Professional Documents
Culture Documents
Amber Enterprises
Still a seasonal industry but moving towards round the year use
Room Air conditioning market 2/2
• India significantly lags other countries in terms of AC penetration levels
• Perception change from luxury to a necessity/seasonal(summer) to round the year use
• Manufactures have come up with energy efficient ACs reducing electricity bills considerably( e.g. invertor ACs)
• Improving electricity availability/less outage is leading to higher AC sales
• ACs could be one of the largest beneficiary budget items in India over the next few years
76% 24%
Product portfolio
Company’s Journey
Plants and locations
Customers
Acquisitions
About Sidwal Technologies
• Acquisition happened in 2019 with 80% stake value at approx. INR
230 crore: Amber financed it mostly through internal accruals Advantages from Sidwal aquisition
• Recently won an order of Rs 167 Cr from BML (Mumbai Metro)
which is to be executed in the next 18-24 months • Entry into the new product segment with a high entry barrier of up
• Also got an order from BEML to 6-7 years; setting up a pan-India service network for maintenance
of the coaches makes the entry for any new player quite tough
• Order book stands at Rs 480 crores • Access to proprietary technology for commercial ACs, air handling
• On the acquisition of Sidwal, the company gained the following units and fan coil units
key customers in mobile application HVAC segment • New business vertical in the form of mobile application and
• Railways and Metros: commercial application of air-conditioners.
• Integral Coach Factory (ICF) • It will reduce the seasonal dependency of RAC business
• Rail Coach Factory (RCF) • With raw materials being common for both the companies, it will
• Diesel Locomotive Works (DLW) allow Amber to leverage its procurement capabilities in bringing
• Chittaranjan Locomotive Works (CLW) down the raw material costs
• Bharat Earth Movers Limited (BEML) • The funding for Sidwal was done using internal accruals and partial
• China Railway Rolling Stock Corporation (CRRSC) debt which saw the rise in debt to equity in FY19
• Defence: Bharat Electronics Limited (BEL) • This acquisition is strategically important because of a few factors:
• Telecom: Department of Telecom (DoT) • The Government of India has planned to build a metro railway
• Bus: Original Equipment Manufacturers (OEMs) system across cities with a population of over 2 million.
• Revenue contribution of subsidiaries for H1 was: • With urbanization and long summer months, more commuters
• PICL: Rs 84 Cr (EBITDA: 6%, PAT: Rs 1.37 Cr) are preferring air-conditioned travel in trains or busses, thus
• IL JIN: Rs 166 Cr (EBITDA: 5.1%, PAT: Rs 2.53 Cr)
increase in demand.
• Ever: Rs 155 Cr (EBITDA: 3.5%, PAT: Rs 4.35 Cr)
• Sidwal: Rs 94 Cr (EBITDA: 24%, PAT: Rs 15.5 Cr) (For 5 Months)
Financials
Financials
Fundamentals
Fundamental Ratios
Investors/Mutual funds invested into the stock
OPPORTUNITY
• Penetration of ACs in India is just 4 per cent compared with THREAT
the global average of 30 per cent
• Manufacturers have come up with an increasing range of • Consumption slowdown
energy-efficient air conditioners. This addresses the Indian • Economy slowdown
consumers’ concerns about high electricity bills. • Aggressive in acquisitions
• The narrowing price gap between fixed and inverter air
conditioners, which now stands at only INR 3,000- 4,000,
will lead to increasing preferences towards this technology
• Government in this budget has increased custom duty on
imported AC from 10% to 20% - room for growth
• LEEL closing down can give more business to Amber
• Acquisition of Sidwal- diversification, broaden base
• Expansion in South India and exports
Promoters and Senior Management
Sanjay Arora
Director, operations Udaiveer Singh Sachin Gupta Sudhir Goyal Konika Yadav
President-RAC Vice President-RAC CFO CS and compliance
-B.E(Industrial officer
-12 years in financial -Diploma in Elec engg
engg,Karnataka),
services and 10 years -With company since 2012 -Diploma in -B.E. from Punjab - B.Com. Delhi univ. -B.Com. ,Dayanand
M.B.A.(U.K.)
in RAC sector -34 yrs in the industry Mechanical Technical university -With company since univ,Rohtak
-Chairman and CEO
-B.E.(Nagpur -Earlier worked with Onida Engineering -With company since 2012 -With company since
since 2017
univ),Master(IT) from Savak ltd,Monica -With company 2014 -13 Yrs of industry 2014
-Played key roles in
Rochester,US electronics pvt ltd,Kortek since 2003 -14 Yrs of industry experience -5 Yrs of similar
raising funds through
-MD since 2017 electronics(India) ltd & LG -22 Yrs of industry experience -Earlier worked with experience
3 PE- IFCI -
- “Entrepreneur of electronics India limited experience -Earlier worked with Hythro power -Earlier worked with
Ventures,Reliance pvt
the Year 2016” LG India, Godrej & corp,Altima DLF hotel holding
equity and ADV -
award from Ludhiana Boyce systems,ETA limited,Green Infra
Partners,Singapore;
Management Ascon,Jamshedpur Assets limited;
-Worked on
Association. mineral wood manfg Adlakha & Adlakha
successful IPO;
col associates
-Received “Man of
Appliances” award
from CEAMA
Consumer Electronics
Appliances
Manufacturers assn.
THANK YOU