Kamdhenu Limited · NSE:KAMDHENU
Kamdhenu — Investor Presentation (November 2022)
39 slides from Kamdhenu's investor presentation, Nov 11, 2022
Slide 1: Investor Presentation - November 2022 (filing letter)
|KAMDHENU < yg GROUP Ref: KL/SEC/2022-23/84 Date: 11° November, 2022 TO, . To, The Manager- Listing The Manager- Listing National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai-400 051 Dalal Street, Mumbai- 400 001 NS
Slide 2: Kamdhenu Limited Investor Presentation November 2022
KAMDHENU LIMITED Investor Presentation November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu 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,
Slide 4: Group Overview
Group Overview Brand Turnover of Rs. 16,000 crores +; CAGR Growth of 16% over the last decade Kamdhenu Paints India's Leading Company dealing KAMDHENU is Largest TMT with Manufacturing, Distribution, Marketing & COLOUR DREAMZ amongst top selling brand in India, in the Retail decorative paint brands
Slide 5: Sustainable Growth through Creation of Brand 'KAMDHENU'
Sustainable Growth through Creation of Brand ‘KAMDHENU’ Having started as a single unit in Bhiwadi, Rajasthan in 1995, In 2008, Kamdhenu set up its own unit for manufacturing of Pioneer In Kamdhenu has evolved into a steel conglomerate, pioneering the Diversification decorative Paints under its flag
Slide 6: Our Journey
Our Journey 2022 2021 2019-2020 2018 2016-2017 2011-2015 2006-2010 o 2022 - Scheme of 2001-2005 o 2021 - Signed Arrangements was Preity G Zinta as approved on 3rd 1994-2000 Brand June 2022 and has o 2019 - Own Ambassador for become effective o Board Manufacturing decorative paints from 18th July ,20
Slide 7: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu Structural Steel TMT Bars are thermo-mechanically-treated through leading world Produced under franchisee agreement multitude of special tempcore based technology for high yield strength contours such as angles, channels, beam
Slide 8: Awards & Acknowledgements
Awards & Acknowledgements We truly believe that Customer delight and satisfaction are the true award we vouch for and our efforts to meet the customers’ expectation have brought many accolades to us World's Greatest Asia's Most Promising Brands 2015 Indian Power Brand World's Greatest Brand 2015-16
Slide 9: Participation of Noted Celebrities
Participation of Noted Celebrities Brand Promotions, Event Participation Have Helped Strengthen Dealer Connect & Expand Visibility Preity G Zinta Emraan Hashmi Madhuri Dixit Kanika Kapoor Tapsee Pannu Kangana Ranaut Malaika Arora Sonam Kapoor Dia Mirza Sonu Nigam Karishma Tanna Govinda Kareena Kapoo
Slide 10: 'TARGET KA BADSHAH' – Mega Paints Event for Dealer & Distributor Awards
‘TARGET KA BADSHAH’ – Mega Paints Event for Dealer & Distributor Awards Award functions and cultural events on annual basis Notable celebrity affiliations through brand promotions, event participations help strengthen emotional connect with dealers where relationships were formative 9
Slide 11: Brand Promotions
Brand Promotions Promotional Digital Outdoor Brand Educational Print Media Materials Campaign Campaign Activities National Newspaper ▪ Distribution of catalogues ▪ Dealers & Distributor ▪ Brochures Meets ▪ Visiting cards ▪ Customer Meets Kamodual Luxury – ▪ Shop branding ▪ Seminars, conferences ‘Lux
Slide 12: Experienced Board of Directors
Experienced Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Whole Time Director Non - Executive Director Whole Time Director Managing Director Mr. Ramesh Chand Surana Mr. Ramesh Chandra Jain Mr. Madhusudan Agrawal Mrs. Pravin Trip
Slide 13: Steel Business
Steel Business
Slide 14: India's Largest Branded TMT Bars Player
India’s Largest Branded TMT Bars Player KAMDHENU Nxt and KAMDHENU PAS 10000 are Premium Product Brands Converted steel commodity into branded product becoming India’s Largest TMT Steel Bars brand (Thermo Mechanically State-of-the-art TMT Technology Treated) with in-house capacity of 120,000 MT p.a.*
Slide 15: Pan-India Decentralized Manufacturing & Marketing Network
