Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Investor Presentation (January 2024)
46 slides from Welspun Living's investor presentation, January 2024
Slide 1: Investor Presentation Welspun Living Limited
Investor Presentation Welspun Living Limited Home Textile | Advance Textile | Flooring JANUARY 2024 NSE/BSE: WELSPUNLIV Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 2: Inside this Presentation
Inside this Presentation Welspun Group 03 Welspun Living 04 Market Opportunity 12 Welspun 2.0 17 Brands 20 Advanced Textile 27 Flooring Solution 28 Innovation 30 Digitalization 31 ESG 33 Robust Financial Performance 37 Prudent Capital Allocation Strategy 42 Investment Rationale 45 2
Slide 3: Global Conglomerate
Global Conglomerate The USD 3 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring Global leader in Home Textiles Amongst world’s largest Line-Pipe manufacturer
Slide 4: Welspun Living – Who are we?
Welspun Living – Who are we?
Slide 5: Welspun Living - Global Home Textiles Leader
WELSPUN LIVING - GLOBAL HOME TEXTILES LEADER Multipronged Welspun Living Ltd (WLL), E-Commerce ESG Focused part of $3 bn Welspun Group, is a Strategy to organization with global leader in the Home Textiles accelerate growth & capture well-defined landscape. With a strong global principles, Diversifi
Slide 6: Strong Global Presence
STRONG GLOBAL PRESENCE KEY CUSTOMER PARTNERSHIP North America UK & Europe India ROW Over 50 IKEA Countries Presence welspunliving.com 6
Slide 7: 360 degrees capabilities from Farm to Shelf
360 degrees capabilities from Farm to Shelf 1. Well Researched Innovative Offerings backed by deep Consumer understanding 6. Environment, 1. Consumer 2. Vertically integrated facilities Social, Research & with seamless connectivity to Governance Innovation (ESG) Global Supply chains 3. Global Distri
Slide 8: Vertically Integrated presence with Significant Capabilities
Vertically Integrated presence with Significant Capabilities Particulars UOM Annual Capacity Bath Linen MT 90,000 Bed Linen Mn mtrs 108 Home Textile Rugs & Carpets Mn sq mtrs 12 Advanced Textile Spunlace MT 27,729 Needle Punch MT 3,026 Wet Wipes Mn Packs 100 Annual Capacity Flooring Particulars UOM
Slide 9: Awards & Recognition
AWARDS & RECOGNITION Feathrs in our cap Best Managed Company by Platinum Award by Apex Deloitte – won in 2 years in a Safety Excellence Diamond India Foundation Award’23 row Award at Golden Bird for Excellence in Ms. Dipali Goenka recognized as the "Most Powerful National Awards ‘23 Corporate Ethics
Slide 10: Leadership
Leadership Board of Directors Board of Directors Management Team Mr. Murali Sivaraman Mr. Rajesh Mandawewala Ms. Dipali Goenka Ms.Vanshika Goenka Mr. B. K. Goenka M D ; We l s p u n U K IND EP END ENT D IREC TOR E x e c u t i v e V i c e C h a i r ma n ; MD & CEO; C HAIRMAN More than 3 decades of
Slide 11: Trend of Financial Performance
Trend of Financial Performance Total Income EBITDA (₹ Million) (₹ Million) 16,000 14,000 12,000 10,000 8,000 66,084 68,362 74,080 93,773 14,246 13,098 82,151 14,198 11,467 6,000 8,739 4,000 2,000 0 FY19 FY20 FY21 FY22 FY23 FY 19 FY 20 FY21 FY22 FY23 Net Debt to Equity Net Debt (x) (₹ Million) 22,289
Slide 12: Market Opportunities
Market Opportunities
Slide 13: Global Home Solutions Opportunity
Global Home Solutions Opportunity Global Home Textile Market Addressable US Home Textile Market (2022) (USD Bn) (USD Bn) (Wholesale level) Market Composition 6.5 Bn 180 5.2% 200 US 31% 180 $ 160 120 140 120 Europe 34% Strong Presence of Welspun 61 100 39 0.3 Bn 80 60 a Cotton Pillowcase $ CAGR ROW 3
Slide 14: Global Flooring Opportunity
Global Flooring Opportunity Global Flooring Market (2022) – USD 270 Bn Indian Flooring Market ~₹40,000 Crs market ~5% CAGR Asia Pacific 122, 45% ~50% USA 108, 40% organised Europe 27, 10% 6-8% CAGR Others 14, 05% b/w 2023 - 28 Addressable Indian Market ~ ₹5,500 Crores Addressable Global Market for W
Slide 15: Global Advanced Textile Opportunity
Global Advanced Textile Opportunity – $ 33 Bn Global Addressable Global Advanced Textile Opportunity (2022) Advanced Textile End User Industry Opportunity (2022) Segmentation Market growing at 5% CAGR (In %) ($ 180-190 Bn) Post Covid Health & Hygiene has ~5% CAGR seen focus US 25% MEDITECH - H
Slide 16: Domestic Market Opportunity: multiple growth drivers
Domestic Market Opportunity: multiple growth drivers HOME TEXTILE INDIA MARKET (Rs Crs) Welspun poised to grow at 3X of the market growth rate 12% 48,000 Total CAGR Category expansion Channel expansion NON-BRANDED “Har Ghar Welspun” has a Expanding presence through well-defined category TT/MT channe
