Kamdhenu Limited · NSE:KAMDHENU
Kamdhenu — Investor Presentation (May 2022)
42 slides from Kamdhenu's investor presentation, May 31, 2022
Slide 1: Stock exchange cover letter for investor presentation
Ref: KL/SEC/2022-23 /23 Date: 31st May, 2022 To, To, The Manager- Listing The Manager- Listing National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai-400 051 Dalal Street, Mumbai- 400 001 NSE Symbol: KAMDHENU BSE Scr
Slide 2: Kamdhenu Limited Investor Presentation May 2022
KAMDHENU LIMITED Investor Presentation May 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu 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,
Slide 4: Company Overview
Company Overview Brand Turnover of Rs. 16,000 crores +; CAGR Growth of 16% over the last decade Kamdhenu Paints India's Leading Company dealing KAMDHENU is Largest TMT with Manufacturing, Distribution, Marketing & COLOUR DREAMZ amongst top selling brand in India, in the Retail decorative paint brand
Slide 5: Sustainable Growth through Creation of Brand Kamdhenu
Sustainable Growth through Creation of Brand ‘KAMDHENU’ Having started as a single unit in Bhiwadi, Rajasthan in 1995, In 2008, Kamdhenu set up its own unit for manufacturing of Pioneer In Kamdhenu has evolved into a steel conglomerate, pioneering the Diversification decorative Paints under its flag
Slide 6: Our Journey
Our Journey 2022 2021 2019-2020 2018 2016-2017 2011-2015 2006-2010 o 2022-The Second 2001-2005 Motion Petition for o Signed Preity G approval of the 1994-2000 Zinta as Brand Scheme of o 2019 - Own Ambassador for Arrangement was o Board Manufacturing decorative paints conducted on 22nd recommended Ex
Slide 7: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu Structural Steel TMT Bars are thermo-mechanically-treated through leading world Produced under franchisee agreement multitude of special tempcore based technology for high yield strength contours such as angles, channels, beam
Slide 8: Awards & Acknowledgements
Awards & Acknowledgements We truly believe that Customer delight and satisfaction are the true award we vouch for and our efforts to meet the customers’ expectation have brought many accolades to us World's Greatest Asia's Most Promising Brands 2015 Indian Power Brand World's Greatest Brand 2015-16
Slide 9: Participation of Noted Celebrities
Participation of Noted Celebrities Brand Promotions, Event Participation Have Helped Strengthen Dealer Connect & Expand Visibility Preity G Zinta Emraan Hashmi Madhuri Dixit Kanika Kapoor Tapsee Pannu Kangana Ranaut Malaika Arora Sonam Kapoor Dia Mirza Sonu Nigam Karishma Tanna Govinda Kareena Kapoo
Slide 10: Target Ka Badshah – Mega Paints Event for Dealers & Distributors
‘TARGET KA BADSHAH’ – Mega Paints Event for Dealer & Distributor Awards Award functions and cultural events on annual basis Notable celebrity affiliations through brand promotions, event participations help strengthen emotional connect with dealers where relationships were formative 9 KAMDHENU LIMIT
Slide 11: Brand Promotions
Brand Promotions Promotional Digital Outdoor Brand Educational Print Media Materials Campaign Campaign Activities National Newspaper ▪ Distribution of catalogues ▪ Dealers & Distributor ▪ Brochures Meets ▪ Visiting cards ▪ Customer Meets Kamodual Luxury – ▪ Shop branding ▪ Seminars, conferences ‘Lux
Slide 12: Experienced Board of Directors
Experienced Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Mr. Ramesh Chand Surana Chairman & Director Whole Time Director Whole Time Director Whole Time Director Managing Director Mr. Ramesh Chandra Jain Mr. Madhusudan Agrawal Mrs. Nishal
Slide 13: Steel Business
Steel Business
Slide 14: India's Largest Branded TMT Bars Player
India’s Largest Branded TMT Bars Player KAMDHENU Nxt and KAMDHENU PAS 10000 are Premium Product Brands Converted steel commodity into branded product becoming India’s Largest TMT Steel Bars brand (Thermo Mechanically State-of-the-art Tempcore Technology from CRM, Belgium Treated) with in-house capac
Slide 15: Pan-India Decentralized Manufacturing & Marketing Network
Pan-India Decentralized Manufacturing & Marketing Network 81 8,000+ 250+ Franchisees Dealers Distributors Decentralized Outsourced Manufacturing Model 01 Communication 02 Low Minimums • Working with a local manufacturer makes the • Even the smaller quantity of the orders are communication process ea
