Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (March 2020)
47 slides from Kansai Nerolac Paints's investor presentation, March 2020
Slide 1: Corporate Presentation
Corporate Presentation March 2020 March 2020
Slide 2: Corporate Overview
CORPORATE OVERVIEW March 2019 March 2020
Slide 3: Kansai Nerolac Paints Ltd.
Kansai Nerolac Paints Ltd. Parameter Ownership Subsidiary of Kansai Paint, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover (FY 18-19 standalone) Rs. 51736 Mn. PBT (FY 18-19 standalone) Rs. 7134 Mn. Market Cap (31st March 2019) Rs. 247094 M
Slide 4: Company Vision
Company Vision “We design solutions that Protect, Inspire and Touch Lives every day” March 2019 March 2020
Slide 5: Company Mission
Company Mission We leverage superior technology to contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of Customer Focus, Integrity and Respect to our Stakeholders. March 2019 March 2020
Slide 6: Core Values
Ig” NEROLAC Core Values i icare! cS ie integrity customer focus accountability respect entrepreneurial innovation mindset March 2020
Slide 7: icare! Logo
icare! Logo Representation of an Different colours enthusiastic group of acknowledge and people, together encourage our around a single diversity as a purpose group “i”stands for “!”represents the role that the each irreverenc organisation e in Innovation member plays Initials of each Core Value Cal
Slide 8: Strong Legacy 99 Years History
Strong Legacy 99 Years History Year Key Milestone 1920 Started as Gahagan Paints and Varnish Co. Ltd 1957 Changed name to Goodlass Nerolac Paints Ltd. 1976 Became Part of TATA group 1986 Acquisition of stake by Kansai Paint, Japan 2000 Became subsidiary of Kansai Paint, Japan 2006 Change of name to
Slide 9: Kansai Paint, Japan
Kansai Paint, Japan • Japan’s largest paint company • 8th largest Paint company globally • Among top 5 global automotive paint companies • Presence in 80 countries via 152 companies • Gross sales over 3.9B USD March 2019 March 2020
Slide 10: Shareholding Pattern (31st March, 19)
Shareholding Pattern (31st March, 19) KPJ Institutional Others 9.65% 15.36% 74.99% KPJ-Kansai Paint Japan March 2019 March 2020
Slide 11: Industry Overview
INDUSTRY OVERVIEW March 2019 March 2020
Slide 12: Indian Economy
Indian Economy Political Stability Fiscal Prudence *Source: IMF Fiscal Monitor(Estimated) Series of reforms Ease of Doing Business Ranking Pro- Industry environment 2015 2016 2017 2018 2019 Strong Governance 142 130 100 77 63 *Source: World bank *Source: 2.5 GDP Per Capita World bank 2.0 (in USD 2.0
Slide 13: Indian Paint Industry Facts
Indian Paint Industry Facts Parameter Facts Size Over $7 Billion Growth Rates Double digit since 1991 Organized : Un-organized Market 70:30 Per Capita consumption ~4 kg (Global average @12-15 kg) • Favorable demographics • Rapid urbanization • Make in India Future Growth Drivers • Infrastructure gro
Slide 14: Kansai Nerolac Paints Ltd
KANSAI NEROLAC PAINTS LTD March 2019 March 2020
Slide 15: Traditional Business Markets
Powder Coatings High performance General Industrial Coatings Coatings Traditional Business Markets Automotive Coatings Decorative Coatings Auto Refinish (ARF) Coatings March 2019 March 2020
Slide 16: Decorative Coatings
Decorative Coatings Exterior Economy Popular Premium Super Premium Interior Economy Popular Premium Super Premium Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes March 2019 March 2020
Slide 17: Automotive Coatings
Automotive Coatings Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints) March 2019 March 2020
Slide 18: General Industrial Coatings
General Industrial Coatings Sewing Machine Drums & Barrel Gas Cylinder Helmet Coating Security Equipment ZIp Electrical Equipments Agricultural Equipment Generator Sets Pre Engineering Building General Industrial : Market leader with wide range to cater to a variety of Industries March 2019 March 20
Slide 19: High Performance Coatings
High Performance Coatings Petroleum / Petrochemical Metal Industries Fertilizer Industries Infra Cement Industry Railways High Protective Coatings: Wide range to tackle corrosion protection March 2019 March 2020
Slide 20: Powder Coatings
Powder Coatings Light Fixtures Electrical Equipments Fans Auto Ancillary Refigerators Washing Machine Air Conditioner Microwaves Powder Coatings: Leadership through a variety of products March 2019 March 2020
Slide 21: Selective List of Customers
Selective List of Customers Automotive Coatings And many more... March 2019 March 2020
Slide 22: Selective List of Customers
Selective List of Customers General Industrial Coating High Performance Coating Powder Coating And many more... March 2019 March 2020
Slide 23: New/Emerging Business Markets
Floor Coatings Rebar Coatings Construction Chemicals Railway Coatings New/Emerging Business Markets Adhesives Coil Coatings March 2019 March 2020
Slide 24: Subsidiaries
Subsidiaries Nepal • Operations Started in 2012 • Fastest growing company • 3rd biggest player in Nepal Amt NPR Mn On Acquisition March 2018 March 2019 Turnover 250.0 1027.8 1348.5 PBT (10.0) 145 224.2 Sri Lanka • Operations Started in 2017 • Tie-up with one of the largest conglomerates in Lanka Amt
Slide 25: Subsidiaries
