Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (May 2024)
60 slides from Grasim Industries's investor presentation, May 2024
Slide 1: Investor Presentation May 2024: Grasim, A Play on India Growth Story
Investor Presentation May 2024 GRASIM : A PLAY ON INDIA GROWTH STORY Grasim Industries Limited Investor Presentation 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute any recommendation or for
Slide 3: Driven by Our Purpose. Led by Our Values
DRIVEN BY OUR PURPOSE. LED BY OUR VALUES Passion Seamlessness Integrity Commitment Speed OUR TO ENRICH LIVES BY PURPOSE BUILDING DYNAMIC AND RESPONSIBLE BUSINESSES AND INSTITUTIONS, THAT INSPIRE TRUST.
Slide 4: Aditya Birla Group Is… Our Key Group Companies
ADITYA BIRLA GROUP IS… A US$ 65 billion* conglomerate Consolidated market cap of US$ 100# billion Across 6 continents and 40 countries 180+ state-of-the-art manufacturing units globally 187,000+ employees of over 100 nationalities 300M+ Loyal customer base IN ALUMINIUM ROLLING RECYCLER OF ALUMINIUM
Slide 5: Grasim's Leadership Across Key Components of Growing Economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY INDIA’s AMRIT KAAL KEY FACTORS Infrastructure & Housing RMC player Cement Producer Producer of White Demand Cement based Putty Strongest and fastest growing Diversified Financial Services Increasing among major economies Financialisation A
Slide 6: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 1 2 3 4 A Legacy of Values Track record of Diversified Sustainable and Trust creating large Businesses with Manufacturing growing Businesses Stable cashflow and Brands generation Increasing share of Operating history Revenue growth Positive Free Renewable power of 75+
Slide 7: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 5 6 7 History of continuous Strong Balance Sheet Value Creation Dividend Distribution with “AAA/Stable” rating ~1.8x For Consolidated D/E outperformance in >60 years <1x stock returns vs. benchmark over 10Yr and 5Yr period Grasim Industries Limited Investor Presentatio
Slide 8: Value Creation Strategy
VALUE CREATION STRATEGY Grasim Industries Limited Investor Presentation 8
Slide 9: Pillars of Our Strategy
PILLARS OF OUR STRATEGY LEADERSHIP SUSTAINABILITY COST CAPITAL LEADERSHIP Attain leadership INNOVATION Eco-friendly products position in all our & responsible ALLOCATION Continuous cost businesses Focus on innovation manufacturing optimisation in products and Investments in core processes and high g
Slide 10: Leadership Across Diversified Businesses
LEADERSHIP ACROSS DIVERSIFIED BUSINESSES Building Materials Businesses Other Businesses Cellulosic B2B Financial Chemicals Cement Paints Textiles Renewables Insulators Fibres E-Commerce Services Leading Leading UltraTech: 2nd largest Digital Aditya Birla Premium Presence in Leading producer of produ
Slide 11: Track Record of Creating Large Businesses & Brands
TRACK RECORD OF CREATING LARGE BUSINESSES & BRANDS Cellulosic Fibres Chemicals Building Materials Financial Services Revenue ( ₹ crore) 14,949 71,953 8,213 34,008 5,428 21,324 8,953 951 FY13 FY24 FY13 FY24 FY13 FY24 FY13 FY24 OUR LEADING BRANDS *Financials considered post-merger of Aditya Birla Nuvo
Slide 12: R&D and Innovation
R&D AND INNOVATION WORLD CLASS R&D FACILITIES COMMERCIALISED A VARIETY OF HIGH-VALUE PRODUCTS 1 5 2 1 Cellulosic Fibres Chemicals Corporate R&D R&D Centres R&D Centres R&D Centre Centre (Cellulosic (Chemicals & (Paints) Fibres) Others) Primary building blocks for Traceability of Pulp source from for