Slide 16: Asset Light Business Model
Asset Light Business Model… Kamdhenu Group BRAND LEADERSHIP in STEEL RETAIL Innovator – We do Research and introduce new products based on Customer Requirement in the Market Hierarchy of Marketing Network Every franchisee is allowed to sell its product in a particular region which is its designated
Slide 17: Creates Long-term Sustainability
…Creates Long-term Sustainability Benefits to Kamdhenu Win–Win for Franchises Expertise & Quality Ready Centralized Experience Assurance Marketplace Publicity Enhanced revenue Easy availability of Saving Provide franchise Assurance of Ready Platform in Assistance to and increase in Increase in Marke
Slide 18: Huge Capacities at zero capex
Huge Capacities at zero capex Regional Split Production Capacity Company Owned - Manufacturing, R&D and T&D of Franchisees Installed Capacities (MT) Steel Division at Bhiwadi, Rajasthan 22% Steel Rebars 30% Production Capacity 120,000 MT per annum (Realigned 45.5 L to support the future innovation,
Slide 19: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours End-user Industries Advantages • High Strength and High Ductility • One such product which • Production of a multitude of • Industrial structures, flyov
Slide 20: Core Steel TMT Business
Core Steel TMT Business Revenue Break Up Return On Equity Return on Capital Employed Debt to Equity Ratio Q4 FY22 FY22 31.9% 32.6% 0.31X Revenue from Own Facility +312 bps +290 bps Rs. 145.6 Crores Rs. 472.9 Crores +14% +41% Royalty Income through Franchisee Sales Increased Focus on Own Manufacturin
Slide 21: Strong Growth Outlook in Steel Business
Strong Growth Outlook in Steel Business Increased Capacity TMT Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 50 Lakh Metric Tonne Rs.22,000 crs Rs.150 crs by FY24* by FY24* by FY24* 22,000 150 50 38 38 16,072 16,072 92 92 11 8 3,759 16 1,808 8 2007 2012 2022 2024E* 2007 20
Slide 22: Paints Business
DHENU PAINTS Paints Business “ \MDHEK PAINTS if Designer Galle Sa0 =.2 23 ¢ 2 2. % f r go § eS
Slide 23: Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment
Kamdhenu Paints – Leading Brand in Indian Decorative Paints Segment • Exterior & Interior Emulsions 2008 - set up its own unit for • Water based primers manufacturing of decorative Amongst the Top Paints Installed capacity of • Wood Finishes Paints under its flagship Company in India 30,000* KL p.a
Slide 24: Extensive Product Portfolio
Extensive Product Portfolio Diversified and Eco-friendly Product Portfolio Emulsions Primers Type Premium Regular Dual Range of Products Type Premium Regular Exterior Water Based Weather Weather Kamo Kamo Dual Kamo Sealer Supreme Classic Shield Primer Solvent Based Kamo Dual Kamo Hi Velvety Sheen &
Slide 25: Extensive Product Portfolio
Extensive Product Portfolio Stainers, Specialty and Other Coatings New Products Construction Chemicals Designer & Kamoproof ALW Kamo Super Water proofing Textured Mettalica Kamocrete CRP Concrete Repair Compound for Paints cement mortar Product and concrete Kamo Superstar Kamorich Wall Putty Kamwood
Slide 26: Niche Products with High Potential
Niche Products with High Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer 1 2 3 4 ▪ Kamwood Premium Wood ▪ Our specialized water proofing ▪ Kamo Floor Coat (KFC) is a ▪ It's a unique primer which can finishes works to protect and solutions are an aid to the specialized p
Slide 27: Signed Preity G Zinta as Brand Ambassador
Signed Bollywood Celebrity & Entrepreneur Preity G Zinta as Brand Ambassador Signed ace Bollywood celebrity and Preity G Zinta’s inclusion as the Brand This collaboration will help enhance the Ambassador is set to blend perfectly with entrepreneur, Preity G Zinta as Brand brand’s pan-India reach and
Slide 28: Focused on Premiumization of Portfolio
Focused on Premiumization of Portfolio Revenue Breakup Average Selling price per KG/Ltr FY10 FY15 FY22 +105% 10% 21% 22% 76 11% 58 53% 58% 37 26% 20% 79% FY10 FY15 FY22 Water Based Products Powder Based Products Solvent Based Products With renewed focus on premium products, After having achieved rap
Slide 29: Well-Entrenched and Highly Incentivised Dealer Network
Well-Entrenched and Highly Incentivised Dealer Network Dealers Revenue Split (FY22) Dealer Split (FY22) +26% 7% ➢ Kamdhenu’s sales are more 13% 11% concentrated in North & East 4,071 17% India owing to a denser older 3,230 8% dealer base in the region 35% 12% ➢ The current dealer proportion in 241 c
