSE and BSE listed sugar

company, having largest ‘single

location’ crushing capacity in

India of 18,000 TDP.

S. B. Reshellers

Pvt. Ltd.

Foundry Industry

Incorporated in 1978 at

Kolhapur, specifically planned

for reshelling of sugar mill

rollers and manufacturing of

new rollers.

Over the period of 29 years

the company, it has grown to

become one of the largest

reshelling unit in the world.

The Pavilion Hotel,

Kolhapur

Hospitality Industry

A two-star hotel in Kolhapur

having 29 rooms.

iResearch

Services

Research & Consulting

iRS is an offshore research

centre, providing tailor-

made, cost-effective and

cutting-edge information

research outsourcing services.

The organisation operated in

KPO space & caters to customers

located in USA, Europe & Asia-

pacific.

SIGL was incorporated under the aegis of Shirgaokar Brother’s Group, having more than 80 years of experience and

cumulative 1200 Cr turnover in various industries like:

Promoters Background

Name &

Position

Mr Sachin R Shirgaokar (52 Yrs)

Managing Director

Mr Sohan S Shirgaokar (37 Yrs)

Jt. Managing Director

Mr V Srinivasa Reddy (48 Yrs)

Executive Director

Academics BE Mechanical, MBA from USA B Com & MBA from Shivaji University B. Tech (Mech), M. Tech (Mfg)

Executive MBA from IIM Bangalore

Career

SGIL Role

Social

Actively involved in managing the business

from inception. His strategy & leadership ability

played vital role in establishing the business

and achieving consistent growth.

Held Chairman's position at CII’s Sothern

Maharashtra Zonal Council & GOSHIMA and

Council member of IIF

Joined S.B Reshellers in 2005 and managing

the business as Joint MD. Board of director

at Ugar Sugar Works Ltd as well.

Actively involved in managing the business

from inception. He has played pivotal role in

building the organization which works with

passion, integrity and commitment.

Convener of CII’s family business

network, Board member of Indo American

Chamber of commerce Pune and Invitee

director of Kolhapur Engg Association

Worked for Simplex Castings, U.P. Steels and

L&T at various capacities in establishing

plants and managing operations.

Actively involved from inception in setting up

the plant, marketing the products, team

building, product development and presently

managing the operations.

Delivering business lectures & writing article

for various associations and active member

of IIF

Started with Sanderson & Associates, New York

and joined S.B Reshellers in 1991, managing

the business as MD. Board of director at Ugar

Sugar Works Ltd as well.

2010

Incorporated

in Kolhapur,

Maharashtra

2011

Commenced

construction

of green field

foundry

with capacity of

12,000 TPA

2012

Commenced

production

2013

Successfully developed products

To Enercon & Regen Powertech

2015

Started business

with Gamesa

(Now Siemens Gamesa)

2016

2018

Getting listed on

BSE Emerge platform

with an IPO of 26.46 Cr

Our Journey2017

Crossed benchmark of

10,000 TPA production

and 100 Cr+ revenue

Started business

with Vestas

(Global leader in Wind)

Infrastructure

A l l s t a t e o f t h e a r t

e q u i p m e n t s f r o m l e a d i n g

m a n u f a c t u r e r s i n t h e w o r l d

S h o p F l o o r

A d m i n

B e s t i n C l a s s

I n f o r m a t i o n

T e c h n o l o g y

A T A S

S i m u l a t i o n

C o m p l e t e

Q u a l i t y T e s t i n g

f a c i l i t i e s

Q u a l i t y

C e r t i f i c a t i o n s

I S O 9 0 0 1

I S O 1 4 0 0 1

I S O 1 8 0 0 1

OUR

PRODUC TS

Wind & Gear Box Castings

H u b : 8 M T B a s e F r a m e : 1 0 M T

P l a n e t C a r r i e r

3 . 5 M T

OUR

PRODUC TS

Casing 17 MT Diffuser 18MT

Mining & Pumps

Main frame 4.5MT Upper frame 3.0MT

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY13 FY14 FY15 FY16 FY17 FY18

12

,00

0 M

T

SGIL: Capacity 9

% 29

%

56

%

68

%

97

%

81

%

12

,00

0 M

T

12

,00

0 M

T

12

,00

0 M

T

12

,00

0 M

T

12

,00

0 M

T

Capacity Utilization Revenue Segments

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY15 FY16 FY17 FY18

Wind Gear Box Non-Wind

OUR

CLIENTELE

10

Wind Gear Box

Mining

Pumps

Industry Overview

3

Bill Gates Predictions for future

1. Artificial Intelligence

2. Clean Energy

3. Bio Technology

0

20,000

40,000

60,000

80,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Indian Annual Installed Wind Capacity (MW) 2008-18

Global Annual Installed Wind Capacity (MW) 2008-172

6,8

50

38

,47

5

39

,06

2

40

,63

5

45

,03

0

36

,02

3

51

,67

5

63

,63

3

54

,64

2

52

,49

21

,76

2

5,4

00

3,4

72

2,2

98

2,0

90

1,6

993

,19

7

2,3

49

1,5

65

1,4

85

1,6

63

Wind EnergyIndustry Outlook

During 2017, renewable investments exceeded

conventional energy on account of competitive

prices and string environmental

For past 4 years global installations are stable with 50

GW plus installations

India has shown 50%+ annual growth during 2014-17

During 2017-18 there was a temporary drop in

installation due to introduction of reverse bidding

system from feed-in-tariff.

