International Conveyors : Transcript of Analysts/Institutional Investor Meet/Con. Call

"International Conveyors Limited Q4 FY-22 Earnings

Conference Call"

June 17, 2022

MANAGEMENT: MR. UDIT SETHIA - NON-EXECUTIVEDIRECTOR,

INTERNATIONAL CONVEYORS LIMITED

MR. PRASAD SUDHAKAR DESHPANDE -EXECUTIVE

DIRECTOR, INTERNATIONAL CONVEYORS LIMITED

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	International Conveyors Limited
	June 17, 2022
Moderator:	Good evening, ladies and gentlemen and welcome to Q4 and year ended March 31st, 2022,
	Earnings Conference Call of International Conveyors Limited organized by Orient Capital.
	This conference call may contain forward looking statements about the Company which are
	based on the beliefs, opinions and expectation of the Company as on date of this call. The
	statements are not the guarantees of future performance and involve risks and uncertainties,
	that are difficult to predict.
	As a reminder, all participants' lines will be in the listen-only mode and there will be an
	opportunity for you to ask questions after the presentation concludes. Should you need
	assistance during the conference call, please signal an operator by pressing '*' then '0' on your
	touchtone phone. Please note that this conference is being recorded.
	Today on the call, we are joined by Mr. Udit Sethia - Non-Executive Director along with Mr.
	Prasad Sudhakar Deshpande - Executive Director of International Conveyors Limited. I now
	hand the conference over to Mr. Udit Sethia - Non-Executive Director. Thank you and over to
	you sir.
Udit Sethia:	Good evening and warm welcome to all the participants, this side Udit, thank you for joining
	us today to discuss the International Conveyors Limited Q4 and FY 2022 Results, I am joined
	by my colleague, Mr.PrasadDeshpande,from International Conveyors and our Investor
	Relationship partner Orient Capital.
	I hope everyone got an opportunity to go through our Financial Results and Investor
	Presentation which has been uploaded on the stock exchange as well asCompany's website. As
	you all are aware we are hosting Earning Conference Call for the first time and with an intent
	to continue this activity regularly to keep our investor/analysts updated about the development
	in the business.
	I would now request, Mr. Prasad to give a brief description of the Company and product, we
	manufacture so that it could be helpful for the participant who are new to the Company to
	understand us a little in detail. Prasad, over to you.
Prasad Deshpande:	It is my pleasure just to brief you about the Company ICL was founded in 1973 and is engaged
	in the manufacturing and marketing of solid woven fabric reinforce PVC, which is basically a
	polyvinyl chloride fire retardant, anti-static belting. ICL conveyor belting was made in
	accordance with the British underground coal standards through its licensing arrangement with
	Scandura. ICL had actually a collaboration with Scandura up to 1991-1992 and when Scandura
	was bought over by our competitor Fenner, this collaboration broke but then ICL grew after
	that.

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International Conveyors Limited

June 17, 2022

We manufacture the most extensive range of products comprising of Type-3 to Type-6 that are most suitable for the domestic market and Type-3 to Type-18 which is more popular in overseas market. When we say about Type-3 or Type-6 or Type-18. It basically talks about the strength of the belt. Like Type-3 the strength of the belt is 3000 pounds per inch, whereas Type-18 when we talk it is 18,000 pounds per inch.

We provide several value-added products in sales mix and account several demanding multinational as a brand. We enjoy robust relationship with several reputed Indian as well as international vendors for cost effective with uninterrupted sourcing of key raw materials. In the field of producing solid woven fire retardant, anti-static PVC conveying belting for underground mining. We are India's largest listed Companyhaving almost 40% market share as far as domestic is concern. We are ISO 9001:2015 certified Company meeting internationalquality benchmark. We also enjoy our several certifications and endorsement from stringent global regulatory bodies. See for example, since this belting is going for the underground mining, we need to have approvals from individual government. For example, if we are to supply to US, if we are to supply to Canada, if we are to supply to Europe, each government they are having their stringent requirements and we need to have approval from that and we are happy to inform you that we almost have all the global approvals.

