Everest Kanto Cylinders Ltd.

Market leader and pioneer in the high pressure cylinder industry in India with a strong global footprint

Overview

Group holding structure

Company ownership structure (1)

Overview

Incorporation 1978

Headquarters Mumbai, India

Chairman Mr. P. K. Khurana

Industry High pressure seamless cylinders (c.99% of

revenues) Distribution of natural gas (c.1% of revenues)

Manufacturing Facilities

India (3), Dubai, China, USA

Capacity Over 1.5 mn. cylinders p.a.

Marketing Offices

1) Thailand, 2) Germany, 3) Hungary, 4) Czech Republic, 5) Brazil, 6) Colombia, 7) Argentina

Employees c.1,400

Listing Bombay Stock Exchange (BSE) , National Stock

Exchange (NSE) Market Cap: INR 2,561 mn. (Mar 8, 2013)

Key Financials, Consolidated

INR mn., (USD mn.) FY11(2) FY12(3)

Net Sales 7,747 (174) 6,695 (132)

EBITDA 1,376 (31) 959 (19)

Networth 7,581 (170) 8,181 (161)

Net Debt 2,868 (64) 4,371 (86)

A pioneer and market leader in the industrial and Compressed Natural Gas (“CNG”) cylinders space in India….

Source: Company, BSE(1) As on Dec, 2012(2) 1 USD = INR 44.5 as on march 31, 2011(3) 1 USD = INR 50.87 as on march 31, 2012

Khurana Fam-ily; 60.20%

Institutions; 10.75%

Non Institu-tions; 29.05%

Everest Kanto Cylinder Ltd.,India (Listed)

EKC International FZE, Dubai100%

EKC Europe Gmbh, Germany

100%

EKC Hungary Kft, Hungary

100%

CP Industries Holdings Inc., USA100%

EKC Industries Co. Ltd., China100%

EKC Industries Co. Ltd., Thailand

100%

CC&L. Ltd., India

72.65%

The JourneyA business built brick by brick over the last 34 years…

1978

Incorporation of Everest Kanto Cylinder (P) Limited

First commercial production at Aurangabad Plant

1981 1986

Commencement of exports to Gulf countries

1988

Commissioning of Tarapur Plant

1998

Development of CNG cylinder for the markets

Supply of CNG Cascades

Export to European countries

2001

More than 150,000 cylinders produced and dispatched

2004

Commencement of production at Dubai Plant

2005

Listing of Equity Shares

Gandhidham unit goes onstream

Source: Company

2007

Doubling of Capacity in Dubai and initiation of China Project

2008

Acquisition of CPI, U.S.A.

Commencement of production in China

2009

Acquisition of majority stake in a gas distribution company

2010

Setting up of a marketing subsidiary company in Thailand

2011

Setting up of marketing and product development subsidiary in Europe

Closure of Aurangabad plant

2012

Commencement of production at Kandla (SEZ) Plant

Commencement of production at Gandhidham under the billet piercing process

Listing of Equity Shares

Gandhidham unit goes onstream

The JourneyA business built brick by brick over the last 34 years…

Source: Company

Products and Applications…. in the industrial, CNG and Jumbo cylinders space…

Source: Company

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

Auto: Public & private transport Industrial: Metal, power, food & beverage etc. Healthcare: Respiratory aids, MRI, Cryosurgery Special: Fire fighting, diver etc. Defence

Wide range of technologies Type I: Seamless steel tube, steel plate deep

drawing and billet piercing processes Type II, IV: Composite winding (EHA technology)

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

Technology

Wide Range

Applications

Quality Control

Global Presence

Global presence

….. and a strong foothold on key markets globally,…

Source: Company

Manufacturing plantMarketing offices

Exports

China

Thailand

India

Dubai

USA

Colombia

Brazil

Argentina

Germany

HungaryCzech Republic

Manufacturing facilities in 4 countries

Regulatory approvals in and exports to over 25 countries

Marketing offices in 11 countries

Products…to deliver a wide range of superior quality high pressure gas cylinders suitable for applications across industries…

7

Source: Company(1) Gas, Cu. M.

