PRESENTATION AT ANALYST MEET 26th May, 2004
FY 04 Highlights • Record topline and bottomline growth • Initiated steps to expand business platform and lower • business risk by • - setting up second automotive plant in the South (Chennai) • - setting up architectural glass processing facility in the West (Taloja) • Continued focus on raising internal efficiencies and building • “relevant” self sufficiency in technology • Recommended a dividend of Rs. 2.25 / equity share, resulting in • pay-out of over 28 % in line with Company’s stated policy.
Automotive Glass SBU - Highlights • Continued to maintain leadership position in the automotive glass • segment, with over 90 % market share in passenger cars • Started supplies to the new models launched during the year • Received following Award / Recognition : • - “Overall Performance” from Maruti-Suzuki • - “Achieving Target of Quality” from Toyota-Kirloskar • - “Achieving Target of Delivery” from Toyota-Kirloskar • - “Q 1 Award” from Ford India • - “TS-16949” certification • Achieved levels of operating efficiencies in line with best in • class benchmarks
Float Glass SBU - Highlights • Achieved a record production of 31.45 million csqm. against rated • capacity of 29 million csqm. • Rationalized product mix, with focus on high-yielding products like • thicker, tinted glass • Continued focus on improvement activities in areas like quality, • customer service, TQM • Maintained market share of 20 %, in the Indian flat glass industry.
Highlights of Financial Year 2003-04 • Net Sales increased 19 %, with Operating Profit, Cash Profit and • PBT increasing by 42 %, 51 % and 108 % respectively over FY 03. • Operating margin (PBDIT / Net Sales) stands at 25.75 % • ROCE (PBDIT / Average Capital Employed) and RONW recorded at • 32 % and 69 % respectively. • Total Debt / Equity and Interest-bearing Debt / Equity stand at 2.08 • and 0.29 respectively. • Financial coverage (PBIT / Interest) stands at 33. • CEPS and EPS soar to Rs. 15.39 and Rs. 8.9
OVERVIEW OF 2003-04 RESULTS – MERGED Results include other income as under (Rs. Lakhs) 2002-03 2003-04 Other income 578.33 1485.34 Other income primarily relates to gains on account of foreign exchange (i.e. appreciation of the Indian Rupee).
MARKET SCENARIO : INDIAN VEHICLE PRODUCTION Vehicle Exports FY 03 -04 82925 against the total of 42600 in FY 02-03
DOMINATING THE OE BUSINESS Customer Share of Business Asahi India is the sole glass supplier to almost the entire Indian car business. Current market share is approximately 91% of automotive glass sales to OEMs. Building presence in the after market has been a key element of the strategy to diversify sales. Current market shares is 55% in the automotive glass replacement market in terms of value. Fiat India : Palio 50% : Uno 100% Ford India 100% General Motors India Ltd. 100% Hindustan Motors - Lancer Project 100% Honda Siel 100% Hyundai Motors India 100% Mahindra & Mahindra : Scorpio 100% : Other MPV's 50% Maruti Udyog Ltd. 100% TELCO : Indica 70% : Safari 100% : Other MPV's 30% Toyota Kirloskar 97% TOTAL 91%
MARKET WISE SALES 7% 7% 11% 7%
SHOPFLOOR PERFORMANCE AIGL (automotive) shop floor performance can be benchmarked to best in class, covering all parameters. • Shop floor yields, at over 96%. • Customer claims are within 100 ppm. • Machine uptimes are in the range of 98%
TECHNOLOGY DEVELOPMENT A key strategic initiative at Asahi India has been in the area of building “relevant” self sufficiency in technology. We are fully equipped with CMM, CAD and a CNC Milling station, which provides self sufficiency in the area of product development. We have, however, gone beyond this into the area of developing and building glass processing equipment. CNC PRE-PROCESS LINE DEVELOPED BY ASAHI INDIA
2ND AUTOMOTIVE GLASS PLANT • Asahi India’s laminated plant at Bawal, with a capacity to manufacture 1.2 million windshields, is currently operating at full capacity. • With most of the new capacity having been established by majors like Hyundai, Toyota and Ford in South India, the second automotive glass plant is being set up in Chennai in South India. Car production in this area is expected to rise from the current level of 220K to over 470K in next five years • Besides proximity to key customers, Chennai is a Port city, thus allowing cost reduction in import of raw material (such as PVB)as well as in possible future exports. • Commercial production of laminated windshields at second plant (Phase I) to commence from October, 2004. Capex for Phase I planned at Rs. 53 crores.
EXPANSION : BRIEF HIGHLIGHTS • In Phase 1, only laminated plant to be established in Chennai – with capacity of 500,000 windshields. Plan for raising laminated capacity to 1.5 million windshields to be decided later, depending on overall demand situation. • Plant to be set up in modular fashion – i.e. ability to take capacity up to 1.50 million windshields with some de-bottlenecking and additional investment. • Plan to invest in Chennai for tempered capacity. • Once fully set up, new facility in Chennai planned at capacity of 1.50 million laminated windshields and 1.0 million tempered car sets. • Chennai facility to include Value Addition capability (Assemblies, Add-ons) as required.
Expansion Location - Automotive Glass Plants Current Plant Proposed expansion
QUARTER WISE SALES AND MONTHLY PRICE TREND • Sales peaked in the third quarter, but at lower prices. • Prices remained quite static in the 3rd and 4th quarters, but volumes dropped off in the • last quarter.
SHOPFLOOR PERFORMANCE At 31.45 million csqm, production is up by over 37% from 2000-01 (the last year before the coming together of FGI and AIS to form AIGL).
Asahi India Group Vision To be India's leading integrated glass company AUTOMOTIVE GLASS VALUE CHAIN Automotive glass manufacture (AIS) Allied Products distribution (e.g. sealants) (AWAGS) Auto Glass Retail (Windshield Experts) Automotive Glass distribution (AIM) (Blue cells signify those areas where we are already present, Grey cells where we are present by way of tie ups, Green cell where set up / launch activities have been initiated and un-shaded cell the areas which are under consideration for the way forward) Float Glass manufacture (FGI) Value Added Products : Reflective : Mirror Processing: : Laminated : Tempered : Insulated Glass Fabrication Installation Design & Retail ARCHITECTURAL GLASS SOLUTIONS
Capturing value chain presence • In the automotive glass business, Asahi India already has a value chain presence, reaching out to end consumer. • In the architectural glass business, Asahi India is initiating steps to capture the value chain, through a separate SBU - Glass Solutions, to address the following segments : • - Architectural processing & glass products • (First unit being set up at Taloja near Float Glass Plant) • - Product and knowledge development • - Glass Services • - Sales & Marketing • Asahi India will work towards capturing values in the complete chain in FY 2004-05.