Transcript Slide 1
RICHA INDUSTRIES LIMITED
An ISO 9001:2008 Registered Company
www.richa.in
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DISCLAIMER
This Investor Presentation has been prepared by Richa Industries, solely for informational purposes.
The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Richa Industries makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company
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Company Overview Richa Industries Limited (RIL
) was incorporated in year 1993 , is engaged in knitting, dyeing and processing of knitted fabrics and manufacture of readymade garments.
RIL
is a public Ltd. company listed on
Bombay Stock Exchange since 2007 RIL
diversified itself in the year 2008 in PRE ENGINEERED BUILDING sector.-with a vision to offer cost effective, high quality and high tech building solutions.
.
RICHA INDUSTRIES LIMITED TEXTILES PRE ENGINEERED BUILDING (PEB)
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Business Overview In Textile segment
Richa Industries Ltd (RIL) is already a Trusted name in Indian Textile Industry after an IPO in 2006 ramped up its manufacturing and production facilities to almost two and half times and currently is one of the largest single manufacturing facility in Northern India in the segment of dyeing, processing and finishing of knitted fabric. The key to the success of the company is experience in the field of knitted fabric from last 17 Years and having good reputation for its quality standards and competitive rates .
In PEB segment
RIL entered into manufacturing of Pre-Engineered Steel Building (PEB) with a vision to offer cost effective, high quality and high tech building solutions. The plant was set up in Kashipur (Uttarakhand) having a manufacturing facility spread over13 Acres with 3.0 lacs sq ft area. It is among the largest PEB facility in north India using the newest and most modern machinery equipped with CNC Plasma cutting, automatic H-beam welding lines, CNC punching and CNC Cold forming machine. The company has its presence in more than 120 cities across India with sales offices in more than 6 cities
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Our Promoters Mr. Sushil Gupta (M.Tech & B.E) Chairman cum Managing Director
A B. Tech(Mechanical) and M. Tech (CAD/ CAM) from IIT Delhi. He has more than 25 years of experience in the industry. An Awardee of Udyog Patra & Udyog Vibhushan –Mr.
Sushil Gupta is the first generation entrepreneur. He is a man with Vision Technology expertise.
&
Dr. Sandeep Gupta (Ph.d) Joint Managing Director
A Ph.D. Degree Holder, MBA (BVP), GMT -Pearl Institute of fashion .
He is the brain behind the new domestic & global initiatives with corporatization and resource mobilization.
He has been awarded FCCI Excellence Award 2008 for Outstanding SME Entrepreneur .
Mr. Manish Gupta B. Text. (T.C) Director
A B.Tech
(DKTE) and IIT Mumbai Alumni. He has more than 10 years of experience in the textile and garment industry, He is the backbone of the company for product development, innovations & ensuring quality at operational levels.
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RIL Manufacturing Unit Textile
: Village Kawnra, Kheri-Jasana Road,Faridabad-121101, Haryana
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RIL Manufacturing Unit Pre-Engineered Steel Building (PEB) :
Kashipur (Uttarakhand) •
Year of PEB Establishment
: 2009 •
Production Capacity
: 72,000 MT per annum (Pro rata basis) •
Production Area :
3,50,000 Sq. Feet •
Plant Area :
8,60,800 Sq. Feet • Among the few Plant in India controlled via ERP
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Company Philosophy
VISION
To be the world class leader in the niche textile markets we serve.
To become the leading Engineering and Construction firm in India & overseas by consistently delivering projects that meet international standards.
MISSION
To exceed our customers’ expectations by providing exceptional value as an innovator in the design, manufacturing and delivery of specialty textile products To undertake the construction business with a focus on becoming the cost leadership while excellence in every aspect to meet customers’ stringent requirements .regarding quality, on-time delivery, safety and environmental concerns.
