Slide 1: Investor Presentation cover letter to stock exchanges
BOROSIL: Borosil Limited OM: l.31ilO{rM:-1201CPlC292722 Rajstere:i ~ Corporate Om: 1101, Csa:em, G-&xx,Q:,p.MJ\Cli,:ma. Kin.Ccq,leor. Ba-d-a{E}.l'-'anm --400 051, b:!ia_ - +91 .22 f >40 6300 F -+91Zl.w-106514 E ::cf'Cdi'b::rcd.c:m w~ February 8, 2022 BSE Limited National Stock Exchange of India Phir
Slide 2: Borosil Limited - Investor Presentation Q3FY22
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Slide 3: Safe harbour statement
BOROSII: Safe harbour statement “This investor presentation has been prepared by Borosil Limited (“Borosil” or “Company”) on a strictly confidential basis. Certain statements in this presentation may be 'forward looking statements' within the meaning of applicable laws and regulations. These forward
Slide 4: About Borosil
BOROSII: About Borosil Brand with a years of Borosil 50+year legacy Market Leader- Microwavable Kitchenware in India (Consumer Products) Market Leader- l Laboratory Glassware in India (Scientific Products) ' ( • • Borosil Investor presentation - Q3FY22 03
Slide 5: Vision
BOROSII: Vision To be the most customer-centric company in India Offer products that perform beautifully Develop innovative products to meet evolving consumer needs -- -- -- - Be a dependable partner that creates value for customers Nurture long-term relationships l with all stakeholders ' ( • • Bor
Slide 6: Re-Imagining Consumer
Re-Imagining Consumer Glass Products Consumer Brands Company Company Occasional Use Daily Use (Dinnerware, (Microwavable) Storage, Appliances) , , "I - Single Brand Adding brands - - General Trade General Trade Modern Trade E-commerce Borosil Investor presentation - Q3FY22 05
Slide 7: Three Brands, Single Brand BOROSIL
Three Brands Single Brand BOROSIL BOROSIL LabQuest Klasspack -- - Lab Glassware -- - Lab Glassware only Lab Instruments Pharma Packaging Domestic Business Domestic Business International Business Borosil Investor presentation - Q3FY22 06
Slide 8: Journey over last 8 years
Journey over last 8 years Sales CAGR: 20% Operating EBITDA CAGR: 29% 585 90 2020-21 2020-21 135 2012-13 12 2012-13 the figures are in INR Crore Borosil Investor presentation - Q3FY22 07
Slide 9: Financial Overview Q3 FY22 (consolidated)
Financial Overview Q3 FY22 (consolidated) INR Crore Q3 FY20 Q3 FY21 Q3 FY22 Growth % Net Sales 190.73 205.23 260.09 26.7% EBITDA 35.87 41.10 46.93 14.2% EBITDA 41.10 46.93 14.2% (Before exceptional items) 35.87 EBITDA (%) 18.81% 20.03% 18.04% EBIT 37.22 41.40 47.12 13.8% (Before exceptional items) ~
Slide 10: Financial Overview YTD December FY22 (consolidated)
Financial Overview YTD December FY22 (consolidated) INR Crore YTD Dec YTD Dec YTD Dec Growth % FY20 FY21 FY22 Net Sales 494.10 400.71 619.81 54.7% EBITDA 90.51 61.24 117.34 91.6% EBITDA 90.51 64.85 123.80 90.9% (Before exceptional items) EBITDA (%) 18.32% 16.18% 19.97% ,. , EBIT 94.89 63.01 117.94 8
Slide 11: Financial Overview Q3 FY22 Consumerware Division
Financial Overview Q3 FY22 Consumerware Division INR Crore Q3 FY20 Q3 FY21 Q3 FY22 Growth % Net Sales 140.10 151.97 194.64 28.1% EBITDA 25.64 23.53 31.04 31.9% EBITDA 23.53 31.04 31.9% (Before exceptional items) 25.64 EBITDA (%) 18.30% 15.48% 15.95% - EBIT ~ r ~ 26.32 23.68 31.14 31.5% (Before excep
Slide 12: Financial Overview YTD December FY22 Consumerware Division
Financial Overview YTD December FY22 Consumerware Division INR Crore YTD Dec YTD Dec YTD Dec Growth % FY20 FY21 FY22 I I Net Sales 347.68 266.73 435.52 63.3% - - EBITDA 60.30 28.05 71.34 154.3% - - EBITDA 60.30 29.86 74.57 149.8% (Before exceptional items) EBITDA (%) 17.34% 11.19% 17.12% ,. , EBIT 6