Product Range End - markets Installed capacity (1)

Diameter: 232, 267, 316, 324, 356, 406

Capacity(1) : 5.4 – 25 Cu. m.

Pressure: Storage: 204, 250 bar (working pressure), Transportation: 250, 300, 500 (Type IV) bar (working pressure)

Materials: CrMo steels

CNG cylinders for all kinds of vehicles, like three-wheelers, cars, buses and delivery vehicles

Key end customers include the OEMs and aftermarket players

10,06,000

24,000 -Type II

Diameter: 76, 108, 140, 165, 232, 267, 356, 406

Capacity(1) : 0.15 – 35 Cu. m.

Pressure: 150, 200, 300 bar (working pressure)

Material: CMn steels, CrMo steels, Special steels

High-pressure gas cylinders for oxygen, hydrogen, nitrogen, argon, helium, air etc., designed to withstand rough handling

Key end - user sectors include: Healthcare, beverage, firefighting, steel, metal, power etc.

3,00,000

2,50,000 - Billet

Diameter: 356, 377, 406, 465, 508, 559, 604, 711, 620

Capacity: 400 litres to 3000 litres water capacity

Pressure: 200, 250, 400 bar (working pressure)

Materials: CrMo steels, Special steels

Bulk transportation of various gases including CNG, custom built defence requirements 6,000

CNG Cylinders

Industrial Cylinders

Jumbo Cylinders

Products contd…

Source: Company(1) Gas, Cu. M.

Product Range End - markets

Storage capacity (1) : 140 – 800 Cu. m.

Storage pressure : 200 – 400 bar

Dimensions: Standard sizes with customization as per customer needs

Storage and transportation of the gas from on-line stations to daughter stations, mobile gensets etc.

Suitable for mounting on LCVs

Storage capacity (1) : 1500 to 7000, 8000 Cu. m.

Storage pressure : 200 – 400 bar

Dimensions: Standard sizes with customization as per customer needs

Allows hassle free bulk transportation of gases like CNG, helium etc.

Suitable for mounting on trailers

One-stop-shop for all cylinder needs. It supplies products (on an outsourced basis as per customer needs) for storing, conveying and using high-pressure gases including:

1) Cylinder valves : Cylinder valves with working pressure of up to 400 bars, valve threads of BS 341, DIN 477, IS 3224

2) Valve protection guards: Valve protection guards of high-impact ABS plastic , all-steel fabricated construction

3) Valve protection caps: Valve protection caps in an all-steel robust fabricated construction, malleable cast iron and plastic

4) Trolleys: Trolleys for extinguishers and hospital used to handle individual cylinders

5) Medical / Industrial equipment : Breathing apparatus, oxygen masks and Boyle's apparatus / Cylinder cascades

CNG Cascades

Allied Products

Jumbo Skids

Manufacturing Process….manufactured with time tested processes and new age technology…

Source: Company (1) Oldest and most common process

Manufacturing processes

EKC uses three manufacturing processes for high pressure cylinders

Seamless Tubes (1) Billet Piercing Process Deep Drawing Process (Cold forming)

Seamless Tube

Tube Cutting

Surface Inspection

Induction Heating

Bottom Forming

Bottom Processing

Billet Storing Cutting Heating Piercing Drawing End Sawing Plate Cutting Cup Forming

Annealing, Grit blasting & Soaping

Deep Drawing

Annealing, Grit blasting & Soaping

Deep Drawing

Manufacturing processes start with forming the one end closed cylinder shells…..

