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ACIL LimitedA Broad Overview……….
Page 2
Table of Contents
S. No. Particulars
1. Executive Summary
2. Industry Analysis
3. Business Overview
4. Product Portfolio
5. Customer Base
Page 3
Executive Summary Industry Business Overview Customers Products
Executive Summary
Business Overview
Shareholding Structure
► Established in 1997, ACIL Ltd. is engaged majorly in manufacturing of high precision engineering automotive components viz.
crankshafts. It also manufactures connecting rod, wheel hubs and steering knuckles.
► It has the capacity to manufacture crankshafts of wide range from 0.5 to 150 kg.
► ACIL’s plant is located in IMT, Manesar, a well developed industrial area in Gurugram, Delhi NCR.
► As of August 8, 2018 ACIL employed ~539 employees ( approx. 30% on regular and 70% on contract basis)
► For the financial year ending 2018, the company generated INR 1446 Mn in net sales and INR 112 Mn in EBITDA as per the audited
financial statements.
ACIL’s is amongst the
largest Crankshaft
machining plants in
India
Market Leader
1
Customer Base
Diversity
Company is selling its
products to no. of
OEMs for tractors,
HCVs/LCVs as well as
4/2 wheelers in the
Indian market
2
Manufacturing
Capabilities
Capable of Machining
high precision
Crankshafts having
finer tolerances
3
Key Investment Consideration
Alliance Integrated
Metalliks – 46%
Amtek Auto – 44%
Investors – 10%
ACIL Limited
Promoter Non Promoter
Page 4
Executive Summary Industry Business Overview Customers Products
Major Highlights:
► Crankshaft being an engine component requires utmost precision. ACIL has the proven capability
► Company has 16 lines of production
► High-end Machinery and Equipment from reputed manufacturers like Toyoda and Komatsu (Japan), Heller and
Landis (Germany) etc
► Long term relationships (over 10 years) with key OEMs like John Deere, New Holland Tractor, Swaraj Mazda,
Maruti Suzuki India & Honda Motorcycles & Scooters.
► EBITDA positive financials;
► Significant growth & profitability improvement opportunity based on existing installed capacity and customer base;
► Robust short to mid term outlook for automotive industry
► Excellence Award in recognition of Partner-level performance received from John Deere for three years
consecutively (2014-2016)
► Achieved Silver Award in 2015 and Gold Award in 2016 from Frost & Sullivan Indian Manufacturing
Excellence Awards.
Page 5
IndustryExecutive Summary Business Overview Customers Products
Automobile Industry Overview - Global
41.22 39.83 41.36 41.97 44.55 47.05 49.92 53.2 52.84 47.77 58.24 59.9 63.07 65.44 67.53 68.6 72.11 73.4617.17 16.48 17.64 18.69 19.94 19.67 19.3 20.06 17.89
13.99
19.34 19.92 21.17 21.86 22.22 21.92 22.53 23.85
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Worldwide automobile production (million units)
Passenger vehicles Commercial vehiclesSource: Statista
• India is the 5th largest vehicle manufacturer globally after China, USA, Europe and Japan.
• The automotive manufacturing industry comprises production of commercial & passenger vehicles, three & two-wheelers.
• The total production volume grew at a CAGR of 5.5% and the total sales grew at a CAGR of 5.9% from FY12 to FY 18
7
6
22
25
3
Automobiles
Iron & Steel
Consumer Durables
Electronics
Coal
Contribution to GDP in FY2016 (in %)
Indian GDP in
2016:
2.264 Trillion
Indian Automobile
contribution to
GDP in 2016 :
$158.48 Billion
Largest tractor
manufacturer
5th largest heavy
truck manufacturer
4th largest
passenger car
manufacturer
2nd largest bus
manufacturer
2nd largest two
wheeler
manufacturer
5th largest
commercial vehicle
manufacturer
Indian Automobile Industry
Page 6
IndustryExecutive Summary Business Overview Customers Products
Auto Component Industry Overview - India
22%
4%
45%
4%
1%
5…
8%8%
2% 2%
Auto component consumption by OEMs
Two wheelers
Three wheelers
Passenger vehicles
LCV (2 to 7.5T)
SCV (<2T)
MCV (7.5 to 16T)
HCV (>16T)
Tractors
Backhoe loaders
Others
Source: ACMA
OEM's 50%
Exports 28%
Replacement
Market22%
Market Segmentation of Auto Component Industry Turnover
Source: Dun & Bradstreet
2013-14 2014-15 2015-16 2016-17 2017-18P 2018-19P
22132397 2551 2730
30603445
2471 2624 2818 30143359
3765
400 444 460 465 501 545
Automotive components market trend (INR Bn)
Domestic production Domestic sales Exports
Source: Crisil
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
1883 2046 2160 21172348
25562922
1580 1619 1633 1502 16631847
2191
303 427 527 615 685 709 731
Automotive components aggregate turnover (INR Bn)
Aggregate Turnover Domestic trunover Exports turnover
Source: Crisil
Page 7
IndustryExecutive Summary Business Overview Customers Products
Growth Drivers of Auto Component Industry
Demand side drivers
• Robust growth in domestic automotive industry
• Increasing investment in road infrastructure
• Growth in the working population and middle class income to drive the
market
Supply side drivers
• Competitive advantages facilitating emergence of outsourcing hub
• Technological shift; focus on R&D
• Cheap Labor advantage
Policy support
• Establishing special auto parks and virtual SEZs for auto components
• Lower excise duty on specific parts of hybrid vehicles
• Policies such as Automotive Mission Plan 2016-26, Faster Adoption &
Manufacturing of Electric Hybrid Vehicles (FAME, April, 2015), NMEM*
2020, likely to infuse growth in the auto component sector of the country.