Subsidiaries Bangladesh • Acquired in 2018-19 • Diverse range of products in Decorative and Protective coating Amt BDT Mn March 2019 Turnover 1100 PBT (104) Marpol • Acquired in 2018-19 Amt Rs Mn March 2019 Turnover 620.3 PBT 19.3 March 2019 March 2020
Slide 26: Known for Innovation - Branding
Known for Innovation - Branding Products Pioneering concepts (Lead free, Low VOC, Healthy Home Paints) Celebrity Endorsement Use of Social, Digital & Mobile Use of Sports for Endorsement Modern Retail March 2019 March 2020
Slide 27: Known for Innovation - Technology
Known for Innovation - Technology Collaborations R&D Prowess Technology Innovations Technology Innovations March 2019 March 2020
Slide 28: Known for Innovation - IT
Known for Innovation - IT Supply Dealer Vendor ERP CRM Ariba EHS HR Chain Portal Portal Analytics Engine IoT, Predictive analytics, ML(SAP Leonardo), RPA Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology) March 2019 March 2020
Slide 29: Distribution
Distribution British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001 March 2019 March 2020
Slide 30: Capacity
Capacity Year Annual Capacity in KL/MT Existing 2017-18 4,10,000 2018-19 4,50,000 Current 2019-20 5,10,000 Planned 2020-21 5,25,000 1 Green field Project in Pipeline March 2019 March 2020
Slide 31: Environmental Initiatives
Environmental Initiatives Publishing Report since 2005. Sustainability report as per GRI Implemented SAP EHS in 2011 guidelines since 2012 Water and Carbon Foot print Zero Liquid discharge at all tracking manufacturing facilities Products meeting VOC regulation Reduction in Co2 emissions Green Progr
Slide 32: People Initiatives
People Initiatives Young Vibrant organization with Professionally run & managed average age of organization 35 Core Values & Competency Transparent Performance Framework defined Management System March 2019 March 2020
Slide 33: Our CSR Activities
Our CSR Activities March 2019 March 2020
Slide 34: Strength of the Nerolac brand
Strength of the Nerolac brand One of India’s most trusted Brands March 2019 March 2020
Slide 35: Some Important Awards
Some Important Awards Institute of Company Secretaries : Best Supplier Award – HMSI - 2016 Corporate Governance - 2007 Best Supplier Award Toyota -2017 Golden Peacock : Corporate Governance – Best Vendor Award – Suzuki - 2017 2005 Best Vendor Award for Cost – Toyota -2016 Best Managed Company : Busi
Slide 36: Some Important Awards
Some Important Awards Asian Manufacturing Excellence Award-Frost National Energy Conservation (Jainpur)- & Sullivan-2010 Ministry of Power GOI-2006 Certificate of merit-Lote(Zero Accident Environmental Excellence Gold Award-Lote Frequency)-National safety council Greentech Environment excellence-200
Slide 37: Some Important Awards
Some Important Awards ACE Awards,SAP-2012,2014,2016 Among the top 50 CEO’s-Entrepreneur SAP Awards Indus-2014 Magazine-2014 Best APO Implementation-PC Quest 2008 Best CEO in chemicals category-Business Today- Hall of fame-CTO forum 2008 2017 Gold CIO of the year-Data quest of the Asia Pacific Entrep
Slide 38: 18-19 Key Achievements
18-19 Key Achievements Sustainable growth • Double digit growth in Decorative, with Market Share gain in All Industrial segments • Inorganic growth via M&A in international and niche markets Branding • Mr. Ranveer Singh signed up as new face of Nerolac brand • Continued sponsorship & branding in spo
Slide 39: 18-19 Key Achievements
18-19 Key Achievements Technology • MonoCoat and Common Painting system launched resulting in 50% reduction in energy for consumers • Product launched which captures indoor air Pollutants and free Formaldehyde, making the air cleaner Recognition • Vendor Award by Honda & BHEL • Lote and Bawal plant
Slide 40: Financials
FINANCIALS March 2019 March 2020
Slide 41: Financials
Financials Sales in Mn 6000 5174 5000 4531 4737 4245 3990 4000 3000 2000 1000 0 2015 2016 2017 2018 2019 March 2019 March 2020
Slide 42: Financials
Financials PBDIT % 20.0 18.3 17.2 15.5 14.3 15.0 12.8 10.0 5.0 0.0 2015 2016 2017 2018 2019 March 2019 March 2020
Slide 43: Financials
Financials Market Capitalisation (In Mn) Dividend % 300000 271720 350 305 246420 300 250000 300 260 260 203680 200000 250 151710 200 150000 116510 140 150 100000 100 50000 50 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Shareholders fund (In Rs Mn) 4000 3424 3125 3000 2805 2503 2000 1597 10
Slide 44: Financial Ratios
Financial Ratios Return on capital employed % Earning Per Share 30.0 26.9 26.8 12.0 24.2 25.0 9.6 25.0 10.0 9.4 20.8 8.7 20.0 8.0 6.7 15.0 6.0 5.0 10.0 4.0 5.0 2.0 0.0 0.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Return on Net Worth % 20.0 18.5 18.0 17.0 16.5 15.0 13.6 10.0 5.0 0.0 2015 201
Slide 45: Standalone Snap Shot
Standalone Snap Shot FY 2001 FY 2019 CAGR from 2001 Sales Rs. mn. 6830 51736 12 PBDIT Rs. mn. 480 7420 16.4 PBT Rs. mn. 330 7134 19 EPS Rs 0.44 8.7 19 times Market Capitalization 1380 247094 179 times Rs Mn March 2019 March 2020
Slide 46: Consolidated Snapshot
Consolidated Snapshot FY 2001 FY 2019 CAGR from 2001 Sales Rs. mn. 6830 54243 12 PBDIT Rs. mn. 480 8129 17 PBT Rs. mn. 330 6967 18 March 2019 March 2020
Slide 47: Thank You
Thank You March 2019 March 2020
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