Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (December 2021)
68 slides from Greenlam Industries's investor presentation, Dec 15, 2021
Slide 1: Greenlam Industries cover letter to exchanges
Greenlam Industries Limited Greenlam/2021-22 December 15, 2021 The Manager, The Manager, BSE Limited National Stock Exchange of India Ltd. Department of Corporate Services Exchange Plaza, Bandra Kurla Complex, Floor 25, P.J. Towers, Dalal Street Bandra (El Mumbai - 400 001 Mumbai - 400 051 Fax No. 0
Slide 2: The Next Orbit
The Next Orbit Greenlam Industries Limited Corporate presentation 20211
Slide 3: Forward-looking statement
Greenlam Industries Limited Corporate presentation 2021 2 Forward-looking statement In this presentation, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements written and oral that we pe
Slide 4: Overview: The Next Orbit explained
Greenlam Industries Limited Corporate presentation 2021 3 PART 1 Overview: The Next Orbit explained
Slide 5: Greenlam is at an inflection point
Greenlam Industries Limited Corporate presentation 2021 4 Greenlam is at an inflection point. In the coming years, the company will embark on its most decisive capital investments This is expected to translate into large, profitable and sustainable growth Graduating the company from one orbit into a
Slide 6: The Next Orbit at Greenlam
Greenlam Industries Limited Corporate presentation 2021 5 The Next Orbit at Greenlam We now enter the next orbit of our existence. This will be manifested in rethinking our business model This will comprise a commitment to grow the business faster This will comprise a commitment to visibly enhance s
Slide 7: Roadmap
Greenlam Industries Limited Corporate presentation 2021 6 Roadmap Growth One-stop Discipline Funding We have We intend to We will broad We will We expect charted out a significantly base our deepen our our gearing to 5 year grow our portfolio financial remain in strategic business towards a discipli
Slide 8: This presentation is centered around a core idea
Greenlam Industries Limited Corporate presentation 2021 7 This presentation is centered around a core idea Whole Sum of constituents
Slide 9: Greenlam: A quick overview of where we have come from
Greenlam Industries Limited Corporate presentation 2021 8 PART 2 Greenlam: A quick overview of where we have come from
Slide 10: Size, Leadership, Unique, First
Greenlam Industries Limited Corporate presentation 2021 9 Size Leadership Unique First Among the India’s leading India’s only India’s first world’s three decorative engineered organized largest veneer brand wooden manufacturer laminate flooring of engineered brands manufacturer wooden doors
Slide 11: Products portfolio: Decorative Laminate & Allied Products
Greenlam Industries Limited Corporate presentation 2021 10 Products portfolio Decorative Laminate & Allied Products Laminate Compact Panels MFC • Commodity to Premium products • Standard Compact Panels • Melamine Faced Chip Board • Lab Guardian • Restroom & Locker Solutions • Clads –Façade Panels •
Slide 12: Products portfolio: Veneer & Allied Products
Greenlam Industries Limited Corporate presentation 2021 11 Products portfolio Veneer & Allied Products Decorative Veneer Engineered Wooden Floor Engineered Wooden Doors • Natural Veneer • Engineered Wooden Flooring & • Engineered Wooden Door and Door Sets • Engineered Veneer matching accessories • T
Slide 13: What we have achieved within six years of listing
Greenlam Industries Limited Corporate presentation 2021 12 What we have achieved within six years of listing Sustained Sustained Sustained PAT Sustained debt revenue EBITDA margins growth repayment growth growth (5 years out of (4 years out of (5 years out of (5 years out of six years) six years) si
Slide 14: Superior financial hygiene
Greenlam Industries Limited Corporate presentation 2021 13 Superior financial hygiene 65 41 1.47 0.21 3.93 13.94 Days, receivables Days, receivables Net Debt-equity Net Debt-equity X, Interest cover, X, Interest cover, cycle, FY 2015-16 cycle, FY 2020-21 ratio, FY 2015-16 ratio, FY 2020-21 FY 2015-1
Slide 15: What Greenlam principally achieved in 6 years
Greenlam Industries Limited Corporate presentation 2021 14 What Greenlam principally achieved in 6 years Turned a business into cash flow- positive (inflows > outflows) Demonstrated working capital hygiene across market cycles Created cash and liquid investments of Rs 125.1 crore (31 March 2021)
Slide 16: Capacity, Balance Sheet, Brand, Portfolio, Competitiveness
Greenlam Industries Limited Corporate presentation 2021 15 Capacity Balance Brand Balance Portfolio Competitive Sheet ness Capacity Investments Focus on Consistent Focused Capacity creation through a branded debt Decorative scale-up at ahead of the prudent mix premium- reduction; Product and relativ
Slide 17: Distribution and presence in numbers
Greenlam Industries Limited Corporate presentation 2021 16 9 21 5 14,000+ 4,500+ Number of Number of branch Number of Number of Number of regional offices warehouses distributors and employees distribution retailers centers 4 15 8 100+ 100+ Number of Number of Number of Number of Number of internati