To build value for the organization in order to become a unique and distinct firm To remain focused on controlled organizational growth and recognizing those who contribute to this growth
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Milestones of the Company
1993 Company incorporated in the name of Richa Knits Pvt.Ltd. for manufacturing and dyeing and processing of fabrics, ready made garments
2002 Company started its operations of Unit set up at IMT Manesar .
Company received first export order for USD 26,342 in June 2002 Garments Division started its operations in June 2002 with 46 stitching machines
2003
2004
2005
2006 Company changed its constitution from private limited to public limited company in September 2003.
Udyog Patra Awarded to Mr. Sushil Gupta, Managing Director of our company Our Knitting Division started operating in February 2004 with 6 Circular Knitting machines.
All expansion undertaken were completed Udyog Vibhushan Award to Mr. Sushil Gupta, Managing Director First and second EBO Started at Faridabad in October 2005.
Third EBO Started in Jaipur Place for 4th & 5th EBO taken on long term lease in Delhi
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2007
2008
2009
2010
2011
2012
2013 Initial Public Issue of the Company completed & listed on the Bombay Stock Exchange Company diversified into the second line of business : Pre-Engineered Steel Building (PEB) Company received ISO 9001:2008 status.
Company shifted its Textile plant to Village Kawnra, Kheri-Jasana Road, Faridabad- Haryana Manufacturing plan for PEB becomes operational at Kashipur (Uttarakhand Company receives prestigious projects for PEB from the companies like L&T, Wipro, La-farge cement ,DMRC and Sun flame Company acquired, constructed and shifted to its own Corporate office at Plot no 29, Dlf industrial area, Phase –II , Faridabad , Haryana
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TEXTILE DIVISION
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• • • • • •
Our Textile division
Textile division was incorporated 21 years back, in 1993 and since then, plays a cardinal role in the segment of dyeing, processing and finishing of knitted fabric.
Global Organic textile standard
certified 9001:2008.
(GOTS) recognized, ISO Provides
one roof .
complete portfolio & special finishes all under
Fully compliant
requirements.
with
all regulatory and licensing Largest single manufacturing facility in Northern India.
Highest quality of Laboratory & R&D Facilities
..
Strategic location
(20km from New Delhi) having
access to export markets easy
like Bangladesh and Sri Lanka and easy availability of manpower with required skill set at affordable cost.
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Process : Textile division
Knitting
•
From Single Jersey for men to Lycra for women, RIL produces all kind of knitted fabrics including organic cotton, modal, polyamides, nylons. etc
Yarn As Input Conver sion of yarn into Fabric Dyeing and Processi ng Special Finishes like Brushing, Sweading, shearing, Wrinkle and Stain free and Mercerizing Final Product
Processing Finishing
• • • •
World class dyeing facility including Reactive dyes for cotton fabrics Disperse dye for manmade fabrics Tubular and open width input to create finishes like wrinkle free, easy care and Nano finish.
•
Brushing, Mercerizing & Sweading facilities
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TEXTILE : Our few selected Clients
HANYUG SHAHI EXPORTS
MARIDIAN
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TEXTILE : Industry Overview
The Textiles industry has witnessed an incipient turn around in financial year 2012-13 as cotton yarn prices have picked up and rupee depreciation has enhanced competitiveness.
Government implements the Scheme for Integrated Textiles Parks (SITP) which is aimed at establishing greenfield infrastructure for textiles industry and generate employment.
Government formulates the cotton distribution policy on a yearly basis to ensure adequate raw materials security to domestic industry.
Indian Textile Industry is one of the leading textile industries in the world. The Textile Industry is one of the most important sectors in the Indian Economy and the second largest generator of employment after agriculture.
Textile contributes more than 4% to the GDP and 17% to the country's export earnings.
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PRE ENGINEERED STEEL BUILDING DIVISION
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WHAT IS PEB?
PRE ENGINEERED BUILDING (PEB)
are those which are fully fabricated in the factory after designing, shipped to site in CKD (completely knocked down) condition; and all components are assembled and erected at site with nut-bolts, thereby reducing the time of completion.
