Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Merger or Acquisition (August 2016)
28 slides from Grasim Industries's merger presentation, Aug 11, 2016
Slide 1: Creating A Premier Play on India’s Growth
Creating A Premier Play on India’s Growth August 11, 2016
Slide 2: Transaction Overview
Transaction Overview 1 Merger of Aditya Birla Nuvo Limited (“Aditya Birla Nuvo”) into Grasim Industries Limited (“Grasim”) 2 Restructuring results in listing of our financial services business 57% owned by post-merger Grasim and balance being held by its shareholders (post-merger Grasim) on a prop
Slide 3: A play on the India growth story with market leading businesses
A ‘play on the India growth story’ with market leading manufacturing and services businesses 3
Slide 4: Transaction Highlights
Transaction Highlights Consolidation of fast growing businesses with a strong, stable cash flow portfolio Value un-locking for shareholders via the listing of financial services Simplifies Group structure – consolidation of similar businesses and stakes 4
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance FY16 figures in Rs. Crores Aditya Birla Grasim Aggregate Nuvo Revenue 36,637 + 23,129 = 59,766 EBITDA 7,025 + 4,935 = 11,961 PAT 2,359 + 1,886 = 4,245 Notes: Aggregate financials are only for illustrative purposes and may not be the exact presentation of consolidat
Slide 6: Creating A Premier Play on India’s Growth
Creating A Premier Play on India’s Growth Post-restructuring Cement (Aggregate Revenue FY16) Textiles Financial Manufacturing Others 3 Services Chemicals Chemicals 2 1% 15% (68%) Insulators 9% 1 Telecom 4 Solar Textiles 16% 17% Financial services Financing Services Insurance Telecom Asset Management
Slide 7: Making of A New Bluechip
Making of A New Bluechip Strong Free Leadership Position Cash Flow From Across Sectors Traditional Businesses Financial Strength Operational Finesse New Age Sectors Offering Large Asset Base High Quality Tremendous with Well Capitalized Management Team Growth and Strong Balance Prospects Sheet
Slide 8: Current Holding Structure
Current Holding Structure Grasim Aditya Birla Nuvo Promoters Public Promoters Public 31.3%(1) 68.7%(1) 58.4% 41.6% Grasim Aditya Birla Nuvo 60.2% 100.0% 51.0% 23.3% Aditya Birla Birla Sun UltraTech Idea Divisions(4) Others Financial Life Divisions (4) Others Cement Cellular Services (2) Insurance(3)
Slide 9: Resultant Holding Structure
Resultant Holding Structure 26% Promoter Public 39% 61% 1 Grasim + Aditya Birla 17% Nuvo 57% 60.2% 28.0% 51.0% 2 Aditya Birla UltraTech Financial Idea Cellular Solar Divisions Others Cement Services All of financial Textiles services 11.4% Chemicals Aditya Birla including life Fashion & Retail i
Slide 10: Resulting Swap Ratios
Resulting Swap Ratios 3 equity shares of Grasim for every 10 equity shares of Aditya Birla Nuvo 7 shares of Aditya Birla Financial Services for every 1 equity shares of Grasim (post merger) For Illustrative Purposes A shareholder holding 100 shares in Aditya Birla Nuvo will get 30 shares of Gr
Slide 11: Post Merger Grasim…
Post Merger Grasim… Financial Telecom Cement Textiles Chemicals Services • AUM of ~Rs. • Fastest growing • #1 cement • Leading global • Largest Chlor- 196,545 crores large operator in company in India player in VSF Alkali (Q1FY17) India with largest manufacturer in selling brand • #1 producer and In
Slide 12: Consolidated Financial Performance
Consolidated Financial Performance Revenues (Rs. crores) EBITDA (Rs. crores) 36,637 7,025 25,245 6,321 Grasim FY12 FY16 FY12 FY16 + 23,129 4,935 15,618 Aditya Birla 2,468 Nuvo FY12 FY16 FY12 FY16 = 11,961 59,766 8,788 40,863 Post-Merger Grasim FY12 FY16 FY12 FY16 FY12-FY16 CAGR An optimum combinatio
Slide 13: Transaction Details
Transaction Details The transaction is subject to regulatory approvals including the Stock Exchanges; High Courts (Madhya Pradesh & Gujarat); Competition Commission of India etc. The transaction is likely to be completed by Q4 FY17 / Q1 FY18 Advisors Financial Advisor DSP Merrill Lynch Limited
Slide 14: Aditya Birla Financial Services – A Significant Non-Bank Financial Services Player
Aditya Birla Financial Services – A Significant Non-Bank Financial Services Player Among the top 5 fund managers in India (excl. LIC) Promoters Grasim Public Rs. 196,545 crores Funds under management (As of Q1 FY17: Includes AUM of Life Insurance, Private Equity and quarterly average 17% AUM of
