Binani Cement Ltd

8/9/2019 Binani Cement Ltd

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INDIA·SINDIA·S

MINIMINI

GLGL BAL CHAMPSBAL CHAMPS



Top Ten Indian Champs« Top Ten Indian Champs« United PhosphorusUnited Phosphorus

Rain CommoditiesRain Commodities

Jubilant OrganosysJubilant Organosys

SintexSintex

Plethico PharmaPlethico Pharma

BilcareBilcare

BatronicsBatronics

Rolta IndiaRolta India

Allied Digital Allied Digital

Binani CementBinani Cement



BIG TRIGGERSBIG TRIGGERSFOR SMALL ACQUISITION..FOR SMALL ACQUISITION..

It·s not just about gaining size & scale«.It·s not just about gaining size & scale«.



Global footprintGlobal footprint

Binanai cementBinanai cement

New opportunities :New opportunities :

Bilcare firmBilcare firm



Broad base operation :Broad base operation :

United PhosphorusUnited Phosphorus

Cost Arbitrage :Cost Arbitrage :

Allied Digital Allied Digital



Find raw material sources :Find raw material sources :

Rain CommoditiesRain Commodities

Access high Access high--end talent :end talent :

Rolta IndiaRolta India



BINANI CEMENT LTD



ACQUISITION ACQUISITION

Krishna holdings pte , Singapore 2008Krishna holdings pte , Singapore 2008

Binani cement factory llc ,UAE 20Binani cement factory llc ,UAE 20



PRICE : $ 41 millionPRICE : $ 41 million

FINANCE : through debt financingFINANCE : through debt financing



BENEFIT:BENEFIT:

Acess to local mkt , raw material Acess to local mkt , raw material

INTEGRATION ACHIEVED :INTEGRATION ACHIEVED :started importing clinkers from Indiastarted importing clinkers from India



DETAIL CASE STUDY«DETAIL CASE STUDY«

Director Vinod Juneja to challengeDirector Vinod Juneja to challengecoventional thinkingcoventional thinking

2008 Acquire Cement co. in Dubai &2008 Acquire Cement co. in Dubai &ChinaChina



WH AT MAKES HIM TO GO WH AT MAKES HIM TO GO

GLOBAL?GLOBAL?

LOCATIONLOCATION

Confident about the strategic location of hisConfident about the strategic location of hisoerseas unitoerseas unit

Cement factory LLC (Dubai) aided to tapCement factory LLC (Dubai) aided to tapneighbouring export mkt of AFRICA & WESTneighbouring export mkt of AFRICA & WEST

ASIA ASIA



OUTPOST IN CHINAOUTPOST IN CHINA

Put controlling stake in SingaporePut controlling stake in Singapore

incorporated Krishna hldg pte.incorporated Krishna hldg pte.



BENEFITS«BENEFITS«

Costal location allow BCL to export atCostal location allow BCL to export atminimum costminimum cost

Also aid to setup clinker Also aid to setup clinker--grinding plant ingrinding plant inMauritiusMauritius



ALLIED DIGITAL ALLIED DIGITALPut Challenge in RECESSION«.Put Challenge in RECESSION«.



ACQUISITION : En pointe Global Service ,US (2008) ACQUISITION : En pointe Global Service ,US (2008)

FINANCE : Proceeds from an IPOFINANCE : Proceeds from an IPO

PRICE TAG : $ 10 million and a 4.11% stake in alliedPRICE TAG : $ 10 million and a 4.11% stake in allieddigitaldigital



BENEFITS DERIVED : Access to bigBENEFITS DERIVED : Access to bigcustomer like J P Morgan & Americancustomer like J P Morgan & American Airlines & offering other services to Airlines & offering other services toexisting customer existing customer

INTEGRATION ACHIEVED : Underway ,INTEGRATION ACHIEVED : Underway ,with a part of the manpower to be shiftedwith a part of the manpower to be shiftedto Indiato India



DETAIL CASE STUDY«DETAIL CASE STUDY«

Remote infrastructureRemote infrastructure

IT infrastructure management SPIT infrastructure management SPIT security.IT security.



What does a company like ADSL What does a company like ADSL

do?do?

Accquire RIM Accquire RIM

Out sources the workOut sources the work Cash the cost Arbitrage advantageCash the cost Arbitrage advantage



STUDY SAYS«.STUDY SAYS«.

RIM business is the next big opportunityRIM business is the next big opportunityfor India¶s Industryfor India¶s Industry

Total estimable market is about $100Total estimable market is about $100billion $ India is well position to capturebillion $ India is well position to capture$13$13--15 billion by 201315 billion by 2013



ADVANTAGES« ADVANTAGES« Direct acess to marquee customer like J PDirect acess to marquee customer like J P

Morgan, American Airlines & Mitsubishi.Morgan, American Airlines & Mitsubishi.

Readymade outpost in USReadymade outpost in US



GAINS«GAINS«

Business has increased to $50 millionBusiness has increased to $50 millioncompared to $40 million at the time of compared to $40 million at the time of

acquisitionacquisition Operating profit cross 22Operating profit cross 22--25% from 1025% from 10--12% due12% due

to lower cost associate with offshoring activitiesto lower cost associate with offshoring activities

Ability to provide additional services to US client Ability to provide additional services to US client



Our diverse workforce delivers Our diverse workforce delivers

success beyond expectation«.success beyond expectation«.



THANK U«.THANK U«.

Binani Cement Ltd

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