Slide 1: Exchange filing cover letter for corporate presentation
Date: 17th October 2024 To To Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, C-1, G-Block, Bandra-Kurla Complex Dalal Street, Mumbai, MH - 400001 Bandra (E), Mumbai, MH - 400051 Scrip Code: 542652 Scrip Symbol: POLY
Slide 2: Corporate Presentation October 2024
Corporate Presentation October 2024
Slide 3: Content
Content ❑ Company Overview ❑ Macro Opportunities ❑ Leadership in Wires & Cables ❑ Well Established FMEG Business ❑ Strengthening Brand Recognition ❑ Strong Manufacturing and R&D capabilities ❑ ESG ❑ Robust Financials ❑ Project LEAP ❑ Corporate Governance ❑ CSR ❑ Shareholding Pattern
Slide 4: Company Overview
Company Overview Polycab India Limited | Corporate Presentation 3
Slide 5: Polycab: A Snapshot
Polycab: A Snapshot #1 Manufacturer in India PAN India Network Well-footed FMEG player Market leader in Wires & Cables1 3,800+ Dealers & 8-year CAGR at 25% ~25-26% Share of Organized Distributors Market2 Well balanced product 2,05,000+ Retail Outlets portfolio; 6,000+ SKUs Manufacturing Footprint St
Slide 6: Our Journey
Our Journey Promoters Set up a facility Investment from Forayed into the Manufacturing of Commenced Long-term bank established IPO: Listing on for PVC insulated IFC of ₹ 4,018 Mn switches segment ceiling fans at BSE & NSE on 16 manufacturing facilities rating the business power cables house Roorkee,
Slide 7: Our Segments: An Overview
Our Segments: An Overview % of External Sales 88% Wires & Cables FY 24 Total 7% Revenue Fast Moving Electrical ₹ 180,394 Mn Goods 5% Others (incl. EPC) Polycab India Limited | Corporate Presentation 6
Slide 8: Key Management Initiatives to Create Value
Key Management Initiatives to Create Value Enhance Brand Awareness and Customer Loyalty Scale up International Business Improvement in Supply Chain Focus on Profitable growth Expansion of Manufacturing Capacity Governance & Performance based Culture Improvement in Production Process Working on Susta
Slide 9: i-POWER
i-POWER Purpose Values Connecting all to a brighter future Innovative mindset Giving wings to novel ideas Our innovative, safe and energy efficient products and Caring about our people and People at the core solutions delight our customers their growth Serving to create delightful Our vibrant and in
Slide 10: Macro Opportunities
Macro Opportunities Polycab India Limited | Corporate Presentation 9
Slide 11: Indian Cable & Wire Industry is Poised for Sustained Growth
Indian Cable & Wire Industry is Poised for Sustained Growth Indian Cable & Wire Industry projected to grow near ~2x GDP (vs ~1.5x GDP historically) Indian Cable & Wire Market (₹ Bn): Key Demand Drivers: ~12-14% CAGR (2x GDP) Robust Domestic Demand • Government’s thrust on infrastructure ~1,150 ~115,
Slide 12: Power T&D expected to attract investments of ~₹3.5 Tn over next 5 years
Power T&D expected to attract investments of ~₹ 3.5 Tn over next 5 years India Installed Power Capacity (GW) Expected Addition in Transmission Lines Energy 777 41 80 140 Power T&D and Renewable 434 280 Energy Network Expansion 63 45 76 15 Driving Industry Growth 251 277 Feb-24 FY30E Other Renewable
Slide 13: Government plans to increase Manufacturing Contribution to GDP to 25%
Government plans to increase Manufacturing Contribution to GDP to 25% (from 17% in FY23) Investment under PLI Scheme (₹ Tn) ₹ 4.4 Tn Expected Investment Considering FY28 to Manufacturing be final year of PLI 2.5 . 5.5 . scheme, ~₹ 4.4 Tn Production Linked investment is Incentive Schemes (PLI) . expe
Slide 14: Indian Real Estate Sector is expected to be $1Tn by 2030
Indian Real Estate Sector is expected to be $ 1Tn by 2030 from $200 Bn in 2021 (19.5% CAGR) Rapid Urbanization Fuels Residential Demand India Office Space – New Supply (Mn Sq Ft) Real Estate Cities With 1 Mn Plus Population Urbanization in India 41 38 Residential & Commercial 76 74 43% 40% 31 Real E
