1

2
 FY09 14017 6482

FY08 10774 6529

Total
9126 5636
FY07* Engg 20%
Sugar 35%
16%
FY06 9269 3368

FY05 7864 1947

0 5000 10000 15000 20000 25000

Rs. In million
Sugar Business
Engineering Business
FY07* - 12 months period from Oct 06 – Sep 07 3
Market leader in steam
turbines upto 20 MW Largest manufacturer
with current capacity of High speed gears
upto 30 MW size & gear boxes in India

TURBINE BUSINESS GEAR BUSINESS

GROUP GROUP

Engineering
Business

WATER BUSINESS
GROUP

A leading player in Page

the high technology 5 - 19
water & waste water
business 4
Manufacturing
Plants
Noida

Naini

Ahemdabad
Raipur Kolkata

Nagpur
Latur
Mumbai
Pune Hyderabad
Kolhapur
Vijaywada

Bangalore Corporate Office

Manufacturing Facilities
Mysore
Marketing and Service Centres

5
 4752
FY09 733
997

Sales - 35%
5092
FY08 769
668

4639

CAGR FY05 – FY09

Turbines
FY07* 605
400 Gears
Water
2780
FY06 450
138

PBIT – 69%
1626
FY05 239
82

0 1000 2000 3000 4000 5000 6000

FY07* - 12 months period from Oct 06 – Sep 07

6
Market Characteristics -
ANNUAL MARKET FOR TURBINES
Purchase decision based BELOW 15 MW IN YEAR 09-10
Premium on shorter on high levels of Demand is estimated at approx.
deliveries technology, efficiency & 1000 MW per annum including
additions on account of growth,
lower life cycle cost fulfilment of gap and replacement

Strong servicing
capabilities and lifetime
Price Sensitive market
relationship with the
customer is expected. ANNUAL MARKET FOR
TURBINES BETWEEN 15
TO 30 MW IN YEAR 09-10
Conservative domestic
demand estimate of about
1000 MW per annum
Robust designs, typically including additions on
suited for the Indian account of growth,
market are in demand fulfilment of gap and
replacement

Demand Drivers -
Power Industrial Manufacturing Replacement
Power Rates Kyoto Protocol
Shortage Growth Growth market
7
Gap between power requirement and generation getting wide - Growing
renewable energy market - huge potential for Bio mass based power
generation

Costly fuel source to influence replacement of DG to TG sets; thrust on co-

generation

Current industrial power consumption – generation gap to be bridged

– focus on captive power generation

Additional power requirement in the country estimated at

76,500 MW in next five years; incentivisation for surplus
generation and allowing open access sale of power at
remunerative prices

8
 Rising Water Demand to double by 2025 from 2000 levels
Dropping Per capita fresh water availability – 2000m3/yr in 1997 to 1500m3/yr in 2027
Growth potential in coming years in both major segments – Municipal and Industrial

Jawaharlal Nehru National Urban Renewal Mission (JNNURM ) – annual estimated water related schemes
of 13-15 billion
Over 76500 MW new power generation capacities to be added in the next five years; Annual estimated
market size of Rs. 10-13 billion for water business
Major expansion and capacity additions envisaged in steel, coal etc. – estimated annual market of Rs.7-12
billion

Asian development bank & World Bank are actively promoting privatisation and commercialisation
of water - through sector restructuring loans, urban water supply loans and urban infrastructure
loans
India is capable of becoming a global base for outsourcing in the future – low cost manufacturing and
substantial skilled human resources

High cost & scarcity of water driving manufacturing industry to have In-house water management
and water recycling programs
Stricter regulations for environmental compliance in terms of effluent and pollution control

9
Business Perspective
Cater to wide range of customers across
segments like sugar, paper, co-gen,
textiles, pharma, steel
Consistently upgrading the product
range and efficiency.
The current range of product up to
30MW
Manufacturing since 1968; over 2,500
turbines manufactured and sold since
inception
Consistently maintained dominant
market share. Commands over 75% of
market share for range up to 15 MW &
over 20% in recently entered 15 – 30
MW range
Technical Perspective
Highly efficient turbines with
indigenously developed tapered
twisted blades.
Fully integrated operations with
strong Engineering & Design team
Facility equipped with state of the art
equipments and machine tools best in
the industry
Strong in-house R&D team and tie-ups
with leading international design and
R&D establishments
10
Customer Care Refurbishing

