Beruflich Dokumente
Kultur Dokumente
JULY 2010
Disclaimer
This Presentation has been prepared by the company management on the basis of estimates of the management and information available from published sources. Thi s Presentation is not intended to provide the basis for any investment decision or advice and should not be co nsidered directly or indirectly as a recommendation by the officers or the management of the company. The information contained in this Presentation is selective and not independently verified and is subject to updating, expansion, revision and amendment. This Presentation includes certain statements and projections wi th respect to the anticipated future performance of the Company and as to the market for the company s products. Such statements reflect various assumptions made by the Management of the company ( the Management) concerning anticipated results, which assumptions may or may not prove to be correct. No representatio n is made as to the accuracy of such statements.
Contents
I. Company overview
i. ii. iii. iv.
II.
Industry overview
I. Company overview
Company overview
Market leader in automotive halogen bulbs in India with over 50% market share in passenger vehicles and over 80% in motor cycles Globally competitive and the largest manufacturing facility in I ndia with over 20 years of manufacturing excellence and institutionalized product and proce ss knowledge The manufacturing facilities are approved by both domestic and i nternational OEMs such as Maruti, Tata Motors, Hyundai, Hero Honda, Bajaj Auto & TVS Motors. Manufacturing facilities in both domestic tariff area and specia l economic zone meeting diverse customer requirements Existing capacity of over 60 mn units p.a. in auto halogen bulbs, to be increased by ~25mn unit s over next 3 years Strong International presence with exports to more than 75 count ries. Overseas operations in Europe with over 15% market share in the after market Sustainable competitive advantage - superior process engineering, quality products, skilled man power and lead time in terms of approval for the products by the OEMs Comprehensive product portfolio of halogen bulbs for the automot ive industry
Key milestones
Incorporated in collaboration with Phoenix Electric Japan Quality certification
1991-94
1995-2001
2002-2006
2007-2010
New products
Acquisition of controlling stake by a leading global private equity fund, Actis MOU with Innorex - technology transfer for LED assembly
Re-structuring
Existing Separation of General Lighting Resultant structure
Promoters
Public
Promoters
Public
Promoters
Public
66.06%
33.94%
66.06%
33.94%
66.06%
33.94%
100%
100%
100%
X
Halonix Technologies Ltd (HTL) Halonix Technologies Ltd (HTL) General Lighting Halonix Technologies Ltd (HTL) General Lighting
Manufacturing process
Tube Cutting Length Checking Bridge Making Process Mount Making Process
Sealing Process
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Established
Exports OEM, Exports After Market (AM), Domestic -OEM, Domestic After Market( AM) ,Domestic OEM
Market
Auto halogen lamps: H1, H3, H4, H7, H8, H9, H11, HS1, M5,
Products
Over 60 mn pcs
Bajaj, Ford, GM, Hero Honda, Hyundai, Maruti, M&M, Tata Motors
# As part of the Company restructuring, the production lines of Dehradun plant are being shifted to Noida A1
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Products overview
Bulb Bulb H4 H4 H1 H1 H7 H7
Bulb
Description
Dual filament
Vehicles
Four Wheelers
Four wheelers
Four wheelers
Application
Head lamp
Head lamp
Head lamp
Markets
Exports (AM)
Exports (AM)
Volts
12 and 24
12 and 24
12
13
Bulb
Description
Base designed to prevent corrosion Single/ double filaments to suit all requirements
Single filament lamps Have a special base which prevents from corrosion
Vehicles
Four wheelers
Four wheelers
Application
Head lamp
Fog lamp
Markets
Exports (AM)
Exports (AM)
Volts
12 14
12 and 24
12
Bulb
Description
Dual filament
Vehicles
Two wheelers
Two wheelers
Four wheelers
Application
Head lamp
Head lamp
Markets
Domestic (AM)
Volts
6 and 12
12
12
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Line leaders -6 Sigma black belt certified 20 Quality circles and workforce uses 7QC tools
High quality equipments imported from Germany for optical photometry Low PPM defect levels at customer end
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Domestic
After market (including private labeling)
180 exclusive dealers for own brand sales across India with substantial market share Preferred supplier for leading after market players also
OEMs
Exports
After market (including private labeling)
Presence across five continents Representatives in Iran, USA, Greece , Chile, Saudi Arabia, Italy, Belgium etc
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Other major players include Philips and Osram, who import from their global manufacturing base
With the Indian auto revolution & more global auto players putti ng up manufacturing base in India, the Company is already in process of accreditation with the new entrants Some of the recent approvals which would help the Company s growth going forward are
Nissan India domestic sale 2009 Hyundai India export sale in 2010 Tata Motors Supplies for Nano
Source: Company
Head start in having OEM approvals which has a long lead time
