RICO AUTO INDUSTRIES LIMITED Investor Presentation - July 2017.pdf · Web: RICO AUTO INDUSTRIES...

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RICO AUTO INDUSTRIES LIMITED

Investor PresentationJuly 2017

A world class integrated supplier ofAutomotive Components & Assemblies

Web: www.ricoauto.in

Emergency Evacuation Plan

Safety Is Our First Priority. Evacuate in case of emergency by hearing a

long hooter. Follow the following steps:

• Use the emergency exits and move

towards nearest Assembly Point No.-2 in

front of dispensary.

• During Plant Tour - Follow the host

Instruction to reach safely at emergency

exits.

• Follow Your host.

• Maintain distance from machines.

• Only follow the Red path designated for

walking

c

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All statements included or incorporated by reference in this presentation, other than statements orcharacterizations of historical fact, are forward-looking statements. These forward-looking statementsare based on our current expectations, estimates and projections about our industry, management'sbeliefs and certain assumptions made by us. Although Rico Auto Industries Limited believes that theexpectations reflected in such forward looking statements are reasonable, there can be no assurancethat such expectations will prove to be correct. Any forward-looking statement speaks only as of thedate on which such statement was made, and Rico Auto Industries Limited undertakes no obligation toupdate or revise any forward-looking statements, whether as a result of new information, future eventsor otherwise. No assurance can be given that actual results, performance or achievement expressed in,or implied by, forward looking statements within this disclosure will occur, or if they do, that anybenefits may be derived from them.

Safe Harbor Statement

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TABLE OF CONTENTKey Business Strategies

Vision, Strategies and Values

Strong Customer Value Chain & Milestones

Key Management

Geographical Presence

Product Divisions & Segments

Global Customers

Joint Ventures & Subsidiaries

After Market Initiative

Facilities & Infrastructure

R&D Capabilities

Organizational Structure

Financial Overview

Stock information

Awards & Recognition

CSR

04

05

07

09

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• Client engagementfrom concept tocompletion stage

• Strong in-house R&Dcapabilities.

• Long-establishedrelationship withOEMs.

Preferred partnerto OEMs

• Proximity of itsplants to the OEMs.

• Just in timeapproach

• Last MileConnectivity foroverseas customers

Strategicallylocated plants

• Excellence inengineering criticalproducts.

• Strong focus onproduct & processinnovation.

4 decades ofExecution Experience

Extensive productportfolio :

• Passenger vehicles,

• Commercial /Off Road Vehicles

• 2 Wheelers

• System Suppliers

• Balanced business:Segments / Geography

De-risked BusinessModel

Key Business Strategies

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6

To be the preferred supplier to OEM’s across the Globe.Vision

Strategies

RICO AUTO INDUSTRIES LIMITEDNext >

Preferred SupplierCustomer Focused Enterprise,Efficient Account, Program &Launch Management

GlobalizationGlobal Teams, Global Presence &Scale

World Class QualityISO TS 16949, ISO 14001, OHSAS18001

Integrated Services -Concept to DeliveryDesign, & Development , Testing& Validation, Tooling &Prototyping, Casting(Aluminum& Ferrous), Machining &Assembly, Logistics Management

PeopleTraining, Skill Building,Empowerment and Leadership

Shareholder ValueFocus on return on CapitalEmployed Consistent DividendDistribution

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ET

IC

EX

ENTREPRENEURSHIPThe power of persuing new challengeswith speed, flexibility and ownership

TEAMWORKThe power of working together

INTEGRITYThe power of honesty andtransparency

COMMITMENTThe power of responsibility,accountability and ownership

EXCELLENCEThe power of being the best

Core Values

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Strong Customer Value Chain

R&D - Design Development, Validation & Testing

Engineering CAD CAM CAE

Manufacturing - Dies & Tooling

Casting - Aluminum & Ferrous

Manufacturing & Process Engineering

Machining & Assembly

Logistic Management

Concept tocompletion

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R&D Center StartedAdded Customers – NISSAN, TATA, Perkins2004-06

Technical Collaboration FCC JapanCommercial Production Started (1986)Aluminum Die Casting & Machining (Dharuhera)Focus – Hero Honda & Maruti Suzuki

1985-86

ISO 9000

International Market OEM Supplier – MEC JapanFerrous Casting & Machining (Gurgaon)Focus – Maruti Suzuki

1990-92

QS 9000

TS 16949ISO 14001 OHSAS 18001

FORD Q1CAT SQEP-Bronze

Full Service Engineering Design DevelopmentAdded Customers – FORD, Landrover, Jaguar2000-02

JV (50:50) FCC RICO (Clutch Assembly)Started Exports – GM, Eaton, Cummins

1994-96

Aluminium Die Casting & Machining (Gurgaon)1999-00

Enhanced Ferrous and Aluminum CapacityAdded Customers – GM, Caterpillar, Honeywell, Detroit Diesel, Volvo

2003-04

JV with MAGNA Powertrain (Oil Pump, Water Pump)JV with Jinfei China (Aluminum Alloy Wheels – 2 Wheelers)Added Customers – JATCO, Magna, Renault, BMW

2007-09

2010-14 Added new facilities - Plants At Bhiwadi, Sanand, & HaridwarAdded Customers – Musashi, GKN, Toyota, VW, Kohler, Avtec.

