Stock Picks: Triveni Turbine Ltd

Triveni Turbine Ltd (TTL) is a leading manufacturer of steam turbines up to 30MW range for providing industrial and renewable power solutions. It also offers servicing, operation and maintenance of steam turbines.

Key Facts:
– Market leader in India with around 60% market share for a decade
– The domestic steam turbine market is a duopoly market
– Triveni and Siemens together command 90% market share in India
– Steam turbines are technology intensive products
– Products meet the most stringent international quality standards
– Significant entry barrier due to its technology tie-up with GE and experience
– Complex technology, high level of customization, and small market size that discourages entry of larger players
– Triveni offers high quality products at a lower price than its competitors owing to low cost manufacturing in India
– Triveni offers maintenance and support of turbines up to 300MW irrespective of the manufacturer
– Over 2500 steam turbines installed globally in more than 50 countries
– GE Triveni Ltd, a 50:50 JV between TTL and GE for turbines in the 30-100MW range
– 59% of its revenue comes from export business
– Export business grew at a CAGR of 35% in the past 5 years
– 22% of its revenue comes from maintenance and support of turbines
– The revenue from maintenance is increased from 16% in FY11 to 22% in FY16
– TTL has filed 170 patent applications in India and Abroad

Management:
– Mr. Dhruv Sawhney is the chairman of Triveni. He holds an MBA from Wharton
– Mr. Dhruv is the chairman of the India steering committee at the World Economic Forum
– Mr. Nikhil Sawhney is the vice chairman of Triveni. He holds an MBA from Wharton
– Able and honest management

Investors:
– Promoters hold 70% of the company
– Nalanda Capital holds 10.8% of the company
– Amansa Capital holds 4.5% of the company
– Mutual Funds hold close to 4.8% of the company

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