Slide 1: Intimation of institutional investor meetings under SEBI LODR
NSU SHHIL DECOR LIMITED A i @ | Corporate Office: Regd. Office: S Rushil House S. No. 125, Near Kalyanpura Patia, Village ITLA, RUSHIL DECOR Near Neelkanth Green Bungalow, Gandhinagar-Mansa Road, Ta. Kalol, LIMITED Off Sindhu Bhavan Road, Shilaj, Dist. Gandhinagar-382845, Gujarat, INDIA Ahmedabad-38
Slide 2: Where Style meets Substance
0 1 533470 RUSHIL | ISIN: INE573K01017 Where Style meets Substance Re-engineering possibilities | Building a company with a green focus
Slide 3: Safe Harbour
0 2 Safe Harbour Material and information provided in this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ material
Slide 4: Contents In this Presentation
0 3 Contents In this Presentation Industry Overview 4 Company Overview 15 Corporate & Financial Strategy & Path Forward 27 Information 32
Slide 5: Industry Overview
0 4 Industry Overview
Slide 6: Furniture: The 1st Human Want
0 5 Furniture: The 1st Human “Want” Furniture Food Clothing Shelter Our Basic “NEEDS” Our First “WANT” As we evolve, our furniture should, too!
Slide 7: Furniture for the Convenience Generation
0 6 Furniture for the “Convenience” Generation Millennials - The Convenience Generation Ease of “readymade” and DIY winning over carpentry & customization Home-made Spices Ready-made Furniture Tailored Clothes Self-construction Readymade Readymade, Readymade Readymade Residential DIY Clothes Spices
Slide 8: The Furniture Material Landscape
0 7 The Furniture Material Landscape Engineered Products Surface Products Timber Plywood Medium Density Particle Boards Veneers Laminates WPC Boards - MDF • Cheap • Sturdy + durable Durable (8-10 years) Lifecycle Lifetime durability Durability (~20 Sturdy (8-10 years) Fragile (>5 years) • Non • Styl
Slide 9: Furniture of the Future: Made with MDF
0 8 Furniture of the Future: Made with MDF • Made from wood, fibres and Demand for smart furniture for resin fast-lifestyles in a gig economy • Sourced through agroforestry Preference for readymade, • Machine dried and pressed branded & low- to produce dense, stable maintenance furniture sheets. Why
Slide 10: India's MDF market is highly under-penetrated
0 9 India’s MDF market is highly under-penetrated MDF v/s Plywood Consumption Regional Demand for MDF in India India’s MDF Capacity (CBM) Plywood MDF 2,000 50% 1,800 South, 45% 150% 6% 1,600 40% 1,400 North, 30% 1,200 65% 30% 1,000 94% 800 90% West, 15% 600 20% Others, 35% 400 10% 200 10% GLOBAL IND
Slide 11: The Plywood Substitution Opportunity - MDF
0 10 The Plywood Substitution Opportunity - MDF • Modular furniture Plywood replacement opportunity • Kitchens Total Indian Plywood market: • Cabinet & entry doors Residential • Bathroom INR 180 billion projects • Bedroom • Exteriors such as play areas, lobbies, etc Cheap plywood market: INR 40 bill
Slide 12: Material of the Future: Eco-friendly with WPC
0 11 Material of the Future: Eco-friendly with WPC What is WPC? Wood Polymer Composite (WPC) - a composition of “recycled”natural fibre & polymer. Natural fibres like wood fibre (in powder form usually) or agriculture waste (rice husk, bagasse, wheat straw, etc.) are mixed with polymers such as Poly
Slide 13: The Plywood Substitution Opportunity - WPC
0 12 The Plywood Substitution / Alternate Opportunity - WPC Increasing Global production of WPC North America 48% 8% 900,000 Furniture 1,300,000 WPC Application: Interiors, ceilings, modular furniture 300,000 Characteristics driving Demand: Strength, durability, China 33% 25% 900,000 seamless workab
Slide 14: Demand Drivers for the Furniture Industry – Global & Local