Pan-India Decentralized Manufacturing & Marketing Network 81 8,000+ 250+ Franchisees Dealers Distributors Decentralized Outsourced Manufacturing Model 01 Communication 02 Low Minimums • Working with a local manufacturer makes the • Even the smaller quantity of the orders are communication process ea
Slide 16: Asset Light Business Model
Asset Light Business Model… Kamdhenu Group BRAND LEADERSHIP in STEEL RETAIL Innovator – We do Research and introduce new products based on Customer Requirement in the Market Hierarchy of Marketing Network Every franchisee is allowed to sell its product in a particular region which is its designated
Slide 17: Creates Long-term Sustainability
…Creates Long-term Sustainability Benefits to Kamdhenu Win–Win for Franchises Expertise & Quality Ready Centralized Experience Assurance Marketplace Publicity Enhanced revenue Easy availability of Saving Provide franchise Assurance of Ready Platform in Assistance to and increase in Increase in Marke
Slide 18: Huge Capacities at zero capex
Huge Capacities at zero capex Regional Split Production Capacity Company Owned - Manufacturing, R&D and T&D of Franchisees Installed Capacities (MT) Steel Division at Bhiwadi, Rajasthan 22% Steel Rebars 30% Production Capacity 120,000 MT per annum (Realigned 45.5 L to support the future innovation,
Slide 19: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours End-user Industries Advantages • High Strength and High Ductility • One such product which • Production of a multitude of • Industrial structures, flyov
Slide 20: Steel Business - Result Highlights – Q2 & H1 FY23
Steel Business - Result Highlights – Q2 & H1 FY23 Rs. In Crs Revenues from Operations EBITDA PBT Rs. 191.3 Crores Rs. 12.2 Crores Rs. 10.9 Crores Q2 FY23 +25% YoY +14% YoY +7% YoY Revenues from Operations EBITDA PBT Rs. 382.5 Crores Rs. 27.6 Crores Rs. 24.4 Crores H1 FY23 +44% YoY +10% YoY +4% YoY O
Slide 21: Core Steel TMT Business
Core Steel TMT Business Revenue Break Up Return On Equity Return on Capital Employed Debt to Equity Ratio Q2 FY23 H1 FY23 25.4% 31.1% 0.15X Revenue from Own Facility Rs. 155.8 Crores Rs. 308.4 Crores +24% +44% Royalty Income through Franchisee Sales Increased Focus on Own Manufacturing Lower Working
Slide 22: Strong Growth Outlook in Steel Business
Strong Growth Outlook in Steel Business Increased Capacity TMT Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 50 Lakh Metric Tonne Rs.22,000 crs Rs.150 crs by FY24* by FY24* by FY24* 22,000 150 50 38 38 16,072 16,072 92 92 11 8 3,759 16 1,808 8 2007 2012 2022 2024E* 2007 20
Slide 23: Funds to be raised to the tune of ~Rs. 70 Cr
Funds to be raised to the tune of ~Rs. 70 Cr Objectives The Board of Directors of the Company in their meeting held on 11th November, 2022 and subject to the approval of shareholders in their general meeting, has considered and approved to create, offer, issue and allot Convertible Warrants Acquirin
Slide 24: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crores) Q2 FY23 Q2 FY22 Y-o-Y H1 FY23 H1 FY22 Y-o-Y Revenue from Operations 191.3 152.7 25% 382.5 265.4 44% Cost of materials consumed 137.6 114.7 268.0 189.3 Purchases of stock-in-trade 9.4 4.5 20.7 7.8 Changes in inventories 1.0 -1.3 3.2 0.0 Total Raw Mater
Slide 25: Balance Sheet
Balance Sheet Particulars Sep-22 Mar-22* Particulars Sep-22 Mar-22* Equity Non Current assets Equity Share Capital 26.9 26.9 Property, Plant and Equipments 44.5 88.7 Other Equity 116.8 208.4 Capital Work in Process 0.0 1.0 Total Equity 144 235.4 Right of Use Assets 2.6 4.6 Non Current Liabilities In
Slide 26: Paints Business
DHENU PAINTS Paints Business “ \MDHEK PAINTS if Designer Galle Sa0 =.2 23 ¢ 2 2. % f r go § eS
Slide 27: Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment
Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment 2008 - set up its own unit for • Exterior & Interior manufacturing of decorative Amongst the Top Paints Emulsions • Aluminium Paints Paints under its flagship Company in India • Water based primers • Textured & Designer Paints brand
Slide 28: Extensive Product Portfolio
