www.kei-ind.

com

KEI INDUSTRIES LIMITED

Structure

Major Highlights

About Us

Key Strengths

Industry Prospects

Growth Drivers

Business Overview

Future Outlook

Financials

Share Holding Pattern

 Major Highlights
 ET 500 dt 28.11.16 KEI ranking improve to 405 against previous ranking
423 and before that 469
 CARE Ltd has upgraded long term rating A- (A minus) from BBB+ and short term
rating A2+ from A3+
 ICRA Ltd has assigned long term rating A- (A minus) and short term rating A2+
 During FY16-17 Growth in Turnover 15%, In PAT 59% over corresponding period
last year
 Cable division Growth 12% in value and approx.15% in Volume
 Strong Order Book of Rs. 2783 Crores – EPC Rs. 1817 Crore, EPC Substation Rs. 177
Cr, Cable Rs. 789 Crore in which Export Rs. 128 Crore
 Insurance of Receivables to mitigate risk
 Improvement in Order Book to lead to increase in turnover and Profitability.


 Major Highlights
 Healthy Brand Visibility – TV Advt, IPL, Customer Loyalty and Preferences.
 Diversified business profile across customers, industries and manufacturing
locations.
 Increase focus on Exports, Retail segments and EHV to support expected
improvement in turnover, profitability as well as working capital.
 Very Strong relationship with banks.

 Highly committed promoters and management.

About Us
 Diversified and de-risked business model across :
 Headquarters at New Delhi, India.
 Markets: Domestic & International
 Manufacturing facilities at Bhiwadi (Rajasthan),
 Segments: Institutional & Retail
Chopanki (Rajasthan) & Silvassa (D & NH)
 Sectors: Private & Public
 More than 1000 employees, 290 workers & 2100
contract labour across the Country  Established presence in the EHV, MV & LV cables
coupled with retail wires and cables
 KEI Industries Limited is engaged in the business of
manufacturing and marketing of EHV, MV and LV  Established presence in the EPC in T&D
power cables  Listed at BSE, NSE & CSE also listed Overseas at
 Ventured into Engineering, Procurement and Luxembourg Stock Exchange
Construction (EPC)  Market Capitalization of Rs.1700 Crores .
 Ranked amongst the top three cable  Net Sales of Rs. 2669 in FY2016-17 against Rs.
manufacturing companies in India 2326 Crores in FY 2016.
 ISO 9001:2000 , ISO 9001:2008, OHSAS  EBIDTA of 10.67%(Rs.285 Cr) in FY 2016-17
18001:2007, OHSAS 14001:2004 certified against 10.65% (Rs. 248 Cr) .
company
 ROE 23% and ROCE 25% in FY 2016-17.
Milestones

1968 : Established as a partnership firm 1997 : Added another Plant at Bhiwadi for
1968 : Commenced manufacture of switch PVC /XLPE- LT power cables
board cables for DOT 2001 : Commenced manufacturing of rubber
1985 : Commenced the manufacture of cables upto 11 kV
Control, Instrumentation and 2002 : Established JFTC Plant at Silvassa
Thermocouple Cables
2004 : Converted JFTC Plant at Silvassa into
1992 : Partnership firm converted into Public manufacturing of existing range of
Limited Company cables – rebalancing act`
1993 : Added manufacturing of PVC/XLPE 2005 : Issued GDR of USD 10 million
Power cables up to 3.3 KV
2006 : Added new project for manufacturing
1994 : Diversified into stainless steel 33 kV HT cables
drawings with pilot plant
2006 : Implemented ERP Baan S/W system in
1995 : Issued first IPO. Became Listed Co. the organization to ensure
1996 : Installed major SSW plant at Bhiwadi. transparency and efficiency
2006 : Issued FCCB of USD 36 million
Milestones

