Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Investor Presentation (October 2021)
49 slides from Welspun Living's investor presentation, October 2021
Slide 1: Investor Presentation
Investor Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Oct 2021 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS welspunind ia. co m
Slide 2: Inside this Presentation
Inside this Presentation Welspun Group 03 Welspun India 04 Market Opportunity 12 Welspun 2.0 17 Brands 19 Emerging Businesses 24 E-Commerce 27 Innovation 29 Digitalization 32 ESG 34 Robust Financial Performance 38 Prudent Capital Allocation Strategy 43 Investment Rationale 46
Slide 3: Welspun Group
Welspun Group Global Conglomerate The USD 2.7 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring solutions. Global leader in Home Textiles Amongst world’s lar
Slide 4: Welspun India – Who are we?
Welspun India – Who are we?
Slide 5: Welspun India #1 Global Home Textiles Leader
Welspun India #1 Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.7 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture organization with landscape. With a strong global larger share of the well-defined
Slide 6: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India #1 Ranking In “Top 15 Home Textile Supplier Giants to USA” ROW Over 50 Countries Presence welspunindia.com 6
Slide 7: 360 degrees capabilities from Farm to Shelf
360 degrees capabilities from Farm to Shelf 1. Well Researched Innovative Offerings backed by deep Consumer understanding 6. Environment, 1. Consumer 2. Vertically integrated facilities Social, Research & with seamless connectivity to Governance Innovation (ESG) Global Supply chains 3. Global Distri
Slide 8: Vertically Integrated presence with Significant Capabilities
Vertically Integrated presence with Significant Capabilities Particulars UOM Annual Capacity Home Bath Linen MT 85,400 Textile Bed Linen Mn mtrs 90 Rugs & Carpets Mn sq mtrs 10.8 Particulars UOM Annual Capacity^ Advanced Spunlace MT 10,000 Textile Needle Punch MT 3,026 Wet Wipes Mn Packs 100 Annual
Slide 9: Awards & Recognition – Testimony of Excellence
Awards & Recognition – Testimony of Excellence Feathers in our cap Most Influential Woman Sustainability & CSR Global Textile Company of the Year 2020 2021 2021 Dipali’s Contribution to Amongst Top 100 Companies Industry & Society in India R e a d M o re Featured in ET- Futurescape as one of the top
Slide 10: Trend of Financial Performance
Trend of Financial Performance Total Income EBITDA (₹ Million) (₹ Million, %) 24.8% 18,000 30.0% 19.2% 16,000 19.6% 19.2% 25.0% 17.4% 14,000 12,000 20.0% 10,000 15.0% 8,000 74,080 66,084 68,362 14,198 12,046 13,098 16,639 61,318 67,211 11,467 6,000 10.0% 4,000 5.0% 2,000 0 0.0% FY17 FY18 FY19 FY20 F
Slide 11: Leadership
Leadership Board of Directors Management Team Mr. B. K. Goenka C HA I R M A N Mr. Rajesh Mandawewala Ms. Dipali Goenka Mr. Sanjay Gupta Mr. Keyur Parekh Amongst India’s most dynamic businessmen MD; MEMBER OF BOARD C E O & JT . M D ; President (Finance) G l o b a l He a d Past President ASSOCHAM
Slide 12: Global Home Textile Opportunity
Global Home Textile Opportunity Global Home Textile Market Addressable US Home Textile Market (2020) (USD Bn) (USD Bn) (Wholesale level) 176 Market Composition 150 2.7% 200 US 31% 180 6.3 Bn 160 140 34% $ 120 51 60 100 80 Europe 60 CAGR ROW 35% 40 20 Strong Presence of Welspun Next Opportunity for W
Slide 13: US imports and Welspun's Market Share
US imports and Welspun's Market Share India - Largest Player in US Market (Towel) Welspun’s Towel Market share in US (In %) (In %) 25% 42% 30% 38% 15% 24% 25% 22% 22% 23% 15% 15% 21% 21% CY2009 CY2015 CY2020 CY2013 CY2021 India - Largest Player in US Market (Sheet + Pillow) Welspun’s Sheet Market sh
Slide 14: Global Flooring Opportunity
Global Flooring Opportunity Global Flooring Market (2020) Addressable Global Market for Welspun (2020) – USD 290 Bn – USD 20 Bn 50% Broadloom ~5% CAGR USA $10 Bn 25% Carpet Tiles Market 25% LVT Asia Pacific 131, 45% USA 116, 40% 40% Broadloom $7.5 Bn Europe 35% Carpet tiles Market Europe 2
