Sheela Foam Ltd. · NSE:SFL
Sheela Foam — Investor Presentation (March 2024)
42 slides from Sheela Foam's investor presentation, Mar 21, 2024
Slide 1: Investor Presentation cover letter to exchanges
21st March, 2024 To The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra(E), Mumbai-400051 Scrip Code: 540203 NSE Symbol: SFL Subject: Investor Presentation Dear Sir/Madam, Furtherance to our intim
Slide 2: Sheela Foam Ltd. Investor Presentation – March 2024
Sheela Foam Ltd. Investor Presentation – March 2024
Slide 3: Company Snapshot
Company Experienced Snapshot Management ‘Sleepwell’ mattresses a Backward Integrated household Brand and Player with a wide one of the most trusted product basket brands in India Largest ~30% Market Share in 40% market share in Presence across manufacturers of PU the Mattresses Australia multiple ge
Slide 4: Company Overview
4 y Company Overview
Slide 5: Company Overview
Company Overview • Incorporated in 1971, Sheela Foam Limited (SFL)is one of the largest manufacturer of Polyurethane Foam (PU) in India. India Operations • The Company manufactures various foam-based home comfort products like mattresses, furniture cushions, as well as technical grades of polyuretha
Slide 6: Board of Directors
Board of Directors Rahul Gautam Executive Chairman He has been associated with our Company since 1971. He holds a Bachelor's degree in Som Mittal Independent Director Technology - Chemical Engineering from the Indian Institute of Technology, Kanpur, and a He has been associated with the Company sinc
Slide 7: Key Managerial Personnel
Key Managerial Personnel Nilesh Mazumdar CEO (India Business) Mr. Nilesh Mazumdar joined our Company in February 2023. He has done his BE Electronics from University of Poona, MBA (Marketing) from Symbiosis Institute of Business Management and Diploma in Business Finance from ICFAI. He has a strong
Slide 8: Timeline
Timeline Many awards won including the Sheela Foam’s Limited The Company introduced Major acquisition to Set up a new Subsidiary called Star SME of the Year by Business journey begins from rubberized coir products expand operations globally, Received the as International Comfort Standard; Silver med
Slide 9: Market Leader in Domestic Mattress Market
Market Leader in Domestic Mattress Market Sheela Foam’s leadership position is significantly strengthened with Kurlon’s acquisition Combined Business Market Share ~19% ~11% ~29% Geographical Strong positioning Strong in North & West Strong in East & South Presence across regions Distribution Presenc
Slide 10: Extensive Pan India Sales and Distribution Network
Extensive Pan India Sales and Distribution Network EBO’s MBO’s Sheela Foam – 5,600+ Sheela Foam – 7,500+ Kurlon – 500+ Kurlon – 4,500+ Sleepwell World Sleepwell Galleries Sleepwell Shoppes 4 Centralized Hubs 10,000 + touchpoints Average Size 1,000 Sq. Ft/ Average Size 600 Sq. Ft/ Average Size 200 Sq
Slide 11: Optimal Manufacturing Presence In Domestic Markets
Optimal Manufacturing Presence In Domestic Markets Kala Amb (HP) Sheela Foam Kurlon Rajpura (Punjab) Roorkee Surajpur (UP) Sahibabad (UP) Mfg. Units : 11 Mfg. Units : 10 Greater Noida (UP) Capacity: 1,29,000 MT Capacity: 17,000 MT Gwalior Jalpaiguri (WB) INDIA Jabalpur (upcoming Mfg. plant) • The co
Slide 12: International Presence
International Presence Robust global B2B business developed on the back of strong technical capabilities AUSTRALIA 15% of FY 23 Revenues Perth Sydney Canberra Adelaide Melbourne SPAIN 14% of Yecla FY 23 Revenues 22k 40% 11k MTPA Capacity Market Share MTPA Capacity Investor Presentation | Sheela Foam
Slide 13: Social Media and BTL Marketing efforts
Social Media and BTL Marketing efforts • Consistently expanding BTL Marketing efforts for its legacy brands like Sleepwell, FeatherFoam, etc. • Revitalizing E-commerce marketing by using content marketing in order to cater to the urban population. Content Marketing Advertisement Expenses (INR Mn) an
