Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — H1 FY24 Earnings Presentation
52 slides from Greenlam Industries's earnings presentation, Oct 31, 2023
Slide 1: Cover letter to stock exchanges
Greenlam/2023-24 October 31, 2023 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Fax No. 022-2272-3121/1278/1557/3354
Slide 2: Bettering: Culture of Execution Excellence
BETTERING Culture of Execution Excellence Greenlam Industries Limited Analyst Presentation October 2023
Slide 3: Safe harbor
Greenlam Industries Limited l Analyst Presentation l October 2023 2 Safe harbor 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 of
Slide 4: Strong delivery
Greenlam Industries Limited l Analyst Presentation l October 2023 3 Strong delivery The company A structured The We delivered on completed execution laid the commissioning our project greenfield and groundwork for demonstrated a commitments brownfield the company's dedication to showcasing expansion
Slide 5: What we have achieved in the last 18 months
Greenlam Industries Limited l Analyst Presentation l October 2023 4 What we have achieved in the last 18 months Increased our Acquired and Commissioned a Commissioned laminate capacity enhanced our greenfield laminate India’s largest single from 15.62 mn sheets laminate capacity in project in Naidup
Slide 6: Who we are and what we do
Greenlam Industries Limited l Analyst Presentation l October 2023 5 Part 1 Who we are and what we do
Slide 7: Greenlam. A snapshot
Greenlam Industries Limited l Analyst Presentation l October 2023 6 Greenlam. A snapshot Background Promoter Manufacturing Product capabilities solution Commenced operations in Company stewarded by Mr. 5 facilities across Behror Engaged in the manufacture Behror in 1993 Saurabh Mittal (Managing (Raj
Slide 8: Greenlam. A leader
Greenlam Industries Limited l Analyst Presentation l October 2023 7 Greenlam. A leader One of the top India’s three laminate largest exporter brands across of laminate for First in the the world 12 consecutive wood panel space years to be funded by International Finance India's first India's only Co
Slide 9: Our Board
Greenlam Industries Limited l Analyst Presentation l October 2023 8 Our Board Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Ms. Parul Mittal Mr. Sandip Das Non-Executive Chairman Managing Director & CEO Whole-Time Director Independent Director Ms. Matangi Gowrishankar Mr. Yogesh Kapur Mr. Rahul Chhabra
Slide 10: Our growth journey
Greenlam Industries Limited l Analyst Presentation l October 2023 9 Our growth journey 1992-93 2002 2005-08 2009 2012 Set up the first Started the Setting up of Started the Set up a subsidiary laminate unit at commercial overseas commercial in the UK Behror; started the production of subsidiaries in
Slide 11: Our brands
Greenlam Industries Limited l Analyst Presentation l October 2023 10 Our brands
Slide 12: Laminates
Greenlam Industries Limited l Analyst Presentation l October 2023 11 Our products Laminates Laminates Compact laminates 10,000+ 100+ Decors collection Decors Veneered Veneered Compact laminates laminates 200+ 20+ Natural veneer Natural veneer species species Applications The laminates business has w
Slide 13: Clads
Greenlam Industries Limited l Analyst Presentation l October 2023 12 Our products Clads Exterior Interior clads clads 35 100+ Decors Decors Applications Resistant to weather, fading and fire. Extensively used in residential and commercial applications. The interior cladding solution represent fully
Slide 14: Restroom cubicle and locker solutions