Slide 13: Sustainable Business Practices and Initiatives
SUSTAINABLE BUSINESS PRACTICES AND INITIATIVES SUSTAINABILITY RATINGS 68 BBB B DJSI(4) MSCI ESG CDP Climate Sustainable Products & Circular Economy Change score Ratings ▪ Innovations - LivaEco, Lyocell, Dope dyed, Liva Reviva Assessment ▪ Sustainable textiles: Linen, Wool & Premium cotton fabrics Re
Slide 14: Capital Allocation
CAPITAL ALLOCATION ₹11,388 Cr. 23% FOCUS ON GROWTH BUSINESSES ₹50,178* Cr. Total Consolidated 77% Capex# (₹ Cr.) 20,199 ₹38,790 Cr. 12,147 9,017 4,860 3,954 FY20 FY21 FY22 FY23 FY24 #Calculation based on the movement in gross block and CWIP. * Capex over 5-YR (FY20 to FY24). Grasim Industries Limite
Slide 15: Cost Leadership
COST LEADERSHIP CELLULOSIC FIBRES CHEMICALS PAINTS Strong Backward Integration Power Cost Efficient Manufacturing Caustic, pulp, power and Diversified sources (captive Right size plants with high steam + grid) of power with level automation and lean improving renewable energy systems mix Cost effici
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited Investor Presentation 16
Slide 17: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH REVENUE (₹ Cr.) EBITDA (₹ Cr.) 25,0 00 20,837 1,30,978 20,0 00 17,772 17,723* 1,17,627 1,40 ,000 15,766 13,615 1,20 ,000 95,701 15,0 00 76,404 1,00 ,000 80,0 00 75,141 10,0 00 60,0 00 40,0 00 5,00 0 20,0 00 - - FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Robus
Slide 18: Consistent Growth Leading to Strong Financials
CONSISTENT GROWTH LEADING TO STRONG FINANCIALS CONSOLIDATED As on As on As on Particulars 31st Mar 2023 31st Dec 2023 31st Mar 2024 Debt - Equity Ratio 0.82x 0.93x 0.97x Total debts to Total assets 0.30x 0.32x 0.33x Net debt* (₹ Cr.) 6,978 16,397 15,436 Net worth (₹ Cr.) 78,742 87,141 88,652 Grasim
Slide 19: Cellulosic Fibres Business
CELLULOSIC FIBRES BUSINESS Grasim Industries Limited Investor Presentation 19
Slide 20: Cellulosic Fibres: Fastest Growing Fibre
CELLULOSIC FIBRES : FASTEST GROWING FIBRE GLOBAL INDIA 12.8% CAGR 4.0% CAGR INDIA CELLULOSIC FIBRE GROWING 0.3% CAGR (0.8%) CAGR FASTEST WITH CAGR >2x 3.8% CAGR 4.5% CAGR CY15 CY23 CY15 CY23 OF OTHER FIBRES Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres 6% CELLULOSIC LIVA MOST
Slide 21: Cellulosic Fibres: Innovation
CELLULOSIC FIBRES : INNOVATION Circular Fashion Traceability: Forest to Fashion Scan here to know more CANOPY HOT BUTTON RANKING – HIGHEST RATING 2020 2021 2022 2023 Grasim Industries Limited Investor Presentation 21
Slide 22: Cellulosic Fibres: Key Macro Trends
CELLULOSIC FIBRES : KEY MACRO TRENDS CHINA OPERATING RATE AND INVENTORY DAYS GLOBAL PRICES TREND ($/KG) 85 74 2.65 69 2.49 2.19 24 22 1.81 1.77 1.65 13 1.05 1.05 0.93 FY22 FY23 FY24 FY22 FY23 FY24 China Operating Rates China Plant Inventory CSF - CCF Cotton (Cotlook) PSF China Cellulosic Average ope
Slide 23: Cellulosic Fibres: Key Operational Metrics
CELLULOSIC FIBRES : KEY OPERATIONAL METRICS CELLULOSIC STAPLE FIBRE (CSF) SALES (KT) CELLULOSIC FASHION YARN (CFY) SALES (KT) 810 44.2 43.7 711 41.4 602 FY22 FY23 FY24 FY22 FY23 FY24 CSF capacity CFY business CSF sales volumes for utilisation >95% led remains impacted by FY24 stood at highest by sta
Slide 24: Cellulosic Fibres: Financial Performance
