Operational Excellence for a Better Future - Time Technoplast Ltd
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Operational
Excellence
for a Better
Future
Analyst Day
June 2021
BSE: 532856 | NSE: TIMETECHNO | ISIN: INE508G01029 | CIN: L27203DD1989PLC003240
©2021, Time Technoplast Ltd., All Rights Reserved
Who We Are
LEADING THROUGH INNOVATION AND TECHNOLOGY
Leading Global Industrial packaging company
First to launch Type-IV Composite Cylinder for LPG Dominant market position with over 60% market
and CNG (CNG cascade and on-board application) share in domestic Industrial packaging. World’s
in India. 2nd Largest Composite Cylinder largest manufacturer of large size plastic drums
manufacturer worldwide.
2
2nd largest MOX film manufacturer in India Market leader in 9 out of 11 countries it operates in
Major Player in manufacturing of HDPE First to launch Intermediate Bulk Container (IBC) in
pipes in India India and 3rd Largest IBC manufacturer worldwide.
© 2021 Time Technoplast Limited, All Rights Reserved. 2
Agenda
Company
Company Updates & Financial
01 02 03
Overview Strategic Overview
Outlook
© 2021 Time Technoplast Limited, All Rights Reserved. 3
01 Company Overview © 2021 Time Technoplast Limited, All Rights Reserved. 4
Time Techno At A Glance
Business Mix (FY21 total revenue : ₹3,009 Cr.) Industrial Packaging Sales by User Industry
Established Industrial Packaging Infrastructure Technical & Lifestyle
Polyethylene (PE) Pipes, Energy Turf & Matting, Disposable Bins,
Products Polymer Drums, Jerry Cans, Pails
storage devices Auto Products
67% 9% 4%
(80%)
(₹2,413 Cr.)
Value-Added Intermediate Bulk Composite Cylinders MOX Film
Products Container (IBC) (Techpaulin)
Specialty
(20%)
(₹596 Cr.) 10% 6% 4% Chemicals,
31%
Paints, 12%
Geographic Revenue Breakup (FY21) Industrial
Includes all Products Packaging Products Packaging
69% 31% Construction
Chemicals,
13%
Strong presence in Asia & MENA regions with presence in 10 different countries
outside India FMCG, 29%
14+ recognized brands with over 900 institutional customers globally
Well established in-house R&D team of around 30 people having experience of
more than 15 years
© 2021 Time Technoplast Limited, All Rights Reserved. 5
Global Marquee Customers © 2021 Time Technoplast Limited, All Rights Reserved. 6
Management Team : The Minds Behind
Mr. Anil Jain Mr. Bharat Vageria Mr. Raghupathy Thyagarajan Mr. Naveen Jain
Managing Director Whole Time Director, Finance Whole Time Director, Marketing Whole Time Director, Technical
Degrees in Science, Degree in Commerce and a Degree in Science and Degree in Engineering from
Engineering from Punjab Fellow of Institute of Masters in Business IIT Delhi with over 30 years
University and Business Chartered Accountants (FCA) Administration from Mumbai experience in Production,
Management from Delhi with over 35 years of University with over 30 years Quality Management and
University with over 40 years experience in the Polymer of industrial experience in Projects Management
in the field of Polymer Industry Polymer Products
Technology and Products
3,850
Total Number of
442
No. of foreign
455
No. Professionals
30
Research &
32.5
Median Age
Employees nationals Engineers, CAs, MBAs Development (R&D) (in Years)
© 2021 Time Technoplast Limited, All Rights Reserved. 7
Geographical Presence
Manufacturing Presence in 11 Countries to meet local demand | 20 Manufacturing locations in India
Jammu
Baddi
United States
Pant Nagar
Bahrain INDIA
India Bhuj
Egypt Taiwan Ahmedabad
Ratlam Kolkata
Thailand Panoli
Jambusar
UAE
Daman (U.T)
Saudi Arabia Talasari Silvassa
Vietnam Mumbai Pen
Hyderabad
Malaysia Mahad
Vizag
Hubli
Bengaluru
Indonesia
Gummudipundi
Hosur
Head Office Manufacturing Locations
W E are where O U R C U S T O M E R S are….