Greenlam Industries Limited l Analyst Presentation l October 2023 13 Our products Restroom cubicle and locker solutions Magna Air 2 3 Models Models Cocoon Aster 5 3 Models Models Altura Series Lockers 6 6 Models Models Applications Manufactured in strict adherence with accepted fire safety norms, en
Slide 15: Melamine-faced chipboard
Greenlam Industries Limited l Analyst Presentation l October 2023 14 Our products Melamine-faced chipboard 100+ Decors Applications With increased organised carpentry (OEM) in India, the use of engineered wood like melamine faced chipboard (MFC) is finding use pace in the kitchen and modular furnitu
Slide 16: Decorative veneers
Greenlam Industries Limited l Analyst Presentation l October 2023 15 Our products Decorative veneers Naturals Teak 360 13 Varieties Varieties Engineered 49 Varieties Applications The specification industry leads sales of this category. Decowood Veneer comes in three categories – Natural, Engineered
Slide 17: Engineered wooden flooring
Greenlam Industries Limited l Analyst Presentation l October 2023 16 Our products Engineered wooden flooring Atmos Pristine 10 156 SKU’s SKU’s Applications Mikasa offers unparalleled flooring solutions with its premium engineered wooden flooring. Made for the first time in India with the latest tech
Slide 18: Engineered wooden doors and frames
Greenlam Industries Limited l Analyst Presentation l October 2023 17 Our products Engineered wooden doors and frames Fire-rated door Non-fire rated sets door sets Specialty door Acoustic door sets sets Designer door sets Applications Increasingly used in high-end realty development. Unlike tradition
Slide 19: Plywood
Greenlam Industries Limited l Analyst Presentation l October 2023 18 Our products Plywood Plywood Blockboard 5 2 Product range Product range Categories Sapphire, Marine Blue, Marine, MR+ and Fire Guardian Different sizes available 4'x8', 4'x7', 4'x6', 3'x8', 3'x7', 3'x6', 2.5'x8', 2.5'x6', 2.5'x8' T
Slide 20: Green credentials
Greenlam Industries Limited l Analyst Presentation l October 2023 19 Green credentials Greenguard Greenguard Gold PEFC™ NSF IGBC Green label GRIHA GreenPro FSC® ISO ISO ISO
Slide 21: Greenlam's domestic footprint
Greenlam Industries Limited l Analyst Presentation l October 2023 20 Greenlam’s domestic footprint Manufacturing capacities Products Unit Capacity Location Nalagarh, Himachal Pradesh Current capacities High pressure Million 24.52 Behror, Rajasthan laminate sheets / Nalagarh, Himachal boards Pradesh
Slide 22: Greenlam's manufacturing facilities
Greenlam Industries Limited l Analyst Presentation l October 2023 21 Greenlam’s manufacturing facilities Behror, Rajasthan Nalagarh, Himachal Pradesh Prantij, Gujarat Tindivanam, Tamil Nadu Naidupeta, Andhra Pradesh
Slide 23: Greenlam's global footprint
Greenlam Industries Limited l Analyst Presentation l October 2023 22 Greenlam’s 100+ 15 8 130+ global footprint Number of countries where Greenlam is Number of global Greenlam offices Number of operational global overseas employees present Greenlam subsidiaries INDIA The maps provided are for pictor
Slide 24: Poised to address the India and international laminates market
Greenlam Industries Limited l Analyst Presentation l October 2023 23 Greenlam. Poised to address the India and international laminates market 12,000 3,000 9,000 6,000 Rs. Cr, size of the Rs. Cr, size of exports Rs. Cr, size of the Rs. Cr, size of the laminate market in from India domestic market dom
Slide 25: The growth of our business
Greenlam Industries Limited l Analyst Presentation l October 2023 24 The growth of our business (Rs. crore) EBIDTA (Rs. Crore) EBIDTA margin (%) (Rs. crore) 250.0 232.9 16.0 128.0 14.4 14.0 2,026.0 13.5 200.0 12.4 187.0 178.3 173.3 12.0 11.5 EBITDA margin (%) EBITDA (Rs crore) 1,703.4 158.5 11.0 90.
