Genus Paper & Boards Ltd · NSE:GENUSPAPER
Genus Paper & Boards — Investor Presentation (October 2018)
37 slides from Genus Paper & Boards's investor presentation, October 2018
Slide 1: Genus Paper & Boards Ltd. exchange filing cover letter
G‘é’nus §\\\V//é =iilli8n< Genus Paper & Boards Ltd. (A Kailash Group Company) energizing lives w CIN N0 : L21098UP2012PLCO48300 PAN NO-AAECGS483A Corporate Office : D-116, Okhla industrial Area, Phase-l, New Delhi-110 020, India Ph. : +91-11-47114800, Telefax : +91-11—47114833 October 31 , 2018 BSE
Slide 2: Genus Paper & Boards Ltd Investor Presentation October 2018
Genus Paper & Boards Ltd Investor Presentation October 2018
Slide 3: 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 4: Performance Highlights
Performance Highlights
Slide 5: Performance Highlights H1FY19 (YoY)
Performance Highlights H1FY19 (YoY) Rs. Crore Revenue EBITDA PAT +58.1% +16.8% 253.2 19.5 6.5 6.5 16.7 160.2 H1FY18 H1FY19 H1FY18 H1FY19 H1FY18 H1FY19 Business highlights: Decline in profitability can be attributed to the following : • The Power & Fuel cost (P&F cost) was 9.5% of sales in H1FY18 whi
Slide 6: Improving Utilisation
Improving Utilisation Capacity 62 % 80 % 60 % 72 % 78 % 75% 86% Utilisations 13% 1,52,500 1,40,000 1,40,000 1,40,000 1,14,343 1,09,310 1,07,500 1,00,000 1,00,000 1,00,404 92,305 80,017 83,907 61,655 FY13 FY14 FY15 FY16 FY17 *FY18 **H1FY19 *Kashipur Capacity adjusted for 2 months of operations Capaci
Slide 7: Gaining Momentum
Gaining Momentum Revenue EBITDA Rs. Crore 346 36 316 306 289 247 253 26 26 19 22 19 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 PAT Cash PAT 15 28 10 10 20 20 18 17 7 7 13 5 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 6 *As per Ind-AS rest as per I
Slide 8: Revenue Breakup
Revenue Breakup Kraft Paper Revenue Steel Ingot Revenue Rs. Crore 328 50 281 288 239 253 39 208 35 17 9 0 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 Kraft Paper EBITDA Steel Ingot EBITDA 36 1.0 27 0.6 26 22 0.2 18 19 0.1 0.0 -0.7 FY14 FY15 FY16 *FY17 *FY18 *H1FY19 FY14 FY1
Slide 9: Profit & Loss Statement- Standalone
Profit & Loss Statement- Standalone Particulars (Rs. Crs) Q2FY19 Q2FY18 YoY H1FY19 H1FY18 YoY Revenue from Operations (Net of Excise) 132.2 87.4 51.3% 253.2 160.2 58.1% Raw Material 88.6 60.8 167.2 111.1 Employee Cost 2.9 3.0 8.0 5.9 Other Expenses 32.3 14.2 58.5 26.4 EBITDA 8.4 9.4 -10.2% 19.5 16.7
Slide 10: Balance Sheet-Standalone
Balance Sheet-Standalone Assets (Rs. Crs) Sept-18 Mar-18 Liabilities (Rs. Crs) Sept-18 Mar-18 Non-current assets Equity Equity Share capital 25.7 25.7 Property, plant and equipment 213.3 218.2 Other equity 333.7 329.1 Capital work-in-progress 4.7 2.8 Sub-total - Shareholders' funds 359.4 354.8 Finan
Slide 11: 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 10
Slide 12: 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 13: 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 14: 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 15: 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 14
Slide 16: Certificates & Awards
Certificates & Awards ISO Certificates Awards For Environment Management System For Quality Management System 15
Slide 17: Business Overview
Genus energizing lives Business Overview
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 22 and are used here for identification purpose only
Slide 24: 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 25: 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 24
Slide 26: Growth Drivers
Growth Drivers Shift to Exponential Growth Value added in Demand Products Recycle & Reuse of Location Advantage Waste Paper 25
Slide 27: 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 28: 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% Srilanka, 5% Newspri Duplex Board 21.0% Industry majo
Slide 29: 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 30: 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 31: 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 32: 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 31
Slide 33: 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 34: Financials
Genus energizing lives Financials
Slide 35: 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 36: 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 37: 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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