Kamdhenu Limited · NSE:KAMDHENU
Kamdhenu — Investor Presentation (August 2021)
40 slides from Kamdhenu's investor presentation, Aug 9, 2021
Slide 1: Cover letter to stock exchanges
9th August, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relationship Department Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Bandra (E), Mumbai - 400 051. Mumbai- 400001 Symbol: KAMDHENU Scrip Code: 532741 Subject: Investo
Slide 2: Investors Presentation August 2021
KAMDHENU LIMITED Investors Presentation August 2021
Slide 3: Company Overview
Company Overview Brand Turnover Rs. 12,000+ Crores in FY21 Rs. 10,800+ Crores in FY20 India's Leading Company dealing KAMDHENU is Largest Kamdhenu Paints - COLOUR with Manufacturing, TMT selling brand in India, in DREAMZ amongst top Distribution, Marketing the Retail Segment decorative paint brands
Slide 4: Sustainable Growth through Creation of Brand 'KAMDHENU'
Sustainable Growth through Creation of Brand ‘KAMDHENU’ Pioneer In Having started as a single unit in Bhiwadi, Rajasthan in 1995, Kamdhenu has evolved into a steel Franchising Model in conglomerate, pioneering the franchise led manufacturing model to focus on their core Brand Turnover Steel competen
Slide 5: Our Journey
Our Journey 1994-2000 2001-2005 2006-2010 2011-2015 2016-2017 2018-2020 2021 ▪ 2018 – Board ▪ Filed draft scheme ▪ 1994 - ▪ 2004- Innovated ▪ 2013- Launched ▪ 2016- Name ▪ 2006 - IPO – Listed recommended to of arrangement with Incorporation of franchisee business Kamdhenu SS10000 Changed from at NSE
Slide 6: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu – Nxt TMT Kamdhenu – PAS 10000 Next Generation Interlock Steel and has Unique Rib design which gives locking of 360 TMT Bars are thermo-mechanically- got the angular double rib design degree. Its alloy gives it better rust-pro
Slide 7: Awards & Acknowledgements
Awards & Acknowledgements Asia's Most Promising World's Greatest Brands World's Greatest Brands Brand 2015-16 by World Indian Power Brand 2016 2017-18 amongst Asia & 2015 amongst Asia & GCC Consulting & Research Award GCC for Steel as well as Corporation Paints Division 6
Slide 8: Strong Thrust on Advertising & Promotion Spends
Strong Thrust on Advertising & Promotion Spends Notable Celebrity Affiliations ‘TARGET KA BADSHAH’ – Mega Paints Event for Dealer & Distributor Awards ▪ Award functions and cultural events on annual basis Preity G Zinta Emraan Hashmi Madhuri Dixit Kanika Kapoor Tapsee Pannu ▪ Notable celebrity affil
Slide 9: Brand Promotions – Print, Outdoor Media
Brand Promotions – Print, Outdoor Media Medium Partner Newspapers National Newspapers Print Media Regional Newspapers Rajasthan Patrika (Jansatta) (Punjab Kesari) Outdoor Campaigns Kamodual Luxury – ‘Luxury Ka Double Dose’ ➢ Social media campaigns to educate consumers about benefit of its products ➢
Slide 10: Experienced Board of Directors
Experienced Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Managing Director Whole Time Director Whole Time Director Whole Time Director Mr. Ramesh Chand Surana Mr. Ramesh Chandra Jain Mr. Madhusudan Agrawal Mrs. Nishal Jain Mr.