Slide 13: Category wise sales (Consumerware)
Category wise sales (Consumerware) INR Crore Category Q3 FY22 Growth % YTD Dec YTD Dec Q3 FY21 Growth % FY21 FY22 Glassware 33.55 45.72 36.3% 72.33 108.79 50.4% Non Glassware 60.99 79.05 29.6% 105.12 157.45 49.8% .~ ~ ~ - Opalware 57.43 69.87 21.7% 89.28 169.27 89.6% - - - Total Consumerware 151.97
Slide 14: Financial Overview Q3 FY22 Scientific Division (consolidated)
Financial Overview Q3 FY22 Scientific Division (consolidated) INR Crore Q3 FY20 Q3 FY21 Q3 FY22 Growth % Net Sales 50.62 53.25 65.45 22.9% EBITDA 8.54 12.61 9.58 (24.0)% EBITDA 12.61 9.58 (24.0)% (Before exceptional items) 8.54 EBITDA (%) 16.86% 23.68% 14.64% - EBIT ~ r ~ 9.21 12.76 9.68 (24.2)% (Be
Slide 15: Financial Overview YTD December FY22 Scientific Division (consolidated)
Financial Overview YTD December FY22 Scientific Division (consolidated) INR Crore YTD Dec YTD Dec YTD Dec Growth % FY20 FY21 FY22 Net Sales 146.42 133.98 184.29 37.5% --------------------------------- ----------------- - ----------------- - ----------------- ---- ----------------- EBITDA 26.50 26.05
Slide 16: Category wise sales (Scientific)
Category wise sales (Scientific) INR Crore Category YTD Dec YTD Dec Q3 FY21 Q3 FY22 Growth % Growth % FY21 FY22 Laboratory Glassware 33.84 38.46 13.6% 82.20 103.72 26.2% Lab Instrumentation 4.50 4.14 (7.8)% 10.20 13.32 30.6% . Pharma Packaging 14.91 22.85 53.3% 41.58 67.25 61.7% - - - - Total Scient
Slide 17: ROCE (Consolidated)
ROCE (Consolidated) INR Crore YTD Dec FY22 Shareholders' Funds 748.59 Less : Intangible Assets (Goodwill) (67.67) Tangible Net Worth 680.92 Add : Defferred Tax Liability 27.89 Add : Total Debt 0.00 ~.,....., , 708.81 ~ I Capital Employed - Less : Investments (207.91) - Operating Capital Employed 500
Slide 18: Rationale for the Restructuring
Rationale for the Restructuring - Both businesses already run as separate profit centers with largely differentiated teams - Both businesses have different capital and operating requirements - Different organic and inorganic growth potential and capital raising requirements I - Each business has a d
Slide 19: Restructuring Process
Restructuring Process Steps for making effective composite scheme of arrangement - Board approval of the companies involved in the Scheme - Submission of Scheme along with supporting documents to BSE & NSE - BSE & NSE shall issue a Observation letter/ NOC to BL after incorporating comments received
Slide 20: Current Holding Structure
Current Holding Structure Promoters Public 70.44% 29.56% BL . (CP and SIP business) I 82.49% 100% r KPL BTL - Borosil Limited (‘BL’ or ‘Demerged Company’) (listed on BSE and NSE). - Klass Pack Limited (‘KPL’ or ‘Resulting Company / Transferee Company’) is a 82.49% subsidiary of BL. - Borosil Technol
Slide 21: Resultant Holding Structure
Resultant Holding Structure Promoters Public Promoters Public 70.44% 29.56% 68.16% 31.84% , Borosil Limited Borosil Scientific Limited (CP Business) (SIP Business) I - It is proposed to demerge SIP business of BL into KPL and in consideration KPL will issue equity shares to the shareholders of BL an
Slide 22: Consumer Division
BOROSII: ..·- . - .. ------ - _......-·__ .-.-. - . -- -•j . ;-•-::.~ "' -::-- ~~_-i:.-£::~ - :::rr". =_.·: ~ ~-:;;;-.:.- -- -;_: -·...: __ ... · i~fjt;~;7t. ,, Consumer Division i.;;;. l , - -- ft///) Borosil Investor presentation - Q3FY22 21
Slide 23: Storage, Cooking & Serving needs of a modern kitchen
