investor presentation - engineers india...
TRANSCRIPT
Investor Presentation
January 2014
2
Disclaimer
THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE.
Engineers India Limited (the “Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a further public offer of its equity shares of face value of Rs. 10
each (“Equity Shares”) through an offer for sale by Government of India through the Ministry of Petroleum and Natural Gas and has filed a draft red herring prospectus with the Securities and Exchange Board
of India. The draft red herring prospectus is available on the website of SEBI at www.sebi.gov.in and the websites of the book running lead managers at www.icicisecurities.com, www.idfccapital.com and
www.investmentbank.kotak.com. Investors should note that investment in Equity Shares involves a high degree of risk and for details relating to the same, see the section titled “Risk factors” of the draft red
herring prospectus.
This presentation is for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or any
offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection
with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not
constitute a recommendation by the Company or any other party to sell or buy any securities of the Company.
This presentation and its contents are not and should not be construed as an offer document or prospectus. This presentation is intended only for the attendees of the presentation and may not be
retransmitted or distributed by them to any other persons. By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitation and notifications
and represent that you are a person who is permitted under applicable law and regulation to receive information of the kind contained in this presentation.
This presentation and its contents are strictly confidential to the recipient and should not be further distributed, re-transmitted, published or reproduced, in whole or in part, or disclosed by recipients directly or
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regulatory requirement. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation or the DRHP filed with SEBI, and if given or made,
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terms set out herein. Any failure to comply with this restriction may constitute a violation of applicable securities laws. This presentation and the information contained herein does not constitute or form part of
any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company, nor should it or any part of it form the basis of, or be relied on in connection
with, any contract or commitment whatsoever.
Nothing in the presentation shall constitute and/or deem to constitute an offer or invitation to an offer, to be made to the Indian public or any section thereof, and this document and its contents should not be
construed to be a prospectus in India. This presentation has not been and will not be reviewed or approved by regulatory authority in India or by any stock exchange in India. This presentation does not comply
with the disclosure requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges.
This presentation contains forward-looking statements, which are statements that address expectations or projections about the future, including but not limited to statements about the strategy for growth,
product development, market position, expenditures and the financial results of the Company. Forward looking statements may be identified by their use of words like “plans”, “expects”, “will”, “anticipates”,
“believes”, “intends”, “projects”, “estimates” or other words of similar meaning. Forward-looking statements are based on certain assumptions and expectation of future events. The Company cannot guarantee
that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Company could differ materially from those projected or expressed in any such
forward-looking statements. The Company assumes no responsibility to publicity amend, modify or revise any information, opinion expressed, or forward looking statements on the basis of any subsequent
developments, information, events or otherwise. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of the management on future events.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information, estimates,
projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and
must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice. None of the
Company, Book Running Lead Managers, selling shareholder or any other persons that may participate in the offering of any securities of the Company shall have any responsibility or liability for any loss
arising from this presentation, its contents or otherwise.
This presentation should not be treated as advice relating to legal, taxation, financial, accounting or investment matters. By attending this presentation you (i) acknowledge that you will be solely responsible for
your own assessment of the market and the market position of the Company and of the risks and merits of any investment in the Shares, and that you will conduct your own analysis and be solely responsible
for forming your own view of the potential future performance of Company’s business, and (ii) agree to be bound by the foregoing terms and to keep this presentation and the information contained herein
confidential.
3
Contents
Business Outlook and Strategy
Overview of Engineers India Limited (“EIL”)
Key Investment Themes
Financials and Order Book Overview
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Page #
Overview of Engineers India Limited (“EIL”)
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One of India’s leading engineering consultancy and EPC companies
Nearly five decades of experience on landmark projects with global energy majors
Significant track record across entire oil & gas value chain including 10 green-field
refineries, 39 oil & gas processing plants, 40 offshore process platforms, 42
pipelines and 7 petrochemical complexes
Focused diversification into other sectors:
Fertilizer and LNG
Non-ferrous metallurgy
Infrastructure
Strategic crude oil storage
Nuclear and solar energy
E&P
Over 2,890 highly experienced professionals and technical workforce
In-house and collaborative R&D support with 14 registered patents
Expanding overseas presence in MENA and South East Asia
Zero debt firm with track record of healthy earnings and consistent dividend
