Binani Cement Ltd
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Transcript of Binani Cement Ltd
8/9/2019 Binani Cement Ltd
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INDIA·SINDIA·S
MINIMINI
GLGL BAL CHAMPSBAL CHAMPS
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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
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BIG TRIGGERSBIG TRIGGERSFOR SMALL ACQUISITION..FOR SMALL ACQUISITION..
It·s not just about gaining size & scale«.It·s not just about gaining size & scale«.
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Global footprintGlobal footprint
Binanai cementBinanai cement
New opportunities :New opportunities :
Bilcare firmBilcare firm
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Broad base operation :Broad base operation :
United PhosphorusUnited Phosphorus
Cost Arbitrage :Cost Arbitrage :
Allied Digital Allied Digital
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Find raw material sources :Find raw material sources :
Rain CommoditiesRain Commodities
Access high Access high--end talent :end talent :
Rolta IndiaRolta India
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BINANI CEMENT LTD
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ACQUISITION ACQUISITION
Krishna holdings pte , Singapore 2008Krishna holdings pte , Singapore 2008
Binani cement factory llc ,UAE 20Binani cement factory llc ,UAE 20
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PRICE : $ 41 millionPRICE : $ 41 million
FINANCE : through debt financingFINANCE : through debt financing
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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
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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
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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
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OUTPOST IN CHINAOUTPOST IN CHINA
Put controlling stake in SingaporePut controlling stake in Singapore
incorporated Krishna hldg pte.incorporated Krishna hldg pte.
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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
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ALLIED DIGITAL ALLIED DIGITALPut Challenge in RECESSION«.Put Challenge in RECESSION«.
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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
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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
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DETAIL CASE STUDY«DETAIL CASE STUDY«
Remote infrastructureRemote infrastructure
IT infrastructure management SPIT infrastructure management SPIT security.IT security.
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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
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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
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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
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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
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Our diverse workforce delivers Our diverse workforce delivers
success beyond expectation«.success beyond expectation«.
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THANK U«.THANK U«.