Synergy Green Industries Limited
Investor Presentation
SME IPO O N BSE SME
Company Overview
1
Shirgaokar Group
The Ugar Sugar
Work Ltd.
Sugar Industry
Flagship company of
Shirgaokar Group
A NSE and BSE listed sugar
company, having largest ‘single
location’ crushing capacity in
India of 18,000 TDP.
S. B. Reshellers
Pvt. Ltd.
Foundry Industry
Incorporated in 1978 at
Kolhapur, specifically planned
for reshelling of sugar mill
rollers and manufacturing of
new rollers.
Over the period of 29 years
the company, it has grown to
become one of the largest
reshelling unit in the world.
The Pavilion Hotel,
Kolhapur
Hospitality Industry
A two-star hotel in Kolhapur
having 29 rooms.
iResearch
Services
Research & Consulting
iRS is an offshore research
centre, providing tailor-
made, cost-effective and
cutting-edge information
research outsourcing services.
The organisation operated in
KPO space & caters to customers
located in USA, Europe & Asia-
pacific.
SIGL was incorporated under the aegis of Shirgaokar Brother’s Group, having more than 80 years of experience and
cumulative 1200 Cr turnover in various industries like:
Promoters Background
Name &
Position
Mr Sachin R Shirgaokar (52 Yrs)
Managing Director
Mr Sohan S Shirgaokar (37 Yrs)
Jt. Managing Director
Mr V Srinivasa Reddy (48 Yrs)
Executive Director
Academics BE Mechanical, MBA from USA B Com & MBA from Shivaji University B. Tech (Mech), M. Tech (Mfg)
Executive MBA from IIM Bangalore
Career
SGIL Role
Social
Actively involved in managing the business
from inception. His strategy & leadership ability
played vital role in establishing the business
and achieving consistent growth.
Held Chairman's position at CII’s Sothern
Maharashtra Zonal Council & GOSHIMA and
Council member of IIF
Joined S.B Reshellers in 2005 and managing
the business as Joint MD. Board of director
at Ugar Sugar Works Ltd as well.
Actively involved in managing the business
from inception. He has played pivotal role in
building the organization which works with
passion, integrity and commitment.
Convener of CII’s family business
network, Board member of Indo American
Chamber of commerce Pune and Invitee
director of Kolhapur Engg Association
Worked for Simplex Castings, U.P. Steels and
L&T at various capacities in establishing
plants and managing operations.
Actively involved from inception in setting up
the plant, marketing the products, team
building, product development and presently
managing the operations.
Delivering business lectures & writing article
for various associations and active member
of IIF
Started with Sanderson & Associates, New York
and joined S.B Reshellers in 1991, managing
the business as MD. Board of director at Ugar
Sugar Works Ltd as well.
2010
Incorporated
in Kolhapur,
Maharashtra
2011
Commenced
construction
of green field
foundry
with capacity of
12,000 TPA
2012
Commenced
production
2013
Successfully developed products
To Enercon & Regen Powertech
2015
Started business
with Gamesa
(Now Siemens Gamesa)
2016
2018
Getting listed on
BSE Emerge platform
with an IPO of 26.46 Cr
Our Journey2017
Crossed benchmark of
10,000 TPA production
and 100 Cr+ revenue
Started business
with Vestas
(Global leader in Wind)
Infrastructure
A l l s t a t e o f t h e a r t
e q u i p m e n t s f r o m l e a d i n g
m a n u f a c t u r e r s i n t h e w o r l d
S h o p F l o o r
A d m i n
B e s t i n C l a s s
I n f o r m a t i o n
T e c h n o l o g y
A T A S
S i m u l a t i o n
C o m p l e t e
Q u a l i t y T e s t i n g
f a c i l i t i e s
Q u a l i t y
C e r t i f i c a t i o n s
I S O 9 0 0 1
I S O 1 4 0 0 1
I S O 1 8 0 0 1
OUR
PRODUC TS
Wind & Gear Box Castings
H u b : 8 M T B a s e F r a m e : 1 0 M T
P l a n e t C a r r i e r
3 . 5 M T
OUR
PRODUC TS
Casing 17 MT Diffuser 18MT
Mining & Pumps
Main frame 4.5MT Upper frame 3.0MT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY13 FY14 FY15 FY16 FY17 FY18
12
,00
0 M
T
SGIL: Capacity 9
% 29
%
56
%
68
%
97
%
81
%
12
,00
0 M
T
12
,00
0 M
T
12
,00
0 M
T
12
,00
0 M
T
12
,00
0 M
T
Capacity Utilization Revenue Segments
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY15 FY16 FY17 FY18
Wind Gear Box Non-Wind
OUR
CLIENTELE
10
Wind Gear Box
Mining
Pumps
Industry Overview
3
Bill Gates Predictions for future
1. Artificial Intelligence
2. Clean Energy
3. Bio Technology
0
20,000
40,000
60,000
80,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Indian Annual Installed Wind Capacity (MW) 2008-18
Global Annual Installed Wind Capacity (MW) 2008-172
6,8
50
38
,47
5
39
,06
2
40
,63
5
45
,03
0
36
,02
3
51
,67
5
63
,63
3
54
,64
2
52
,49
21
,76
2
5,4
00
3,4
72
2,2
98
2,0
90
1,6
993
,19
7
2,3
49
1,5
65
1,4
85
1,6
63
Wind EnergyIndustry Outlook
During 2017, renewable investments exceeded
conventional energy on account of competitive
prices and string environmental
For past 4 years global installations are stable with 50
GW plus installations
India has shown 50%+ annual growth during 2014-17
During 2017-18 there was a temporary drop in
installation due to introduction of reverse bidding
system from feed-in-tariff.