1 2 3

Billet Cutting Heating (induction furnace or natural-gas-fired ) Piercing with a mandrel in a piercing press. Extrusion through a series of roller dies

Seamless tube cutting Induction heating Bottom forming through hot spinning process Bottom processing for industrial cylinders

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

Induction Heating- Neck

Neck Forming

Heat Treatment

Machining Threading Water Capacity Check

Hydro Stretch Testing

Air Leakage Testing

Internals Hot Blasting

Externals Hot Blasting

Stamping Ultra Sonic Testing

WeighingVacuum CleaningPainting Dispatch

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 Kandla Special Economic Zone (“KASEZ”) using steel-plate deep drawing process

These cylinders are lighter in weight, better quality and command premium over other cylindersSteel plates (raw material) are available indigenouslyCNG vehicle manufacturers are showing increasing preference to plate cylinders as vehicles with these cylinders offer better fuel efficiency

Manufacturing Facilities…deployed at state-of-the-art manufacturing facilities in India…

10

Source: Company

Manufacturing footprint, India

Tarapur, Maharashtra

Total Area (sq. mtrs.) 30, 918

Manufacturing Processes Seamless tube process

CNG Cylinder - capacity 1,20,000

Industrial Cylinder – capacity 1,20,000

• Huge location advantage: Located on the west coast of India and connected to major ports of UK, Australia, Middle East and East Asian economies

Kandla, Gujarat

Total Area (sq. mtrs.) 84, 984 (Lease)

Manufacturing Processes

Deep drawing

CNG Cylinder - capacity

2,50,000

Gateway to land locked states in India

USAEurope

Middle eastThailand, Singapore etc.

Africa

• Gujarat ports

Tarapur

Gandhidham

Kandla

Gandhidham, Gujarat

Total Area (sq. mtrs.) 1,67,945

Manufacturing Processes

Seamless tube, billet piercing

CNG - capacity 2,40,000

Industrial – capacity 1,80,000 + 2,50,000 (Billet)

Jumbo – capacity 2,000

Manufacturing Facilities Contd……. USA, Dubai and China….

11

Source: Company(1) Capacity to be increased

Manufacturing footprint, globally

EKC China (Greenfield)

Location Tianjin

Total Area (sq. mtrs.)

79,994 (lease)

Manufacturing Processes

Seamless tube, composite winding

CNG type I 2,00,000

CNG type II 24,000 (1)

Jumbo – capacity 1,000

CPI Industries, USA

Location Pittsburgh PA

Total Area (sq. mtrs.) 1,97,883

Manufacturing Processes

Seamless tube process, composite winding (EHA Technology)

Jumbo - capacity 3,000

CNG Type IV- capacity 10,000 (by march 2013)

EKC, Dubai

Location Jebel Ali Free Zone

Total Area (sq. mtrs.) 46,584 (lease)

Manufacturing Processes

Seamless tube process

CNG - capacity 1,96,000

Capacity Capacity to manufacture c.1.5 mn. cylinders per year

Location Well positioned to cater to cylinder demand globally owing to well located facilities

Technology EKC is the first and the only player to adopt steel-plate deep drawing process and billet piercing process technology in India

Quality Management….with strong emphasis on quality …

Source: Company

Quality management systems

Plant Approvals

All Plants ISO 9000:2008

IndiaIS 7285 (Part 1): 2004, IS 7285 (Part 2): 2004, IS 15490: 2004, ECE R-110, ISO 11439: 2000, NZS 5454: 1989, ISO 9809-1: 2010(E), ISO 11120: 1999, IS 15490: 2004

Dubai ISO 11439, ISO 9809-1, NZS 5454, ECE R110

CPI

Registration Number M8001 U.S. Department of Transportation, Office of Hazardous Materials Transportation, Certificate of Authorization Number 1,127, Certificate of Authorization Number 15,889, Certificate of Authorization Number 35,694, Certificate of Authorization Number R-5530, DNV Approval of Manufacturer certificate T-1227, Certificate of Registration No. TC 58E issued by Transport Canada, Manufacture License of Special Equipment People’s Republic of China No. TS2200210-2010,Manufacturer Certificate from Korea Gas Safety Corp ES-154 issued 5/2012 expire 5/2015 to manufacture containers for shipment into Korea, ISO 9001 certificate

