Slide 1: Cover letter to stock exchanges
March 8, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relationship Department Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Bandra (E) Mumbai- 400001 Mumbai — 400 051. Subject: Investor Presentation — March, 2021 Dear Sir/Ma
Slide 2: Investor Presentation March 2021
INVESTOR PRESENTATION March 2021
Slide 3: Company Overview
Company Overview Brand Turnover India's Leading Company 75+ Franchise Units to dealing with Manufacturing, Distribution, Marketing & Rs. 10,800+ Crores in FY20 manufacture Steel Rebars, Structural Steel Products & Colour Branding Coated Profile Sheets Volume Sales growth of 6% with 24.9 Lakh TMT sol
Slide 4: Sustainable Growth through Creation of Brand 'KAMDHENU'
Sustainable Growth through Creation of Brand ‘KAMDHENU’ Brand Turnover Brand Expenses Brand Creation over years 12,027 10,851* +17% 103 104 8,072 69 70 63 5,924 5,968 6,052 48 5,590 39 4,735 33 27 3,759 21 17 2,897 2,274 Rs Cr FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY10 FY11 FY12 FY1
Slide 5: Our Journey
Our Journey ▪ 1995- Production of ▪ 2006- IPO – Listed at ▪ 2016- Name Changed from Kamdhenu Steel Bars NSE/BSE Ispat Ltd. to Kamdhenu Ltd. – positioned as branding and marketing ▪ 2000- Certified for ▪ 2008- Forayed into company international quality Decorative Paints standards ISO 9001 & Business
Slide 6: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu – Nxt TMT Kamdhenu – PAS 10000 Next Generation Interlock Steel and has Unique Rib design which gives locking of 360 TMT Bars are thermo-mechanically- got the angular double rib design degree. Its alloy gives it better rust-pro
Slide 7: Awards & Acknowledgements
Awards & Acknowledgements World's Greatest Brands World's Greatest Brands Asia's Most Promising Indian Power Brand 2017-18 amongst Asia 2015 amongst Asia & Brand 2015-16 by World 2016 Award & GCC for Steel as well GCC Consulting & Research as Paints Division Corporation 6
Slide 8: Strong Thrust on Advertising & Promotion Spends
Strong Thrust on Advertising & Promotion Spends Notable Celebrity Affiliations ‘TARGET KA BADSHAH’ – Mega Paints Event for Dealer & Distributor Awards ▪ Award functions and cultural events on annual basis Shilpa Shetty Emraan Hashmi Madhuri Dixit Kanika Kapoor Preity Zinta ▪ Notable celebrity affili
Slide 9: Brand Promotions – Print, Outdoor Media
Brand Promotions – Print, Outdoor Media Medium Partner Newspapers National Newspapers Print Media Regional Newspapers Rajasthan Patrika (Jansatta) (Punjab Kesari) Outdoor Campaigns Kamodual Luxury – ‘Luxury Ka Double Dose’ ➢ Social media campaigns to educate consumers about benefit of its products ➢
Slide 10: Experienced Board of Directors
Experienced Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Managing Director Whole Time Director Whole Time Director Whole Time Director Mr. Mahendra Kumar Doogar Mr. Ramesh Chand Surana Mr. Ramesh Chandra Jain Mrs. Nishal Jain M
Slide 11: Steel Business
Steel Business
Slide 12: India's Largest Branded TMT Bars Player
India’s Largest Branded TMT Bars Player Converted steel commodity into branded product becoming India’s BRAND Largest TMT Steel Bars brand (Thermo Mechanically Treated) with in- house capacity of 156,000 MT p.a. State-of-the-art Tempcore Technology from CRM, Belgium KAMDHENU PAS 10000 44 Franchisee
Slide 13: Pan-India Decentralized Manufacturing
Pan-India Decentralized Manufacturing Decentralized Outsourced Manufacturing Model ▪ Communication : Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer ▪ Low
Slide 14: Asset Light Business Model…
Asset Light Business Model… BRAND LEADERSHIP in STEEL RETAIL Kamdhenu Group Innovator – We do Research and Hierarchy of Marketing Network introduce new products based on Customer Requirement in the Market Every franchisee is allowed to sell its product in a particular region which is its designated
Slide 15: …Creates Long-term Sustainability
…Creates Long-term Sustainability Benefits to Kamdhenu Win–Win for Franchises Expertise & Experience Quality Assurance Easy availability of product in all Enhanced revenue and increase in Provide franchise units with Assurance of quality from parts of the country Profitability due to Royalty earned
Slide 16: Huge Capacities at ZERO Capex
Huge Capacities at ZERO Capex Manufacturing Capacities - Franchisees Company Owned - Manufacturing, R&D and T&D Steel Division : Bhiwadi Production Capacity : ▪ Increased the production Capacity from 72,000 MT to 156,000 MT per ▪ Steel Rebars – 38 Lacs MT per annum annum to support innovation and pr
Slide 17: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours ▪ One such product which continues to ▪ Angles pioneer new innovations ▪ Channels ▪ Beams ▪ It is counted as one of the most ▪ Flats recycled material o
Slide 18: Core Steel TMT Business
Core Steel TMT Business Revenue Break Up Royalty Income through Own Manufacturing Return on Capital Employed (ROCE)^ Debt to Equity Ratio Franchisee Sales +29% CoVID-19 impact CoVID-19 impact + 290 bps 0.6 97.7 88.3 +15% 25.1% 24.4% 76.2 75.9* 22.9% 22.2% 0.4 20.0% 0.3 0.3 24.3 22.2 20.5* 23.5 0.2 3