Slide 18: What Greenlam validated in the last six years
Greenlam Industries Limited Corporate presentation 2021 17 What Greenlam validated in the last six years • Vision clarity coupled with robust implementation • Responsiveness to economic and sectorial challenges • Smooth supply chain and trade partner support • Sustained brand/portfolio growth; innov
Slide 19: Trust, Performance, Learning, Speed and agility, Team work
Greenlam Industries Limited Corporate presentation 2021 18 Trust Performance Learning Speed and agility Team work Trust people to We value We encourage We are quick to We achieve be reliable and performance learning, decide, more by responsible and across creating and respond and collaboration earn
Slide 20: Among the world's top three laminates manufacturers
Greenlam Industries Limited Corporate presentation 2021 19 Among the world’s top three laminates manufacturer Presence in 100+ countries International revenue comprised 52% of total revenues Leadership across existing businesses
Slide 21: Extrapolating capability across additional revenue engines
Greenlam Industries Limited Corporate presentation 2021 20 If this is what … the time has Greenlam achieved come to extrapolate in 6 years from its this capability existing business … across additional revenue engines
Slide 22: Where Greenlam is poised; where it seeks to go
Greenlam Industries Limited Corporate presentation 2021 21 PART 3 Where Greenlam is poised; where it seeks to go
Slide 23: Consumer trends driving demand
Greenlam Industries Limited Corporate presentation 2021 22 One Two Three Four Five Aspiration to A greater Greater need Consumer Greater live and work in willingness to for convenient desire to buy all willingness to better buy based on a product access products from a buy from surroundings superior
Slide 24: Two options in responding to these trends
Greenlam Industries Limited Corporate presentation 2021 23 There are two options in the way we respond to these trends One Two Organic growth Disruptive momentum growth approach
Slide 25: Graduating to an integrated surface and substrate solution provider
Greenlam Industries Limited Corporate presentation 2021 24 To graduate from standalone surfacing products provider to an integrated (surface and substrate) solution provider To grow from a position of respect to first recall To emerge as India’s leading wood panel player
Slide 26: Product categories: laminates, veneer, flooring, doors, plywood, particle board
Greenlam Industries Limited Corporate presentation 2021 25 Engineered Wooden Plywood Laminates Floors & Doors Laminate Engineered Decorative Wooden Floor Veneer & Doors Decorative Particle board Veneer
Slide 27: Building a new Greenlam
Greenlam Industries Limited Corporate presentation 2021 26 Building a new Greenlam Well-rounded profile; cross-sale-driven Greenlam Servicing all wood panel needs at a single stop Extending from decorative wood to commercial wood panel categories Addressing demand across the value chain Covering the
Slide 28: Benefits for stakeholders
Greenlam Industries Limited Corporate presentation 2021 27 Customers Customers Shareholders Vendors Lenders (primary) (secondary) Existing Superior terms Secured debt Increase dealer Address business to be of trade based repayment and throughput; complete wood sustained on higher timely interest enh
Slide 29: What this approach can do for our business
Greenlam Industries Limited Corporate presentation 2021 28 What this approach can do for our business Create a long- Enhance Mature our term platform business business (scale for relevant stability and and scope) product buckets sustainability
Slide 30: Market and Greenlam rationale for new segments
Greenlam Industries Limited Corporate presentation 2021 29 Market Greenlam • Large or rapidly • Large complementary growing market products portfolio segments • Cross-sale to catalyse • Some segments revenues considered sunrise in India
Slide 31: Where we are, where we intend to enter
Greenlam Industries Limited Corporate presentation 2021 30 Where we are Where we intend to enter Laminates Veneers Plywood Particle board 9,000 2,000 30,000 5,000 Rs cr, size of India’s Rs cr, size of India’s Rs cr, size of India’s Rs cr, size of India’s laminates market veneers market plywood marke
Slide 32: Current and potential market size of wood panel industry
Greenlam Industries Limited Corporate presentation 2021 31 51,000 11,000 46,000 5,000 Rs cr, current market size (existing businesses) 30,000 30,000 46,000 11,000 5,000 5,000 Rs cr, size of potential 2,000 2,000 2,000 market (existing and proposed businesses) 9,000 9,000 9,000 Current market size Po
Slide 33: Reinvention to treble revenues by FY 2025-26
Greenlam Industries Limited Corporate presentation 2021 32 This is how the reinvention is likely to grow our company What we are What we intend to become To treble our revenues, FY 2025-26 1,200 28* 5 Rs cr, Revenues, FY Number of years it Number of years it 2020-21 took for us to grow to could take