China

Composite Type CNG cylinder as per GB24160, Ⅱ Jumbo Seamless Steel Cylinder as per ISO11120, Jumbo Seamless Steel Cylinder as per EKCC, LCL Seamless Steel Cylinder as per GB17258, Jumbo Skid SC Certificate for Jumbo Skid (C3) design, Product Certificate for Nigeria , China Manufacturing License, ISO 9001, LCL Type I CNG cylinder as per ECE R110 , LCL Type I CNG cylinder as per ISO 11439, LCL Type I CNG cylinder as per NZS5454, Composite Type CNG cylinder as per ECE R110Ⅱ

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:

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

Snapshot of select certifications

Customers….resulting in an enviable customer base

13

Source: Company

Blue chip customer base, select customers

Industrial cylinders

Cylinder cascadesSpecial cylinders

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

CNG Cylinders , OEMs

Business Development Contd……including participation in industry associations, conferences and trade shows…

14

Source: Company

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

EKC at trade shows

Auto Expo, DelhiMalaysia Ukraine Dubai ArgentinaChina

Organisation Structure

Board of Directors

Chairman & Managing DirectorP. K. Khurana

DirectorPuneet Khurana

…and a well charted organisation structure…

COO(Tarapur)

VP International

Business

President(Planning & Development)

G. P. Virdi

Corporate HeadHR

Purchase

VPMarketing

GM Marketing

CFOVipin Chandok

Company Secy.

Finance Controller

GM - Accounts

Source: Company

Organisation structure, India

DirectorPushkar Khurana

Director (Technical & Projects)P. M. Samvatsar

COO(Ghdm / Kand)

VPQA

Engineering Projects

Engg. ServicesTarapur / Ghdm

GMProjects

Everest Kanto Cylinder LtdA Clean energy solution company

Presentation on Plate Cylinders

Annealing & phosphate

3rd deep drawi

ng

Annealing & Phosphate

Final Bottom

Plate

1st deep drawi

ng

Annealing & Phosphate

2nd Deep Drawing

Production Process- Plate

BACK

CNG CYLINDERS FOR ONBOARD VEHICLES

STORAGE CASCADES

Product Range

BACK

Tube

Tube Cutti

ng

Bottom

Forming

Bottom

Milling

Production Process- Tube

BACK

UT Checking Machining Hydrostretch test Air leakage test

Neck Forming Neck Drilling HeatTreatment

Hardness Checking

Production Processes – Neck Forming

Internal & External Shot

Blasting Stamping Painting &

Packing

BACK

Snapshots: Plate Cylinder Production Process

BACK

Packaging and Dispatch

BACK

Manufactured in world class manufacturing facility at Kandla SEZ.

Plate Plant is Eco Friendly plant, zero liquid discharge ETP, No Liquid Fuels & No Pickling Process.

Fully Automated, Robotic facility.

Highlights : Plate Cylinder Plant

BACK

Advantages of Plate CylinderManufactured from High Quality, fine grain steel plate.

Significant Reduction in cylinder weight compared to cylinders manufactured from Seamless Tubes.

Controlled, Uniform Thickness.

No hot forming process for Bottom forming.

Bottom cup formed by Die & Punch ensures homogeneous and lower thickness results in light weight bottom.

Better surface finish gives good aesthetics.

BACK

Weight Comparison

Water Capacity Ltr.

Diameter mm.

Length 'L' mm.

Weight Aprox. Kg.

Length 'L' mm.

Weight Aprox. Kg.

22 232 680 23 700 2830 232 890 29 910 36

30 267 710 31 725 3640 267 905 39 925 44

50 316 840 46 840 5560 316 980 54 980 62

60 356 805 58 820 6865 356 860 61 895 7670 356 915 65 932 7775 356 970 69 995 8480 356 1025 72 1035 84

85 406 880 84 890 9290 406 920 88 925 97100 406 1005 95 1042 106120 406 1175 110 1190 133130 406 1260 117 1300 129140 406 1345 124 1370 137

Plate Cylinder Tube Cylinder

OEM Market

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