Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (September 2024)
60 slides from Grasim Industries's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 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: Our Purpose
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 and Our Key Group Companies
ADITYA BIRLA GROUP IS… A US$ 66 billion* conglomerate Consolidated market cap of US$ 113# billion Across 6 continents and 40 countries Present across 20+ sectors 180+ state-of-the-art manufacturing units globally 187,000+ employees of over 100 nationalities 300M+ Loyal customer base IN ALUMINIUM ROL
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 ~2x outperformance For Consolidated D/E in stock returns vs. >60 years 1x benchmark over 10Yr and 5Yr period Grasim Industries Limited Investor Presentation 7
Slide 8: Value Creation Strategy
VALUE CREATION STRATEGY Grasim Industries Limited Investor Presentation 8
Slide 9: Pillars of Our Strategy
PILLARS OF OUR STRATEGY BUSINESS COST SUSTAINABILITY LEADERSHIP LEADERSHIP INNOVATION Eco-friendly products CAPITAL Attain leadership & responsible ALLOCATION Continuous cost position in all our Focus on innovation manufacturing optimisation businesses in products and Investments in core processes a
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 FY18 FY23 OUR LEADING BRANDS *Financials considered post-merger of Aditya Birla Nuv
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 65 BBB B 27.6 DJSI(4) MSCI ESG CDP ESG Sustainable Products & Circular Economy score Ratings Climate Change Risk Rating ▪ Innovations - LivaEco, Lyocell, Dope dyed, Liva Reviva ▪ Sustainable textiles: Linen, Wool & Premium cotton
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.) 1,30,978 1,33,774 20,837 20,615 1,17,627 17,772 17,723 * 95,701 15,766 76,404 FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 TTM Robust performance of Cement and Financial Cellulosic Fibres and Chemicals businesses Services business are m
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 Mar 2024 30th Jun 2024 Net worth (₹ Cr.) 78,742 88,652 93,317 Debt - Equity Ratio 0.82x 0.97x 1.00x Debt* - Equity Ratio 0.15x 0.19x 0.21x Net debt* (₹ Cr.) 6,978 15,436 19,028 Total debts to
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 11.6% CAGR 3.5% CAGR INDIA CELLULOSIC FIBRE GROWING 0.2% CAGR (0.5%) CAGR FASTEST WITH CAGR >2x 3.4% CAGR 4.5% CAGR CY15 CY23 CY15 CY23 OF OTHER FIBRES Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres ~6% CELLULOSIC LIVA MOS
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) 82 85 82 2.14 2.07 1.91 1.67 1.59 1.64 16 12 12 0.95 0.93 0.94 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 China Operating Rates China Plant Inventory CSF - CCF Cotton (Cotlook) PSF* Cellulosic Stap
Slide 23: Cellulosic Fibres: Key Operational Metrics
CELLULOSIC FIBRES : KEY OPERATIONAL METRICS CELLULOSIC STAPLE FIBRE (CSF) SALES (KT) CELLULOSIC FASHION YARN (CFY) SALES (KT) 212 10.8 208 9.3 9.5 187 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 CSF capacity CFY business CSF sales volumes stood utilisation >95% led remains impacted by at its highest q
Slide 24: Cellulosic Fibres: Financial Performance
CELLULOSIC FIBRES : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 3,787 3,762 462 390 405 3,584 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 CFY margin were Revenue supported CSF EBITDA was down YoY led by by volume growth higher by 16% YoY weak demand and partially impacted by led by lower inpu
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 FY26 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 (%) SPECIALT
Slide 27: Chemicals: Focus Areas
CHEMICALS : FOCUS AREAS CHLORINE INTEGRATION LEVELS (%) 65 62 Doubled Capacity of Epoxy 60 polymers and curing agents SPECIALITY CHEMICALS 58 to 246 KTPA, in December 2023 FY22 FY23 FY24 Q1FY25 Epichlorohydrin (ECH) 50 KTPA plant construction at Vilayat CHLORINE Leverage existing progressing well, m
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) 292 308 34,729 282 30,427 32,529 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Caustic Soda sales Improved caustic prices International Caustic volume stood lower and demand recovery in Soda (CFR-SEA) spot on account of
Slide 30: Chemicals: Financial Performance
CHEMICALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 2,146 2,083 2,066 358 310 195 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Domestic caustic Speciality Chemicals EBITDA improved QoQ prices remain lower sales volumes and driven by improvement due to recent capacity revenue contribution i