Slide 11: Business Update
Business Update Campaign for Vaccination Awareness Business Operations: Update for Q1FY22 ▪ Company created awareness about vaccination and motivated employees and did tie up with hospitals for vaccination of 1000+ employees including contract employees • Production is ramping up month on month basi
Slide 12: Steel Business
Steel Business
Slide 13: India's Largest Branded TMT Bars Player
India’s Largest Branded TMT Bars Player Converted steel commodity into branded product becoming India’s BRAND Largest TMT Steel Bars brand (Thermo Mechanically Treated) with in- house capacity of 120,000 MT p.a. * State-of-the-art Tempcore Technology from CRM, Belgium KAMDHENU PAS 10000 44 Franchise
Slide 14: Pan-India Decentralized Manufacturing
Pan-India Decentralized Manufacturing Decentralized Outsourced Manufacturing Model ▪ Communication : Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer ▪ Low
Slide 15: Asset Light Business Model…
Asset Light Business Model… BRAND LEADERSHIP in STEEL RETAIL Kamdhenu Group Innovator – We do Research and Hierarchy of Marketing Network introduce new products based on Customer Requirement in the Market Every franchisee is allowed to sell its product in a particular region which is its designated
Slide 16: …Creates Long-term Sustainability
…Creates Long-term Sustainability Benefits to Kamdhenu Win–Win for Franchises Expertise & Experience Quality Assurance Easy availability of product in all Enhanced revenue and increase in Provide franchise units with Assurance of quality from parts of the country Profitability due to Royalty earned
Slide 17: Huge Capacities at ZERO Capex
Huge Capacities at ZERO Capex Manufacturing Capacities - Franchisees Company Owned - Manufacturing, R&D and T&D Steel Division : Bhiwadi Production Capacity : ▪ Production Capacity 156,000 MT per annum (Realigned to 120,000 MT ▪ Steel Rebars – 38 Lacs MT per annum to support the future innovation, p
Slide 18: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Description Special Contours End-user Industries Advantages ▪ One such product which ▪ Angles ▪ Industrial structures, ▪ High Strength and High continues to pioneer new ▪ Channels flyovers, bridges, dams, Ductility innovations ▪ Beams transmission line towe
Slide 19: Core Steel TMT Business
Core Steel TMT Business Revenue Break Up Royalty Income through Own Manufacturing Return on Capital Employed (ROCE) Debt to Equity Ratio Franchisee Sales CoVID-19 impact CoVID-19 impact +970 bps 0.6 85.3 88.0* 80.4 29.7% 25.1% 24.4% 22.9% 0.4 20.0% 0.3 0.3 35.8* 24.4 21.5 0.2 18.9 14.7 Q1 FY19 Q1 FY
Slide 20: Strong Growth Outlook in Steel Business
Strong Growth Outlook in Steel Business Increased Capacity TMT Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 38 12,031 85 CAGR +12% CAGR +14% CAGR +18% 11 3,759 8 16 1,808 8 2007 2012 2021 2007 2012 2021 2007 2012 2021 50 Lakh Rs.22,000 cr Rs. 150 crs Metric Tonne by FY23-
Slide 21: Paints Business
KAMODUAL LAVERY ESILLSION Paints Business
Slide 22: Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment
Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment Revenue Growth of ~6x Inception Kamdhenu Paints – COLOUR DREAMZ SKUs +432% 2008 set up its own unit for 202 manufacturing of decorative Paints 40+ SKUs across 10+ product under its flagship brand categories 38 Rs cr Market Position
Slide 23: Extensive Product Portfolio
Extensive Product Portfolio Emulsions Primers Type Premium Regular Type Premium Regular Water Based Exterior Kamo Dual Primer Kamo Sealer Weather Weather Kamo Supreme Classic Shield Solvent Based Wood Primer Red Oxide Universal Primer (ST) Kamo Hi Shine Velvety Sheen & Shine Interior Distempers Dist
Slide 24: Extensive Product Portfolio
Extensive Product Portfolio Stainers, Specialty and Other Coatings Construction Chemicals Kamoproof ALW Designer & Kamocrete CRP WATER PROOFING Kamo Super Concrete Repair COMPOUND FOR Textured Paints Mettalica Product CEMENT MORTAR AND CONCRETE Wall Putty NC Lacquer Melamine Kamoplast Wall Putty Kam
Slide 25: Niche Products with High Potential
Niche Products with High Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer ➢ Kamwood Premium Wood finishes ➢ Our specialized water proofing ➢ Kamo Floor Coat (KFC) is a ➢ It's a unique primer which can be works to protect and decorate solutions are an aid to the specializ
Slide 26: Signed Preity G Zinta as Brand Ambassador
Signed Bollywood Celebrity & Entrepreneur Preity G Zinta as Brand Ambassador Signed ace Bollywood celebrity and entrepreneur, Preity G Zinta as Brand Ambassador for decorative paints business under the brand name KAMDHENU PAINTS This collaboration will help enhance the brand’s pan-India reach and re