With discovery of competitive prices in reverse
bidding system, Indian annual wind installations are
projected to reach 10,000 MW in the next two years.
Top 10 Global wind turbine manufacturers
Customers On
Board
Customers
approved SGIL
facilities and RFQ’s
under discussion
Analysis of Customer Base
Vestas, DenmarkØLargest manufacturer in the world
with 9 GW of annual installations and Rs
2,000 Crore worth casting demand
ØPresently Synergy Green is the only
supplier in India and potential business
opportunity to cross Rs 200 Crore per
annum (10% Share)
ØSales are growing from Rs 7.3 Crore FY
16-17 to Rs 54 Crore in FY 17-18 and
projections for FY 18-19 stands at Rs 80
Crore.
Siemens Gamesa, GermanyØSecond largest manufacturer in the
world with 7.5 GW of annual
installations and Rs 1,500 Crore worth
casting demand
ØSynergy is having 30% of Indian share
with this customer. FY 16-17 sales was
Rs 45 Crore and has potential to cross
Rs 100 Crore business
Analysis of Customer Base
GE, Enercon, Nordex,
Senvion & EnvisonØThese five manufacturers
cumulatively got 16.8 GW of
annual installations and has
got Rs 3,500 Crore casting
demand
ØAll above customers audited
facilities and product
development to be taken up.
These customers offer a
potential opportunity of Rs
350 Crore (10% share)
ZF & Siemens Gear Box
ØLeading wind gear box
manufacturers in the world and
holds 80% Indian market share.
ØSGIL maintains preferred
supplier status with both
customers and has got
opportunity to cross Rs 100 Crore
business
Non Wind customersØTerex (Mining): US based
$8bn company and supplying
for the past 5 years. Present
business is Rs 25 Crore and
has got opportunity to
double the same.
ØPump Industry: Working
with all leading players like
Xylem, Kirloskar, WILO &
Jyoti and offers Rs 25 Crore
annual business
Wind Turbine Casting IndustryGlobal wind casting market was USD 1.81B in 2017 (Rs 12,500 Cr).
China is the largest player having nearly half the market share. While the share of Indian foundries is under 10%.
Major Indian Foundries
A) Synergy Green Kolhapur: 30,000 MT/Annum (Dec 18).
B) SE Forge (100% Subsidiary of Suzlon): 40,000 MT/Annum (SEZ)
C) Bradken (Formerly L&T) : 30,000 MT/Annum (Captive)
Bill Gates Predictions for future
1. Artificial Intelligence
2. Clean Energy
3. Bio TechnologyGlobal & India Casting Industry
Global Casting Demand: $200 Bn & $20 Bn India
Wind Casting Demand : $2 Bn & $0.2 Bn India
Europe:
Higher Labour costs
Flat casting Demand
China:
Worlds largest producer
Increasing labour costs
Appreciating Yuan
Govt Subsidy withdrawal
Policy Concerns
US Trade War
India:
Stable Economic Growth
Predictable policies
Worlds 2nd Largest production
Capacity Constraints
USA:
Not much presence in
manufacturing & Casting
12
Renewable are on main stream with
competitiveprices
India to reach 10 GW installations
during next twoyears
Made in India Wind Turbines are
most competitive in the world
and being converted as
manufacturing hub by Major
global players
THE ROAD
AHEAD
IPO Overview
4
Particulars Details
Issuer: SYNERGY GREEN INDUSTRIES LIMITED
Offer Type: INITIAL PUBLIC ISSUE
Price Per Share:Rs. 70/- per equity share( including a
premium of Rs. 60/- per share)
Minimum Lot size:2,000 Equity Share and Multiples
thereof
Issue Size:
37,80,000 Equity Shares of Face Value
of 10/- each fully paid for cash at a
price of 70/- per Equity Share(including
a premium of Rs. 60/- per share)
aggregating to 2646.00Lakhs
Stock Exchange: BSE Limited (SME)
Issue Structure:
Net issue to public --- 35,88,000 Equity
Shares
Market Maker Portion --- 1,92,000
Equity Shares
