Modison metals

Investor Meet (2022- 09 - 28)

• Background

  • Start: 1965

  • make various components which are part of Power Sector (mainly switchgear industry).

  • tech-transfer tie up with DODUCO, Germany (pioneer in the name of components for switchgears)

    • this lasted between 1983-98 (~15yrs)

    • meanwhile devd. there own R&D

  • in the same group have another company: Modison Copper Pvt ltd.

    • separate company deals with Cu and Cu alloys

• Current Business:

  • LV & HV switchgear contacts

    • mostly Ag and Ag alloy contacts.

      • LV

        • several old series contacts + new series

        • Customers: L&T, Schneider, ABB, GE, Havells.

        • LV Segment: multi customer, multi supplier market (150 Bn USD market)

          • competition: Choksi heraues, Modicon, Hindustan platinum

          • mostly based on domestic demand (mkt share: 16-17% > Choksi > HP)

          • less value add

          • expect higher growth (>15%)

            • attributed to power sector growth

            • RE and urbanisation growth

            • infra boom

  • HV segment of switchgears + contacts for HV equipment (mainly Cu and Cu tungsten alloy)

    • air-insulated switchgear segment

    • gas-insulated SWG segment

    • Customers: Hitachi, Toshiba, GE, Siemens

    • main player in India (~80% market share or USD 15million)

    • customers changing foot print eg ABB/Hitachi now moved prodn from Sweden to India and Vietnam.

• Financials

  • last year: 350cr. revenue

    • LV: 240cr (Choksi did 206cr.) (lower margin business)

      • EBIDTA fluctuates as 80-90% cost is of pure Ag

    • HV: 100 (higher margin bsuiness)

    • Last 4 years: 16% CAGR growth (primarily volume growth)

• Operations:

  • lean six sigma use

  • BF + GF expansion (total: 25cr.)

    • to make factories future ready

    • globally compliant

    • LV factory almost ready; plan to finish by Nov

    • HV factory plan to finish by end of this FY

• Projections

  • 500cr revenue by 2025; 1000cr by 2030

(Discl: no investments)