corporate_presentn_-_dec_2010[1]

8/7/2019 Corporate_Presentn_-_Dec_2010[1]

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CorporatePresentation


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Bharati Shipyard Limited


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About Bharati shipyard

In 1976, as a Private Limited Company in Mumbai

Design and construction of various types of sea going, coastal, harbour,inland crafts and vessels. Specialized in ship repairs of technical nature.

Vessels for offshore industry (OSVs, MSVs, PSVs, etc), Rigs, Maneuverableand power packed ocean going tractor tugs, Cargo ships, Tankers, Dredgers,etc

Ship Yards at Ratnagiri, Ghodbunder (Maharashtra), Goa and Calcutta

Greenfield at Dabhol (Maharashtra) and Mangalore (Karnataka)

Design office in Mumbai

Incorporation

Incorporation

Business

Business

Order book

Order book Total order book - ~Rs.5000 Cr; 66% are export orders ~75% of order book from offshore segment

Main

Products

Main

Products

Facilities

Facilities

KeyCustomers

KeyCustomers

Reliance Industries, Great Eastern Shipping, Nor Lines AS Norway, UPOffshore (Bahamas) Limited, Norwegian Offshore Shipping Ltd., ShippingCorporation of India, Coast Guard, India


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Key Strengths

Key Strengths

Key Strengths

SoundFundamentals -

cord of 3 decades

SoundFundamentals -

cord of 3 decades

Specialized ProductSegment

Specialized ProductSegment

Strong order book- Multiple Repeat

Orders

Strong order book- Multiple RepeatOrders

Moving up theValue Chain -

Focus on Offshore

Moving up theValue Chain -

Focus on Offshore

State of the art

facilities -International Quality

Standards

State of the art

facilities -International Quality

Standards


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Firsts by Bharati

Construction of a Self Propelled Cantilevered Independent Leg, Jack

up Drill Rig of the type.

First in India to export a double hull tanker

Built an Anchor Handling Tug cum supply vessel of over 120T

Bollard Pull

Constructed ships for Reliance Industries, Great Eastern Shipping,

Bourbon Supply Investments, France, Man Ferrostaal, Germany

An engine Room model to lay equipments in engine room


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Malaviya Twenty One towing arig to Bahrain a day after itsdelivery


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Locations for Yard Facilities

Ghodbunder, Maharashtra

Area - 12 acres

Builds hulls up to 125mlength

Acts as a feeder yard toRatnagiri yard

Kolkata

Area - 7 acres Builds vessels up to

125m in length and22m in width.

Goa - Pinky Shipyard

Area - 5 acres

Build vessels up to 5,000DWT & 140m in length

Ratnagiri, Maharashtra

Area - 25 acres Certified by International Ship & Port

facility Security (ISPS)

Capable of fabricating and erecting upto14 vessels simultaneously of varioussizes

Mangalore, Karnataka (Under

implementation) Area - 28.3 acres

To build of vessels of ~65,000 DWT

Commenced production with aPlatform Supply vessel

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Dabhol Shipyard,Maharashtra

Area - 300 acres

Build vessels up to1,00,000 DWT

Largest yard of BSL


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Area - 300 Acres, proposed to be built as

SEZ

Capacity to build - Jack Up Drill Rigs,

Offshore Structures and ships up to

1,00,000 DWT

To build large cargo vessels

Floating dock of about 155m x 40 m. with

16,000 tonnes lifting capacity

Proposed Capex Rs. 700 crores (Rs. 450

crores spent already)

Designed by First Marine International, UK

Majority of Swan Hunter, an UK yard,

equipments to be installed at the yard

- Had built air craft carriers, offshore

platforms and other very sophisticated

and advanced vessels and Cargo vessels

of 250,000 DWT

Dabhol Shipyard TheLargest

Construction of Rig in progressConstruction of Rig in progress


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Key Milestones

Acquired49.7% in

GreatOffshore

Acquired49.7% in

GreatOffshore

2009

Receivedlarge ordersfrom Indian

Coast guard,Great

offshore &Norwegean

Shipping

Receivedlarge ordersfrom Indian

Coast guard,Great

offshore &Norwegean

Shipping

2008-2009

Acquiredequipmentsfrom Swan

HunterShipyard(UK).

Acquiredequipmentsfrom Swan

HunterShipyard(UK).