2010 : Proud recipient of Business Super

2007 : Commenced New Project at Chopanki brand Award for Industry Validated
and modernization / expansion at
2011 : Certification of ISO 9001:2008, OHSAS
Bhiwadi & Silvassa unit
18001:2007, OHSAS 14001:2004
2007 : Received prestigious Corporate
2011 : Receipt of EHV cable order from KPTCL
Governance Rating
worth Rs75 Crores
2008 : Successfully commissioned 100% EOU
2011: Successful redemption of FCCBs in
at Chopanki for LT power cables
November.
2009 : Successfully completed the up
gradation of HT cable capacity at 2012: Receipt of EHV order of Rs.138 crores
Bhiwadi & Chopanki up to 66 kV from UPRNL
2010 : Technical Know - how Agreement with 2012: Proud recipient of Super Brand status
BRUGG KABEL A.G., Switzerland for for consumer validated
EHV cables ranging from 66kV to
2013-14: New office at Singapore, Nigeria,
220kV
Kazakhstan.
2010 : Commercial Production of EHV
2014-15 Strengthened Retail Network
cables ranging from 66kV to 220 kV
2015-16 EPC contract for Sub Station of 220KV
2016-17 EHV upto 400 KV Commissioned
 Key Strengths
1. Wide product basket comprising:
 Extra High Voltage cables up to & including 400 kV
 High & Medium Voltage cables
 Low Tension cables
 Control and instrumentation cables
 Specialty cables
 Rubber cables
 Winding, Flexibles and house wires
 Submersible cables,
 OVC/poly wrapped winding wires
 Stainless steel wires
 Engineering, Procurement and Construction (EPC)
Helping the company service a wide spectrum of sectors such as power, oil refineries,
railways, automobiles, cement, steel, fertilizers, textile and real estate, amongst others
 Key Strengths : Bhiwadi Unit
2. Manufacturing prowess evident from:
 World-class manufacturing facilities at Bhiwadi (Raj.), Silvassa (D&N H) and Chopanki (Raj.)

CCV Line (Involving Dry Cure Dry Cool technology) For manufacturing HT Cables Up to 132 kV

Sikora Online X-Ray Machine Used for Monitoring Product Quality

Key Strengths: Chopanki Unit

Troester’s CCV Line (Involving Dry Cure Dry Cool technology) For manufacturing EHV Cables Up to 220 kV

In-house Testing Facilities for Testing EHV Cables

 Key Strengths
• Equipped with an installed capacity of:
• 900 kms of EHV Cables
• 7500 kms of HT Cables
• 84000 kms of LT Cables
• 3600 Kms of Rubber Cable
• 677000 km of Winding, Flexibles & House Wires
• 6000 MT of Stainless Steel Wire
• During 2016-17 Capacity was utilized in Cable division @77%, in House wire @ 50 % of increased
capacity of wire and SS division @84%.

• Strategically located manufacturing facilities at Bhiwadi, Chopanki and Silvassa results in servicing
Institutional clients efficiently across the country
 Key Strengths
3. Commitment to quality
 Adherence to the most stringent quality standards laid down by

Vindicating the KEI’s superior production process, technology and quality products

4. Strong research capabilities

• Constantly enhancing product portfolio by investing in R&D
• Results in niche product offerings
• Ability to customize solutions for clients
• Expertise to manufacture specialty cables including braided cables, fire survival and zero halogen
cables
 Key Strengths
5. Climbing up the value spectrum

 Commercial Production of EHV cable & 400 KV Cable under trial production

 Result in pre-qualifying KEI to participate in large utility tenders

 Firm impetus to its turnkey EPC business, which consumes significant portion of EHV cables & HT , LT
Cable

 Backward integration through in house PVC/XLPE Compound Manufacturing

6. Establishing presence in the retail segment

 Building awareness as a brand in house wires

 Embarked upon aggressive marketing through various brand promotion activities through various
communication channels

 KEI aims to dominate retail trade with visibility & presence

Key Strengths

7. Well entrenched distribution network

The sales & distribution network at
KEI covers all major metros, Tier I &
Tier II cities to serve its esteemed
customers
Strong Order Book Position of
Rs. 2783 Crore
Key Strengths

8. Growing presence in exports

Established extensive international
footprints across 45 countries

Strong order book for exports of Rs.