Slide 15: Growth led by public capex; Sunrise Sectors (EV, Data Centers)
Growth led by public capex; Super Normal Growth in Sunrise Sectors (EV, Data Centers etc.) EV Outlook (2W & 4W in ‘000) Upcoming Data Center Capacity (in MW) Mobility 10,000 600 503 471 304 300 363 Mobility Infrastructure 251 200 121 102 Under Massive Transformation to Support 1,000 Economic Growth
Slide 16: Global Cable & Wire Industry
Global Cable & Wire Industry Global Cable & Wire Industry projected to grow at ~7% to reach $410 Bn by 2030 Key Demand Drivers China + 1 Policy Data Centers and Digitization • Global Companies looking to diversify their supply • Global Data Center investments will be on a high chain away from China
Slide 17: India's Growth Story to Propel FMEG Industry
India’s Growth Story to Propel FMEG Industry India’s Favorable Demographics & Macro-Economics to Drive Discretionary Spending India to Become 3rd Largest Economy, after USA & China India’s GDP to cross $5Tn mark by FY28 Increase in Worker Population Ratio (WPR), thus lowering dependency ratio Nomina
Slide 18: Leadership in Wires & Cables
Leadership in Wires & Cables Polycab India Limited | Corporate Presentation 17
Slide 19: Market Leader in Wires & Cables With a Diverse Portfolio
Market Leader in Wires & Cables With a Diverse Portfolio Polycab is the largest Wires and Cables manufacturer in India, with a Wide Customer Base across Industries… strong suite of products… Optical Fiber Power Cable Building Wires Power Oil and Gas Construction Cable FR (Flame Retardant) IT Park In
Slide 20: Dominant Position in Wires and Cables Industry
Dominant Position in Wires and Cables Industry Market Size ~ ₹ 800 Bn (~40–45% of the electrical equipment industry) Healthy Market Share Gains in Wires & Cables over the past few years Market Share in FY24(1) FY24 Wires & Cables Revenue(2) 25-26% 18-19% c ee 2.1x ee 2.5x Organized Market Total Mark
Slide 21: Powering India's Development
Powering India’s Development Navi Mumbai Airport NH66 Highway Jawahar Tunnel, J&K Specialized Projects Infrastructure Commercial & Urban Development • Defence (Battery Charging Unit, Sikkim) • Power Plant (Lakwa Thermal Power Project) • Mall (Lulu Mall, Calicut) • Mining (Seabird Karwar, Karnataka)
Slide 22: Economic Moat in Wires & Cables Business
Economic Moat in Wires & Cables Business Only Manufacturer of all types of Wires & Cables in India Polycab has the most extensive range of wires and cables in India, with ~10,700 SKUs and global certifications Strong Channel Relationships Superior Quality Products Strong relationships with channel p
Slide 23: Opportunities in Focus
Opportunities in Focus Supply Chain Diversification Certifications & Approvals Setting up Distribution Network India gaining from global Actively working on Looking to replicate distribution International Business search for supply chain certifications and product approvals for new countries. networ
Slide 24: Well Established FMEG Business
Well Established FMEG Business Polycab India Limited | Corporate Presentation 23
Slide 25: FMEG: Expanding presence in 'Electricals' ecosystem
FMEG: Expanding presence in ‘Electricals’ ecosystem FMEG is now a sizeable part of the business - growing at 25% CAGR in past 8 years Mobile App Forayed in FY14 ... ▪ Diversified portfolio with focus on the upcoming industry trends ▪ In-house Manufacturing ▪ Strong Backward Integration ▪ Pan India D
Slide 26: High Growth Opportunity in the Indian FMEG Industry
High Growth Opportunity in the Indian FMEG Industry Macro drivers include evolving consumer aspirations, increasing awareness, rising income, rural electrification, urbanisation, digital connectivity, smart home solutions Fans & Appliances Switches LV Switchgear Lighting ₹ 155 Bn ₹ 90 Bn ₹ 25 Bn ₹ 2