Focus on high growth manufacturing geographies
© 2021 Time Technoplast Limited, All Rights Reserved. 8
Innovative and Tech Oriented Products
Industrial Packaging Infrastructure Focus on Innovative & Tech
Innovative Polymer Products
Drums & Containers Jerry Cans Conipack Pails HDPE Pipes DWC Pipes Energy Storage oriented polymer products
Devices
and have several firsts to our
credit-
1st to launch PE drums to
Auto Components and Lifestyle replace steel
Fuel Tanks 1st to launch Tubular Gel
Rain Flaps Mats Batteries
1st to launch Anti-Spray Rain
Flaps
1st Plastic Fuel tanks in CVs
Value Added
Composite IBCs Composite Cylinders MOX Films
Products
1st to launch IBC
1st to launch Composite Gas
cylinders
DEF (Urea) Tanks CNG Cascade CNG (On Board Application) Composite Air Tanks Oxygen Cylinder
Products
Hi-Tech
and more…
© 2021 Time Technoplast Limited, All Rights Reserved. 9
Time to Change
We are at inflection point
Shifting from Tech based products to High-Tech products with
focus on Composites
Composite is a material of future replacing metals in high performance applications
Tectonic shift
Harnessing new growth opportunities in existing business
• Launching new products with huge business potential
• Aspire to be largest Composite product company in the country
• New product launches will help improve margins and reduce working capital
• We draw strength from the launch of LPG Composite Cylinders and maintaining market leadership in 10 years
© 2021 Time Technoplast Limited, All Rights Reserved. 10Emphasis on Composites
Type-IV LPG Composite Cylinders
Second Largest Manufacturer Globally
European Aerospace Technology
1.4 million cylinders per annum – Manufacturing
Innovative options
Domestic/Commercial, PU, Boat and Forklift composite cylinders
Over 10 years of experience, exported to over 42 countries & still growing
Largest Range of LPG cylinders 2kg -22kg
Explosion Proof | Light Weight | Long Shelf Life | No Corrosion | Translucent
© 2021 Time Technoplast Limited, All Rights Reserved. 11New Development : Type-IV CNG Composite Cylinders
Composite Reinforced Shell
Robust due to
PU End Caps
End Boss
Carbon Fiber
Wrapping
Non-permeable liner
Increases Gas 70% Lighter Increases Maintenance Metal free / Corrosion Higher Explosion Proof
Carrying Capacity In Weight Fuel Efficiency Free free In liner Service Life
© 2021 Time Technoplast Limited, All Rights Reserved. 12New CNG Business in consonance with Govt.’s policy to expand use of CNG
CNG Composite Cylinder Applications
CNG Gas Distribution On – Board Applications
Cascades Roof Mounted Bus
Mobile Refueling Units Chassis Mounted Truck
Compressed Bio-Gas Plant CAB Mounted Truck
Gas Generators for Telecom Towers Boat
Car
3 Wheelers / 2 Wheelers
Publication by Ministry of Petroleum and
Natural Gas : Emerging Opportunities in India
for Natural Gas
© 2021 Time Technoplast Limited, All Rights Reserved. 13New Development : CNG Cylinder - Cascade Application
Why Move Steel ?
Move Gas Instead.
70% Lighter
Than Type I Cylinders
Type IV CNG Cylinder Cascades 2.2 Times More Gas
Lighter – Carries 220% More Gas Per Trip
Reduce
Per kg CNG transportation
cost by almost 50%
Type IV CNG Cylinder – Metal Free No Dry Outs
Approved by PESO and Third party (Bureau Veritas – Europe) in August 2020 for Type-IV cylinder for the first time in India.
Current order book position of Rs. 53 Cr. to be executed during FY2022.