Slide 14: Branded Portfolio
Branded Portfolio Spanish subsidiary Interplasp Inc Australian subsidiary Joyce Inc Investor Presentation | Sheela Foam Ltd. 13
Slide 15: Marquee Clients
Marquee Clients Mattress Industry Furniture Industry Automotive Lamination Industry Peeling Industry Acoustic Industry Investor Presentation | Sheela Foam Ltd. 14
Slide 16: Awards and Accolades
Awards and Accolades Investor Presentation | Sheela Foam Ltd. 15
Slide 17: Business Overview
4 Business Overview
Slide 18: Product Mix
Product Mix Mattresses segmentation Comfort Foam and Home Care My Mattress, Spring Range, Products Technology Range, Custom Cell Range, Back Support Range, Flexi PUF Foam Sheets, Foam Blocks, Comfort range Range, Showroom Range, Economy 41% 21% accessories, Foam Cores, Furniture Cushions, Range, Onl
Slide 19: Mattresses
Mattresses • Household Brand ‘Sleepwell’ was established in 1994 and over time has become one of the most popular mattresses brands in India. • With KEL’s acquisition it has also added Kurl On products which is a widely recognized brand in the market • These products have a price range from INR 8,00
Slide 20: Technical Foam
Technical Foam Technical products offered by Sheela Foam find diverse applications in home furnishings, car seats, clothes and Revenues (INR Mn) accessories, auditoriums, hospital beds, and various other industries, enhancing comfort and convenience in our surroundings. 3,612 Product Product Lines E
Slide 21: Comfort Foam and Home Care Products
Comfort Foam and Home Care Products • Comfort Foam products are Industrial grade products that find their applications in mattress manufacturing, sofa manufacturing, and others. • The company forayed into the Home accessories segment with an aim to expand their strategic offerings. • Comfort Accesso
Slide 22: Furniture Foam
Furniture Foam • Being one of the largest producers of PU Foam in India, Sheela Foam has expanded into allied segments to create more value for its product portfolio. • Furniture cushioning is one of the most important part of furniture like Sofa Sets, Chairs, Custom Sofas, Sofa cum bed, etc. Furnit
Slide 23: Australia
Australia • Sheela Foam has a strong presence in Australia through its wholly owned subsidiary, Joyce Foam Pty Ltd (“Joyce Foam”) • The company acquired the business of manufacturing of PU Foam and polystyrene products of three Australian companies, namely, Joyce Corporation Limited, Joyce Indpac Li
Slide 24: Spain
Spain • Sheela Foam has a strong presence in Europe through its wholly-owned subsidiary ‘Interplasp’. • Interplasp is one of the best European flexible polyurethane foam manufacturers characterized by a strong technological base and innovation. • It has a modernized manufacturing facility at Yecla i
Slide 25: Industry & Strategic Overview
INDUSTRY & STRATEGIC OVERVIEW
Slide 26: Industry Fundamentals
Industry Fundamentals • The Indian modern mattress market is expected to grow at a CAGR of 10%+ and is en route to attaining an INR 25,000 Cr mark by the year 2030. • Indian market is fragmented with a large number of branded and non-branded players present in the market selling variety of mattresse
Slide 27: A Mattress for Every Indian
A Mattress for Every Indian SFL has initiated an ambitious strategy to enter the unorganized mattress market and gradually transform its into an organized market through premiumization. Plan Action Strategy • Setting up a plant to offer • Manufacturing plant at • Targeting cotton / EPE foam high qua
Slide 28: Acquisition synergies to drive margins and profitability