payout
5
Company Background
BPCL Refinery,
Kochi
Bina Refinery
Panipat Naphtha
Cracker Unit
Guru Gobind Singh
Refinery, Bathinda
Marquee Projects
6
Evolution & Key Milestones
Wholly owned Government of India (GoI) company
Incorporated pursuant to a formation agreement between GoI and Bechtel
Commenced work in the refineries segment
1965 1967 1969 1970-72 1989 1997 2001 2006
Commenced services in sub-surface crude storages
R&D centre in Gurgaon
1975-78
Expansion in Hydrocarbons value chain
Offshore
Pipelines
Onshore oil and gas
Listed on the BSE and NSE
Accorded the Mini Ratna status
Diversified into Infrastructure
Expansion to Petrochem with IPCL (now Reliance Industries Ltd)
2010
Special interim dividend of 1000%
Successful FPO of 3.36 Cr shares of Rs. 5 each
Commenced first international assignment
Entered
Fertilizer sector
Non-ferrous metallurgical sector
2011
Diversification into nuclear and solar Energy sector
JV in Saudi Arabia
2012 -13
Entered into PSC with GoI for exploration (NELP IX)
Overseas expansion in fertilizer
7
Service Offering - From Concept to Commissioning
Pre-feasibility studies
Technology and licensor selection
Conceptual design & feasibility
Process design package
Process Design
Residual engineering and FEED
Detailed engineering
Engineering for procurement
Engineering for construction
Engineering
Supplier and contractor management
Expediting and inspection
Vendor development
Procurement
Materials and warehouse management
Quality assurance and health, safety &
environment
Progress monitoring/ Scheduling
Mechanical completion
Site closure
Construction Management
Pre-commissioning and commissioning
assistance
Safety audit
Hazard and operability studies
Risk analysis
Commissioning
Integrated project management services
with focus on cost, quality and schedule
Project Management
Environment engineering
Heat and mass transfer
Plant operations and safety management
Specialist materials and maintenance
services
Specialized Services
Certification and re-certification services
EIL subsidiary – Certification Engineers
International Limited (CEIL)
Third party inspection
Certification
Service Offering - Modes of Contracts Managed
8
Consultancy Contracts
Turnkey Contracts
Wide spectrum of service offerings
Engineering,
Procurement and
Construction
Management
(EPCM)
Services related to process design,
detailed engineering, procurement,
construction supervision through co-
ordination of various suppliers and
contractors and commissioning and
pre-commissioning assistance
1
Project
Management
Consultancy
(PMC)
Front-end
Engineering &
Design (FEED)
Comprehensive project management
Services for the implementation of a
project through EPC contractors
Upstream process design, residual basic
design and front-end basic engineering for
complete definition of scope for selection
of EPC contractor
3
2
Lump-sum
turnkey ("LSTK")
Fixed price contracts for Engineering, Procurement And Construction (EPC)
Single-point responsibility for completion of a project within the agreed schedule at the awarded turnkey price
Changes in scope of work are defined by change orders agreed by both parties
1
Open book
estimate ("OBE")
Cost plus contracts contract with a provision for conversion to LSTK
2
9
Lines of Business
Oil & Gas Chemicals & Metallurgy
Infrastructure Power
Oil and Gas
Processing
Offshore &
Onshore
Strategic
Storage,
Terminals and
Pipelines
Refinery Petrochemicals Fertilizer Mining and
Metallurgy
Solar Thermal Nuclear City Gas Urban
Development
Water and Waste
Management
R&D Achievements
Established in 1988 as part of an initiative of Scientific Advisory Committee of the MoPNG for development of indigenous hardware
and process scale-up capabilities
14 patents awarded and 15 pending applications
Over the years, the R&D initiatives have enhanced EIL’s capabilities in process design, heat and mass transfer, distillation processes
and enabled EIL to offer end to end concept to commissioning services
Developed and commercialized over 30 technologies through in-house development and / or in collaboration with clients and reputed
research institutions such as IOCL R&D*, IIP*, CPCL*, HPCL*. Some of the technologies developed include:-
CDU (Crude oil Distillation Unit), VDU(Vacuum Distillation Unit ), bitumen blowing, visbreaking, hydrotreating (naptha,
kerosene / ATF and diesel), reformers and isomerization
Gas sweetening, gas dehydration, dew point depression, gas transportation, LPG and ethane/ propane recovery units
Naphtha splitter, benzene toluene extraction and fractionation and xylene fractionation
Refining
Oil and Gas
processing
Aromatics
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* IOCL - Indian Oil Corporation Limited; IIP - Indian Institute of Petroleum; CPCL - Chennai Petroleum Corporation Limited; HPCL - Hindustan Petroleum Corporation Limited
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Select Ongoing Projects – Hydrocarbon
Refinery
Pipelines
Terminal &
Storages
6 MMTPA Integrated Refinery Expansion Project (IREP) at Kochi of Bharat Petroleum Corporation Ltd (BPCL)
Wax unit of Numaligarh Refineries Ltd (NRL)
Refinery expansion & up-gradation project for Mangalore Refinery and Petrochemicals Ltd (MRPL)
6 MMTPA capacity CDU-4 Project at Mumbai Refinery for BPCL
Rehabilitation and adaptation of Algiers refinery refinery of SONATRACH
Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline Project (MBBVPL) for Gujarat State Petroleum Corporation (GSPL) & Gujarat
India Transco Ltd. (GITL)
Upgrading pump stations/ terminals of Naharkatiya-Barauni Crude Oil Pipeline for Oil India Limited
Dabhol-Bangalore gas pipeline of total 1200 KMs project for GAIL (India) Ltd
Mehsana-Bhatinda Pipeline Project of total 1600 KMs for GSPL
Strategic Crude Oil Facilities in Rock Caverns for the Indian Strategic Petroleum Reserves Limited at Mangalore,
Vishakhapatnam and Padur
LNG terminal at Gangavaram port for Petronet LNG
Development of port facilities for Ratnagiri Gas and Power Pvt Ltd for GAIL (India) Ltd
Offshore/
Onshore Oil &
Gas
Enhanced oil recovery project of CAIRN India
Offshore platform projects for Gujarat State Petroleum Corporation (GSPC)
Western Onshore Redevelopment Project for Mehsana, Ankleshwar and Ahmedabad Assets of ONGC
Habshan Acid Gas Flare Recovery Project for Abu Dhabi Gas Industries Ltd.
