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Everest Kanto Cylinders Ltd. Market leader and pioneer in the high pressure cylinder industry in India with a strong global footprint. Overview. A pioneer and market leader in the industrial and Compressed Natural Gas (“CNG”) cylinders space in India…. . Overview.
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Everest Kanto Cylinders Ltd. Market leader and pioneer in the high pressure cylinder industry in India with a strong global footprint
Overview A pioneer and market leader in the industrial and Compressed Natural Gas (“CNG”) cylinders space in India…. Overview Group holding structure • Everest Kanto Cylinder Ltd., • India (Listed) • EKC Industries Co. Ltd., Thailand • 100% • CC&L. Ltd., • India • 72.65% • EKC Industries Co. Ltd., China • 100% • EKC International FZE, Dubai • 100% • EKC Europe Gmbh, • Germany • 100% • EKC Hungary Kft, • Hungary • 100% • CP Industries Holdings Inc., • USA • 100% Company ownership structure (1) • Source: Company, BSE • As on Dec, 2012 • 1 USD = INR 44.5 as on march 31, 2011 • 1 USD = INR 50.87 as on march 31, 2012
The Journey A business built brick by brick over the last 34 years… • Development of CNG cylinder for the markets • Supply of CNG Cascades • Export to European countries • Incorporation of Everest Kanto Cylinder (P) Limited • Commencement of production at Dubai Plant • Commencement of exports to Gulf countries 2004 2005 1978 1981 1986 1988 1998 2001 • Listing of Equity Shares • Gandhidham unit goes onstream • Commissioning of Tarapur Plant • More than 150,000 cylinders produced and dispatched • First commercial production at Aurangabad Plant Source: Company
The Journey A business built brick by brick over the last 34 years… • Setting up of marketing and product development subsidiary in Europe • Closure of Aurangabad plant • Doubling of Capacity in Dubai and initiation of China Project • Acquisition of majority stake in a gas distribution company 2007 2008 2009 2010 2011 2012 • Listing of Equity Shares • Gandhidham unit goes onstream • Acquisition of CPI, U.S.A. • Commencement of production in China • Setting up of a marketing subsidiary company in Thailand • Commencement of production at Kandla (SEZ) Plant • Commencement of production at Gandhidham under the billet piercing process Source: Company
Products and Applications …. in the industrial, CNG and Jumbo cylinders space… • Wide range of standard products • Type I, II, IV cylinders • Capacity: 1 litre to 3,000 litres • Pressure: 150 to 400 bar • Customized products as per customer requirements Wide Range • Auto: Public & private transport • Industrial: Metal, power, food & beverage etc. • Healthcare: Respiratory aids, MRI, Cryosurgery • Special: Fire fighting, diver etc. • Defence Applications TPED - ADR/RID/IMDG ISO: 9809 • Proven track record of delivering high quality products • Stringent quality control on raw materials • Each cylinder goes through specified testing at every stage of production Quality Control Technology • Wide range of technologies • Type I: Seamless steel tube, steel plate deep drawing and billet piercing processes • Type II, IV: Composite winding (EHA technology) Source: Company
Global Presence ….. and a strong foothold on key markets globally,… Global presence Manufacturing facilities in 4 countries Regulatory approvals in and exports to over 25 countries Marketing offices in 11 countries Germany Hungary Czech Republic USA China Dubai Colombia Thailand India Brazil Argentina Manufacturing plant Marketing offices Exports Source: Company
Products …to deliver a wide range of superior quality high pressure gas cylinders suitable for applications across industries… CNG Cylinders Industrial Cylinders Jumbo Cylinders Source: Company Gas, Cu. M. 7
Products contd… CNG Cascades Jumbo Skids Allied Products Source: Company Gas, Cu. M.