Slide 27: Focused on Premiumization of Portfolio
Focused on Premiumization of Portfolio Revenue Breakup Average Selling price per KG/Ltr FY10 FY15 FY21 9% +70% 21% 22% 11% 63 58 53% 58% 37 26% 20% 80% Water Based Products Powder Based Products Solvent Based Products FY10 FY15 FY21 With renewed focus on premium After having achieved rapid growth an
Slide 28: Well-Entrenched and Highly Incentivised Dealer Network
Well-Entrenched and Highly Incentivised Dealer Network Dealers Revenue Split (FY21) Dealer Split (FY21) ➢ Kamdhenu’s sales are more 10% 8% 10% +24% 15% concentrated in North & East 7% India owing to a denser older 4,013 dealer base in the region 3,230 11% 202 cr 38% 4,013 ➢ The current dealer propor
Slide 29: Prominence in India's Emerging Cities
Prominence in India’s Emerging Cities Prominence in Tier I, II & III Cities through 33 Sales Depots Focused strategy to set base in the smaller Indian towns identifying an ~70% of India’s urban population underserved gap in the paint industry resides in Tier II & III cities, where majority of Kamdhe
Slide 30: State-of-the-art Manufacturing Facilities & Infrastructure
State-of-the-art Manufacturing Facilities & Infrastructure Manufacturing Facilities – Quick Facts Robust Tinting Infrastructure Production Capacity Revenue Potential ➢ 1,600+ tinting machines installed at dealer outlets to make wide range of shades Facilities (in KL) (Rs cr) by mixing Colorant from
Slide 31: Growth Strategies & Next 5-yr Vision
Growth Strategies & Next 5-yr Vision Urbanisation & Rising Disposable Incomes Rapid Revenue Growth Potential with Margin Expansion Revenue (Rs cr) EBITDA Margin (%) Premiumization of Portfolio 11% +38% 1,000 8% Increasing Density of Dealer Network 450 Aggressive Investments into 202^ Building Brand
Slide 32: Scheme of Arrangement
Scheme of Arrangement Rationale for Proposed Demerger ➢ Better management focus & operational flexibility and facilitate businesses to independently pursue their growth plans through organic / inorganic KAY2 STEEL LTD means ➢ Enable both companies to raise necessary funds, invite strategic investors
Slide 33: Overall Financials
Weather © SUPREME - 5 a é S i < = Overall Financials
Slide 34: Quarterly Result Trend
Quarterly Result Trend Revenues from Operations PAT (Rs. In Crores) EBIDTA (Rs. In Crores) (Rs. In Crores) 2nd Wave Lockdown 2nd Wave Lockdown 2nd Wave Lockdown COVID Impact COVID Impact COVID Impact impact 399.8 14.6 5.9 6.1 impact impact 13.7 5.6 11.6 214.0 6.9 145.9 83.3 1.4 Q1 FY19 Q1 FY20^ Q1 F
Slide 35: Q1 FY22 - Statement of Profit & Loss
Q1 FY22 - Statement of Profit & Loss Particulars (Rs. Crs.) Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q FY21 Net Revenue from Operations^ 145.9 83.3 75% 222.4 -34% 625.2 Cost of Material Consumed 91.3 32.3 141.7 350.5 Purchase of Stock-in-Trade 14.1 10.7 20.6 67.5 Change in Inventories -7.4 8.6 -6.4 11.0 To
Slide 36: Balance Sheet as on 31st March, 2021
Balance Sheet as on 31st March, 2021 Particulars (Rs. Crs.) Mar 2021 Mar 2020 Particulars (Rs. Crs.) Mar 2021 Mar 2020 Equity Share Capital 26.9 26.5 Non Current assets Property, Plant and Equipment's 85.8 79.4 Other Equity 167.8 154.2 Capital Work in Process 0.8 1.1 Total Equity 194.8 180.7 Right o
Slide 37: Cash Flow Statement as on 31st March, 2021
Cash Flow Statement as on 31st March,2021 Particulars (Rs. Crs.) Mar-21 Mar-20 Net Profit Before Tax 21.0 -0.4 Adjustments for: Non Cash / Other Items 32.6 24.4 Operating profit before working capital changes 53.5 24.0 Changes in working capital 2.7 -24.9 Cash generated from operations 56.2 -1.0 Dir
Slide 38: Consistent Financial Performance
Consistent Financial Performance On Standalone Basis Revenue Breakup - FY13 EBIT PBT (Excl. Exceptional Item) PAT** 33% +154% +370% +370% 44.6 548 cr 31.0 22.6 67% 17.6 6.6 4.8 Steel Paints FY13 FY21 FY13 FY21 FY13 FY21 **Adjusted PAT for Exceptional Items & Tax calculated at normal tax rate after a
Slide 39: Historical Profit & Loss Trend
Historical Profit & Loss Trend Particulars (Rs. Crs) FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 Revenue 625.2^ 923.8^ 1,232.4 1,179.8 824.9 841.2 968.0 921.7 547.5 Total Raw Material Cost 428.9 710.5 972.9 968.8 634.8 667.8 821.9 793.8 427.8 Employee Expenses 48.0 50.2 47.2 40.5 34.0 30.9 24.1 21.
Slide 40: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu Limited For further Information, please contact : (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to