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Subros LimitedInvestor Presentation
1
Updated December 2015
2
Contents
Industry Overview
Introduction to Subros Limited
Financial Information
3
4
Source : ACMA(„000 units)
PV : CAGR 2011-15 : 2%
CV (SCV & LCV): CAGR 2011-15 : -2%
Auto industry in India
Source : IBEF
Due to infrastructure development focus of the Government in India, Vehicle sales potential for both (Car and Commercial vehicle ) segment is very high.
5
CAGR : 11%
Turnover includes supply to OEMs, aftermarket Sales and Exports
Automotive component industry in India
Source : ACMA
Impact of Make in India movement of the government will be high in localisation level
achievement and emerging need of IPO (International Procurement Office) i.e.
source parts from India for overseas company use is high potential area for Auto
Component industry
6
Introduction to Subros Limited
Subros : An Update
R&D
Sanand
Pune
Manesar
Die Casting
Noida
Established in 1985, Subros is the Largest AC company in India.
A Joint Venture company between
ChennaiTool Engineering Centre
Product Profile
Capacity 1.5M/Yr ISO 14001,TS 16949,OHSAH 18001 No. of Employee 1950nos
Board
Standing L to R-Row - 1 (Bottom)-MR. G.N. MEHRA, MR. K. R RAMAMOORTHY, MR. RAMESH SURI, MR. KENICHI AYUKAWAROW -2-MR. SHAILENDRA SWARUP, DR. JYOTSNA SURI, MS. SHRADHA SURI MARWAH, MRS. MEENA SETHI, (MR. KAJITA –ALTERNATE DIRECTOR TO MR. MAKINO)ROW-3- MR. D M REDDY,MR. M A PATHAN, MR. HANUWANT SINGH, MR.HEMANT AGARWAL (DY COMPANY SECRETARY), MR. MANOJ SETHI- SVP (FINANCE, HR & IT)
Management Team
Our Employees , Our Strength
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“To be the world-class Auto-Air
Conditioning and Thermal Engineering
System Manufacturer having Global
Competitiveness”
Guiding principles
"To maintain Market Leadership
through Total Customer
Satisfaction in terms of
Quality, Cost & Speed”
Vision Mission
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Customers Our Presence
Car Segment
Commercial Segment
Major milestones
Transformation from CKD* assembly in 1985 to “Full Systems developer in Thermal Engineering”
* CKD - Completely Knocked down
1985 1986 1995 2000 2001 2002 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Set up of Noida
Plant-1
SAP Implementation
Launch of MPS-Maruti
Production system for
manufacturing
excellence
Set up of Noida Plant-2
Start of Operations at
Manesar Plant
MF Condenser plant
Squeeze Die
Casting Plant
Pune Plant
Started
Start of Denso Subros
Engineering CentreEstablished in 1985
Completion of 25 years Capacity 1 Million AC kits
Capacity 1.2 Million AC
kits
Localisation of RS
Evaporator
Capacity 1.5 Million AC kits
Inauguration of Chennai plant
Launch of transport
Refrigeration System
Bus AC
Development
Inception of STEC
(Subros Tool
Engineering
Centre)
Introduction of New Customer "Renault
Nissan".
Development of new Product (10SL09)
compressor. Chennai Plant becomes
operational
New Tool Room being set up at Noida
Subros celebrated 30 Years of partnership
Radiator entrustment production started for Denso
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The transformation has been a meticulous identification, evaluation & mitigation of business risks for growth
Journey of Transformation
1. Single Plant ->> Multiple Plant structure
2. Capacity enhancement from 15,000 kits to 1.5 Mn
AC kits
Entry into Commercial Vehicle AC, transport refrigeration
systems, rail AC, engine cooling & aftermarket segment
1. Strong local designing capabilities - design JV in
India with Denso
2. Established R & D and testing facilities
3. Successful set up of tooling facility for captive &
customer tooling requirement
Successful launch of ERP system. Ranked among “Top 5
IT User companies in manufacturing segment in India” at
IT user Awards 2004 by Nasscom and ET
Capacity constraint
Skewed customer
profile
Limited product
portfolio
Technology
obsolescence
Internal controls /
governance
Threat Mitigation
Established supplier of OEMs like Maruti, Tata, Force
motors and M&M with market share of 40%
Cost rationalization through localization of high value
imported parts and VA-VE activitiesThreat of competition
2014-15
2013
MSIL Gold Trophy for overall performance.
MSIL Shield for System Audit Rating.
MSIL Shield for Focused Cost Down.
MSIL Certificate for Inner Part Localization.
