Orient Electric Ltd. · NSE:ORIENTELEC
Orient Electric — Investor Presentation (August 2019)
33 slides from Orient Electric's investor presentation, Aug 27, 2019
Slide 1: Scaling New Heights
SCALING NEW HEIGHTS AUGUST 2019
Slide 2: A Strong Heritage
A Strong Heritage BM Birla Founder & Chairman 1905 - 1982 A man of vision who turned his dreams into reality One of India’s outstanding business leaders GP Birla Chairman 1922 - 2010 A man who considered material worth secondary to his philanthropic values Ace industrialist; headed a diversi
Slide 3: A diversified business conglomerate
A diversified business conglomerate The CK Birla Group is a growing US $2 billion conglomerate that has a history of enduring relationships with renowned global companies. With over 25,000 employees, 41 manufacturing facilities, 21 service delivery locations and numerous patents and awards, the Grou
Slide 4: Orient Electric Limited
Orient Electric Limited One-stop-shop for lifestyle electrical solutions including fans, home appliances, lighting and switchgear 4
Slide 5: Board of Directors
Board of Directors Rakesh Khanna, K Pradeep Chandra, Alka Marezban Bharucha, Chandra Kant Birla, Desh Deepak Khetrapal and TCA Ranganathan (L-R) 5
Slide 6: Chairman's Message
Chairman’s Message “ The way to our future will not just be about the incremental but increasingly about the radical. We believe that the best way to protect our prospects would be through introduction of disruptive products. These products will not be as much ” about capturing market share as they
Slide 7: Leadership Team
Leadership Team Rakesh Khanna Saibal Sengupta Atul Jain Puneet Dhawan Saurabh Baishakhia Avani Birla MD & CEO Chief Financial Officer Business Head, Fans Business Head Business Head Sr. Vice President & International Business Lighting, Switchgear & Home Appliances Wiring Accessories Ashok K. Singh S
Slide 8: Overview
Overview Part of Over $2 Billion 65 Years Diversified business Conglomerate – CK Birla Group of Nurturing Trust Over Biggest Exporter of Fans 1,25,000 from India Retail touch points across India Presence in Largest Fans Manufacturer 40+ 4 in India Countries across Continents 8
Slide 9: Journey so far
Journey so far Aero Series Inducted into Fans Launched Started Manufacturing CK Birla Group Entered Lighting LED Lighting with Orient Electric Renamed Business with complete backward Demerges from Orient Fans CFL, FTL, and GLS integration Orient Paper Ltd. 1954 2008 2014 2017 1940 1990 2011 2015 201
Slide 10: Vision, Mission & Our Values
Vision, Mission & Our Values vision mission "We are a leading Indian electrical brand "Spreading Happiness by Smart with significant global presence. We are focused on making customers happy by consistently providing Application of Technology" smart electrical solutions through innovation, world-cla
Slide 11: Key Thrust Areas
Key Thrust Areas Innovation Widening and product Business Quality Enhancing Smart Design Channels Enhancement Brand Equity Savings Manufacturing Digitization Building People Power Corporate Excellence Efficiencies in Governance Supply Chain 11
Slide 12: Innovation in Product Design
Innovation in Product Design India’s First Smart Fan with Inverter Technology, IoT and Voice Enabled control India’s First IoT and Voice Enabled Air Cooler EyeLuv, India’s First LED lights with Flicker Control Technology India’s First Triple Layer Safety in Switches 12
Slide 13: Fueling the Premium Segment
Fueling the Premium Segment Clear leader in the Premium Segment Aeroquiet sets the cat amongst the pigeons, carving a new premium category Lifestyle range of fans meeting the emerging consumer needs 5 Blade TPW fans creating a stir in the premium segment With AeroSlim Orient captures more th
Slide 14: Continuous breakthroughs in Appliances
Continuous breakthroughs in Appliances Fast paced growth Metal body modular cooler aiming to dent the unorganized segment India’s First IoT and Voice Enabled Air Cooler IoT enabled Water Heaters range for 2019 14
Slide 15: Partnering with the World's Best
Partnering with the World’s Best 15
Slide 16: Illuminating lives & spreading good health
Illuminating lives & spreading good health Fastest growing lighting company First to launch 3 star & 5 star LED Lamp EyeLuv, India’s First LED lights with Flicker Control Technology Strong in-roads in Street Lighting Robust growth in Tender Business 16
Slide 17: Safety at every click