We also have two international subsidiaries, International Conveyors America Limited and International Conveyors Australia Limited and through our subsidiaries, we supply to America and Australia. We are more than three decades of experience in research and development, manufacturing and marketing of conveyor belting for underground mining operations. We are emerged as a global leader in the conveyor belting products and service and we are one of largest manufacturer of solid woven belting in the world and exports almost around 80% of our revenue.

Our sound technical base that was built over the years as allowed us to contribute developing technology and knowhow through our own resources. As I said, we have almost close to 40% market share in Indian underground PVC conveyor belt market and we are one of the major suppliers of FRAS. FRAS is basically a fire retardant anti-static belting for conveying coal and potash.

In financial year 2022, Company dispatched close to 480,000 meters compared to previous year, 434,000 which is year-to-year growth of almost 11%. We have a complete product range with the ability to make conveyors upto 3150 kN/m. See for example, when we talk about 3150 kN/m which is nothing but is Type-18, which 18,000 pounds range and we can manufacture belting starting from 600 millimeter to 1800 millimeter. This is the widest product range of solid woven belting available from any of the Company. We basically have two manufacturing facilities in India, one is in Aurangabad which is in Maharashtra and other manufacturing facility which we have is in West Bengal, the place called Falta and which is part of our SEZ. The high standards of quality control and every stage confirming the highest

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International Conveyors Limited

June 17, 2022

global standard and safety and performance. Our efficient R&D capability quickly adopt to our regulatory changes in various countries to aid to growth in the exports.

The Company has regulatory approvals with the products using underground mines in India, US, UK, Canada, Australia, South Africa and China. Our major export is to US, Australia and Canada and we are considered as the preferred suppliers, the world's largest potash manufacturing companies and we are also supplying now to UK, South Africa and Latin America and our next endeavor is to supply to Europe and Central Asia. During 2014 to 2019, we diversified into a new customer segment because prior to that we were just concentrating on our coal industry and then we had diversified even to potash. So ICL forward in export market to serve the needs of miners of potash, phosphate etc. in North America as a favorable regulation led to a growth coal mining in USA. We design and develop based on the customer requirement like for example, the requirements of potash or the gypsum is slightly different than the coal. So, we have developed products accordingly and then we started supplying with them.

We are also associated with a Company called Mato Industry which is basically from Germany and they have a head quarter in UK for supplying their fasteners and we are their sole distributors in India to supply their fasteners and the limited accessories. We have a depth of engagement leading to customer strictness, dual stage approval process to be an approved supplier and long-term contracts with approved suppliers to avoid long gestation and tedious process of approvals for vendor's selection. As on date, we have a long-term contract with majority of the customer which is ranging between 5-7 years.

ICL is constantly working on initiative that focus on a sustainability that we produce more green energy than we consume.We have five windmills which are situated basically in Karnataka, Maharashtra, Gujarat and Andhra Pradesh and we produce more green energy than we consume. We have always tried to grab the opportunities to maintain our leadership position in the market. Developing nations have observed robust industrialization due to the presence of huge, customer based along with their respective governments implementing policies to attract foreign investment to boost the mining and manufacturing sectors.

We are future ready; our strategy and endeavor isto hence customer based in US and Canada where ICL is already enjoying significant customer relationship. Penetrate further into Australia underground coal mining segment to grow in South Africa market, start supplies to Europe, which we have already started now and then start working with Central Asia. Over the period, commodity sector has been under capitalized growth in capacities envisage higher demand generation for our products across the sectors. This diversifying boarder books from multiple industries. Recently, we have also started supplying in the cement industries and other aggregate industries like crusher industries and other peer. So, we are not just restricting to coal and potash but now we are diversifying to other industries also.

So that is brief about ICL and then I think it is open for discussion.

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