The concept of the pre-engineered building (PEB) is one where the fabrication is completed in a controlled environment with the latest technology, and then subsequent erection is carried out.
Advantage PEB?
PRE ENGINEERED BUILDING (PEB)
are ideal for use in non residential, wide span low rise buildings. Pre-engineered buildings are cost-effective infrastructure solutions that provide design flexibility plus abridged construction time. Some of the advantages of these buildings include reduced construction time, lower cost, and flexibility of expansion, quality control, low maintenance, energy efficient roofing and wall systems, and architectural versatility.
PEB buildings are used for diverse applications such as factories, warehouses, offices, shopping malls, schools, hospitals, community buildings and several more
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WHY PEB?
Increased speed of construction, quicker return on investment Ensured quality of material, Design and construction Unlimited architectural possibilities Enhanced Durability and seismic reliability Easy construction, maintenance and refurbishing Increased Life cycle performance and cost competitiveness Environment –friendly structures Sustainability in construction through reuse of most materials Suitability for Hilly regions and other geographically difficult areas Better Earthquake & Wind pressure resistant.
The building can be dismantled and relocated easily.
Future extensions, expansion modification can be easily accommodated without much hassle.
Faster delivery and erection, saving around 30-40% of project time Virtually maintenance free Single-source responsibility Insulated from sound and heat, as per the requirement Better rainwater harvesting through gutters and down-take arrangements
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PEB : Terminology Main Components
Following are major components in a pre engineered building: •Primary or Main frame •Gable End framing or Wind columns •Secondary frame or Purlins, girts etc.
•Roof & Wall Sheeting •Bracing system •Crane system •Mezzanine system •Insulations •Attachments like canopies, fascia etc •Doors, Windows, Ventilators •Accessories like Turbo vents, Ridge Vents, Skylights etc.
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Our strength in PEB?
Markets
–
Presence in more than 120 Cities and Sales Offices in Mumbai, Ahmedabad, Chennai, Chandigarh, Bangalore, Bihar
Market Share
–
Government & Public Sector, Industrial Buildings, High Rise Buildings (Up to Ground + 8), Government Public Transportations, Office Buildings, Structural Steel Buildings, Complex Structures
Production Facility
–
Richa Industries has one of the largest production plants with a surface of 8, 60, 800 square feet in northern India.
Manufacturing Capacity –
000 MT per Year 72,
Work Scope
–
Richa Industries handles the entire operations from design to delivery of building of all Steel Structures – Design; Production; Erections; Project Management; QHSE. A dedicated PEB Research & Development Team
.
Human Resources
–
Management (5); Designer (38); Administrative Staff (15); Production (430); Projects (36) Customer Support Cell (5); Marketing
TOTAL (559)
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Why RICHA ?
Richa is known in the industry for offering
reduced construction time and fastest deliveries
, in pre-engineered buildings because of most advanced state of art machinery and management systems .
• One of
the Largest Unit
for PEB, in Northern India • Among the few Public listed PEB companies with ISO Certification in India, where quality is the main priority.
• Among the
few company in World to have online project monitoring system
• We deliver
Pre-painted steel structure at erection sites
, thus saving time in erection, having better corrosion resistance and a factory finished product.
• Richa Industries has been
Nominated as Most Advanced User in Asia Pacific by MBS
. Being the few companies in India which is able to use 80 percent capability of MBS • We ensures complete ERP transaction integrated with worlds trusted softwares like MBS, STAAD , autocad and nesting softwares. It ensures error free operations, high speed delivery and better customer service process.
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Why RICHA ? Contd …..
•
Steel2Build
Richa Industries is one of the first in its segment globally to introduce complete online integration from design to project handover with its in-house developed system -
'Steel2Build', a SAP-like platform for Pre-Engineered Building projects.
• • This integration system clubs together all specialised systems in PEB industry on to one single platform, helping its clients to track the progress of their project.