Added new facilities- Plants At Bawal & ChennaiAdded Customers – Bentley, PSA.

2015-17 VDA 6.3CAT SQEP-Silver

The Journey So Far

GM QSB

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Arvind KapurChairman, CEO & Managing Director

Board of Directors

Arun KapurJoint Managing Director

Upasana KapurNon-executive director

Rakesh Kapurnon-executive director

Vinod Kumar NagarIndependent Director

Rajeev KapoorIndependent Director

Satish SekhriIndependent Director

Dr. Ashok SethIndependent Director

Amarjit ChopraIndependent Director

Kanwal MongaIndependent Director

Web: www.ricoauto.in11

Management Team

N. K. SethiManagement Advisor

O. P. AggarwalFinancial Advisor

Advisory Committee

B. M. JhambCompany Secretary

Company Secretary

SurendraSingh

President & COO

Rakesh SharmaVice President

Finance

R. K. MiglaniVice President

Operations

M. K. JainVice President

(Corporate Quality)

R. DharnaVice President

Operations

Sandeep RajpalVice President

Marketing

Abhishek KulshresthaVice President (Procurement,Vendor Devp. & After Market.)

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15 Acres 27 Acres

GURGAON(Corporate, R&D, Tool

Manufacturing, Ferrous Casting, Al.HPDC, Machining)

2 Acres

HARIDWAR(Al. HPDC, Machining)

12 Acres

CHENNAI(Al. HPDC, Machining)

BHIWADI / PATHREDI(Machining)

12 Acres

5.5 Acres

SANAND(Al. HPDC, Machining)

BAWAL(Al. HPDC, Machining)

DHARUHERA(Al. HPDC, Machining)

5 Acres

5 Acres

MANESAR(Al. GDC, Machining)

Manufacturing Locations - 14

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35%

46%

19%

Engine Transmission Chassis Suspension & Braking System

Group Revenue – Product Segment Wise

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Domestic73%

Exports27%

Domestic Exports

Ferrous29%

Aluminum Ferrous

Aluminium71%

Revenue – Product Segment

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Engine Business

Engine Block(Renault, Tata)

Case Chain/ Case Timing(Honda, Renault, Suzuki)

Oil Pan(Suzuki, Honda, GM, Tata )

Bearing Cap(Renault, Cummins )

Exhaust Manifold(Renault, Nissan, Suzuki)

Turbo Outlet(Renault)

EGR Pipe(Renault)

Assy. Cover CylinderHead (Suzuki, GM)

Balancer Shaft(GM)

Cam Cap Support / LadderFrame (Renault, Suzuki)

Engine & SupportBrackets (Suzuki,

Renault, VW, Volvo)

Turbine/ Center Hsg(Nissan, Tata, GM, Suzuki, Fiat,

Honda, Ford, Hyundai, JCB)

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Transmission Business

Transmission Case(Eaton, Renault, Suzuki )

Shifter Forks(Suzuki)

Differential Case & Housing(BMW, GKN, Suzuki, Ford, Honda)

Clutch Housing(Renault , Eaton )

Clutch Plate(Eaton)

Ground Sleeve & Shaft(Allison )

Retainer Bearing(Jatco)

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Four Wheelers

System Supplier

Two Wheelers

Global Customers

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Oil PumpWater Pump(Automotive Engines)(India & Europe)

50% : 50%

Year FY 15-16 FY 16-17

Oil & Water Pump Assemblies( Nos in Mn) 28%

Turnover (INR CR)

Magna – Rico (Joint Venture)

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Aluminum Alloy WheelsTwo Wheelers

93.49% : 6.51%

Year FY 15-16 FY 16-17

Alloy Wheels5.4%

Turnover INR CR

Rico Jinfei (Joint Venture)

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AAN ENGINEERING INDUSTRIES LTD.