Slide 30: Prominence in India's Emerging Cities
Prominence in India’s Emerging Cities Prominence in Tier I, II & III Cities through 33 Sales Depots Focused strategy to set base in the smaller Indian towns identifying an underserved gap in the paint industry ~70% of India’s urban population resides in Tier II & III cities, where majority of Kamdhe
Slide 31: State-of-the-art Manufacturing Facilities & Infrastructure
State-of-the-art Manufacturing Facilities & Infrastructure Manufacturing Facilities – Quick Facts Robust Tinting Infrastructure Production Capacity Revenue Potential Facilities (in KL) (Rs Cr) 1,600+ tinting machines installed at dealer outlets to make wide Own Production Plant at range of shades by
Slide 32: Growth Strategies & Next 5-yr Vision
Growth Strategies & Next 5-yr Vision Urbanisation & Rising Disposable Incomes Rapid Revenue Growth Potential with Margin Expansion Revenue (Rs cr) EBITDA Margin* (%) Premiumization of Portfolio +68% Increasing Density of Dealer Network +43% 1,000 11% 8% 450 Aggressive Investments into 241 1% Buildin
Slide 33: Scheme of Arrangement
Scheme of Arrangement Rationale for Proposed Demerger ➢ Better management focus & operational flexibility and facilitate businesses to independently pursue their growth plans through organic / inorganic KAY2 STEEL LTD means ➢ Enable both companies to raise necessary funds, invite strategic investors
Slide 34: Overall Financials
a Overall Financials
Slide 35: Management Comment on Q4 & FY22 Results
Management Comment on Q4 & FY22 Results Commenting on the results, Mr. Satish Kumar Agarwal, Chairman & Managing Director said: “Despite a challenging environment, we have ended FY22 on positive note recording revenue growth of 34% and PAT growth of 74%. In our Paints business, we have reported reve
Slide 36: Result Highlights – Q4 & FY22
Result Highlights – Q4 & FY22 Rs. In Crs Revenues from Operations EBIDTA PAT Rs. 252.8 Crores Rs. 18.2 Crores Rs. 5.4 Crores Q4 FY22 +14% YoY -11% YoY +37% YoY Revenues from Operations EBIDTA PAT Rs. 840.8 Crores Rs. 58.3 Crores Rs. 26.3 Crores FY22 +34% YoY +17% YoY +74% YoY On Standalone Basis 35
Slide 37: Q4 & FY22 - Statement of Profit & Loss
Q4 & FY22 - Statement of Profit & Loss Particulars (Rs. Crs.) Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q FY22 FY21 Y-o-Y Net Revenue from Operations 252.8 222.4 14% 226.5 12% 840.8 625.2 34% Cost of Material Consumed 150.2 141.7 132.0 520.0 350.5 Purchase of Stock-in-Trade 27.7 20.6 28.8 92.1 67.5 Change i
Slide 38: Balance Sheet as on 31st March 2022
Balance Sheet as on 31st March 2022 Particulars (Rs. Crs.) Mar 2022 Mar 2021 Particulars (Rs. Crs.) Mar 2022 Mar 2021 26.9 26.9 Non Current assets Equity Share Capital Property, Plant and Equipment's 88.5 85.8 Other Equity 191.2 167.8 Capital Work in Process 1.0 0.8 Total Equity 218.1 194.8 Right of
Slide 39: Cash Flow Statement as on 31st March 2022
Cash Flow Statement as on 31st March 2022 Particulars (Rs. Crs.) Mar 2022 Mar 2021 Net Profit Before Tax 35.0 21.0 Adjustments for: Non Cash / Other Items 28.9 32.6 Operating profit before working capital changes 63.9 53.5 Changes in working capital -10.0 2.7 Cash generated from operations 53.9 56.2
Slide 40: Consistent Financial Performance
Consistent Financial Performance On Standalone Basis Revenue Breakup - FY13 EBIT PBT (Excl. Exceptional Item) PAT** +190% +519% +538% 33% 51.0 40.9 30.7 548 cr 67% 17.6 6.6 4.8 FY13 FY22 FY13 FY22 FY13 FY22 Steel Paints **Adjusted PAT for Exceptional Items & Tax calculated at normal tax rate after a
Slide 41: Historical Profit & Loss Trend
Historical Profit & Loss Trend Particulars (Rs. Crs) FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 Revenue 840.8^ 625.2^ 923.8^ 1,232.4 1,179.8 824.9 841.2 968.0 921.7 547.5 Total Raw Material Cost 604.5 428.9 710.5 972.9 968.8 634.8 667.8 821.9 793.8 427.8 Employee Expenses 60.2 48.0 50.2 47.2
Slide 42: Thank You
THANK YOU For further Information, please contact : CIN: U74140MH2010PTC204285 CIN: L27101HR1994PLC092205 Mr. Deven Dhruva / Ms. Khushbu Shah Mr. Harish Kumar Agarwal +91 98333 73300 / +91 9820601181 Group CFO & Head-Legal deven.dhruva@sgapl.net / khushbu.shah@sgapl.net hkagarwal@kamdhenulimited.com