Revamp of BPA/BPB platforms for ONGC
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Select Ongoing Projects – Others
Petrochemicals &
Fertilizers
Mining and
Metallurgy
Infrastructure
Turnkey Projects
Dahej Petrochemical Complex for ONGC Petro-additions Ltd (OPaL)
Assam Gas Cracker Complex at Lepetkata for BCPL
Petrochemical expansion project at GAIL Vijaipur and GAIL Pata plants
Butadiene extraction project at IOCL Panipat
Facility to produce fertilizer products in Port Harcourt, River State, Nigeria
ShahJalal fertilizer project for BCIC, Bangladesh
Ammonia Plant in Indonesia for Panca Amara Utama (PAU)
Second phase expansion of Bauxite Mines, Alumina Refinery for NALCO, Bhubaneswar
Mahan Aluminum Smelter project, Madhya Pradesh for HINDALCO
Aditya Aluminum Smelter project, Odisha for HINDALCO
Fourth Stream Upgradation Project for Bauxite Mines and Alumina Refinery, Orissa for NALCO
Canal, Pipeline and Pumping station works of Sardar Sarovar Narmada Nigam Limited (SSNNL)
Data Centre of UIDAI at Delhi and Bengaluru for Unique Identification Authority of India (UIADI)
Interceptor Sewer Project for the abatement of pollution in River Yamuna for Delhi Jal Board (DJB)
Rajiv Gandhi Institute of Petroleum technology (RGIPT) at Rai Bareli and Sibsagar
Coker Block for Resid Upgradation Project of CPCL, Chennai
Butene-1 Project at Panipat Naphtha Cracker Complex for IOCL
Onshore Gas Processing Complex at Kakinada for GSPC
SPM , Pipeline and related facilities for MRPL, Mangalore
Pipeline and South Jetty Facilities for IOCL Paradip Refinery
PFCC, SRU and Polypropylene Projects of Phase III refinery project at Mangalore for MRPL
Nuclear: Nuclear Fuel Complex at Rawatbhata, Kota
Solar: 125 MW Solar Thermal Power Project of Reliance Power
Captive: Captive Power Plant for Paradip refinery of IOCL
Power
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Select Awards and Accolades (2010-13)
PMI Award-2010
Bina Refinery project of Bharat Oman Refineries (BORL)
Best Project under 4th CIDC Vishwakarma Awards
Euro-IV Upgradation project of Chennai Petroleum Corporation Limited (CPCL)
Business Standard Star PSU of the year 2010 Award
Shri A K Purwaha, C&MD, EIL received the award from Hon’ble Prime Minister of India, Dr. Manmohan Singh
Golden Peacock Award 2013
Golden Peacock award for sustainability
PMI Award-2012
Guru Gobind Singh Refinery project, Bathinda of HPCL-Mittal Energy Limited (HMEL)
Petrotech-2012 Special Technical Award in Greening of Oil and Gas Business Category
India's first Indigenous Diesel Hydro-treating (DHDT) Technology unit jointly developed with IOCL and implemented in
Bongaigaon Refinery
Petrotech-2012 Special Technical Award in Project Management Category
Guru Gobind Singh Refinery Project, Bathinda of HMEL
Commendation Certificate of SCOPE Meritorious Award in Specialized Fields
R&D, Technology Development and Innovation for 2011-12
Golden Peacock Award 2012
Special Commendation for the Golden Peacock Occupational Health & Safety Award
ICC PSE Excellence Award 2013
For R&D, Technology Development & Innovation
14
Select Awards and Accolades (2010-13)
BT Star PSU Excellence Award 2012
Excellence in Human Resource Management
IPE CSR Award
Best practices in Corporate Social Responsibility in 2012-13
SCOPE Excellence Award 2009-10
Excellence and outstanding contribution to the Public Sector Management in Miniratna category
Performance Excellence Award from Indian Institution of Industrial Engineering (IIIE)
Financial and Operational Strength for the year 2010-11
ICAI Award-2012 for Excellence in Cost Management Practices
ICAI Award-2012 for Excellence in Cost Management Practices - 1st prize in the category of Public - Service Sector –
Large
12th ICSI National Award 2012
Excellence in Corporate Governance
SKOCH Order of Merit Award
Innovative Technology on ‘Oxyenrich Process for Capacity Enhancement & Trouble Free Operation of Claus Sulphur
Plant’
FICCI Chemical and Petrochemical Awards 2013
Process Innovator of the Year in Petrochemicals for ‘Food Grade Hexane (FGH)’ Technology jointly developed by EIL &
IOCL and Best Contribution to Academia for ‘Wet Air Oxidation (WAO)’ Technology jointly developed by EIL & IIT
Roorkee.
