Ganesha Ecosphere Limited · NSE:GANECOS
Ganesha Ecosphere — Q3 FY2020 Earnings Presentation
33 slides from Ganesha Ecosphere's earnings presentation, Feb 9, 2020
Slide 1: Cover letter to stock exchanges
GANESHA ECOSPHERE LIMITED GESL/2019-20 08.02.2020 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, Te
Slide 2: Investor Presentation Q3 FY2020
GANESHA ECOSPHERE LIMITED I N V E S T O R P R E S E N TAT I O N Q 3 F Y 2 0 2 0
Slide 3: Safe Harbour
Safe Harbour 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", "
Slide 4: Contents
CONTENTS Financial Performance Ganesha’s Overview Growthh Drivers Core Competence Key Takeaways What What’ss Next Annexure G Ganesha h Ecosphere E h Li Limited i d
Slide 5: Standalone Financial Performance – Q3FY2020
STANDALONE FINANCIAL PERFORMANCE – Q3FY2020 Revenue (Rs crore) Production Volume (Tons) Sales Volume (Tons) 27994 265.08 31266 26804 31162 208.17 + 104 ‐ 1190 ‐21.47% * Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 EBIDTA (Rs crore)/ margin (%) PAT (Rs crore) / margin (%) 33 20 33.20 32.73 p price fall
Slide 6: Standalone Financial Performance Quarter-wise
STANDALONE A A FINANCIAL A A PERFORMANCE A QUARTER-WISE A Rs. In Crore Particulars December, 2019 September, 2019 June , 2019 (Unaudited) (Unaudited) (Unaudited) Total income 210.96 237.37 244.91 Cost of materials consumed 137.19 134.94 155.23 Purchases of stock‐in‐trade 2.82 4.94 3.96 Changes in in
Slide 7: Standalone Financial Performance – 9M FY2020
STANDALONE FINANCIAL PERFORMANCE – 9M FY2020 Revenue (Rs crore) Production Volume (Tons) Sales Volume (Tons) 765.41 85331 92773 687.16 82825 89920 ‐10.22% ‐2506 +2853 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 EBIDTA (Rs crore) / margin (%) PAT (Rs crore) / margin (%) 99.90 88.36 47.62 +13.14%
Slide 8: 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 61.95 711 75 711.75 21.3% 29.6% 9 10‐yr CAGR 10‐yr CAGR 52.79 2009‐10 2018‐19
Slide 9: Standalone Financial Performance for 9M FY2020
STANDALONE FINANCIAL PERFORMANCE FOR 9M FY2020 Rs. In Crore Particulars December 31, 2019 December 31, 2018 (Unaudited) (Unaudited) Total income 693.24 770.21 Cost of materials consumed 427.35 464.82 Purchases of stock‐in‐trade 11.72 12.07 Changes in inventories of finished goods, Stock‐in ‐Trade an
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 p recycling bottle scrap y g in Kanpur p ((Uttar Pradesh), ), Company Rudrapur (Uttarakhand) and Bilaspur (Uttar Pradesh)
Slide 11: What Do We Do
WHAT DO WE DO • Collect discarded PET waste (bottles, containers etc.) for recycling • Robust R b collection ll i networkk 200 200+ suppliers/ li / vendors, d spreading di throughout h h the h country. • Arrangements with Bottling company for collection and recycling of their plant scrap . • PET was
Slide 12: 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 13: Why Do We Do It
WHY DO WE DO IT Emission of • PET is >40% of global packaging mix but takes over Greenhouse h gases in 500 years to decompose production • Problem of waste disposal rising as PET consumption rises across India & world PET Creates d decomposes • Recycling a must to sustain environment and blockages r
Slide 14: Products
PRODUCTS G Ganesha h Ecosphere E h Li Limited i d
Slide 15: 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 D bl d YYarn Doubled SSuiting, i i shirting, hi i ffurnishing i hi Cl hi
Slide 16: Product Applications
PRODUCT APPLICATIONS A A Textiles Functional Fillings All kinds of textiles Pillows, duvets clothing's Non‐woven, air and toys among filter fabric, geo others textiles, il carpets, car upholstery G Ganesha h Ecosphere E h Li Limited i d