Full Speed vacuum Balancing Tunnel for

An extensive network of 13 Service centres balancing turbines,
compressors/alternators up to 150 MW

Refurbishment & Residual Life

A strong team of 135 service professionals Assessment of all makes of turbines,
compressors etc. ; Overhauling &
troubleshooting

Reaching the customer site within 24 hours of

service call Customization & upgradation of old
turbines for power output up to 150MW
catering to Asia Pacific market

Currently over 900 turbines serviced annually

11
 5500 25 26
 Net sales for FY 09 stood at Rs. 4.75 billion 24
were marginally lower than Rs.5.09 billion in 5000 23
FY 08. This marginal decline year on year is 5092 4752
the result of the severe economic slowdown 4500 4639
21
and financial crisis in the first half of the
financial year. 4000

15 16
 The order intake during the fourth quarter 3500

PBIT Margins (%)

registered a growth of 38% in comparison to

Rs. (Millions)
third quarter of FY 09. 3000
2780
9 11
 Change in product mix, improved 2500
efficiencies, cost reduction etc., enabled
stability of margins 2000
1626 6
 Strong order in-take even under the current 1500 1280
1156
economic scenario – maintained strong 1070
market share of ~75% in sub 15MW range 1000 1
while increased market share in upto 30 MW 418
500
range 153

 Services, spares, refurbishment – 16% of the 0 -4

revenue increased during FY 09 from 12% FY 05 FY 06 FY 07* FY 08 FY 09

FY07* - 12 months period from Oct 06 – Sep 07
during FY08
Net Sales (Rs. Million) PBIT (Rs. Million) PBIT Margins (%)

 Outstanding order Book as on 30th September 2009 – Rs. 4.95 billion 12

Future Perspective

Strong Research & Development

Consistent product range expansion – higher MW, higher
pressure, higher temperature turbines

Spares & Services to form higher proportion of revenues

Refurbishment of all makes of turbines including overhauling
& troubleshooting

A dedicated in-house Training School for development of

technical skill in design, engineering, servicing

Customised operation and maintenance contracts (O&M)

Focus on Exports with expanding the market reach

Tie-up with GE Oil & Gas for Reciprocating Compressor

packaging
Tie-up with Waukesha for Gas engines
Exploring various opportunities for expanding the business
13
Business Perspective

Triveni is in the business of design, manufacture and marketing of gears and gearboxes
Highest quality - DIN 3 quality assured
The high speed gear range for steam, gas , pumps and compressor applications range above 7.5 MW-25 MW is
manufactured using technology licensed from Lufkin

State of the art design and manufacturing facility

Supplied & Commissioned the highest power (54 MW) load gear box by Triveni for a GE frame-6 gas turbine
Created new speed milestone with an order for 70,000 rpm test rig gearbox
6MW Hydel gearbox indigenously developed and commissioned
Successfully developed an off-shore flare gas compressor gearbox with integrated lube system

Own developed technology for high speed gear boxes upto 7.5 MW
Applications in power turbines, compressors, pumps etc. as a power transmission equipment
Above 25MW up to 70MW produced through a joint manufacturing programme with Lufkin
Conforms to international standards such as DIN, API & AGMA

14
 Over 60% market share in complete high 800 769 35
speed gear market across applications up to 733
70 MW. 33
700
 Supplier to all major turbine competitors 30
such as BHEL, Siemens. 605
600 29
 Major retrofitting orders executed for cement
industry, steel industry etc. Established strong 500

PBIT Margins (%)

presence in this segment 25
450

Rs. (Millions)
24
 Net sales for the year stood at Rs.733 million. 400

 The expansion in PBIT margin during the year 20

was ~ 500 basis points. 300
239 244
PBIT margins at 33% in FY 09 as compared to 220
 17
29% in FY 08. 200
146
13 15
 Improvement in margins on account of new
100 76
products, higher share of servicing, spares,
refurbishing, exports 31