Indian Chamber of Commerce PSE Excellence Award 2011
R&D, Technology Development & Innovation
Key Investment Themes
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Investment Highlights
Presence across the Oil & Gas value chain
Operations in diversified sectors (Petrochemicals, non-ferrous , infrastructure…)
Increased focus in overseas geographies
Extensive track record and strong client relationships
Technology-driven integrated turnkey and total solutions consultancy services
Increased focus on diversification into emerging sectors
Management of the talent portfolio
Experienced management team
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Presence Across the Oil & Gas Value Chain 1
Nearly five decades of experience in the Hydrocarbon space with a presence across the entire value chain
Over 150 Well
Platforms and 30
Process Platforms for
ONGC*
Offshore Platform
Projects for the Deen
Dayal Field
Development Project of
GSPC East Coast,
India
International Projects in
Qatar, UAE
Oil & Gas Exploration
under NELP IX
Offshore Oil & Gas
HBJ pipeline – India’s
largest Gas Pipeline
Network
Jamnagar-Loni LPG
Pipeline of GAIL (one of
the world’s longest)
Strategic Pipelines for
HPCL, BPCL, BORL,
IOCL , HMEL,
TAKREER*, ADNOC*,
NPCC*
Oil & Gas Transportation
Storage of Crude Oil in
Underground Caverns -
security initiative for
Strategic Crude Oil
Storage as part of the
Integrated Energy
Policy of GoI
LNG Terminals re-
gasification and
downstream infra
facilities for Petronet
LNG, RGPPL* , Shell
and SONATRACH
Storage, Ports & Terminals
Gas Processing
Complexes at Hazira
and Uran and the
C2/C3 and LPG
recovery units
Gas Processing
Complex of GSPC at
Kakinada, India
International Projects in
Algeria and UAE
Onshore Oil & Gas
Refinery projects
aggregating over 150
MMTPA
10 Grass-root Refinery
Projects in India
Algiers and Skikda
Refineries of
SONATRACH, Algeria
Services for refinery
majors in MENA region
like KNPC*, ORPC*,
KPRL, BAPCO*
Refineries
* ONGC – Oil and Natural Gas Corporation Limited; TAKREER - Abu Dhabi Oil Refining Company; ADNOC - Abu Dhabi for Abu Dhabi National Oil Company; NPCC - National Petroleum Construction Company , Abu Dhabi; KNPC - Kuwait National Petroleum Corporation; ORPC - Oman Refineries and Petrochemicals Limited ; BAPCO - Bahrain Petroleum Company; RGPPL - Ratnagiri Gas and Power Private limited
18
Operations in Diversified Sectors
Establishing strong foothold across emerging sectors
7 out of the 8 mega
Petrochemical
Complexes in India
Large petrochemical
clients like GAIL, IOCL,
IPCL* (now RIL),
OPaL*, BCPL* and
others
Petrochemical projects
in Middle East region
for Kuwait Aromatics
Company and
BOROUGE
29 large Non-ferrous
Metallurgical Projects of
Alumina, Aluminum,
Copper, Zinc, Lead
Titanium, Cadmium,
Mica, Rock Phosphate,
Graphite, Fluorspar,
Limestone, and Lignite
Large clients include
NALCO*, INDAL*,
HINDALCO, Sterlite,
HZL*, NMDC*, HCL*,
JSWAL*, GMDC*
Modernization and
redevelopment of Delhi
& Mumbai airports
Interceptor sewers for
abatement of pollution
in river Yamuna for
Delhi Jal Board
Focus on water, waste
management and urban
development
Development and
operation of new city
gas distribution projects
Fertilizer complexes at
Phulpur, Bhatinda,
Panipat, Bharuch
Ammonia plants at
Kalol, Taloja
Ammonia Urea complex
at Nigeria for Indorama
ShahJalal fertilizer
project at Bangladesh
for BCIC
Focus on Naphtha/ Gas
based fertilizer plants
Thermal power plants
for GAIL, OPGC* and
Reliance Power (RPL)
Nuclear power plants
for NPCIL* and NFC*
Solar thermal power
project of RPL
Thermal – Focus on
consultancy services for
balance of plant
Nuclear - Target
strategic engineering
consultancy
opportunities; pursue
collaborations with
technology providers
Fertilizers Mining & Metallurgy Infrastructure Power
zzzzzzzzzzzzzzzzzzzzz
Petrochemicals
2
* IPCL - Indian Petrochemicals Corporation Limited; OPaL - ONGC Petro-additions Limited; BCPL - Brahmaputra Cracker and Polymer Limited; NALCO - National Aluminium Company Limited; INDAL - Indian Aluminium Company Limited; HZL - Hindustan Zinc Limited; NMDC - National Mineral Development Corporation Limited ; HCL - Hindustan Copper Limited; JSWAL - JSW Aluminum Limited; GMDC - Gujarat Mineral Development Corporation Limited; OPGC - Orissa Power Gas Company; NPCIL - Nuclear Power Corporation Limited; NFC - Nuclear Fuel Complex
19
Increased Focus in Overseas Geographies 3
UAE
NIGERIA
KENYA
ALGERIA
INDONESIA
VIETNAM
MALAYSIA
GHANA
LONDON
MILAN
SHANGHAI
MIDDLE EAST
(UAE, Kuwait,
Oman, KSA ..) VENEZUELA
EIL international offices
JV : “JABAL EILIOT” in Kingdom of Saudi Arabia
WOS: “EILAP” in Malaysia
Sector Country Client
Refinery Algeria Sonatrach (Formerly NAFTEC)
Refinery Oman Sohar
Refinery Kuwait KNPC
Refinery Indonesia WIKA
Refinery Kenya KPRL
Sector Country Client
Oil & gas processing UAE NPCC, ADCO
Oil & gas processing Vietnam Petro-vietnam
Pipelines UAE GASCO, TAKREER, NPCC,
ADNOC
Sector Country Client
LNG Algeria Sonatrach
Petrochemicals UAE BOROUGE, EQUATE
Petrochemicals Malaysia M/s Vinyl Chloride
(Malaysia) sdn. Bhd
Sector Country Client
Fertilizers Nigeria Indo Rama
Fertilizers Bangladesh BCIC
Fertilizers Malaysia Petronas Fertilizer (Kedah) Sdn.