Slide 26: Our prospects
Greenlam Industries Limited l Analyst Presentation l October 2023 25 Part 2 Our prospects
Slide 27: Our goals
Greenlam Industries Limited l Analyst Presentation l October 2023 26 Our goals To graduate from standalone surfacing products to an integrated (surface and To emerge as substrate) solution To grow from India’s leading provider a position of wood panel respect to player first recall
Slide 28: Greenlam's addressable domestic market
Greenlam Industries Limited l Analyst Presentation l October 2023 27 Greenlam’s addressable domestic market 14,000 49,000 44,000 5,000 Rs. cr, Greenlam’s addressable market as on March 31, 2023 44,000 30,000 30,000 Rs. cr, Greenlam’s addressable market as on September 30, 2023 14,000 2,000 2,000 2,0
Slide 29: What Greenlam is doing with its earnings
Greenlam Industries Limited l Analyst Presentation l October 2023 28 Greenlam’s outlay in FY 23 to FY 25 What Greenlam is doing with its earnings… >1200 Rs. cr, proposed • Making the largest investment in its expansion outlay, FY 2023-25 business • Broadbasing its revenue mix beyond laminates to ply
Slide 30: Optimistic about investments for domestic market
Greenlam Industries Limited l Analyst Presentation l October 2023 29 We are optimistic about our investments for domestic market The Indian economic growth story appears poised at a multi-year expansion runway Higher demand for residential and commercial real estate including hospitality, education,
Slide 31: Optimistic about investments for international markets
Greenlam Industries Limited l Analyst Presentation l October 2023 30 We are optimistic about our investments for international markets Significant export opportunities as India is an established laminate export hub International players not adding any meaningful capacities Cost of production in inte
Slide 32: Projected outcomes of Greenlam's record investment
Greenlam Industries Limited l Analyst Presentation l October 2023 31 Projected outcomes of Greenlam’s record investment • What Greenlam achieved • We will deepen our in 8 years from its existing financial discipline and business has been security – across a larger creditable scale • We charted out a
Slide 33: Product segments present and intended
Greenlam Industries Limited l Analyst Presentation l October 2023 32 These are the These are the product segments product segments where we were where we intend to present be present Engineered Wooden Floors Laminates & Doors Plywood Laminate Engineered Decorative Wooden Floor Veneer & Doors Particl
Slide 34: Business update
Greenlam Industries Limited l Analyst Presentation l October 2023 33 Part 3 Business update
Slide 35: Laminates: Prantij, Gujarat
Greenlam Industries Limited l Analyst Presentation l October 2023 34 Laminates Prantij, Gujarat • Acquired in June 2022, this plant was • This expansion has strengthened the initially commissioned with a capacity company’s ability to service product of 3.40 million sheets per annum in segment in whi
Slide 36: Plywood: Tindivanam, Tamil Nadu
Greenlam Industries Limited l Analyst Presentation l October 2023 35 Plywood Tindivanam, Tamil Nadu • Largest single location plywood • The plywood product is marketed manufacturing unit in India with an under the brand ‘Mikasa Ply – The No installed capacity of 18.9 million sq. m. Nonsense Ply’ per
Slide 37: Laminates: Naidupeta, Andhra Pradesh
Greenlam Industries Limited l Analyst Presentation l October 2023 36 Laminates Naidupeta, Andhra Pradesh • This greenfield project for the • We introduced our second large size manufacture of high-pressure laminate laminate production line where we can began commercial production on produce laminate
Slide 38: Particle board: Naidupeta, Andhra Pradesh
Greenlam Industries Limited l Analyst Presentation l October 2023 37 Particle board Naidupeta, Andhra Pradesh • Our state-of-the-art manufacturing • The facility is scheduled to commence facility for plain and pre-lam particle commercial production by Q4FY24 board, with a capacity of 2,31,000 CBM pe
Slide 39: Demand drivers
Greenlam Industries Limited l Analyst Presentation l October 2023 38 Demand drivers Rising population and urbanisation Demographic dividend Growing renovation demand Rise in demand for new homes Higher demand and new construction in hospitality, education, healthcare, IT and others India’s particle
Slide 40: Conclusion
Greenlam Industries Limited l Analyst Presentation l October 2023 39 Conclusion We have Larger More embarked profitable on the Next Orbit that will transform us… Laying the foundation of a More more valuable sustainable Greenlam
Slide 41: Consolidated financial statements
Greenlam Industries Limited l Analyst Presentation l October 2023 40 Part 4 Consolidated financial statements
Slide 42: Profit and Loss Statement
Greenlam Industries Limited l Analyst Presentation l October 2023 41 Profit and Loss Statement INR Crores Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1FY24 H1FY23 YoY% Revenue 603.6 518.0 16.5% 515.2 17.2% 1,118.9 988.6 13.2% Raw Material 293.3 287.2 245.9 539.2 545.9 Gross Profit 310.3 230.9 34.4% 269.3 15.