Slide 15: Global Advanced Textile Opportunity
Global Advanced Textile Opportunity Global Advanced Textile $ 33 Bn Global Addressable Advanced Textile End User Opportunity (2020) Opportunity (2020) Industry Segmentation (In %) ($ 180-190 Bn) Market growing at 5% CAGR ~5% CAGR Post Covid Health & Hygiene has seen focus US 25% MEDITECH - gro
Slide 16: Evolution of Welspun India
Evolution of Welspun India Phase I : Till 2010 Phase II : 2010 - 2020 Phase III : Going forward Evolving to Welspun 2.0 with Transforming from a manufacturing 6 key value drivers company to brand-oriented, Direct Transforming from being textile manufacturer to to Consumer company Growth Value rank
Slide 17: Welspun 2.0
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Slide 18: Welspun 2.0
Welspun 2.0 Growth drivers Value enablers Brands Emerging E-Commerce Innovation Digitalization ESG Businesses Brand Portfolio – Flooring Multi-pronged Thought leader Organization wide Encompassing all Owned & Licensed E-commerce Strategy in Home Textiles transformation stakeholders with
Slide 19: Brands: Dominating Global Consumer Landscape
Brands : Dominating Global Consumer Landscape Brand Strategy Owned Brands India Global Strengthening 1. owned and licensed portfolio Penetration 2. of consumer business across geographies Licensed Brands Securing 3. additional India Global shelf space Alternate 4. Revenue Streams welspunindia.com Re
Slide 20: Owned Brands - Domestic
Owned Brands - Domestic Festive Collection: Launch of Healthy Life Campaign: Rangana Campaign Anti Viral Brand Positioning Premium Mass Thoughtfulness Presence Click here to view Click here to view 2,300+ outlets 5,200+ outlets 240+ shop-in-shop locations 100+ cities Top brand of Myn
Slide 21: Domestic Business
Domestic Business Opportunity Aiming to be “Har Ghar Welspun” Market size To be Leader in home textiles space in India by Addressable market size is currently 2023 about ₹ 12,000 cr. and is expected to move up to ₹ 23,000 cr. by 2025. Major part of market is unorganized and Innovative, Quality p
Slide 22: Owned Brands - Global
Owned Brands - Global Brand Positioning 170-year-old heritage Luxury Presence Moving from Phygital to Global Digital Repositioning for Millennials Early Success 35% Christy business now comes from E-Commerce channel welspunindia.com Return to Welspun 2.0 22
Slide 23: Licensed Brands
Licensed Brands Licensed brand brings us new opportunity pockets by Expected annualized revenue from licensed opening-up new channels and shelf space without brands to cross $100 mn by FY23 cannibalizing our existing business Martha Scott Living Strong performance across channels Healthy contribut
Slide 24: Welspun Flooring Solutions
Welspun Flooring Solutions Technologically advanced Flooring Solutions Greenfield Fully Flooring for Home, Hospitality and Commercial segment. Integrated facility Aiming to revolutionize the renovation segment of Indian spread over 600 acres of flooring market. land in Telangana Flooring still
Slide 25: Welspun Flooring Product Offerings
Welspun Flooring Product Offerings Click N Lock® Tiles Carpet Tiles Wall to Wall carpets Greens Features Features Features Features Healthy Floors Highly Durable Multiple Design Anti- viral Multiple Design Anti -viral No Cropping No Watering Possibilities Possibilities Less than a Noise & Dust Free
Slide 26: Welspun Advanced Textiles
Welspun Advanced Textiles Emerging segment of Wet Wipes textile products Tailor-made wet wipes for end Innovative product applications applications like baby care, personal hygiene, cosmetics, industrial use, and Facility located in Anjar, Gujarat (India) home care. Planned to augment Spunla
Slide 27: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth Project WAVE Accelerating E-Commerce growth 3 Target Annualized Share (%) $ 100 Mn+ Geographies in focus 70% 15% - 20% 7% - 10% Target Revenue by FY23 US UK India US UK India Ecommerce Build & Grow Robust Supply Strong Technology Right Channel Growt
Slide 28: E-Commerce – (Contd.)