Bhd.
Non Ferrous Bahrain ALBA
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Extensive Track Record and Strong Client Relationships
7 Petrochemical
Complexes
29 Mining & Metal
Projects
17 Turnkey Projects
Infrastructure
Projects
40 Offshore
Process Platforms
8 Fertiliser Projects
37 Oil & Gas
Processing Projects
42 Pipeline Projects
13 Ports & Storage
Terminals
Power / Captive
Power Projects
Refinery Projects including
10 Green-field Projects
BCPL
INDAL
BCIC
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Track Record in Refineries & Petrochemicals
Milestones
19 out of 22 Refineries in India
have EIL Footprints
Worked on a combined refining
capacity of more than 150 MMTPA
(3 million BPD) in India
Engineered 10 grass-root refineries
Involved in the establishment of 7
out of the 8 mega petrochemical
complexes in India
Currently executing two green field
and one brown field expansion
project
Forayed into new areas such as
underground caverns for storages
Refinery
Mega Petrochemical Plant
Koyali Refinery
ASSAM
BIHAR
GUJARAT WB
Haldia Refinery
UP
Panipat Refinery
HARYANA
MAHAR- ASHTRA
Mumbai Refinery
Mumbai Refinery
ANDHRA PRADESH
Visakh Refinery
Kochi Refinery
Manali Refinery
TN
Kerala
Nagapattanam Refinery
Guwahati Refinery
Barauni Refinery
Mathura Refinery
Bongaigaon Refinery
Numaligarh Refinery
Digboi Refinery
Mangalore Refinery KARNATAKA
Vadinar Refinery
PUNJAB
Guru Gobind Singh Refinery
Bina Refinery
MP
Assam Petro. Plant
BCPL
Haldia Petro. Plant
Panipat Petro. Plant
Dahej Petro. Plant
Pata Petro. Plant
Nagothane Petro. Plant
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Comprehensive technology related offering Technology driven organisation
Technology Driven Integrated Turnkey and Total Solutions Consultancy Services
State of the art R&D centre at Gurgaon …
…technology driven full range of services…
Process Design &
Residual
Engineering
Integrated
business 3
Configuration and
Feasibility studies
FEED Commissioning
Services
Specialized
Services
Technology
Licensing Services
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6
1 2
4
1
2
EIL Process
Technologies
Vis-
breaking
Delayed
Coking
Sulphur
Recovery
LPG
Sweetening
Light Naphtha
Isomerization
Aromatic
Extraction
EIL has developed over 30 process technologies for the oil and gas processing, refineries and petrochemical industries
Currently holds 14 live patents and has 15 pending patent applications relating to various process technologies
Comprehensive environment engineering services
Comprehensive Hazop, Hazan, Risk and consequence analysis services
5
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Increased Focus on Diversification into Emerging Sectors
Driving growth by leveraging track record and capabilities into emerging sectors
Oil
& G
as
Exp
lora
tio
n
Nu
cle
ar
Po
wer
So
lar
Po
wer
Th
erm
al
Po
wer
LN
G
Gas b
ased
Fert
iliz
er
Pro
jects
Wate
r an
d W
aste
Man
ag
em
en
t
Cit
y G
as
Dis
trib
uti
on
Participated in the NELP IX bidding along
with four other consortium members
Signed the PSC with GoI for two
exploration acreages in 2012
Targeting strategic engineering
consultancy opportunities in the nuclear
power sector
Implementation of solar thermal and
photovoltaic power plants
Target project opportunities under JNNSM
scheme
Focus on EPC and BOO projects
EPC for balance of plant
PMC services for large power projects
Targeting upcoming LNG storage and re-
gasification projects in India and related
downstream infrastructures such as
pipelines
Explore EPC opportunities in Gas-based
fertilizer projects in India and
internationally
Feed conversion projects both for naphtha
and FO/ LSHS based projects
Provide integrated solutions
Focus on water desalination projects,
municipal sewage recycling projects,
industrial water, waste to energy projects
Alliances with specialist consultants and
contractors
Pursue strategic city gas distribution
projects through equity investments to own
and operate such networks
Evaluate strategic JV arrangements with
other entities that are currently operating in
the sector
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Focus areas Leadership development
Management of the Talent Portfolio
EIL’s HR initiatives to manage the diverse talent & business needs
Policies designed to provide the human resources an enabling
environment facilitating growth and rewarding them for contributions
Training interventions at various levels for developing the domain
expertise and enhancing managerial skills
Comprehensive knowledge management infrastructure
Employee centric HR policies reflected in lower attrition over
years
Employee attrition rate of 3.11 % in FY 13 and 2.11% as of Half
Yearly FY14
Over 3,300* permanent employees, including more than 2,890*
employees with technical and professional qualifications
In June 2009, launched “Aarohan”, a leadership program designed
to increase the leadership capabilities and competencies of our
employees
“Leaders Groom Leaders” program leverages on years of expertise
of leaders and ensures that knowledge & skills of the senior level is
not only upgraded but also disseminated
Self- Reflection &
Feedback
Cascading Learnings
Building Individual
Development Plans
(ILDPs)
Receiving Coaching
Measurement &
Tracking
Developmental
Experience
Through:
Learning through
Workshops &
Lectures
Implementing
Action Learning
Projects (ALPs)
Facets of LDP - Aarohan
7
* as of September 30, 2013
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Experienced Board and Leadership Team: Executive Directors
