Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (August 2015)
62 slides from Greenlam Industries's investor presentation, August 2015
Slide 1: Greenlam Industries Ltd: Investor & Analyst Meet August 2015
Greenlam Industries Ltd Transforming Spaces, Enriching Lives. Investor & Analyst Meet August – 2015 www.greenlamindustries.com
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Contents
Contents Overview Slide 4 Our Product Range Page 15 We have what it takes to be No.1 Page 23 Brand Investments for Growth Page 34 What Lies Ahead… Page 38 Financials Page 47 3
Slide 4: Slide 4
Slide 5: Unique interior surfacing company
Unique interior surfacing company that transforms living spaces into beautiful and aesthetic spaces.
Slide 6: The world's 3rd & Asia's largest laminate brand
rd The world’s 3 & Asia’s largest laminate brand
Slide 7: Transformation...
Transformation... • Foundation stone of First • Started Commercial • 2nd Laminate unit at • Sep: Decorative Division • Mar: Listed on NSE & laminate Unit at Behror, Production of Decorative Nalagarh starts demerger approved by BSE Rajasthan Veneer commercial production Board of Directors 1992 1993 2
Slide 8: Today we are
Today we are India’s only Integrated and Largest manufacturer of Decorative Surfacing Products from Laminate & Wood Panel Industry
Slide 9: Product Offerings
Product Offerings Laminate & Allied Decorative Veneer & Allied Laminate Compacts MFC Decorative Engineered Wood Engineered Veneers flooring Doors 9
Slide 10: Product Offerings
Product Offerings Laminate & Allied Wood & Allied Decorative Engineered Engineered Laminate Compacts MFC Veneers Wood flooring Doors HPL Ply Based Interior Prelam MDF Based Specialty Exterior Postlam Laminate Based RC& Lockers Natural, Teak & Engineered Variants
Slide 11: Laminates & Allied Products: Our Product Range
Laminates & Allied Products Our Product Range
Slide 12: Laminates
Laminates • Laminates are decorative surface material, used on top of a substrate like plywood, MDF or a particle board as a surface cover • Greenlam laminate is the flag ship brand of Greenlam Industries Limited • Market Leader in Laminates with a wide range of over 2500+ decors in over 50 textures
Slide 13: Today: more than 2000 products offered globally
TODAY at Greenlam we offer more than 2000 products to the customers globally Black Dyed Ask/Oak Walnuts 13
Slide 14: Compact Laminates
Compact Laminates • Self Sustainable boards panels made with decorative surface papers with décor finish on both sides • Our business is divided into three solutions Change photo • BOARD || REST ROOM CUBICLE || FAÇADE CLADING • Greenlam Offers • Greenlam Anti-Bacterial Compact Laminates are “Green G
Slide 15: Melamine Faced Chip Board
Melamine Faced Chip Board Structure of MFC – • MFC - Melamine Faced Chip Board is an engineered particle wood product Pre Laminated • Greenlam offers • Laminated MFC for the use in organised carpentry primarily by OEM’s like modular Décor paper impregnated with Melamine furniture manufacturers, kitc
Slide 16: Decorative Veneer & Allied Products
Decorative Veneer & Allied Products Our Product Range
Slide 17: Decorative Veneers
Decorative Veneers • Largest manufacturer of Natural Wood Veneer in India with the largest Structure of a Veneer manufacturing capacity • Offers over 200+ exotic & imported natural veneer wood species • We also added to the portfolio – Teak & Engineered Veneers • Greenlam Offers • Many variants as c
Slide 18: Engineered Wood Flooring
Engineered Wood Flooring • “Mi Casa , Su Casa” – Mikasa is the 1st Indian Brand of Engineered Wood Floors • State of art manufacturing facility with Latest European technology • Plant Integrated with decorative veneer facility driving better synergy in sourcing and manufacturing • Highest range offe
Slide 19: Engineered Door Solutions (Door + Frame)
Engineered Door Solutions ( Door + Frame)* • First organised company to launch engineered, factory finished, door solutions in the country • Capacity : 120,000 Doors units / annum • Investment : Rs 27 Crores • Integrated with existing decorative veneer and engineered wood flooring, driving better sy
Slide 20: We have what it takes to be No.1
We have what it takes to be No.1
Slide 21: Key Differentiators
Key Differentiators Greenlam’s Only Integrated Manufacturer BIG Largest manufacturer/capacity of all product lines Largest in Asia & 3rd Largest globally in laminates Largest Distribution Network WHY’s CAGR 14% PA for 5 years 21
Slide 22: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Decorative Veneers (Behror) Laminates (Behror, Nalagarh) Engineered Wood Flooring (Behror) Engineered Doors* (Behror) 22
Slide 23: Leadership in Manufacturing Capabilities
Leadership in Manufacturing Capabilities Laminates & Compact Laminates 10.02 mn Sheets * Largest in Asia Decorative Veneers 4.2 Mn Sqm Largest in India Complements the Melamine Faced Chipboard - MFC 2 Mn Sqm Laminates & Allied Products India’s 1st and only Engineered Wood Flooring 1 Mn Sqm manufactu
Slide 24: Growth in Laminates...
