Ganesha Ecosphere Limited · NSE:GANECOS
Ganesha Ecosphere — Q4 FY2019 Earnings Presentation
36 slides from Ganesha Ecosphere's earnings presentation, Jun 12, 2019
Slide 1: Regulation 30 disclosure cover letter to exchanges
GANESHA ECOSPHERE LTD. GESL/2019-20 12.06.2019 To, To, The BSE Limited, National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 1st Floor, New Trading Wing, Bandra- Kurla Complex, Rotunda Building, Bandra (East), PJ Towers, Mumbai-400051 . Dalal Street, Fort, Tel
Slide 2: Ganesha Ecosphere Limited Investor Presentation Q4 FY2019
GANESHA ECOSPHERE LIMITED I N V E S T O R P R E S E N TAT I O N Q 4 F Y 2 0 1 9
Slide 3: Green Earnings in Last Decade
GREEN EARNINGS IN LAST DECADE 325 ~36 ~45,00,000 ~9,50,000 Tonnes per day of PET Billion PET bottles Cubic yards of landfill Tonnes of CO2 saved waste Recycling recycled in last 10 years space saved by the through recycling in last Company in last 10 years 10 years Ganesha Ecosphere Limited Investor
Slide 4: Financial Performance in Last Decade
FINANCIAL PERFORMANCE IN LAST DECADE Turnover (Rs crore) EBIDTA (Rs crore) 1020.49 133.55 17.8% 18.6% 198.88 10‐yr CAGR 24.3 10‐yr CAGR 2009‐10 2018‐19 2009‐10 2018‐19 PAT (Rs crore) Market Capitalisation (Rs crore) 61.95 711.75 21.3% 29.6% 9 10‐yr CAGR 10‐yr CAGR 52.79 2009‐10 2018‐19 2009‐10 2018‐
Slide 5: Financial Performance – Q4FY2019
FINANCIAL PERFORMANCE – Q4FY2019 Revenue (Rs crore) EBIDTA (Rs crore) PAT (Rs crore) 255.08 45.26 23.50 211.30 26.11 +20.7% over +73.3% over 9.84 +138.8% over Q4FY2018 Q4FY2018 Q4FY2018 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 EBIDTA margin (%) PAT margin (%) 17.65 9.16 12.24 4.61 +541 bps over +45
Slide 6: Financial Performance – FY2019
FINANCIAL PERFORMANCE – FY2019 Revenue (Rs crore) EBIDTA (Rs crore) PAT (Rs crore) 1020.49 133.56 61.95 757.26 89.14 35.23 +34.8% over +49.8% over +75.8% over FY2017‐18 FY2017‐18 FY2017‐18 2017‐18 2018‐19 2017‐18 2018‐19 2017‐18 2018‐19 EBIDTA margin (%) PAT margin (%) 13 6.03 11.72 4.63 +128 bps ov
Slide 7: Company of the Future
COMPANY OF THE FUTURE Core business model involves around the sustainable development goals Saving landfill Reducing Reducing Saving water Saving space carbon crude demand consumption energy emission for fresh fiber production GESL’s products are Global Recycle Standard(GRS) certified; fetching prem
Slide 8: Ganesha Ecosphere… Touching Lives Every Day
GANESHA ECOSPHERE… TOUCHING LIVES EVERY DAY …in the …in the seat …in the …in the pair …in the carpet towel one upholstery of jersey one of shoes that snugly uses daily the car one wears while she uses for welcomes her for drying drives to her she goes out her evening home from hair office to play wa
Slide 9: Key Takeaways
KEY TAKEAWAYS Responsible Growing raw Largest Indian Having ῀ 20% business; material player (PET market share in addressing availability due to Recycled PET recycling larger global lifestyle trends Segment) segment good Premiumised Stronger Company’s ICAI Silver Shield recycled fibre Balance Sheet;
Slide 10: Who We Are
WHO WE ARE Established in 1987 by Mr India’s leading Headquartered in Kanpur Shyam Sunder Sharmma Polyethylene (Uttar Pradesh) and Terephthalate (PET) Manufacturing units located bottle scrap recycling in Kanpur (Uttar Pradesh), Company Rudrapur (Uttarakhand) and Bilaspur (Uttar Pradesh) Certificati
Slide 11: Spread of Activities
SPREAD OF ACTIVITIES Pan‐India Supplier to key 150+ Indian Exports to 20+ Brand presence; OEMs (Maruti, spinning units countries synonymous working with Mitsubishi, consume our with credibility, 400+ customers Hyundai, Target RPSF to make reliability and Group USA, etc.) spun yarn efficiency Revenue
Slide 12: What Do We Do
WHAT DO WE DO • Collect discarded PET waste (bottles, containers etc.) for recycling • Robust collection network 200+ suppliers/ vendors, spreading throughout the country. • Arrangements with Bottling company for collection and recycling of their plant scrap . • PET waste sourced through rag pickers
Slide 13: How Do We Do
HOW DO WE DO • Waste sorted for colour, non‐PET removed, cleaned, chipped to small flakes, converted into RPSF through high speed extruders in a non‐chemical process • With no polluting chemicals used, recycling process itself is environment friendly • High end drawing and crimping machines allow to
Slide 14: Why Do We Do It
WHY DO WE DO IT Emission of • PET is >40% of global packaging mix but takes over Greenhouse gases in 500 years to decompose production • Problem of waste disposal rising as PET consumption rises across India & world PET Creates decomposes • Recycling a must to sustain environment and blockages reduc
Slide 15: Products
PRODUCTS Ganesha Ecosphere Limited Investor presentation Q4FY2019
Slide 16: Products (cont.)