It ensures error free operations, high speed delivery and better customer service process.
• Technological up gradations helps organizations to closely monitor all operations i.e. production, erection, sales and profitability linked activity on hourly basis.
Project Execution
• • • • • • Online project schedule and erection status Online quality reporting and
adherence of quality standards
Two step quality
audit system
to ensure
leakage proof building Separate safety team
to ensure worker and project safety Evaluation and Reporting of Schedules on ERP Project reporter
High Site to engineer ratio
ensuring better coordination
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Why RICHA ? Contd …..
• • •
Performance Management
Received nearby
70% repeat orders
from our valuable satisfied customers.
Strict Focus on
zero defects from QC
.
Projects are focused to be completed in
scheduled time.
Design
Standing true on its commitment to Human Safety, Richa Industries in
one of the firs
t Pre Engineered building company to have
introduced the usage of MBMA 2010
in its system • • Equipped with latest Design & Detailing Software's like MBS, STADD PRO, 3-D Detailing Steel 2 build controls estimation to design, detailing, shop drawings, CNC files, inventory control and dispatch under one control.
Research & Development
• • Richa Industries is one of the top three pre-engineered building companies in India to make all its secondary building members like SAG RODS, FLANGE BRACING, GUTTER STRAPS as galvanised.
Richa Industries is one of the first few players to add “Metal Bound Washers” in Self Drilling Screws to cure leakage and corrosion in Roofing
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Pillars behind the success of PEB :
Mr. Manoj Kumaoni ( Plant Head)
Mr. Kumaoni, B.E.-Mechanical Engineering is one of the best fabrication experts in PEB industry having 21year of experience in various high quality, complex and high speed projects. The experience and challenges he faced in for working in big projects has made him the high end professional in welding and fabrication. The optimum utilization of machinery and adopting high quality standards is his area of specialization. Adaptation to changing requirement and giving solutions is his core competency.
Mr. Sanjeev Mehta ( Projects Head)
A, B.E. ( Civil Engineering) with 15 years of industry experience in Infrastructure development, gold led rated Special Economic Zones, IT Parks, Business Parks, Real Estate and in leading PEB Companies. He has lead a cohesive team of multi disciplinary professionals and worked with prestigious national and international organization like UNICEF, Delhi Metro etc. He was also associated in the prestigious project of first SE IT Park with covered area of 3.3 lakh sq ft.
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PEB for : Government Sector & Leading Indian Corporates
Industrial Constructions • • • • • • • • • • • •
Manufacturing Unit Warehouses Factories Showrooms Gas Stations Power Plant Cold Storage Vehicle Parking Sheds Rice and Sugar Mill Heavy Industry Dairy Automobile
Government Sector High Rise Building • • • • • • •
Large Scale Warehouses Public Transportations Metro Oil and Natural Gas Ports Shipping Industry Aviation
• •
Office Buildings (Up to G + 8) Industrial Buildings
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• • • • • •
Future outlook of the industry
PEB is one of the most competitive and Growing Industry in India, having
33% market share in the construction industry.
PEB Industry in India has great potential with
market earned revenues of INR 52,970 million in 2012
and estimated to reach
INR 136,120 million in 2016
, growing at a compound annual growth rate
(CAGR) of 26.6 %
(Says, analysis from Frost & Sullivan) The Government of India has set a massive target for developing infrastructure in the
12th FYP (2012-17) at an estimated cost of INR 40,900,000 million,
of which nearly 33-34 percent have been allocated for the power sector, providing huge growth opportunity in PEB The commercial building sector in India is estimated to reach a target of
20.44 billion square feet by 2030 from 7 billion square feet in 2010.
With the onset and speedy progress of the Metro rail system in the next 10 years, the scope of PEB is immense .
