#1KRISHCA Krishca Strapping Solutions Limited FY23 Investor Presentation A 0. 00-0000 1-0 00 00 00#2Company Overview#3About The Company nonnon KRISHCA 100+ Customers 50+ Employees FY23 Revenue - 72.30 Cr EBITDA 13.87 Cr - PAT 9.34 Cr FY23 ROE - 85% ROCE - 83% Krishca Strapping Solutions Limited (Krishca, The Company) is a dynamic startup that was established in December 2017 and is based in Chennai, Tamil Nadu. The company is a leading manufacturer and wholesaler of High Tensile Steel Straps, Strapping Seals, and Strapping Tools. Krishca began commercial production in March 2020, utilizing advanced technology in its plant. The company is proud to be India's first "Lead-Free" and eco-friendly production line for the heat treatment of steel strapping. Moreover, Krishca is the first major steel strap manufacturing unit in Tamil Nadu. Krishca's technology provides the company with a competitive advantage over its rivals, as it has a lower cost of production than the industry standard by reducing the rate of scrap generation, making the production process more energy-efficient, and reducing environmental impact. Krishca has an integrated Steel Strapping manufacturing facility in Chennai, with a production capacity of 18,000 MT of Steel Straps and 80 MN Strapping Seals per annum. The facility is equipped with state-of-the-art machinery and operated by highly skilled personnel, ensuring that Krishca delivers quality products to its customers consistently. Hv ₹ HV Investor Presentation 3#4Our Strengths State Of The Art Production Line First Quality Raw Material Finest Quality Strap Extraordinary Consistency Exceptional Steel Remarkable Surface Finish In Depth Testing And Tracking Investor Presentation Custom Branding A KRISHCA 4#5Strategically Located State Of The Art Manufacturing Facility 0000 00 0 00 00 00 India's first "Lead- Free" and eco- friendly production line for the heat treatment of steel strapping. KRISHCA Supported by Advanced Technology Raw Material Availability Proximity To Slitting Units Proximity To Chennai Port PLC Controlled automatic production line Investor Presentation Super Jumbo coils upto 500 Kgs Pollution free production process - Lead free Automated heat treatment process - Uniform grain structure production capacity Steel Straps Strapping Seals 18,000 80 MTPA MNPA 5 сл#6Marquee Clients (BAOSTEEL A AJ STEEL JINDAL Jindal Aluminium ARS 550 D FROMM SYSTEMS PACKAGING JINDAL STEEL & POWER JSW Steel XKAMACHI TMT BARS: THE SOUL OF STEEL Posco RIMJHIM Investor Presentation ISPAT GOLD PLUS ROBOTIC PARKS Indian Values. Global Standards. सेल SAIL KRISHCA HHYUNDAI STEEL INDUS 555-D TMT INDUS INSIDE. PEACE OF MIND OUTSIDE MVS ACMEI العبيكان Obekan GLASS COMPANY S VAPORAP VCI- Suprabha Polymer Packaging THL PIPE 6#7Assurance Of Quality: High-Quality Steel Strapping Meeting Global Standards KRISHCA मानकः पथप्रदर्शक: IS 5872:1990 - Cold rolled steel straps (box strappings) specification ANIM ASTM INTERNATIONAL Helping our world work better ASTM D-3953 - Standard Specification for Strapping, Flat Steel and Seals Every step of the manufacturing process is controlled and assessed to ensure that every inch of the Strap is of the highest quality. bsi - BS EN 13246:2001 Packaging. Specification for tensional steel strapping Our Steel strap quality parameters are in line with the American, European and Indian standards. Investor Presentation 7#8Integrated Quality Management System for Consistent Properties 1 Raw Material The most important factor in producing quality steel strapping is choosing the right raw material. At Krishca, we use first grade raw materials from primary steel mill only. Each raw material coil is tested and taken for production after the passing our quality checks. 2 State Of The Art Laboratories Our Testing Laboratories are equipped with the latest and most advanced equipment including a Digital Universal Testing Machine, Digital paint micro thickness meter, Hardness tester, Bend & curl tester and salt spray tester. These are manned by an experienced team of qualified professionals to ensure that quality control processes are standardized across shifts. 