Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (June 2020)
47 slides from Kansai Nerolac Paints's investor presentation, June 2020
Slide 1: All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 1
Slide 2: Corporate Presentation
Corporate Presentation 24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 3: Fact Sheet
Fact Sheet Ownership Founded Market Position Subsidiary of One of India’s largest Kansai Paint Co., 1920 Paint company: Leader Ltd., Japan in industrial paints Net Sales (₹) PBT (₹) Mar. Cap. (₹) (FY20 – standalone) (FY 20 – standalone) (31st March 2020) 4,943.2 Cr 683.6 Cr 20,880 Cr June 2020
Slide 4: Indian Paint Industry
Indian Paint Industry Size • Over Rs 55,000 Cr (USD 7 Billion approx.) Growth Rates • Double digit since 1991 Organized : Un-organized Market • 70:30 Per Capita consumption • ~3.75 kg (Global average @12-15 kg) June 2020
Slide 5: History of KNPL
History of KNPL 2020 Unveiled the new corporate 1920 2000 2006 identity of Nerolac- Colours Company Name changed to Kansai that Care Started as Gahagan Paints and Varnish Co Ltd. with factory at implements SAP ERP Nerolac Paints Ltd. with a Lower Parel across all locations new logo 2000 Tata Group d
Slide 6: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on March 31, 2020 9.07% 15.94% 74.99% KPJ Institutional Non Institutional June 2020
Slide 7: Our Heritage – Kansai Paint Co., Ltd., Japan
Our Heritage – Kansai Paint Co., Ltd., Japan Net Sales (Consolidated) ❖Gross Sales over 3.8 Billion USD 600 Billions of Yen 500 427 407 402 400 328 330 300 Presence in over 80 200 Countries via 152 Companies 100 Technical and innovation Leader in Automobile and Industrial Coatings 0 2015-16 2016-17
Slide 8: Technology tie-ups
Technology tie-ups Japan Japan Cashew Tsusho Oshima Kogyo Auto Paint – Plastic Canada Heat Resistant Paints Protech Oxyplast Powder Coating June 2020
Slide 9: Our Foot-Print
Our Foot-Print Six Plants Strategically Located near OEMs (Auto Clusters) Strong Competitive Edge 104 Depots pan India (Denoted State Wise) ❖ 27500+ Customers Network British Safety Award Depot Network ZERO liquid Discharge Large and well- established network OHSAS 18001 spread across key ISO 14001
Slide 10: Vision, Mission
Vision, Mission Our Vision Our Mission “We design solutions that Protect, We leverage superior technology to Inspire and Touch Lives everyday” contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of
Slide 11: New Corporate Identity
New Corporate Identity PURPOSE Create Environments for a healthy and beautiful future EXPRESSION Colors that care PROMISE Renew Life June 2020
Slide 12: Core Values
NEROLAC Core Values Customer Accountability Focus Entrepreneuria Innovation Mindset June 2020
Slide 13: Overview of our Performance
Overview of our Performance Sales In Rs Crores PBDIT In Rs Crores 5682 790 782 6000 5487 731 742 5047 800 5000 4404 700 580 4097 600 4000 500 3000 400 2000 300 200 1000 100 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 Return on Capital Employed(%) Return on net
Slide 14: Overview of our Performance
Overview of our Performance Earnings Per Share(₹) Dividend (%) 12 9.9 350 305 315 9.4 9.6 300 10 8.7 300 260 260 8 6.7 250 6 200 150 4 100 2 50 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 Shareholders fund in Rs Crores Market Capitalization in Rs Crores 3787 3
Slide 15: Overview of our Performance
Overview of our Performance Count of Customers Operating Cash Flow in Rs Crores 35000 700 30000+ 621 28000+ 30000 600 26000+ 23000+ 25000 500 20000+ 390 345 20000 400 377 15000 300 10000 200 110 5000 100 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 June 2020
Slide 16: Strategy
Strategy Decorative, Automotive, Performance Coating Strengthen the Core while Expanding Horizons Technology Service Innovative Products Specialized Teams Brand CORE New Segments: Wood Coatings, Adhesives, Construction Chemicals, Auto Refinish (ARF), Coil Coatings, Functional Powders, Pipe Coatings
Slide 17: Core Business
