Thread by @MiddhaSameera

Today I am posting my 1st thread. Before that, I want to show my gratitude to all of my mentors who have spent their time & energy upon me to help me in my learning.

#timetechno
A Techno-Funda 🧵 on Time Technoplast Ltd (TTL)

Not a suggestion, only for learning

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TTL manufactures Innovative & Tech oriented polymer products. It has subsidiary companies operating across the globe.

TTL is at an Inflection point. Currently, it manufactures polymer products for various industries but now its plan is to grab a leadership position in

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value added & Hi-tech products & for this they have started taking necessary steps.

➡️The industries they cater to & their products & their growth triggers
They have 3 categories of products:
1) Established Products
2) Value Added Products
3) Hi-Tech Products

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➡️Established Products

1) Industrial Packaging

👉60% market share in domestic Indust. packng
👉4th largest indust. packng cmpny worldwide
👉Trigger: Shift of chemical manufac. base from China to India is a significant growth opportunity for Indian packaging industry.

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2) Infrastructure
These pipes act as an ideal substitute for galvanized iron, cast iron & are appropriate for various uses like – water distribution, sewage, waste disposal, Natural gas distribution, electrical ducting, effluent discharge etc.

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3) Automotive industry

Rain Flaps reduce the amount of salt and other road grime from hitting the undercarriage of your vehicle, which can ruin the vehicle’s sensitive electronics.

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➡️Value Added Products
1) IBC (Intermediate Bulk Container)
👉1st to launch in India
👉3rd largest manufacturer worldwide.
👉IBCs are ideal for carrying most hazardous & precious chemicals or any goods that are more prone to damage while they are being carried through
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rugged terrains as these IBCs can handle the rough handling situations & thus can safely carry the item stored into it.

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2) LPG Composite Cylinder
👉TTL is its 2nd largest manufacturer worldwide
👉On 3rd Mar 2022, TTL received an order of 7,58,814 nos. cyl. of 10kg capacity for a value of Rs 180 cr from IOCL(Indian Oil Corporation Ltd) to be supplied over next 12 months & it can be repeated

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➡️Hi-Tech Products

🔴Type-IV Composite CNG cylinders

👉These are Carbon fiber wrapped Metal free cyl. for high pressure applications including CNG & hydrogen.

👉2nd Largest Composite Cylinder manufacturer worldwide.

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👉1st to launch Type-IV Composite Cyl. for CNG in India & these are approved by PESO for CNG cascades & CNG on board applications. ( which creates entry barrier for any new player)

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👉TYPE IV CNG CYLINDERS HAS 2 APPLICATIONS
1) CNG Cascades
2) CNG onboard application

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🔴CNG Cascade
👉It is a high growth biz & this is why TTL is going to capture that opportunity.
👉In order to make 1 cascade u need multiple cylinders, it can be steel cylinders or Type IV composite cylinders.

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👉But there are few Reasons bcz of which using Type IV cyl. is way better than using steel cyl. for making cascade :
No doubt that Type IV cyl. are leak proof, non corrosive, non explosive & require lesser maintenance but 1 major feature it has is that its lighter in weight
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So if a cascade has capacity of 9000 liters then cascade made of steel cyl. will weigh 13,200 kg & on the other hand a Type IV cascade of same capacity will weigh only 2,538 kg
So with Type IV cyl. you can carry 2.2 times more gas in 1 trip & it will also reduce the
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transportation cost for carrying the gas by 50%

➡️Opportunity in CNG cascades

Since CNG is a cleaner fuel than petrol /diesel so that’s why The Ministry of Petroleum & natural gas is focused to develop Natural Gas infrastructure in the country. In the 9th & 10th round of
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City Gas distribution (CGD) bidding, 8,181 new stations for CNG have been allotted which are to be set up in the next 8 years.
For every CNG station it require 2 CNG cascades, so in total 16,362 cascades will be required.

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And the cost of 1 cascade is 70 lakhs so this creates a total opportunity size of 11,450 crores for TTL in next 8 years.

🔴CNG onboard applications

Since transportation sector contributes to a major part of CO2 emissions that why Govt is looking for a cleaner option.

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CNG fuel in vehicles is a cleaner option than petrol / diesel vehicles. So that is why govt is looking to convert the intracity buses into CNG buses.
Here again, using a Type IV cyl. would be better than using a steel cyl. Bcz of the higher weighing steel cyl.

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the fuel efficiency of the bus will reduce & also since it will be mounted on top of so it will be risky as bus can tumble when bus would take any sharp turns & as the bus will become heavy, it will have to reduce the no. of passengers.

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So, using Type IV cyl. is more beneficial than using a steel cyl.

👉Currently, TTL have order booking of the CNG cascades business and cylinder biz of more than 250 crores.

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CNG has some other applications also & govt of India is focused on these applications also. So for TTL, it will create an opportunity size of 2200 cr sales every year for next 5 years.

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These opportunities are:

➡️Positives
👉For last 8 yrs , TTL is growing its annual sales by 12-15% every yr
👉Operations are de-risked with plants located at diff. locations
👉TTL is regularly & slowly doing capex for value added & Hi-Tech products while continuously

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observing the demand scenario.
👉All types of metal cylinders can be replaced with composite cylinders so Composite cylinders has got a huge market to foray
Estab products hv OPM of 11-14% but value products hv OPM of 18-22%. By 2025 mgmt is targeting to increase the

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share of value added products business will go up to 32% from 22% currently.

➡️Negatives:

TTL has to spend 70-80 cr as maintenance capex every yr.
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In continuation of thread

➡️Risks:
👉If price of CNG gets sustained at elevated levels then it would be difficult for govt to shift towards CNG & opportunity of TTL is dependent on govt policies for CNG
👉TTL’s raw material is derived from crude oil so any fluctuation in
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price of crude oil can impact company’s margins.

➡️Value added Product under development - Hydrogen Cylinders

Going forward when EVs will grab the market
(Hydrogen vehicles are also EVs)
As we know that Hydrogen vehicle is the future.
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But H2 cyl. must hv a burst pressure of 1300 bars & traditional cyl. doesn’t hv this capability. Only composite cyl. can support that. Reliance is planning to set up for green H2 & TTL is in close touch with Reliance to provide them with composite cyl. for H2

--End--

Thankyou🙏

TTL has got orders of 100cr fromTESLA POWER USA INC (not Elon Musk wala Tesla😅) This is 4 supply of VRLA Batteries of different sizes for applications covering Power, Solar, UPS etc.
TTL was in plans to sell this non core biz & after this order it can get attractive prices.

@UditSharma1326 sir I just noticed ur like😃😃 got so many words of appreciation 4 this thread but ur like made my day because U & @Investor_Mohit sir are the ones who hv always supported me during my journey & for being so patient even while I ask those minor & childlike Ques😅