Century Plyboards (india) Ltd. · NSE:CENTURYPLY

Century Plyboards (india) — Century Plyboards (I) — Investor Presentation (2014)

44 slides from Century Plyboards (india)'s investor presentation, 2014

1. Slide 1: Century Plyboards (I) Limited Investor Presentation 2014

   CENTURY PLYBOARDS (I) LIMITED INVESTOR PRESENTATION, 2014 1

2. Slide 2: A Quick Word About Century

   A Quick Word About Century  Incorporated in the year 1982  Listed on the NSE and BSE. Present Market Cap over Rs. 1300 cr  India’s leading plywood manufacturing company with six manufacturing units in India and one in Myanmar.  India plants: Haryana (North), Tamil Nadu (South), West Bengal (East

3. Slide 3: A Quick Word About Promoters - 1

   A Quick Word About Promoters - 1  Promoted by first-generation promoters; professionally owned by 5 unrelated promoters  Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal are key promoters  Widely-owned promoter holdings: Promoter groups consist of five non- related groups.  Mr. Vishnu Khemani, Mr. Pre

4. Slide 4: A Quick Word About Promoters - 2

   A Quick Word About Promoters - 2  All promoters are actively involved in day-to-day management under the leadership of Mr. Sajjan Bhajanka  Mr. Sajjan Bhajanka is considered as an industry icon  Mr. Sajjan Bhajanka is the President of Federation of Indian Plywood & Panel Industry and All India Ve

5. Slide 5: Our People

   Our People  Century is a professionally managed company  Over 5500 employees  Cordial relations; zero manpower loss  Highest per man productivity in industry Core team` Name Designation Qualification Experience Past employer Ajay Baldawa (57) Head (Technical) M. Tech (IIT) 30 Sarda Plywood Arun

6. Slide 6: Century: Capital Evolution - 1

   Century: Capital Evolution - 1  Investor friendly: Nearly 6000% capital appreciation to investors since IPO (1997-98) in addition to uninterrupted dividend  Company floated IPO in 1997-98; raised Rs. 7.37 cr by issuing 36.83 lac shares of Rs.10 each at a premium of Rs. 10  Came out with a rights

7. Slide 7: Century: Capital Evolution - 2

   Century: Capital Evolution - 2 Date Event No FV Rs. Issue Rs. Rs.Crores Rs.Crores 1982-1993 Initial shares to promoters 240100 10 10 0.24 0.24 Merger of Ramkrishna Veneer 93110 10 - 0.09 - 31.03.1994 05.01.1996 Bonus Issue 3 for 1 held 999630 10 - 1.00 - Maiden Public Issue Rs.10 3683040 10 20 3.68

8. Slide 8: Century: Robust Growth

   Century: Robust Growth Rs. in crores 2003-04 2013-14 CAGR % TOTAL INCOME 124.55 1293.45 26.37% EBIDTA 11.27 157.66 30.19% Cash Profit 10.45 102.55 25.66% EBIT 9.84 124.42 28.88% PBT 9.01 69.30 22.63% PAT 7.31 66.94 24.79% TOTAL FIXED ASSETS 22.79 230.73 26.05% TOTAL CAPITAL EMPLOYED 54.75 641.99 27.

9. Slide 9: Century: The Brand - 1

   Century: The Brand - 1  Century Ply is India’s leading plywood brand (highest turnover)  Other brands are Sainik Ply, Sharon Ply and Nesta Furniture  Among India’s 100 most valuable brands (ICMR and 4Ps B&M survey)  One of nation’s top 200 Power Brands – ‘Legacy’, ‘Recall’ & ‘Trust’  Acknowledg

10. Slide 10: Century: The Brand - 2

    Century: The Brand - 2  25 years old – the competitive survivor  Enduring recall of ‘innovation’, ‘premium’ and ‘protection’  Annual brand investment 4 per cent of turnover  Aggregate brand investment of Rs 224 cr. in the last decade  Commands price premium over peers 10

11. Slide 11: Century: The Product

    Century: The Product  Manufacturer of all variants of plywood, decorative veneer, laminate and pre-lam boards  Product quality superior than industry average  5% premium over nearest brand; 20% over un-organised products  Quality defined by endurance and borer-resistance  Glue-lined protection