2007

FCCB issueof

US$ 100 mn

FCCB issueof

US$ 100 mn

2005

IPO ofRs. 83 Cr

IPO ofRs. 83 Cr

2004

Orders fromRIL, GreatEastern, Al

Jabar, QatarShipping

Orders fromRIL, GreatEastern, AlJabar, Qatar

Shipping

1995-2004

ExportPerformanceAward from

EEPC

ExportPerformanceAward from

EEPC

1995

First exportorder

First exportorder

1985

Incorporation

Incorporation

1976


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Vertical integration within the group: Bharati Shipyard - a niche offshore vessel builder Great Offshore - a leading offshore vessel operator of India

Work together on the Build, Operate, Repair (BOR) model

Over 50% of GOL fleet has been made by BSL

Provide significant advantages in repair and maintenance

Strong operating and management team with vast track record

Bharati Shipyard holds ~49.7% in Great Offshore

Strategic AcquisitionStrategic Acquisition

Synergies with GreatOffshore


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Rationale to Acquire TSL

Bharati Shipyard is a leading ship builder whichspecialises in construction of vessels for E&PSector.

Tebma Shipyards Ltd (TSL) is also engaged in

construction of offshore vessels. Tebma has a broad based clientele including

international customers like: Trico of USA, DOF ofNorway, Fugro of Norway. Domestically CochinShipyard Ltd (CSL), Indian Navy, Inland WaterwaysAuthority of India (IWAI) Dredging Corporation andothers are also its customers


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TSL Product Offerings


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BSL - TSL Synergies

Ready to use facility Substantial savings in terms of cost and timefor constructing such facility.

Speedier execution of existing contracts of BSL.

Consolidation of existing facilities of BSL.

MoU with Cochin Shipyard Ltd. Direct access to niche defensemarket.

Existing order book and new order received from Fugro.


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BSL - TSL SynergiesContd

Pan India presence for carrying outRepair and other work.

Access to skilled engineers andqualified labour.

Access to Dredger manufacturingtechnology due to technical tie-up.


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Build technologically advanced vessels including Semi-submersibleRigs, FPSO, Offshore Structures, Chemical Carriers, Gas Tankers, etc

catering to premium segments of the Offshore Industry

To focus on orders from the defence sector - to mitigate the cyclical

risk of the shipbuilding industry

Upgrade technology to be at par with the global peers in the longerterm

Enhance repair facilities - an evergreen industry with huge revenuegeneration potential for Bharati

Development of ancillary industries at the green field yards

The Way Ahead


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Current Order Book

Bharatis Current Order book stands Rs. 5, 000 Crores

Approximately 65 % of the order book comprises of exportorders


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Board of Directors

Shri P.C. Kapoor is a qualified Bachelor of Naval Architect from IIT Kharagpur with a vastexperience in Ship Construction, Ship Design and its management. He is a member ofseveral national level conventions and committees

Mr. PC KapoorMD, Promoter

Shri Vijay Kumar is also a qualified Bachelor of Naval Architect from IIT Kharagpur. Hewas associated with Mazgaon Dock Ltd for seven years. He is currently the Secretary ofthe Shipyard Association of India and a convener of DGTD for Shipbuilding and Ship

Repair group.

Mr. Vijay KumarMD, Promoter

Shri V. P. Kamath B.Com, CAIIB with a vast experience in Banking, Financial Services &Project Financing. He was a member of various Institutional Committees of All IndiaFinancial institutions.

Mr. VP KamathIndependent

Director

Shri B.L. Patwardhan is M.A. with specialisation in Economics and has a vast experience inplanning and Management. He had a long tenure with State Bank of India and also actedas a consultant to Banks and financial institutions.

Mr. B L

PatwardhanNominee

Director (SBI)

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FinancialsRs. Mn. FY 2007 FY 2008 FY 2009 FY 2010 FY 2011*

Hf. Yr.

Turnover 3,601 6,451 9,349 12,645 6,764

EBITDA (Without Subsidy) 685 1,284 1,714 2,357 1,275

PBT (Without Subsidy) 491 1,022 1,104 483 (57)

Add : Subsidy 617 597 850 836 775

PBT 1,108 1,619 1,954 1,534 769

PAT 732 1,073 1,333 1,388 514

EBITDA % of Turnover 19 20 18 19 19

PBT % of Turnover 14 16 21 16 12

PAT % of Turnover 20 17 14 11 8

Networth 2,449 5,789 7,026 8,508 8,880

Debt 5,555 4,316 10,033 22,928 28,000

* Unaudited Nos.


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3,601

6,451

9,341

6,764

12,648

0

5,000

10,000

15,000

FY 2007 FY 2008 FY 2009 FY 2010 FY 2010

Hf.Yr.

