Corporate Present Nov 09

8/3/2019 Corporate Present Nov 09

http://slidepdf.com/reader/full/corporate-present-nov-09 1/59

Strictly Private and Confidential

Bajaj Electricals Limited

Corporate Presentation

November 2009



Table of Contents

Bajaj Electricals – An Overview

Financials

Strategic Business Units

Key Highlights

3



Legacy of the “Bajaj” Group

• A group comprising of 25 companies

• Turnover over INR 280 Billion (~USD 6 Billion, at INR 46 per USD)

• Around 36,000 Employees

r . amana a a a

' '

Brief on select Bajaj group companies

• ea e y r. a u a a , curren y em er o ar amen an ac ve ea er n , e c.

…

• A brand well-known across Latin America, Africa, Middle East, South and South East Asia

• The company is currently engaged in life insurance; general insurance and consumer finance businesses

•

• Deals in the financing of consumer durables, personal and small business loans, loan against property/shares

• Achieved a disbursal of INR 24 bn (~USD 0.52 bn) in FY09 under its various financing schemes

• General and Life Insurance Joint venture between Bajaj Finserv and Allianz SE (74:26 holding)

• Assets under management of INR 22 bn (~USD 0.47 bn) as on 2008-09

• Received the “Business Leader in General Insurance” award by NDTV Profit Business leadership in 2008

4

• .

• The company also builds machines and plays an active role in turnkey projects and highway construction



Bajaj Electricals Ltd.… leader in the space with 7 decades of history

Business Overview

Headed by Shekhar Bajaj, Chairman and MD

Manufactures & Markets Appliances, Fans, Lighting and

Luminaires

Also has interests in Engineering & Projects, High Masts, Project Smile – Implementation of ERP from Oracle

Turnkey Lighting Projects, Transmission Line Towers,

Rural Electrification and Wind Energy

Extensive manufacturing facilities all over India

Acquired 32% share holding in Starlite Lighting

Limited a CFL manufacturing unit

2007-09-

Mission Excell – Change Management initiative

undertaken., , ,

Sourcing Arrangement, Project execution, R&D and

Marketing

2000-02 Set up High Mast and TLT manufacturing unit atShareholding Pattern as on Sept 09

- Successful Financial turnaround of the company

Rights Issue of Rs 108 mn in October 2003

Shifted vendor base to Himachal & Uttaranchal

Amalgamated Matchwel Electrical Ltd which

manufactured fans, die-casting components and

magneto assembly

1971-99

Tied up with Morphy Richards

11%

16%Promoter andPromoter Group

Public Institutions

Commenced operations in Lahore

Company started marketing small appliances & 1940-70

ompany se up an manu ac ur ng un a a an

Set up wind farm near Vankusewade near Satara73% Public Non-

Institutions

5

Small Scale Sector



Organization structure

Mr. Shekhar BajajChairman & Managing Director

. .Executive Director

.Executive Director

AppliancesSBU

LightingSBU

LuminairesSBU

FansSBU

E & PSBU Corporate

FinanceHR & Admin

Secretarial &

Legal

InternalAudit

Richards

Advtg. & BrandDevelopment

Customer

Branch SalesSupport

6

Care



Table of Contents


Financials

ra eg c us ness n s

Key Highlights

7



Strategic business units

Bajaj Appliances

FY09 Sales: INR 4,640 mn

As a % of total sales: 26%

Bajaj FansBajaj Engg & Projects

FY09 Sales: INR 2,950 mnAs a % of total sales: 16%


Bajaj LightngBajaj Luminaires


As a % of total sales: 12%FY09 Sales: INR 2,820 mn

As a % of total sales: 16%

8



SBU wise sales growth

13,730

17,700

Sales (INR mn)