CELLULOSIC FIBRES : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 15,149 14,949 1,721 1,722 12,210 1,031 FY22 FY23 FY24 FY22 FY23 FY24 Revenue supported Lower downstream by volume growth EBITDA grew by 67% demand from end-user partially impacted by YoY led by improved industries coupled with
Slide 25: Chemicals Business
CHEMICALS BUSINESS Grasim Industries Limited Investor Presentation 25
Slide 26: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO CHEMICALS’ CAPACITIES CHLOR- ALKALI 1,530 Q3FY25 1,168 Q1FY27 172 13% 139 15% 1,359 1,029 246 CHEMICALS CHLORINE DERIVATIVES PORTFOLIO Chlor-Alkali Chlorine Derivatives Speciality Chemicals Existing Capacity (KTPA) Capacity Expansion (KTPA) REVENUE BREAK-UP (%) SPECIA
Slide 27: Chemicals: Focus Areas
CHEMICALS : FOCUS AREAS CHLORINE INTEGRATION LEVELS (%) 62 60 Doubled Capacity of Epoxy polymers and curing agents SPECIALITY 58 to 246 KTPA, in December CHEMICALS 57 2023 FY21 FY22 FY23 FY24 Epichlorohydrin (ECH) 50 KTPA plant construction at Vilayat CHLORINE Leverage existing progressing well, mec
Slide 28: Speciality Chemicals: Epoxy Polymers and Curing Agents
SPECIALITY CHEMICALS : EPOXY POLYMERS AND CURING AGENTS EPOXY GROWTH DRIVERS PROTECTIVE COATING CONSTRUCTION RENEWABLES AUTOMOTIVE OTHERS India Industry 26% 22% 19% 18% 9% 6% Demand Mix (%) Market Share of Grasim's epoxy resin used in Total Patents filed >50% 2 out of 3 cars 8 GRASIM In India manufa
Slide 29: Chlor-Alkali: Key Operational Metrics
CHLOR-ALKALI : KEY OPERATIONAL METRICS CAUSTIC SODA SALES (KT) GRASIM – ECU (₹/TON) 1,145 1,205 47,951 1,044 36,034 32,109 FY22 FY23 FY24 FY22 FY23 FY24 International Caustic Highest ever sales ECU impacted by Soda (CFR-SEA) average volume of caustic oversupply in domestic spot prices appears soda l
Slide 30: Chemicals: Financial Performance
CHEMICALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 10,422 2,271 7,888 8,213 1,534 1,054 FY22 FY23 FY24 FY22 FY23 FY24 Revenue declined on account of lower Speciality EBITDA impacted by realisations in line Chemicals sales lower ECU and with the global prices volumes stood at Chlorine D
Slide 31: Building Materials Business
BUILDING MATERIALS BUSINESS Grasim Industries Limited Investor Presentation 31
Slide 32: Cement Business
CEMENT BUSINESS Grasim Industries Limited Investor Presentation 32
Slide 33: India Cement Industry Growth Drivers
INDIA CEMENT INDUSTRY GROWTH DRIVERS India is the second largest cement but remains a highly underpenetrated market producer in the world, Global Cement Production Per Capita Cement Consumption (in kg) 1430- 1480 32.3% 1170-1220 950-1000 51.7% 1.6% 600-650 1.1% 420-470 400-450 1.5% 380-430 9.3% 280-
Slide 34: Cement: Our Strengths
CEMENT : OUR STRENGTHS ULTRATECH : INDIA’S LARGEST SELLING CEMENT BRAND Leading Player of White One-stop building solution Scientifically engineered India’s Largest Largest manufacturer of Cement and Cement- 250 RMC plants in for the retail customer products to cater to Grey Cement Capacity RMC^ in
Slide 35: Cement: Performance Update
CEMENT: PERFORMANCE UPDATE During the year, UltraTech Continuous increase in added 13.8 mtpa grey green power mix, cement capacity across Green Power Mix UltraTech Building lower fuel costs and locations, taking India grey currently at 25.7%, Solutions (UBS) outlets operating leverage cement capacit
Slide 36: Decorative Paints Business
