Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Investor Presentation (July 2023)
36 slides from Crompton Greaves Consumer Electricals's investor presentation, Jul 3, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400 070.India T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254 Date: July 3, 2023 To, To, BSE Li
Slide 2: Investor Presentation July 2023
Investor Presentation JULY 2023
Slide 3: Disclaimer
Disclaimer This presentation does not constitute an offer from Crompton Greaves Consumer Electricals Ltd. or any of its affiliates (“Crompton”) to any party and the information contained herein will not form the basis of any contract. Neither Crompton nor any of their respective affiliates, sharehol
Slide 4: Crompton at a glance
Crompton at a glance...
Slide 5: Crompton: 90+ year legacy serving consumers' core electrical needs
Crompton: 90+ year legacy serving consumers' core electrical needs Established industrial and CGCEL spun-off to cement Diversification & investment engineering house leadership in consumer electricals into new growth opportunities 2022 2021 Launched Setup built-in kitchen 2015 innovation appliances
Slide 6: We are an independent Board-led and professionally managed company
We are an independent Board-led and professionally managed company Board of Directors Mr. Hemant Nerurkar Mr. Shantanu Khosla Mr. Promeet Ghosh Mr. D. Sundaram Chairman & Independent Director Executive Vice Chairman Managing Director & CEO Independent Director Mr. P. M. Murty Ms. Smita Anand Mr. P.
Slide 7: Business unit leaders having 125+ years of industry experience
… with business unit leaders having 125+ years of industry experience … Business Unit Heads Mr. Sriram Rangarajan1 Mr. Sachin Phartiyal Mr. Rajat Chopra Kitchen Appliances Home Electricals Pumps 26+ 2012 25+ 2018 30+ 1997 Mr. Shaleen Nayak Mr. Nitesh Mathur Mr. Anand Kumar N. Lighting New Business S
Slide 8: Functional leadership & expertise of 150+ years
… and functional leadership & expertise of 150+ years Functional Heads Mr. Sanjeev Agrawal Mr. Pravin Saraf Mr. Manoj Kumar Ms. Pragya Bijalwan Innovation & ESG Manufacturing & Quality Procurement Marketing 32+ 2019 30+ 2022 27+ 2023 19+ 2021 Mr. Kaleeswaran Arunachalam Mr. Prasanth Nair Mr. Vikram
Slide 9: We have a pan-India channel and manufacturing presence
We have a pan-India channel and manufacturing presence Pan India sales footprint (incl. Butterfly): 5 manufacturing locations 4.5k+ distributors, 175k+ retailers Vadodara (1) Baddi (2) Ahmednagar (1) Goa (2) Mumbai Mfg. plants 25 Branches (No. of units) 26 Warehouses Chennai1 (3) Innovation center 7
Slide 10: Market leadership in core categories, foray into new growth categories
We have reinforced market leadership in core categories, and forayed into new growth categories Home electricals Pumps Large domestic Fans Residential Non-residential1 appliances Market size (INR Cr) >11k >6k >3k >3.5k Lorem position ipsum #3-Geysers Market #1 #3-Coolers #1 Kitchen appliances Lighti
Slide 11: Strong financial performance in FY23
Strong financial performance in FY23, with industry leading EBITDA margins and strong cash generation Consolidated financials INR INR 11.2% 15% 1.2x 7.7x 6,870 Cr 476 Cr 3 yr. revenue Cash conversion Interest Revenue EBITDA margin PAT growth1 ratio2 coverage3 9 1. Revenue growth from FY20 to FY23, i
Slide 12: A leading consumer brand with multiple awards & achievements
Crompton: A leading consumer brand with multiple awards & achievements Corporate Fans leadership Innovation Brand recognition governance ETBrandDisruption Gold ET Brand Equity DigiPlus award Best Managed Companies award for tech driven iF Design Award To Crompton and our agency award by Deloitte cam
Slide 13: Poised for Crompton 2.0
Poised for Crompton 2.0 11
Slide 14: Key wins & pillars of strength
Key wins & pillars of strength Pole position Successful foray Innovation Extensive Cash flow in the core into the kitchen engine at scale pan-India leadership (Fans & Pumps) segment distribution 12
Slide 15: Mega trends are creating tailwinds for consumer consumption
Mega trends are creating tailwinds for consumer consumption Macro-economic trends in India Government of India initiatives Increasing Growing per Accelerated Cooking gas: urbanization capita income electrification Increase in coverage Increasing share of Rising focus on Potable water Development of
Slide 16: Industry evolving rapidly, multiple opportunities for growth
…industry also evolving rapidly, we see multiple opportunities for growth Multi-category Move towards Bespoke GTM presence by omnichannel models & D2C sales companies Consumers Shortened cycle Continuous willing to pay from consumer disruptions premium for insights to and multiple differentiated pro
Slide 17: Crompton 2.0: Key tenets to drive future growth
Crompton 2.0: Key tenets to drive future growth Crompton 2.0 Enabled & empowered organization Crompton 1.0 Consumer need led innovation Pole position in core categories Premiumization of the portfolio XXXX Successful foray into the kitchen Supply chain excellence (quality, cost) Innovation capabilit
Slide 18: Organization structure revamped to drive company objectives
Organization structure revamped to drive company Empowered Organization objectives New organization structure Key org. structure changes BUs clustered basis common 1 segments Managing Director & CEO New BU created for strategic 2 initiatives Business Units Sales & GTM excellence team Home Pumps: Kit
Slide 19: Firmly embedding innovation at the center of growth agenda
Consumer-centric Firmly embedding innovation at the center of growth agenda innovation Innovation center setup Innovations rolled out Partnerships Quiet Pro Chimney Silent Pro Blossom Smart Partnering with IITs, startups & 80 160+ accelerators Smart Investment Innovation Pumps (INR Cr) per annum tea
Slide 20: Diversification in GTM channels enabled by technology