Ram Singh
Director (Finance)
Ashok K. Purwaha
Chairman &
Managing Director
Deepak Moudgil
Director (Projects)
Ajay N Deshpande
Director (Technical)
Sanjay Gupta
Director
(Commercial)
Veena Swarup
Director (HR)
32 years of experience in finance and cost accounting
Held positions with SAIL, BPCL, Petroleum Planning and Analysis Cell of MoP&NG, and the Oil Coordination
Committee
Conferred with Business Today Best CFO of a PSU (Mid size) Award-2013 and India CFO Award for Excellence
in Risk Management by IMA India
More than 36 years of experience in the hydrocarbon sector
Served with ONGC (more than 8 years) and with GAIL India Limited for over 24 years, last position held was as
Director (Business Development) on board of GAIL
Led Mahanagar Gas Limited, Mumbai (a JV of GAIL India Limited and BG Group, UK) as MD for 5 years
Over 38 years of experience in construction and projects
Successfully led EIL’s diversification into infrastructure sector
He has worked in various departments of EIL, including construction, administration, marketing and projects
33 years of experience in EIL spanning Oil & Gas, Refining & Petrochemicals segments
He has co-authored a total of four patent applications on behalf of the research and development of the Company
Currently responsible for functioning of Divisions in the Technical Directorate of EIL
33 years of experience in implementation of mega projects in refineries, pipelines and petrochemicals
Successfully implemented LSTK Project for PFCCU Project at MRPL
He has been entrusted the task of leadership for formulation of the strategy group responsible for EPC initiatives
as well as business growth initiatives within the Company in the past couple of years
30 years of experience in Human Resource management in the petroleum and natural gas sector
Prior to joining the Company, Ms. Swarup was with ONGC since 1983, where she headed the Performance
Management and Benchmarking Group, which steers the performance contracts and service level agreements
between board level and unit chiefs
Headed the SAP-HR Project for ONGC
8
26
Experienced Board and Leadership Team: Non-Executive Directors
Government director nominated by MoPNG
Joined the Indian Economic Service in 1982
During 30 years in the government service, served in various economic ministries of the Government of India
Served as Secretary/Additional Chief Secretary/Principal Secretary of several departments in the Government of West
Bengal
Served as Joint Secretary, Cabinet Secretariat, Government of India and supervised work relating to the departments of
personnel and training, agriculture, feed and public distribution, consumer affairs, environment and forests, finance,
commerce, industry, law and chemicals & fertilizers
Served as the managing director of the WBPDCL and as chairman of the WBTDCL
Published/presented over 120 research papers and authored/edited 4 books
Received awards from the Institution of Chemical Engineers (U.K.) and the Indian Institute of Chemical Engineers
Currently serving as Director, Rajiv Gandhi Institute of Petroleum Technology, Rae Bareli
Dr. Archana
Saharya Mathur
Nominee Director
Bijoy Chatterjee
Independent Director
Dr. J. P. Gupta
Independent Director
Government director nominated by MoPNG
Officer of the Indian Administrative Services, currently holding post of Director General, Directorate General
Hydrocarbons
Previously held positions of Principal Advisor, Telecom Regulatory Authority of India, Joint Secy in the Ministry of
Finance, Development Commissioner (Handlooms), Ministry of Textiles and as Director on the Board of BPCL
R. N. Choubey
Nominee Director
Chairman and editorial director of IMA India, a business information company established in 1994
Advisor to several MNCs on India strategy
Successfully handled assignments in public policy, entry strategy planning, location audits, competitor analysis,
scenario planning and JVs
Aditya Jain
Independent Director
8
27
Experienced Board and Leadership Team: Non-Executive Directors
39 years of work experience in the Indian administrative sector, including ten years in positions of a joint secretary
and above in the Government of India and Government of Gujarat
Handled the administrative divisions in the central ministries, dealing with several maharatna, navratna and mini
ratna companies such as IOCL, HPCL, BPCL, MMTC, EPCGC, ITDC, GSFCL, etc
Dr. Christy Leon
Fernandez
Independent Director
32 years of experience and has been associated with the legal service in the Ministry of Law and Justice
(Department of Legal Affairs)
Served as the union law secretary, monitoring the functioning of the department of legal affairs and functioned as
an arbitrator and appellate authority and disposed of more than 200 cases as the law secretary
Mr. Dhani Ram
Meena
Independent Director
Over 37 years of experience
Previously worked with Hindustan Petroleum Corporation Limited and held various positions of responsibilities in
the organization
Presently is a senior advisor to the University of Petroleum and Energy Studies, Uttarakhand
Dr. Vizia Saradhi
Vakkalanka
Venkateshwar
Independent Director
Worked as Vice Chancellor of University of Pune and presently holding the post of Director of IIT Delhi
He has been a visiting professor at University of Lincoln, USA; ETH, 153 Zurich, Switzerland; and ISEP Paris,
France
Has published more than 150 papers in international journals and conferences
Dr. R. K.
