The Solar group is one of the largest domestic manufacturers of bulk and cartridge explosives. It has 25 manufacturing facilities in India.
In FY11, it entered the defence sector to manufacture high-energy explosives, delivery systems, ammunition filling & pyros fuses.
(2/15)
Main customers/industries:
ā¢ Coal India - 20% share
ā¢ Other Institution - 15%
ā¢ Housing & Infra - 29%
ā¢ Exports - 30%
ā¢ Defence - 5%
ā¢ Others - 1%
(3/15)
First Private Company:
Solar Industries is the first private company in India to manufacture RDX & TNT for the defence sector of the country.
It also manufactures war heads and grenades. It also supplied Pinaka rockets to the Indian Army ( first š®š³pvt company to do so)
(4/15)
ā¢ Order Book:
The company has a healthy order book with three major clients -
- Coal India
- SSCL
- Defence Sector
The total order book stands at ~ā¹2,982 Crores
(5/15)
FY22 numbers YOY basis:
ā¢ Sales - ā¹3,948 cr vs ā¹2,516 cr
ā¢ EBITDA - ā¹767 cr vs ā¹536 cr
ā¢ PBT - ā¹607 cr vs ā¹397 cr
ā¢ PAT - ā¹455 cr vs ā¹288 cr
ā¢ Net Worth - ā¹1,914 cr vs ā¹1,579 cr
ā¢ RoCE - 27% Vs 21%
ā¢ Net Debt/Equity - 0.41 vs 0.39
ā¢ RoE - 23% vs 17.5%
(6/15)
Key Growth triggers:
ā¢ Market Position:
The group is one of the largest (24% share) manufacturers and exporters of explosives and initiating systems in India.
It is one of the few players with complete product range & capability to develop & supply customised product
(7/15)
ā¢ Nature of Business:
Various factors related to the nature of the business gives it a good future stability:
- Limited shelf life of explosives
- Continuous consumption by the armed forces
- Make in India focus
- Long-term defence contracts
(8/15)
ā¢ Backward Integration:
Majority of raw materials such as detonator components, emulsifiers, sodium nitrate and calcium nitrate are manufactured internally, leading to cost savings, quality control and stable operating margin of around 20%.
(9/15)
ā¢ Geographical Advantage:
All the bulk explosive manufacturing units are located in 50-60 km radius from major mining regions. The group has the ability to pass on fluctuations in raw material prices to customers through price escalation clause in the contracts.
(10/15)
Financial Risk Profiling:
Tangible networth was ā¹1,914 cr and gearing 0.5 time as on March 31, 2022. Debt protection metrics were comfortable, reflected in interest coverage of 13.1 & net cash accrual to total debt ratios of 0.52 time(higher the better).
(11/15)
Weaknesses:
ā¢ Regulatory Risks:
Sale of explosives is regulated by the PESO & the Joint Chief Controller of Explosives. Though the group takes precautions at all stages of the manufacturing process and is a member of SAFEX, it remains susceptible to regulatory risks.
(12/15)
ā¢ Volatility in forex rates:
Partial import of raw material and operations in Nigeria, Ghana, Zambia, South Africa and Turkey expose the group to adverse currency fluctuations.
The group incurred translation loss of ā¹37 crore in Q3FY22 due to currency devaluation.
(13/15)
Liquidity:
Cash accrual, expected at ā¹400 crore per annum in FY23, will comfortably cover yearly debt obligation of ā¹100-150 crore. Cash and equivalent stood at around ā¹84.67 crore as on March 31, 2022.
AIG is India's largest integrated glass solutions company & a dominant player both in the automotive & architectural segments. It commands over 74% market share in the Indian passenger car glass market.
(2/15)
Business Verticals:
AIG has significant presence in the glass value chains through the following business verticals-
Incorporated in 1989 by Mr LK Jain, Fiem Industries now is a leading manufacturers of Automotive Lighting & Signalling Equipment's and Rear View Mirrors
in India.
FIEM is among first companies in India introducing LED lights in two wheelers.
(2/15)
2-Wheeler Industry:
2 wheeler sales in India hit the lowest in 9 years in CY21. The average inventory which uses to hover around 25-30 days reached 50 days.
Though the Management of Fiem industries believe that the worst is behind them and the industry is set to grow.
BEL, a Navratna defence public sector undertaking, was established in 1954 under the Ministry of Defence, the GOI, to
cater to the electronic equipment requirements of the defence sector. The GOI remains BEL's largest shareholder with the
shareholding of 51.14%.
(2/13)
BEL is the dominant supplier of radar, communication & electronic warfare equipment to the Indian armed forces. It has 9 manufacturing units & 2 research units. The Bangalore unit is BEL's largest unit, contributing the largest share to itās total revenue & profits.
Fine Organics was incorporated in May 2002 & started operations in 2006 by setting up a manufacturing facility in Maharashtra.
It manufactures oleochemical additives for various end-user industries such as food, plastic, rubber, paint, ink, cosmetics, coatings.
(2/16)
What is Oleochemical?
Oleochemicals are chemical compounds derived from natural fats & oils that can be used as RM in a variety of industries. It can be used as a substitute for petrol-based products known as petrochemicals.
TCIL is a pioneer and leading tinplate producer in India. It has a strong parentage from Tata Steel, helping them to manufacture best quality product along with efficient functioning.
It currently has a production capacity of 3,79,000 MTPA.
(2/18)
Companyās projection:
TCILās mgmt is expecting demand to increase by 6% annually to reach 770KT by 2024.
It is banking on the growing demand in the food packaging sector to fuel its sales.
Other segments that will support TCILs growth are Beverage, paints & aerosol.
DNL started as a sodium nitrite & sodium nitrate manufacturer, before gradually widening its product portfolio over the years. Now it has a leading market position in most of its products.
It has also been doing smart acquisitions of companies with complementary product.
(2/13)
Phenol Market:
The global phenol market is estimated to grow by a CAGR of 4.2% between 2022 & 2027 to reach a value of $24.07 bn.
Asia Pacific currently has the largest market share (52.5%) followed by Europe and North America.