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J&K 16 HP 16 Punjab 16 Haryana 16 Delhi 4 Rajasthan 12 UP (W) 16 UP (W) 11 Bihar 8 Gujarat 12 Jharkhand 10
The Companys brand is sold through 180 exclusive first level distribution outlets Private labeling for various leading players in India Supplies to OEMs for their after market use
Assam
M.P. 8
W.Bengal 9
Four wheelers H4 Two wheelers M5 and HS1 Stop & Tail lamp
Maharashtra 20
Orissa 10 Chatishgarh 3
A.P. 6
Customers are quality and price conscious, giving the Company an edge over unorganized players
Exclusive Distributors
Karnataka
Quality products with a pan India distribution network resulting in a significant market share
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Exports
The manufacturing facilities are approved by International OEMs The Company has presence in Europe through offices and warehouse s which helps in meeting customers requirement on short notices Over 20% of Exports are under own brands and balance being sold under Private labeling Key products being exported - H4, H7, H8 and H9 The Company exports to 75 countries globally European markets constitute significant share of the total expor t revenues for the Company
Major automotive aftermarket players in Europe are the customers of the Company Products of the Company enjoy over 15% share of European after market segment Germany, France and Luxembourg are the key markets for the Compa ny
Ramping up its export capacity to cater to large demand of its p roducts in the international markets
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Exports (cont)
Company is enhancing its product portfolio and expanding its pre sence in other geographies
Product portfolio to include high value added 9000 series haloge n bulbs for US markets Enhance its supplies to OEMs in process of obtaining empanelment from major International OEMs Strengthen customer relationships Create higher visibility by participation in Auto industry trade shows
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Fiscal incentives
Excise duty
Plant 59A and plant 59D 100% excise duty exemption on export sales due to presence in Noida export processing zone
Custom duty
Plant 59A and plant 59D 100% custom duty exemption on imports due to presence in Noida export processing zone
Income tax
Plant 59D Exemption u/s (10 AA) of the Income Tax Act due to presence in Special economic zone 100% - up to FY10 50% - FY11 to FY15
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Automotive lighting
Lighting
Exterior lighting
Halogen lamps High Intensity Discharge lamps (HID) Light Emitted Diode (LED) Incandescent lamps Light Emitted Diode (LED)
Interior lighting
Halogen lamps
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Fog Lamp
Additionally, as per the regulations, any new car should also have 2 head lamps as spares (known under CMVR) Typical lamps requirement in a two wheeler is
Parking
Demand
The growth in the OEM segment is co -related to growth in the auto industry OEMs for their existing models, new vehicle launches and International OEMs launching models in India After market is a result of total vehicles population in the country India is expected to see substantial growth in after market as vehicles sales witnessed accelerated growth from late 90 s
Key players
Philips, Osram and Halonix
Source: Company
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Halonix Ltd
Competitor 1
Competitor 2
Competitor 3
Others
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Total population More than 3 year old More than 5 year old
* assumed useful life of 15 years
Total population More than 3 year old More than 5 year old
** assumed useful life of 10 years
High growth in addressable business segments with expanded capac ity would augur good for growth
Source: SIAM/Enam research
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OEMs
Demand for HS1 is expected to move in line with ~ 1 mn pieces per month by end of FY11 due to expected sales of two wheeler crossing ~10 mn p.a. by FY11 (Source: SIAM) Increased demand for combination lamps H1 and H7 (replacement fo r H4) and H3 (fog lamp), which were earlier used mainly in premier cars, now being adopted by most of the car models
The after market in passenger vehicles is expected to be dominat ed by high wattage bulbs namely H4 -100/90 watts in both 12 and 24 voltages Currently, the HS1 after market is ~1.0 mn pieces per annum and is likely to double in the next year. After market demand for HS1 likely to pick up as life of the lamps introduced in Indian markets 6 years ago is expected to end soon
After market
H7 is a lamp with a short life of 2 -3 years. As H7 was introduced recently after market demand is expected to emerge after two years
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Growth strategy
Focus on key markets Product portfolio Strengthen OEM relationships
OEM relationships
Product portfolio
Key markets
Reinforce relationships with OEMS Focus on approvals from International & domestic OEMs Marketing & brand awareness
Planned capacity expansion of H4, H7 & HS1 over next three years Enhancing Product Portfolio
Consolidate market share in fast growing domestic auto markets Establish stronger presence in North America, Latin America and Europe
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