3 Continuous Sampling & Checks Our quality control process mandates periodic sampling at every stage of the production process. Samples are taken at regular intervals 4 KRISHCA Batch Wise Stock Keeping & Traceability Our system of batch wise charging and stocking of raw material and finished goods coupled with a traceability system enables us to detail and trace the physical and chemical composition of every lot with the heat cycle. Such comprehensive systems have enabled us to be certified for our quality management systems as per ISO 9001:2015 standards. Investor Presentation Uncompromising Quality - From Raw Material To Finished Product 8#9Management Overview#10The Driving Force Of Krishca Strapping Solutions +++ +++ KRISHCA ++ ++ Mr. Lenin Krishnamoorthy Balamanikandan Promoter, Managing Director & Chairman Balamanikandan is the visionary Founder of Krishca Strapping Solutions Limited, He holds a Bachelor's degree in Engineering in Electronics and Communication from Anna University. He has also obtained a Master of Science degree in Information Security from the University of London, UK, where he specialized in advanced cyber security, corporate security, and privacy practices. With over three years of experience as a cyber-security consultant in the UK, Mr. Balamanikandan has honed his skills by managing multiple cyber security compliance projects for prominent companies like Visa and Samsung. His expertise and knowledge in this field have proven to be an invaluable asset for the success of Krishca Strapping Solutions. He has performed extensive market research on steel strapping for nearly a year between 2017-2018, which laid the foundation for setting up Krishca Strapping Solutions. As the Founder, he has played a pivotal role in the growth and development of the Company, making it a leading provider of innovative steel strapping solutions. Investor Presentation 10 10#11Board Of Directors & Key Managerial Personnel Investor Presentation Lenin Krishnamoorthy Balamanikandan Managing Director & Chairman Mr. Terli Venkata Shivaji Whole Time Director Mrs. Navaneethakrishnan Saraladevi Whole Time Director & CFO Mr. Achaya Kumarasamy Non-Executive Director Mr. Vengarai Sowrirajan Seshadri Independent Director Mr. Tom Antony Independent Director Mr. Rajinikanth Independent Director Ms. Diya Venkatesan Company Secretary KRISHCA 11#12Business Overview#13Product Portfolio 0 Investor Presentation Steel Straps Strapping Seals ATCOLD Strapping Tools KRISHCA 13#14Steel Strapping KRISHCA Krishca's steel straps undergo a state-of-the-art heat treatment process for exceptional physical and geometrical properties, with a distinctive blue-shimmering oxide layer for corrosion resistance. Available in Prime, Super Prime, and Ultra Prime grades. Winding Types Investor Presentation Ribbon Winding Mill Winding Super Jumbo Coil Product Finish Blued Tempered & Waxed Painted & Waxed Zinc Coated & Waxed 14#15Steel Seals KRISHCA Krishca's seals are made from high-quality CR sheets using advanced machinery, with a dedicated team of experienced engineers and technical experts committed to delivering innovative, reliable seals and excellent customer service. SW UTP PIPE 1 Snap-On Seals Snap-On Seals are placed the overlapping straps ends during or after the strap is tensioned. This type does not require any prethreading. These seals generally reduce application time. 2 Push-Type Push-Type seals are used inapplications in which the straps is tensioned by butting the nose of the tensioner against the seal. 3 Thread-On Thread-On Seals must be threaded the overlapping straps ends before the tensioning tool is applied. Generally thread-on seals are used on bales, bundles and the larger straps sizes. 4 Nestack Seals Nestack seals are held together by interlocking nibs. This type of seal permits loading partial stacks into magazines of seal feed. 5 Open-Flange Seals Open-Flange Seals are the heavy-duty version of the snap-on seal. Open-flange seals do not require any pre-threading. 6 Open Type Investor Presentation Open Type Fast and easy to use, open seals can be placed over the straps before or after tensioning. 