Chrome Ore Market India Chrome Ore Market – India April 2013
Executive Summary Market
Chrome ore finds extensive application in the production of ferro chrome which in turn is used in the production of steel India is the x largest producer of chrome ore and the y largest exporter of chrome ore in the world
Di Drivers
Drivers & Challenges
Industry Regulations
Challenges h ll
• Robust Metallurgical Industry • Growing Refractory Industry • Well Established Foundry Industry • Expanding Chemical Sector d h l • Healthy Economic Outlook
• Environmental Concerns • Low Chrome Ore Resources
Chrome Ore Export Regulation Specifications Of Exportable Grades Friable Chrome Ore Specifications Of Chrome Concentrates Specifications Of Lumpy Chrome Ore Chromite – Trade Policy Major Players
Competition
Player A
Player B
Player C Player C
Player D Player D
Player E
Player F
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• Macro Economic Indicators • Introduction • Market Overview Market Overview • Chrome Ore Price Trend • Chrome Ore Reserves • Chrome Ore Exploration Activities Ch O E l ti A ti iti • Chrome Ore Mine Allocation • Export Import • Chrome Ore Specifications • Drivers and Challenges • Industry Regulations Industry Regulations • Recent Developments • Competitive Landscape • Strategic Initiatives St t i I iti ti • Appendix CHROME ORE MARKET IN INDIA 2013.PPT
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Macro Economic Indicators (1/3) GDP at Factor Cost: X INR tn 14
x1 y1
12
z1
x2 y2 z2
11
k1
k2
13
y4 z4
y3 z3
k4
k3
10 Q ‐
Q‐ 20‐‐
Q‐ 20‐‐
20‐‐
Q‐
20‐‐
Inflation Rate: Y % 1.0
x1
x3
08 0.8 0.6
x2
x4
x5
20‐‐
20‐‐
0.4 0.2 0.0
20‐‐
20‐‐
20‐‐
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India needs a progressive market development strategy and technological competitiveness to ensure market growth Chrome Ore Production (1/2) Z%
mn tonnes x1 5
x4
x2 4
x5
x6
20‐‐
20‐‐e
x7
x8
x9
x10
x3 3 2 1 0
20‐‐
20‐‐
20‐‐
20‐‐
20‐‐e
20‐‐e
20‐‐e
20‐‐e
• India is the x largest producer of chrome ore and the y largest exporter of chrome ore in the world • Growing demand for chrome ore in the X coupled with shortages occurring in supplies of Country A and Country B ore due to increased consumption in Country C ferro alloy industry provides a major growth opportunity to the Indian due to increased consumption in Country C ferro alloy industry provides a major growth opportunity to the Indian chrome ore market
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Total chrome ore reserves in India is x million tonnes of which y million tonnes are under z category Chrome Ore Reserves / Resources ( tonnes ) Grades
Reserves
Remaining Resources
Total Resources
Grade A
‐
‐
‐
Grade B
‐
‐
‐
Grade C
‐
‐
‐
Grade D
‐
‐
‐
G d E Grade E
‐
‐
‐
Grade F
‐
‐
‐
Grade G
‐
‐
‐
Grade H Grade H
‐
‐
‐
x1 G d A Grade A
x2
Grade B Grade C Grade D
x5
Grade E Grade E
• Point 1 • Point 2 • Point 3 • Point 4
x4 x3 CHROME ORE MARKET IN INDIA 2013.PPT
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Indian chrome ore exports have witnessed a steady decline over the last four years Exports
Exports (Value and Volume)
• Point 1 • Point 2 • Point 3
INR bn
Value 10 5
2,000
x2 y1
1,000
x3
y2
yy3 20‐‐
1,500
x4
0
20‐‐
20‐‐
500
y4
0
20‐‐
Segmentation – Volume (20‐‐)
Segmentation – Value (20‐‐) x1 x2 x3
‘000 tonnes
Volume
x1
Country A Country B
x1 x3
Country A Country B Country C
Country C Country D
x2
x4
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Drivers & Challenges – Summary
Drivers Robust Metallurgical Industry
Challenges
Growing Refractory Industry
Environmental Concerns
Well Established Foundry Industry
Low Chrome Ore Resources
Expanding Chemical Sector Healthy Economic Outlook
CHROME ORE MARKET IN INDIA 2013.PPT
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Growing metallurgical industry will lead to higher demand for ferro alloys.. Robust Metallurgical Industry (1/3)
Impact
• Finding 1 • Finding 2 • Finding 3 • Finding 4
Ferrro‐chrome Demand Historical Demand
Forecasted Demand
mn tonnes Z%
1.2 1.0
A
mn tonnes x4
x1 x2
0.8
x3
2.0
Z%
1.5
1.06
0.6
1.16
0.0
1 41 1.41
53%
1.73 53%
53%
53%
53%
47%
47%
47%
47%
47%
47%
20‐‐
20‐‐
20‐‐
20‐‐
20‐‐
20‐‐
0.5
02 0.2
1.28
1.57
53%
1.0
0.4
B
0.0
20‐‐
20‐‐
20‐‐
20‐‐
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Industry Regulations – Summary
SAMPLE
Chrome Ore Export Regulation
Specifications Of Exportable Grades Friable Chrome Ore
Key ` Regulations
Specifications Of Chrome Concentrates
Specifications Of Lumpy Chrome Ore
Chromite – Trade Policy
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Competitive Benchmarking (1/5) Public Trading Comparables (FY 20‐‐) Company 1
Company 2
Company 3
Company 4
Market Capitalization (INR mn)
‐
‐
‐
‐
Share Price (INR)
‐
‐
‐
‐
EV/EBITDA (x)
‐
‐
‐
‐
EV/Revenue (x) /
‐
‐
‐
‐
PE Ratio
‐
‐
‐
‐
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Public: Domestic Company – Company A (1/4) Company Information Corporate Address
Offices and Centres – India
Address
Tel No. Tel No.