Shevgaonkar
Independent Director
EIL’s Board of Directors comprise of qualified & reputed individuals with long-standing experience across industry verticals
8
Financials and Order Book Overview
3
Order Book With Focus on High Margin Consultancy Business
29
Total Order Book: INR 32,234 mn*
Turnkey
Coker block for Resid Upgradation Project
of CPCL, Chennai
Pipeline and south jetty facilities for IOCL
Paradip refinery
Onshore gas processing complex at
Kakinada for GSPC
SPM , Pipeline and related facilities for
MRPL, Mangalore
PFCC, SRU and Polypropylene projects of
Phase III refinery project at Mangalore for
MRPL
Butene-1 project at Panipat for IOCL
Consulting –
Fixed Price Contracts
Integrated refinery expansion project (IREP)
at Kochi of Bharat Petroleum Corporation
Ltd (BPCL)
Dahej Petrochemical complex of OPaL
Interceptor project of DJB
Mallavaram-Bhopal-Bhilwara-Vijaipur
Pipeline Project (MBBVPL) for GSPL &
Gujarat India Transco Ltd. (GITL)
Mehsana-Bhatinda pipeline project of total
1600 KMs for GSPL
Consulting –
Cost / Rate Reimbursable Contracts
Petrochemical expansion project at GAIL
Vijaipur and GAIL Pata plants
Western onshore redevelopment project for
Mehsana, Ankleshwar and Ahmedabad
Assets of ONGC
Assam gas cracker complex at Lepetkata
for BCPL
* On a consolidated basis as on September 30, 2013
Consultancy and Engineering 54%
Turnkey 46%
30
Consultancy & Engineering Revenue (INR mn)1 Turnkey Projects Revenue (INR Mn)1
Revenue Segmentation Total Income and Growth (INR mn)2
Financial and Operating Track Record
8,442
10,702 11,510
12,274 12,565
5,724
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
7,079 9,385
16,953
24,915
12,703
3,473
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
Consistent growth in Consulting & Engineering Segment
Note: All figures have been taken on a restated consolidated basis; 1Segment wise Revenue does not include Other Income; 2Total Income includes Other Income
17,063
21,903
29,872
39,365
27,734
10,383
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
54% 53% 40% 33%
50% 62%
46% 47% 60% 67%
50% 38%
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
Consulting and Engineering Turnkey
Financial and Operating Track Record
31
EBITDA** Performance (INR mn)*
3,458
5,175
6,614
7,366
5,789
2,063
22%
26%
23%
20%
23%
22%
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
EBITDA (INR mn) EBITDA Margin (%)
Strong EBITDA Margins during FY09 to FY13
* Note: All figures have been taken on a restated consolidated basis
** EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization (does not include Other Income)
32
Consultancy & Engineering Segment Profit (INR mn)* Turnkey Projects Segment Profit (INR mn)*
Financial and Operating Track Record
3,294
4,417
5,019
5,437
5,167
2,064 39%
41%
44%
44%
41%
36%
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
Profit (INR mn) Profit (%)
377
1,008
1,972
2,454
1,105
241
5%
11%
12%
10%
9%
7%
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
Profit (INR mn) Profit (%)
Consistently Healthy Profit Margins in Both Segments
* Note: All figures have been taken on a restated consolidated basis
33
Earnings per Share – EPS (INR)* Return on Net Worth** (%)
Financial and Operating Track Record
9.6
13.5
15.5
19.1
17.1
6.6
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
EPS (Basic and Diluted)
14,815
12,385
15,652
19,743
23,145
25,353
22%
37%
33%
33% 25%
9%
2008-09 2009-10 2010-11 2011-12 2012-13 H1 2013-14
Net worth (INR mn) Return on Networth (%)
Consistently delivering robust returns to shareholders
* Note: All figures have been taken on a restated consolidated basis
**Return on Net worth is Shareholder’s Funds excluding revaluation reserve/ Capital grant received against fixed assets
Strong Dividend Payout History
34
Dividend Distribution (INR mn)*
1,218
6,967
1,956
2,350 2,357
38%
154%
38% 37% 41%
185%
1,060%
100% 120% 120%
2008-09 2009-10 2010-11 2011-12 2012-13
Gross Dividend incl. tax (INR) Dividend Payout including Dividend Tax (%) Dividend Rate (%)
During the Year 2:1 bonus
shares were issued.