Enlisted and Registered with DGS&D, & DPSU’s (HAL, HVF, ECIL )

Year FY 15-16 FY 16-17

Turnover (INR CR)

AAN – DefenseVertical

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o Aftermarket BusinessInitiated on 20th May’2017

o First Phase – 2W Range

o Second Phase – 4WRange from Jan.’2018

After Market Initiative

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Product Spectrum

After Market Initiative

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o Turbo Manifoldso Water-cooled Bearing Housingo Clutches for Motorcycleso CVT for Scooters

o Motors - Covers & Housingso Transmission - Housings & Diff Caseso Light Weighting – Structural Parts

o Stainless Steelo Low Si Cu Mg Alloy (Rico Spec)

Electric Programs

Products

New Metallurgy

New Technology Foray

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Over 100 High Pressure Die Casting Machines (upto 2500 Tns Locking Force)Largest High Pressure Die Casting Capacity in India including GDC & LPDC.

Aluminum

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4 Molding Lines - 2 DISA & 2 Horizontal (SINTO & DISA)Vertical Size ( 650 * 535 * 130~330) & Horizontal Size ( 610 * 510 * 200+200)

Material: Gray (FC), Ductile (FCD), SiMo, SiMo Chrome

Ferrous

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Over 2000 Machines (CNCs & SPMs)One of the Largest Machining Facility in India

Over 50% of Our Product Range is with Assemblies

Machining & Assemblies

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PATHREDI ( near Bhiwadi )

New Iron Foundry & Machine ShopTarget – June 2018

BAWAL

New Machine Shop ReadyAluminium Casting Shop Expansion - July 2017

CHENNAI

Aluminium Casting & Machine Shop ExpansionTarget - August 2017

Expansion Plans

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Capabilities (Over 60 Seats)

CAD – CAMNX, Pro E, Catia, C3P, Ideas, Vericut

CAE - FEA, CFD, Ansys, FCX, MSC Fatigue

Magmasoft, 3D Printing

Advantages

Concurrent Engineering with Customers

Inhouse Designing, Prototyping & Special CNC MachineBuilding

Shorter development time.

R & D / Engineering

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Process Change – GDC to HPDCWeight Reduction – 0.55 Kg

Quality ImprovementWeight Reduction – 0.50 Kg

Process Change – GDC to HPDCWeight Reduction – 1.80 Kg

Process Change – GDC to HPDCWeight Reduction – 0.85 Kg

Machining Elimination

Process Change

Weight Reduction

Quality Improvement

Machining elimination

Product Optimization

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Product Optimization

OLD PART WT1.100 Kg

NEW PART WT0.810 Kg

o PART PRODUCED IN HPDC PROCESo MEETING POROSITY REQUIREMENTSo MEETING STRENGTH REQUIREMENT

NTA BRACKET

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Design & Manufacturing

o Dies for HPDC Critical Parts upto 2500 To Dies for LPDC & GDC dies.

Tools & Die Manufacturing

Manufacture over 250 Dies & Patterns and 800 Die Inserts Annually

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SIAM Projections - Auto Industry

Overall9-12%

Scooters15-18%

Motorcycle7-9 %

6-9 %

PV

9-12 %

M&HCVs

6-9 %

LCV

Two Wheelers

Impact of GST Implementation is yet to be ascertained.

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Organizational Structure

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Financial Review

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Financial Review

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Stock InformationStock Data

50.10%43.26%

6.64%

Promoters

Others

Institutions

Shareholding PatternMarket Cap 878.00

(in Crs.) (as on July 10, 2017)

Stock Price 64.90(as on July 10, 2017)

52 Week (High / Low) 75.25 / 40.35

NSE / BSE RICOAUTO / 520008

No. of Shares Outstanding 13,52,85,000

Free Float 48.88%

Stock Performance (as on July 10th, 2017)

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Awards & Recognition

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Corporate Social Responsibility

Enhancing EnvironmentalSustainability

Supporting RuralDevelopment

Providing PreventiveHealth Care

Promoting Girls Education& Skill Development

Promoting “ Cleanliness &Sanitation” in Rural areas

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Corporate Social Responsibility

Eye Checkup Camp for External VehicleOperator

10th Jan 2017

Jan. 2017

Joy of Giving

Distributed Lunch Box, Water Bottle, Softtoys, Winter Clothes & bags

CSR Project Sites

Ongoing CSR siteGovt. Middle School , Village

Jiwana

Inauguration Ceremony of CSR SiteOn 25th July 2016

Ride Safe Program

Ride Safe Program with HERO MotoCorp12th Jan 2017

Create With Joy Workshop21st January 2017

Toilet Facility Provided inPHC of Banipur

Govt. School , VillageMalpura

Govt. Middle School ,Village Chaupanki

Step Up Education Facility For NathupurSlum Area operated by HPPI

Oct 2nd – Oct 8th

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Induction Training – “Parichay” Company Wide Training – “Jagriti” Kaizen Award Ceremony

Best Work Place - Competition

Long Service AwardsSports Competition Yoga Training

Employees Children Safety Competition

Health Awareness Camp

Family Connect Program

Organizational HR / IR InitiativesEmployee Engagement & Nurturing Harmony

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Thanks