Slide 34: Greenlam and India's plywood sector
Greenlam Industries Limited Corporate presentation 2021 33 PART 4 Greenlam and India’s plywood sector Rationale Nature of Growth for our the sector opportunities entry
Slide 35: Plywood market size
Greenlam Industries Limited Corporate presentation 2021 34 Rs cr, plywood market size
Slide 36: Intent to emerge in top three of India's plywood sector
Greenlam Industries Limited Corporate presentation 2021 35 Greenlam intends to emerge in the top three of India’s plywood sector
Slide 37: Plywood unit: capacity, capex, timeline
Greenlam Industries Limited Corporate presentation 2021 36 18.9 125 Q4 FY23 Mn SQM, projected Rs cr, estimated capital Expected date of annual capacity of our expenditure of our commercial production plywood unit plywood unit Tindivanam, 400 Tamil Nadu Rs cr, estimated revenue Location of our plywoo
Slide 38: Opportunity to emerge among India's three leading national brands
Greenlam Industries Limited Corporate presentation 2021 37 • Building block of India’s rapidly growing wood panel industry 25% • Rs 30,000 cr sector, largely dominated by unorganized players • The organized sector constitutes of two national brands and a mix of regional brands • Presence of only two
Slide 39: Trends favouring branded, organized players
Greenlam Industries Limited Corporate presentation 2021 38 Indian market Trend towards Consumers Attractive Greater occupied by formalization; more willing to headroom in consumer branded, organized pay for enhancing propensity in emerging players will win superior sectoral quality buying all region
Slide 40: Challenges faced by unorganized players
Greenlam Industries Limited Corporate presentation 2021 39 Unable to address raw material cost volatility Unable to pass cost inflation to consumers Unable to manage increased working capital requirements Unable to extend beyond the commodity and low realizations trap Unable to address regulatory co
Slide 41: Economy, sector and behavioral drivers
Greenlam Industries Limited Corporate presentation 2021 40 Economy Sector • Indian GDP expected to grow 7%- • Low mortgage finance rate to plus; to emerge as a USD 5 Trillion sustain sectoral growth economy by late Twenties • Regulatory changes of GST/E Way • Sustained increase in disposable bill to
Slide 42: Synergic portfolio to enhance cross-sale
Greenlam Industries Limited Corporate presentation 2021 41 Synergic New and Opportunity to Complete Leverage the portfolio to sustainable emerge in solution rich Greenlam enhance cross- revenue engine India’s top provider goodwill across sale three within (surface and users and the segment substrate
Slide 43: Manufacturing, location, distribution and brand advantages
Greenlam Industries Limited Corporate presentation 2021 42 Manufacturing Location Distribution Brand edge Investment in cutting- Proposed Leveraging existing Superior Greenlam edge equipments manufacturing location wide and deep pan- recall across users, Projected efficiency in South India India dis
Slide 44: Greenlam and the particle board business
Greenlam Industries Limited Corporate presentation 2021 43 PART 5 Greenlam and the particle board business
Slide 45: Particle board market size
Greenlam Industries Limited Corporate presentation 2021 44 Rs cr, particle board market size
Slide 46: Emerging as the particle board leader in India
Greenlam Industries Limited Corporate presentation 2021 45 Greenlam to focus on emerging as the particle board leader in India
Slide 47: Particle board unit: capacity, capex, timeline
Greenlam Industries Limited Corporate presentation 2021 46 2,31,000 600 Q4 FY24 CBM, annual projected Rs cr, estimated capital Expected date of capacity of our particle expenditure of our commercial production board unit particle board unit Naidupeta, 600 Andhra Pradesh Rs cr, estimated revenue Loca
Slide 48: Macro-sectorial drivers for particle board
Greenlam Industries Limited Corporate presentation 2021 47 Macro-sectorial • Particle board market share highest in the global wood panel industry • Large particle board appetite from the growing mechanized furniture industry (Modular kitchen units, wardrobes, shop fits, work tops, online furniture,
Slide 49: Behavioural, environmental and sectorial drivers
Greenlam Industries Limited Corporate presentation 2021 48 (contd…) Behaviourial Environmental Sectorial § Commercial furniture § Wood-based particle board § Import substitute product; replacement cycle declining manufactured out of no quality producer of global (from 12/15 years to 5/7 sustainable
Slide 50: Big numbers
Greenlam Industries Limited Corporate presentation 2021 49 21 36 US$ bn, global particle % of global panel board market, 2020 consumption is particle board Big numbers 10 5,000 % of India’s panel Rs cr, size of the Indian consumption is particle particle boards market, board 2021
Slide 51: Strategic and technology opportunity