Dividend is based on enhanced
capital after bonus
* Note: All figures have been taken on a consolidated basis
Consistent Dividend Track Record
Shareholding Pattern
35
Shareholding pattern of the Company as on December 20, 2013
Promoters 80.4%
Mutual Funds/ UTI 1.4%
Financial Institutions/ Banks 0.7%
Insurance Companies 4.9%
FII 5.6%
Others 7.0%
Strong FII presence amongst Institutional Shareholding
Business Outlook and Strategy
4
220
139
105
39
90
132
58
221
60
89
48 29
104 122
44
China India Middle East Africa Latin America
Oil Refining NG Transmission&Dist. LNG
Sector Total 12th Plan Outlay (INR Bn)
Exploration & Production 2,837
Refinery & Marketing 1,056
Petro-Chemical 173
Total 4,066
37
Global Energy Demand to Grow By 4Bn toe over next 2 Decades Sustained Focus on Hydrocarbon Sector in India
Investments of US$ 224 Bn expected in Indian Oil & Gas Space
Energy and Hydrocarbons
Refineries
LNG re-
gasification
Petro-
chemicals
Fertilizers
Twelfth plan target
Expansion of existing refineries by 50.6 MMTPA
Commissioning of 30 MMTPA of new grassroot
refineries
Capacity to reach 50 MMTPA by 2016-17 from
13.60 MMTPA presently
Ethylene capacity estimated to increase from
3.867 MMT in 2011-12 to 7.087 MMT in 2016-17
Propylene capacity estimated to increase from
4.117 MMT in 2011-12 to 4.987 MMT in 2016-17
Gas based urea capacity to increase from 24
MMTPA at present to 32 MMTPA by 2016-17.
Emphasis on conversion of present naphtha/fuel
and oil based plants to use of natural gas as feed
stock.
Source: BP Energy Outlook 2030 - Jan 2013, World Energy Outlook, 2010 and 2011 Source: 12th Five Year Plan , Planning Commission
in US$ Bn (2010-2035)
12
13
14
15
16
17
2011 OECD Non- OECD
2011 Oil Natural Gas
Coal Non- fossil
Other Tight
Other
Shale
Nuclear
Hydro
Renew.* 2030 Level
(Bil
lio
n t
oe
)
Demand Supply
38
Planned Infrastructure Expenditure (segment wise break up)
Approx $ 1 trillion projected investment in infrastructure in 12th Five
year plan
Power Capacity Addition During 12th Five Year Plan
Renewables include 15,000 MW wind, 10,000 MW solar, 2,100 MW
small hydro and the balance primarily from bio mass
Water Requirement For Various Sectors
688 910
1,072
56
73
102 63
130
52
72
80
813
1,093
1,447
2010 2025 2050
Irrigation Drinking Water Industry Energy Others
Non-Ferrous Metallurgy
3.0 MMTPA of Aluminum and 8.7 MMTPA of Alumina capacity
addition envisaged in 12th Five year plan
Copper demand is projected to grow 8% till 2015-16 is projected at
GDP
HCL, Birla, Sterlite have indicated expansion plans of production
capacities in the coming five years to meet the concentrate by
producing 1.34 million tonnes at the end of 2015-16
Infrastructure and Non Ferrous Metallurgy
Water Demand in km³ (or bcm)
Electircity 31%
Roads and Bridges
12%
Tele- communications
26%
Railways 8%
Irrigation 9%
Water Supply & Sanitation
4%
69,800 2,540 10,897
5,300
30,000 1,18,537
Coal Gas Hydro Nuclear Renewables Total
Source: 12th Five Year Plan , Planning Commission
(MW)
39
Strategy for Future Growth
Focus on core strengths -
design, engineering and
construction
Pursue EPC contracts
Bid for large scale projects
Selectively form alliances
with key equipment
manufacturers
Strengthen presence in
Middle East, North Africa
and South East Asia –
creation of engineering
hub
Formulate entry strategy
for Latin America and
South Asia
Leverage track record
for related diversification
Target specific project
segments and industries
where EIL has a
competitive advantage
Technology and
knowledge development
Strategic alliances for
diversification
JVs and consortium for
EPC and overseas
Long term relationships /
MOUs with clients
Establish alliances and
share risks with strategic
partners with
complementary
resources, skills and
strategies
Develop relationships/
JVs with other EPC
players for bidding in
large projects
Maintain leadership
Expand international
operations
Selectively diversify
Focus on technology
and alliances
Strategic relationships
Road map to become a world class
globally competitive EPC and total solutions
company
Thank You