6,4908,440

10,770

FY05 FY06 FY07 FY08 FY09

Total 6,490 8,440 10,770 13,730 17,700 29% 29%

Lighting 1,000 1,090 1,340 1,760 2,090 19% 20%

Luminaires 1,210 1,550 1,930 2,300 2,820 23% 24%

Appliances 1,410 1,940 2,600 3,630 4,640 28% 35%

Fans 1,090 1,410 1,850 2,410 2,950 21% 28%

Engg. & Proj. 1,780 2,450 3,050 3,630 5,230 44% 31%

9



Key Profit & Loss metrics

Diversified revenue mix across high growth verticals

14,046

18,007

CAGR (FY05-09): 28%

6,7638,801

11,146


PAT (INR mn)EBITDA (INR mn)

1,432

1,798

CAGR (FY05-09): 48% CAGR (FY05-09): 60%

429

692

869

10




Key Balance sheet metrics

Networth (INR mn)

1,748

2,450

CAGR (FY05-09): 27%

807 901

1,168

Reducing debt-equity ratio Return on Capital Employed


2.1 2.12.0

1.416%

17%

24%26%

0.9 9%

11

FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09



Other important metrics

Market Capitalization (INR mn) and Share Price (INR) as on March, 31st

13,800791

600

700

800

900

12,000

14,000

16,000

1:1 Bonus during FY 08 4,3333,364

7,492

250

434

300

400

500

4 000

6,000

8,000

,

Market CapStock Price

2,593 2,532150

194146

0

100

0

2,000

FY05 FY06 FY07 FY08 FY09 16-Nov-09

51.69

36%38%

50%

43%

44.58 42.3151.69

42.31

18%

12

15.80

.

FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09



5 year financial summary (INR mn)

Particu ars FY 05 FY 06 FY 07 FY 08 FY 09

Gross Sales & Income from

operations6,763 8,801 11,146 14,046 18,007

Net Sales 6,496 8,459 10,789 13,745 17,705

PBIDT 429 692 869 1432 1798

. . . . .

Interest 164 180 231 293 370

Depreciation 60 64 73 75 86

Operating profit 205 448 566 1064 1343

Other Income (Net) 13 22 43 50 57

% Sales 3.35% 5.55% 5.64% 8.11% 7.91%

PAT 138 298 390 731 894

13

% Sales 2.13% 3.53% 3.61% 5.32% 5.05%



Half-Yearly performance (INR mn)

ParticularsFinancial Year

ended Mar 09

Half Year

ended Sept 08

Half Year

ended Sept 09

Growth over

Previous period

Net sales 17,705 6,969 8,775 25.92%

PBIDT 1,798 565 912 61.36%

% to sales 10.16% 8.11% 10.39%

Interest 370 178 171

Depreciation 86 39 46

Profit before tax 1,400 348 696 99.83%

% to sales 7.91% 5.00% 7.93%

Profit after tax 894 224 456 103.53%

% to sales 5.05% 3.21% 5.20%

14



Table of Contents


Financials


Key Highlights

15



16



Products:Mixers Grinders, Juicers, Food Processors, Water Heaters,Air Coolers, Iron, Ovens Toasters Grillers (OTG), RoomHeaters , Toasters & S/W makers, Hand Blenders, Waterur ers ers, crowave vens, as s oves, ec r c

Kettles, Coffee / Tea Makers

Competitors: Philips, Kenstar, Usha, Maharaja, Merloni,Spherehot, Sumeet, CG, National, Black & Decker, Tefal,Braun

e-ups:

17



Sales Performance (INR mn)

APPLIANCES Total W. Heaters Mixers R. Coolers Irons Others

GOLY 28% 17% 35% 18% 37% 28%

CAGR (over 4 yrs.) 35% 30% 45% 24% 31% 37%

18



Key highlights

One of the leading players in small appliances market, especially in M ixers, Irons, OTG,Water Heaters and Room CoolerWide Product Portfolio and highly trusted brand in the small appliances market

Strong distribution network with more than 25,000 retail outlets

Business strategy

• Introduction of new models in Mixers, Water Heaters, Iron & Coolers

• Continue Network expansion and rural penetration

• Ensure success of PLATINI, Gas Appliances and New products such as Home Inverters, DVD players