The Economics Times Gold Award for India Manufacturing
Excellence.
Frost & Sullivan ratings of Indian Manufacturing Industry for sustainability
Adaptation and no. 1 in Innovation and no. 3 in Customer focus.
2014
MSIL Gold Trophy for overall performance.
MSIL shield for quality improvement
MSIL shield for system audit rating
Certificate for inner part localization
TCM-Cll Level V Ranking(2013)
2015
MSIL Shield for overall excellence
Certificate for superior performance in the field of "Design & Development"
Certificate for superior performance in the field of
"Safety"
Certificate for superior performance in the field of
"Spares schedule adherence"
ACMA Silver trophy for Manufacturing Excellence
Silver Trophy for ACMA HR Excellence Award in Special
Category 2015
Awards and Recognition
House of Quality
Quality Assurance Model
• NPD Quality
• Tier 2 Quality
• Inhouse Quality
• Field Quality1. C
ust
om
er
Re
qu
irem
en
ts
3. Technical Requirements
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Manufacturing Infrastructure
Compressor Assembly
(Clean Room)Condenser Assembly
RS Evaporator Line
Robotic Vision
inspection
Shop Floor Helium leak test
machine
Nocloc brazing furnace
for CondensorInjection moulding machine
Squeeze & vacuum pressure
die casting machine
Robotic manipulator
extractor
Robotic surface treatment
machine
HVAC assembly line Tube liquid line
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Product development infrastructure – R&D and tool
room
System Calorimeter Vibration Resistance
Testing
Environment Test ChamberComputer aided
engineering (CAE)
CAD-CAM Facility
CNC VMC VF6
Die spotting press
Corporate social responsibility
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Some examples of the work done by employee
teams at Subros
• Subros is a part of the Green Delhi campaign and sponsors trees
and green areas across the city. This initiative has now been
extended to all metros
• Clothes & Books distribution to under privileged people residing
in slum areas in Delhi NCR is conducted by Women Cell ‘Jagriti’ of
Subros
• Waste elimination is considered equally important as per Subros
environment policy. Mutual benefits are earned by implementing
waste recycling projects.
• Periodic activities are also been conducted every year in-line
with organization’s policy of continuously contributing to the
society. For e.g. blood donation camps, tree plantation etc.
Subros follows policies at company level, plant level and Individual level to
identify and execute CSR projects
Subros women committee
(Jagriti) clothes donating drive Blood donation camp
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Financial Information
9.61%
11.22% 11.42%12.46%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
FY13 FY 14 FY 15 FY16 Projected
Operating Profit %
14361314 1333
1480
500
1000
1500
2000
FY13 FY 14 FY 15 FY16 Projected
Gross Sales
Financial Performance
INR Crores
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11% growth
318 334 357 365
309
377
-
100
200
300
400
Q on Q Sales Trend
Q1-15
Q1-16
Q2-15
Q2-16
Q3-15
5% 2% 22%
30% improvement
74.62%71.07% 69.72% 67.18%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
FY13 FY 14 FY 15 FY16 Projected
Material Cost %age
10% improvement
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Financial Performance
• Major Focus Area is to realise the investment already done.
• All investment for infrastructure buildup to meet customer demand up to 2017 is already completed.
• Further, all future investment decisions are link to ROCE.
10.43
8.86 9.09
11.74
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
FY13 FY 14 FY 15 FY16 Projected
ROCE
2.4
2 1.922.18
0
0.5
1
1.5
2
2.5
3
FY13 FY 14 FY 15 FY16 Projected
Investment to Sales Ratio
32% improvement
The Subros advantage
Market leader in auto air conditioning (40% market share) for Car Market and
Commercial Vehicle segment
Strong lineage, experienced management and strong brand equity.
Strong partnership with foreign collaborators i.e. Suzuki Motor Corporation
(SMC), Japan and Denso Corporation (Denso) each hold 13% stake in Subros Limited.
Established supplier for Maruti, M&M, Tata Force Motor, Renault Nissan and Indian
Railways.
Strong technical collaboration with global leader in automotive air-conditioning i.e.
Denso, Japan. State of art R&D and Testing facilities. Strong local design capabilities
with the setup of Denso Subros engineering services center -Subros’ design JV with
Denso
High capability for in-house tool manufacturing allowing for vendor up gradation, in
house tool development as well as revenue diversification.
All India integrated infrastructure and network for manufacturing, R&D, New Product
Development (NPD) and after sales support
Excellence in ERP systems (SAP)
Committed vendor base
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Thank You
www.subros.com
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