© 2021 Time Technoplast Limited, All Rights Reserved. 14New Development : CNG Cylinder - Cascade Application
Carries DOUBLE the quantity of gas Cuts operations cost by HALF
© 2021 Time Technoplast Limited, All Rights Reserved. 15New Development : CNG Cylinder - Mobile Refueling Units (MRUs)
India’s First Mobile Refueling CNG Unit with Type-IV Composite Cylinders
Virtual inauguration on June 8, 2021 by Mr. Dharmendra Pradhan-
Union Minister for Petroleum and Natural Gas
MRUs act as Mobile CNG Stations
Can be parked anywhere for filling
Fills up to 300-400 vehicles per day
© 2021 Time Technoplast Limited, All Rights Reserved. 16New Development : CNG Cylinder - Onboard Applications
Dump Truck Chassis Mounted Truck CAB Mounted Truck Roof Mounted Bus
Boat Car 3 Wheeler 2 Wheeler
Approved by PESO and Third party (Bureau Veritas – Europe) in May 2021 for Type-IV cylinder for the first time in India.
© 2021 Time Technoplast Limited, All Rights Reserved. 17Market Potential : CNG Cascades
New CNG stations allotted in 9th and 10th round 8,181
Number of Cascades required per station 2
Total number of cascades required 16,362
Estimated cost of one cascade (Rs. per cascade) 70,00,000
Total Value of Business in next 8 years (Rs. Cr.) 11,453
Source: Petroleum and Natural Gas Regulatory Board
© 2021 Time Technoplast Limited, All Rights Reserved. 18Market Potential : Mobile Refueling Units (MRUs)
Total existing and committed new CNG stations in India by 2024 7,300
Conversion to MRUs (~30%) 2,200
Estimated cost of one cascade (Rs. per cascade) 60,00,000
Total Value of Business in next 4 years (Rs. Cr.) 1,320
Source: Ministry of Petroleum and Natural Gas- Emerging
Opportunities in India
© 2021 Time Technoplast Limited, All Rights Reserved. 19Market Potential : Compressed Bio-Gas (CBG)
Total CBG plants by 2023 5,000
Number of Cascades required per plant 2
Total number of cascades 10,000
Estimated cost of one cascade (Rs. per cascade) 60,00,000
Total Value of Business in next 3 years (Rs. Cr.) 6,000
Source: Ministry of Petroleum and Natural Gas- Emerging Opportunities in India
© 2021 Time Technoplast Limited, All Rights Reserved. 20Market Potential : Gas Generators for Telecom Towers
Towers- 20% of existing Telecom Towers use gas generators(~1.8 lakhs towers) 32,000
MRUs required (1 MRU for every 4 towers) 8,000
Estimated cost of one cascade (Rs. per cascade) 60,00,000
Total Value of Business in next 4 years (Rs. Cr.) 4,800
Source: Ministry of Petroleum and Natural Gas- Emerging Opportunities in India
© 2021 Time Technoplast Limited, All Rights Reserved. 21Market Potential : Onboard Applications - Intercity Bus
No. of buses on road by 2024 2,10,000
Buses converted to CNG (~40% conversion) 85,000
No. of cylinders per Bus 8
Total No. of Cylinders required 6,80,000
Estimated Cost of 156 litre cylinder (Rs. per cylinder) 78,000
Total Estimated value of Business in next 4 years (Rs. Cr.) 5,304
Source: Ministry of Petroleum and Natural Gas- Emerging Opportunities in India
Focus on Buses; to be followed by commercial vehicles (new & conversion) and passenger vehicles.
© 2021 Time Technoplast Limited, All Rights Reserved. 22CNG Cylinder : Overall Market Potential
Huge revenue potential given India’s low penetration of CNG fuel stations and CNG vehicles
Estimated Total Estimated
Total Estimated Business in
Market Per Year Conversion % Business (Type-IV)
Business (Rs. Cr.) No. of Years
(Rs. Cr.) per year (Rs. Cr.)