0 10
 Revenues from spares, refurbishment and
FY05 FY 06 FY 07 (*) FY 08 FY 09
services reached 42% of turnover FY07* - 12 months period from Oct 06 – Sep 07

Net Sales (Rs. Million) PBIT (Rs. Million) PBIT Margins (%)

 Outstanding order Book as at 30th September 2009 – Rs. 545 million 15

Future Perspective

Focus on product development in high value added low speed applications

Installation of 2 meter CNC profile grinder and vertical turret lathe

Revenue growth & margin growth through Product diversification

Source for high precision loose gears for major MNC’s.

On the look out for expanding the products and services – to focus on OEM compressor and
pumps segment
Meeting the growing gear box demand in oil & gas segment & auxiliaries for power plants

Focus on providing refurbishment and replacement solutions for domestic and export market
Consistently maintain overall gear box quality at world class standards

16
Business Perspective

Annual estimated market for Water/Waste Treatment is ~ Rs. 50 billion with an estimated growth of
20-25%
Visible potential for water & waste water business in view of anticipated stringent environmental norms
and scarcity of water
Market is increasing substantially in all areas- desalination, water reuse and decentralised solutions

Technology association with Siemens Water Technology Business for various products & solutions
One of the widest ranges of products & technologies offered in the Indian Market

Product lines include clarifiers, aerators, filters, membrane solutions, de-watering equipment and high
purity water systems
Over 2000 numbers of process equipments for water & waste water treatment applications, supplied
and commissioned till date

17
 The water business Group (WBG) delivered a 49% 1000 17
16 997
increase in turnover in FY 09 at Rs. 997 million.
900 16
 PBIT margins for the FY 09 at 15% at Rs. 148.3 million
15 15
800
 WBG has achieved a CAGR of 87% in sales during the
last five years
700 668
13
 Focus on high value jobs like major effluent recycling, 12
installation of high purity water system etc. for major 600

PBIT Margins (%)

Rs. (Millions)
power plants
500 11
 Executed the largest industrial desalination plant, to
date in India, for a power plant 400
400

 Continue to get larger orders in the areas of high 9

technology applications. One of the major orders 300
received in FY09
7
200
138 148 7
o Largest UF-RO based boiler feed quality water 105
treatment in the country and among one of 100 82
the largest in Asia 46
22
5
 Triveni with various orders under implementation, 0 5
has the largest order booking as on now in India for FY05 FY 06 FY 07 (*) FY 08 FY 09
Membrane based water/waste water treatment FY07* - 12 months period from Oct 06 – Sep 07

plants. Net Sales (Rs. Million) PBIT (Rs. Million) PBIT Margins (%)

 Outstanding order Book as at 30th September 2009 - Rs. 1.99 billion 18

Future Perspective

Key technology applications to be used in these sectors are desalination (power & municipal),
high purity system, condensate polishing units (both for large sized power plants), biological
treatment with nutrient removal (for municipal sector), Anaerobic Treatment (ethanol
manufacturing) etc.

Triveni is capable of providing solutions across the spectrum and is gearing up further by
continually looking forward for wider product offerings in association with global technology
leaders to strengthen the current technology range and also to add new products and solutions
to address the expanding market

With the visibility of a fast growing market, WBG is estimated to grow at a CAGR of 70 -75%
in the next five years.

With the execution of high value desalination, condensate polishing units and other industrial
application orders, WBG will pre-qualify for taking up higher value orders.

19
 68 MW of
One of the largest
state-of- the – art
sugar producer in
Co-generation facility
India

SUGAR PRODUCTION DISTILLERY

SUGAR
BUSINESS

COGENERATION

One of the largest

single stream molasses Page
based distillery in the 20 - 28
country
20
 GLOBAL SUGAR INDUSTRY INDIAN SUGAR INDUSTRY

Two consecutive years of deficit in global sugar position resulted in most Country witnessed a turnaround – from an exporter of ~5 million in 2007-
of the carry forward inventory exhausted 08 season to 2.5 million tonnes of imports in 2008-09 season; imports to go
up to 5 – 6 million in 2009-10 to bridge the production consumption gap.