With discovery of competitive prices in reverse

bidding system, Indian annual wind installations are

projected to reach 10,000 MW in the next two years.

Top 10 Global wind turbine manufacturers

Customers On

Board

Customers

approved SGIL

facilities and RFQ’s

under discussion

Analysis of Customer Base

Vestas, DenmarkØLargest manufacturer in the world

with 9 GW of annual installations and Rs

2,000 Crore worth casting demand

ØPresently Synergy Green is the only

supplier in India and potential business

opportunity to cross Rs 200 Crore per

annum (10% Share)

ØSales are growing from Rs 7.3 Crore FY

16-17 to Rs 54 Crore in FY 17-18 and

projections for FY 18-19 stands at Rs 80

Crore.

Siemens Gamesa, GermanyØSecond largest manufacturer in the

world with 7.5 GW of annual

installations and Rs 1,500 Crore worth

casting demand

ØSynergy is having 30% of Indian share

with this customer. FY 16-17 sales was

Rs 45 Crore and has potential to cross

Rs 100 Crore business

Analysis of Customer Base

GE, Enercon, Nordex,

Senvion & EnvisonØThese five manufacturers

cumulatively got 16.8 GW of

annual installations and has

got Rs 3,500 Crore casting

demand

ØAll above customers audited

facilities and product

development to be taken up.

These customers offer a

potential opportunity of Rs

350 Crore (10% share)

ZF & Siemens Gear Box

ØLeading wind gear box

manufacturers in the world and

holds 80% Indian market share.

ØSGIL maintains preferred

supplier status with both

customers and has got

opportunity to cross Rs 100 Crore

business

Non Wind customersØTerex (Mining): US based

$8bn company and supplying

for the past 5 years. Present

business is Rs 25 Crore and

has got opportunity to

double the same.

ØPump Industry: Working

with all leading players like

Xylem, Kirloskar, WILO &

Jyoti and offers Rs 25 Crore

annual business

Wind Turbine Casting IndustryGlobal wind casting market was USD 1.81B in 2017 (Rs 12,500 Cr).

China is the largest player having nearly half the market share. While the share of Indian foundries is under 10%.

Major Indian Foundries

A) Synergy Green Kolhapur: 30,000 MT/Annum (Dec 18).

B) SE Forge (100% Subsidiary of Suzlon): 40,000 MT/Annum (SEZ)

C) Bradken (Formerly L&T) : 30,000 MT/Annum (Captive)

Bill Gates Predictions for future

1. Artificial Intelligence

2. Clean Energy

3. Bio TechnologyGlobal & India Casting Industry

Global Casting Demand: $200 Bn & $20 Bn India

Wind Casting Demand : $2 Bn & $0.2 Bn India

Europe:

Higher Labour costs

Flat casting Demand

China:

Worlds largest producer

Increasing labour costs

Appreciating Yuan

Govt Subsidy withdrawal

Policy Concerns

US Trade War

India:

Stable Economic Growth

Predictable policies

Worlds 2nd Largest production

Capacity Constraints

USA:

Not much presence in

manufacturing & Casting

12

Renewable are on main stream with

competitiveprices

India to reach 10 GW installations

during next twoyears

Made in India Wind Turbines are

most competitive in the world

and being converted as

manufacturing hub by Major

global players

THE ROAD

AHEAD

IPO Overview

4

Particulars Details

Issuer: SYNERGY GREEN INDUSTRIES LIMITED

Offer Type: INITIAL PUBLIC ISSUE

Price Per Share:Rs. 70/- per equity share( including a

premium of Rs. 60/- per share)

Minimum Lot size:2,000 Equity Share and Multiples

thereof

Issue Size:

37,80,000 Equity Shares of Face Value

of 10/- each fully paid for cash at a

price of 70/- per Equity Share(including

a premium of Rs. 60/- per share)

aggregating to 2646.00Lakhs

Stock Exchange: BSE Limited (SME)

Issue Structure:

Net issue to public --- 35,88,000 Equity

Shares

Market Maker Portion --- 1,92,000

Equity Shares

Issue Manager: SWASTIKA INVESTMART LIMITED

Market Maker: Beeline Broking Limited

Issue

Deta ils

Particulars Rs. In lakhs

Purchase of Plant and

Machinery1,204.75

Working Capital Requirement 1,200.00

General Corporate Purpose 61.25

Public Issue Expenses 180.00

Gross Issue Proceeds 2,646.00

Less: Issue Expenses 180.00

Net Issue Proceeds 2,466.00

45.35%

6.81%

2.31%

45.53%

Objects of Issue

Purchase of Plant andMachinery Working Capital Requirement

General Corporate Purpose Public IssueExpenses

CAPACITY INVESTMENTS

SL Expansion Objective 2018-19 2019-20 2020-21

1

Capacity increase

from 15,000 MT to

40,000 MT

Rs 500 Cr

Revenue25 10

2Partial In-House

machining process

To improve

profitability20 20

Total 25 30 20

Note: All investment requirements will be met through

IPO proceedings, Internal accruals and Bank borrowing

Annual Production (MT)

1,045

3,510

6,700 8,100

11,650 9,700

13,500

18,000

25,000

30,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Actual figures

Projected figures

Financial Overview

2

FINAN C IAL

PERFORMAN C E

9.54

37.24

63.85

82.59

120.67

103.12

0

20

40

60

80

100

120

140

FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

Revenue (Rs Crore)

-1.85

2.16

5.60

13.58

18.53 16.75

-5.00

-

5.00

10.00

15.00

20.00

FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

EBIDTA (Rs Crore)

-19.4%

5.8%8.8%

16.4% 15.4% 16.2%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

EBIDTA (%)

-9.05 -9.02

-6.85

1.55

4.86 4.66

-10.00

-8.00

-6.00

-4.00

-2.00

-

2.00

4.00

6.00

FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

Net Profit (Rs Crore)

FINANCIAL PERFORMANCE

mIncome Statement Summary (INR Crore)

Particulars31st Mar

2018

31st Mar

2017

31st Mar

2016

31st Mar

2015

31st Mar

2014

31st Mar

2013

Total Revenue 103.12 120.67 82.60 63.85 37.24 9.54

Total Expenses 100.22 116.59 81.54 71.53 46.52 20.31

PBT 2.90 4.08 1.05 -7.69 -9.28 -10.77

EBIDTA 16.75 18.03 13.58 5.60 2.16 -1.86

NPAT 4.66 4.86 1.55 -6.85 -9.02 -9.05

Cash flow Statement Summary (INR Crore)

Particulars31st Mar

2018

31st Mar

2017

31st Mar

2016

31st Mar

2015

31st Mar

2014

31st Mar

2013

Total Cash From (For)

Operating Activities14.85 20.64 7.52 6.44 -1.02 -0.48

Total Cash From (For)

Investing Activities-6.20 -8.61 -3.36 -1.92 -2.45 -8.85

Total Cash From (For)

Financing Activities-8.66 -12.04 -4.18 -4.47 3.43 9.31

Net Increase

(Decrease) In Cash-0.02 -0.01 -0.01 0.04 -0.04 -0.02

Cash and Cash

Equivalents-End1.23 1.11 1.51 0.65 0.42 0.32

Balance Sheet Summary (INR Crore)

Particulars31st Mar

2018

31st Mar

2017

31st Mar

2016

31st Mar

2015

31st Mar

2014

31st Mar

2013

Total Non Current

Assets40.07 39.58 35.73 38.20 41.91 44.87

Total Current Assets 68.28 52.20 46.80 30.66 23.24 14.72

Total Current

Liabilities71.73 60.20 54.87 43.64 29.12 21.15

Total Non Current

Liabilities27.66 32.28 33.22 32.33 36.34 31.49

Total Shareholders’

Funds8.97 -0.70 -5.56 -7.11 -0.31 6.95

0

0.5

1

1.5

2

2.5

3

3.5

FY13 FY14 FY15 FY16 FY17 FY18

0.2

0.9

1.8

2.6

3.5

3.1

Asset Turns

0

10

20

30

40

50

60

FY14 FY15 FY16 FY17 FY18

58

30

49

30

21

Working Capital Days

FINAN C IAL

PROJECTIONS

150

210

294

411.6

0

50

100

150

200

250

300

350

400

450

FY 18-19 FY 19-20 FY 20-21 FY 21-22

Revenue (Rs Crore)

22.50

32.55

47.04

65.86

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

FY 18-19 FY 19-20 FY 20-21 FY 21-22

EBIDTA (Rs Crore)

15.00%

15.50%

16.00% 16.00%

14.40%

14.60%

14.80%

15.00%

15.20%

15.40%

15.60%

15.80%

16.00%

16.20%

FY 18-19 FY 19-20 FY 20-21 FY 21-22

EBIDTA (%)

6.15

10.55

18.71

30.33

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

FY 18-19 FY 19-20 FY 20-21 FY 21-22

Net Profit (Rs Crore)

SYNERGY GREEN INDUSTRIES LIMITED

T H AN K Y O U INVESTORS