Safety at every click Fastest Expanding business at Orient Vast range of MCB & RCCB with the safest SDB technology Premium range of Switches with 3AB tech launched Introduced wide range of Distribution boards Wide range of electrical accessories to support the product basket 17
Slide 18: Manufacturing Excellence
Manufacturing Excellence 55% of Manufacturing is in-house Largest manufacturer of Fans in India with installed capacity of 1.25 Cr. fans DSRI approved R&D lab Second largest manufacturer of LED Lamps in India with installed capacity of 4 Cr. Lamps Manufacturing capacity of 65 lac Switchgear
Slide 19: Manufacturing & Warehouse locations
Manufacturing & Warehouse locations 5 Factories 26 Warehouses 22 Branches Over 450 Service Centres Factories Warehouses Branches 19
Slide 20: Widening Business Channels
Widening Business Channels Over 1,25,000 Retail touch points across India Over 30,000 retailers enrolled in last 2 years Leading brand in E-Commerce Strong B2B teams in Lighting & Switchgears 20
Slide 21: Digitization
Digitization Rollout of Sales Force Automation Product Traceability & Demand Forcasting Business Intelligence & DMS Embarking on an end-to-end digital journey by FY22 21
Slide 22: Quality Enhancement
Quality Enhancement Plan for setting up New Manufacturing Plant in South India by FY21 Major focus on cost leadership with process Automation Expertise in LED Driver Design and development of LED Driver, PCB Designing Certificate of reliability: ISO 9001:2008, for quality Management system
Slide 23: Building Efficiencies in Supply Chain
Building Efficiencies in Supply Chain Centralization of fans warehousing to mother depot in North and ramping down warehousing locations pan India Space optimization in Warehouses across businesses with enhanced SNOP Strengthening controls and improving efficiencies of deliveries Stepping up
Slide 24: Enhancing Brand Equity
Enhancing Brand Equity Mega Campaign for AeroSlim making Orient the highest recalled brand Superbrand for Fans & Air Cooler EyeLuv LED campaign is making Orient Lighting a recognized brand in the segment First campaign for Air Cooler helps to double up sales Amongst the top 15 most trusted
Slide 25: People Power
People Power Average age of employees is at 37 years Institutionalization of Learning & Development Diversity ratio improvement by 200% Employee engagement rate shows significant improvement 25
Slide 26: Smart Savings
Smart Savings “Penny saved is a penny earned”, Sanchay program over the years has institutionalized the process of continuous thinking and ideation on how we can save more. In 2019 Sanchay 2.0 has been re-launched to focus on new & more areas from where efficiencies can be built and saving can be ac
Slide 27: Corporate Governance
Corporate Governance Enhancing Transparency & Controls Diversity in the Board with independence of management and sufficient expertise Independent audit function with quarterly audits and streamlined processes for internal financial controls Prompt reporting to shareholders on financial and no
Slide 28: Our Journey in the last 5 years
Our Journey in the last 5 years Sales Realisation (` Cr.) 13% CAGR 17% CAGR 1,161 1,289 1,358 1,625 1,864 2014-15 2015-16 2016-17 2017-18 2018-19 *` 703 Cr added in the last 4 years 28
Slide 29: Financial Highlights: Statement of Profit & Loss
Financial Highlights: Statement of Profit & Loss (In ` Cr.) PARTICULARS QTD- Q1 2019 QTD- Q1 2018 Growth INCOME Revenue from operations 568 433 31% Other income 1 2 -73% Total Income 569 435 31% EXPENSES Cost of Goods Sold 382 286 33% Employee benefits expense 49 42 17% Finance costs 7 5 29% Depreci
Slide 30: Financial Highlights: Cash Flows
Financial Highlights: Cash Flows Net cash flow from Operating Activities ( ` Cr.) Net Cash flow used in Investing Activities ( ` Cr.) 132 31 100 6 FY 2019 Q1 FY 2020 FY 2019 Q1 FY 2020 CAPEX = 35 CAPEX = 6 Net Cash flow used in Financing Activities ( ` Cr.) 100 93 FY 2019 Q1 FY 2020 30
Slide 31: Key Performance Indicators
Key Performance Indicators Debt Equity Ratio Debt ( ` Cr.) 186 0.71 0.44 135 FY 17-18 FY 18-19 2017-18 2018-19 ROCE % Net Block ( ` Cr.) 110 121 29% 27% FY 17-18 FY 18-19 FY 17-18 FY 18-19 31
Slide 32: Enhancing Shareholder Value
Enhancing Shareholder Value Shareholding Pattern Market Capitalisation ( ` Cr.) Dividend ( ` ) 3,438 FY 2018 FY 2019 3,238 DIIs & Promoters Interim= 0.5 Interim= 0.5 Corporates 38% 38% 2,928 8% 16% FII Public Final= 0.5 Final= 0.5 14 May 2018 31 Mar 2019 14 Aug 2019 EPS ( ` ) 3.27 3.02 FY 2018 FY 20
Slide 33: Thank you
Follow us on Email: investor@orientelectric.com Thank you 33
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