Storage, Cooking & Serving needs of a modern kitchen Expanding from being synonymous with microwavable glass to storage, serving-ware and domestic appliances Cook Serve Store Cut, Chop, Cook, Bake, Grind, Mix Toast, Grill .........._~ ' 00000 ( ) I - - - - • Contemporary • • Everyday Use • • Perform
Slide 24: Consumer Products
Consumer Products Category Market Growth % Glass Microwaveables 100 10% - Tumblers 440 10% Storage 700 15% to 20% - Hydra Range 1100 10% - Opalware 900 15% to 20% , , "I - Tea I coffee 400 (incl ceramicware) 15% - - - Domestic Appliances 9000 10% - Estimated market share of Microwavables is 60%. Tum
Slide 25: Consumer Products Division Growth Theme
Consumer Products Division Growth Theme MADE IN Make in India INDIA - Enhance/build manufacturing capacity for WITH PRIDE Opal Glass and Borosilicate Glass " , • r New product development - - - To promote Borosil glassware for daily use To make Glass affordable for Mass Consumer Borosil Investor pre
Slide 26: Borosil - Ally of Progressive Homemaker
Borosil - Ally of Progressive Homemaker #Morning Preps, Chai, Breakfast, Appliances ----- 6 AM ---- Storage Cookware --...::: -:.J ...___ Dinnerware I ' I I I I #Lunch I I I I I I 9 AM Husband, #Dinner Prep, I I I Kids I Evening Tea, 9 PM Dinner Serving Borosil User Profile: Lunch Box Progressive Ho
Slide 27: Trade Partners
Trade Partners Walmart,', I Save money. Live better. H:ome Ab ,11\air 1, RJ kJ . "'a n! 1 YOUR STYLE. YOUR STORE. A 'T ATA Enterprise • SPAR Borosil Investor presentation - Q3FY22 26
Slide 28: Trade partners and customers
• Ir 0 Panason·c www.ifbappliances.com lnduslnd Bank ALKEN w/ LiFE YWOLXHAl?DT W iNS qlenmal?k A dose of Iife sPHARMA A new way for a new world - .lalJJIM l.ltlMM +-"Po~ ~ I -< e1......I .Q r-.. "11 q '"1 6(1 '1 I A • I '1 .... LIFE INSURANCE CORPORATION OF INDIA Borosil Investor presentation - Q3FY
Slide 29: Growth Pillars
Growth Pillars Domestic Appliances Expand Range Target to build high Maintain market quality, niche range share (60%+) in medium term Sffi E~ DM GROWffif.l Cl!J R!RE Nmm~l l!WI ND Borosil Investor presentation - Q3FY22 28
Slide 30: Category gaining salience
Category gaining salience Larah FY21 revenue INR 141.05 cr Large opportunity in Opal dinner ware - Microwaveable, Light, Strong, Chip resist - Ideal for mass market daily use - Introducing customisable options Margin Improvement initiatives for the medium term - Packaging rationalization - Product m
Slide 31: Storage Range: Thoughtful Products creating a new pillar of growth
Storage Range Thoughtful Products creating a new pillar of growth Indian kitchen storage dominated by plastic and steel - Very low penetration of glass storage Awareness of Glass as a superior option on the rise . - - No health hazard as in some types of plastic - Transparent as against opaque steel
Slide 32: Domestic Appliances: New Engine of Growth
Domestic Appliances New Engine of Growth r l I - I I Large market with growth accelerated post Covid l ,r Opportunity to create a high quality mass premium range leveraging the Borosil brand ... I I I I I 1 Higher category penetration helps to expand the I I , existing retail network ~~~·~ I I I l C
Slide 33: Medium-Term Thrust Areas
Medium-Term Thrust Areas Achieve Revenue CAGR of 15% to 20% - Increase penetration of glass storage and Opalware - Introduce high quality & innovative To-Go storage products - Gain share in premium niche domestic appliances - Accelerate Growth in E-commerce Become Brand of Consumer Choice - Maintain
Slide 34: Scientific Division
BOROSII: -- Cl 1 ' ' , Borosil Investor presentation - Q3FY22 33
Slide 35: Lab Instrumentation