Acquisition synergies to drive margins and profitability • A larger combined entity would result in better realization economics for both vendors, dealers, and the company Procurement due to increased volumes, improving the net margins over the next few years Synergy • Economies of scale will create
Slide 29: Presence across all product categories and Price Points
Presence across all product categories and Price Points Capturing the addressable market by presence across products, price points and distribution channels Price Products Luxury Spring PU Foam Premium Mass Coir Investor Presentation | Sheela Foam Ltd. 28
Slide 30: Expanded distribution network through strategic acquisition
Expanded distribution network through strategic acquisition • While SFL is strong in North and West, Kurlon has a stronger presence in East and South. With the acquisition the combined entity will have a strong market presence in all the markets for all the products • Combination of the dealer netwo
Slide 31: Foray into fast growing branded furniture market
Foray into fast growing branded furniture market • The India furniture industry is estimated to be at a value of around USD 80 Bn by 2025 with an expected CAGR of 13%, while the furniture rental industry is at a nascent stage and is estimated to grow to USD 13 Bn by 2025 with an expected CAGR of 26%
Slide 32: Raw Material Prices and Gross Margins
Raw Material Prices and Gross Margins SFL Consolidated Gross Margins (%) 40.6% 41.7% 39.4% 38.7% 37.0% Q3-FY23 Q4-FY23 Q1-FY24 Q2-FY24 Q3-FY24 Gross Margins (%) SFL India Spain - Interplasp Australia - Joyce 32.0% 28.8% 29.7% 39.5% 39.9% 40.1% 49.8% 49.7% 27.2% 38.6% 49.1% 46.8% 46.4% 22.7% 35.4% Q3
Slide 33: Historical Financial Overview
Historical Financial Overview
Slide 34: Historical Standalone Income Statement
Historical Standalone Income Statement PARTICULARS (INR Mn) FY20 FY21 FY22 FY23 9M-FY24 Operational Revenue 16,344 16,117 20,082 20,198 13,775 Operating Expenses 14,074 13,744 17,744 17,975 12,130 EBITDA 2,270 2,373 2,338 2,223 1,645 EBITDA Margins (%) 13.89% 14.72% 11.64% 11.01% 11.94% Other Income
Slide 35: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet PARTICULARS (INR Mn) FY22 FY23 H1-FY24 PARTICULARS (INR Mn) FY22 FY23 H1-FY24 ASSETS EQUITY & LIABILITIES Non-current Assets 11,171 6,909 11,630 Equity 12,095 13,958 26,682 Property, Plant & Equipment 2,350 2,371 2,344 (a) Share Capital 244 488 543 Capital Work In
Slide 36: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY20 FY21 FY22 FY23 9M-FY24 Operational Revenue 20,532 23,550 28,656 28,733 21,372 Operating Expenses 17,528 19,908 25,507 25,760 19,172 EBITDA 3,004 3,642 3,149 2,973 2,200 EBITDA Margins (%) 14.63% 15.46% 10.99% 10.35% 10.29% Other Inco
Slide 37: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet PARTICULARS (INR Mn) FY22 FY23 H1-FY24 PARTICULARS (INR Mn) FY22 FY23 H1-FY24 ASSETS EQUITY & LIABILITIES Non-current Assets 15,767 12,775 17,971 Equity 14,002 16,087 28,690 Property, Plant & Equipment 4,355 4,290 4,819 (a) Share Capital 244 488 543 Capital Work
Slide 38: Consolidated Financial Performance
Consolidated Financial Performance Revenues (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) PAT (INR Mn) and PAT Margins (%) 3,00 0 30. 00% 4,00 0 3,642 30. 00% 28,656 28,733 2,50 0 2,402 25. 00% 3,50 0 3,149 2,187 3,004 2,973 25. 00% 2,031 23,550 3,00 0 1,943 21,372 2,00 0 20. 00% 20,532 20. 00% 2,
Slide 39: Capital Market Data
Capital Market Data 1 year stock performance (As on 31st December, 2023) 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00% -30.00% Jan/23 Feb/23 Mar/23 Apr/23 May/23 Jun/23 Jul/23 Aug/23 Sep/23 Oct/23 Nov/23 Dec/23 Sheela Sensex Midcap Shareholding Pattern as on 31st December, 2023 Price Data
Slide 40: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 41: Disclaimer
Disclaimer Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no represen
Slide 42: Thank You
THANK YOU