0 13 Demand Drivers for the Furniture Industry – Global & Local • Organized furniture industry growing by 20% every year. (World Bank) • Market volume of USD 183 bn. in 2018 | ARPU* in the "Furniture & Homeware" segment: USD 261 TOURISM DEMAND Tourism world’s largest commercial industry, grew at 7%
Slide 15: India: Macroeconomic Growth Drivers
0 14 India: Macroeconomic Growth Drivers Level-playing field for Laminates Plywood Implementation Sectoral transformation Complex tax structure simplified the sector as the exemption limit is GST rate 18% GST rate 18% of Goods & into a single, simple restricted to INR 20 Services Tax from unorganize
Slide 16: Company Overview
0 15 Company Overview
Slide 17: Leading interior infrastructure player in India
0 16 Leading interior infrastructure player in India – ‘Re-engeering Possibilities’ India’s 3rd largest Among top 5 Focussed on 3 segments, manufacturer of MDF boards largest player in the Laminates MDF + LAMINATES + WPC segment industry growth areas Strategic Competitive Advantage Design First, Pro
Slide 18: An institutionalized family business run professionally
0 An institutionalized family business run professionally 17 4 Generations In the Business of Design Engineering Promoter-led Late Shri Ambalal Thakkar Shri Ghanshyam Thakkar Shri Krupesh Thakkar Shri Rushil Thakkar One of India’s biggest • Founder & Chairman of • M.D. of Rushil Décor • Next generat
Slide 19: Our Product proposition and strengths – Design led Value Engineering
0 18 Our Product proposition and strengths – Design led Value Engineering Laminates MDF Boards WPC Value Proposition Design Leaders Quality Experts Value Engineering Price-point Customer • Competitively priced products for • Competitively priced products • Quality extruded products domestic and expo
Slide 20: Our product focus: Laminates
0 19 Our product focus Products Our Brands Advantage • Attractive • Safe Laminates • • Eco-friendly Durable • Pocket-friendly Manufacturing Units Capacity Utilization 3 (all based in Gujarat, India) 34.9 lakh sheets per annum 96.7% (FY18) Marketing India’s fourth largest player in the Network organi
Slide 21: Our product focus: MDF Boards
0 20 Our product focus Products Range Our Brands MDF 4 Ft. X 8 Ft. MDF Boards with thickness range from 7.5 mm to 30 mm, both in Interior & Exterior grades Boards Manufacturing Units Capacity Utilization • 1 (based in Karnataka, India). • Proposed new unit to be set up in Andhra Pradesh 300 CBM/ day
Slide 22: Our product focus: WPC
0 21 Our product focus Products Advantage Wide range of WPC Boards both in • Green product - • 100% water-proof Interior & Exterior grades WPC • 100% eco-friendly • Durable Pocket-friendly Manufacturing Operations Unit Capacity commissioned Chikmangaluru, Karnataka 5,760 MT per annum Jan.,2018 Marke
Slide 23: Strategic Manufacturing Advantage
0 22 Strategic Manufacturing Advantage Laminates World-class Quality Assurance • 3 laminate manufacturing units in • ISO 9001:2000 certified Gujarat • 2-Star Export House recognition by DGFT, Government of India • Capacity: 34.9 lakh sheets per annum • Green-label certification from Singapore Enviro
Slide 24: Manufacturing Infrastructure
0 23 Manufacturing Infrastructure Our state-of-the-art laminate manufacturing units
Slide 25: Our Exports shadowing global consumption
0 24 Our Exports shadowing global consumption Source:CSIL Latin Laminates - Regionwise Sales Australia Forecasts of furniture consumption in 2017 America 1% Annual percentage change in real terms 1% Europe North 2% America Indonesia 3% 13% Asia Pacific Gulf & 27% Middle East 53% Furniture consumptio
