Grp Ltd · NSE:GRPLTD
Grp — Investor Presentation (February 2022)
46 slides from Grp's investor presentation, Feb 3, 2022
Slide 1: Stock exchange cover letter
03.02.2022 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai - 400 001. Mumbai - 400 051. Scrip code : 509152 Symbol : GRPLTD – Series: EQ Dear Sir / Madam, Sub: Investor Presentation Pursuant
Slide 2: Investor Presentation February 2022
Investor Presentation February 2022 Click Here for GRP LTD’s Corporate Video
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GRP Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 4: Performance Highlights
Performance Highlights GRP» IMPACT POSITIVE
Slide 5: Q3FY22 Performance (YoY)
Q3FY22 Performance ( YoY ) (in Rs. Mn) Revenue Gross Profit EBIDTA PAT +10% +19% 934.2 846.4 517.8 -15% 436.5 66.1 56.1 -52% 16.4 7.9 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Revenue / Profitability ▪ Q3FY22 Revenue grew by 10% on YoY basis on the back of ▪ Capacity rationalisation ac
Slide 6: 9MFY22 Performance (YoY)
9MFY22 Performance ( YoY ) Revenue Gross Profit EBIDTA PAT +45% (in Rs. Mn) +44% 2,772.0 1,438.8 +62% 1,914.4 152.3 33.5 1,000.6 94.3 -39.3 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 *Data on Consolidated Basis 5
Slide 7: Operational Highlights
Operational Highlights In spite of declining trend in auto on account of Lifetime high logistic costs affecting the GRPs chip shortage GRP has been able to achieve export model and thereby resulting in volume growth pressure on volumes & margins Rising freight costs are a deterrent of passing Freigh
Slide 8: Segment Wise Quarterly Performance Trend
Segment Wise Quarterly Performance Trend* Reclaim Rubber Revenue Trend Non-Reclaim Revenue Trend +6% 921 820 +34% 771 805 761 294 113 244 267 231 270 85 74 77 66 538 627 550 527 530 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Domestic Exports ✓ An overall dip in tyre sales
Slide 9: Segmental Financial Highlights
Segmental Financial Highlights* Reclaim Rubber Non-Reclaim Rubber Particulars (in Rs. Mn)* Q3FY21 Q3FY22 Q3FY21 Q3FY22 Revenue 771.4 819.6 74.2 113.5 Raw Material 374.5 352.0 38 67.1 Other Expenses 343.9 429.9 23.5 28.7 EBIDTA 52.9 37.7 1.26 17.7 EBIDTA Margin 6.9% 4.6% 17.1% 15.6% ✓ Reclaim Rubber
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (Rs. Mn) Q3FY22 Q3FY21 Y-o-Y / Bps Q2FY22 Q-o-Q / Bps 9MFY22 9MFY21 Y-o-Y / Bps Revenue 934.2 846.4 10% 1,007.0 -7% 2,772.0 1,914.4 45% Cost of Goods Sold 416.4 409.9 508.3 1,333.2 913.8 Gross Profit 517.8 436.5 19% 498.7 4% 1438.8 1,000.6 44% Gross
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Mn) Sep-21 Mar-21 Liabilities (Rs. Mn) Sep-21 Mar-21 Non-Current Assets 1,178.2 1,153.0 Equity Share Capital 13.3 13.3 Property, Plant and Equipment 954.4 994.4 Other Equity 1319.7 1,302.5 Capital work in progress 17.6 16.2 Equity attributable to owners of the
Slide 12: Positive and sustainable outlook
Positive and sustainable outlook… GRP has launched its ESG Profile on ESG MoEFC has proposed draft EPR norms World for waste tyres • ESG World allows companies to present sustainability strategies • 'Extended Producer Responsibility' means responsibility of to stakeholders in a real time and searcha
Slide 13: Introduction
Introduction GRP» IMPACT POSITIVE
Slide 14: Tyre Graveyards are increasing across the Globe
Tyre Graveyards are increasing across the Globe 7.6 Billion people 1.7 billion new Creating huge in the world tyres produced a year TYRE GRAVEYARDS… 1.4 Billion Over 1 billion waste vehicles on the road tyres generated per year … HUGE OPPORTUNITY 13
Slide 15: Presenting a Huge Opportunity
…presenting a HUGE OPPORTUNITY Huge tyre graveyards that can be seen GRP uses end-of-life tyres to Reclaimed rubber, Engineering plastics, Die- from Space recycle and manufacture cut products & Polymer Composite Products 14
Slide 16: It is our raison d'etre
It is our raison d’etre Recover, Recycle, Reuse’ is GRP’s raison d’etre as well as mantra for creating a clean planet ▪ GRP is one of the leading producers of reclaim rubber ▪ It recycles end- of-life tyres, automotive inner tubes, automobile profiles and moulded rubber products to produce consisten
Slide 17: Reduce, Reuse & Recycle
…to Reduce, Reuse & Recycle REDUCE • Manufactured from 100% recycled rubber POLYMER and plastics COMPOSITES • Product is environmental friendly, strong and durable as a substitute to wood & concrete • Custom die forms engineered from end of life CUSTOM truck and bus bias tyres used in application DI