DECORATIVE PAINTS BUSINESS Grasim Industries Limited Investor Presentation 36
Slide 37: Decorative Paints: Growth Drivers
DECORATIVE PAINTS : GROWTH DRIVERS DECORATIVE PAINTS MARKET OPPORTUINITY Decorative Paints market is estimated to INDUSTRY SIZE UNORGANISED MARKET PER-CAPITA CONSUMPTION grow at CAGR of >10% over the next decade ₹ ~78,000 Cr. ~25% 3.5 kg (FY25) (vs. Global average of 10 kg) Urbanisation Housing Dema
Slide 38: Road to ₹10,000 Cr. Revenue and Profitable Player
ROAD TO ₹ 10,000 Cr. REVENUE AND PROFITABLE PLAYER DESIGN DISTRIBUTE DELIGHT Industry first wide scale Building launch, offering Superior Pan India complete and distribution network Customer superior product across 6000 towns Industry leading experience portfolio across six 6 serviced by 150 depots
Slide 39: Birla Opus: Set to Become 2nd Largest Paints Brand
BIRLA OPUS : SET TO BECOME 2nd LARGEST PAINTS BRAND Biggest Launch in the Indian Decorative Paints Market MANUFACTURING 6 1,332 MLPA 120 500 MLPA Fully backward integrated plants with Greater than combined current scientists at state-of-the-art R&D center Option of adding at lower capital cost PROWE
Slide 40: New Growth Business Progress Update
Commercial production commenced at three plants in Apr-24, construction of the other three plants is progressing as per schedule Multiple Dealer Meets Total Capex spent NEW GROWTH stood at ₹7,063 Cr. and Expos being held for Pan-India products (~70% of planned BUSINESS capital outlay) as on launch -
Slide 41: B2B E-Commerce Business
B2B E-COMMERCE BUSINESS Grasim Industries Limited Investor Presentation 41
Slide 42: B2B E-Commerce for Construction Materials
B2B E-COMMERCE FOR CONSTRUCTION MATERIALS INDUSTRY OPPORTUNITY Market $100 bn <2% >10% MSME Demand Market Size of Digital 3-YR CAGR across enabling efficient Opportunity Penetration building material procurement and Drivers Construction Materials Industry categories wide reach VALUE PROPOSITION PROD
Slide 43: Birla Pivot: Strategy for Scale Up
BIRLA PIVOT: STRATEGY FOR SCALE UP ASPIRATION OF $1 BILLION REVENUE IN NEXT 3-4 YRS. BUILD FRONTLINE PRIVATE FINANCIAL UNASSISTED SUPPLY SALES LABELS CREDIT JOURNEYS Deep expertise Focus on good Scale up “Birla Pivot” Scale up Financial Increase ease of and partnerships, customer experience brand ac
Slide 44: Birla Pivot: Performance Update
BIRLA PIVOT : PERFORMANCE UPDATE “Birla Pivot Tiles and Crossed milestone of Expanded offerings Plywood” garnering Technology platform ₹1,000 Cr. revenue in across 35 product good feedback; enabling end to end first year of categories comprising increasing its brand visibility of orders (real operat
Slide 45: Building Materials: Financial Performance
BUILDING MATERIALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 71,953 13,164 11,971 63,381 10,919 52,599 FY22 FY23 FY24 FY22 FY23 FY24 Cement revenue Revenue grew with grew by 12% YoY to EBIDTA includes major share from ₹69,810 Cr. with initial operating Cement business incremental losses
Slide 46: Financial Services Business
FINANCIAL SERVICES BUSINESS Grasim Industries Limited Investor Presentation 46
Slide 47: Financial Services: Our Strengths
FINANCIAL SERVICES : OUR STRENGTHS ADITYA BIRLA CAPITAL : DIVERSIFIED FINANCIAL SERVICES PLATFORM NBFC Housing Asset Management Life Health Insurance Insurance ₹ 1,24,059 Cr. ₹ 4,36,442 Cr. ₹ 20,961 Cr. Total Lending Portfolio1 Total AUM2 Gross Premium3 ₹ 70,547 Cr. ₹ 3,12,764 Cr. 4.16%/7.21% Retail