Manufacturing Process ….manufactured with time tested processes and new age technology… Manufacturing processes • EKC uses three manufacturing processes for high pressure cylinders Manufacturing processes start with forming the one end closed cylinder shells….. 1 Seamless Tubes (1) 2 Billet Piercing Process Deep Drawing Process (Cold forming) 3 • Annealing, Grit blasting & Soaping Annealing, Grit blasting & Soaping Deep Drawing Deep Drawing Cup Forming Plate Cutting Billet Storing Cutting Heating Piercing Drawing End Sawing Seamless Tube Tube Cutting Surface Inspection Induction Heating Bottom Forming Bottom Processing • Seamless tube cutting • Induction heating • Bottom forming through hot spinning process • Bottom processing for industrial cylinders • Billet Cutting • Heating (induction furnace or natural-gas-fired ) • Piercing with a mandrel in a piercing press. • Extrusion through a series of roller dies • Circular blank from steel plate • Annealed, shot blasted and lubricated • Flat steel blank drawn into a cup through a hydraulic press by deep drawing process • Above two steps repeated 2-3 times, followed with end sawing …. followed with a common process to manufacture high pressure seamless gas cylinders Air Leakage Testing Externals Hot Blasting Water Capacity Check Hydro Stretch Testing Internals Hot Blasting Induction Heating- Neck Neck Forming Machining Threading Heat Treatment Stamping Weighing Ultra Sonic Testing Vacuum Cleaning Dispatch Painting • Billet piercing and deep drawing are two unique technologies employed by only EKC in India • The technologies employ alternate manufacturing processes and different forms of raw materials to manufacture high pressure seamless cylinders • Billet Piercing • With focus on the growing industrial cylinder demand, EKC has set-up the billet plant at Gandhidham with a capacity of 2,50,000 per annum to produce cylinder shells through billet piercing technology • Billets, unlike steel tubes, are easily available worldwide • These cylinders have a specific customer base of multinational companies who prefer to use tube based cylinders for industrial gases. • Steel Plate Deep Drawing • EKC has set up a 2,50,000 CNG cylinders plant in the KandlaSpecial Economic Zone (“KASEZ”) using steel-plate deep drawing process • These cylinders are lighter in weight, better quality and command premium over other cylinders • Steel plates (raw material) are available indigenously • CNG vehicle manufacturers are showing increasing preference to plate cylinders as vehicles with these cylinders offer better fuel efficiency Source: Company (1) Oldest and most common process
Manufacturing Facilities …deployed at state-of-the-art manufacturing facilities in India… Manufacturing footprint, India • Huge location advantage: Located on the west coast of India and connected to major ports of UK, Australia, Middle East and East Asian economies Europe USA Gandhidham Middle east Kandla Thailand, Singapore etc. Africa Tarapur • Gujarat ports Gateway to land locked states in India Source: Company 10
Manufacturing Facilities Contd… …. USA, Dubai and China…. Manufacturing footprint, globally Capacity to manufacture c.1.5 mn. cylinders per year Capacity Location Technology Well positioned to cater to cylinder demand globally owing to well located facilities EKC is the first and the only player to adopt steel-plate deep drawing process and billet piercing process technology in India Source: Company (1) Capacity to be increased 11
Quality Management ….with strong emphasis on quality … Quality management systems • The technically demanding nature of EKC’s products requires that many quality and integrity standards be met. EKC has acquired and maintains an impressive portfolio of highly regarded manufacturing certifications, some of which are listed in the following table: Snapshot of select certifications • This portfolio of certifications creates significant competitive advantages for the Company, as many OEMs and government contractors will only purchase cylinders from certified manufacturers such as EKC • The Company views its certifications as a key differentiator and invests significant time and resources to maintain the portfolio and to ensure that employees throughout the organization are among the best qualified in the industry Source: Company
Customers ….resulting in an enviable customer base Blue chip customer base, select customers Industrial cylinders CNG Cylinders , OEMs Specialcylinders Cylinder cascades • EKC has an impressive blue-chip customer base and long -standing relationship with key customers across sectors • Exclusive partner to many auto and industrial OEMs • Only player to have developed mission critical cylinders for defence sector in both India and USA • Due to the potentially hazardous nature of the storage and usage of the cylinders, the customers rely heavily on EKC owing to its reputation for reliability, design capability and price • The Company works closely with customers in development of cylinders according to the changing requirements • Given the concerns of the automotive sector in reducing the weight of the cylinders, EKC Group is continuously working with various OEMs in developing cylinders made of composite material Source: Company 13
Business Development Contd… …including participation in industry associations, conferences and trade shows… Selected industry association memberships and trade shows Supplementing their sales efforts, EKC along with subsidiaries is members of multiple industry associations and regular attendees at several industry conferences and trade shows each year Membership, industry associations EKCat trade shows China Malaysia Auto Expo, Delhi Ukraine Dubai Argentina Source: Company 14
Organisation Structure …and a well charted organisation structure… Organisation structure, India Board of Directors Chairman & Managing Director P. K. Khurana Director Pushkar Khurana Director Puneet Khurana Director (Technical & Projects) P. M. Samvatsar CFO Vipin Chandok President (Planning & Development) G. P. Virdi VP Marketing VP International Business VP QA Projects COO (Ghdm / Kand) COO (Tarapur) Engineering Company Secy. Corporate Head HR Finance Controller Purchase GM Projects GM Marketing Engg. Services Tarapur / Ghdm GM - Accounts Source: Company
Everest Kanto Cylinder LtdA Clean energy solution company Presentation on Plate Cylinders
Product Range STORAGE CASCADES CNG CYLINDERS FOR ONBOARD VEHICLES BACK
OEM Market BACK