12. Slide 12: Business Overview

    Business Overview Plywood Laminates  India’s leading plywood manufacturer  Among India’s top three laminate manufacturers  Pan-India: six manufacturing facilities spread over all parts of India  Focus on Niche Segment  Overseas: one in Myanmar  Capacity 4.8 mn sheets with short cycle pre- lami

13. Slide 13: Revenue Mix

    Revenue Mix Revenue mix table EBIDTA mix table with EBIT mix table with with pie chart pie chart pie chart (2013-14) (2013-14) (2013-14) 13

14. Slide 14: Plywood

    PLYWOOD 14

15. Slide 15: Plywood: Market

    Plywood: Market  Indian Plywood and Panel market is estimated to be Rs 15000 cr  Market divided into organized (branded) and unorganized sectors. Unorganized sector dominating with higher market share of 70%  Rs 4500 cr organized market dominated by two national players  Century dominate with al

16. Slide 16: Plywood: Growing Organized Sector

    Plywood: Growing Organized Sector  Unorganized sector dominated due to high excise duty and sales tax regime  Reasons for growth of organized sector Reduction of excise duty from 16% (2006) to 8% ( now 12%) Introduction of VAT regime Brand and Quality awareness Economy of Scale Introduction of GST

17. Slide 17: Plywood: Growth Drivers

    Plywood: Growth Drivers  Growing Real Estate and Construction Sector  Rising Per Capita Income  Urbanization  Spread of education and growing employment opportunities  Increased affordability  Reduced home renovation cycle from around 15 years to 5 years  Affordable Housing Loans ( EMI equal

18. Slide 18: Plywood: Challenges

    Plywood: Challenges  Raw- Material ; Industry require both matured and short cycle timber.  In India short cycle timber is grown as agro-forestry and available, but cutting of matured timber not allowed or subject to strignent regulations  Industry is heavily dependent on import of matured timber

19. Slide 19: Plywood: Century Position

    Plywood: Century Position  Century Ply is India’s largest and leading plywood company  Century Ply is most preferred and respectable brand  Century Ply is first to introduce seven year guarantee (not warranty) for plywood  Century Ply is first to introduce Glue Lined Protection (GLP) technology,

20. Slide 20: Plywood: The Great Indian Opportunity

    Plywood: The Great Indian Opportunity  Larger segment in the world’s second largest consumer market relatively unexplored  69% of Indian population (rural) consumes only 8-10% of India’s plywood. Prospective rural boom yet to be factored in  Industry grew 15% (by value) during challenging FY14 –

21. Slide 21: Century: Profitable Business Engine

    Century: Profitable Business Engine  Capital cost of Rs 41 cr for 31000 cbm /annum plywood plant (Kandla)  Rs 200 cr of projected annual sales from this plant in a full year  Projected payback less than 24 months, attractively for a mature business  Large volumes, high entry barriers, attractive

22. Slide 22: Laminate

    LAMINATE 22

23. Slide 23: Growing Laminate Exposure

    Growing Laminate Exposure  We are India’s third largest laminate producer  Accounted for 19 % of Century revenues, FY14  Perceived as India’s best quality laminate brand  Addressing niche segment  Adding almost 100 SKUs per year to existing folder of 700  Supported RDC-based distribution to en

24. Slide 24: Logistics

    LOGISTICS CFS OPERATION 24

25. Slide 25: Century: Logistics

    Century: Logistics  Running two container freight stations near Kolkata Port. Area 1 lac sqm.  First privately owned CFS of eastern India  Complete new facilities with state of art technology , compared to peers  RFID/GPS/GPRS based container tracking system  Commissioned operations in the year

26. Slide 26: Others

    OTHERS 26

27. Slide 27: Century: Other Businesses

    Century: Other Businesses  Mainly furniture and trading of plywood related chemicals  Aegis Business Limited (51% Subsidiary) own and run a super max vessel on time charter basis  Entered furniture business in 2012 with two pilot retail show-rooms at Kolkata and Bangalore.  Recently introduced m

28. Slide 28: Century Competitive Advantages

    CENTURY Competitive Advantages 28

29. Slide 29: Century: Leader of Market

    Century: Leader of Market  India’s leading plywood producer with highest volume and revenue  India’s 3rd largest laminate producer catering to niche segment  Six pan-India units; highest in sector  Units in all parts of Country addressing specific zone  Plants leveraging raw material and market