PRODUCTS (cont.) Long filaments cut into small pieces called staple Staples combined and spun Result: Yarn Description Application Industry Milange Body Warmers Knitting Single Yarn Dress material Clothing, knitting and hosiery Doubled Yarn Suiting, shirting, furnishing Clothing, knitting and hosier
Slide 17: Product Applications
PRODUCT APPLICATIONS Textiles Functional Fillings All kinds of textiles Pillows, duvets clothings Non‐woven, air and toys among filter fabric, geo others textiles, carpets, car upholstery Ganesha Ecosphere Limited Investor presentation Q4FY2019
Slide 18: Recycled PET Product Advantages
RECYCLED PET PRODUCT ADVANTAGES Consumes Utilises less Soft, durable and resistant to Lower soil, lower energy water (compared water and air in manufacture cotton wrinkles, shrinks and contamination cultivation) stains Lower oil Saved landfill 75% lower dependence than needs; no CO2 emission in the
Slide 19: Our Strengths
OUR STRENGTHS Early‐mover Portfolio Value‐addition Scale Network Entered the Broad‐based Several production With Largest Strong collection business more than product portfolio lines, equipped with Capacity; network two decades ago; with diverse state of the art attractive mobilise ~325 nascent indus
Slide 20: FMCG to Drive PET Consumption – Key Growth Driver
FMCG TO DRIVE PET CONSUMPTION – KEY GROWTH DRIVER India's share PET consumption FMCG is still Farm income Omni channel in the final growth linked to under‐ support players are consumption of India’s FMCG penetrated in scheme to driving consumer goods consumption the rural drive rural accessibility i
Slide 21: Marquee Global Brands: Increasing Commitment Towards Recycled Products
MARQUEE GLOBAL BRANDS: INCREASING COMMITMENT TOWARDS RECYCLED PRODUCTS • 80% products • 100% • Conscious • Launched • Re‐collection to contain recycled Collection uses four capsule offering recycled polyester use organic and apparel comprises 10 materials by in all recycled collections styles from 2
Slide 22: Global Brands Who Have Signed to 25% Recycled Plastic Use by 2020
GLOBAL BRANDS WHO HAVE SIGNED TO 25% RECYCLED PLASTIC USE BY 2020 AB Lindex GreenBlue MEC rePATRN Adidas H&M Metawear SKFK Aldi‐Nord Haiyan Haili Green Fiber Mini Rodini Sustainable Furnishings Council Applied DNA Sciences Hallotex S.L. Nan Ya Plastics Corporation Target Adventura Clothing/Sportif U
Slide 23: Attractive Placement of Recycled PET Globally
ATTRACTIVE PLACEMENT OF RECYCLED PET GLOBALLY Finite Global Consumer shift Demand Recycled crude from price growth coming content driving oil sources sensitivity to from marquee pricing power driving need sustainability brands for recycling Global textile Growing PET majors increasing waste needing
Slide 24: Attractive Placement of Recycled PET Globally
ATTRACTIVE PLACEMENT OF RECYCLED PET GLOBALLY • Korea: Banned plastic cups • Taiwan: Pursuing a phased • EU: Proposed a minimum for in‐store customers ban on single‐use plastics 30% recycled plastic content (2018) • EU: Intending to ban 10 in PET drink bottles by 2030. • Thailand: Banned plastic sin
Slide 25: PET Finding Growing Applications
PET FINDING GROWING APPLICATIONS Annual global PET Plastic bottle PET consumption consumption growth consumption drivers 70 MT in 2017 > 85.4 Globally, one million plastic Water: 241 bn bottles MT in 2022 bottles sold ‐ every minute consumed annually Half a trillion plastic bottles to Carbonated sof
Slide 26: Consumption Growth to Drive the Market