Extensive Product Portfolio Diversified and Eco-friendly Product Portfolio Emulsions Primers Type Premium Regular Dual Range of Products Type Premium Regular Exterior Water Based Weather Weather Kamo Kamo Dual Kamo Sealer Supreme Classic Shield Primer Solvent Based Kamo Dual Kamo Hi Velvety Sheen &
Slide 29: Extensive Product Portfolio
Extensive Product Portfolio Stainers, Specialty and Other Coatings New Products Construction Chemicals Designer & Kamoproof ALW Kamo Super Water proofing Textured Mettalica Kamocrete CRP Concrete Repair Compound for Paints cement mortar Product and concrete Kamo Superstar Kamorich Wall Putty Kamwood
Slide 30: Niche Products with High Potential
Niche Products with High Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer 1 2 3 4 ▪ Kamwood Premium Wood ▪ Our specialized water proofing ▪ Kamo Floor Coat (KFC) is a ▪ It's a unique primer which can finishes works to protect and solutions are an aid to the specialized p
Slide 31: Signed Bollywood Celebrity & Entrepreneur Preity G Zinta as Brand Ambassador
Signed Bollywood Celebrity & Entrepreneur Preity G Zinta as Brand Ambassador Signed ace Bollywood celebrity and Preity G Zinta’s inclusion as the Brand This collaboration will help enhance the Ambassador is set to blend perfectly with entrepreneur, Preity G Zinta as Brand brand’s pan-India reach and
Slide 32: Focused on Premiumization of Portfolio
Focused on Premiumization of Portfolio Revenue Breakup Average Selling price per KG/Ltr FY10 FY15 FY22 +105% 10% 21% 22% 76 11% 58 53% 58% 37 26% 20% 79% FY10 FY15 FY22 Water Based Products Powder Based Products Solvent Based Products With renewed focus on premium products, After having achieved rap
Slide 33: Well-Entrenched and Highly Incentivised Dealer Network
Well-Entrenched and Highly Incentivised Dealer Network Dealers Revenue Split (FY22) Dealer Split (FY22) +26% 7% ➢ Kamdhenu’s sales are more 13% 11% concentrated in North & East 4,071 17% India owing to a denser older 3,230 8% dealer base in the region 35% 12% ➢ The current dealer proportion in 241 c
Slide 34: Prominence in India's Emerging Cities
Prominence in India’s Emerging Cities Prominence in Tier I, II & III Cities through 33 Sales Depots Focused strategy to set base in the smaller Indian towns identifying an underserved gap in the paint industry ~70% of India’s urban population resides in Tier II & III cities, where majority of Kamdhe
Slide 35: State-of-the-art Manufacturing Facilities & Infrastructure
State-of-the-art Manufacturing Facilities & Infrastructure Manufacturing Facilities – Quick Facts Robust Tinting Infrastructure 1,600+ tinting machines installed at dealer outlets to make wide range of shades by mixing Colorant from Computerized tinting Re-aligned capacity at Own Manufacturing plant
Slide 36: Paints Business - Result Highlights – Q2 & H1 FY23
Paints Business - Result Highlights – Q2 & H1 FY23 Rs. In Crs Revenues from Operations EBITDA PBT Q2 FY23 Rs. 64.4 Crores Rs. -0.7 Crores Rs. -1.9 Crores +2% Revenues from Operations EBITDA PBT H1 FY23 Rs. 119.1 Crores Rs. -0.5 Crores Rs. -5.7 Crores* +24% 35
Slide 37: Growth Strategies & Next 5-yr Vision
Growth Strategies & Next 5-yr Vision Urbanisation & Rising Disposable Incomes Rapid Revenue Growth Potential with Margin Expansion Revenue (Rs cr) EBITDA Margin* (%) Premiumization of Portfolio +68% Increasing Density of Dealer Network +43% 1,000 11% 8% 450 Aggressive Investments into 241 1% Buildin
Slide 38: Scheme of Arrangement
Scheme of Arrangement Benefits of Demerger ➢ Better management focus & operational flexibility and facilitate KAY2 STEEL LTD businesses to independently pursue their growth plans through organic / inorganic means TIPTOP PROMOTERS ➢ Enable both companies to raise necessary funds, invite strategic PRI
Slide 39: THANK YOU
THANK YOU For further Information, please contact : CIN: U74140MH2010PTC204285 CIN: L27101HR1994PLC092205 Mr. Deven Dhruva / Ms. Hinal Kothari Mr. Harish Kumar Agarwal +91 98333 73300 / +91 9930133428 Group CFO & Head-Legal deven.dhruva@sgapl.net / Hinal.Kothari@sgapl.net hkagarwal@kamdhenulimited.c