Sugar production in Brazil, the world’s leading sugar producer, impacted

on account of strong El-Nino pattern India produced 14.6 million tonnes during 2008-09 season, a fall of 48%
from the peak of 28.3 million tonnes achieved two seasons before.

Close to 25 – 30 million tonne of cane left unharvested due to climatic

reasons
Sugar deficit of 7.5 million tonnes during 2008-09 between production
and consumption expected to remain more or less the same in 2009-10
Lower than expected sugar cane crush for Center South region, 513
million vs 530 million expected
Recorded lowest yield and recoveries across the country in the last five
years while UP recorded lowest yield and recoveries in a decade
Lowest sucrose content at 131 kg/tone during the season – lowest since
1992

Strong sugar prices movement domestically (Oct 08 – Sept 09) – over

Cane use mix at 43% : 57% in 2009-10; estimated to remain at 40:60 60% year on year
going forward on account of strong demand for ethanol and high crude
prices.

Country’s estimated sugar production – 15 -16 million tonnes for the

Global sugar prices remained strong during Oct 08 - Sept 09 season ~ current season; thereby resulting in a gap of 7-8 million tonnes
75% increase year on year (for both raw and whites)

Global sugar prices touched record high in the last 29 -30 years Current sugar prices much higher than the average of previous quarters

21
 Profitability Margins :
Profitability Margins :
Sugar
Sugar Decline in sugarcane
utilization for sugar Power / Ethanol
Power / Ethanol Decline in area under production
sugarcane cultivation,
lower production Lower sugar production,
lower sugar availability
Delayed payment to
farmers, high sugarcane Increase in sugar prices,
arrears improved profitability

Downcycle Time Upcycle We are

Decline in sugar prices, Here
lower profitability
Higher and prompt payment
to farmers, lower arrears
Higher sugar Increase in area under
production, higher sugarcane cultivation,
Higher sugarcane
availability of sugar higher production
utilization for sugar
production

Profitability Margins : Profitability Margins :

Sugar Sugar

Power / Ethanol Power / Ethanol

22
 Particulars 2005-06 2006-07 2007-08 2008-09 (E) 2009-10 (P)

Total Opening Stocks 4.9 3.7 10.2 9.9 3.5

Production During the Season 19.3 28.3 26.3 14.6 15.0
Imports (white sugar) 0.0 0.0 0.0 0.2 2.0
Imports (raw sugar) 0.0 0.0 0.0 2.3 4.0
Imports (raw sugar processed) 1.1 5.2
Total Availability 24.1 32.0 36.5 25.8 25.7
a) Indigenous 19.3 20.2 21.7 22.3 22.8
b) Exports 1.1 1.7 4.9 0.0 0.0
Total Off Take 20.5 21.9 26.6 22.3 22.8
Total Closing Stock 3.7 10.2 9.9 3.5 2.9
% of Stock to Consumption 19% 50% 45% 16% 13%
Note: “Years” mentioned are sugar years and not calendar years. The sugar year is from October to September.
Source: ISMA/Company Estimates

At 16% in terms of the stock to consumption ratio, this ratio is the lowest in a decade

Closing stock taken as a percent of consumption is one of the indicators of sugar price movement.
23
 08-09
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
(P)

Cane Area
(Million 2.14 2.05 2.15 2.40 2.30 2.04 2.31 2.66 2.85 2.14
Hectare)
Average Yield
(Tonnes/ 57.58 54.40 57.85 55.96 54.98 60.65 58.32 59.59 56.44 51.77
Hectare)

Sugarcane
Production 123.24 111.74 124.49 134.53 126.65 124.02 134.68 158.62 160.86 110.78
(Million Tonnes)

