Genus Paper & Boards Ltd · NSE:GENUSPAPER
Genus Paper & Boards — Investor Presentation (August 2018)
35 slides from Genus Paper & Boards's investor presentation, August 2018
Slide 1: Genus Paper & Boards Ltd Investor Presentation August 2018
Genus Paper & Boards Ltd Investor Presentation August 2018
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), by Genus Paper & Boards Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall no
Slide 3: Performance Highlights Q1FY19 (YoY)
Performance Highlights Q1FY19 (YoY) Rs. Crore Revenue EBITDA PAT Growth of Growth of Growth of 66% 51% 113% 5.1 121.0 11.1 72.8 7.3 2.4 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 3 *As per Ind-AS rest as per I-GAAP
Slide 4: Performance Highlights Q1FY19 (QoQ)
Performance Highlights Q1FY19 (QoQ) Rs. Crore Revenue EBITDA PAT Growth of Growth of Growth of 21% 30% 40% 5.1 121.0 11.1 100.1 8.5 3.6 Q4FY18 Q1FY19 Q4FY18 Q1FY19 Q4FY18 Q1FY19 4 *As per Ind-AS rest as per I-GAAP
Slide 5: Improving Utilisation
Improving Utilisation Capacity 62 % 80 % 60 % 72 % 78 % 75% 85% Utilisations 13% 152,500 140,000 140,000 140,000 114,343 109,310 100,000 100,000 100,404 80,017 83,907 61,655 53,750 45,486 FY13 FY14 FY15 FY16 FY17 *FY18 **Q1FY19 *Kashipur Capacity adjusted for 2 months of operations Capacity Producti
Slide 6: Profit & Loss Statement- Standalone
Profit & Loss Statement- Standalone Particulars (Rs. Crs) Q1 FY19 Q1 FY18 YoY Q4 FY18 QoQ FY18 Revenue from Operations (Net of Excise) 121.0 72.8 66.3% 100.1 20.9% 345.6 Raw Material 78.6 54.3 55.2 234.3 Employee Cost 5.1 3.0 3.7 12.7 Other Expenses 26.2 8.2 32.7 62.6 EBITDA 11.1 7.3 51.0% 8.5 30.0%
Slide 7: We are
We are One of the Leading Dominant Player in Preferred Vendor Manufacturers of Kraft North India for Large FMCG Clients Paper in India Preferred Supplier for Reusing & Redefining Corrugated Box Waste Paper Manufacturers 7
Slide 8: Our History
Our History 1996 2002 2006 2011 2013 2015 2018 Approval for the Post the scheme of Enhance Production Leased Incorporated as Name changed Name changed to Demerger of Non Arrangement, Genus Manufacturing capacity from ‘DSM Papers to Kailash Paper Genus Paper Paper & Boards Limited Power Infrastructur
Slide 9: Experienced Board of Directors
Experienced Board of Directors Mr. Ishwar Chand Agarwal, Mr. Kailash Chandra Agarwal, Non Executive Director MD Ventured into business at early age and now has more than four decades of He has rich experience of around two decades in the business of power rich experience in diverse businesses of Pow
Slide 10: Experienced Board of Directors
Experienced Board of Directors Mr. Surya Prakash Sinha, Mr. Himanshu Agarwal, Executive Wholetime Director Executive Wholetime Director He has started his carrier by joining Genus Paper in the year 2004 and has been He has been in the employment of the Company since its inception involved in family
Slide 11: Management Team
Management Team Mr Kailash Agarwal MD Mr Sanjay Agarwal Mr Jitender Singh Mr O D Sharma Chief Financial Officer Head- Technical Head- Projects Mr G C Kothari Mr Ajeet Singh Mr. Anuj Ahluwalia Head - Commercial Head- Marketing CS & Compliance Officer 11
Slide 12: Certificates & Awards
Certificates & Awards ISO Certificates Awards For Environment Management System For Quality Management System 12
Slide 13: Business Overview
Genus energizing lives Business Overview
Slide 14: Our Products
