Pidilite Industries Limited · NSE:PIDILITIND
Pidilite Industries — ICICI Securities APAC Conference 2018 - 'India Unlimited'
34 slides from Pidilite Industries's conference presentation, Feb 5, 2018
Slide 1: Investor Presentation intimation to stock exchanges
assiatit, Pidilite 5th February, 2018 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalai Street, Fort Sandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock
Slide 2: Investor Presentation January 2018
Investor Presentation January 2018
Slide 3: Presentation Structure
Presentation Structure • • • • •
Slide 4: Company Overview
Company Overview • Established in 1959 • Pioneer in Consumer & Specialty Chemicals in India • Over 2/3rd of sales from products and segments pioneered in India • High market share and strong position in most products and segments • Consistent growth in sales, profits and dividend payout. • Consolida
Slide 5: Sustainable strong growth
Sustainable strong growth … In Rs Million 14,000 70,000 12,622 60,623 12,000 60,000 10,000 50,000 8,000 40,000 30,000 27,863 6,000 4,345 20,000 4,000 10,555 10,000 2,000 1,302 - - 2005-06 2010-11 2016-17 2005-06 2010-11 2016-17 Consolidated Revenue (Millions)** Consolidated PBIT (Millions) **on a co
Slide 6: YTD FY18 Revenue & Profit
YTD FY18 Revenue & Profit In Rs Million 60,000 14,000 47,335 12,000 50,000 46,580 10,773 10,030 10,000 40,000 8,000 30,000 6,000 20,000 4,000 2,000 10,000 - - 9M FY17 9M FY18 9M FY17 9M FY18 Consolidated PBIT (Millions) Consolidated Revenue (Millions) *PBIT is Profit before tax and interest YTD is a
Slide 7: Creating value for shareholders
….Creating value for shareholders 38 5,00,000 3000 2931 4,62,840 36 4,50,000 34.4 34.3 34.1 2561 33.8 4,00,000 2500 34 3,58,261 32.3 3,50,000 31.3 33.1 32 2000 3,00,000 1789 1619 30 1559 2,50,000 1500 28 2,00,000 1122 1029 26 1,50,000 1000 24 1,00,000 75,515 500 50,000 26,515 22 - 0 20 2005-06 2010-
Slide 8: Presentation Structure
Presentation Structure • • • • •
Slide 9: Our Business Dimensions
Our Business Dimensions Industrial Resins {5%} Pigment & Preparation {5%} Others {1%} Industrial Adhesives {5%} Art/Craft Materials & Others {10%} IP 15% C&B 84% Construction/ Paint Chemicals {19%} Adhesives & Sealants {55%} C&B – Consumer & Bazaar, IP – Industrial Products, Others Standalone Result
Slide 10: Consumer & Bazaar
Consumer & Bazaar Our Brands Fevicol SH Fevicol Marine Fevicol SR998 Fevicol Probond Fevikwik Fevicol MR M-seal Dr Fixit Fevicryl Wudfin Woodgrip
Slide 11: Consumer and Bazaar Products – 84% of Company's Sales
Consumer and Bazaar Products – 84% of Company’s Sales • Consists of Adhesives & Sealants (55%),Construction & Paint Chemicals (19%) and Art/Craft Materials and others (10%) • Market leader in all segments of adhesives and sealants, construction chemicals (retail segment) and hobby colours. • Extensi
Slide 12: Industrial Products
Industrial Products Industrial Products – Business Segments • Hot melt adhesives for end-0f-line packaging, book binding and product assembly • Resins for Paints, Paper & Textiles • Adhesives for Footwear • Adhesives for Leather • Water based adhesives for paper correcting & lamination • Epoxy & Cya
Slide 13: Industrial Products - 15% of company's sales
Industrial Products - 15% of company’s sales • Consists of Industrial Adhesives (5%), Industrial Resins (5%), Pigments and Preparations (5%) • Extensive range of industrial adhesives for various applications. • Market leader in pigment dispersions for Indian textile segments • Pioneer in manufacturi
Slide 14: Business Overview – Global Presence
Business Overview – Global Presence • Exports to more than 60 countries. Major exports to Middle East, Africa, USA & Europe • Export Turnover of Rs. 4842 Mn in FY’17 • 17 Overseas subsidiaries – (5 Direct and 12 Step down)and one Joint venture. • Total Revenue from Overseas subsidiaries of 5987 Mn i
Slide 15: Business Overview: International Subsidiaries
Business Overview : International Subsidiaries North America SAARC / SEA • Sargent Arts is the leading supplier of quality art • Bangladesh: No. 1 player manufacturing adhesives, materials to the educational and retail markets sealants. Growing & profitable business, and in the throughout the United
Slide 16: Engaging & humorous advertisements
We continue to deliver promise through our engaging & humorous advertisements • Dr. Fixit’s new TV advertisement with superstar Amitabh Bachchan as brand ambassador was a multimedia national marketing campaign across TV, digital, radio, retail activations and innovative outdoor. The films featured M
