Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Investor Presentation (March 2023)
36 slides from Associated Alcohols & Breweries's investor presentation, Mar 16, 2023
Slide 1: Regulation 30 filing cover letter to stock exchanges
Registered I Corporate Office: 4th Floor, BPK Star Tower, A.B. Road, Indore - 452 008, (M.P.)India Contact No. +91 731 4780400/490 ASSOCIATED Associated Fax : +91 731 4780410 E-mail : info@aabl.in K E D IA G R OU P Dreams Determination Dexterity Alcohols & Breweries Ltd. CIN : L15520MP1989PLC049380
Slide 2: Associated Alcohols & Breweries Limited Investor Presentation March 2023
ASSOCIATED ALCOHOLS & BREWERIES LIMITED INVESTOR PRESENTATION MARCH 2023
Slide 3: Table of Contents
TABLE OF CONTENTS I. AABL at a Glance 03 II. Company Overview 04 III. Business Overview 15 IV. Strategic Overview 22 V. Industry Dynamics 25 27 VI. Financial Highlights 2
Slide 4: Company Snapshot
Company Operational Snapshot Snapshot 3+ Decades Largest ENA manufacturing 32 of rich industry Single Location capacity is of Bottling domain experience integrated manufacturing 45 MLPA Lines Facility 12.5 Mn 6 Cases proprietary capacity brands Financial Snapshot Industry Best Zero 5-year Revenue 5-
Slide 5: Company Overview and Financial Highlights
Company Financial Highlights 5,350 4,532 5,142 5,169 4,116 Overview 3,310 20% 16% 16% 14% 14% 9% • Associated Alcohols and Breweries Ltd. (AABL) was founded by the 514 576 766 895 822 477 late Shri Bhagwati Prasad Kedia in 1989. • It is run today under the stewardship of his two sons, Mr. Anand FY18
Slide 6: Promoters and Senior Management
Mr. Anand Kumar Kedia Mr. Prasann Kumar Kedia Founder, Promoter & Chairman Promoter & Vice President He is the Chairman – Business Promotion & He is the Vice Chairman – Operation & Development, with an experience of 28+ Business Development. years in the business and industry. He is an integral part
Slide 7: Board of Directors and Key Management Personnel
Board of Key Management Personnel Directors Mr. Sanjay Kumar Tibrewal Ms. Homai A Daruwalla Mr. Ankit Agrawal Whole Time Director Independent Director Chief Financial Officer Mr. Tushar Bhandari Mr. Nitin Tibrewal Mr. Sumit Jaitely Whole Time Director Independent Director Company Secretary Mr. Debas
Slide 8: Company Milestones
2016 2017 Issuance of bonus Embarked on an shares in the ratio ambitious expansion of 1:1 project from 31.4 MLPA 2022 to 45 MLPA Achieved 1 Million cases in Kerala (9 months) and emerge as one of the largest player 2015 Integrated systems and 2021 implemented SAP-ERP Announced Project Expansion acro
Slide 9: Award for Best IMFL Whisky (Prestige) James McGill
Award for BEST IMFL WHISKY (Prestige) James McGill 8
Slide 10: Competitive Edge
Competitive Edge Superior Quality Co-generation power plant Multi Grain-based process manufacturer 60% of power coming from captive sources and expanding to further 100% Diversified Strategic Location Presence across alcohol value chain 125 acres land at Madhya Pradesh, is equidistant from all major
Slide 11: Manufacturing Prowess
Manufacturing Capacity (MLPA) & Utilizations (%) Prowess 95% 80% 100% 100% • AABL has one integrated state-of-art strategically located 45 45 45 45 Manufacturing plant in Khodigram (Barwaha district, Khargone, Madhya Pradesh) and is responsible for alcohol production, bottling and packaging liquor.
