Jsw Dulux Ltd · NSE:JSWDULUX
Jsw Dulux — AkzoNobel India — Shareholder Meeting (August 2015)
28 slides from Jsw Dulux's shareholder meeting presentation, Aug 14, 2015
Slide 1: AkzoNobel India – Annual General Meeting
AkzoNobel India – Annual General Meeting 14th Aug 2015 Kolkata
Slide 2: Welcome to AkzoNobel
Welcome to AkzoNobel 2
Slide 3: Contents
Contents 1. About AkzoNobel 2. AkzoNobel in India and our Businesses 3. Changing Business Environment 4. AkzoNobel India Initiatives in 2014-15 5. Key Indices 6. Plans for the coming year 3
Slide 4: AkzoNobel India – Some Facts
AkzoNobel India – Some Facts AkzoNobel in India Mohali • 1800 employees (Decorative Paints, Vehicle Refinishes) • 6 plants • 6 offices • 83 warehouses • 8,500 plus retailers ; ~800 B2B Gurgaon customers North - Delhi One Akzo-Corporate Office Gwalior Decorative Plant Mumbai Functional Chemicals, Eas
Slide 5: Our Businesses: Coatings and Chemicals
Our Businesses 63 Warehouses, 4 Manufacturing Sites + PFR Our Products Range 8,500+ Retailers Coatings Mfg Sites at Bangalore, Mohali Our Businesses Our Brands Mfg Site at Mahad Our Businesses Our Brands Chemicals 7
Slide 6: Changing Business Environment
Changing Business Environment 8
Slide 7: Positive Developments in the Indian Economy
Positive Developments in the Indian Economy Developmental Policies Positive Implications Rate cuts by Improved sovereign India’s growth to outpace RBI credit profile China’s - IMF, World Bank 9
Slide 8: Policy Implications on Industrial Environment
Policy Implications on Industrial Environment Urban Development Infrastructure • 100 smart cities • Revival of SEZs • House for every household • Low cost airports • Around industrial corridors (positive • Extensive road network – 12000km per year implication on Tier2 and Tier3 towns) • Renovation o
Slide 9: Coatings Industry Growth
Coatings Industry Growth 24.0% Industry Growth 16.0% 1.2X – 1.6X 9% - 11.0% GDP Growth 8.0% 7.5% Hence, estimated 0.0% growth 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 9% - 11% Coatings Industry Value Growth GDP Growth 1.2x-1.6x correlation of Coatings Industry with GDP growth Buil
Slide 10: Signs of Improvement, but Sluggish
Signs of Improvement, but Sluggish • Confidence in the Indian economy has tempered a bit in recent months • In the fiscal year 2014/15 (April-March) GDP grew by 7.4% (old scale – 6%) • However, there is concern about short term acceleration in economic growth, as the pace of reforms has been slow •
Slide 11: AkzoNobel India Initiatives in 2014-15
1. AkzoNobel India Initiatives in 2014-15 • Innovations • Operational Excellence • Sustainability and CSR 13
Slide 12: Let’s Color!
Let’s Color! New propositions Differentiation to charge premium WS All Velvet Touch Super Premium Weather Weathershield Weathershield VT Diamond Glo Signature Powerflex Complete range for Mass Market : Promise Exterior ProCover - Satin Woodcare Dulux Super clean COtW StayBright Strengthening our pro
Slide 13: Innovations to fortify market position
Innovations to fortify market position Eco Friendly Technology Leadership Operation Excellence • Digital Color Matching • Increased production capacity by • Green Energy Initiative Technology 18% Installed solar energy system to cater 1% of total • In Line Dispersion Technology power consumption i
Slide 14: Innovations in Chemicals
Innovations in Chemicals Salt licks – first global brand Sustainable savings in Insulin ELOTEX™ CAST - technology in India Production for gypsum floorings • Salt licks are a scientific Partnered with India's largest • Improves workability and answer to Salt biotech company to improve levelling prope
Slide 15: Growing importance of AkzoNobel India as an Export Hub
Growing importance of AkzoNobel India as an Export Hub Export of Dramatone and VT Finishes to South Asia and Middle East Export of coil & extrusion coatings to Asia and Africa 18
Slide 16: Sustainability and CSR
AkzoNobel Sustainability and CSR 19
Slide 17: Planet Possible: Doing more with less
Planet Possible: Doing more with less AkzoNobel’s Approach to Sustainability By working closely with customers and suppliers, we can create more value from fewer resources for our customers, ourselves and society as a whole. Potential to complement Government’s “Zero Defect, Zero Effect” initiative
Slide 18: Operational eco-efficiency
AkzoNobel India Operational eco-efficiency Reducing our environmental footprint 21
Slide 19: ANIL CSR Based on AkzoNobel Human Cities Platform
ANIL CSR Based on AkzoNobel Human Cities Platform
Slide 20: Operational Excellence
AkzoNobel Operational Excellence 23
Slide 21: Operational Excellence
Operational Excellence Strengthen Organic Growth world class sales process Embed Product & Margin Derive Mgmt functional synergies Cost conscious Value Creation to culture bring down costs 24
Slide 22: 60 Vibrant Years of AkzoNobel
60 Vibrant Years of AkzoNobel Leveraging the Power of One Akzo - Merger delivering synergies – Volumes, Margins up - Providing sustainable solutions across industries - Seamless access to superior technology, global brands and modern processes Innovations to fortify market position - VT Diamond Glo,
Slide 23: Key Indices
Key Indices… Revenue Trend (INR mn) CAGR 8% 23,717 24,698 21,772 19,496 6,445 2011-12 2012-13 2013-14 2014-15 Q1 2015-16 Business ROCE % 30 28 27 22 2011-12 2012-13 2013-14 2014-15 26
Slide 24: Stock Price reflecting improving Business prospects
Stock Price reflecting improving Business prospects ANI outperforms AGM 2015 AGM 2014 SENSEX by 4 times BSE Sensex AkzoNobel India Stock Performance Dividends As at Aug 13, 2015 • Consistent track record of dividends – winning together with our shareholders Stock Price INR 1,435 Market Cap INR 69 bn
Slide 25: Plans for the coming year
AkzoNobel Plans for the coming year 28
Slide 26: Key Thrust Areas
Key Thrust Areas Coatings Chemicals • Retain leadership in Premium segment, whilst gaining • Improve profitability and market share in Mid tier Segment market share gain • Distribution expansion • Focus on localization to secure supply chain and • RM/ Product localization access to Mid-markets • Cos
Slide 27: Concluding Remarks
Concluding Remarks • Optimism within India; Optimism about India • Slew of economic reforms announced by the government • Sustained growth expectations for the coatings industry (CAGR 9% - 11%) • AkzoNobel India to scale up to get into the global radar; India strategic as a hub in South Asia • Execu
Slide 28: Thank you for your attention
Thank you for your attention Disclaimer: This presentation contains statements which address such key issues as Akzo Nobel’s growth strategy, future financial results, market positions, product development, products in the pipeline, and product approvals. Such statements should be carefully consider