Key industry growth drivers

• Increase in purchasing power of Indian middle class and rapid urbanization

19

• Sales in unorganized segment will shift to organized segment as prices reduce

• Organised retail will improve shopping experience and brand presence



Bajaj P latini Product Range

20



Morphy Richards Product Range

21



22



Products

• Domestic-use: Ceiling, Table, Pedestal & Wall mounted

Fans, Personal Fans, Bajaj-Disney Children’s Fans

• - ,

Circulators, Cooler kits and Pumps

Tie-ups

23




30%

22%

31%29%

1,0901,410

1,850

2,410

2,950

10%


Total revenue % Growth

FANS Total Ceiling TPW

GOLY 22% 25% 9%

CAGR (over 4 yrs.) 28% 29% 23%

24



Key highlights

One of the leading players in fan industry with over 15% market share (source: IFMA)

–

One of the leading players in Premium segment

Business strategy

• Introduction of new models in Premium/ Decorative and Under-Light fans, Fans decorated with more Disney

Characters, Remote controlled Fans

• Focus on Pumps, Motors and Industrial fans

• Expand dealer network, rural penetration and presence in institutional segment


• Construction and housing industry revival

• Replacement market will improve due to Consumer boom

• With tax reforms, sales from unorganized segment will shift to organized segment as prices will be lower

25



26



Products

• Lamps: GLS Lamps, Fluorescent tube lights,

Compact Fluorescent Lamps

, ,

LED Torches

Manufacturing facility:

Hind Lamps, Shikohabad and Starlite Lighting, Nashik

Products

27




2,090

31%

1,000 1,0901,340

1,76019%

9%


LIGHTING Total CFL GLS&FTL Fittings

GOLY 19% 23% 10% 28%

CAGR (over 4 yrs.) 20% 61% 2% 21%

28



Key highlights

One of India’s oldest lighting company with respected brand image

Good progress in CFL market

Acquired significant stake in Starlite Lighting - a strategic move

Business strategy

• Network expansion and consolidation in Kirana segment, Modern Retail formats. Already covering more than

300,000 outlets

• Focus on CFL since demand for GLS and FTL is not growing fast. Significant capacity expansion in Starlite Lighting

• Motivate consumers to shift to energy saving lamps


• High growth in CFL due to reduced prices and energy conservation drive at residential, commercial and

overnment level

29

• Greater focus on Environment and Climate change amongst Consumers

• Rural electrification and higher Power availability will spur future demand



30



Overview

Products:

• Luminaires: Industrial, Commercial, Decorative, Street

light, Flood light, LED, Lighting Electronic, Lighting Control

• HI D lam s: Mercur & Sodium va or lam s Halo en

lamps, Metal halide and Fluorescent Lamps

Tie-ups

Technical lighting Fire Alarms & Security systemsIBMS & HVAC

31




2,82028%

1,2101,550

1,930

2,30019%

23%


LUMINAIRE Total Fittings HID

GOLY 23% 24% 15%

CAGR (over 4 yrs.) 24% 25% 17%

32



Key highlights

One of the leading players in street Lights, flood Lights and industrial applications

Offers the latest and cutting edge Security and BMS (Building Management Systems) to

its institutional customers in partnership with Delta Controls of Canada

Business strategy

• Focus on new segments IT/BPO/Retail/Healthcare/Pharma

• Promote products to builders / Electrical Consultants / Architect segment

• Introduction of new products with LED light source

• Focus on energy efficiency products and Green Building applications


, , , , , ,

• Govt. and Private sector spending on infrastructure

Major Customers

• Industrial: TATA Group, Reliance Group, Reliance ADAG, L&T, Aditya Birla Group, Siemens, ABB

33

• Government Clients: Airport Authority of India, Container Corporation of India, State Electricity Boards, NTPC,

Municipal Corporations & Councils, MSRDC, BEST, DAE



Overview

Fields of operation:• Special Projects: Turnkey Lighting Projects, Factory

lighting, Air-port Lighting, Sports Lighting, Rural

Electrification etc.