Slide 17: Recycled PET Product Advantages
RECYCLED PET PRODUCT ADVANTAGES A A A Consumes Utilises less Soft, durable and resistant to Lower soil, lower energy water (compared water and d air i in manufacture cotton wrinkles, shrinks and contamination cultivation) stains Lower oil Saved landfill 75% lower dependence than needs; no CO2 emissi
Slide 18: rPET Market: Large and Growing Faster Than Alternatives
rPET MARKET A LARGE A AND A 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 2019‐ phase capacity capacity CAGR, 2018 2025e CAGR, 2017‐ 2017‐2022e 2022e G Ganesha h Ecosphere E h Li Limited i d
Slide 19: Marquee Global Brands Increasing Commitment Towards Recycled Products
MARQUEE GLOBAL BRANDS: 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 byy in all recycled y collections sty
Slide 20: Global Brands Signed to 25% Recycled Plastic Use by 2020
GLOBAL A BRANDS A WHO HAVE A 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/Spo
Slide 21: Attractive Placement of Recycled PET Globally
A ATTRACTIVE A PLACEMENT A OF RECYCLED PET GLOBALLY A • 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 pla
Slide 22: PET Finding Growing Applications
PET FINDING GROWING APPLICATIONS A A 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
Slide 23: Consumption Growth to Drive the Market
CONSUMPTION GROWTH TO DRIVE THE MARKET A ~ 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 UNDER PENETRATED IN INDIA bottl
Slide 24: Our Capabilities
OUR CAPABILITIES Supplier to key Strong Collection Pan‐India 150+ Indian Exports to 20+ Brand OEMs (Maruti (Maruti, network mobilize presence; spinning units countries synonymous Mitsubishi, ~400 tonnes of PET working with consume our with credibility, Hyundai, Target waste every day 400+ customers
Slide 25: Ganesha Ecosphere Touching Lives Every Day
GANESHA ECOSPHERE… ECOSPHERE TOUCHING LIVES EVERY DAY …in the …in the seat …in the …in the pair …in the carpet towell one upholstery h l off j jersey one off shoes h that h snugly l uses daily the car one wears while she uses for welcomes her for drying drives to her she goes out her evening home fr
Slide 26: ESG Initiatives
ESG INITIATIVES Environment S i l Social Governance • Target to equip all • Already in the • Speedy redressal of the unit with rooftop business of plastic Investors query solar p panels waste recycling • 8 Non Executive • Increasing greenery • Addressing Swatch Director i out off 12 Bharat Mission •
Slide 27: Green Earnings in Last Decade
GREEN EARNINGS IN LAST DECADE ~400 ~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 COMPANY OF THE FUTURE : Core busi
Slide 28: 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 pproducts the need of recycled manufactured by PET resin international brands Expansion is taken up in w
Slide 29: Key Takeaways
KEY TAKEAWAYS A A A 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 d Stronger Company s Company’s ICAI Silver Shield recycled fib
Slide 30: Right Company at the Right Time
GANESHA A A ECOSPHERE RIGHT COMPANY AT THE RIGHT TIME Scale Sectoral demand growth Financials Portfolio Favourable governmentt Right Right regulations time company Growing consumption Presence Procurement of packaging products p Wider and profitable opportunity in terms of rPET applications in fibre
Slide 31: 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 32: 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 2,182.94 1 917 69 1,917.69 Other equity 39,711.97 24,365.81 Total equity 41,894.91 26,283.50 2. LIABILITIE
Slide 33: 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. responsibility – Ban Ki-moon G Ganesha h Ecosphere E h Li Limited i d