Slide 26: Gaining an edge over competition
0 25 Gaining an edge over competition Competition Mapping - MDF Competition Mapping - Laminates Business Laminates & MDF, Particle Plywood & Business Laminates & Laminates, MDF, Laminates & Segments MDF Boards MDF Segments MDF Particle Boards, Ply Veeners 90,000 cbm (will etc MDF Capacity* 160,000 1
Slide 27: Creating awareness to drive retail & institutional sales
0 26 Creating awareness to drive retail & institutional sales Awareness Drives Focus on Institutional Sales Education programmes Exclusive contracts Preferred vendor for for carpenters, interior with various schools set up by institutions - Government of decorators and hospitals, educational Gujarat
Slide 28: Strategy & Way Forward
0 27 Strategy & Way Forward 27
Slide 29: 4F Focus: Favourable Furniture Fundamentals
0 28 4F Focus: Favourable Furniture Fundamentals Fundamentals of Growth Future of Furniture • Product Penetration through multiple • MDF & WPC led Value engineering customer channels • Quality performance • Housing Deficit & Macro demand • Design integrity & thinking • Capacity Expansion 4F Strategy
Slide 30: The Agro-Forestry Edge
0 29 The Agro-Forestry Edge Win-win for Farmers & RDL • Active participation in government-sponsored agroforestry projects What is agroforestry? • Farmers in the coffee growing regions of South Singapore Land use system which integrate trees and India growing trees on their farmland. Green shrubs on
Slide 31: Growth Path
0 30 Growth Path Incorporated in 1993 1993 1997 2009 2014 2017- 2020 E 2018 Laminate Sheets Laminates Particle Medium Density Wood Plastic MDF Exports Export Board Fiberboard Composite Board Decorative Marble Board Laminates Panels Standard Opportunity The proposed 2012 Opportunity MDF plant at Curr
Slide 32: Strategic market creation for MDF through Imports
0 31 Strategic market creation for MDF through Imports Ensure front end demand creation (distributors, customers) ahead of in-house manufacturing MDF from In-house MDF from Imports manufacturing Proposed new unit in Andhra Pradesh Market Creation 240,00 CBM/ p.a. capacity Start operations by 2020 Cu
Slide 33: Corporate Information & Financials
0 32 Corporate Information & Financials
Slide 34: Board of Directors
0 33 Board of Directors Board Members Shri Ghanshyam A. Thakkar Shri Krupesh Thakkar Shri Kaushik Thakkar Executive Director (Promoter) Executive Director (Promoter) Executive Director Shri Shankar Prasad Bhagat Shri Rohit Thakkar Smt Jingle Thakkar Non-Executive Independent Director Non-Executive I
Slide 35: Profit & Loss Summary
0 34 Financial Overview Figs. in INR Crs. Profit & Loss Summary Particulars (INR crores) FY '13 FY '14 FY '15 FY '16 FY '17 FY ‘18 Revenue from Operations (Net) 182.02 255.67 275.65 296.75 305.95 343.52 Other Income 1.48 1.63 2.43 0.82 2.83 2.71 Total Income 183.50 257.30 278.08 297.57 308.78 346.23
Slide 36: Financial Overview
0 35 Financial Overview Figs. in INR Crs. Net Revenues EBIDTA Profit Before Tax 343.5 43.0 59.2 50.6 33.3 306.0 36.2 296.8 18.1 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Net Profit Tangible Net Worth Secured Borrowings 170.7 99.8 31.0 97.2 24.5 110.0 80.3 86.0 7.1 FY16 FY17 FY18 FY16 FY17 FY18 FY
Slide 37: Laminates Segment | Financial & Operating Parameters
0 36 Figs. in INR Crs. Laminates Segment | Financial & Operating Parameters Particulars (INR crores) FY’14 FY’15 FY’16 FY’17 FY’18 FINANCIAL PARAMETERS Net Sales (Incl. License Income) (INR crore) 167.88 167.50 169.91 167.36 176.86 EBITDA (INR crore) 24.91 18.69 15.72 20.79 23.50 EBITDA Margin (%) 1