Slide 17: Periodic recognition and awards
And our efforts have resulted in periodic recognition • Dun & Bradstreet Corporate Awards 2016 felicitated the best performing companies in India across 50+ sectors; Pidilite was selected as the winner in the Chemical sector • We have also won ‘The Most Promising Company of the Year’ at the CNBC TV1
Slide 18: Presentation Structure
Presentation Structure • • • • •
Slide 19: Macro indicators provide strong impetus
Macro indicators provide strong impetus.. GDP GROWTH STORY INTACT BY 2030, 40% OF INDIA WILL LIVE IN CITIES 600 Urban Population (M) 590 500 400 340 290 300 220 200 100 0 1991 2001 2008 2030 Urbanization Rate 26% 28% 30% 40% ……OPPORTUNITY IN TIER 2 & TIER 3 STATES …AND IN ASPIRERS / BOTP CONSUMER SE
Slide 20: Predicated on Construction industry regaining growth
Predicated on Construction industry regaining growth… CONSTRUCTION INDUSTRY TO GROW AT 11% …FOLLOWING PROJECTED GROWTH IN GDP AND CEMENT CONSUMPTION (HIGHLY CORRELATED) IN FY15-21… India Construction India GDP Cement Consumption CAGR 17% 9% 11% CAGR 17% 11% 11% CAGR 11% 3% 7% Source: BMI India Infra
Slide 21: GST
@ Pidilite GST A common Goods and Services Tax (GST), one of the biggest reforms in recent time on the indirect taxes front in India was implemented effective 1° July 2017
Slide 22: We were GST Ready even before GST
We were GST Ready even before GST We trained each of our distributors across the 01 Distributor country on GST to ensure a seamless transition Training Our billing software was migrated to the GST billing 02 Billing Software platform with Updation During the transition, when uncertainties in the tra
Slide 23: Presentation Structure
Presentation Structure • • • • •
Slide 24: Strategic directions – Project Runway
Strategic directions – Project Runway 1 2 3 Take existing Exploit Rural plus Identify & prioritize businesses to Full small town new opportunities Potential opportunity 4 Ensure aligned, energized organization Shareholder Value 23
Slide 25: Existing business to full potential
Existing business to full potential • Accelerate Sales Growth • Drive penetration • Increase consumption • Improvement in market share • Focus on identified International Markets • Robust Innovation • Stage-gate process • Focus on Fewer Bigger Better innovations 24
Slide 26: Exploit Rural plus small town opportunity
Exploit Rural plus small town opportunity 1Bn+ consumers Revamp route to market and Opportunity with 84% of activation process India’s population 25
Slide 27: Digital is the future… and we are future ready!
Digital is the future… and we are future ready! • •
Slide 28: Strategically identified inorganic growth opportunities
We have strategically identified inorganic growth opportunities.. Premium Wood Finish ICA PIDILITE Turnkey Water Proofing Solutions 27
Slide 29: Our newest being CIPY
..Our newest being ‘CIPY’ Polyurethanes Pvt. Ltd. • Pidilite announced the approval to acquire a 70% stake in equity shares of CIPY Polyurethanes Pvt. Ltd. (‘CIPY’) • CIPY was incorporated on 29th November, 1994 and it is engaged in the business of manufacture and sale of floor coatings using polyur
Slide 30: Ensure aligned, energized organization
Ensure aligned, energized organization Persistent innovation focused on continuous improvement Deep insight into each Holistic brand management domain, leading to that builds strong emotional continuous identification of connect with users, Major Initiatives influencers & consumers Passionate about
Slide 31: Presentation Structure
Presentation Structure • • • • •
Slide 32: Key Consideration
Key Consideration • High market share and strong position in most products and segments • Strong portfolio of trusted brands • High mix of sale from products / segments pioneered by Pidilite in India • Track record of consistent growth in Sales and Profits • Enough headroom to grow domestic business
Slide 33: Questions
© Pidilite Questions fsa TERMINATOR FEVICOL SH_ Je 6
Slide 34: Investor Contacts
Investor Contacts Investor Relations - investor.relations@pidilite.co.in Savithri Parekh, Company Secretary Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 67697000 CIN : L24100MH1969PLC014336 Fax : +91 22 28216007 33
Pidilite Industries — ICICI Securities APAC Conference 2018 - 'India Unlimited' on 6ix