Greenlam Industries Limited Corporate presentation 2021 50 Strategic Technology § Opportunity for market leadership § Proposed commissioning of state-of- the-art particle board plant § No national player with relevant capacity / technology § Continuous automatic plant to enhance industry’s quality s
Slide 52: Right company at the right time in the right place
Greenlam Industries Limited Corporate presentation 2021 51 Greenlam. Right company at the right time in the right place Footprint: Positioned attractively to address the market opportunity-ready Engagement: Existing goodwill with users and influencers Location: Proposed manufacturing facility in Sou
Slide 53: Competitive hedge and cross-sale offtake
Greenlam Industries Limited Corporate presentation 2021 52 Effective competitive Quicker offtake (due hedge (established to the Greenlam brand; shared brand effect) overheads) Complementary Larger customer offtake (through wallet share cross-sale) (sustainable offtake)
Slide 54: Reality and opportunity
Greenlam Industries Limited Corporate presentation 2021 53 Reality Opportunity Reality Opportunity Reality Opportunity There is a trend Greenlam is Market Greenlam to Quality particle Greenlam to towards expected to dominated by acquire scale to board emerge as the branded small players availability
Slide 55: Greenlam and the laminates business
Greenlam Industries Limited Corporate presentation 2021 54 PART 6 Greenlam and the laminates business
Slide 56: Laminates business: An overview
Greenlam Industries Limited Corporate presentation 2021 55 Laminates business: An overview Rs cr, total exports from India Rs cr, total market size of Rs cr, share of the the laminates industry organized market Rs cr, total size of the domestic market Rs cr, share of the unorganized market
Slide 57: Retaining leadership in the laminates segment
Greenlam Industries Limited Corporate presentation 2021 56 Greenlam aims to retain its position as the leading player in the country’s laminates segment
Slide 58: Laminates unit: capacity addition, capex, timeline
Greenlam Industries Limited Corporate presentation 2021 57 3.5 225 Q4 FY23 Mn Sheets/Board, annual Rs cr, estimated capital Expected date of capacity addition to our expenditure of our commercial production laminates business laminates unit Naidupeta, 500 Andhra Pradesh Rs cr, estimated revenue Loca
Slide 59: Laminates capacity and product range
Greenlam Industries Limited Corporate presentation 2021 58 10,000+ 15.62 SKUs, Speciality laminates (chemical 2,000+ Million sheets per annum Decors, Compact resistant, fire retardant, of installed capacity laminates digital, anti-fingerprint, etc.) 200+ 20+ Species, Veneered Species, Veneered lamin
Slide 60: Laminates positioning and offerings
Greenlam Industries Limited Corporate presentation 2021 59 • Among the top three laminate • Offers a variety of laminates catering manufacturers in the world, to various application needs (liners to enhancing visibility and respect specialized material) • Graduated a commodity product to a • Offers
Slide 61: Greenlam 2.0 overview
Greenlam Industries Limited Corporate presentation 2021 60 PART 7 Greenlam 2.0 overview
Slide 62: Entering new segments under a consolidated Greenlam brand
Greenlam Industries Limited Corporate presentation 2021 61 The Greenlam brand can enter new segments or commission larger capacities in existing segments The time has come to provide the entire range of surface/ substrate products under a consolidated Greenlam brand The time has come to create the f
Slide 63: Decisive value-creation opportunity
Greenlam Industries Limited Corporate presentation 2021 62 Decisive value-creation opportunity Significant business growth within a compressed time frame Mobilising funds through a prudent balance of debt and internal accruals Possibility of higher margins through synergies Positive cash flows from
Slide 64: Funding and gearing for new projects
Greenlam Industries Limited Corporate presentation 2021 63 Existing Lower working Shorter Superior Projected business well capital outlay maturity curve margins and gearing to be capitalised to for the new of new accelerated reasonable grow using its businesses projects; revenues will generated quic
Slide 65: Larger, more profitable, more sustainable
Greenlam Industries Limited Corporate presentation 2021 More Larger profitable Laying the foundation of a More more valuable sustainable Greenlam
Slide 66: Expansion plans
Greenlam Industries Limited Corporate presentation 2021 65 Expansion plans Laminate Plywood Particle board Naidupeta, Tindivanam, Naidupeta, Location Andhra Pradesh Tamil Nadu Andhra Pradesh Annual Capacity 3.5 18.9 231000 UOM Mn Sheets/Board Mn SQM CBM Capex (Rs cr) 225 125 600 Revenue Potential (R
Slide 67: Manufacturing capacities
Greenlam Industries Limited Corporate presentation 2021 66 Manufacturing Capacities Current Future Products UOM Location Capacity Capacity Behror, Raj High Pressure Mn Sheets / 15.62 19.12 Nalagarh, HP Laminate Boards Naidupeta, AP Decorative Veneer Mn SQM 4.2 4.2 Behror, Raj Engineered wood floor M
Slide 68: Thank you
Thank you
Greenlam Industries — Investor Presentation (December 2021) on 6ix