Slide 19: 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) 33 10,851 94 CAGR +12% CAGR +15% CAGR +21% 11 3,759 8 1,808 16 8 2007 2012 2020 2007 2012 2020 2007 2012 2020 50 Lakh Rs.22,000 cr Rs. 150 crs Metric Tonne by FY23
Slide 20: Paints Business
Paints Business
Slide 21: Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment
Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment Inception Revenue Growth of ~6x Kamdhenu Paints – COLOUR DREAMZ SKUs +494% 2008 set up its own unit for 226 manufacturing of decorative Paints 40+ SKUs across 10+ product under its flagship brand categories 38 Rs cr Market Position
Slide 22: Extensive Product Portfolio
Extensive Product Portfolio Emulsions Primers Type Premium Regular Type Premium Regular Water Based Exterior Kamo Dual Primer Kamo Sealer Weather Weather Kamo Supreme Classic Shield Solvent Based Wood Primer Red Oxide Universal Primer (ST) Kamo Hi Shine Velvety Sheen & Shine Interior Distempers Dist
Slide 23: Extensive Product Portfolio
Extensive Product Portfolio Stainers, Specialty and Other Coatings Construction Chemicals Kamoproof ALW Designer & Kamocrete CRP WATER PROOFING Kamo Super Concrete Repair COMPOUND FOR Textured Paints Mettalica Product CEMENT MORTAR AND CONCRETE Wall Putty NC Lacquer Melamine Kamoplast Wall Putty Kam
Slide 24: Niche Products with High Potential
Niche Products with High Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer ➢ Kamwood Premium Wood finishes ➢ Our specialized water proofing ➢ Kamo Floor Coat (KFC) is a ➢ It's a unique primer which can be works to protect and decorate solutions are an aid to the specializ
Slide 25: Focused on Premiumization of Portfolio
Focused on Premiumization of Portfolio Revenue Breakup FY10 FY15 FY20 10% ➢ Entry strategy in initial years focused on affordable variants like 21% 22% 10% powder-based paints, putty, distempers etc. to first gain the 53% confidence and loyalty of the dealer & painter network 58% 26% 20% 80% ➢ After
Slide 26: Well-Entrenched and Highly Incentivised Dealer Network
Well-Entrenched and Highly Incentivised Dealer Network Dealers Revenue Split (FY20) Dealer Split (FY20) 6% ➢ Kamdhenu’s sales are more 10% 8% +28% 17% concentrated in North & East India owing to a denser older 4,129 12% dealer base in the region 3,230 30% 28% 226 cr 17% 4,129 ➢ The current dealer pr
Slide 27: 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 ~70% of India’s urban population underserved gap in the paint industry resides in Tier II & III cities, where majority of Kamdhe
Slide 28: State-of-the-art Manufacturing Facilities & Infrastructure
State-of-the-art Manufacturing Facilities & Infrastructure Manufacturing Facilities – Quick Facts Robust Tinting Infrastructure Production Capacity Revenue Potential ➢ 1,600+ tinting machines installed at dealer outlets to make wide range of shades Facilities (in KL) (Rs cr) by mixing Colorant from
Slide 29: Growth Strategies & Next 5-yr Vision
Growth Strategies & Next 5-yr Vision Rapid Revenue Growth Potential with Margin Expansion Premiumization of Portfolio Revenue (Rs cr) EBITDA Margin (%) Urbanisation & Rising Increasing Density of Dealer 11% Disposable Incomes Network +28% 1,000 8% 450 226 Housing for All by 2022 Aggressive Investmen
Slide 30: Scheme of Arrangement
Scheme of Arrangement Rationale for Proposed 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 st
Slide 31: Overall Financials
| Kamdhenv, frenu > x E s wa |, Kam Overall Financials
Slide 32: Q3 & 9M FY21 - Statement of Profit & Loss
Q3 & 9M FY21 - Statement of Profit & Loss^ Particulars (Rs. Crs.) Q3 FY21 Q3 FY20 YoY Q2 FY21 QoQ 9M FY21* 9M FY20 Net Revenue from Operations 192.8 255.4 -25% 146.4* 32% 427.3 716.4 Cost of Material Consumed 104.0 86.4 78.8 216.3 244.7 Purchase of Stock-in-Trade 15.8 110.1 14.0 39.3 310.8 Change in
Slide 33: Balance Sheet as on 30th September, 2020
Balance Sheet as on 30th September, 2020^ Particulars (Rs. Crs.) Sep 2020 Mar 2020 Particulars (Rs. Crs.) Sep 2020 Mar 2020 Equity Share Capital 26.9 26.5 Non Current assets Property, Plant and Equipment's 76.7 79.4 Other Equity 156.7 154.2 Capital Work in Process 1.5 1.1 Total Equity 183.7 180.7 Ri
Slide 34: Consistent Financial Performance
Consistent Financial Performance^ Revenue Breakup - FY13 EBIT PBT PAT 33% +109% +274% +364% 36.6 548 cr 24.7 22.3 67% 17.6 6.6 4.8 Steel Paints FY13 FY20 FY13 FY20* FY13 FY20* *Excluding Exceptional Items & Tax calculated at normal tax rate after adjusting for deferred taxes Revenue Breakup – FY20 R
Slide 35: Historical Profit & Loss Trend
Historical Profit & Loss Trend^ Particulars (Rs. Crs) FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 Revenue 962.0 1,232.4 1,179.8 824.9 841.2 968.0 921.7 547.5 Total Raw Material Cost 710.5 972.9 968.8 634.8 667.8 821.9 793.8 427.8 Employee Expenses 50.2 47.2 40.5 34.0 30.9 24.1 21.9 21.2 Other Expenses 1
Slide 36: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu Limited For further Information, please contact : (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to