30. Slide 30: Century: Economies of Scale

    Century: Economies of Scale  Largest plywood installed capacity in India: 210,000 cbm  Kolkata unit largest standalone unit in India  Added two units in FY14 (Gujarat and Myanmar)  Capital cost per cbm around Rs 10,000 (Prevailing ind. avg. Rs 13,000)  Largest single Indian timber buyer – econo

31. Slide 31: Century: Retail-driven business model

    Century: Retail-driven business model  90% of production marketed through retail network  10% marketed to OEM network  High retail loyalty; resistance to price erosion; wider customer attrition de-risking  Positive correlation between branding and realizations  Also focusing on e-marketing  Re

32. Slide 32: Century: The Solid Dealer Network

    Century: The Solid Dealer Network  Increase in dealers from 1450 (2008] to 5000(FY14)  Dealers in almost every Indian city / town with 1 lac population  Most of dealers associated with the company since inception  Almost all dealers financially sound . Negligible Bad Debt  Working with plan to

33. Slide 33: Marketing Initiatives & Strategy 2015

    Century: Marketing Initiatives & Strategy 2015  New Marketing team of Senior Management Roles of LOB Head. Each one with 20+ experience and from premiere Business Schools  200+ new recruits in frontline sales force to augment business plan  IT focus to automate sales force and CRM  Aggressive pl

34. Slide 34: 34

    34

35. Slide 35: Century: Segment Wise Results

    Century: Segment Wise Results PLYWOOD LAMINATES CFS OTHERS TOTAL 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 REVENUE Net Sales 964.84 826.12 236.69 210.86 52.22 55.85 22.29 31.50 1,276.04 1,124.33 Operating Incomes 1.40 1.93 5.78 4.19 0.74 0.69 0.01 0.01 7.93 6.82

36. Slide 36: Century: Balance Sheet

    Century: Balance Sheet 2013 2014 Share Capital 22.25 22.25 Reserves & Surplus 227.42 269.16 Net Worth 249.67 291.41 Long Term Debt 155.66 117.98 Short Term Debt (Bank CC) 10.48 113.98 Buyers’ Credit 278.78 213.91 Total 694.59 737.28 Fixed Assets 221.68 230.73 Investments 15.62 37.89 Current Assets -

37. Slide 37: Century: Higher Fiscal Efficiency

    Century: Higher Fiscal Efficiency  Solid Balance Sheet  Asset Light business  Low gearing  High ROE  Stable Profitability 37

38. Slide 38: Century: Opportunities

    Century: Opportunities  New plants with unutilized space; high operating leverage  Quick capacity commissioning capabilities; three months for brown-field and six months for green-field  Strengthening rupee; lower raw material costs; higher margin possibilities  40% capacity increase to come int

39. Slide 39: Century's Competitive Advantage Summary

    Century’s Competitive Advantage Summary  Enduring brand  Retail-driven business  Superior product  Attractive financials  Established market leadership  Strengthening fiscal efficiency  Expansive dealer coverage  Investing in sales competence  Economies of scale  Strengthening HR capabilit

40. Slide 40: Century Game Changer

    Century Game Changer 40

41. Slide 41: Gamechangers in India

    Gamechangers in India  New government, fresh optimism  Stronger rupee  Housing sector push (especially LIG )  GST implementation optimism  High apartment inventory to be progressively liquidated  Increased hospitality, healthcare and government spending 41

42. Slide 42: Gamechangers at Century

    Gamechangers at Century  Adequate raw material security  Projected forex gain against Forex loss in FY 14  First mover advantage at Myanmar  Unaffected by Myanmar timber export ban  In Myanmar all tax exemptions for 6 years with timber supply assurance  Recent Capacity expansions can take care

43. Slide 43: Safe Harbor

    Safe Harbor Thispresentationandtheaccompanyingslides(the“Presentation”),whichhavebeenpreparedbyCenturyPlyboards(I)Ltd.(the“Co mpany”),havebeenpreparedsolelyforinformationpurposesanddonotconstituteanyoffer,recommendationorinvitationtopurc haseorsubscribeforanysecurities,andshallnotformthebasisorberel

44. Slide 44: Thank You

    THANK YOU For further information : Arun Julasaria 91-9830292192 arun@centuryply.com 44

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