Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (July 2023)
47 slides from Kansai Nerolac Paints's investor presentation, July 2023
Slide 1: Corporate Presentation
Corporate Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 2: Fact Sheet
Fact Sheet Ownership Founded Market Position Subsidiary of 1920 One of India’s largest Kansai Paint Co., Paint company: Leader Ltd., Japan in industrial paints Net Revenue(₹) PBT (₹) Mar. Cap. (₹) (FY23 – standalone) (FY 23 – standalone) (31st March 2023) 7081 Cr 650 Cr 20,802 Cr
Slide 3: Indian Paint Industry
Indian Paint Industry Size • Over Rs 70,000 Cr (USD 8 Billion approx.) Growth Rates • Double digit since 1991 Organized : Un-organized Market • 75:25 Per Capita consumption • ~4 kg (Global average @12-15 kg) July 2023
Slide 4: History of KNPL
History of KNPL 2020 Unveiled the new corporate 1920 2000 2006 identity of Nerolac- Colours Company Name changed to Kansai that Care Started as Gahagan Paints and Varnish Co Ltd. with factory at implements SAP ERP Nerolac Paints Ltd. with a Lower Parel across all locations new logo 2000 Tata Group d
Slide 5: Shareholding Pattern
Shareholding Pattern Shareholding Pattern as on March 31, 2023 8.31% KPJ 16.70% Institutional Non Institutional 74.99% July 2023
Slide 6: Our Heritage – Kansai Paint Co., Ltd., Japan
Our Heritage – Kansai Paint Co., Ltd., Japan Gross Sales over 3.9 Billion USD Japan’s 2nd Largest Net Sales Bn Yen (Consolidated) 550 Paint Company 509 500 450 427 419 407 Technical and 400 innovation Leader 9th Largest Paint 365 in Automobile and Company Globally 350 Industrial Coatings 300 250 18-
Slide 7: Technology tie-ups
Technology tie-ups Japan Japan Cashew Tsusho Oshima Kogyo Auto Paint – Plastic Heat Resistant Paints Canada Turkey Protech Oxyplast Europe Altan Boya Sanayi A S Powder Coating Helios July 2023
Slide 8: Our Foot-Print
Our Foot-Print Manufacturing Footprint Our strategic footprint spans the country with a manufacturing presence in India encompassing 8 facilities and 1 subsidiary. This geographical distribution empowers us to effectively meet the diverse requirements of our customers across various regions Distribu
Slide 9: Corporate Profile
Corporate Profile Our Brand Expression: PAINT+ is a testament to our commitment to offer world class products with added features. The “+” represents our promise to provide products that go beyond standard market offerings. It exemplifies our dedication to leverage our Japanese expertise and legacy
Slide 10: Overview of our Performance
Overview of our Performance Sales in Rs Crores PBDIT in Rs Crores 8000 900 844* 7081 788 794 7000 800 742 5949 700 648* 6000 5174 5006 4771 600 5000 500 4000 400 3000 300 2000 200 1000 100 0 0 18-19 19-20 20-21 21-22 22-23 18-19 19-20 20-21 21-22 22-23 * before exceptional items Return on Capital Em
Slide 11: Overview of our Performance
Overview of our Performance Earnings Per Share(₹) Dividend (%) 12 600 525* 9.9 9.9 10 9.0 500 8.7 8 7.0 400 315 6 300 260 270 225 4 200 2 100 0 0 18-19 19-20 20-21 21-22 22-23 18-19 19-20 20-21 21-22 22-23 * Includes special dividend Shareholders fund in Rs Crores Market Capitalization in Rs Crores
Slide 12: Overview of our Performance
Overview of our Performance Operating Cash Flow in Rs Crores 700 639 621 600 500 386 400 300 200 110 100 59 0 18-19 19-20 20-21 21-22 22-23 July 2023
Slide 13: Strategy
Strategy NEROLAC } ea DECORATIVE ‘Sg, DECORATIVE S) SUSTAINABILITY N io} BUSINESS V/s) BUSINESS don PEOPLE Y > Decarbonisation oS Paints > Resource use People centric approach =< SERVICES > Quality of life > Culture of innovation, > Unique to category products > Diversity collaboration & empowerment
Slide 14: Core Business
Core Business DECORATIVE OFFERINGS INDUSTRIAL COATINGS PERFORMANCE UNIQUE & INNOVATIVE PRODUCTS UNDISPUTED LEADERSHIP COATINGS We are constantly adding to our portfolio in lines with Leaders in Automotive Coatings in India and the evolving needs of customers across segments Customised solutions for
Slide 15: International Presence
International Presence Nepal › Operations Started in 2012 › Fastest growing company › 3rd biggest player in Nepal KNP Japan Private Limited (Nepal) Kansai Paints (Bangladesh) Limited Bangladesh › Acquired in 2018-19 › Diverse range of products in Decorative and Protective Kansai Paints Lanka coating
Slide 16: Decorative
Decorative Interior Emulsion Range Super Premium Premium Economy Impressions Impressions Beauty Gold Impression Beauty Gold Beauty Ceiling Beauty Beauty Little UHD HD Washable Kashmir Classic Emulsion Smooth Master Exterior Emulsion Range Super Premium Premium Economy Excel Mica Excel Mica Excel Eve