Slide 12: Integrated Manufacturing Process
Integrated Manufacturing Process Culture Yeast Spent Grain Sold as cattle feed Grain Silo Milling Liquefaction Fermentation MPR Decantation Distillation ENA / RS ENA Storage Tank Blending Tank Boiler Turbine Exhaust Steam Product Packing Dispatch 11
Slide 13: Infrastructure
Infrastructure Grain Silo Boiler Fermentation Decantation Bottling Section Section 12
Slide 14: Geographical Presence
Geographical Presence DELHI • Integrated state-of-art strategically located UTTAR PRADESH Manufacturing plant in Khodigram, Barwaha district, Khargone, Madhya Pradesh. • Strong Presence in Kerala, Delhi, Uttar Pradesh, Chhattisgarh and Madhya Pradesh. MADHYA PRADESH • Asset-Light Model is adopted wh
Slide 15: Responsible ESG Record
Responsible ESG Record Environment Commitment Governance Commitment • Commitment to environmental management systems • Engaged in investments in assets and projects with short-term paybacks. • Conduct environmental due diligence • Board comprising professionals and industrialists who provide the Com
Slide 16: Business Overview
Business Overview 15
Slide 17: Business Segments
Business Segments B2B Business (68% of Revenue*) Net Revenue From Operations (INR Mn) Merchant ENA Contract Manufacturing 5,226 26% 02% 5,126 5,159 4,358 By Products IMIL 10% 30% FY20 FY21 FY22 9M-FY23 B2C Business (32% of Revenue*) IMFL Licensed (Proprietary Brands) Brands 12% 20% * As of FY22 16
Slide 18: Products & Brands
Products & Brands 17
Slide 19: Consumer Business
Consumer Business IMIL and IMFL • AABL has diversified over the years to create six of its own proprietary IMFL brands. • The company’s IMFL brands are being sold today in states like Madhya Pradesh, Delhi, Chhattisgarh, Kerala and Uttar Pradesh. • The company plans to steadily increase its geograph
Slide 20: Licensed/Franchised Brands
Licensed/ Franchised Brands • AABL has had a long standing and constantly growing relationship with Diageo for about three decades due to AABL’s integrated manufacturing process and unmatched superior quality ENA. • From supplying ENA to contract manufacturing to job working, AABL is Diageo’s premie
Slide 21: Contract Manufacturing
• Contract Manufacturing helps AABL diversify the • Contract The company is also the preferred bottler for business risk by ensuring in-house spirit RS/ENA sale industry leaders and many prestigious brands. along with utilization of bottling facilities. • By the virtue of being among the largest • T
Slide 22: Operational Highlights
Operational Highlights Merchant ENA IMIL IMFL Proprietary IMFL Licensed REVENUE (INR Mn) 1,720 1,804 1,312 1,588 1,411 1,218 1,405 793 996 677 625 640 980 1,082 817 897 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 Merchant ENA (MLPA) IMIL (Cases) IMFL P
Slide 23: Operational Highlights
Operational Highlights Licenced Brands Sales (%) Proprietary Brands- State Contract Manufacturing Revenue wise Revenue Breakup (%) (INR Mn) 103 100 3% 3% 93 45% 41% 72 51% 56% 1% McDowell’s No. 1 Rum White Mischief Madhya Pradesh Delhi Kerala Bagpiper Deluxe Whisky Blue Riband Gin FY20 FY21 FY22 9M-
Slide 24: Strategic Overview
Strategic Overview 23
Slide 25: Future Growth Strategies
Future Enhance the company’s presence in all segments of the alcohol consumption value chain by increasing Growth Strategies focus on value added high margin products. Expansion plans to cater to the Expansion of capacity through growing needs of the existing internal accruals making AABL the domest
Slide 26: Growth Drivers
Growth Drivers Rapid Urbanization Large headroom to grow AABL is a preferred and Multi-year and favorable in the existing client trusted supplier due to Diageo/USL demographics relationships superior grain based relationship quality manufacturing processes Focus on increasing India expected to add I
Slide 27: Industry Overview
Industry Overview 26
Slide 28: Industry Dynamics
Industry Dynamics • India is the third-largest and fastest growing liquor market in the world. • The India alcohol market was valued at INR 2,807,236.7 bn in 2018, and is expected to reach INR 5,482,851.3 bn by the end of 2027 exhibiting a CAGR of 7.8% for the forecast period (2019-2027). The ENA Ma
Slide 29: Financial Overview
Financial Overview 28
Slide 30: Historical Income Statement
Historical Income Statement Statement Particulars (INR Mn) Gross Revenues FY20 5,350 FY21 4,532 FY22 5,142 9M-FY23 5,169 Excise duty 124 174 16 10 Net Revenue from Operations 5,226 4,358 5,126 5,159 Total Operating Expenses 4,460 3,463 4,304 4,682 EBITDA 766 895 822 477 EBITDA Margins (%) 14.66% 20.
Slide 31: Historical Balance Sheet
Historical Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Share Capital 181 181 181 Property, Plant & Equipment 1,087 1,116 1,101 Other Equity 2,337 2,948 3,243 Capital Work in progress 92 236 669 To
Slide 32: Historical Balance Sheet
Historical Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Equity Non-Current Assets Share Capital 181 181 181 Property, Plant & Equipment 1,087 1,116 1,101 Other Equity 2,337 2,948 3,243 Capital Work in progress 92 236 669 To
Slide 33: Financial Overview
Financial Overview Net Revenue Operations (INR Mn) EBITDA (INR Mn) & Margin (%) Net Profit (INR Mn) & Margin 895 (%) 5,226 766 822 608 5,126 5,159 477 493 580 20.54% 11.86% 318 4,358 13.31% 14.66% 16.04% 9.43% 9.25% 6.16% FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 EBITDA (I
Slide 34: Capital Market Data
Capital Market Data 10% 5% 0% -5% -10% -15% -20% -25% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 AABL-Close Price Sensex Price Data (As on 31st December, 2022) Shareholding Pattern (As on 31st December, 2022) Face Value (INR) 10.00 58.45% Market Price (INR) 4
Slide 35: Disclaimer
Disclaimer 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 the d
Slide 36: Thank You
Thank You 35
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