Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Investor Presentation (July 2022)
47 slides from Welspun Living's investor presentation, July 2022
Slide 1: Investor Presentation
Investor Presentation Welspun India Limited Home Textile | Advance Textile | Flooring July 2022 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS welspunind ia. co m
Slide 2: Inside this Presentation
Inside this Presentation Welspun Group 03 Welspun India 04 Market Opportunity 12 Welspun 2.0 16 Brands 19 Advanced Textile 24 Flooring Solution 25 E-Commerce 27 Innovation 29 Digitalization 30 ESG 32 Robust Financial Performance 36 Prudent Capital Allocation Strategy 41 Investment Rationale 44
Slide 3: Welspun Group
Welspun Group Global Conglomerate The USD 2.3 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring solutions. Global leader in Home Textiles Amongst world’s lar
Slide 4: Welspun India – Who are we?
Welspun India – Who are we?
Slide 5: Welspun India - Global Home Textiles Leader
Welspun India - Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.3 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture larger share of the organization with landscape. With a strong global well-defined D
Slide 6: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India ROW Over 50 Countries Presence welspunindia.com 6
Slide 7: 360 degrees capabilities from Farm to Shelf
360 degrees capabilities from Farm to Shelf 1. Well Researched Innovative Offerings backed by deep Consumer understanding 6. Environment, 1. Consumer 2. Vertically integrated facilities Social, Research & with seamless connectivity to Governance Innovation (ESG) Global Supply chains 3. Global Distri
Slide 8: Vertically Integrated presence with Significant Capabilities
Vertically Integrated presence with Significant Capabilities Particulars UOM Annual Capacity Bath Linen MT 85,400 Bed Linen Mn mtrs 108 Home Textile Rugs & Carpets Mn sq mtrs 12 Advanced Textile Spunlace MT 27,729 Needle Punch MT 3,026 Wet Wipes Mn Packs 100 Annual Capacity Flooring Particulars UOM
Slide 9: Awards & Recognition
AWARDS & RECOGNITION Feathers in our cap W a t c h v id e o Industry 4.0 Sustainability Product Development 2022 2022 2022 Read More Artificial Intelligence for Community Sustainable Excellence in Product Towel counting & Defect award for ESG efforts Recognized by Walmart as trusted partner for deve
Slide 10: Leadership
Leadership Board of Directors Management Team Mr. B. K. Goenka CHAIRMAN Mr. Rajesh Mandawewala Ms. Dipali Goenka Mr. Sanjay Gupta Mr. Keyur Parekh Amongst India’s most dynamic businessmen MD; MEMBER OF BOARD C E O & JT . M D ; President (Finance) G l o b a l He a d Past President ASSOCHAM (2019)
Slide 11: Trend of Financial Performance
Trend of Financial Performance Total Income EBITDA (₹ Million) (₹ Million, %) 16,000 25.0% 19.6% 19.2% 19.2% 14,000 17.4% 15.2% 20.0% 12,000 10,000 15.0% 66,084 8,000 74,080 68,362 93,773 10.0% 14,246 6,000 12,046 13,098 61,318 14,198 11,467 4,000 5.0% 2,000 0 0.0% FY18 FY19 FY20 FY21 FY22 FY18 FY 1
Slide 12: Market Opportunities
Market Opportunities ©
Slide 13: Global Home Textile Opportunity
Global Home Textile Opportunity Global Home Textile Market Addressable US Home Textile Market (2020) (USD Bn) (USD Bn) (Wholesale level) 176 Market Composition 150 4.1% 200 US 31% 180 6.3 Bn 160 140 34% $ 120 49 60 100 80 Europe 60 CAGR ROW 35% 40 20 Strong Presence of Welspun Next Opportunity for W
Slide 14: Global Advanced Textile Opportunity
Global Advanced Textile Opportunity Global Advanced Textile $ 33 Bn Global Addressable Advanced Textile End User Opportunity (2020) Opportunity (2020) Industry Segmentation (In %) ($ 180-190 Bn) Market growing at 5% CAGR ~5% CAGR Post Covid Health & Hygiene has seen focus US 25% MEDITECH - gro
Slide 15: Global Flooring Opportunity
Global Flooring Opportunity Global Flooring Market (2020) Addressable Global Market for Welspun (2020) – USD 290 Bn – USD 20 Bn 50% Broadloom ~5% CAGR USA $10 Bn 25% Carpet Tiles Market 25% LVT Asia Pacific 131, 45% USA 116, 40% 40% Broadloom $7.5 Bn Europe 35% Carpet tiles Market Europe 2
Slide 16: Welspun 2.0
Welspun 2.0
Slide 17: Evolution of Welspun India
