Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — FY2021 Earnings Presentation
50 slides from Welspun Living's earnings presentation, May 14, 2021
Slide 1: Exchange filing cover letter
WIL/SEC/2021 May 14, 2021 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services, ListingCompliance Department SP. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 (Scrip Code-514162) (Symbol
Slide 2: Investor Presentation
Investor Presentation Welspun India Limited Home Textile | Advance Textile | Flooring May 2021 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS welspunind ia. co m
Slide 3: Inside this Presentation
Inside this Presentation Welspun Group 03 Welspun India 04 Market Opportunity 12 Welspun 2.0 17 Brands 19 Emerging Businesses 24 E-Commerce 27 Innovation 29 Digitalization 32 ESG 34 Robust Financial Performance 38 Prudent Capital Allocation Strategy 43 Investment Rationale 46
Slide 4: Welspun Group
Welspun Group Global Conglomerate The USD 2.7 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 5: Welspun India – Who are we?
Welspun India – Who are we?
Slide 6: Welspun India #1 Global Home Textiles Leader
Welspun India #1 Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), part of $2.7 bn Welspun Group, is a E-Commerce Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture organization with landscape. With a strong global larger share of the well-defined
Slide 7: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India #1 Ranking In “Top 15 Home Textile Supplier Giants to USA” ROW Over 50 Countries Presence welspunindia.com 6
Slide 8: 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 9: Vertically Integrated presence with Significant Capabilities
Vertically Integrated presence with Significant Capabilities Particulars UOM Annual Capacity Home Bath Linen MT 80,000 Textile Bed Linen Mn mtrs 90 Rugs & Carpets Mn sq mtrs 10 Particulars UOM Annual Capacity^ Advanced Spunlace MT 10,000 Textile Needle Punch MT 3,000 Wet Wipes Mn Packs 75 Annual Cap
Slide 10: Awards & Recognition – Testimony of Excellence
Awards & Recognition – Testimony of Excellence Feathers in our cap Most Influential Woman Sustainability & CSR Global Textile Company of the Year 2020 2020 2021 Dipali’s Contribution to Amongst Top 100 Companies V is it We b s it e Industry & Society in India R e a d M o re Home Textiles Today Welsp
Slide 11: Trend of Financial Performance
Trend of Financial Performance Total Income EBITDA (₹ Million) (₹ Million, %) 24.8% 18,000 30.0% 19.2% 16,000 19.6% 19.2% 25.0% 17.4% 14,000 12,000 20.0% 10,000 15.0% 8,000 74,080 66,084 68,362 14,198 12,046 13,098 16,639 61,318 67,211 11,467 6,000 10.0% 4,000 5.0% 2,000 0 0.0% FY17 FY18 FY19 FY20 F
Slide 12: Leadership
Leadership Board of Directors Management Team Mr. B. K. Goenka CHAIRMAN Amongst India’s most dynamic businessmen Mr. Rajesh Mandawewala Ms. Dipali Goenka Mr. Sanjeev Sancheti Mr. Keyur Parekh Past President ASSOCHAM (2019) MD; MEMBER OF BOARD C E O & JT . M D ; M E M B E R CFO (WELSPUN INDIA) G
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 2.7% 200 US 31% 180 6.3 Bn 160 140 34% $ 120 51 60 100 80 Europe 60 CAGR ROW 35% 40 20 Strong Presence of Welspun Next Opportunity for W
Slide 14: US imports and Welspun's Market Share
US imports and Welspun's Market Share India - Largest Player in US Market (Towel) Welspun’s Towel Market share in US (In %) (In %) 19% 42% 30% 38% 15% 24% 25% 22% 22% 23% 15% 15% 21% 21% CY2009 CY2015 CY2020 CY2013 CY2020 India - Largest Player in US Market (Sheet + Pillow) Welspun’s Sheet Market sh
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: 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 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
Slide 19: 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 20: 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 Re
Slide 21: 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 2,300+ outlets 3,800+ outlets 370+ cities & towns 50+ distributors 240+ shop-in-shop l
Slide 22: 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 23: 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 35% Christy business now comes from E-Commerce channel welspunindia.com Return to Welspun 2.0 22
Slide 24: 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 by FY23 cannibalizing our existing business Martha Scott Living Strong performance across channels Healthy contribut
Slide 25: Welspun Flooring Solutions
Welspun Flooring Solutions Technologically advanced Flooring Solutions Greenfield Fully Integrated facility spread over Flooring for Home, Hospitality 600 acres of land in Telangana and Commercial segment. Aiming to revolutionize the Annual Capacity of renovation segment of Indian flooring marke
Slide 26: Welspun Flooring Product Offerings
Welspun 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
Slide 27: Welspun Advanced Textiles
Welspun 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 home care. (India) Planned to augment Spunla
Slide 28: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth Project WAVE Accelerating E-Commerce growth 3 Target Annualized Share (%) $ 100 Mn+ Geographies in focus 70% 15% - 20% 7% - 10% Target Revenue by FY23 US UK India US UK India Ecommerce Build & Grow Robust Supply Strong Technology Right Channel Growt
Slide 29: E-Commerce – (Contd.)