Slide 18: Our Business
Our Business GRP» IMPACT POSITIVE
Slide 19: Believing in possibility of better tomorrow
Believing in possibility of better tomorrow… 7 Manufacturing Units with 76,100 Export presence in 60+ Countries tons/year capacity across 300+ customers 18% share in Indian Market & 50% of ~1.2 Mn End-of-Life tyres saved from India’s Export in reclaimed rubber reaching landfills Every Year Supplies
Slide 20: Since Four Decades & Counting
… since Four Decade & Counting Gujarat Reclaim and 1st Unit at Got its first ever Rubber Products Ankleshwar export order Limited incorporated 1974 1978 1984 2011 2006 1997 4th unit established 3rd Unit established Diversified in at Solapur at Panoli Custom Die Forms 2012 2014 2017 2020 5th Unit est
Slide 21: Serving the needs of Global Mobility Industry
…serving the needs of Global Mobility Industry 60+ 300+ Countries Customers Distributors 400+ Panoli Indore across 20 Vendors Ankleshwar countries Mumbai Sholapur Headquarters Reclaim Rubber C-DF 7 ~1450 Industrial Polymers R&D Centre Manufacturing Units Employees >75% customers belong to Transporta
Slide 22: Self designed Manufacturing Facilities
…supported by self designed Manufacturing Facilities Installed Capacity in MT Build up capacity for Reclaimed Rubber over the years 66,000 66,000 66,000 58,200 7,800 10,000 48,200 6,000 20,000 28,200 2,600 1,500 21,000 7,200 Industrial Custom Polymer Reclaimed 2,400 4,800 Polymers Die Forms Composit
Slide 23: R&D Capabilities
…with our R & D Capabilities Product Process Application ▪ Developing New ▪ Continuous ▪ Automation of Application across Development of New Processes diversified Industries Products ▪ Environment friendly ▪ Products designed ▪ Expansion in New – Zero Discharge based on Customer Product Categories a
Slide 24: Reclaim Rubber with Diversified Product Applications
…with Diversified Product Applications Tyre Application Inner Liner Inner Tubes Tyre Side Walls Tyre Piles Tyre Treads & Retreads Reclaim Rubber Non - Tyre Application Conveyor Belts Adhesives Automotive Roofing Footwear Profiles Moulded Goods Matting 23
Slide 25: Across Business Verticals
…across Business Verticals Industrial Polymers Custom Die Forms Industry Applications Applications Consumer Automotive Link Mats Door Mats Electrical & Electronics Industrial Industrial Mats Dock Bumpers Reprocessed Nylon Reprocessed Nylon Modified Nylon Dock Bumpers Door Mats Harvestor Pads Glass F
Slide 26: Across Business Verticals: Polymer Composite
…across Business Verticals Polymer Composite Industry Applications Commercial transportation Livestock transportation Military and Government Oil fields Transportation floor beds Oil rigs set back areas Air drop pallets 25
Slide 27: Major Tyre and Non Tyre Customer Relationships
…all Major Tyre and Non Tyre Customer Relationships The Brand Names mentioned are the property of their respective owners and are used here for identification purpose only. 26
Slide 28: Global Partnerships for Business Growth
…Global Partnerships for Business Growth Reclaim Rubber Polymer Composite Successful in setting up a Contract Manufacturing with an reclaim rubber unit in American company since 2017 to Malaysia and handed over to manufacture polymer composite the local partner products in India Custom Die Form Cont
Slide 29: Distinguished Board of Directors
…Distinguished Board of Directors Dr. Peter Philip Rajendra Gandhi Harsh Gandhi Rajeev Pandia Chairman & Non-Executive Director Managing Director Joint Managing Director Independent Director No. of Years of Experience : More than No. of Years of Experience : More No. of Years of Experience : 16 year
Slide 30: Distinguished Board of Directors
…Distinguished Board of Directors Mahesh Gandhi Alpana Parida Saurabh Shah Non-Executive Director Independent Director Independent Director No. of Years of Experience : More than No. of Years of Experience : 30 year No. of Years of Experience : More than 30 years in General Management Marketing care
Slide 31: Experienced Management Team
…with Experienced Management Team Hemant Kaul Shilpa Mehta Sanjeeb Lahri President Marketing & Kush Giramkar CEO of Marangoni GRP Chief Financial Officer Head HR & Ganesh Ghangurde Business Head Industrial Administration Polymers & Head Chief Compliance Officer Procurement • MBA, Leeds University •