Drawal (%) 39.59 40.40 44.35 44.06 36.60 41.50 45.15 56.42 46.44 41.00

Recovery (%) 9.34 9.73 9.53 9.53 9.82 9.79 9.51 9.47 9.79 8.91

Sugar
Production 4.56 4.39 5.26 5.65 4.55 5.04 5.78 8.48 7.32 4.05
(Million Tonnes)
Source: UP Government Cane Department

Sugar yield and recovery in 08-09 season was the lowest in a decade
24
• Major facilities located in cane rich areas of
Western Uttar Pradesh with more than 80% cane
intensity – fertile and irrigated land

Deoband Chandanpur
(14,000 TCD) (6,000 TCD)
• Sugar cane catchment area for all sugar units
under canal irrigation – both in Western & Central Raninagal
(5,500 TCD)
Uttar Pradesh - Lower dependency on monsoon

Khatauli
Milak
(16,000 TCD)
Narainpur
• Closer to country’s major sugar consuming markets - (6,000 TCD)
better realizations & lower transportation cost
Sabitgarh
(7,000 TCD) Ramkola
(6,500 TCD)

• Long term relationship with ~ 250,000 farmers

• Extensive sugar cane development programme – to

develop new areas under cane cultivation in our new
locations; improving yields of cane across the units

25
 Crushing started late during 2008-09 season and on  Free Sugar realizations grew sequentially in FY 09 with a year on
account of lower yield and recoveries due to climatic year increase of 45%
factors, the total cane crush was 3.73 million tonnes,  Higher realizations enabled sugar business to achieve a PBIT
decline of 36% compared to previous season. margin of 16% during FY 09
 Declining in yields and recoveries were a nation-wide Sugar Season 2009-10
phenomenon during 2008-09 season
 Extensive Cane development programme undertaken to
 Sugar recoveries were lower at 8.98% resulting in lower ensure adequate cane availability
sugar production of 336,330 tonnes, decline of 42%
 Sugar cane yield expected to be higher than the previous
compared to previous season - as against a decline of 45%
season, thereby having more cane for crushing
across the State of Uttar Pradesh
 Triveni, with intense cane development programme,
 UP experienced lowest yield and recovery in a decade expects to crush more sugar cane during the current
during 2008-09 season.
 Sugar cane pricing for 2006-07, 2007-08 & 2008-09 before  Imported 90,000 tonnes of raw sugar at competitive
the Supreme Court prices to augment sugar production in the coming season
 GoI announced FRP of Rs. 129.84 per quintal for 2009-10
 Overall sugar production for 2009-10 expected to be higher
season, while UP announced SAP of Rs. 165 per quintal for than 2008-09.
normal variety.
 Sugar prices to remain firm on account of estimated lower
production

FY 04 FY 05 FY 06 FY 07 (*) FY 08 FY 09
Net Sales (Rs. Million) 4470 7676 8663 7605 8863 12529
PBIT (Rs. Million) 437 1404 1351 (900) 359 2023
PBIT Margins (%) 9.8 18.3 15.6 (11.8) 4 16
FY07* - 12 months period from Oct 06 – Sep 07
Sugar Manufactured (000 t) 444 384 381 591 580 336
FY07* - 12 months period from Oct 06 – Sep 07 26
 1400 45
 68 MW of co-generation capacity in two units; 42 – 1339
43 MW of exportable power during season and off- 1300
season
1200 1174
 On account of lower cane crush during the current 41 40
1100
season, the number of days of operations for co-
generation facilities were significantly lower than the 1000 948
previous season and operated only for 127 days in
FY 09 as compared to 200 days in FY 08 900
35

PBIT Margins (%)