• High Mast & P oles: High Mast Lighting, Signage,

Transmission Lines, Energy-efficient Illumination

• Towers: Design, Supply, Erection and commissioning of

Transmission lines and Telecommunication Towers,Monopoles etc.

Telecom Towers Pow er Distribution Illumination P rojects

Tie-up:

Street FurnitureSports Lighting

Signages

35

High Mast



CNC Profile Cutting Machine CNC Press Brake from LVD GODREJ Make Shearing Machine

Ranjangaon factory

Pole Welding Machine Welding of High Mast Section 30,000 TPA Tunnel Enclosed Bath




5 230

87%

1,7802,450

3,0503,630

19%

44%38%

24%


E&P Total

Special

Projects High Mast Towers

GOLY 44% 57% 39% 39%

CAGR (over 4 yrs.) 31% 56% 36% 15%

37



Division w ise Sales Performance

53% 58%49%

33% 32%

Orders In Hand – As on Oct 2009(INR mn)

Segment Order Book

28% 30%

32% 29%35%

39% 38%

owers ,

High Mast & Pole 1,046

Special Projects 3,480


Special Projects High Mast Towers

Total 8,500

Particulars Total

Special

Projects H. Mast Towers

Sales FY09 (INR mn) 5,230 1,600 1,980 1,650

GOLY 44% 57% 39% 39%

CAGR (over 4 yrs.) 31% 56% 36% 15%

38



Key highlights

One of the leading player in sports lighting, power plant lighting and High Masts space

Diversification into related businesses such as Rural Electrification etcIndustry growth drivers

Special Projects

• Huge Investments expected in Power and Infrastructure sector

• Electricity connections to 800 mn households in 125,000 villages will be given in 5 yrs under RGGVY - investment

of INR 1,200 bn

• Major opportunities in Rural electrification and Transmission Line Towers

• Airport Authority of India to develop 25 non metro Airports

• Construction of IT parks / BPO / Shopping Mall / Special Economic Zones

High Mast & Poles

• Jawaharlal Nehru National Urban Renewal Mission within 7 yrs… 23 cities to be transformed involving an

investment of INR 400 bn

Towers

• 60000 CKM transmission network to be added by 2012

• Present capacity of power transfer to be increased from 9000 MW to 30000 MW – Investment of INR 2,000 bn

• –

39

, ,

GMC Balayogi Football cum Athletic Stadium



GMC Balayogi Football cum Athletic Stadium

Hyderabad

BAJAJ Engineering & Projects BU



Sawai Mansingh Cricket Stadium, JaipurSawai Mansingh Cricket Stadium, Jaipur

BAJAJ Engineering & Projects BU

Main Tennis Stadium At Fateh Maidan



Main Tennis Stadium At Fateh Maidan

Hyderabad



Kothagudam – APSEB - 2 x 210 MWTPP



Queen’s Necklace At Marine Drive - Mumbai



Antenna Mast

Telecommunication Application

Antenna Mast for RelianceInfocom-VPT Project



Flag Mast



Flag Mast

Largest National Flag (22 x14 mtrs) installed at Kaithal

ns a e a a a a wa, aryana

& Ladwa in Haryana

The India’s tallest mast 63mtrs (48x72ft)