Core Business General Industrial Coatings Automotive Powder Coatings Coatings High Decorative Performance Coatings Coatings June 2020
Slide 18: Decorative
Decorative Super Premium Premium Popular Economy Impressions Impressions Impressions Impressions Beauty Little Beauty Gold Beauty Smooth UHD Ultra Fresh Eco Clean HD Master Interior Emulsion Range Super Premium Premium Popular Economy Excel Top Excel Mica Suraksha Excel Total Excel Anti Peel Suraksh
Slide 19: Decorative
Decorative Impressions Impressions Impressions Excel Alkali Redimix (Putty Ideaz Glitter Metallic Exterior Primer primer cum Primer) Designer Range Primer Synthetic Satin Enamel June 2020
Slide 20: Automotive
Automotive Customer Segments Product Line Up Cathodic Electro Deposition (CED) and Medium Solid, Thermal Acrylic Cathodic Electro 3 Coat – 1 Bake System Sprayed Aluminium Deposition (ACED) (TSA) Polyester Primers High Mar Resistant Clear Super Durable Monocoat Metallics Coats Monocoats Polyurethane
Slide 21: Performance Coating - Liquid
Performance Coating - Liquid Customer Segments Product Line Up Polyurethane (PU) Chlorinated Rubber Primer and Top Epoxy Coatings Coatings Coats Petroleum / Metal Industries Fertilizer Industries Cement Industry Petrochemical Alkyds – Primers Zinc Rich Coatings Heat Resistant and Top Coats Coating P
Slide 22: Powder Coating
Powder Coating Customer Segments Product Line Up Epoxy Polyester Powder Epoxy Powder Light Fixtures Electrical Equipments Fans Auto Ancillary Pure Polyester Heat Resistance Powder Polyurethane Super Durable Powders, Rebar Coatings, Pipe Bonded Metallic Coating Powders Powders Refigerators Washing Ma
Slide 23: Expanding Horizons (New Markets/ Geographies)
Expanding Horizons (New Markets/ Geographies) Construction Chemicals Wood Adhesives Coatings Floor Coatings Sri Lanka Coil Coatings Niche International Nepal Rebar Coatings Markets Markets Railway Coatings Bangladesh ARF June 2020
Slide 24: Wood Finish
WOOD FINISH An extensive range of high quality products for all kinds of wooden surface, veneers and MDF June 2020
Slide 25: Wood Finish - Nerolac Icro
WOOD FINISH- NEROLAC ICRO A luxury range of ultra – premium wood finish range imported from Italy June 2020
Slide 26: Construction Chemicals- Nerolac Perma
Construction Chemicals- Nerolac Perma An extensive range of waterproofing and general repair products which are easy to use with a vision to increase life expectancy of the treated surface area in both retail as well as project business. June 2020
Slide 27: Adhesives- Nerofix
Adhesives- Nerofix An evolving range of woodworking adhesives developed after months of research and field trials to deliver superior results at optimum cost with a focus on “safe to use” for carpenters. June 2020
Slide 28: Auto Re-Finish
Auto Re-Finish An extensive range of high quality products to cater all segments in Auto Refinish. Committed to deliver optimum solution to body shops with productivity and profitability. After Market Repainting and Touch-up Passenger Vehicles Commercial Vehicles Two Wheelers Three Wheelers Bus Body
Slide 29: Niche Industrial Markets
Niche Industrial Markets Railways Rebar Floor Coil Future Industrial Growth Drivers June 2020
Slide 30: International Subsidiaries
International Subsidiaries Sri Lanka Nepal Bangladesh • Operations Started in • Operations Started in 2017 • Acquired in 2018-19 2012 • Diverse range of • Fastest growing • Tie-up with one of the largest conglomerates products in company Decorative and • 3rd biggest player in in Lanka Maharaja - SLo
Slide 31: Organizational Capabilities
Organizational Capabilities Manufacturing Prowess People R&D Prowess IT & Digital June 2020
Slide 32: Manufacturing Prowess
Manufacturing Prowess State-of-the-art technologies and Annual Capacity in World Class Manufacturing modern digital solutions help to Year KL/MT Systems achieve end to end automation. Existing 2017-18 4,13,772 Digital Platform 2018-19 4,52,676 • MES (Manufacturing Execution System) • WMS (Warehouse
Slide 33: R & D Prowess