128 Crore
 Industry Prospects

• Global cable market reached USD 176 billion in 2013 demonstrating a CAGR of 4.7% from 2003 to 2013

• Cable market in India was estimated at USD 3 billion in 2013, increasing at a CAGR of over 10%

• Size of High Voltage cable > 132 kV is estimated at USD 300 million

• Size of MV cable(11kV to 66kV ) and LV cable is estimated at USD 900 million & USD 1.8 billion respectively

• Size of house / building wires is conservatively estimated at USD 800 million Planned addition in 12th five
year plan - Generation capacity of 78,700 MV

• Target of 85,000 MV capacity addition in 12th five year plan

• Distribution Targets include electrification of 100,00 villages

Industry Prospects
Indian Power Sector Industrial Expansion
• Additional capacity of 85000 MV of Power • 6-8% GDP growth momentum encouraging large
capacities required in next 6 yrs investments in Industrial Sector
• Major policy investment initiative to achieve this • Major expansion in Sectors like Steel, Cement,
growth Oil & Gas, Energy, Automobiles
• Thrust on Non-conventional energy like Wind
Power, Solar
Infrastructure, Housing
• Total Investments of over USD 165 billion in
Generation, Transmission & Distribution • Major investments planned in Highways, Ports,
Airports
• Additional Cable Demand of USD 9 billion from
this sector likely in next 6 yrs • SEZs
• Rapid growth in Housing, IT Parks, Hotels,
Shopping Malls, BPOs

Strong growth prospects for Cable demand in the Country

Industry Prospects
Growth Drivers

Power & Infrastructure

 Infrastructure spending estimated at USD 1 trillion in the next five years
 Estimated FDI in Infrastructure sector is USD 250 billion while USD 750 billion is expected to be
mobilized locally
 Demand for cables estimated at USD 3 billion (including EHV, MV and LV cables) used for
transmission and distribution purposes

EPC
 EPC industry is projected to be a multi-billion-dollar industry
 On the threshold of exponential growth due to gigantic scale of infrastructure opportunities
 Industry estimates suggest, for every rupee invested in power generation capacity, almost 60% is
invested in equipment and EPC work
 Consumption of cables in turkey EPC power project account for nearly 70% of the total project cost
Growth Drivers
Industry
 Cables forms an integral part of every industrial capex
 Cable requirement accrues only after 50% of the industrial project is complete
 Demands are picking up with gradual recovery in expansion plans

Building & Construction

 Demand for Urban Premium housing set to grow to Rs 757 billion in FY 20 from Rs 116 billion in FY
09
 IT/ITES and BFSI sectors will lead to increased net absorption of office space
 Office space forecasted to grow at a CAGR of 29.5% from 19.6 million sq ft in 2009 to 42.6 million
sq ft in 2013
 Demand for wires is expected to register a CAGR of 13% over the next 7-8 years
Business Overview

Retail

EPC

KEI Institutional

EHV

Exports
 Business Overview
I. Institutional

• Presence in this segment is marked by:

• Ability to offer multi-products, with a multi-location presence
• Well-entrenched marketing presence across all states
• Ability to deliver products fast across the country from plants in North and West
• Servicing customers flawlessly

• Building specialised offerings to tap niche segments such as shipping sector, oil and petroleum and solar
plants even more aggressively

• Tapping large realty brands

• Strengthening all-India presence by embarking on opening new warehouses across the country
 Business Overview
• Servicing prestigious clients across diverse sectors evident from:

Power Sector Clients

Industrial Clients
 Business Overview
• Servicing prestigious clients across diverse sectors evident from:

Refineries

Energy Sector
 Business Overview
• Servicing prestigious clients across diverse sectors evident from:

Fertilizer Sector

Steel Sector
 Business Overview
1. Foray into EPC space
• Commenced execution of EPC contracts
• The main services offered by the company in the EPC segment includes execution of:

Power
transmission Electrical
Electrical
projects of 66kV EPC of EHV & HV balance of plant
industrial
to 400kV cables systems system for
projects
substations on power plant
turnkey basis
Business Overview
• The company’s key strengths in the EPC • Collaborations with Woosun Electric Co., Korea
segment include: for power projects and Cobra Engineers, Spain
for substation execution

• Executing projects for some of the biggest

• In house execution capabilities names in the industry:

• Ability to manufacture own EHV

cable / HV cable (which accounts for
nearly 70% of its EPC project value)

• Offer the entire range of products

instrumentation cable, control cable
and power cable

• Strong marketing infrastructure and

regional offices across all major cities
in India
 Business Overview
• Servicing both the government and the private sectors

• Average gestation period of such projects can range from 4 to 24 months

• Aims to foray into other sectors like transmission line, infrastructure projects in the area of SEZ,
MRT/Airport, EPC of cement plants, power plant and steel plant in the next 2-3 years

• Key projects executed include:

• EPC of HV Cablings system for JVVNL, Jaipur

• MES for 100kV Transform and Electrical System of Air Force station, Gurgaon

• Projects for power transmission utilities including projects for MSETCL, KSEB, TNEB, RVPNL

• Projects for Reliance Infrastructure (400kV switchyard for 2x600 mw Thermal Power Project at Hissar

• Industrial sector for AERENR, Ludhiana

• Private utilities like Reliance, Tata Etc

• RAPDRP/DDUGY Project at Mathura , Vrindavan

 Business Overview
2. Strengthening EHV segment presence

• New Line of 400 kV started in January 2017 at Chopanki Plant.

• With commercial production, KEI is only third company in India to manufacture EHV cables

• The demand for EHV cables in the country has so far been met through imports

• Executed order of KPTCL worth Rs75 Crores.

• Executed order of Rs.138 crore of Uttar Pradesh Rajkiya nirman Nigam Ltd.
• Executed 220 KV EHV Project of Rs. 65 Crore of DMRC
• Executed 220 KV EHV Project of Rs. 40 Crore of PGICL
 Business Overview
• Foray into the EHV segment is aided by the KEI’s Technological collaboration entered into with
Switzerland-based M/s Brugg Kabel AG

• Brugg enjoys over 100 years of experience and ability to manufacture cables up to 550 kV

• Collaboration has enabled KEI a faster entry into the EHV cable market with designs, process back-up –
services which are sought by end users

• End-users of EHV cables includes transmission companies, mega power plants, metro cities, industries
such as steel, cement, refineries, petrochemicals, large realty projects such as IT Parks, large residential
complexes, etc

• Presently more than Rs. 229 Crore orders of EHV Cable including Accessories and Erection &
Commissioning is pending
 Business Overview
II. Retail – domestic wires

• Phenomenal progress achieved by the company in the last 4 years

• Developed a strong reputation as the “power behind the power”

• Established a clear positioning of a “specialist cable manufacturer”

• The three pillars of trust & quality, brand awareness & customer service have resulted in robust growth

• Added more than 221 New Dealer/ Distributor in the current financial year. Total 1147 Dealer’s
network as on March 2017.

• Focused efforts and aggressive brand building initiatives have lead to increased house wire sales

• Product and quality offering, specialist positioning and brand enhancing activities and strengthening
of the distribution and dealership network leading to sales growth in FY16-17.
 Business Overview
III. Exports

• Presence in over 45 countries across the globe with focus on the oil & gas and utilities segment

• Offers wide range of cables viz. EHV (66kV to 400kV), MV (11kV to 33kV) and LV (< 11kV) cables

• Competitive pricing and ability to offer customised solutions and speciality cables

• Export market is expected to at grow at rapid pace with opening of new branch offices

• Strengthened prequalification parameters and achieved approvals for large projects with local
companies in Middle East & South Africa

• Part of various international exhibitions to establish new linkages and showcasing strong commitment
to grow presence in the overseas market

• New office opened in Singapore, Nigeria, Kazakistan apart from existing office in Dubai/Abudhabi

• And presence in Korea and Australia through Agent & Recently opened Subsidiary Co. in Australia

• Strong order book of Rs. 128 Crore of Export

 Future Outlook

New Presence across Enhanced Turnkey

Industrial complete range of capacities EPC
cable cables up to 400kV solutions

Widest range of Focused approach Key Experienced

power & in its domestic technological & trusted
instrumentation house wires and tie-ups with brand name
EHV segment Brugg Kabel
cables
A.G.