Offshore

segment

59%Rigs

15%

Others

26%

FinancialsRevenue (Rs.

Mn)

EBITDA (Rs. Mn)

685

1,2841,714

2,357

1,275

0

500

1000

1500

2000

2500

FY 2007 FY 2008 FY 2009 FY 2010 FY 2010

Hf. Yr.

7321,073

1,333 1,388

514

0200400600800

1000

120014001600

FY 2007 FY 2008 FY 2009 FY 2010 FY 2010

Hf. Yr.

PAT (Rs. Mn)

Turnover break up


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Yard Facilities

The Jack Up RIGbeing constructed atDabhol yard


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Various cranes at SwanHunter U.K.


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Welding Gantry

2000 T 42 F


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2000 Tons x 42 FeetHydraulic Rolling Press


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FabricationHall

24


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Transportation of MegaBlock


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Main Fab. Hall


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Making of Rig


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Making of Rig


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Making of Rig


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Industry Outlook


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Global Shipbuilding

Europe(1950s &1960s)

Japan(1970s)

South Korea(1980s)

China((2002)

onwards)

India ???(21st Century)

World Economic Growth

Global Trade

Global Shipping Tonnage

Trade Growth World GDP

growth

Oil production &prices

Inventory levels

Demand forcommodities

Change in tradepatterns

Raw materialssourcing

Steel / Refinery/grain production

New vessel orders

Shipyard capacity

Replacementdemand

New buildingprices

Replacement orders

Age of vessel

Market conditions

Regulatorydevelopments

New Buildings Existing Fleet Scrapping

Supply

Demand

Commercial Tankers (crude & product), dry bulk carriers & containercarriers

Offshore Oil rigs, OSVs, AHTS, FPSOs, etc

Inland Services Ferries, Ro-Ros, barges, etc

Naval Frigates, destroyers, patrol vessels, aircraft carriers, submarines, etc


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Offshore Sector Outlook

NON-OECD Asia (including India) 43% of totalincrease in global oil use over next 20 years(1)

NON-OECD Asia (including India) 43% of totalincrease in global oil use over next 20 years(1)

Significant Increase in E&P activitiesSignificant Increase in E&P activities

Increased investments in new offshore assets and

replacement of existing offshore equipment

Increased investments in new offshore assets and

replacement of existing offshore equipment

Recovery of oil reserves and production from ultra

deepwater fields more viable

Recovery of oil reserves and production from ultra

deepwater fields more viable

200

300

400

500

600

700

QuadrillionBtu

Reference High Economic Grow th Low Economic Grow th

1995 2006 2015 20301980

History Projection

Firming international crude oil pricesFirming international crude oil prices

Rapidly Expanding Indian Offshore MarketRapidly Expanding Indian Offshore Market

Reliance Industries Ltd.Reliance Industries Ltd. D6 -

$8.8 bn

D6 -

$8.8 bn

ONGCONGC $21 bn$21 bn

Substantial investment in enhancement of recovery from

existing fields

Substantial investment in enhancement of recovery from

existing fields

Requirement for Innovative solutions and new technologiesRequirement for Innovative solutions and new technologies

Offshore segment capital expenditure: US$10 bnOffshore segment capital expenditure: US$10 bn

Excess demand for seismic, drilling, installation and field

development, support and maintenance vessels

Excess demand for seismic, drilling, installation and field

development, support and maintenance vessels

Planned E&P CapexPlanned E&P Capex

Source: EIA


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Indian defence Opportunity

Increasing defence ExpenditureIncreasing defence Expenditure

*Budget estimates.

Indias defence expenditure growing

over the past couple of years

Given the geo-political realities of

the region, it is expected to grow

further

Countrys vast coastline presentsthe need for a large naval budget

Indigenization of defence NeedsIndigenization of defence Needs

Private sector Participation

2001: 100% private participation permitted2001: 100% private participation permitted

2005: Recommendations to enhance private sector

participation by Kelkar Committee

2005: Recommendations to enhance private sector

participation by Kelkar Committee

Private sector expected to play a vital role in

meeting the sophisticated needs

Private sector expected to play a vital role inmeeting the sophisticated needs

2008: 15 year plan for Indigenization of Indian Navy2008: 15 year plan for Indigenization of Indian Navy

140162 159 173

206

0

50

100

150

200

250

2005-06 2006-07 2007-08 2008-09 2009-10*

805 855 917 1,146 1,417

TotalExpenditure

(INR

Billion)


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Thank You

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