Slide 17: Welspun 2.0
Welspun 2.0
Slide 18: Evolution of Welspun Living
Evolution of Welspun Living Phase I : Till 2010 Phase II : 2010 - 2020 Phase III : Going forward Transforming from a Evolving to Welspun 2.0 manufacturing company to brand- with 6 key value drivers Transforming from being textile oriented, Direct to Consumer Growth Value manufacturer to company Dr
Slide 19: Welspun 2.0
Welspun 2.0 Growth drivers Value enablers Brands Emerging E-Commerce Innovation Digitalization ESG Businesses Brand Portfolio – Flooring Multi-pronged Thought leader Organization wide Encompassing all Owned & Licensed E-commerce Strategy in Home Textiles transformation stakeholders with
Slide 20: Brands: Dominating Global Consumer Landscape
Brands : Dominating Global Consumer Landscape Brand Strategy Owned Brands India Global Strengthening 1. owned and licensed portfolio Penetration 2. of consumer business across geographies Licensed Brands Securing 3. additional India Global shelf space Alternate 4. Revenue Streams 20 welspunliving.co
Slide 21: Owned Brands – Domestic
Diversified Product Portfolio OWNED BRANDS – DOMESTIC BED LINEN BATH LINEN Bedsheets Towels Comforters Bath mats Dohars Bath robes Pillow covers Brand Positioning Premium Mass Thoughtfulness RUGS FLOORING SOLUTIONS Presence 17,006+ outlets (1,495+ in Q3 24) Door mats Click & Lock tiles 2,4
Slide 22: Retail Journey
Retail Journey Campaign with Akshay Kumar Brand Welspun - most distributed brand, HT CSO Campaign Launched Reached Rs 100 Cr launched for Revenue: HT: 430 Cr+; W Flooring: 120 Cr Spaces Turnover consumer Spaces: ~190 Cr Welspun: ~190 Cr brand engagement (SPACES) Re-launch of EBO 2004
Slide 23: Domestic Business
Domestic Business Opportunity Aiming to be “Har Ghar Welspun” Market size To be Leader in home textiles space in India Addressable market size is currently about ₹ 12,000 cr. and is expected to Innovative, Quality products, available at arm’s move up to ₹ 25,000 cr. by 2026. Major part of market
Slide 24: Brand Welspun
DOMESTIC CONSUMER BUSINESS BUILDUP Awards Innovation: Highest Distributed 75% Districts • 2-in-1 Sheet Brand Welspun Brand in HT Share of Presence in shelf: >=15% MBO; • Quik Dry Towel ~500/640 >= 40% Large format • Wonderful sheet Make in India: Presence: 17k+ Outlets Most Visible Brand Highest Sca
Slide 25: Owned Brands - Global
Owned Brands - Global Brand Positioning 170-year-old heritage Luxury Presence Moving from Phygital to Global Digital Repositioning for Millennials Early Success About 25% Christy business now comes from E- Commerce channel 25 welspunliving.com
Slide 26: Licensed Brands
Licensed Brands Licensed brand brings us new opportunity pockets by opening-up new channels and shelf space without cannibalizing our existing business Martha Creative Co/Lab Strong performance across Territory Expansion – Canada , channels Mexico in the First year itself Healthy contribution co
Slide 27: Advanced Textiles
Advanced Textiles Emerging segment of textile Wet Wipes products Tailor-made wet wipes for end Innovative product applications applications like baby care, personal Facility located in Anjar (Gujarat) hygiene, cosmetics, industrial use, and and Hyderabad (Telangana) in India home care. Manuf
Slide 28: Flooring Solutions
Flooring Solutions Technologically advanced Flooring Solutions Greenfield Fully Flooring for Home, Hospitality and Commercial segment. Integrated facility Aiming to revolutionize the renovation segment of Indian spread over 600 acres of flooring market. land in Telangana Flooring still conside
Slide 29: Flooring Product Offerings
Flooring Product Offerings Click N Lock® Tiles Carpet Tiles Wall to Wall carpets Greens Features Features Features Features Healthy Floors Highly Durable Multiple Design Anti- viral Multiple Design Anti -viral No Cropping No Watering Possibilities Possibilities Less than a Noise & Dust Free Easy to
Slide 30: Innovation – Our strong suite
Innovation – Our strong suite 37 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Patented spinning technology makes towel Blockchain platform for state-of-the-art softer loftier and sheet temperature transparency for All Fibers & All Pr
Slide 31: Digitalization - Digital Transformation at Welspun
Digitalization - Digital Transformation at Welspun Supplier Manufacturing Product Management Supply Chain Sales & Marketing E-Sourcing Industry 4.0 Collaborative E -PLM E-Documentation Digital Customer Computer vision Digitization of Product (Bolero Platform) Engagement E-Procure to Pay based QC