Delivering growth
 Financials
Rs. In Crores

FY 11 FY 12 FY 13 FY 14 FY15 FY16 FY 17
Gross
1,254 1,853 1,812 1,753 2171 2498 2835
Revenues
PBDIT 93 152 173 154 197 248 285
PBT 18 36 43 22 53 95 134
PAT 11 24 26 12 34 62 99
Net Fixed
312 318 311 314 302 357 409
Assets
Net Worth 238 227 256 273 304 367 473
Total Debt 471 465 509 433 446 573
Buyer
17 9 2 20 52 140
Credit
ROCE (%) 12 19 21 18 22 27 25
ROE (%) 4 11 12 5 13 19 23
Financials
Rs. In Crores

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(15-16) (15-16) (15-16) (15-16) (16-17) (16-17) (16-17) (16-17)
Revenues
560 657 601 681 598 676 766 795
Gross
PBDIT 56 59 62 70 57 69 78 81
PBT 17 23 23 33 24 30 37 43
PAT 12 15 15 20 17 23 27 32
Financials
Rs. In Crores

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net Sales
(15-16) (15-16) (15-16) (15-16) (16-17) (16-17) (16-17) (16-17)
Domestic 298 387 356 373 302 326 429 426
Dealer 174 167 175 205 175 206 183 248
Export 47 58 28 58 84 103 116 72
Total 519 612 559 636 561 635 728 746
Product wise
LT Cable 221 238 229 275 256 293 330 352
HT Cable 82 124 121 108 81 103 98 99
EHV 32 41 20 41 17 16 32 36
HW,WW 96 93 85 103 98 103 101 127
SS Wire 25 25 22 22 24 25 26 29
EPC other
63 91 82 87 85 95 141 103
Than Cable
Total 519 612 559 636 561 635 728 746
 Financials
Rs. In Crores
Revenues PBDIT
3000 2835 285
2498 300
2500 248
2171 250
2000 1853 1812 197
1753 173
200
152 154
1500
150
1000
100
500
50
0
0
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

PBT PAT
99
150 134
100
95 80 62
100
60
53 34
36 43 40 24 26
50 22 12
20
0 0
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
Financials
Productwise Net Sales Rs. In Crores
101
424

104 EHV

LT POWER/
RUBBER
HT CABLE
428 1232
HW/WW

SSW

380
Revenue Mix
14%
Export
Retail
Institutional

56% 30%
Financials
Rs. In Crores
Net Fixed Assets Net worth
500 473
408 500
400 357 450
318 311 314 400 367
302
300 350 304
256 273
300
227
200 250
200
100 150
100
0 50
2012 2013 2014 2015 2016 2017 0
2012 2013 2014 2015 2016 2017
Debt
32
140
349 Bank Borrowing
Term Loan
Buyer's Credit
192
Others
Future Growth Driver

 F.Y. 2017-18 Additional turnover of approx Rs. 125-150 Crore from Retail
market, approx. Rs. 250-300 Crore from EPC & Rs. 100-150 Cr from EHV
Cable apart from normal growth in existing range of cable.
 Expansion of House Wire and Flexi Wire for Retail & Distributor
completed
 Expansion of EHV Cable up to 400 Kv completed in Jan 2017
 Expansion in Existing Product Range : LT & HT Cable completed
 Expansion of Dealer/ Distributor in a big way.
 Expansion of Export market in a big way.
Shareholding Pattern
% Shareholding

25.4%

Promoter
46.6%
Institutions

Bodies Corporate

5.0% Indian Public

23.0%
www.kei-ind.com

Thank You !