Issue Manager: SWASTIKA INVESTMART LIMITED
Market Maker: Beeline Broking Limited
Issue
Deta ils
Particulars Rs. In lakhs
Purchase of Plant and
Machinery1,204.75
Working Capital Requirement 1,200.00
General Corporate Purpose 61.25
Public Issue Expenses 180.00
Gross Issue Proceeds 2,646.00
Less: Issue Expenses 180.00
Net Issue Proceeds 2,466.00
45.35%
6.81%
2.31%
45.53%
Objects of Issue
Purchase of Plant andMachinery Working Capital Requirement
General Corporate Purpose Public IssueExpenses
CAPACITY INVESTMENTS
SL Expansion Objective 2018-19 2019-20 2020-21
1
Capacity increase
from 15,000 MT to
40,000 MT
Rs 500 Cr
Revenue25 10
2Partial In-House
machining process
To improve
profitability20 20
Total 25 30 20
Note: All investment requirements will be met through
IPO proceedings, Internal accruals and Bank borrowing
Annual Production (MT)
1,045
3,510
6,700 8,100
11,650 9,700
13,500
18,000
25,000
30,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Actual figures
Projected figures
Financial Overview
2
FINAN C IAL
PERFORMAN C E
9.54
37.24
63.85
82.59
120.67
103.12
0
20
40
60
80
100
120
140
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
Revenue (Rs Crore)
-1.85
2.16
5.60
13.58
18.53 16.75
-5.00
-
5.00
10.00
15.00
20.00
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
EBIDTA (Rs Crore)
-19.4%
5.8%8.8%
16.4% 15.4% 16.2%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
EBIDTA (%)
-9.05 -9.02
-6.85
1.55
4.86 4.66
-10.00
-8.00
-6.00
-4.00
-2.00
-
2.00
4.00
6.00
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
Net Profit (Rs Crore)
FINANCIAL PERFORMANCE
mIncome Statement Summary (INR Crore)
Particulars31st Mar
2018
31st Mar
2017
31st Mar
2016
31st Mar
2015
31st Mar
2014
31st Mar
2013
Total Revenue 103.12 120.67 82.60 63.85 37.24 9.54
Total Expenses 100.22 116.59 81.54 71.53 46.52 20.31
PBT 2.90 4.08 1.05 -7.69 -9.28 -10.77
EBIDTA 16.75 18.03 13.58 5.60 2.16 -1.86
NPAT 4.66 4.86 1.55 -6.85 -9.02 -9.05
Cash flow Statement Summary (INR Crore)
Particulars31st Mar
2018
31st Mar
2017
31st Mar
2016
31st Mar
2015
31st Mar
2014
31st Mar
2013
Total Cash From (For)
Operating Activities14.85 20.64 7.52 6.44 -1.02 -0.48
Total Cash From (For)
Investing Activities-6.20 -8.61 -3.36 -1.92 -2.45 -8.85
Total Cash From (For)
Financing Activities-8.66 -12.04 -4.18 -4.47 3.43 9.31
Net Increase
(Decrease) In Cash-0.02 -0.01 -0.01 0.04 -0.04 -0.02
Cash and Cash
Equivalents-End1.23 1.11 1.51 0.65 0.42 0.32
Balance Sheet Summary (INR Crore)
Particulars31st Mar
2018
31st Mar
2017
31st Mar
2016
31st Mar
2015
31st Mar
2014
31st Mar
2013
Total Non Current
Assets40.07 39.58 35.73 38.20 41.91 44.87
Total Current Assets 68.28 52.20 46.80 30.66 23.24 14.72
Total Current
Liabilities71.73 60.20 54.87 43.64 29.12 21.15
Total Non Current
Liabilities27.66 32.28 33.22 32.33 36.34 31.49
Total Shareholders’
Funds8.97 -0.70 -5.56 -7.11 -0.31 6.95
0
0.5
1
1.5
2
2.5
3
3.5
FY13 FY14 FY15 FY16 FY17 FY18
0.2
0.9
1.8
2.6
3.5
3.1
Asset Turns
0
10
20
30
40
50
60
FY14 FY15 FY16 FY17 FY18
58
30
49
30
21
Working Capital Days
FINAN C IAL
PROJECTIONS
150
210
294
411.6
0
50
100
150
200
250
300
350
400
450
FY 18-19 FY 19-20 FY 20-21 FY 21-22
Revenue (Rs Crore)
22.50
32.55
47.04
65.86
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
FY 18-19 FY 19-20 FY 20-21 FY 21-22
EBIDTA (Rs Crore)
15.00%
15.50%
16.00% 16.00%
14.40%
14.60%
14.80%
15.00%
15.20%
15.40%
15.60%
15.80%
16.00%
16.20%
FY 18-19 FY 19-20 FY 20-21 FY 21-22
EBIDTA (%)
6.15
10.55
18.71
30.33
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
FY 18-19 FY 19-20 FY 20-21 FY 21-22
Net Profit (Rs Crore)
SYNERGY GREEN INDUSTRIES LIMITED
T H AN K Y O U INVESTORS