Investor Presentation

Subros Limited
Investor Presentation
Updated December 2015
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Contents
Industry Overview
Introduction to Subros Limited
Financial Information
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3
Auto industry in India
Source : ACMA
(„000 units)
Source : IBEF
PV : CAGR 2011-15 : 2%
CV (SCV & LCV): CAGR 2011-15 : -2%
Due to infrastructure development focus of the Government in India, Vehicle sales
potential for both (Car and Commercial vehicle ) segment is very high.
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Automotive component industry in India
Impact of Make in India movement of the
government will be high in localisation level
achievement and emerging need of IPO
(International Procurement Office) i.e.
source parts from India for overseas
company use is high potential area for Auto
Component industry
Turnover includes supply to OEMs, aftermarket Sales and Exports
CAGR : 11%
Source : ACMA
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Introduction to Subros Limited
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Subros : An Update
Established in 1985, Subros is the Largest AC company in India.
A Joint Venture company between
Product Profile
R&D
Noida
Manesar
Pune
Sanand
Die Casting
Tool Engineering Centre
Capacity 1.5M/Yr
Chennai
ISO 14001,TS 16949,OHSAH 18001
No. of Employee 1950nos
Board
Standing L to RRow - 1 (Bottom)-MR. G.N. MEHRA, MR. K. R RAMAMOORTHY, MR. RAMESH SURI, MR. KENICHI AYUKAWA
ROW -2-MR. SHAILENDRA SWARUP, DR. JYOTSNA SURI, MS. SHRADHA SURI MARWAH, MRS. MEENA SETHI, (MR. KAJITA –
ALTERNATE DIRECTOR TO MR. MAKINO)
ROW-3- MR. D M REDDY,MR. M A PATHAN, MR. HANUWANT SINGH, MR.HEMANT AGARWAL (DY COMPANY SECRETARY), MR.
MANOJ SETHI- SVP (FINANCE, HR & IT)
Management Team
Our Employees , Our Strength
Guiding principles
Vision
Mission
“To be the world-class Auto-Air
"To maintain Market Leadership
Conditioning and Thermal Engineering
through Total Customer
System Manufacturer having Global
Satisfaction in terms of
Competitiveness”
Quality, Cost & Speed”
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Customers
Our Presence
Car Segment
Commercial Segment
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Major milestones
Start of Denso Subros
Engineering Centre
SAP Implementation
Established in 1985
Launch of MPS-Maruti
Production system for
manufacturing
excellence
Set up of Noida
Plant-1
Pune Plant
Started
Completion of 25 years
Capacity 1 Million AC kits
Squeeze Die
Casting Plant
Introduction of New Customer "Renault
Nissan".
Development of new Product (10SL09)
compressor. Chennai Plant becomes
operational
New Tool Room being set up at Noida
Launch of transport
Refrigeration System
Bus AC
Development
1985 1986
1995
2000
2001
2002
2006
2007
Set up of Noida Plant-2
MF Condenser plant
Start of Operations at
Manesar Plant
2008
2009
2010
2011
2012
2013
2014
Capacity 1.2 Million AC
kits
Localisation of RS
Evaporator
2015
Subros celebrated 30
Years of partnership
Capacity 1.5 Million AC kits
Inauguration of Chennai plant
Radiator entrustment
production started for
Denso
Inception of STEC
(Subros Tool
Engineering
Centre)
Transformation from CKD* assembly in 1985 to “Full Systems developer in Thermal Engineering”
* CKD - Completely Knocked down
Journey of Transformation
Threat
Mitigation
Cost rationalization through localization of high value
Threat of competition
Capacity constraint
imported parts and VA-VE activities
1.
Single Plant ->> Multiple Plant structure
2.
Capacity enhancement from 15,000 kits to 1.5 Mn
AC kits
Skewed customer
profile
Established supplier of OEMs like Maruti, Tata, Force
motors and M&M with market share of 40%
Entry into Commercial Vehicle AC, transport refrigeration
Limited product
portfolio
systems, rail AC, engine cooling & aftermarket segment
1.
2014-15
Technology
obsolescence
Strong local designing capabilities - design JV in
India with Denso
2.
Established R & D and testing facilities
3.
Successful set up of tooling facility for captive &
customer tooling requirement
Internal controls /
governance
Successful launch of ERP system. Ranked among “Top 5
IT User companies in manufacturing segment in India” at
IT user Awards 2004 by Nasscom and ET
The transformation has been a meticulous identification, evaluation & mitigation of business risks for growth
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Awards and Recognition
2013
2014
2015
MSIL Gold Trophy for overall
performance.
MSIL Gold Trophy for overall
performance.
MSIL Shield for overall
excellence
MSIL Shield for System Audit
Rating.
MSIL Shield for Focused Cost
Down.