Our Products Kraft Paper Growing Industry Demand Kraft paper is a type of industrial paper and used by packaging industry for manufacturing Industry Served corrugated boxes and liners, corrugated sacks and composite containers ~90% Used by FMCG Specification: corrugated box Consumer Durables manufac
Slide 15: Manufacturing Capabilities
Manufacturing Capabilities Leased 75,000 MTPA at Kashipur Total : 215,000 MTPA Owned 140,000 MTPA at Moradabad (UP) (Uttarakhand) 100 KG of Waste Paper 92 KG of Kraft Paper Two Waste paper based manufacturing plant of Kraft Paper within the factory premises of Moradabad (UP) Multi Layered Kraft pape
Slide 16: To address the Growing Demand
To address the Growing Demand Leased Plant Asset Light Strategy Synergy ✓ Opportunity to become a Dominant ✓ This strategy will help us to move faster in player in North India and increase our ✓ We have leased an operational the long term and build a sustainable market share manufacturing plant for
Slide 17: On Track to be the Dominant Manufacturer
On Track to be the Dominant Manufacturer Current Capacity Brownfield Expansion Future Prospect: Owned 140,000 MTPA at Moradabad Kraft Paper Demand to (UP) outpace supply by 50,000 MTPA at Moradabad (UP) Leased 75,000 MTPA at Kashipur (Uttarakhand) Strong Presence of FMCG & Leased Plant and Brownfiel
Slide 18: Paper Manufacturing Process
Paper Manufacturing Process Raw Material Paper Making (Stock Chemical Washing & Chemical Finished Agro Residue Preparation, paper Pulping Bleaching Additives Product machine etc.) Wood Mechanical Bleaching Pulping Waste paper Available in Abundance ~38% Domestic Hydro ~62% International Waste Paper
Slide 19: Cater to Packaging Needs of Multiple Industries
Cater to Packaging Needs of Multiple Industries The Brand Names/Model Designations mentioned in the Product List are the property of their respective owners 19 and are used here for identification purpose only
Slide 20: Technology Advantage
Technology Advantage Among the few Manufacturer to have Triple wire Machine Sweden machine to produce high quality finished paper by using low cost waste paper Pulp Mill is equipped to process imported mixed waste Forbes Marshall Steam & Condensate system for steam (power) saving and to improve effi
Slide 21: Competitive Advantage
Competitive Advantage One of Largest Capacities in Northern India 11 MW Co-generation Captive Power Plant Licensed borewell for sufficient Water Supply for our requirement Zero Liquid Discharge plant with full fledged waste water treatment plant Strong Relation with Key FMCG Customers 21
Slide 22: Growth Drivers
Growth Drivers Shift to Exponential Growth Value added in Demand Products Recycle & Reuse of Location Advantage Waste Paper 22
Slide 23: Opportunity for Paper Industry
Opportunity for Paper Industry India’s Paper Production share in the Global Market 18.5 Domestic Demand for Paper is expected to Grow at a 15.3 Robust Pace India, 4% Packaging Paper and Kraft 9.7 paper to outpace the industry with a CAGR rates Packaging Paper & Board 7.5 of 8.8% and 9% respectively
Slide 24: Kraft Paper: Industry Dynamics
Kraft Paper: Industry Dynamics Market Size of Pulp & Paper Industry: Kraft Paper– 4.71 MTPA Major Sourcing Countries for RM Others, 4% Kraft Paper Kraft Paper 29.0% Others, 29% Writing & Major RM: Waste USA, 43% Printing, 30% Packaging, Paper 50% Duplex Board 21.0% Industry majorly Srilanka, 5% News