The heightened emphasis on
green building construction
is also poised to push market expansion. Steel, the basic material of PEBs, being very eco-friendly, allows any project high scores on Greenfield compliancy
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COMPETITION
• • •
Industry Leaders
Kirby Building systems Zamil Steel Inter Arch • • • • • • •
Other competitors:
Tata Bluescope Steel Jindal Build ERA Group Everest Industries Chicago Steel Amsteel Aster Building Solutions and many More…….
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Up to 70% Repeat Order Rate Current – Over 100 Running Projects
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AWARDS AND RECOGNITION
Richa Industries Got
“Customer Excellence Award as Growth Partner of IOB”
from Indian Overseas Bank in their Annual Award Function held on 19 th May 2013 at Delhi.
Richa Industries limited has Ranked in year 2012.
208, India fastest
Growing Mid -sized company as per Inc. India 500
Awarded as
Best Promising Pre-Engineering Steel Bldg. Manufacturer from India By “Indian Achievers Podium", in their "10 th All India Excellence Award " & " 6th Realty Award
" Received certification in Textile Division for
GOTS/EKO
Sustainable Textile & Textile Organic Exchange from Control Union Certifications.
Received
Second Runner up award in the Emerging India Awards at LONDON 2008
, organized jointly by ICICI Bank & CNBC TV 18.
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Financials
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TURNOVER DISTRIBUTION
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Key Ratios Years
Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) PE EBIDTA DivYield PBV EPS
Mar-13
2.4
1.2
1.1
1.5
2.5
4.5
2.0
20.0
17.2
11.3
10.3
7.5
17.0
25.3
2.1
45.7
3.1
0.3
7.8
Mar-12
2.5
1.1
1.0
1.7
3.1
7.0
1.6
12.6
10.3
6.0
4.3
2.0
12.2
8.3
4.0
37.9
3.6
0.3
3.5
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Mar-11
2.1
0.9
1.0
1.6
2.8
5.7
1.8
15.0
12.6
7.9
6.1
3.7
13.3
12.2
5.7
34.3
1.8
0.7
4.9
Shareholding Pattern - Richa Industries Ltd.
Holder's Name
Promoters General Public Other Companies Others Foreign NRI
No of Shares
12804329 7748690 1306571 358928 96482
% Share Holding
57.38% 34.72% 5.86% 1.61% 0.43%
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Board of Directors- Richa Industries Ltd
Name of Director Designation Mr. Sushil Gupta Dr. Sandeep Gupta Mr. Manish Gupta Mr. Neeraj Bajaj Mr. J.P. Malhotra Mr. Nitin Agarwal Chairman & MD (Promoter Group) Joint MD (Promoter Group) Whole-Time Director (Promoter Group) Independent Director Independent Director Independent Director Qualification M.Tech (IIT-Delhi) awardees of Udoyg Patra & Udyog Vibhushan A Ph.D. Degree Holder, MBA (BVP), GMT -Pearl Institute of fashion B.Tech (DKTE) Experience 23 years 12 years 9 years Chartered Accountant Post Graduate Advocate 20 years 41 years 9 Years
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Investment highlights Experience Management Team
Focussed new business developement Excellent Client List
Growth Strategy ,
AUTOCLAVED AERATED CONCRETE BLOCKS Innovative Business Model Driving value & efficiency from scale Strong Financial s Presence Globally
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Registrar and Share Transfer Agent: Link Intime India Pvt. Ltd.
44, Community Centre, 2 nd Floor Naraina Industrial Area, Phase-I, New Delhi-110028 Ph: 011-41410592/93/94 Fax No: 011-41410591
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THANK YOU AND REMAIN INVESTED You can get in Touch at : Gaurav Yadav- Company secretary Email id. : [email protected]
Corporate & Registered Office :
Plot No-29; DLF Industrial Area; PH-II, Faridabad, Haryana, India 121003 Ph.:+91-129-4009262 & +91-129-4133968,
Work (Textiles):
Village Kanwara, Kheri Jasana Road, Faridabad-Haryana. Phone:+91-129-2201132,34