Slide 27: Growth Engine
Growth Engine Distribution Expansion Premiumization Increased focus on whitespaces where Leveraging product innovation and Polycab currently has little or no presence. brand building activities to drive sales Adopting alternate sales platforms like e- of premium products, which are commerce, modern
Slide 28: Multi Format Retail Approach: Polycab Galleria, Arena & Shoppee
Multi Format Retail Approach: Polycab Galleria, Arena & Shoppee ❑ Strategic showcase enabling consumers and trade constituents to experience and choose from a wide range of quality products ❑ At iconic electric markets hub which is also an important feeder market to western and southern India ❑ Equi
Slide 29: Strengthening Brand Recognition
Strengthening Brand Recognition Polycab India Limited | Corporate Presentation 28
Slide 30: Strong Brand Recognition in the Electricals Industry
Strong Brand Recognition in the Electricals Industry Our Brand Journey from B2B to B2C ‘Connection Zindagi Ka’ was a hit with customers- the impactful narrative with their minds and hearts Corporate Ayushmann Official Sponsor Commercial, Khurana (Actor) Elevated our brand amongst Top 3 in house wire
Slide 31: Strengthened Further Using Multi-Pronged Approach
Strengthened Further Using Multi-Pronged Approach Advertising and Sales Promotion Expenses ( ₹ Mn) 1,989 163 FY14 FY24 Multi-pronged Actively engage Loyalty Points via Increased Advertising approach to increase Dealers and Experts Program on Social Media and brand awareness Distributors Sales Promot
Slide 32: Pan-India Distribution Network to Support Diverse Customer Base
Pan-India Distribution Network to Support Diverse Customer Base and Product Categories By Product By Geography 28% 21% North Wire & Cables 21% South 3,800+ authorized dealers & distributers FMEG East Common 48% 24% West 29% 29% 2,900+ FMEG dealers and distributors pan- India 205,000+ retail outlets
Slide 33: Catering to Marquee Customers
Catering to Marquee Customers Total Revenue Contribution in FY24 Oil & Gas Top Customer 4% Top 5 Customers 14% Metal Export Top 10 Customers 23% Rest of the 77% Infrastructur Customers e Paints Revenue from International Business (% of total revenue) Chemicals Auto 12.4% 9.8% Cement Telecom 8.5% 7.6
Slide 34: Strong Manufacturing and R&D Capabilities
Strong Manufacturing and R&D Capabilities Polycab India Limited | Corporate Presentation 33
Slide 35: Inhouse Manufacturing with High Backward Integration and Automation
Inhouse Manufacturing with a High Degree of Backward Integration and Automation… Multi-location manufacturing (Products1; Annual capacity) Roorkee Fans 3.0mn Halol Fan Manufacturing Unit Halol& Daman Wires & Cables 6 mn kms Fans 6mn Nashik Switches 12mn Switchgears 24.0mn Pipes & Conduits: 24,000 MT
Slide 36: Strong R&D & Innovation Capabilities with Quality Assurance
…Strong R&D & Innovation Capabilities with Quality Assurance Investments in in-house R&D capabilities with strong focus on Our Ecological Initiative backward integration • NABL ISO 17025 certified R&D centre to support own manufacturing • ~90 engineers and technicians Green Wire BLDC Fan • Centre of
Slide 37: ESG
ESG Polycab India Limited | Corporate Presentation 36
Slide 38: Polycab ESG: Journey so far
Polycab ESG: Journey so far Connecting All to a Brighter Future FY’2020 FY’2022 FY’2024 • 1st BRSR Report • Comprehensive • Materiality Annual Report • GHG GHG 1st Integrated Report Assessment +BRR Inventorization (Including BRR) Inventorization • GRI Limited • BRSR Core- Assurance • ESG Targets Rea
Slide 39: ESG Strategy