Slide 32: Awards & Accolades
Awards & Accolades – Testimony to our raison d’etre EcoVadis CSR Rating 2017: BRONZE 2019: SILVER 2017 At GRP, we are committed to transitioning from a ‘recycled material company ’ to a ‘Sustainable Raw Material Company’. Therefore, embracing the certifications, partnerships required for achieving t
Slide 33: CSR – Impact Positive Initiatives
CSR – Impact Positive Initiatives ▪ Our CSR vision – "to contribute towards social and economic development of the communities where we operate in. And while doing the same, we want to build a sustainable way of life for all sections of society”. ▪ GRP believes in doing business the right way and en
Slide 34: Business Verticals
Business Verticals GRP» IMPACT POSITIVE
Slide 35: Manufacturer of sustainable products through 4 Business Verticals
…Manufacturer of sustainable products through 4 Business Verticals 34
Slide 36: Reclaim Rubber - Industry Leading Technology
Reclaim Rubber - Industry Leading Technology 1ST Company in India to design, fabricate and install an entire plant & machinery for manufacture of reclaim rubber from complete indigenous components VALUE PROPOSITION Strong focus on innovation and R & D with DSIR approved lab, 1st company in India to
Slide 37: Reclaim Rubber – Cost Effective Alternative
Reclaim Rubber – Cost Effective Alternative PRODUCT OFFERING NATURAL RUBBER RECLAIM • Whole Tyre Reclaim • Ultra High & High Tensile Reclaim • Natural Tube Reclaim SYNTHETIC RUBBER RECLAIM • Butyl & Chlorobutyl Reclaim • EPDM Reclaim SPECIALITY RUBBER RECLAIM • NBR Polycoat APPLICATIONS ▪ Tyres ▪ Wa
Slide 38: Industrial Polymer – Valuable Engineering Plastic
Industrial Polymer – Valuable Engineering Plastic INDUSTRY LEADING TECHNOLOGY TARGET MARKET & APPLICATIONS Fasteners, Clips, Bushes, Plugs, 1st Indian company to commercialize the concept of Cable Ties, Sleeves, Main fold recovery and reuse of polyamide from end-of-life AUTOMOTIVE Developed in-house
Slide 39: Custom Die Forms – Diverse Product Portfolio
Custom Die Forms – Diverse Product Portfolio PRODUCTS Converts end-of-life tyres to design products used for civil & agricultural applications Custom Die Forms are meant to absorb vibrations in heavy equipment and for insulation against sound GRP – CDF produces these products in collaboration with l
Slide 40: Polymer Composite
Polymer Composite ABOUT Polymer Composite Products ▪ GRP is the exclusive manufacturer to a US based company for supply of composite products Plastics Additive ▪ The composite products are manufactured from 100% recycled rubber and plastics Rubber ▪ The product is environmentally friendly, strong an
Slide 41: Growth Drivers
Growth Drivers GRP» IMPACT POSITIVE
Slide 42: We have built Sustainable Business
We have built Sustainable Business Brand GRP carries with it Upgradation of Process and Cost Effective by replacing 8 Manufacturing Units, 20 Trust of 4 Decades Products through innovation Virgin Rubber Polymer Distributors and 200 Vendors In-house Manufacturing Brand GRP Cost Technology & Effective
Slide 43: Usage of Reclaimed Rubber on a Growth Path
Usage of Reclaimed Rubber on a Growth Path Reclaimed Rubber Demand (Kilo Tonnes) ▪ Growing awareness regarding COST - EFFECTIVE and ECO - FRIENDLY alternatives for virgin rubber 7,729 ▪ Owing to its versatility, durability, reduced pollution and low processing 10.3% costs, WTR is expected to witness
Slide 44: Strategic shift towards increasing Reclaimed Rubber
With strategic shift towards increasing Reclaimed Rubber To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaimed Rubber. By 2050 companies envisages higher use of Recycled Rubber Source: Bridgestone Corporate Site 43
Slide 45: By major tyre manufacturing companies
By major tyre manufacturing companies “ In the Rubber Group, the use of recycled materials is assuming an increasingly important role. Production waste generated in physical/chemical processes is used as reclaim and adhesive mixtures as recycled products. “ In the year under review, the percentage o
Slide 46: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: L25191GJ1974PLC002555 CIN: U74140MH2010PTC204285 Mr. Ganesh Ghangurde Mr. Shrenik Shah Chief Compliance Officer shrenik.shah@sgapl.net ganesh.ghangurde@grpweb.com +91 96647 64465 www.grpweb.com www.sgapl.net 45