CNG Cascades 11,453 8 1,432 716
50%
MRUs 1,320 4 330 165
50%
Compressed Bio Gas 6,000 3 2,000 400
20%
Gas Generators for Telecom
4,800 4 1,200 240
Towers 20%
CNG for Intracity Buses 5,304 4 1,326 663
50%
Total Estimated value of
28,877 6,288 ~2,200
Business
Focus on buses; Commercial vehicles and passenger cars, estimated to have equal or more potential
Business from commercial vehicles and passenger cars not factored
© 2021 Time Technoplast Limited, All Rights Reserved. 23Next Exciting Emerging Opportunities in Composites
Oxygen Cylinder Composite Air Tanks Hydrogen Cylinder Composite Water Heater
for Fuel Cells
Carbon Fibre Reinforced Air Tank for commercial Type-IV Carbon wrapped Made with HDPE inner liner
Composite Cylinder Type-III vehicles air brake system cylinders & glass fibre composite outer
for Oxygen winding retains heat for
Impact resistant and light Light weight (90% weight longer time.
Feather weight (80% lighter) weight (75% less) reduction) - provides better
and portable fuel economy and better Life Time Warranty
Corrosion proof and payload
Medical grade oxygen extremely durable Light weight (70% less), not
Reliable and safe prone to leakages, longer life,
Application: Home Oxygen no denting, no scratches,
Therapy, healthcare Applications – Hydrogen corrosion free, no smelly
institutions. Cars, power generation water and less power
(Towers) consumption
© 2021 Time Technoplast Limited, All Rights Reserved. 24Company Updates
02
& Strategic Outlook
© 2021 Time Technoplast Limited, All Rights Reserved. 25What We Have Achieved
Achieved scale, low revenue Achieved revenue of ₹3,009 Cr. Strategic partners worldwide for Increasing popularity of IBCs due
volatility (9% CAGR – 10 y) (USD 412 mn) and PAT of ₹103 Cr. global chemical cos (across 11 to cost effectiveness and better
(USD 14 mn) in FY21. countries) handling
Leading Global Industrial
packaging company ; - World’s largest No single customer accounting for HDPE pipes with invested
Market leader in India (60% share) manufacturer of big size more than 5% of revenues. capacities, revenues to ramp-up
plastic drums with execution of strong order
Amongst top 600 BSE companies Over 900 customers for industrial book.
(Market cap) - World’s second largest packaging globally
composite cylinder LPG Composite cylinder business
Market leader in 9 out of 11 manufacturer Long standing relationship of over
countries 25 years with customers Strong opportunities for Hi-tech
- World’s third largest IBC based new products. (Type-IV CNG
Expanding operations in world’s manufacturer Operations are de-risked with composite cylinders and more…)
largest market - USA plants located at 20 locations in
Major player in HDPE pipe India and 10 countries overseas
manufacturing in India - Infra
Second largest MOX film player in
India
GROWTH SCALE OF OPERATIONS CORE BUSINESS FUTURE GROWTH SEGMENTS
© 2021 Time Technoplast Limited, All Rights Reserved. 26How We Achieved It
1 2 3 4
Professional and
Thrust on innovation Growth funded from Company is at Inflection
experienced promoters,
Focus on innovation leading Internal accruals point.
management team along
to introduction of new Raised equity capital only Moving from Tech towards
with established inhouse
products and many more in once after listing (7.6% High Tech futuristic
R&D team of around 30
pipeline dilution in FY17) business (composites)
people
© 2021 Time Technoplast Limited, All Rights Reserved. 27What We Have Missed
Economies of scale Working capital days Consolidation of Business
ROCEs have remained below our target Working capital days have increased in Consolidation of business and disposal
of 20%, implying that we haven’t last few years due to weak economic of non-core business/ assets owned by
realized full economies of scale in India growth, regulatory changes and certain company and promoters.
and Overseas. Not tapped global Black Swan events.
opportunities fully.