Slide 17: Decorative
Decorative Designer Range Thinner Impressions Impressions Impressions Wonderwood Ideaz Glitter Metallic 111 thinner Enamel Range TermiProtect PU Enamel Synthetic Satin Enamel TermiProtect 10 in 1 Enamel July 2023
Slide 18: Decorative
Decorative NXT Range Premium Excel Anti Peel Beauty Suraksha Plus+ Primer NXT NXT Smooth NXT NXT Primer Range Economy Excel Alkali Nerolac Zinc Ready mix Epoxy Primer Exterior (Putty cum primer Yellow Primer Primer Primer) July 2023
Slide 19: Soldier
Soldier Soldier Range Soldier Premium Soldier Popular Soldier Popular Soldier Interior Exterior Emulsion Exterior Emulsion Interior Emulsion Emulsion July 2023
Slide 20: Automotive
Automotive Customer Segments Product Line Up Cathodic Electro Deposition (CED) and Medium Solid, Thermal 3 Coat – 1 Bake High Acrylic Cathodic Electro Sprayed Aluminium Solids Low VOC System Deposition (ACED) (TSA) Polyester Primers High Mar Resistant Clear Super Durable Monocoat Metallics Coats Mon
Slide 21: Performance Coating - Liquid
Performance Coating - Liquid Customer Segments Product Line Up Polyurethane (PU) Chlorinated Rubber Primer and Top Epoxy Coatings Coatings Coats Alkyds – Primers Heat Resistant Zinc Rich Coatings Petroleum / Metal Industries Fertilizer Industries Cement Industry and Top Coats Coating Petrochemical P
Slide 22: Powder Coating
Powder Coating Customer Segments Product Line Up Epoxy Polyester Pure Polyester Epoxy Powder Powder Polyurethane Super Durable Light Fixtures Electrical Equipments Fans Auto Ancillary Heat Resistance Rebar Coatings, Powders, Pipe Coating Powder Bonded Metallic Powders Powders High Performance Anti-C
Slide 23: Wood Finish
Wood Finish KNPL has a complete range of products and are present in PU, Polyester, Melamine and NC Coatings. An extensive range of high-quality products for all kinds of wooden surface, veneers and MDF Wood Finish - NEROLAC ICRO A luxury range of ultra – premium wood finish range imported from Ital
Slide 24: Construction Chemicals - Nerolac Perma
Construction Chemicals - Nerolac Perma KNPL has an entire range of construction chemicals consisting of General waterproofing, General repairs, Tiling, Admixture, High end waterproofing, sealants, structural repairs, flooring, tile adhesive, industrial grouts and Waterproof putty Perma Tile Perma No
Slide 25: Adhesives - Nerofix
Adhesives - Nerofix An evolving range of woodworking adhesives developed after months of research and field trials to deliver superior results at optimum cost with a focus on “safe to use” for carpenters. KNPL has a complete range of products covering both white-based and rubber-based adhesives July
Slide 26: Auto Re-Finish
Auto Re-Finish An extensive range of high quality products to cater all segments in Auto Refinish. KNPL has developed a complete range of products catering to the Premium, Economy and Retail market After Market Repainting and Touch-up for Passenger Vehicles, Commercial Vehicles, Two- Wheelers, Three
Slide 27: Niche Industrial Markets
Niche Industrial Markets Railways Rebar Floor Coil Future Industrial Growth Drivers July 2023
Slide 28: Organizational Capabilities
Organizational Capabilities Manufacturing R&D IT & Digital People Prowess Prowess July 2023
Slide 29: Manufacturing Prowess
Manufacturing Prowess State-of-the-art technologies and Capex X Matrix Awards World Class Manufacturing modern digital solutions help to Projects Undertaken Systems achieve end to end automation. 316 Cr. 160+ 14 • MES (Manufacturing Execution System) Digital Platform Year Annual Capacity in mn Ltr •
Slide 30: R & D Prowess
R & D Prowess R&D Spend Innovation and Technical New Products Launched Number of patents in FY 22-23 sessions held in different in FY 22-23 filed in FY 22-23 Forums in FY 22-23 ₹ 40.4 Cr. 138 64 2 R&D Centre Technical Collaborations • Building a Future Ready • Key Technology partner: Kansai Paints C
Slide 31: R & D Prowess
R & D Prowess Leadership in Decorative Emerging Areas of Focus Leadership in Industrial • Introduced product with Extended • The Company is now focussing its • The Company is a leader in Industrial service life in Exterior emulsions with a efforts on business opportunity areas Coatings and has pione
Slide 32: IT
IT ERP Supply Chain CRM Dealer Portal Ariba Vendor Portal EHS HR Analytics Engine IoT, Predictive analytics, ML(SAP Leonardo), RPA Cloud (Office 365 Platform), Top Level Security Infrastructure, Collaboration Tools (Teams) Completely IT Enabled Business running on SAP HANA (Early Adopters of New Tec