E-Commerce – (Contd.) Value Earth Friendly Health & Wellness Fashion Luxury Growth platforms Digital Marketing Sharp Product Marketplaces, D2C, Omni and Activation Assortment Capabilities Organization & People Brilliant Basics Analytics led control tower Up skilling & Talent acquisition Middlewa
Slide 30: 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 31: Innovation – Our strong suite
Innovation – Our strong suite 32 Patented Technologies Key Innovations Filed globally HYGROCOTTON WEL-TRAK WI NNE R Patented spinning technology makes towel Patented traceability solution tracking fibre CLARIVATE SOUTH AND softer loftier and sheet temperature from source to finished product. SOUTH E
Slide 32: Innovations in Advance textile and Flooring
Innovations in Advance textile and Flooring Innovations in Innovations in Flooring products Advance Textiles HealthyFloorTM SPC and Carpet Tiles with Antiviral and Antimicrobial Properties. It kills 99.68 % human corona virus with a special coating of silver iron and Engine air and cabin air Uni
Slide 33: 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 34: Digitally Engaging with our customers
Digitally Engaging with our customers Virtual Showroom & Virtual Shop floor Virtual Quality Customer Product presentation 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
Slide 35: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through a major transformation where Implemented the ISO 140001 EMS Focus on inclusion and gender Initiated putting in place a broad we are embedding sustainability at both manufacturing sites diver
Slide 36: ESG Journey till date
ESG Journey till date … Featured among Top 100 Sustainable companies in India by ET-Futurescape Journey Till Date 100,000+ acres 4000+ million 175,697 GJ ofenergy 45% 2,822 tons Landbank of sustainable Liters of water recycled Saved annually through energy Of cotton from sustainable Cotton recycled
Slide 37: 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 38: Sustainability targets
Sustainability targets Aspects FY 2020-21 Goal 2025 Goal 2030 Key Highlights of FY20-21 Carbon Neutral Planned installation of 10MW solar plant to enable -- 20% RE 100% RE (measured as % RE) incremental 2.5% sourcing of RE in FY21-22 Sourcing of both Organic Cotton & BCI-cotton has 100% Sustainable
Slide 39: Robust Financial Performance
Robust Financial Performance
Slide 40: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY17 FY18 FY19 FY20 FY21 Total Income 67,211 61,318 66,084 68,362 74,080 Growth % 11.8% -8.8% 7.8% 3.4% 8.4% EBITDA 16,639 12,046 11,467 13,098 14,198 EBITDA Margin 24.8% 19.6% 17.4% 19.2% 19.2% Depreciation 5,054 5,042 4,358 4,811 4,536 Finance cost 1,5
Slide 41: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Net Worth 23,971 26,057 27,793 29,721 36,447 Short Term Loans 11,721 12,580 14,080 17,717 17,452 Long Term Loans 21,393 20,228 19,024 16,704 10,962 of which Flooring Debt - - 2,870 6,378 7,112 Gross Debt
Slide 42: Ratios Summary
Ratios Summary FY17 FY18 FY19 FY20 FY21 Net Debt/Equity 1.27 1.16 1.09 1.00 0.64 Solvency Net Debt/EBITDA 1.83 2.51 2.64 2.26 1.64 ratios EBIT/Interest 7.32 4.98 4.46 4.66 4.89 Current ratio 1.41 1.42 1.25 1.19 1.33 Fixed asset turnover 1.86 1.80 1.81 1.77 1.93 Total asset turnover 0.91 0.84 0.84 0.
Slide 43: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation (₹ Million) Significant improvement in FCF and continuous payout thru 6,290 2,650 2,240 dividend / 1,574 859 786 907 785 787 773 FY17 FY18 FY19 FY20 FY21* buyback Note: FCF Dividend / Buyback cash outflow • *Includes Buyback, Buyback tax and Dividend • *Outflow wi
Slide 44: Prudent Capital Allocation Strategy
Prudent Capital Allocation Strategy Core Philosophy in Capital Allocation Decisions Investment toward profitability-margin Areas of Dividend / assertive product categories CAPEX Net Debt Investment Buyback Consistent track record of distribution through Dividend / Buyback Dividend / Buyback (Pay
Slide 45: 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 HOME TEXTILE: Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capacity expansion at Vapi and Anjar
Slide 46: Share Holding Summary
Share Holding Summary Shareholding Pattern (March 2021) Top Institutional Shareholders Promoter Group 70% DSP Mutual Fund FIIS 6% L&T Mutual Fund Mutual Funds/AIF 5% Aditya Birla Mutual Fund Banks and Insurance Co’s 2% LIC of India Public 17% Vanguard Dimensional State Street welspunindia.com 45
Slide 47: Investment Rationale – What makes it an interesting play?
Investment Rationale – What makes it an interesting play?
Slide 48: Investment Rationale
Investment Rationale Strengthening A strong focus on Balance sheet with innovation with 32 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 49: 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 50: Let's connect
Let’s connect For further details please contact Mr. Sanjeev Sancheti Mr. Vipul Garg President (Finance) & CFO Group Finance & Strategy (Investor Relations) Welspun India Limited Welspun India Limited sanjeev_sancheti@welspun.com vipul_garg@welspun.com welspunindia.com TheWelspunGroup welspungroup t