Growth in Laminates... 180% 40% 20% Infrastructure available for 40% incremental 100% 20% capacity with minimal New Press Lines added for additional 2 mn incremental cost 10.02 Mn Current Utilisation at Sheets at the Cost of Rs sheets 114% achieved from 20 Crores Debottlenecking To be operational by
Slide 25: Strong Brand Equity
Strong Brand Equity • Strong brand presences across the globe • On awareness parameters, Greenlam enjoys the highest brand recall among specifier & homeowners* • Trusted brand by designers & architects, trade & consumers for innovation in design trend, quality, availability & transparency • Highest
Slide 26: India Network Presence – The Core strength
India Network Presence – The Core strength Greenlam has the widest & largest sales and distribution network in India Pan India Presence With 9 Company owned large Regional Distribution Centers 29 Branch offices Over 500 sales staff 12000+ distributors, dealers & retailers – Largest in the country 26
Slide 27: Global Network Presence
Global Network Presence 11 International offices Over 100+ overseas employee 5 Company operated warehouses including 3 subsidiaries 100+ Countries Greenlam is the only company from India to have the largest sales and distribution network Globally 27
Slide 28: Awards & Recognitions
Awards & Recognitions Power Brands Master Brand 100 Most valuable brand Largest exporter award 1st Non American brand to get Greenguard Certification 1st Company in the country to trade in FSC® product 28
Slide 29: Green Credentials...
Greenlam Industries Limited Green Credentials... Oe ey GREENGUARD GREENGUARD
Slide 30: Presence across B2B & B2C
Li? Greenlam Industries Limited Presence across: B2B & BeC | Your, creativity now knows no bounds | <4 ca Se aire
Slide 31: Brand Investments for Growth
Brand Investments for Growth
Slide 32: Domestic - Print Campaigns - Mikasa & Decowood
Domestic - Print Campaigns- Mikasa & Decowood 32
Slide 33: Domestic - Mikasa Floors Display Centres
Domestic - Mikasa Floors Display Centres Delhi Mumbai 33
Slide 34: Domestic - Mikasa Doors Display
Domestic - Mikasa Doors Display 34
Slide 35: International - Greenlam - Interzum 2015 - Germany
International - Greenlam - Interzum 2015 - Germany 35
Slide 36: International - Greenlam Range Launch
International – Greenlam Range Launch 36
Slide 37: What Lies Ahead… An Ocean Of Opportunities
What Lies Ahead… An Ocean Of Opportunities
Slide 38: India - Opportunities
India - Opportunities • Expanding rural retail penetration Rural Demand • Increasing exposure of branded products • There are a total of 9391 towns in India (Census 2011) Real Estate • Market size of real estate in India is expected to reach $180 bn by 2020 • Growth in Real Estate led by lower inter
Slide 39: India - Opportunities
India - Opportunities Compact Laminates Growing markets for Niche Products Growing market for uses across Cladding, restroom cubicles, lockers One stop shop for all decorative surface solutions Decorative Veneers Offering more than 200 wood varieties to cater to the need for natural surfacing Engine
Slide 40: India - Opportunities – Laminates & Allied