Page 8
Business OverviewExecutive Summary Industry Customers Products
Manufacturing Facility
Manufacturing Facility
Manesar
▪ Land Area : 7875 square mtrs
▪ Head Count : 539
▪ 70% contractual labour and 30%
regular employees (Approx.)
▪ Co-ordial labour relations; no trade
union
Page 9
Business OverviewExecutive Summary Industry Customers Products
Manufacturing Facility & Infrastructure
► Facility is equipped with best in class machinery and equipment with
dedicated machining Lines for customers
► In-house tool room facility equipped with tool & cutter grinders,
Broach Sharpener, Lathe, Milling Machine & Surface Grinders
► Fully automated machining lines with Hydraulic loaders to
load/offload heavy and highly precision components
► For all Key Processes, facility is equipped with world class machines:
► Special Pin & Journal Milling Machine from Komatsu (Japan)
► Journal Grinding Machines from Toyoda (Japan)
► Pin Grinding Machines from Toyoda (Japan)
► Crack detection machine from ITW
► Induction Hardening Machine from EMA (India)
► Heat treatment facility have tempering furnace
► HMC;s (Japan)
► Standard Room equipped with CMM, Profile Projector, Adcole
Gauge, Slip Gauges, Finish Tester & Contour tester
► Testing Lab equipped with Hardness tester, Millipore tester.etc.
► Utilities equipped with Generators for power back up, ETP & STP
Pictorial View
Production Shop floor
Pin Milling Tempering Furnace
Crack Detection Induction Hardening
Key Equipment Capabilities and Edge
Page 10
Business OverviewExecutive Summary Industry Customers Products
Awards
Appreciation for successful completion of Lean Six Sigma
Project from John Deere
Appreciation for Productivity Improvement on Conrod
Line from John Deere
Appreciation for reduced Customer PPM from John
Deere
Achieved Silver Certificate of Merit from Frost & Sullivan
India Manufacturing Excellence Awards
Appreciation letter received from Customers for Good Quality and Delivery Targets
Page 11
Business OverviewExecutive Summary Industry Customers Products
Value Chain for ACIL
FOD Turning
PIN & JOURNAL
MILLINGTail End Turning
Facing & Centering
START
To customers
OIL HOLE DRILLING JOURNAL GRINDINGINDUCTION
HARDENING)
PIN GRINDING
T.E. & FLANGE HOLE
DRILLING TAPPING &
KEY MILLING
BALANCING LAPPING
Raw Forging
Raw Material
Crankshaft
Page 12
Business OverviewExecutive Summary Industry Customers Products
Value Chain for ACIL
Rough Milling
Bolt Hole drilling,
Reaming, Spot FacingFinish Milling
Grinding
START
To customers
Two Spindle
TorqueingGrinding
SEMI FINISH
BORINGFine Boring Honing Big End
Raw Forging
Raw Material
Connecting Rod
Page 13
ProductsExecutive Summary Industry Customers Business Overview
Key Products
Crankshafts Connecting Rods Wheel Hub
The Company caters to a range of high value added components
Tractor Components Passenger Vehicle Components
Steering Knuckle
Two Wheeler
2W Crankshaft
Page 14
CustomersIndustry Products Business overviewExecutive Summary
Revenue Splits
Revenue Split by Segment
46.0%
7.0%
29.0%
18.0%
Tractor CV 2W PV
Splits based on FY 18
Revenue Split by Product Family
73.6%
18.4%
7.6%
0.4%
Crankshaft Wheel Hub
Connecting Rod Steering Knuckle
Page 15
Disclaimer
This power point presentation (“Presentation”) has been prepared for general information purposes. This document does
not constitute or form part of and should not be construed as an offer or invitation for the sale or purchase of securities or
any of the businesses or assets of the ACIL Limited (“Company”) or as an inducement to enter into investment activity.
Neither this document, the fact of its distribution, nor anything contained herein, should form the basis of, or be relied upon
in connection with any contract, agreement, undertaking, understanding or any commitment or investment decision
whatsoever.
The information in this Presentation has been collated from the primary information available with the Company / public
domain and does not purport to be accurate, comprehensive or complete. All recipients should conduct their own
diligence, investigation and analysis of the Company and the data set forth in this document and otherwise provided.
While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be
made and no responsibility or liability is or will be accepted by the Company or any of its officer, in relation to the accuracy,
fairness, authenticity or completeness of this Presentation. The recipient acknowledges that it shall not use any
information provided herein and/or disclosed pursuant to the terms hereof to cause an undue gain or undue loss to
Company and further undertakes that it will protect all intellectual property rights of the Company.
Thank You