Slide 25: Exponential Growth in Demand for Kraft Paper
Exponential Growth in Demand for Kraft Paper 90% of demand for Kraft paper is from Corrugated box manufacturers End Users of Corrugated Boxes 9 9 8 7.7 7.6 FMCG 53% 61% 7 6.9 6.6 6.3 6 5.7 5.6 5.2 Consumer Durables 18% 5 13% 4.7 4.8 Pharmaceuticals 7% 7% 4 4.1 Garments, Textiles & Footwear 8% 6% 201
Slide 26: Priority to End Customer is Key
Priority to End Customer is Key Corrugated Box Manufacturing industry is estimated at ~ Rs 18,000 crore of which ~35% is located at North India Of all Kraft paper Mill in North India, only 5% have capacities more than 100,000 TPA to cater to demand of large FMCG companies Genus Paper & Board Ltd has
Slide 27: Shift to Value Added Products
Shift to Value Added Products Demand For Kraft Paper in India Way Forward ✓ Add new capacities via organic and inorganic modes Higher the Burst Factor 35% (BF) better the realization ✓ Higher sales of Kraft Paper with Bursting Factor (BF) greater than 22 65% Up to 20 BF ✓ Focused towards increasing
Slide 28: Recycle & Reuse of Waste Paper
Recycle & Reuse of Waste Paper Industry will consolidate, only companies with ✓ Our’s is Zero Discharge Environment friendly ✓ Environment friendly technology process will producer survive Maximum output from Waste Paper 28
Slide 29: Paper Bags: Sustainable Alternative
Paper Bags : Sustainable Alternative 20 Indian states have a complete ban on 25 Indian states/UTs have some form of ban manufacture, supply and storage of on polythene carry bags, but it is not yet polythene bags and other plastic items such implemented as cups, plates, spoons, glasses while five st
Slide 30: Financials
Genus energizing lives Financials
Slide 31: Gaining Momentum
Gaining Momentum Revenue EBITDA Rs. Crore 346 36 316 306 289 247 26 26 19 22 121 11 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 PAT Cash PAT 15 28 10 10 20 20 18 17 7 5 5 8 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 31 *As per Ind-AS rest as per I
Slide 32: Revenue Breakup
Revenue Breakup Kraft Paper Revenue Steel Ingot Revenue Rs. Crore 328 50 281 288 239 39 208 35 121 17 9 0 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 Kraft Paper EBITDA Steel Ingot EBITDA 36 1.0 27 0.6 26 22 0.2 18 0.1 0.0 11 -0.7 FY14 FY15 FY16 *FY17 *FY18 *Q1FY19 FY14 FY1
Slide 33: Profit & Loss Statement- Standalone
Profit & Loss Statement- Standalone Particulars (Rs. Crs) FY18 FY17 YoY Revenue from Operations (Net of Excise) 345.6 305.7 13.0% Raw Material 234.3 220.7 Employee Cost 12.7 10.3 Other Expenses 62.6 52.9 EBITDA 36.1 21.7 65.9% EBITDA Margin 10.4% 7.1% Other Income 5.5 6.0 Depreciation 12.9 12.4 EBIT
Slide 34: Balance Sheet-Standalone
Balance Sheet-Standalone Assets (Rs. Crs) Mar-18 Mar-17 Liabilities (Rs. Crs) FY18 FY17 Non-current assets Equity Equity Share capital 25.7 25.7 Property, plant and equipment 218.2 229.2 Other equity 329.1 313.8 Capital work-in-progress 2.8 Sub-total - Shareholders' funds 354.8 339.6 Financial asset
Slide 35: Contact Details
Contact Details Genus Paper & Boards Limited Strategic Growth Advisors Pvt. Limited CIN: L21098UP2012PLC048300 CIN: U74140MH2010PTC204285 Mr. Lokesh Pareek Mr. Shrikant Sangani AGM- Corporate Finance & IR M: 096195 95686 lokesh@genuspaper.com shrikant.sangani@sgapl.net Mr. Anuj Ahluwalia Mr. Rahul A
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