Slide 48: Aditya Birla Capital: Omni Channel Architecture
ADITYA BIRLA CAPITAL : OMNI CHANNEL ARCHITECTURE ABCD-D2C platform for customers Udyog Plus-B2B Robust & agile digital platforms platform for MSMEs B2D platform for channel partners One ABC 796 co-located branches Dedicated customer service locations across 220 locations managers for cross sell One
Slide 49: ABCD D2C Platform
ABCD D2C PLATFORM : 1 LAKH+ REGISTRATIONS ABCD APP & REFRESHED WEBSITE LAUNCHED IN APRIL 2024 FOR COMPLETE OMNICHANNEL2 EXPERIENCE Everything Finance As Simple As ABCD Simplicity • Unique and engaging design • Uncluttered layout with intuitive navigation 30Mn 20+ • Enabling ease of action with jargo
Slide 50: Udyog Plus Key Offerings
UDYOG PLUS: ₹ 500 Cr.+ DISBURSMENTS 8 lakh+ Registrations1, ~₹ 250 Cr. AUM Cash flow backed lending using traditional and alternate data sources along with value-added services for MSME ecosystem to manage and grow their business Opportunities in ABG Finance Opportunities Finance Business Solutions
Slide 51: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE TOTAL LENDING BOOK* (₹ Cr.) ASSET QUALITY TREND# (₹ Cr.) 1,24,059 54,682 80,452 1,05,686 3.58% 3.12% 2.51% 94,364 1.98% 2.72% 67,308 5.41% 94.16% 95.51% 91.02% FY22 FY23 FY24 FY22 FY23 FY24 Gross Stage 1 Gross Stage 2 Gross Stage 3 AMC - ASSET UNDER MANAG
Slide 52: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE REVENUE# (₹ Cr.) PBT (₹ Cr.) 34,008 3,884 27,365 * 22,094 2,617 1,923 FY22 FY23 FY24 FY22 FY23 FY24 Net Interest Margin for FY24 Udyog Plus, B2B platform for MSMEs improved by 6 bps to 6.90%, despite reached ~ ₹250 Cr. AUM, has higher cost of funds by 88
Slide 53: Others
OTHERS Grasim Industries Limited Investor Presentation 53
Slide 54: Other Businesses: Financial Performance
OTHER BUSINESSES : FINANCIAL PERFORMANCE REVENUE(1) (₹ Cr.) EBITDA(1) (₹ Cr.) 3,092 3,087 494 2,321 445 382 FY22 FY23 FY24 FY22 FY23 FY24 TEXTILES Linen business expanded its retail presence with no of EBOs at 231 stores and RENEWABLES MBOs touchpoints at The cumulative 9,071 installed capacity incr
Slide 55: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & Fibre Subsidiaries JVs Staple Fibre Vilayat Paints Rishra UltraTech Cement (57.27%)** AV Group NB Inc. Grey Cement Vilayat Nagda Panipat Malanpur (Canada) (45.0%)* o India Operations
Slide 56: Appendix
APPENDIX
Slide 57: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) FY23 FY24 % Change Revenue from Operations 1,17,627 1,30,978 11 Other Income 858* 1,264 47 EBITDA 17,723 20,837 18 EBITDA Margin (%) 15% 16% Finance Cost 1,320 1,655 25 Depreciation 4,552 5,001 10 Share in Profit of JVs, Associates & Others 209 89 -5
Slide 58: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) FY23 FY24 % Change Revenue from Operations 26,840 25,847 -4 Other Income 1,018 1,257 23 EBITDA 4,198 3,573 -15 EBITDA Margin (%) 15% 13% Finance Cost 368 440 20 Depreciation 1,097 1,215 11 PBT 2,733 1,917 -30 Add/(Less): Tax Expense (522) (256) -51 Add
Slide 59: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 31st Mar'24 31st Mar'23 EQUITY & LIABILITIES 31st Mar'24 31st Mar'23 (Audited) (Audited) (Audited) (Audited) 52,115 46,955 Net Worth 88,652 78,742 - - Non Controlling Interest 50,286 44,171 - - Borrowings related to Financial Services 1,08,322 83
Slide 60: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657