E-Commerce – (Contd.) Value Earth Friendly Health & Wellness Fashion Luxury Growth platforms Digital Marketing Sharp Product Marketplaces, D2C, Omni and Activation Assortment Capabilities Organization & People Brilliant Basics Analytics led control tower Up skilling & Talent acquisition Middlewa
Slide 29: Well-researched offerings backed by deep consumer understanding
Well-researched offerings backed by deep consumer understanding Market Analysis Enables us to develop relevant Consumer Solutions and Innovations in Sleep, Comfort. Wellness & Performance Guides our decision making with regards to product development, Industry Assortment Research Analysis consum
Slide 30: Innovation – 32 Patented Technologies
Innovation – Our strong suite 32 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain WI NNE R Patented spinning technology makes towel platform for state-of-the-art transparency for CLARIVATE SOUTH AND softer loftier and sheet te
Slide 31: Innovations in Advance textile and Flooring
Innovations in Advance textile and Flooring Innovations in Innovations in Flooring products Advance Textiles HealthyFloorTM SPC and Carpet Tiles with Antiviral and Antimicrobial Properties. It kills 99.68 % human corona virus with a special coating of silver iron and Engine air and cabin air Uni
Slide 32: Digitalization - Digital Transformation at Welspun
Digitalization - Digital Transformation at Welspun Supplier Manufacturing Product Supply Chain Sales & Marketing Management E-Sourcing Industry 4.0 Collaborative E-PLM E-Documentation Digital Customer Computer vision Digitization of Product (Bolero Platform) Engagement E-Procure to Pay based QC
Slide 33: Digitally Engaging with our customers
Digitally Engaging with our customers Virtual Showroom & Virtual Shop floor Virtual Quality Customer Design Microsite walkthrough Inspections Feedback Audio-Video quality was so good that I could feel myself sitting in cart and visiting the plants. Very good synergy among team members and could see
Slide 34: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through a major transformation where Implemented the ISO 140001 EMS Focus on inclusion and gender Initiated putting in place a broad we are embedding sustainability at both manufacturing sites diver
Slide 35: ESG Journey till date…
ESG Journey till date… Featured among Top 100 Sustainable companies in India by ET-Futurescape Journey Till Date 100,000+ acres 2,240 million 1,825 MWh ofelectricity 55% 4,312 tons Landbank of sustainable Liters of water recycled in Saved through energy Of cotton from sustainable Recycled cotton reu
Slide 36: Our ESG journey and envisaged outcomes
Our ESG journey and envisaged outcomes What are we doing? Comparison of ESG-related Identifying, refining, and Identification of current gaps Formulation of a strategic Public reporting and disclosures systems and processes across assessing numerous potential and/or improvement areas roadmap outlini
Slide 37: Sustainability targets
Sustainability targets Aspects Q2FY22 Goal 2025 Goal 2030 Key Highlights of Q1FY22 Projects Under consideration: Solar PV on STP pumping stations (1MW), Floating solar PV @ Anjar (11MW) Carbon Neutral WIP 20% RE 100% RE Increase use of wood briquettes, Rice Husks and ETP dried (measured as % RE) slu
Slide 38: Robust Financial Performance
Robust Financial Performance
Slide 39: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY17 FY18 FY19 FY20 FY21 Total Income 67,211 61,318 66,084 68,362 74,080 Growth % 11.8% -8.8% 7.8% 3.4% 8.4% EBITDA 16,639 12,046 11,467 13,098 14,198 EBITDA Margin 24.8% 19.6% 17.4% 19.2% 19.2% Depreciation 5,054 5,042 4,358 4,811 4,536 Finance cost 1,5
Slide 40: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Net Worth 23,971 26,057 27,793 29,721 36,447 Short Term Loans 11,721 12,580 14,080 17,717 17,452 Long Term Loans 21,393 20,228 19,024 16,704 10,962 of which Flooring Debt - - 2,870 6,378 7,112 Gross Debt
Slide 41: Ratios Summary
Ratios Summary FY17 FY18 FY19 FY20 FY21 Net Debt/Equity 1.27 1.16 1.09 1.00 0.64 Solvency Net Debt/EBITDA 1.83 2.51 2.64 2.26 1.64 ratios EBIT/Interest 7.32 4.98 4.46 4.66 4.89 Current ratio 1.41 1.42 1.25 1.19 1.33 Fixed asset turnover 1.86 1.80 1.81 1.77 1.93 Total asset turnover 0.91 0.84 0.84 0.
Slide 42: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation (₹ Million) Significant improvement in FCF and continuous payout thru dividend / 6,290 2,650 2,240 1,574 buyback 859 786 785 907 787 773 FY17 FY18 FY19 FY20 FY21* Note: FCF Dividend / Buyback cash outflow • *Includes Buyback, Buyback tax and Dividend • *Outflow wi
Slide 43: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy Core Philosophy in Capital Allocation Decisions Investment toward profitability-margin Areas of Dividend / assertive product categories CAPEX Net Debt Investment Buyback Consistent track record of distribution through Dividend / Buyback Dividend / Buyback (Pay
Slide 44: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand HOME TEXTILE: Capacity expansion at Vapi and Anjar Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products underway Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to thi
Slide 45: Share Holding Summary
Share Holding Summary Shareholding Pattern (Sep 2021) Top Institutional Shareholders Promoter Group 70% DSP Mutual Fund FPIs 7% L&T Mutual Fund Mutual Funds/AIF 5% Aditya Birla Sunlife MF Insurance Co’s 2% LIC of India Public 16% welspunindia.com 45
Slide 46: Investment Rationale – What makes it an interesting play?
Investment Rationale – What makes it an interesting play?
Slide 47: Investment Rationale
Investment Rationale Strengthening A strong focus on Balance sheet with innovation with 32 patents low leverage and and collaborations with allocation of capital to technology partners and high ROCE businesses industry associations ESG initiatives are the Focus on ‘Direct to cornerstone Customers’ t
Slide 48: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 49: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta Mr. Lokesh Pareek President (Finance) & CFO (Investor Relations) Welspun India Limited Christensen Advisory sanjay_gupta1@welspun.com Lpareek@christensenir.com Mob: +91-84249 55935 welspunindia.com TheWelspunGroup welspungroup