welspun group group presentation - august... · 2010 foray into renewable energy entry into...
TRANSCRIPT
Welspun Group Investor Presentation
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August 2015
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PIPES
HOME TEXTILES
RENEWABLE
ENERGY
Business Verticals
Group Snapshot
Turnover USD 3 bn, Asset base of ~USD 3.2 bn.
Ranked 1st among Home Textile Suppliers in the US (Source: Home Textile Today Magazine (HTT))
2nd Largest Large Diameter Pipe Company in the world. (Source: Financial Times, UK)
India’s Largest Solar Independent Power Producer (IPP)
Strong Business relationship with most of the Fortune 100 Companies in Retail and Oil & Gas sector.
Equity investment by global investors – Apollo, GE, ADB, Goldman, etc.
Multi decade relationship with Leading Investment Bankers like JPM, Morgan Stanley, Merrill Lynch,
Standard Chartered, Citi, Credit Suisse, Daiwa, UBS etc.
AA- for Long Term and A1+ for Short Term (high degree of safety regarding timely servicing of financial
obligation) ratings by FITCH, India
Independent Boards with Apollo, GE & ADB nominees as Board Members
Big Four as Audit Firm in key group companies.
Global Presence
More than 50 Countries across the world...
Welspun Evolution
1985 Welspun is born as a Textile Company
1993 Enters into Terry Towels – Vapi, Gujarat, India
1997 Enters into SAW pipes - Dahej, Gujarat, India
1998 Polyester Filament Yarn facility - Silvassa, India
2006 Acquired ‘Christy’ - UK’s leading towel brand & exclusive supplier to Wimbledon
Foray into O&G Explorations - JV with Adani group as Adani Welspun Exploration Ltd.
2009 Greenfield Spiral pipe facility overseas (Little Rock, Arkansas, US) of 350,000 tons
2008 Acknowledged by Financial Times , UK as the World’s 2nd Largest (LD) pipe manufacturer
Awarded as “Emerging Company of the Year” for Corporate Excellence by ET
2005 Sets up its home textiles and pipes manufacturing facility at Anjar, Gujarat
2010 Foray into Renewable Energy
Entry into infrastructure - Acquisition of MSK Projects India Ltd. - renamed as Welspun
Projects Ltd.
Majority stake in Aziz European Spiral Pipe factory - Saudi Arabia
2011 Apollo invests USD 320 mn in Welspun Group
WIL raised Rs. 1,560 million via Qualified Institutional Placements (QIP)
2013
Achieved production, sales & order booking of 1 mn tonnes in Line Pipes
Demerger of non-pipe business - O&G, Steel, Energy & Infra from WCL to “Welspun EnterprisesLtd”
Home Textiles business re-organisation and consolidation of textiles business under a single umbrella to create
unified stronger entity; ranked No:1 Home Textile supplier to US
Ranked no 1 : Home textiles supplier in US by Home Textiles Today (HTT)
2014 Achieved production, sales & order booking of 1 mn tonnes in Line Pipes for second consecutive year
Exited Leighton acquired in 2011
Ranked No 1 Home Textile supplier to US for second consecutive year
2015
Achieved production, sales & order booking of 1 mn tonnes in Line Pipes for three consecutive years
Sold Maxsteel (DRI) business acquired in 2009 from Vikram Ispat (Maxsteel)
Ranked No 1 Home Textile exporter to US for third consecutive year
Commissioned India’s largest spinning facility under one roof at Anjar,Gujarat
Merger of Welspun Enterprises and Welspun Projects to create stronger entity to capitalise on future growth
opportunities
Welspun Evolution...............Contd
Strong relations with international brands
Revenue Growth
FY 2015 - Rs. 173,635 Mn (US$ 2,840 Mn)
FY 2014 - Rs. 163,994 Mn. (US$ 2,711 Mn)
FY 2013 - Rs. 162,040 Mn. (US$ 2,976 Mn)
FY 2012 - Rs. 145,770 Mn. (US$ 3,040 Mn)
FY 2011 - Rs. 152,280 Mn. (US$ 3,345 Mn)
FY 2010 - Rs. 125,180 Mn. (US$ 2,640 Mn)
FY 2009 - Rs. 93,360 Mn. (US$ 2,034 Mn)
FY 2006 - Rs. 42,370 Mn. (US$ 951 Mn)
FY 2001 - Rs. 10,190 Mn. (US$ 223 Mn)
FY 1995 - Rs. 2,000 Mn. (US$ 64 Mn)
Particulars FY15
Revenue 173,635
EBIDTA 29,207
Cash PAT 18,282
Net Worth 79,021
Net Debt 76,438
Products
Home Textiles - Welspun India Limited
Global Leader in Home Textile (HTT Magazine US).
Manufacturing facilities at Vapi and Anjar (Gujarat, India).
Strategic Vendor to 20 of the top 30 retailers - Walmart, Target, J C Penney, Kohl’s, Macy’s, etc.
Credit Ratings by FITCH INDIA Rating : Long Term : AA- & Short Term : A1+
Owned / licensed brands such as Christy, Spaces, Welhome, Kingsley, Hygrocotton, etc.