Evolution of Welspun India Phase I : Till 2010 Phase II : 2010 - 2020 Phase III : Going forward Evolving to Welspun 2.0 with Transforming from a manufacturing 6 key value drivers company to brand-oriented, Direct Transforming from being textile manufacturer to to Consumer company Growth Value rank
Slide 18: Welspun 2.0
Welspun 2.0 Growth drivers Value enablers Brands Emerging E-Commerce Innovation Digitalization ESG Businesses Brand Portfolio – Flooring Multi-pronged Thought leader Organization wide Encompassing all Owned & Licensed E-commerce Strategy in Home Textiles transformation stakeholders with
Slide 19: Brands: Dominating Global Consumer Landscape
Brands : Dominating Global Consumer Landscape Brand Strategy Owned Brands India Global Strengthening 1. owned and licensed portfolio Penetration 2. of consumer business across geographies Licensed Brands Securing 3. additional India Global shelf space Alternate 4. Revenue Streams welspunindia.com 19
Slide 20: Owned Brands - Domestic
Owned Brands - Domestic Festive Collection: Launch of Healthy Life Campaign: Rangana Campaign Anti Viral Brand Positioning Premium Mass Thoughtfulness Presence Click here to view Click here to view 2,402+ outlets 7,833+ outlets 380 towns 495 towns 240 Shop in Shop locations 125 Dis
Slide 21: Domestic Business
Domestic Business Opportunity Aiming to be “Har Ghar Welspun” Market size To be Leader in home textiles space in India by Addressable market size is currently 2023 about ₹ 12,000 cr. and is expected to move up to ₹ 23,000 cr. by 2025. Major part of market is unorganized and Innovative, Quality p
Slide 22: Owned Brands - Global
Owned Brands - Global Brand Positioning 170-year-old heritage Luxury Presence Moving from Phygital to Global Digital Repositioning for Millennials Early Success About 30% Christy business now comes from E-Commerce channel welspunindia.com 22
Slide 23: Licensed Brands
Licensed Brands Licensed brand brings us new opportunity pockets by Expected annualized revenue from licensed opening-up new channels and shelf space without brands to cross $100 mn run-rate by Q4 FY23 cannibalizing our existing business Martha Scott Living Strong performance across channels Healt
Slide 24: Advanced Textiles
Advanced Textiles Emerging segment of Wet Wipes textile products Tailor-made wet wipes for end Innovative product applications applications like baby care, personal hygiene, cosmetics, industrial use, and Facility located in Anjar (Gujarat) and home care. Hyderabad (Telangana) in India High
Slide 25: Flooring Solutions
Flooring Solutions Technologically advanced Flooring Solutions Greenfield Fully Flooring for Home, Hospitality and Commercial segment. Integrated facility Aiming to revolutionize the renovation segment of Indian spread over 600 acres of flooring market. land in Telangana Flooring still conside
Slide 26: Flooring Product Offerings
Flooring Product Offerings Click N Lock® Tiles Carpet Tiles Wall to Wall carpets Greens Features Features Features Features Healthy Floors Highly Durable Multiple Design Anti- viral Multiple Design Anti -viral No Cropping No Watering Possibilities Possibilities Less than a Noise & Dust Free Easy to
Slide 27: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth 3 Ecommerce Build & Grow Robust Supply Strong Technology Right Geographies in focus Channel Growth Branded Business Chain Back-end Organization US UK India Brand.com Own Brand Inventory Planning Tech-Stack: Middleware COE Org Model Marketplaces Lice
Slide 28: Well-researched offerings backed by deep consumer understanding
Well-researched offerings backed by deep consumer understanding Market Analysis Enables us to develop relevant Consumer Solutions and Innovations in Sleep, Comfort. Wellness & Performance Guides our decision making with regards to product development, Industry Assortment Research Analysis consum
Slide 29: Innovation – 35 Patented Technologies
Innovation – Our strong suite 35 Patented Technologies Key Innovations Filed globally WIL: 31 HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain Advance Textiles: 2 Patented spinning technology makes towel platform for state-of-the-art transparency for softer loftier and sheet tem
Slide 30: Digitalization - Digital Transformation at Welspun
Digitalization - Digital Transformation at Welspun Supplier Manufacturing Product Supply Chain Sales & Marketing Management E-Sourcing Industry 4.0 Collaborative E-PLM E-Documentation Digital Customer Computer vision Digitization of Product (Bolero Platform) Engagement E-Procure to Pay based QC