Slide 33: Decorative Digital Ecosystem
Decorative Digital Ecosystem Dealer B2B Influencers Financial Sales Institution Team Connected Digital Ecosystem Extended External Sales websites Team Tools Consumer Social July 2023
Slide 34: Embed Digital
EMBED DIGITAL CREATE DIGITAL ASSETS VISION INCORPORATE DATA & INFO WITHIN & OUTSIDE AUTOMATION & CONTROL VISION AUTOMATE FOR AVAILABILITY & RELIABILITY INTELLIGENCE LAYER VISION OUTSIDE IN PERSPECTIVE, PREDICTIVE, VISUAL SMART ENTERPRISE VISION DEPLOY SMART NEXT GENERATION TOOLS EXPERIENCE LAYER VIS
Slide 35: People – Life @ Nerolac
People – Life @ Nerolac People Centric Approach Talent Management The underlying belief is that success of the organisation Learning & Development - Our L&D teams have ensured is strongly connected with its employees’ well-being and that our employees receive the necessary opportunities growth by le
Slide 36: Our ESG Approach
Our ESG Approach 3P Approach We follow a triple bottom-line (3P – People, Planet and Profit) approach and judiciously manage the six capitals (Natural, Human, Financial, Manufactured, Intellectual and Social & Relationship) to achieve our strategic objectives July 2023
Slide 37: Our ESG Approach - Materiality
Our ESG Approach - Materiality We have categorized our material topics under 5 broad areas: Decarbonisation Resource Use Quality of Life Diversity Governance › Water Management › Human Rights › Gender Diversity › Corporate Governance › Energy Management › Waste Management › Occupational Health › Inc
Slide 38: Our ESG Approach
Our ESG Approach Specific Hazardous Waste Generation (Kg / Specific Water Consumption KL of FG) (KL / KL of FG) 2.71 2.7 1.58 1.4 2.47 2.47 1.25 1.16 1.14 2.3 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 *Manufacturing Facilities *Manufacturing Facilities Specific Power Consumption Specific Fue
Slide 39: Our ESG Approach
Our ESG Approach NEROLAC goo SOCIAL - EMPOWERING PEOPLE & COMMUNITIES QUALITY OF LIFE — Materiality 3 N appRoace: | COMMITMENT: l > > Community development | Zero human rights abuse > Promote equaity > Zero incident-accident > Foster behavioural-based safety culture > Employee engagement . > Advocat
Slide 40: Our ESG Approach
Our ESG Approach NEROLAC GOVERNANCE - EMPOWERING = PEOPLE & COMMUNITIES GOVERNANCE - Materiality 5 APPROACH: | COMMITMENT: > Enterprise risk management > Zero non-compliances > Board oversight > Reduce enterprise risk > Statutory compliances > Fair practices across value-chain PROGRESS: > Enterprise
Slide 41: Recognition
Recognition Recognition › S&P Rated in the top 10% globally within the Chemical Industry Group in the S&P ESG Index in CSA 2022 › Featured in the Leadership Category, and among the top 14 out of 575+ companies, and rated #1 in the Paint Sector › Ranked in the Top Quartile of FTSE4Good Emerging Index
Slide 42: Awards and Recognition
Awards and Recognition Company/ Name of Award Award Description Category Awarded by Location Digital Leader Awarded Digital leader- 2023 in manufacturing (Paints) IT - Digital Alden KNPL Dream employer of the Recognised as 'Dream Employer of the Year' for 2022, Times ascent World HR KNPL Year under
Slide 43: Awards and Recognition
Awards and Recognition Company/ Name of Award Award Description Category Awarded by Location Facilitated with “Platinum Award” for the best health and safety Apex India Safety Apex India Safety practices at workplace Foundation Jainpur Award 2022 Awarded “Champion Award-2022”, in individual category
Slide 44: Awards and Recognition
Awards and Recognition Company/ Name of Award Award Description Category Awarded by Location Quality Circle Process Gold Award Gold Award for Energy saving case study Forum of India Bawal Improvement (QCFI) Quality Circle Gold Award at 7th Chapter Convention on Quality Control Gold Award Quality For
Slide 45: Selective List of Customers
Selective List of Customers General Industrial High Performance Automotive Coatings OEMs Powder Coatings Coatings Coatings ❑ MARUTI SUZUKI ❑ GODREJ ❑ RELIANCE INDUSTRIES ❑ GODREJ ❑ TOYOTA KIRLOSKAR ❑ WHIRPOOL ❑ ADANI ❑ HITACHI ❑ HONDA CARS ❑ KIRBY BUSINESS SYSTEMS ❑ AMBUJA CEMENT ❑ WHIRPOOL ❑ RENAUL
Slide 46: Consolidated Snapshot
Consolidated Snapshot CAGR (LAST 20 YEARS) (FY 2003- FY 2023) Revenue 12.8 PBDIT 12.7 PBT 13 July 2023
Slide 47: End of Presentation
End of Presentation July 2023
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