CONSUMPTION GROWTH TO DRIVE THE MARKET ~ 900,000 tonnes of PET produced annually in India ~65% recycled at registered facilities Sectoral growth driven by FMCG growth Packaged water fastest growing beverage segment CARBONATED BEVERAGE CONSUMPTION IS UNDER-PENETRATED IN INDIA bottles per bottles per
Slide 27: India's Growth Drivers
INDIA’S GROWTH DRIVERS Population Expected to overtake China’s population by 2024 Youth 64% population in the working age category by 2020 Per capita income CAGR 9.6% in per capita income in five years Conscious Health consciousness driving packaged water consumption Electrification Rural electrific
Slide 28: rPET Market Large and Growing Faster Than Alternatives
rPET MARKET LARGE AND GROWING FASTER THAN ALTERNATIVES 6.9 7.4% 4.2% 3.3% USD bn, Global CAGR, expected to Global rPET Melt Global virgin PET rPET market, in grow during 2019‐ phase capacity capacity CAGR, 2018 2025e CAGR, 2017‐ 2017‐2022e 2022e Ganesha Ecosphere Limited Investor presentation Q4FY20
Slide 29: What's Next
WHAT’S NEXT Enter into new Expansion of the To enter into recycled To enter into rPET geography Capacity in RPSF filament Yarn for bottle to bottle application in value‐ products to address added products the need of recycled manufactured by PET resin international brands Ganesha Ecosphere Limited I
Slide 30: Ganesha Ecosphere Right Company at the Right Time
GANESHA ECOSPHERE RIGHT COMPANY AT THE RIGHT TIME Scale Sectoral demand growth Financials Portfolio Favourable government Right Right regulations time company Growing consumption Presence Procurement of packaging products Wider and profitable opportunity in terms of rPET applications in fibre, filam
Slide 31: Financial Performance Quarter-wise
FINANCIAL PERFORMANCE QUARTER-WISE Rs. In Lakhs Particulars March 31, 2019 December 31, 2018 March 31, 2018 (Audited) (Unaudited) (Audited) Total income 25,646.31 26,650.99 21,330.89 Cost of materials consumed 15,208.58 15,987.65 13,100.31 Purchases of stock‐in‐trade 420.65 325.67 549.88 Changes in
Slide 32: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE Rs. In Lakhs Particulars March 31, 2019 March 31, 2018 (Audited) (Audited) Total income 1,02,667.15 76,026.86 Cost of materials consumed 61,690.61 46,842.16 Purchases of stock‐in‐trade 1,627.26 2,055.94 Changes in inventories of finished goods, Stock‐in ‐Trade and work‐i
Slide 33: Balance Sheet
BALANCE SHEET Rs. In Lakhs Particulars Financial Year ended March 31, 2019 Financial Year ended March 31, 2018 (Audited) (Audited) ASSETS 1. Non‐current assets Property, plant and equipment 31036.15 31,584.79 Capital work‐in‐progress ‐ 92.66 Intangible assets 202.69 11.52 Intangible assets under dev
Slide 34: Balance Sheet
BALANCE SHEET Rs. In Lakhs Particulars Financial Year ended March 31, 2019 Financial Year ended March 31, 2018 (Audited) (Audited) EQUITY AND LIABILITIES 1. Equity Equity share capital 2,182.94 1,917.69 Other equity 39,711.97 24,365.81 Total equity 41,894.91 26,283.50 2. LIABILITIES 2A. Non‐current
Slide 35: Be a global citizen. Act with passion and compassion.
Be a global citizen. Act with passion and compassion. Help us make this world safer and more sustainable today and for the generations that will follow us. That is our moral responsibility. – Ban Ki-moon Ganesha Ecosphere Limited Investor presentation Q4FY2019
Slide 36: Disclaimer and Contact details
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "pl