Slide 43: Balance Sheet
Greenlam Industries Limited l Analyst Presentation l October 2023 42 Balance Sheet INR Crores Sept-23 Mar-23 INR Crores Sept-23 Mar-23 Shareholders Fund 1,022.5 969.0 Non-Current Assets 1,468.4 1,041.9 Share Capital 12.7 12.7 Fixed Assets 1,341.6 894.0 Reserves & Surplus 1012.3 955.9 Goodwill 3.5 3.
Slide 44: Laminates & Allied Segment
Greenlam Industries Limited l Analyst Presentation l October 2023 43 Laminates & Allied Segment INR Crores Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1 FY24 H1 FY23 YoY% Net Revenue from 531.2 471.3 12.7% 472.0 12.5% 1,003.1 901.5 11.3% Operations Gross Profit 279.6 213.4 31.0% 250.3 11.7% 529.9 410.2 29.2%
Slide 45: Laminates & Allied Segment – Quantitative Details
Greenlam Industries Limited l Analyst Presentation l October 2023 44 Laminates & Allied Segment – Quantitative Details Particulars Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1 FY24 H1 FY23 YoY% Annual Installed Capacity 24.52^ 19.02 21.02 24.52^ 19.02 (Mn Sheets) Production (Mn Sheets) 4.96 4.22 17.4% 4.68
Slide 46: Veneers & Allied Segment
Greenlam Industries Limited l Analyst Presentation l October 2023 45 Veneers & Allied Segment INR Crores Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1 FY24 H1 FY23 YoY% Net Revenue from 57.5 46.8 23.1% 42.5 35.4% 100.0 87.1 14.8% Operations Gross Profit 24.6 17.5 40.8% 18.3 34.7% 42.9 32.6 31.6% Gross Margin
Slide 47: Decorative Veneers – Quantitative Details
Greenlam Industries Limited l Analyst Presentation l October 2023 46 Decorative Veneers – Quantitative Details Particulars Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1 FY24 H1 FY23 YoY% Annual Installed Capacity 4.20 4.20 4.20 4.20 4.20 (Mn Sqmt) Production (Mn Sqmt) 0.41 0.39 5.9% 0.26 58.5% 0.67 0.66 1.4%
Slide 48: Plywood & Allied Segment
Greenlam Industries Limited l Analyst Presentation l October 2023 47 Plywood & Allied Segment INR Crores Q2 FY24 H1 FY24 Quantitative Details Q2 FY24 H1 FY24 Net Revenue from Annual Installed Capacity 14.9 15.7 18.90 18.90 Operations (Mn Sqmt) Gross Profit 6.1 6.9 Production (Mn Sqmt) 0.75 0.79 Gros
Slide 49: Operating Parameters - Net Working Capital
Greenlam Industries Limited l Analyst Presentation l October 2023 48 Operating Parameters - Net Working Capital Particulars Q2 FY24 Q2 FY23 Q1 FY24 H1 FY24 H1 FY23 Amt Amt Amt Amt Amt INR Days INR Days INR Days INR Days INR Days Crores Crores Crores Crores Crores Inventory* 548.2 83 527.0 93 540.0 9
Slide 50: Debt Position
Greenlam Industries Limited l Analyst Presentation l October 2023 49 Debt Position INR Crores H1FY24 H1FY23 Q1FY24 Net Debt-Equity Ratio Long Term Debt (Including 0.66 136.6 169.9 149.6 current portion) Long Term Debt (Project) 549.3 5.7 422.3 Short Term Debt 192.5 165.3 173.1 0.08 Total Debt 878.5
Slide 51: Return Ratios – ROCE & ROE
Greenlam Industries Limited l Analyst Presentation l October 2023 50 Return Ratios – ROCE & ROE INR Crores Q2FY24 Q2FY23 Q1FY24 H1 FY24 H1 FY23 ^ROCE (Ex- Projects) EBIT 62.0 43.4 51.0 112.9 81.5 15.4% 14.0% PAT 39.4 29.2 32.2 71.6 53.8 13.1% Capital Employed 1,915.3 1,250.2 1,759.2 1,915.3 1,250.2
Slide 52: For further information, please contact
Greenlam Industries Limited l Analyst Presentation l October 2023 51 For further information, please contact: Greenlam Industries Ltd. Investor Relations Advisors: CIN: L21016DL2013PLC386045 Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Ashok Kumar Sharma Chief Financial Officer