ESG Strategy • Our innovative, safe and energy efficient products and solutions delight our customers Polycab’s Purpose – • Our vibrant and inclusive culture leads to deep connections, value creation and growth for our “Connecting All to a Brighter Future“ People, Partners and Stakeholders • Our foc
Slide 40: ESG Approach
ESG Approach Understanding Establishing Developing Refining Measuring Verification through stakeholder needs ESG roadmap and operations & impact and internal audits and and material ESG Governance ownership processes improving external assurance risks Communicating ESG Performance through ESG Report
Slide 41: Robust Financials
Robust Financials Polycab India Limited | Corporate Presentation 40
Slide 42: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Revenue (₹ Mn) EBITDA (₹ Mn) EBITDA Margin % PAT (₹ Mn) PAT Margin % 8.7% 8.4% 9.1% 10.0% 12.8% 12.6% 13.1% 13.8% 6.9% 11.9% 6.3% 10.3% 1,80,394 18,029 24,918 1,41,078 1,22,038 18,429 12,831 79,856 88,300 87,922 11,276 11,117 12,626 7,656 7,415 8,452 9,50
Slide 43: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance ROCE/ROE (%) Debt/Equity ratio (times) Improving returns and surplus ROCE ROE ROCE Post Tax cash to fuel future growth 27.9% 29.6% 0.10x 26.4% 25.9% 22.6% 20.7% 20.4% 19.4% 20.0% 17.5% 0.05x 15.4% 15.2% 21.9% 0.04x 18.5% 19.9% 19.2% 15.4% 0.02x 15.5% 0.01
Slide 44: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars ( ₹ Mn) FY 2024 % FY 2023 % FY 2022 % Revenue from Operation 1,80,394 100.0% 1,41,078 100.0% 1,22,038 100.0% Cost of Goods sold 1,32,803 73.6% 1,05,109 74.5% 94,657 77.6% 43 Contribution (A) 47,591 26.4% 35,969 25.5% 27,381 22.4% Employee cost 6,095
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars ( ₹ Mn) FY 2024 FY 2023 FY 2022 Particulars (₹ mn) FY 2024 FY 2023 FY 2022 Assets Equity & Liabilities Non-Current Assets Shareholder's Funds 44 Fixed Assets 29,160 23,177 20,598 Share Capital 1,502 1,498 1,495 Non-current Deposits 58 6 126 Reserves and Surplus
Slide 46: Consolidated Annual Cash Flow Statement
Consolidated Annual Cash Flow Statement Particulars ( ₹ Mn) FY 2024 FY 2023 FY 2022 Net Cash Flow from Operating Activities 12,962 14,275 5,116 Net cash flow from/(used in) investing activities -7,519 -12,026 -4,270 Net cash flow from/(used in) financing activities -3,874 -2,271 -2,007 Net Increase
Slide 47: Pillars of Financial Assurance: Auditors & Credit Ratings
Pillars of Financial Assurance: Auditors & Credit Ratings Experienced Auditors Auditors Statutory Auditors Internal Auditors Cost Auditors Secretarial Auditors Auditors B S R & Co. LLP Ernst & Young LLP R. Nanabhoy & Co BNP & Associates Credit ratings Rating Agency Long Term Rating Short Term Rating
Slide 48: Financial Results: Q2 FY25
Financial Results: Q2 FY25 Top-line Operating Profitability Profitability (PAT) Top-line (Revenue) (Revenue) Operating (EBITDA) (EBITDA) Profitability (PAT) (PAT) Q2 FY25: 54,984 Mn Q2 FY25: 6,316 Mn Q2 FY25: 4,452 Mn 30% YoY 4% YoY 4% YoY 17% QoQ 8% QoQ 11% QoQ H1 FY25: 1,01,965 Mn H1 FY25: 12,149
Slide 49: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Quarter Year To Date Particulars (₹ Mn) Q2 FY25 % Q1 FY25 % Q2 FY24 % H1 FY25 % H1 FY24 % Revenue from Operations 54,984 100.0% 46,980 100.0% 42,177 100.0% 1,01,965 100.0% 81,071 100.0% Cost of Goods sold 42,025 76.4% 35,415 75.4% 30,739 72.9% 77,440 75.9% 59,3
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Mn) Sep-24 Jun-24 Sep-23 Particulars (₹ Mn) Sep-24 Jun-24 Sep-23 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 33,607 31,431 24,730 Share Capital 1,504 1,503 1,500 Non-current Deposits 103 119 31 Reserves and Surplus 84,43
Slide 51: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Quarter Year To Date Particulars (₹ Mn) Q2 FY25 Q1 FY25 Q2 FY24 H1 FY25 H1 FY24 Net Cash Flow from Operating Activities 15,464 -2,175 7,010 13,289 2,930 Net cash flow from/ (used in) investing activities -11,481 1,875 -5,200 -9,606 1,623 Net cash flow from/ (used in)