India - Opportunities – Laminates & Allied Laminates Market Size in Rs Crores Decorative Laminates New product launches will help in increasing the volume and value mix 10% 18% Market Market 20% Capacity expansion will help us gain more market share Share Share There is a visible shift from un
Slide 41: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Decorative Veneers Decorative Veneer Market Size in Rs Crores • Expansion into 2 newer product lines – Teak & Engineered 12% 18% Market Market • Largest installed capacity in the country Share Share • Brand enjoys, high equity among specifer
Slide 42: Opportunities – Engineered Wood Floors
Opportunities – Decorative Veneers & Allied India Focused Engineered Wood Floors • We are the first and only manufacturer of Engineered Wood Floors in the country • The Market is estimated at 2Mn.sqm • Mikasa’s Installed capacity is 1Mn.Sqm • Category is withnessing a 20-25% growth • No organised pl
Slide 43: Opportunities – Engineered Doors
Opportunities – Decorative Veneers & Allied India Focused Engineered Doors (Door + Frame) • Door (including flush door) market is estimated at 24mn annually • Engineered Finished Door category is witnessing a 20-25% growth • Greenlam is offering for the first time in India, ready to fit factory made
Slide 44: International Opportunities – Laminates & Allied
International Opportunities – Laminates & Allied Indian laminate exports Rs 800 Crs • Laminates industry globally is at $7 Bn growing by 2% p.a. • According to a study done by Freedonia Group the industry is expected to grow by 5.6% per year till 2018 reasons being • Increasing manufacturing of cabi
Slide 45: Asia – Pacific (Excluding India)
Asia – Pacific (Excluding India) • Asia Pacific market covers 15 countries • Market Size – $1.5 Billion • This market is growing by 5% • Greenlam has 7 offices in the region • Major resources deployed in Asia PAC with higher scope for growth 45
Slide 46: Other Markets
Other Markets European market • Europe market covers 16 countries • Market growth is stagnant • Office in UK North & South America markets • Covers 11 countries • This market is growing by 2% • 2 Offices in United States 46
Slide 47: Financials
Greenlam Industries Limited Financials
Slide 48: Performance: Q1 FY16
Performance: Q1 FY16 Revenue EBIDTA +17% +6% 217.0 23.5 24.8 Segmental Revenue 186.0 Decorativ e Veneer & Allied Q1FY15 Q1FY16 Q1FY15 Q1FY16 13% PAT Cash Accrual 0% -9% Laminates 7.0 14.0 14.1 & Allied 6.4 87% Q1FY15 Q1FY16 Q1FY15 Q1FY16 In Rs Crores 48
Slide 49: Performance: Q1 FY16
Performance: Q1 FY16 • Revenues grew by 17% in this quarter, led by good performance in • Exports - 25% sales growth • Decorative veneers - 44% volume growth • Our debottlenecking initiatives have led to Laminate capacity utilisation of 113% • Launching of new variant led to enhanced Veneer capacity
Slide 50: Laminates & Allied Products
Laminates & Allied Products Q1 Q4 Rs. Crores Q3 FY15 FY15 FY16 FY15 Net Sales of Laminates 188.7 197.5 192.91 745.2 & Allied Products 11.7 EBIDTA Margin % 9.0% 10.9% 10.1% % Capital Employed 337.3 331.8 355.3 331.8 Note: The segments were formed post demerger, hence data for the previous period not
Slide 51: Laminates & Allied Products
Laminates & Allied Products Production in Mn Sheets Capacity Utilization Annual Capacity of 10.02 Mn Sheets +10.1% 3.2 126% 3.0 2.8 121% 2.6 2.7 113% 103% 106% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Sales in Mn Sheets Average Realisation (Rs/Sheet) +2.3% +11.9% 3.2 627