© 2021 Time Technoplast Limited, All Rights Reserved. 28Key Priorities For Next Few Years
Maintain Growth
Remove Promoters’
Momentum Of The Past Improve ROCE and
Enhance Investor Pledge Of Shares and
(tapping huge Enhance Shareholders
Interaction Disposal of non-core
potential in Hi-tech Value
business/ assets
business)
1 2 3 4
© 2021 Time Technoplast Limited, All Rights Reserved. 29Maintain Growth Momentum Of The Past
Our aim is to become a Rs. 5000+ Cr. company by Fiscal 25
Core Business- Industrial Packaging
Huge growth opportunities for global industrial packaging market
Projected to grow from USD 58.8 Bn in 2020 to USD 72.6 Bn by 2025 (4.3% CAGR)
Chemicals, Pharmaceuticals , Food & Beverages etc. expected to grow significantly.
Shift of chemical manufacturing base from China to India and other Asian countries, significant growth
opportunity.
Intermediate Bulk Containers (IBC’s) gaining popularity due to cost effectiveness, easier handling and
emphasis on sustainability.
Faster replacement from metal to polymer and composite products due to substantial increase in steel
prices.
Huge potential market of around Rs. 2,200 Cr. per year for CNG cascades and CNG onboard applications aided by
government thrust (Lower import bill and commitment for climate change).
Government focused spend on Infra projects and development of smart cities (HDPE pipe business to contribute
going forward).
© 2021 Time Technoplast Limited, All Rights Reserved. 30Improve ROCE and Enhance Shareholders Value
ROCE (%)
19.5%
15.7% 16.0%
13.4% 13.5%
9.1%
FY18 FY19 FY20* FY21* FY22E FY25E^
Commitment
*Operations were impacted due to Covid-19
^Business from CNG composites and other Hi-tech products not factored
Target to improve the current ROCE of 13.4% in FY20 to ~20% over the next 4 years by:
- Increasing the share of high margin Value Added Products
- Reduce Working Capital Cycle
- Dispose off non-core business/ assets
© 2021 Time Technoplast Limited, All Rights Reserved. 31Improve share of Value Added Products
₹2,128 Cr. ₹297 Cr.
FY16 ₹2,425 Cr.
88% 12%
₹2,413 Cr. ₹596 Cr.
FY21 ₹3,009 Cr.
80% 20%
₹4,078 Cr. ₹1,169 Cr.
FY25E^ ₹5,247 Cr. Commitment
78% 22%
EBITDA Margin 14% 20%
Established Products Value Added Products
Industrial Packaging, PE pipes, Energy IBC, Composite cylinder, MOX films
storage devices, Auto Products
^Business from CNG composites and other Hi-tech products not factored
© 2021 Time Technoplast Limited, All Rights Reserved. 32Reduce Working Capital Intensity
Inventory Days Debtor Days Creditor Days Net Working Capital Days
131
99
90 88 94
86
75 75 80
70 71 70
84
67 67 69 67 60
51 48 48 50
45 41
FY18 FY19 FY20* FY21* FY22E FY25E^
Commitment
*Operations were impacted due to Covid-19
^Business from CNG composites and other Hi-tech products not factored
Work on all three fronts of reducing debtors and inventory while negotiating longer payment terms with creditor. Monitor improvement in
trends every six months
- Debtors: Use bill discounting, negotiate lower payment terms. Also low credit period offered in value added products.
- Inventory: Increase domestic sourcing, reduce inventory requirement with price risk to pass on to customers
- Creditors: Negotiate longer payment terms
© 2021 Time Technoplast Limited, All Rights Reserved. 33Dispose of Non Core Business/ Assets
Focusing on core business and dispose of non-core business/ assets
- Management has decided to exit from non-core business of Medical equipments, furniture
business and Battery division
- Accordingly ‘Assets held for sale’ of Rs. 60 Cr., other than Battery division.