Slide 32: Digitally Engaging with our customers
Digitally Engaging with our customers Virtual Showroom & Virtual Shop floor Virtual Quality Customer Feedback Design Microsite walkthrough Inspections Audio-Video quality was so good that I could feel myself sitting in cart and visiting the plants. Very good synergy among team members and could see
Slide 33: Welspun ESG Way: Encompassing All Stakeholders
WELSPUN ESG WAY: ENCOMPASSING ALL STAKEHOLDERS Environmental Social Governance Welspun is going through Implemented ISO 14001 Engaged with Cotton Farmers Board Committee on ESG a major transformation where we are Environmental Management to grow sustainable Cotton embedding sustainability and
Slide 34: Sustainability Initiatives – Growing Business Responsibly
SUSTAINABILITY INITIATIVES – GROWING BUSINESS RESPONSIBLY W elsp u n L i vi n g ’s S us t ai n a bil it y c as e s t ud y i s n o w a p a rt of a cu rr iculu m acr o ss universities in US, Canada, France, Europe and Taiwan.” Sustainalytics DJSI ratings Crisil ratings Welspu n Liv ing is a m ongs
Slide 35: Sustainability – Progress Against Targets
SUSTAINABILITY – PROGRESS AGAINST TARGETS Aspects 9M FY 24 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 81% 50% 100% Fresh Water Positive in Production 11KL/MT 5KL/MT 0KL/MT operations Zero hazardous waste to Landfill (ETP 43 MT 0 MT 0 MT chemical
Slide 36: Our ESG journey and envisaged outcomes
Our ESG journey and envisaged outcomes What are we doing? Comparison of ESG-related Identifying, refining, and Identification of current gaps Formulation of a strategic Public reporting and systems and processes across assessing numerous and/or improvement areas roadmap outlining key disclosures of
Slide 37: Robust Financial Performance
Robust Financial Performance
Slide 38: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 FY22 FY 23 Total Income 61,318 66,084 68,362 74,080 93,773 82,151 Growth YoY* % (8.8%) 7.8% 3.4% 8.4% 26.6% (11.4%) EBITDA 12,046 11,467 13,098 14,198 14,246 8,739 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% 10.6% Depreciation 5,042 4
Slide 39: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 Net Worth 26,057 27,793 29,721 36,447 39,717 40,878 Short Term Loans 12,580 14,080 17,717 17,452 19,742 12,342 Long Term Loans 20,228 19,024 16,704 10,962 12,142 11,162 of which Net Flooring Deb
Slide 40: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 FY23 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 0.38 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 1.76 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 3.32 Current ratio 1.42 1.25 1.19 1.33 1.37 1.66 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 2.14 Total as
Slide 41: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation – (₹ Million) Continuous payout thru dividend / buyback 2,500 2,650 2,240 6,290 7,841 1,574 3,651 786 907 787 148 773 FY18 FY19 FY20 FY21* FY22 FY 23 Note: FCF Dividend / Buyback cash outflow • *Includes Buyback, Buyback tax and Dividend 41 welspunliving.com
Slide 42: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy Areas of Dividend / CAPEX Net Debt Investment Buyback Core Philosophy in Capital Allocation Decisions Investment toward profitability- margin assertive product categories Consistent track record of distribution through Dividend / Buyback Calibrated as per
Slide 43: Share Holding Summary
SHARE HOLDING SUMMARY Shareholding Pattern (Dec 2023) Top Institutional Shareholders Promoter Group 70.5% LIC of India FPIs 7.3% HSBC Mutual Fund Mutual Funds/AIF 2.0% Aditya Birla Sunlife MF Insurance Co’s 3.3% Nippon Mutual Fund Public 15.9% Other 1.0% welspunliving.com 43
Slide 44: Investment Rationale – What makes it an interesting play?
Investment Rationale – What makes it an interesting play?
Slide 45: Investment Rationale
Investment Rationale Strengthening A strong focus on Balance sheet with innovation with 36 patents low leverage and and collaborations with allocation of capital technology partners and to high ROCE industry associations businesses ESG initiatives Focus on ‘Direct to are the cornerstone Customers’ o
Slide 46: Let's connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun Living Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com Connect with us: /TheWelspunworld /WelspunWorld /welspungroup /company/welspunworld
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