MSIL shield for quality
improvement
MSIL shield for system audit
rating
MSIL Certificate for Inner Part
Localization.
The Economics Times Gold
Award for India Manufacturing
Excellence.
Frost & Sullivan ratings of Indian
Manufacturing Industry for sustainability
Adaptation and no. 1 in Innovation and no.
3 in Customer focus.
Certificate for inner part
localization
TCM-Cll Level V Ranking(2013)
Certificate for superior
performance in the field of
"Design & Development"
Certificate for superior
performance in the field of
"Safety"
Certificate for superior
performance in the field of
"Spares schedule adherence"
ACMA Silver trophy for
Manufacturing Excellence
Silver Trophy for ACMA HR
Excellence Award in Special
Category 2015
Quality Assurance Model
3. Technical
Requirements
• NPD Quality
1. Customer
Requirements
• Tier 2 Quality
House of Quality
• Inhouse Quality
• Field Quality
Manufacturing Infrastructure
Shop Floor
RS Evaporator Line
Squeeze & vacuum pressure
die casting machine
Condenser Assembly
Nocloc brazing furnace
for Condensor
Robotic surface treatment
machine
Compressor Assembly
(Clean Room)
Robotic manipulator
extractor
HVAC assembly line
Helium leak test
machine
Robotic Vision
inspection
Injection moulding machine
Tube liquid line
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Product development infrastructure – R&D and tool
room
System Calorimeter
Vibration Resistance
Testing
CAD-CAM Facility
Die spotting press
Computer aided
engineering (CAE)
Environment Test Chamber
CNC VMC VF6
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Corporate social responsibility
Subros follows policies at company level, plant level and Individual level to
identify and execute CSR projects
Some examples of the work done by employee
teams at Subros
• Subros is a part of the Green Delhi campaign and sponsors trees
and green areas across the city. This initiative has now been
extended to all metros
• Clothes & Books distribution to under privileged people residing
in slum areas in Delhi NCR is conducted by Women Cell ‘Jagriti’ of
Subros
• Waste elimination is considered equally important as per Subros
environment policy. Mutual benefits are earned by implementing
waste recycling projects.
• Periodic activities are also been conducted every year in-line
with organization’s policy of continuously contributing to the
society. For e.g. blood donation camps, tree plantation etc.
Subros women committee
(Jagriti) clothes donating drive
Blood donation camp
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Financial Information
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Financial Performance
2000
INR Crores
Gross Sales
11% growth
1436
1500
1314
1333
FY 14
FY 15
1480
1000
500
FY13
FY16 Projected
Operating Profit %
Q on Q Sales Trend
400
300
200
100
-
318
5%
334
357
22%
11.22%
12.00%
377
365
309
2%
14.00%
Q1-15
Q1-16
10.00%
11.42%
12.46%
9.61%
8.00%
6.00%
Q2-15
4.00%
Q2-16
2.00%
Q3-15
0.00%
30% improvement
FY13
FY 14
FY 15
FY16 Projected
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Financial Performance
12.00
Material Cost %age
ROCE
14.00
11.74
10.43
10.00
80.00%
8.86
9.09
6.00
40.00%
30.00%
32% improvement
4.00
69.72%
67.18%
60.00%
50.00%
10% improvement
20.00%
2.00
10.00%
FY13
2.5
71.07%
70.00%
8.00
3
74.62%
FY 14
FY 15
FY16 Projected
Investment to Sales Ratio
2.4
2
2.18
2
1.92
FY 14
FY 15
1.5
1
0.5
0
FY13
FY16 Projected
0.00%
FY13
FY 14
FY 15
FY16 Projected
• Major Focus Area is to realise the
investment already done.
• All investment for infrastructure
buildup to meet customer
demand up to 2017 is already
completed.
• Further, all future investment
decisions are link to ROCE.
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The Subros advantage
Market leader in auto air conditioning (40% market share) for Car Market and
Commercial Vehicle segment
Strong lineage, experienced management and strong brand equity.
Strong partnership with foreign collaborators i.e. Suzuki Motor Corporation
(SMC), Japan and Denso Corporation (Denso) each hold 13% stake in Subros Limited.
Established supplier for Maruti, M&M, Tata Force Motor, Renault Nissan and Indian
Railways.
Strong technical collaboration with global leader in automotive air-conditioning i.e.
Denso, Japan. State of art R&D and Testing facilities. Strong local design capabilities
with the setup of Denso Subros engineering services center -Subros’ design JV with
Denso
High capability for in-house tool manufacturing allowing for vendor up gradation, in
house tool development as well as revenue diversification.
All India integrated infrastructure and network for manufacturing, R&D, New Product
Development (NPD) and after sales support
Excellence in ERP systems (SAP)
Committed vendor base
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Thank You
www.subros.com
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