5 15#16Strapping Tools KRISHCA O Krishca partners with top manufacturers to provide a complete range of steel strapping tools for various packaging applications. Our commitment to quality is reflected in our prompt and effective solutions, supported by factory-trained engineers who work closely with clients to identify the best strapping tool for their needs. Investor Presentation Our Line Of Steel Strapping Tools Includes The Following. Pneumatic Combination Manual Tensioners & Sealers Combination KRISHCA Pneumatic Tensioners & Sealers 16#17Industry Overview#18Steel Industry Overview Notable trends in the Indian steel industry. Growing investment Strategic alliances Strong Growth Drivers 1 Fastest growing steel industry in the world. KRISHCA | India's steel production is around 120 Million MT per annum, the second-largest 2 producer of crude steel 3 | Entry of international companies 4 As per the Indian govt latest National steel policy aspires to achieve 300 Million MT of steel making capacity by 2030. This would translate into additional investment of 200 Billion USD by 2030-31. Demand for steel from different sectors will drive this industry. Increased emphasis on technological innovations 5 Expansion/ Technology Upgradation and New projects provides excellent platform for the supply of strapping machines & automatic packaging lines. 6| | Availability of low cost labor kept Indian medium and some large scale industries to stick with manual packaging methods. Vehicle Scrappage Policy to ₹ reduce steel prices Source: RHP, IBEF Investor Presentation 18#19Steel Production Capacity Has Expanded Rapidly Crude Steel Production Capacity (in Million Tones) KRISHCA Crude Steel Production Capacity in FY20 - By Route (in%) 122 128 138 142 142 144 FY16 FY17 FY18 FY19 FY20 300 FY21 FY31P 27% 45% 28% Curde Steel Production Capacity (in millon tonnes) BOF EAF IF India's steel production capacity has expanded rapidly over the past few years, growing at a CAGR of 3.93% from 122 MT in FY16 to 143.9 MT in FY21. The National Steel Policy 2017 has envisaged achieving up to 300 MT of production capacity by 2030-31. О By FY22, India's total steel capacity is likely to increase to 150 MT annually. ○ BF-BOF route is expected to contribute 65% of the capacity, while the remaining 35% is expected to come from EAF & IF routes. O Expansion of production capacity to 300 MT will translate into additional investment of Rs. 10 lakh crore (US$ 156.08 billion) by 2030-31. Steel companies are looking to restart expansion projects on the back of surging steel process with a capacity addition of 29 MT. - Note: P Projection, BF-BOF - Blast Furnace-Blast Oxygen Furnace, EAF - Electric Arc Furnace, IF - Induction Furnace, MT- million tonnes Source: Joint Plant Committee, News Articles, Ministry of Steel, World Steel Association, CARE Ratings Investor Presentation 19#20Indian Steel Strapping industry Company Signode India Limited KRISHCA Installed Monthly Current Avg. No of Production Units Approximate Market Share Capacity (MT) Monthly Production (MT) 6,000 2 Hyderabad, Telangana 1 Dahej, Gujarat 4,500 49% Grip Strapping Technologies Private 4,000 2 Hyderabad, Telangana 1 Vizag 2,500 27.5% Limited Cyklop Owned Tata Steel BSL Limited 1,000 1 Khopoli, Near Mumbai, Maharashtra 500 5% Walzen Strips Private 1,500 1 Kolkata, West Bengal 1,000 11% Limited Krishca Strapping Solutions Limited 1,500 1 Chennai, Tamil Nadu 900 7.5 % Based on the market research, the current market size of steel strap consumption in India is 9000 - 11000 Ton per month. As the industries which use steel strap is projected to see a rapid growth in the next 15 years, the steel strap consumption is also expected to see 5-10% growth each year. Source: RHP Investor Presentation 20#21Financial Overview#22Profit & Loss Statement KRISHCA In Cr Particulars FY20 FY21 FY22 FY23 Revenues 0.96 9.41 18.61 72.30 Other Income 0.02 0.30 0.11 0.11 Total Income 0.98 9.71 18.72 72.41 Raw Material costs 0.72 6.42 12.73 51.37 Employee costs 0.98 1.11 1.41 2.15 Other expenses 0.72 1.31 1.37 5.02 Total Expenditure 2.42 8.84 15.51 58.54 EBITDA -1.44 0.87 3.21 13.87 EBITDA Margin % (146.94) 8.96 17.15 19.15 Finance Costs 0.32 0.73 0.54 0.85 Depreciation 0.48 0.81 0.95 1.26 PBT -2.24 -0.67 1.72 11.76 Tax 0.00 0.00 0.21 2.42 PAT -2.24 -0.67 1.51 9.34 PAT Margin % (228.57) (6.90) 8.07 12.90 Investor Presentation 22#23Balance Sheet KRISHCA In Cr Equities & Liabilities FY20 FY21 FY22 FY23 Assets FY20 FY21 FY22 FY23 Equity 3.01 3.01 5.00 8.75 Non Current Assets Reserves -2.37 -4.22 -3.40 2.19 Fixed Assets 5.55 6.15 5.92 9.02 Net Worth 0.64 -1.21 1.60 10.94 Non Current Investments 0.00 0.00 0.00 0.00 Other Non Current Non Current Liabilities 0.00 0.00 0.00 0.00 Financial Assets Long Term Borrowing 0.41 5.39 5.45 4.34 Deferred Tax Assets 0.01 0.00 0.00 0.40 Deferred Tax Liabilities 0.00 0.02 0.19 0.00 Other Non Current Assets 0.00 0.00 0.00 0.46 Other Long Terms Liabilities 0.00 0.00 0.00 0.05 Total Non Current Assets 5.56 6.15 5.92 9.88 Total Non Current 0.41 5.41 5.64 4.39 Current Assets Liabilities Current Liabilities Inventories 1.57 1.96 1.46 10.76 Short Term Borrowings 7.87 7.99 3.94 7.75 Trade Receivables 0.77 2.29 5.60 12.03 Trade Payables 0.04 0.58 1.03 8.12 Cash & Bank Balance 0.02 0.23 0.31 0.14 Other Current Liabilities 0.20 0.15 3.18 0.63 Other Current Financial Assets 0.00 0.00 0.00 0.26 Short Term Provision 0.00 0.00 0.05 3.04 Other Current Assets 1.24 2.29 2.15 1.80 Total Current Liabilities 8.11 8.72 8.20 19.54 Total Current Assets 3.60 6.77 9.52 24.99 Total Liabilities 9.16 12.92 15.44 34.87 Total Assets 9.16 12.92 15.44 34.87 Investor Presentation 23#24Cash Flow Snapshot KRISHCA Particulars FY20 FY21 FY22 FY23 Cash from Operating Activities (0.56) (1.49) (0.03) 6.72 Cash from Investing Activities (2.67) (2.55) (1.39) (4.34) Cash from Financing Activities 3.09 4.25 1.50 (2.39) Net Cash Flow (0.14) 0.21 0.08 (0.01) Net Cash at Beginning of Year 0.17 0.02 0.23 0.15 Net Cash at the End of Year 0.02 0.23 0.31 0.00 Investor Presentation In Cr 24#25Revenue From Top 10 Customers FY20 4.94 95.06 A Look at Our Customers' Contributions. FY21 15.27 84.73 31.45 FY22 Top 10 Customers Other Customers 68.55 31.27 KRISHCA FY23 In % 68.73 In Cr Particulars FY20 Top 10 Customers 0.91 FY21 7.97 FY22 FY23 12.76 49.69 Other Customers 0.05 1.44 5.85 22.61 Total 0.96 9.41 18.61 72.30 Investor Presentation 25#26Exploring Export Opportunities FY20 The Company Started Exports from FY22 to United Arab Emirates, Dubai and Saudi Arabia FY21 100.00 100.00 Domestic Sales Export Sales FY22 8.22 KRISHCA In % FY23 7.97 92.03 91.78 In Cr Particulars FY20 FY21 FY22 FY23 Domestic Sales 0.96 9.41 17.08 66.54 Export Sales 0.00 0.00 1.53 5.76 Total 0.96 9.41 18.61 72.30 Investor Presentation 26#27Growth Drivers#28Current Business Scenario & Opportunities For Krishca Investor Presentation नब Domestic steel production is expected to reach 300 Million Tons by 2030 From the current 125 Mn Ton per Annum Indian steel exports are growing YOY resulting in higher usage of steel strapping China + 1 Policy - All major steel strapping imports in the world are looking to add non China manufacture in their supplier list. Packaging Contracts PSU Tenders KRISHCA 28#29Future Expansion Plan KRISHCA NEW HARDENING & TEMPERING LINE New hardening & tempering line in Tamil Nadu, expanding capacity and enabling entry into new markets with Ultra High Tensile Strapping. INVESTMENT IN MIDDLE EAST Expansion in Middle East with new sales offices, warehouses, and manufacturing plant, to get access to US market. WELDING WIRE PRODUCTION PLANT The Company is currently planning to enter welding consumable market with new subsidiary and MIG welding production plant in Chennai, catering to local and export markets. PACKAGING CONTRACTS - NEW DIVISION To focus on India's steel packaging contract market, which is estimated to be worth 2000-2500 Cr per annum and is currently dominated by a few players. The major customers in this market are packaging contractors, who currently outsource the packaging of steel mills to these contractors.#30Management Guidance Revenue is expected to grow by 35-45% in FY24 due to increased sales from current operation and also from new strapping line which will be into operations from December 2023. EBITDA margins is expected to stay within a corridor of 17-20%. KRISHCA#310 KRISHCA Krishca Strapping Solutions Limited Building 01B, LOGOS Mappedu Logistics Park Satharai Village, Thiruvallur - 631203. Email: [email protected] Website: www.krishcastrapping.com Phone: +9193449 91199 Kirin Advisors Kirin Advisors Private Limited 713-B, Lodha Supremus II, Wagle Estate, Thane West - 400 604. Email: [email protected] Website: www.kirinadvisors.com Phone: 022 4100 2455 THANK YOU Content, Concept & Design by Kirin Advisors