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 - FY23 (kg/annum) 1,430-1,480 1,110-1,130 32.2% 950-980 51.1% 750-780 World average: 500-550 1.6% 420-470
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 EBITDA stood flattish Grey cement capacity Green Power Mix of UltraTech Building on YoY basis at ₹3,205 expanded by 8.7 MTPA in 29.4% (22% in Q1FY24) Solutions (UBS) outlets Cr. despite lower Q1FY25, taking total grey include WHRS power increased to 4,022; realisations, he
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 ₹ ~80,000 Cr. ~25% 3.5 kg (FY25e) (vs. Global average of 10 kg) Urbanisation Housing Dem
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 Performance Update
Operations ramping up at three plants commenced in Apr’24, trial run production started at Chamarajanagar, construction activity at other two plants is progressing as per schedule Dealer onboarding in Total Capex spent progress pan-India across all NEW GROWTH stood at ₹7,795 Cr. states and union ter
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 First export order to Building a retail Quarterly revenue run- Scaling up of credit Nepal executed; distribution channel for rate now over ₹550 Cr., programs across with delivered orders to Private labels “Birla continued revenue multiple lending over 200 cities acro
Slide 45: Building Materials: Financial Performance
BUILDING MATERIALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 20,919 4,150 17,867 18,701 3,143 2,909 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Cement business revenue stood EBIDTA was lower Revenue growth aided on account of higher by 2% by new growth investments in the ₹18,070 Cr., led
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 ₹ 1,27,705 Cr. ₹ 4,62,891 Cr. ₹ 5,027 Cr. Total Lending Portfolio1 Total AUM2 Quarterly Gross Premium3 ₹ 70,616 Cr. ₹ 3,52,542 Cr. 4.5%/10.8
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 825 co-located branches Dedicated customer service locations across 231 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: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE TOTAL LENDING BOOK* (₹ Cr.) ASSET QUALITY TREND# (₹ Cr.) 85,778 1,05,686 1,07,292 1,24,059 1,27,705 1,00,287 2.82% 2.51% 2.54% 1.98% 1.91% 2.64% 94.54% 95.51% 95.55% Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Gross Stage 1 Gross Stage 2 Gross Stage 3 AMC -
Slide 51: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE REVENUE# (₹ Cr.) PAT^ (₹ Cr.) 10,484 812 745 8,807 649 7,030 * Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 ABCD@ commercially launched in Total Lending Porfolio** increased by Q1FY25 with more than 20+ products 27% YoY. Loans to Retail, SME and and services
Slide 52: Others
OTHERS Grasim Industries Limited Investor Presentation 52
Slide 53: Other Businesses: Financial Performance
OTHER BUSINESSES* : FINANCIAL PERFORMANCE REVENUE* (₹ Cr.) EBITDA* (₹ Cr.) 129 753 790 798 109 105 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 TEXTILES Linen business profitability impacted by higher flax prices RENEWABLES The cumulative installed capacity increased to 946 MWp, of which 43% is with Gr
Slide 54: 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 55: Appendix
APPENDIX
Slide 56: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q1FY25 Q1FY24 % Change Q4FY24 % Change Revenue from Operations 33,861 31,065 9 37,727 -10 * Other Income 300 296 1 427 -30 EBITDA* 4,760 4,981 -4 6,196 -23 EBITDA Margin (%) 14% 16% 16% Finance Cost 481 361 33 463 4 Depreciation 1,368 1,183 16 1,329
Slide 57: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q1FY25 Q1FY24 % Change Q4FY24 % Change Revenue from Operations 6,894 6,238 11 6,768 2 Other Income 93 116 -20 260 -64 EBITDA 418 789 -47 787 -47 EBITDA Margin (%) 6% 12% 11% Finance Cost 140 106 32 121 16 Depreciation 349 288 21 339 3 PBT (70) 396 -118
Slide 58: Standalone Capex Plan
STANDALONE CAPEX PLAN Planned Capex Capex Spent Particulars (₹ Cr.) FY25 Q1FY25 Cellulosic Fibres Business 708 96 Capacity Expansion (including debottlenecking) 100 23 Modernisation and Maintenance Capex 608 73 Chemicals Business (A+B+C) 800 138 (A) Capacity Expansion - Chlor-Alkali & Chlorine Deriv
Slide 59: Balance Sheet
BALANCE SHEET Standalone (₹ Cr.) Consolidated (₹ Cr.) 30th Jun'24 31st Mar'24 EQUITY & LIABILITIES 30th Jun'24 31st Mar'24 (Unaudited) (Audited) (Unaudited) (Audited) 55,416 52,115 Net Worth 93,317 88,652 - - Non Controlling Interest 51,441 50,286 - - Borrowings related to Financial Services 1,13,58
Slide 60: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657
Grasim Industries — Investor Presentation (September 2024) on 6ix