GTM excellence Diversification in GTM channels enabled by technology e Grow existing Reach Channel channels expansion (Trade) engagement Leverage new Institutional Modern Ecommerce channels channel Retail Build future D2C & Export ready channels Omnichannel build markets 18
Slide 21: Focus areas for supply chain excellence
Operational Focus areas for supply chain excellence excellence Sustainability across Manufacturing supply chain excellence Supply chain excellence Continual quality Network strategy Improvement 19
Slide 22: Project Unnati to continue driving cost excellence
Operational Project Unnati to continue driving cost excellence excellence Ongoing VAVE1 & Reinvest savings from commercial initiatives new areas into growth Fans: Cost & Drive Butterfly-Crompton synergy: energy Increase utilization of effectiveness Butterfly manufacturing assets & consolidate vendor
Slide 23: Digitization to improve experience and efficiency for all stakeholders
Digitization to improve experience and efficiency for all the Digitization stakeholders of the organization New Product Consumer Customer Manufacturing Employees Development Improved digital Channel partner Agility & Agile Enhanced consumer connect and innovation in manufacturing employee experience
Slide 24: Fans: Consolidate leadership through portfolio premiumization
Fans | Consolidate leadership through portfolio Portfolio deep-dive premiumization Category landscape Growth levers Market statistics Strengthen the core & increase share in premium segments >11k >7% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Greater Bolster GTM FY 18-23 Mkt. CAGR innovation & leade
Slide 25: Large domestic appliances: Reach, range expansion to drive growth
Large domestic appliances | Reach, range expansion to drive Portfolio deep-dive growth Category landscape Growth levers Market statistics Continue to drive market leading growth >6k ~5% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Leverage Range FY 18-23 Mkt. CAGR synergy in Further build expansion th
Slide 26: Pumps: Consolidate leadership in residential, expand agricultural
Pumps | Consolidate leadership in residential pumps, expand Portfolio deep-dive agricultural pumps portfolio Category landscape Growth levers Market statistics Redefine brand position & increase agri-footprint >7k ~1% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Residential: Agricultural: Solar and FY
Slide 27: Post acquisition, Butterfly outperforming industry in growth & profits
Post acquisition, Butterfly outperforming industry in growth Portfolio deep-dive & profits with future focus on revenue synergies ..to increase EBITDA by 2x in FY23 Multiple initiatives taken in FY23.. (industry flat) Industry Butterfly Ownership transition completed performance1 performance De-risk
Slide 28: Small domestic appliances: Focus on synergies between Crompton and Butterfly
Small domestic appliances | Focus on synergies between Portfolio deep-dive Crompton and Butterfly Category landscape Growth levers Market statistics Leverage mutual strengths to grow market position & reach ~20k >10% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Enhance brand FY 18-23 Mkt. CAGR Define
Slide 29: Large kitchen appliances: Foray led by differentiated product offering
Large kitchen appliances | Foray led by differentiated product Portfolio deep-dive offering – annual revenue run rate of INR ~60cr Category landscape Growth levers Market statistics Expand category through continued product differentiation >5k ~10% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR FY 18-23
Slide 30: Lighting: Business transformation to drive growth
Lighting | Business transformation to drive growth Portfolio deep-dive Category landscape Growth levers Market statistics Growth led by product & execution excellence ~15k ~7% FY23 Mkt. size (INR Cr) FY 18-23 Mkt. CAGR Product Focused GTM Range FY 18-23 Mkt. CAGR innovation & & sales expansion impro
Slide 31: Thoughtfully diversifying into new categories
We will continue our journey of thoughtfully diversifying into Portfolio deep-dive new categories Non-exhaustive Multiple potential plays; to be evaluated for whitespaces and synergies Core Switches 8k Switch gear 4k Wires and Cables 55k Adjacency Core Air purifier 0.8k Water purifier 6k Vacuum clea
Slide 32: ESG will continue to be a focus area for Crompton
ESG will continue to be a focus area for Crompton Independent Board-led and professionally managed company Board-led ESG committee Embedded sustainability initiatives Consistent dividend payout ratio: 40% for FY23 Integrated annual reporting CSR – responsible growth 30
Slide 33: Priorities for next 2 quarters
Priorities for next 2 quarters Empower Crompton & Roll-out Put Lighting Develop long- Expand cost Legal2 and and engage Butterfly integrated BU back on term strategic excellence operational people for synergies: new product growth path manufacturing project1 integration Crompton 2.0 Brand introducti
Slide 34: Strategic tenets for a future-ready Crompton
Strategic tenets for a future-ready Crompton Crompton 2.0: Accelerated growth at healthy margins to deliver strong TSR Protect and grow Transform Foray into new Win in the Kitchen the core Lighting business segments • Fans: Strengthen the core & • Small domestic appliances: • Product innovation & •
Slide 35: Registered Office and contact details
Registered Office: Crompton Greaves Consumer Electricals Limited, Equinox Business Park, 1st Floor, Tower 3, LBS Marg, Kurla (W), Mumbai - 400070, Maharashtra, India +91 22 6167 8499 For any query, please write us at: crompton.investorrelations@crompton.co.in Connect with us on www.crompton.co.in 33
Slide 36: Abbreviations
Abbreviations Abbreviation Full form Abbreviation Full form B2B Business to Business ESG Environmental, Social, and Governance B2C Business to Consumer GSSH Group Sales and Services Head B2G Business to Government GM Gross Margin BLDC Brushless Direct Current GTM Go To Market BU Business Unit CAGR C
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