Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Investor Presentation (December 2011)
24 slides from Globus Spirits's investor presentation, December 2011
Slide 1: Globus Spirits Limited Investor Presentation
Globus Spirits Limited Investor Presentation December 2011 Globus Spints
Slide 2: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after t
Slide 3: Agenda
AGENDA Industry Overview Company Overview 360o Business Strategy Financials
Slide 4: Which segment we operate
Which segment we operate Indian Alcohol Industry Potable Industrial Country Fuel IMFL Beer Esters Acetic Acid Liquor Mixing Globus Spirits’ Operating Areas
Slide 5: How is this industry divided
How is this industry divided IMFL Break-up (in million cases) Volume Segment % of IMFL (mn cases) Whisky 116 59 Brandy 34 17 Rum 35 18 Gin 4 2 Vodka 5 3 Others 3 1
Slide 6: How is India's Alcobev market poised
How is India’s Alcobev market poised Research suggests that ~ 50% of liquor consumption in India is unrecorded Country Liquor, the largest segment, is perhaps the most affected This share of unrecorded consumption is expected to decrease as the state as well as the central governments have cra
Slide 7: Drivers of Indian Spirits Industry Growth
Drivers of Indian Spirits Industry Growth Per Capita consumption 15+ age Population growth – increased at CAGR of Country Per Capita (liters) over 2% (2004-09) Austria 12.5 Canada 8.2 Average age of initiation into drinking coming down Denmark 10.9 France 2 Favorable change in societal percept
Slide 8: India is one of the fastest growing markets
India is one of the fastest growing markets Top 5 Countries Growth In 2009, India ranks fourth in the global spirits market with a 6.1% market share 50 United States : CAGR - 2.7% (2004-2009) 45 Spirits market in India was worth US$ Global Spirits Market (Value in US$ billion) 40 16.9 billion in
Slide 9: Who we are
Who we are GSL Capacity Utilization & Sale Trend Amongst the leading players in Northern India 120% 6,000 Promoted by Business Family having over 60 103% 100% Gross Sales Rs. Million 100% 5,000 100% years of industry experience 80% 76% 4,000 80% 360o product offerings – only Company to offer 6
Slide 10: Key Milestones
What we achieved… Merged 100% subsidiary, Associated Distellers Limited (ADL) with Globus Spirits Limited (GSL) – 2011-12 increasing total capacities to 84.4 million bulk litres p.a. Expanded capacities at both plants at Samalkha & Behror from 28.8 million bulk litre to 70.0 million 2010-11 bulk
Slide 11: Board of Directors
Board of Directors Mr. Gautam Premnath Khandelwal Mr. Khandelwal has over 23 years of experience in senior managerial positions and he is on the Non-Executive Chairman Board of many companies such as Nagpur Power & Industries Ltd., Motwane Mfg. Co. Pvt. Ltd., Krohm Solutions Pvt. Ltd., Punjab Nation
Slide 12: Key Managerial Personnel
Key Managerial Personnel Name Designation Qualification Exp Prev Assignments COO – Sales and PG – Advance Marketing, John Distilleries, ABD Sudhir Chopra 25 Marketing (IMFL) PGDBA, Univ. of Bath, UK India, USL BSc Business and Management, Shekhar Swarup VP –IMFL 3 Smart Analyst India Univ. of Bradfo
Slide 13: What we offer
What we offer IMFL Franchisee STRATEGIC SEAMLESS Extra Country PRESENCE Neutral Liquor INTEGRATED Alcohol ACROSS PRODUCTION Raw PRODUCTS PROCESS Materials* Rectified Branded Spirits IMFL o 360 PRODUCT OFFERINGS * - Raw Material – Molasses, Broken Rice/Bajra
Slide 14: What is our focus area
What is our focus area In Focus Focus to grow in all 4 business lines of the spirits industry, offering our investors to have a true stake in the progress of the industry as a whole GSL’s believes Potable Liquor has a huge potential and the Company is well poised to gain advantage given its focus
Slide 15: Where we stand – Bulk Alcohol & IMFL-Franchisee
Where we stand – Bulk Alcohol & IMFL-Franchisee Dominance in Bulk Alcohol & IMFL-Franchise Bulk Alcohol & IMFL Franchisee Sale Trend through Quality & Cost 2,000 1,964 1,752 Contributes around 40% to GSL top line 1,800 1,600 1,502 Serves as basis for GSL’s other segments like CL 1,400 1,300 &
Slide 16: Our Focus in Bulk Alcohol & IMFL-Franchise
Our Focus in Bulk Alcohol & IMFL- Franchise Strengthen existing relationship with customers Capitalize on increasing demand for Indian Bulk Alcohol in African & Middle-East markets through exports Develop this segment as Cash Cow for supporting Branded IMFL growth GSL supplemented its growth
Slide 17: Where we stand – Country Liquor
Where we stand – Country Liquor Currently market leader in Country Liquor Country Liquor Brands Rana Samalkha Ki Saunfi Contributes ~ 45% to GSL Revenues Rajasthan no.-1 Kinnu Market Leader in North India Ghoomar Commander Rajasthan with 25% market share selling Samalkha no.-1 Nimbu around 4
Slide 18: Our Focus – Consolidating Position in Country Liquor segment
Our Focus – Consolidating Position in Country Liquor segment CL Industry in North India has recorded double digit growth in CL unlike the rest of the country where the overall growth has been fairly stagnant GSL has grown at higher rate than the industry average in all the existing markets in No
Slide 19: Where we stand – Branded IMFL
Where we stand – Branded IMFL Recent foray into this segment in 2007-08 3 core brands and over 10 filler brands with their variants launched Current presence in 9 states i.e. Andhra Pradesh, Chandigarh, Delhi, Haryana, Himachal Pradesh, Branded IMFL Sale Trend Kerala, Punjab, Rajasthan & Uttar
Slide 20: Our Focus – Branded IMFL
Our Focus – Branded IMFL Aggressive expansion plans in the highly profitable branded IMFL segment Increase advertising & marketing spend to build a healthy portfolio of brands with a pan India appeal Increase distribution in existing markets Utilize strong existing CL segment distribution ne
Slide 21: Recent Brand Campaign
Recent Brand Campaign
Slide 22: Improving operational efficiencies for competitive advantage
Improving operational efficiencies for competitive advantage Implementing ERP to achieve business transparency and better cost control Initiated efforts for fuel and energy conservation Using Biogas and Biomass as fuel for power generation Earning Carbon Credits which can be traded in Intern
Slide 23: How we have performed – Consolidated
How we Financial have performed – Consolidated Review Revenues (Net of Excise) EBIDTA 3,866 645 2,671 2,482 388 366 1,998 1,597 262 All figures in Rs. Million 219 1,125 152 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 H1 H1 Profit Before Tax Profit After Tax 554 399 459 28
Slide 24: Thank You
Thank You For more information about us please visit www.globusspirits.com OR contact: Dr. Bhaskar Roy Ishan Selarka / Mayur Maniyar Globus Spirits Limited Citigate Dewe Rogerson Phone: +91 11 6642 4600 Phone : +91 22 66451232 / 1220 Fax: +91 11 6642 4629 Email: ishan@cdr-india.com Email: broy@globu
Globus Spirits — Investor Presentation (December 2011) on 6ix