Slide 15: Aditya Birla Financial Services – Sound Growth in Key Metrics
Aditya Birla Financial Services – Sound Growth in Key Metrics AUM (Rs. Crores) Lending Book (Rs. Crores) 1,84,276 27,728 88,201 1,850 FY11 FY16 FY11 FY16 Revenues (Rs. Crores) Earnings Before Tax (Rs. Crores) 9,299 995 6,304 472 FY11 FY16 FY11 FY16 15
Slide 16: Overview of Businesses
Overview of Businesses NBFC – Robust Growth Profile With Quality Loan AMC – Gaining Market Share Consistently Book Among the top 10 diversified private NBFCs in India 4th largest in India Diversified portfolio with All-India presence AAUM of Rs. 1,63,121 crores (Q1 FY17) One of the lowest
Slide 17: Overview of Businesses (Cont’d)
Overview of Businesses (Cont’d) Life Insurance – Top 4 Private Life Insurer Portfolio of Other Businesses Among top 4 private insurers in India (by APE) with Aditya Birla Housing Finance: Commenced operations in new business market share of 8.4% in Q1FY17 October 2014 and currently has a loan bo
Slide 18: Win-Win For All
Win-Win For All Benefits to Grasim Shareholders Benefits to Aditya Birla Nuvo Shareholders Exposure to fast growing sectors – Financial Direct exposure to businesses with strong Services & Telecom free cash flow generation – Cement & VSF Diverse portfolio of businesses with Larger capitaliza
Slide 19: Thank You
Thank You
Slide 20: Appendix
Appendix
Slide 21: Grasim - Current Corporate Structure
Grasim - Current Corporate Structure Grasim 60.2% UltraTech Pulp & Fibre Chemical Others 26.0% Overseas VSF JV 3 MTPA, (UAE, VSF Pulp Overseas Caustic Epoxy Domestic China Bangladesh, Sri 498 KTPA 70 KTPA Pulp JVs 840 KTPA 51 KTPA Lanka) 73 KTPA Grey Cement Nagda AV Cell Nagda 66.3 MTPA 162 KTPA 130
Slide 22: UltraTech Cement – India’s Largest Cement Company
UltraTech Cement – India’s Largest Cement Company Business Highlights Key metrics Current: 69.3mtpa Post Ongoing Acquisition: 91.1mtpa India’s largest cement company - Overseas Overseas North North ~17% of India’s total capacity 4% 27% 4% 26% South South 22% 22% Best positioned to capture the up
Slide 23: Viscose Staple Fibre – Leading Global Player
Viscose Staple Fibre – Leading Global Player Leading Global Player 5 VSF Plants and 5 Pulp Plants Across 4 Countries Integrated model with six VSF Business Global Market Share Canada Sweden China, Hubei decades of experience • 3 Pulp plants • Domsjo pulp plant • VSF JV Others JVs JV VSF market p
Slide 24: Chemicals - Largest Chlor-Alkali Manufacturer
Chemicals - Largest Chlor-Alkali Manufacturer Business Highlights Market Share and Volume Doubled Since FY14 Largest Chlor-alkali manufacturer Market Share (1) in India 22% Capacity: 840 ktpa Capacity to increase by 25% 13% 11% on brownfield expansion and debottlenecking Largest producer of
Slide 25: Aditya Birla Nuvo - Current Corporate Structure
Aditya Birla Nuvo - Current Corporate Structure Aditya Birla Nuvo 23.3% 51.0% 100.0% 51.0% Aditya Birla Financial Telecom Divisions Life Insurance Solar Power Services 49.0% NBFC Payments Bank Jaya Shree 51.0% Housing Finance Agri AMC Rayon General Insurance Advisory Insulators Broking/Wealth Manage
Slide 26: Idea Cellular – Fastest Growing Telco in India
Idea Cellular – Fastest Growing Telco in India Fastest growing telecom operator in the world’s most attractive telecom market #3 mobile operator with ~183 million (VLR) subscribers 16% shareholding in Indus. One of the world’s largest tower companies 3G / 4G spectrum covering 87% of revenues
Slide 27: Aditya Birla Nuvo – Other Businesses
Aditya Birla Nuvo – Other Businesses Jaya Shree Indian Rayon Indo-Gulf Fertilisers Aditya Birla Insulators India’s #1 Linen player Largest manufacturer & 8th largest urea India’s largest & world’s Market Leading manufacturer of exporter of VFY in India manufacturer 4th largest manufacturer
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by Grasim Industries Limited ("Grasim"), Aditya Birla Nuvo Limited (“ABNL”) and Aditya Birla Financial Services Limited ("ABFSL") for information purposes only in relation to a potential arrangement between Grasim, ABNL and ABFSL pursuant to a scheme of
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