Slide 52: Other Financial Metrics
Other Financial Metrics Average Closing Working Capital Days Q2 FY25 Q1 FY25 FY24 FY23 FY22 Q2 FY25 Q1 FY25 FY24 FY23 FY22 Receivable Days 33 31 33 33 41 42 38 41 32 39 Inventory Days 93 102 91 89 81 103 112 101 102 85 Payable Days* 82 72 81 71 67 109 86 94 85 63 Net Working Capital 44 62 44 51 54 3
Slide 53: Project LEAP
Project LEAP Polycab India Limited | Corporate Presentation 52
Slide 54: Project LEAP
Project LEAP A multi-year transformation journey Energize B2B I Strengthen B2 Breakout growth in B2C I Position to leadership O LIO C win F PO ▪ Recalibrate business model T ▪ Create a winning variant ladder R ▪ Redefine brand architecture ▪ Refine value proposition R PO ▪ Micro market analytics ▪ “
Slide 55: Project LEAP: Progressing Well Towards Achieving FY26 Goals
Project LEAP: Progressing Well Towards Achieving FY26 Goals Customer Centricity Go-To-Market Excellence Winning with New Products Setup of Organization Enablers • Enhanced Key Account Management • Completed Brand Identity Refresh and • Product led growth through full brand • Vertical Specialization:
Slide 56: Project LEAP: Key Themes & Priorities for the Coming Years
Project LEAP: Key Themes & Priorities for the Coming Years Creating data backed model at a micro- market level Pivoting from product to solutions Unlock micro-market opportunities through (Mid-to-Long Term) data backed analytics Defining value proposition, designing customized solutions and services
Slide 57: Corporate Governance
Corporate Governance Polycab India Limited | Corporate Presentation 56
Slide 58: Leadership Team - Board of Directors
Leadership Team - Board of Directors Inder T Jaisinghani Bharat A Jaisinghani Nikhil R Jaisinghani Rakeshkumar Talati Gandharv Tongia Chairman and Managing Director Whole-Time Director Whole-Time Director Whole-Time Director Whole-Time Director R c R S R S C R C S TP Ostwal RS Sharma Sutapa Banerjee
Slide 59: Leadership Team - Management
Leadership Team - Management ▪ Blend of Entrepreneurial and Professional Management ▪ Professionals with Prior Experience in Bajaj, CEAT, Havells, Tata Group, Vedanta etc. ▪ Vision to Execute Strategies in a Dynamic Environment ▪ Extensive Relationships and Deep Business Understanding Anil Hariani A
Slide 60: CSR
CSR Polycab India Limited | Corporate Presentation 59
Slide 61: Our Social Responsibility – A Philosophy of Empathetic Care
Our Social Responsibility – A Philosophy of Empathetic Care Health Education Rural development Conducted Malnutrition & Construction of Aanganwadis Created Awareness of various Schemes & Thalassemia Camps for children Facilitating for different Govt. Schemes aged 6 to 19 years Construction of Labs a
Slide 62: Shareholding Pattern
Shareholding Pattern Polycab India Limited | Corporate Presentation 61
Slide 63: Shareholding Pattern: Q2 FY25
Shareholding Pattern: Q2 FY25 14% 2% Promoter 8% FII DII QIB + AIF 13% Others 63% Note: As on 30th June 2024. DII (Domestic Institutional Investors) includes “Mutual Funds”. FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB/ AIF stands for
Slide 64: Market Cap and Shareholder Returns Since Listing
Apr'19 May'19 Jun'19 Jul'19 Aug'19 Sep'19 Oct'19 Nov'19 Dec'19 Jan'20 Feb'20 Mar'20 Apr'20 Market Cap May'20 Jun'20 Jul'20 (as of 16th October 2024) Aug'20 Sep'20 Polycab India Limited | Corporate Presentation Oct'20 Nov'20 POLYCAB ₹ 1,078 Bn (USD 12.8 Bn) Dec'20 Market Cap in USD calculated using U
Slide 65: Safe Harbour
Safe Harbour This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, sh u d’ and similar expression
Slide 66: Thank You
THANK YOU Polycab India Limited Contact us For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com