Slide 52: Decorative Veneers & Allied Products
Decorative Veneers & Allied Products Q1 Q4 Rs. Crores Q3 FY15 FY15 FY16 FY15 Net Sales of Decorative Veneers & Allied 28.3 33.8 21.85 99.4 Products 9.7% 15.2% EBIDTA Margin % 8.6% * 17.5% * * Capital Employed 156.1 142.4 130.0 142.4 Note: The segments were formed post demerger, hence data for the pr
Slide 53: Decorative Veneers
Decorative Veneers Production in Mn Sqmt Capacity Utilization Annual Capacity of 4.2 Mn Sqmt +61.0% 0.40 38% 0.34 32% 0.25 0.26 25% 0.22 23% 20% Q1FY1 Q2FY1 Q3FY1 Q4FY1 Q1FY1 Q1FY1 Q2FY1 Q3FY1 Q4FY1 Q1FY1 5 5 5 5 6 5 5 5 5 6 Sales in Mn Sqmt Average Realisation (Rs / Sqmt) +44.4% -13.7% 885 0.35 0.3
Slide 54: Profit and Loss
Profit and Loss Rs. Crores Q1 FY16 Q4 FY15 Q3 FY15 Q2 FY15 Q1 FY15 YoY% FY15 Revenue 217.0 231.2 214.8 212.6 186.0 16.7% 844.6 Raw Material 126.5 138.6 130.1 131.5 111.4 511.5 Employee Cost 24.9 19.7 20.8 20.3 18.0 78.9 Other Expenses 40.8 50.1 41.0 37.1 33.1 161.3 EBITDA 24.8 22.9 22.9 23.7 23.5 5.
Slide 55: Geographic Segments
Geographic Segments Domestic (Rs Crores) Exports (Rs Crores) +10.4% +25.5% 137 97 94 126 92 123 120 87 108 78 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 55
Slide 56: Performance Ratios
Performance Ratios ROCE Net Working Capital Days 13.3% 99 12.3% 66 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Q1FY15 Q1FY16 Revenue 185.8 217.0 Inventory 92 81 EBIT 16.6 17.8 Debtors 67 54 PAT 7.0 6.4 Creditors 60 69 Capital 543.6 536.0 Net Working 99 66 Employed Capital 56
Slide 57: Balance Sheet
Balance Sheet Rs. Crores Mar – 15 Mar - 14 Rs. Crores. Mar - 15 Mar - 14 Shareholder’s Fund 227.1 202.5 Non-Current Assets 346.7 291.8 Share capital 12.1 Fixed assets 320.6 253.0 Reserves & Surplus 215.0 202.5 Non-Current Investments 17.5 17.5 Non-Current Liabilities 197.7 159.2 Other Non-Current As
Slide 58: Way ahead…
Way ahead… • Continue the Growth momentum in Laminate & maximize the utilization of existing capacity • 20% expansion of laminate capacity from 3rd Quarter of FY 2016 • Continue expansion of sales & distribution network • Launching of another variant of Decorative Veneers in this quarter • Enhance t
Slide 59: Board Members
Board Members Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Chairman Managing Director & CEO Ms. Parul Mittal Mr. Vijay Kumar Chopra Director Marketing & Design Independent Director Ms. Urvashi Saxena Ms. Sonali Bhagwati Dalal Independent Director Independent Director 59
Slide 60: Management Team
Management Team Saurabh Mittal Parul Mittal Director Design & Marketing Managing Director & CEO Ashok Sharma B L Sharma Deepak Aadhar Alex Joseph President - Plant Vice President - Chief Financial Vice President - Operations HR, CSR, IT & Admin Officer Marketing Anuj Sangal Anil Tyagi Shivaji Mohint
Slide 61: Greenlam Industries Limited
Greenlam Industries Limited AGA
Slide 62: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: U21016AS2013PLC011624 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Ms. Ruchi Rudra/ Ms. Neha Shroff Email: ashok.sharma@greenlam.com rruch
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