91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 91
Fax No.
91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website
website
Year of Incorporation
19‐‐
Ticker Symbol
‐‐‐‐‐‐
Stock Exchange
‐‐‐
Products and Services Products and Services Category
Head Office Products/Services
Key People Segment
Others
Product 1, product 2, product 3,………………….
,p ,p Product 1, product 2, product 3………
N Name
D i ti Designation
Person 1
Designation
Person 2
Designation
Person 3
Designation
Person 4
Designation
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Public: Domestic Company – Company A (2/4) Financial Snapshot i i lS h Total Income INR mn
K Key Ratios i Profit INR mn
Total Income Profit / Loss
10,000
y4
600
y3
y1
400
y2
5,000
x1
x2
20‐‐
20‐‐
x3
x4
20‐‐
20‐‐
200
0
0
Financial Summary
Particulars
y‐o‐y change 2012 (2012‐11)
2011
2010
2009
13.43%
7.52%
18.81%
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
2.39
15.82%
1.19 1.89 0.60 1.12 ‐4.90 1.04 1.10
5.35% 4.15% 2.80% 8.19% 6.31% 4.66% 3.36% 2.76% 1.24% 9.35% 8.23% 3.03% ‐78.05% ‐73.15% ‐61.05% 7.17% 6.12% 2.41% 8.91% 7.81% 2.90%
‐2.41
84.00%
86.42% 91.91% 81.00%
2.23
9.61%
7.38%
8.51%
9.82%
0.21
6.90%
6.69%
9.01%
6.41%
‐9.82% ‐13.72%
0.61 0.07
0.67 0.09
0.81 0.07
0.88 0.06
‐32.40% ‐28.61% 14.21%
0.13 0.12 2.32
0.20 0.16 2.03
0.15 0.13 0.90
0.76 0.43 2.97
‐3.11% ‐0.63% 20.77% ‐9.39% ‐0.20%
0.56 0.45 3.16 ‐4.88 0.55
0.57 0.45 2.62 ‐5.38 0.55
0.36 0.30 1.81 ‐7.55 0.36
1.65 0.91 2.08 ‐15.84 1.46
0.14% 1.09% 0.36% 34.42% ‐300.99% 17.34% 31.39%
Cost Ratios
• The company earned a net profit of INR x mn in FY 20‐‐, as compared to net profit of INR y mn in FY 20‐‐ • The company reported total Income of INR x mn in FY 20‐‐ registering an increase of x% over FY 20 registering an increase of x% over FY 20‐‐ • The company earned an operating margin of x% in FY 20‐‐, a decrease of y percentage points over FY 20‐‐ • The company reported debt to equity ratio of x in FY 20‐‐, an increase of y% over FY 20‐‐
Financial Summary Indicators
Value
Market Capitalization (INR)
‐
Total Enterprise Value (INR)
‐
EPS (INR) PE Ratio (Absolute)
‐ ‐
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Cu e t sset u o e Working Capital Turnover Capital Employed Turnover
Improved
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13
Public: Domestic Company – Company A (2/4) Key Business Segments
Key Geographic Segments
A
A
100% 50%
B
100%
100%
A is the only business segment of the company
50% 0%
0%
x1 y1 20‐‐
20‐‐
x2
x3
x4
y2
y3
y4
20‐‐
20‐‐
20‐‐
Business Highlights Description
News
Overview
• Company A is a part of the B Companies and is one of the leading producers and suppliers of x • Company has been allotted a captive chrome ore mine in Place A in J in X district of State B • It has x furnaces with total capacity of y MVA to produce z MT bulk A per annum
Beneficiation Plant
• X plant of the company was commissioned in 20‐‐ with a capacity of x mt/hr • Plant has y from Company A and y from Company B and the z has been done by Company C with Z system C t syste
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