Slide 31: Digitally Engaging with our customers
Digitally Engaging with our customers Virtual Showroom & Virtual Shop floor Virtual Quality Customer Design Microsite walkthrough Inspections Feedback Audio-Video quality was so good that I could feel myself sitting in cart and visiting the plants. Very good synergy among team members and could see
Slide 32: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through Engaged with Cotton Farmers to Board Committee on ESG a major transformation where Implemented ISO 14001 train & enable them grow Executive remuneration linked to we are embedding sustaina
Slide 33: Sustainability Initiatives – Growing business responsibly
Sustainability Initiatives – Growing business responsibly Rated “Low Risk” on ESG factors by one of the Sustainalytics DJSI ratings Crisil ratings top ESG rating agency Among Top 100 Sustainable companies in India by ET-Futurescape ESG 202 Score improved to 14.8 Score improved from 8 to Score 63 – S
Slide 34: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q1FY 23 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 59% 50% 100% Fresh Water Positive in Production 14.45 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 8.75 MT 0 MT 0 MT ch
Slide 35: Our ESG journey and envisaged outcomes
Our ESG journey and envisaged outcomes What are we doing? Comparison of ESG-related Identifying, refining, and Identification of current gaps Formulation of a strategic Public reporting and disclosures systems and processes across assessing numerous potential and/or improvement areas roadmap outlini
Slide 36: Robust Financial Performance
Robust Financial Performance
Slide 37: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 FY22 Total Income 61,318 66,084 68,362 74,080 93,773 Growth % -8.8% 7.8% 3.4% 8.4% 26.6% EBITDA 12,046 11,467 13,098 14,198 14,246 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% Depreciation 5,042 4,358 4,811 4,536 4,205 Finance cost 1,4
Slide 38: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Net Worth 26,057 27,793 29,721 36,447 39,717 Short Term Loans 12,580 14,080 17,717 17,452 19,742 Long Term Loans 20,228 19,024 16,704 10,962 12,142 of which Net Flooring Debt - 2,797 6,526 6,959 8,300 Gro
Slide 39: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 Current ratio 1.42 1.25 1.19 1.33 1.37 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 Total asset turnover 0.84 0.84 0.81 0.
Slide 40: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation (₹ Million) Continuous payout thru dividend / buyback 2,650 2,240 6,290 1,574 3,651 786 907 787 148 773 FY18 FY19 FY20 FY21* FY22 Note: FCF Dividend / Buyback cash outflow • *Includes Buyback, Buyback tax and Dividend welspunindia.com 40
Slide 41: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy Areas of Dividend / CAPEX Net Debt Investment Buyback Core Philosophy in Capital Allocation Decisions Investment toward profitability-margin assertive product categories Consistent track record of distribution through Dividend / Buyback Calibrated as per S
Slide 42: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capital light expansion in the areas of processing,
Slide 43: Share Holding Summary
Share Holding Summary Shareholding Pattern (Mar 2022) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 6.9% L&T Mutual Fund Mutual Funds/AIF 1.7% Aditya Birla Sunlife MF Insurance Co’s 3.7% Tata Mutual Fund Public 17.3% welspunindia.com 43
Slide 44: Investment Rationale – What makes it an interesting play?
Investment Rationale – What makes it an interesting play?
Slide 45: Investment Rationale
Investment Rationale Strengthening A strong focus on Balance sheet with innovation with 35 patents low leverage and and collaborations with allocation of capital to technology partners and high ROCE businesses industry associations ESG initiatives Focus on ‘Direct to are the cornerstone Customers’ t
Slide 46: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 47: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun India Limited sanjay_gupta1@welspun.com Mr. Abhinandan Singh Group Head – Investor Relations abhinandan_singh@welspun.com welspunindia.com TheWelspunGroup welspungroup