Lab Instrumentation - Volumetric flasks - Magnetic Stirrer - Glass vials - Burettes - Block Digester - Glass ampoules - Pipettes - Multi-Tube Vortexer - Liquid handling systems Borosil Investor presentation - Q3FY22 34
Slide 36: Scientific products market size and growth
Lab Glassware Lab Pharma Packaging Lab Glassware India Exports Instrumentation (Vials & Ampoules) Market Size (INR Cr) 235 4000 200 1100 Est. Market Growth ~8-10% ~2-3% ~8-10% ~10-12% Customers Pharma R&D & QC, Pharma R&D & QC Pharma R&D & QC, Pharma cos Government Labs, Government Labs, Food & Soil
Slide 37: Scientific Products Division Growth Theme
Scientific Products Division Growth Theme MADE l N Make in India 1 - Build manufacturing capacity for Raw material –Tubing production , , • " - - - New product development Substantially enhance •0 0 • capacity for Ampoules and ) Vials production Borosil Investor presentation - Q3FY22 36
Slide 38: Some key Customers
Some key Customers - lfil] Mylan® -y DR. RED DY'S I Seeing is believing~ [t]LUPIN r' - ~ jncepta RANBAXY qlenma~k ALKEM A new way for a new world TEVA PHARMACEUTICAL INDUSTRIES LTD. Borosil Investor presentation - Q3FY22 37
Slide 39: Growth Pillars
Growth Pillars International Core laboratory Import substitution in Become 2nd credible Seed market and build a fragmented market. brand in market dominated new client relationships. Superior value for money by a single player Leverage India cost arbitrage Borosil Investor presentation - Q3FY22 38
Slide 40: Medium-Term Thrust Areas
Medium-Term Thrust Areas Achieve Revenue CAGR of ~15 % - Maintain dominant share in pharma lab glassware - New customers in Food Testing - Build Export market - Drive import substitution in Lab instrumentation - increase product range - Add new customers for vials & ampoules Maintain EBITDA Margins
Slide 41: Laboratory Glassware
Laboratory Glassware -- Meeting wide product range need of customer -- -- - Single supplier convenient for laboratory for multiple critical yet low ticket SKUs - - Not easily replicable by competition Quick & on-time delivery of SKU range - Investment in inventory, 6 warehouses & dealer network - We
Slide 42: Primary Packaging for Pharma
Primary Packaging for Pharma - Glass Ampoules & Tubular Glass Vials for packaging pharmaceutical products - Complements Borosil’s analytical vials range (used in the lab) - Provides Borosil’s Pharmaceutical Customers credible 2nd alternative for their packaging needs - Long lead times to pass string
Slide 43: Board of Directors
I Pradeep Kumar Kheruka Shreevar Kheruka Rajesh Kumar Chaudhary Chairman Vice Chairman and Whole Time Director Managing Director & CEO Anupa Rajeev Sahney Kewal Kundanlal Handa Kanwar Bir Singh Anand Naveen Kumar Kshatriya Independent Director Independent Director Independent Director Independent Di
Slide 44: Shareholding Pattern and Market Capitalization
No of issued shares of Re 1 each: 11,41,54,667 Shareholding Pattern: 2.8% Foreign - - - - - - ~ portfolio investors •I I____ _ 0.1% Other Bloomberg Ticker : 1369812D:IN • • institutions NSE Ticker: BOROLTD ·----- I I BSE Ticker: 543212 I I 26.7% Others Market Capitalization INR 4833 Cr as on - 31 De
Slide 45: Investor Relations
Company's address Borosil Limited 1101, Crescenzo,G-Block, Opposite MCA Club, Bandra Kurla Complex Bandra (East), Mumbai - 400 051. India ••• Company's website www.borosil.com www.myborosil.com Investor Relations: Anand Sultania, Chief Financial Officer (anand.sultania@borosil.com) Borosil Investor
Slide 46: borosil.com myborosil.com
borosi/.com I myborosi/.com -- -- -- l - ," / ' -- -- l ' -- l - - - l -- - -- I • • ' -- - - Borosil Investor presentation - Q3FY22 45