Slide 38: MDF Segment | Financial & Operating Parameters
0 37 Figs. in INR Crs. MDF Segment | Financial & Operating Parameters Particulars (INR crores) FY’14 FY’15 FY’16 FY’17 FY’18 FINANCIAL PARAMETERS Net Sales (INR crore) 78.06 104.42 126.84 138.59 166.25 EBITDA (INR crore) 9.07 13.01 21.22 29.50 36.08 EBITDA Margin (%) 11.62 12.46 16.73 21.29 21.70 PB
Slide 39: Financial Overview: Segment-wise Revenue Breakup
0 38 Financial Overview Figs. in INR Crs. SEGMENT - WISE REVENUE BREAKUP Laminate MDF 126.8 138.6 166.3 78.1 104.4 167.9 167.5 169.9 167.4 176.9 FY14 FY15 FY16 FY17 FY18 Segment - wise EBITDA Margin Segment - wise PBT Margin 21.29% 21.70% 16.26% 13.81% 16.73% 14.84% 12.46% 13.29% 12.42% 9.23% 9.38%
Slide 40: Balance Sheet Summary
0 39 Financial Overview Figs. in INR Crs. Balance Sheet Summary Particulars (INR crores) FY’14 FY’15 FY’16 FY’17 FY’18 Equity 14.40 14.40 14.40 14.40 14.72 Reserves & Surplus 60.46 59.63 65.91 95.58 155.94 Networth 74.86 74.03 80.31 109.98 170.66 Long Term Borrowing 76.17 56.30 43.78 33.17 38.86 Sho
Slide 41: Corporate Social Responsibility
0 40 Corporate Social Responsibility CSR Expenditure FY17-18 – 69.49 lac FY16-17 – 18.30 lac FY15-16 – 17.31 lac Education Local Communities Health Women & Children Livelihoods Youth Community Upliftment Elders Our Focus Women & Children Empowerment We Partner Areas Marginalized Segments Sanitation
Slide 42: Thank You
0 41 “A tree is far more glorious than if it were made of gold and silver.” — Martin Luther Contact – cs@virlaminate.com, THANK YOU vipul@rushil.com 41
Slide 43: Millennials: Driving the MDF & WPC Furniture segment
0 Back 42 Millennials: Driving the MDF & WPC Furniture segment Millennials - born between 1980 and 2000 representing 30% of the adult population Have strong brand loyalty for quality products when actively engaged by brands • Millennial spending • on bedding and Global Home furniture has Ownership P
Slide 44: Huge opportunity in MDF and WPC from the surge in demand
0 Back 43 Huge opportunity in MDF and WPC from the surge in demand Percentage share of organized/ unorganized furniture industry. Laminates Industry Snapshot Organized • Industry size – INR 5,000 15% • Consumption of Indian panel products has grown at a crore CAGR of 15-20% for the organised segment
Slide 45: India: The Great Consumption Story
0 Consumption Story India: The Great Back 44 India is still a growth story—a big growth story • Assuming conservative GDP increase of 6-7% a year, consumption expenditure expected to reach $4 trillion by 2025. • India’s nominal year-over-year expenditure growth of 12% is more than double the anticip
Slide 46: Bibliography
Bibliography 0 45 The Furniture Material Landscape : back http://www.fao.org/faostat/en/#data/FO http://www.antiquelimited.com – Report by Antique Stock Broking Limited http://www.plyreporter.com/news/6/honest-effort-will-make-wpcpvc-sector-sustainable https://www.indiamart.com/proddetail/wood-plast
Slide 47: Bibliography
Bibliography 0 46 Demand Drivers for the Furniture Industry – Global & Local: back http://www.hsbc.com/news-and-insight/media-resources/media-releases/2017/generation-buy http://blog.marketresearch.com/5-top-trends-in-the-furniture-industry http://www.marketwired.com/press-release/global-office-fore
Slide 48: Bibliography
Bibliography 0 47 The Agro-Forestry Edge: back http://www.indiaenvironmentportal.org.in/files/file/Agroforestry%20policy%202014.pdf Millennials: Driving the MDF & WPC Furniture segment: back http://www.blueport.com/blog/furniture-retailers-guide-to-the-millennial-consumer/ http://www.furnituretoday.