Rs. (Millions)
800
 The co-generation units generated 172.31 million
34
units of power and exported 111.85 million units to 700
the grid. 606
600
30
 UPERC for the next five years has revised the tariff
500 476
for the sale of power bide it’s order dated Sep. 2009 449
resulting in an increase of around Rs. 0.80 per kwh 400
for our plants. 27
300 24
188 25
 Facilities
eligible for carbon credits under “Clean 201
200 165
Development Mechanism”
100 45
 Approx. 58000 CERs for Khatauli approved by 21
UNFCCC for the period April 2007 to March 2008 . 0 20
CERs for the same period for Deoband is under FY 05 FY 06 FY07 (*) FY 08 FY 09
FY07* - 12 months period from Oct 06 – Sep 07
process and is expected in Q3 FY10.
Sales (Rs. Million) PBIT ( Rs. Million) PBIT Margins (%)
27
 Integration of Sugar operation – value addition of
by-product - molasses
 160 KLPD distillery, commissioned in April 2007,
is one of the largest single stream molasses based
distillery in the country and is located at
Muzaffarnagar
 Ideally located to use the molasses from two
of the major units viz., Khatauli & Deoband
 Recorded 98% capacity utilization in FY 09 as
compared to 97% in FY 08
 In this short span of time, started producing one
of the country’s best quality ENA
 Production was lower by 39% during FY 09 as
compared to FY 08.
 Significantly lower production & sales during the
quarter on account of lower than expected
alcohol prices
 With significantly lower production of sugar in
2008-09, the alcohol prices were expected to rise,
however, the rise in alcohol prices were not significant
when compared with molasses prices
 Average realization of alcohol for FY 09 was Rs. 28.18
per litre
 Recovery increased in FY 09 to 236 Ltr/tonne of Molasses
due to much lower fermentation and distillation
efficiencies
 Substantial quantity of molasses in stock - option to
process adequate quantity to manufacture alcohol –
based on economic viability of alcohol prices vis-à-vis
molasses price
28
Our long-term corporate vision is to:
(a) Maintain a Top 3 position in each of our businesses within the applicable market segment
The market segment for the Turbines business is the global market while for the sugar business it is India
(b) Create value and delight for our customers and stakeholders
(c) Incorporate technology as the key differentiator to deliver growth and to sustain leadership

SUGAR BUSINESS ENGINEERING BUSINESS

SUGAR MANUFACTURING TURBINES BUSINESS

• Stabilise the installed Capacity
• Achieve greater raw material security
• Strengthen farmer relationships
• Thrust on cane development and continuously improve
technology in sugar manufacturing
• Upgrade & maintain manufacturing excellence
• Constant technology & developmental improvement
• Using superior service as a differentiator
• Broaden the market for Steam Turbines
GEARS BUSINESS

CO-GENERATION & DISTILLERY • Increase product range

• Value addition of by-products to be achieved by maximum • Diversify and broaden our customer base
integration of operations WATER BUSINESS
• Explore organic and inorganic expansions, depending on • Focus on Technology
opportunities and market • Focus on high margin equipment and solutions
29
 Disclaimer
For more details contact:
CN Narayanan
Triveni Engineering & Industries Ltd.
Tel. +91 120 430 8000 Fax : +91 120 431 1010
cnnarayanan@trivenigroup.com
Gavin Desa/ Saurav Shah
Citigate Dewe Rogerson
Tel: +91 22 4007 5000
Fax: +91 22 2284 4561
gavin@cdr-india.com / saurav@cdr-india.com
Some of the statements in this presentation that are not historical facts are
forward looking statements. These forward-looking statements include our
financial and growth projections as well as statements concerning our plans,
strategies, intentions and beliefs concerning our business and the markets in
which we operate.
These statements are based on information currently available to us, and we
assume no obligation to update these statements as circumstances change.
There are risks and uncertainties that could cause actual events to differ
materially from these forward-looking statements. These risks include, but
are not limited to, the level of market demand for our services, the highly-
competitive market for the types of services that we offer, market conditions
that could cause our customers to reduce their spending for our services, our
ability to create, acquire and build new businesses and to grow our existing
businesses, our ability to attract and retain qualified personnel, currency
fluctuations and market conditions in India and elsewhere around the world,
and other risks not specifically mentioned herein but those that are common
to industry.
Further, this presentation may make references to reports and publications
available in the public domain. Triveni Industries Ltd. makes no
representation as to their accuracy or that the company subscribes to those
views / findings.
30