high speedmotorised winching

arrangement. ThisMast is manufactured atRanjangaon andErected by Bajaj E&P BU



ransm ss on ne ow ers

•

Monopole Tower Manufactured At Ranjangaon Plant



Monopole Tower Manufactured At Ranjangaon Plant

Monopoles For Power Transmission- PGCIL’s Dadri Ballabhgarh 400

KV D/C M l



KV D/C Monopole

132 kv d/c Transmission Line at Pachpatta, Nasik - for ABB /Enercon / MSETCL



Enercon / MSETCL

Table of Contents




Financials


53

Key Highlights



Nationwide distribution network w ith w ide urban and retail penetration

Strong brand positioning to drive grow th

Experienced management team backed by distinguished board

Robust, sustainable business strategy

Strong financial track record

Diversified Product & Business portfolio – Both Consumer facing and Industry /

54

Nationwide distribution network



s r u on ne wor• 19 branches

• 600 distributors

•Chandigarh

Parwanoo

Zirak ur Dehradu n,

• 240 service centers

• 300,000+ retail outlets Lucknow

Noida

Jaipur

Delhi

GuwahatiPatna

Faridabad

Mumbai

Nagpur

Ahmedabad

RaipurIndore

Bhubaneshwar

CalcuttaRanchi

Daman

PuneHyderabad

Goa

Has a strong pan India footprint and has displayed great

strengths in distribution, logistics & project execution…

plans to further amplify its retail network

Depot

Bangalore

Cochin

Chennai

Branch

55

Strong brand positioning to drive growth



Bajaj Appliances

Tie up with Morphy Richards (UK) for

manufacturing & marketing premium products in

India

Bajaj Fans

Tie up with one of the world’s

leading fan manufacturers - Bajaj

Midea Bajaj Platini introduced at the Premium end

New Ad-campaign on “Rock star mommy”

launched

Targeting kids segment by

supplying specially designed fans

through a tie up with Disney

Ba a Li htin

Bajaj Luminaires

Significant network expansionundertaken

Significant capacity expansion inStarlite Lighting for CFLs

Focus on Rural markets

(Germany) for premium technical

lighting and RUUD Lighting (US)

for LED

New Foray into IBMS , HVAC ,

Fire Alarms and Security systems

56

Strong brand name created in consumer durables & lighting businesses over the last seven decades

Experienced management team backed by eminent board



Shekhar Bajaj, Chairman & MD - Bajaj Electricals Ltd.

— Worked previously at Bajaj Sevashram and Bajaj

International

Shekhar Bajaj

Chairman & Managing Director— resen on oar o rec ors or a a u o

— Former President of ASSOCHAM, IMC, Elcoma, IFMA etc.

Anant Bajaj R. Ramakrishnan P. P. Jathar

Executive Director

— 11 years of experience in the industry

— Holds a BCom and PGDFMB

Executive Director

— B.Sc. (Hons.) and PGDBM from XLRI Jamshedpur

— Associated with the Company since last 10 years

after 17 yrs in Asian Paints

Executive VP & CFO

— 26+ years of experience in the industry

— Holds a bachelors degree in commerce and

Eminent Board

— Director on Board of Bajaj

International— Earlier President & COO of Company

— Actively associated with ISA, ASCI – CCC, BMA,

CII and IMC

— Responsible for all financial and accounting

matters

Dr.(Mrs) ShahaniDirector

H. V. GoenkaDirector

A.K.JalanDirector

Ajit GulabchandDirector

57

Madhur Bajaj

Director

V.B.Haribhakti

Director

Dr. R P Singh

Director

Robust business strategy



Focusing on highgrowth businesses

Engineering & Projects revenue has expanded more than 5 fold from INR 950 mn

(FY04) to INR 5,230 mn (FY09). TLT, Rural Electrification have large growth potential

Focusing on premium brands like Morphy Richards and Trilux and making them

successful

Leveraging strongbrand equity

Created a strong brand name in consumer durables and lighting businesses over thelast seven decades

Continuousl focusin on brand buildin and ex andin retail network

Substantial

One of India’s leading players in the small appliances , fans and Lighting markets

One of the market leaders in mixers, irons OTGs & water heatersmarket share

Strong Distribution and presence in urban and rural markets

Diversified player with good presence in:

Diversified player

Consumer facing business (Appliances, Fans and Lighting)

Industry facing business (Luminaires)

Infrastructure facing business (Engineering & projects- High mast, turnkey

lighting project, Transmission Line tower and Rural Electrification)

58

BAJAJ ELECTRICALS LTD.



59

Corporate Present Nov 09

Documents

Transcript of Corporate Present Nov 09