Classified in Balance sheet for FY21 that includes
o Unused land and building
o Molds and tools related to medical business
o Molds and tools related to furniture division
© 2021 Time Technoplast Limited, All Rights Reserved. 34Capital Allocation Roadmap: Time To Reward Shareholders
Fund Flow (₹ Cr.) FY22-25E
Internal cash generation remains strong, strengthened with low
leverage
Atmanirbhar (self-sufficient): No need for external sources of
Profit after tax 1,235
funds
Increase in net debt -
Target net debt to equity: To maintain in the range of 0.1-0.4x,
Source of funds 1,235 assuming net debt is maintained at current levels in absolute
number, leverage would come below 0.3x
Increase in net fixed assets 105 Capex: Average gross capex of ₹175 Cr./ year less depreciation of
Increase in net current assets 230 ₹150 Cr. results in increase of ~₹100 Cr. of non-current assets over
Repayment of debt 195 4 years.
Large capacity to increase dividend payouts or buy-back shares as
Application of funds 530
plans for reduction in working capital take shape
Surplus for dividend payment / Share buy-
back/ Development of new products/ 705 Projected surplus cash of ~₹700 Cr.
Reduction of debt
© 2021 Time Technoplast Limited, All Rights Reserved. 35Other Key Priorities
Remove promoters’ pledge of shares Enhance investor interaction
Reduction in shares pledged Appointed an Investor Relation Agency and a
- It has reduced from 17.8% of Paid-Up Capital dedicated in-house Investor relation team
to only 4.2%. - To increase visibility through attending
Aim to make the promoter holding pledge free at international and domestic conferences
the earliest possible time - To Organize annual investor and analyst
meet regularly
- To facilitate plant visits
© 2021 Time Technoplast Limited, All Rights Reserved. 3603 Financial Overview © 2021 Time Technoplast Limited, All Rights Reserved. 37
Strong Revenue Growth and Stable EBITDA Margin
Revenue (₹ Cr.) EBITDA Margin (%)
CAGR 8%
5,247
3,567 3,580 3,630
3,105 3,009
15.3% 15.5%
14.8% 14.5%
14.0%
13.0%
FY18 FY19 FY20* FY21* FY22E FY25E^
*Operations were impacted due to Covid-19
^Business from CNG composites and other Hi-tech products not factored Commitment
© 2021 Time Technoplast Limited, All Rights Reserved. 38Continued Strong Financial Risk Profile
Interest Coverage Ratio (Times) Total Outside Liabilities / Total Equity (Times)
>8.00
5.61 0.90 0.87
5.43 5.34 0.80
4.63 0.69 0.65
4.00 15%
13.1% 10.3%
10.0%Way Forward
Chemical production shifting IBCs growing faster
Time is the largest and major player
from China to other Asian in most countries it operates in
countries
Recycling efforts to Polymer and Composite
encourage sustainability products to gain share from
metals
© 2021 Time Technoplast Limited, All Rights Reserved. 40Thank You
Questions & Answers
© 2021 Time Technoplast Limited, All Rights Reserved.
“Time Technoplast” and The Time Technoplast Logo are trademarks of Time Technoplast Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during
an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and
company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.Safe Harbour
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as
"will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future",
"objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements",
These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our
growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections,
our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
© 2021 Time Technoplast Limited, All Rights Reserved. 42Global Chemical Industry
2019 Chemical Sales By Country: Top 10
1,488
Chemical Sales (€ billion)
For the year 2019, World chemical sales (excluding
543 504 pharmaceuticals) stood at €3,669 Bn registering a
168 119 92 76 74
growth of 4.1% from €3,525 Bn in 2018.
65 49
China EU27 USA Japan South India Taiwan Russia Brazil Saudi
Korea Arabia
2019 Chemical Share (%) By Country: Top 10
40.6
14.8
China dominates the world chemical market while India
13.8
holds its position as 6th largest.
Share (%)
4.6 3.2
2.1 1.8 2.5 2.0 1.3
EU27 USA Japan Taiwan Brazil South India Russia Saudi China
Korea Arabia
Source: Cefic Chemdata International 2020
© 2021 Time Technoplast Limited, All Rights Reserved. 43You can also read