R & D Prowess R&D Spends Number of R&D personnel New Products Launched Total Patents in FY 19-20 Rs 30 Cr 178 33 8 New R&D Centre Technical Collaborations • Commissioning of State-of-the-art Research and • Key Technology partner: Kansai Paints Co. Development facility at Vashi, Navi Mumbai. ,Ltd. Ja
Slide 34: R & D Prowess
R & D Prowess LEADERSHIP CONCEPTS IN EMERGING AREAS OF R&D LEADERSHIP IN INDUSTRIAL DECORATIVE FOCUS The Company is a leader in Industrial The Company was built on its The Company is now focussing its Coatings and has pioneered many pioneering work in the Indian market efforts on business opportunit
Slide 35: IT
IT ERP Supply Chain CRM Dealer Portal Ariba Vendor Portal EHS HR Analytics Engine IoT, Predictive analytics, ML(SAP Leonardo), RPA Cloud (Office 365 Platform), Top Level Security Infrastructure, Collaboration Tools (Teams) Completely IT Enabled Business running on SAP HANA (Early Adopters of New Tec
Slide 36: Embed Digital
EMBED DIGITAL CREATE DIGITAL ASSETS VISION INCORPORATE DATA & INFO WITHIN & OUTSIDE AUTOMATION & CONTROL VISION AUTOMATE FOR AVAILABILITY & RELIABILITY INTELLIGENCE LAYER VISION OUTSIDE IN PERSPECTIVE, PREDICTIVE, VISUAL SMART ENTERPRISE VISION DEPLOY SMART NEXT GENERATION TOOLS EXPERIENCE LAYER VIS
Slide 37: People
People Employee experience Organization Connect • #Purpose and Expression on Mission, • #Departmental Contact Programme Vision and Core Values • #Coffee with HR • # Learning Conferences • #Virtual On boarding • #Best Practices Interview • #Idea Management Programme • #Talent Development • #Gems • #K
Slide 38: Long Term Sustainable Value
Long Term Sustainable Value Environment Governance Society June 2020
Slide 39: Environment
Environment Product Stewardship Bio-Composting Machines • Environmentally friendly innovations helped in the Conversion of Canteen Food Waste reduction of to good quality • Consumption of Water and Energy Manure • Air Emissions • Waste Environmental Stewardship Zero Liquid Discharge through • All Pl
Slide 40: Society
Society RURAL/COMMUNITY PROMOTING DEVELOPMENT EDUCATION PREVENTIVE HEALTHCARE ENSURING ENVIRONMENTAL AND SANITATION ENGAGEMENT WITH LOCAL COMMUNITIES STABILITY AND ORGANIZATIONS TO CONTRIBUTE TOWARDS SOCIAL BENEFITS LIVELIHOOD AND SKILL RESTORATION OF BUILDINGS ENHANCEMENT AND SITES OF HISTORICAL PR
Slide 41: Governance
Governance Governance Compliance Risk Internal Audit with Online Compliance System enabled Focus on tracking through Eneterprise Risk • Control Efficiency Legatrix Software Management Index (CEI) • Robust Control Index (RCI) June 2020
Slide 42: Key Awards
Key Awards CORPORATE CUSTOMER BRAND MARKETING INSTITUTE OF COMPANY SECRETARIES- BEST VENDOR AWARD FOR COST- TRUSTED BRAND GOLD AWARD- READERS DIGEST (2017) BEST MEDIA INNOVATION- EMVIES CORPORATE GOVERNANCE (2007) TOYOTA (2016) PRODUCT OF THE YEAR AWARD- GOLDEN PEACOCK- CORPORATE WORLD’S LARGEST IND
Slide 43: Key Awards
Key Awards CSR PRODUCT ENVIRONMENT IT 8TH ACEF ASIAN LEADERS INNOVATIVE PRODUCT/ ENVIRONMENT EXCELLENCE ACE AWARDS- SAP FORUM AND AWARDS SERVICE AWARD- GOLDEN GOLD AWARD- LOTE, (2012, 2014, 2016) (2019-20) PEACOCK (2010, 2011) GREENTECH EVIRONMENT EXCELLENCE (2007-08) SILVER TROPHY FOR MOST PROACTIV
Slide 44: Key Awards
Key Awards MANUFACTURING HUMAN RESOURCE LEADERSHIP OTHERS KNPL WAS CERTIFIED AS ASIAN MANUFACTURING ONE OF THE GREAT AMONG THE TOP 50 CEOS- CSR REPORT GOLD EXCELLENCE AWARD- FROST AND PLACE TO WORK BY ENTREPRENEUR MAGAZINE TROPHY- ABCI SULLIVAN (2010) GPTW IN YEAR (2014) AWARD (2007) (2018-19) CERTI
Slide 45: Selective List of Customers
Selective List of Customers General Industrial High Performance Automotive Coatings OEMs Powder Coatings Coatings Coatings ❑ MARUTI SUZUKI ❑ GODREJ ❑ RELIANCE INDUSTRIES ❑ GODREJ ❑ TOYOTA KIRLOSKAR ❑ WHIRPOOL ❑ ADANI ❑ HITACHI ❑ HONDA CARS ❑ KIRBY BUSINESS SYSTEMS ❑ AMBUJA CEMENT ❑ WHIRPOOL ❑ RENAUL
Slide 46: Consolidated Snapshot
Consolidated Snapshot CAGR (Last 20 year) Sales Rs. mn. 11 PBDIT Rs. mn. 16 PBT Rs. mn. 17 June 2020
Slide 47: End of Presentation
End of Presentation June 2020
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