Exclusive Licensee for the Wimbledon Championship.
Every 6th Towel in US is made by Welspun, every store in UK offer Welspun products.
Capacity Expansion/Backward Integration near completion to enable multi year growth
Innovation and Branding – Key Driver to the Business
Steel Pipes - Welspun Corp Ltd.
WELSPUN CORP LIMITED / WELSPUN TUBULAR LLC / MIDDLE EAST PIPE LLC
World’s 2nd largest LD(large diameter) pipe company -capacity of 2.425 mn MTPA.
Supplied line pipes to some of the most challenging projects in the world - Deepest Pipe line,
Longest Pipe Line, Heaviest Pipe line and Highest Pipe line.
Accredited by all Oil & Gas majors like Transcanada, Shell, Gazprom, Total & Elpaso
Facilities at Dahej, Anjar, Mandya in India, Little Rock in US and Dammam in Saudi
Multi-location presence aids in building strong order book
1.5 mn MT State-of-art Plate-cum-Coil mill at Anjar,Gujarat
Private Equity major Apollo Global invested US$ 290 mn in 2011.
Credit Ratings by CARE : Long Term : AA- & Short Term : A1+
Renewable Energy - Welspun Renewable Energy
Committed to Green energy - solar, wind, hydro and biomass.
Largest solar power developer in India ~450 MW commissioned; to reach
1,000 MW by March 2016 and 2,000 MW by March 2017.
Projects across states including Gujarat, Rajasthan, Madhya Pradesh and Andhra Pradesh.
ADB, GE as Equity Partners
2 out of 4 best operating assets in India belongs to Welspun
Received The Global Solar EPC Award (innovative service) for excellence 2014 in solar project
development.
Corporate Social Responsibility (CSR)
Welspun India Only Certified Women’s Enterprise – WeConnect International
Each and every Welspunite is proud to practice the principles paved by the 3 E’s - Education, Empowerment of
Women & Health and Environment.
Welspun adopts the most environment friendly production processes, water effluent systems, waste disposal
mechanisms and strictly follows water harvesting measures at all its facilities.
Each production center is equipped with a 24 hour medical facility for health hazards.
Welspun City, a 2500 acre township at Anjar, is a prime example of continuous efforts to protect the environment
with a strong emphasis on afforestation. The City is in the process of creating a green belt, which once completed,
will have over 500,000 trees.
8 Vocational Centers to train women in Cutting & Stitching; 652 women trained in stitching with avg. earning per
women per month at INR 4434
Vocational Training Centers for disabled people: - Manav Vikas Kendra at Kutch, for training of more than 100
deaf and Mute and differently abled people.
Mrs. Dipali Goenka nominated on the board of SA 8000 – Social Accountability Audits
Awards & Recognitions
Mr. B. K. Goenka, CMD Welspun,
accepting the
‘Emerging Company of the Year 2008’
Award from the Prime Minister
of India, Dr. Manmohan Singh
Mr. B. K. Goenka ranked among the “Top 100” in
“India's Most Powerful CEOs”, a report released by
India's leading business daily The Economic Times
in association with IMRB International in May 2012.
Awards & Recognitions – Welspun India Ltd
2013
Sears/K-mart Vendor of the Year.
5 Star Vendor award for the year 2013 by Macy’s.
Textile Conclave 2013 Brand INDIA Largest Producer Made Ups &
Home Textiles.
Largest Exporter Made Ups & Home Textiles.
Texprocil Award 2012-13 Special Gold Trophy for Highest
Global Exports
Gold Trophy for Highest Exports of Terry Towels in Made-ups
5 Star Vendor award for the year 2014 by Macy’s.
Special award “Global Citizen Award” for our Corporate Social Values by Macy’s
CEO award from Sears Holding.
Green Believers Award from Frost and Sullivan's at Green Manufacturing Excellence Awards and Summit 2014.
“Best Corporate Social Responsibility Practices” award at Global CSR Excellence Leadership award 2014 by World CSR Congress.
2014 2015
Target Partner Award of Excellence for performance in 2014
Sheridan – Best Supplier Award for performance
Golden Peacock : Environment Management Award
JCPenney –Innovation Award
Texprocil : Highest Global Exports – Special Gold 2013-14
ECGC D&B - Best Trader Exporter, Indian Exporter Award’14
ASDA George Home - Best Product Quality award
“NACE INTERNATIONAL CORROSION AWARENESS AWARD 2014”
- Category for Excellent Material Research and Corrosion Testing facilities
“FICCI Quality Systems Excellence Award for Manufacturing 2014”
-Certificate of Silver (Third) Prize in Large Size Category
EXCELLENCE in GLOBAL TRADE
- Governor's Award, 2013
IPLOCA CSR Award (Runner Up)
-TOTAL, 2013
Top Exporter of the Year
– EEPC, 2011
Best Indian Manufacturing Company in the US
– Indo American Chamber of Commerce – US, 2011
Awards & Recognitions – Welspun Corp Ltd
Together We can make
A Difference