Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Merger or Acquisition (February 2022)
17 slides from Crompton Greaves Consumer Electricals's merger presentation, Feb 23, 2022
Slide 1: Investor presentation cover letter to exchanges
Crompton Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai 400 070. India Tel: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in. CIN: l31900MH2015PLC262254 Date: February 23, 202
Slide 2: Acquisition of Butterfly Gandhimathi Appliances (Butterfly)
Acquisition of Butterfly Gandhimathi Appliances (Butterfly) February 22, 2022
Slide 3: Index
1 Transaction Overview 2 Overview of Butterfly Index 3 Strategic Rationale 4 Summary
Slide 4: Transaction Overview
Transaction Overview A Transformational step to becoming a leading player in Small Domestic Appliances (SDA) Good FIT, aligned with Long Term Strategy Butterfly is amongst and Vision the Top 3 Brands in India in kitchen and ► Immediately achieves scale in kitchen appliances, increasing share of SDA
Slide 5: Overview of Butterfly
Overview of Butterfly
Slide 6: Butterfly at a Glance
Butterfly at a Glance Brand Top 3 #1 Well reputed brand with high In India in Domestic Kitchen In South India for Wet Grinders consumer recall in South, known for Appliances and LPG Stoves Aesthetics and Product Quality INR 870 cr CAGR ~21% In-house Capability Revenues from branded Consistent Growth
Slide 7: Butterfly | Product Portfolio
Butterfly | Product Portfolio Kitchen Appliances LPG Stoves Mixer Grinder Electric Rice Cookers Juicer Mixer Grinder Wet Grinder Chimney Induction Cooktop Built In Hobs Cooker & Cookware Others Pop Up Hand Blender Hand Mixer Toaster Pressure Cookers Sandwich Flasks & Electric Maker Water Bottles Ket
Slide 8: Butterfly | Brand
Butterfly | Brand A high-recall brand well known pan-India forms a concrete launchpad for a deeper penetration across the country North Consumer Brand Perception #2 in Wet Grinders Associated with a perception of: West Top 3 (awareness) Durability in grinders & LPG Stoves ► High awareness and brand
Slide 9: Butterfly Gandhimathi | Summary Financials
Butterfly Gandhimathi | Summary Financials Strong performance coupled with healthy margins Revenue EBITDA* Margins* INR cr INR cr 41.7% 42.5% 41.8% 870 80 40.2% 38.7% 806 75 38.9% 679 652 46 41 541 35 405 9.2% 9.3% 6.4% 7.0% 6.0% (20) (4.9%) FY17 FY18 FY19 FY20 FY21 9M FY17 FY18 FY19 FY20 FY21 9M FY
Slide 10: Strategic Rationale
Strategic Rationale
Slide 11: Butterfly fits well with long term strategy and vision
Butterfly fits well with long term strategy and vision… Provides immediate scale in key existing kitchen subcategories Appliances 10% Appliances 24% ~INR 4,800 cr ~INR 5,670 cr Others 76% Others 90% FY21 Revenue FY21 Combined Revenue* *Note: Combined revenue is a proforma estimate, taken as simple s
Slide 12: …and is well aligned with our strategic pillars
…and is well aligned with our strategic pillars BUTTERFLY’S EXCELLENCE High brand recall among Diverse Product portfolio, In-house Manufacturing Robust processes High advocacy with channel consumers and retailers in with variants adapted to (~80% of products) with governance, and reporting partners
Slide 13: Complementary Product Portfolio Geared to Enable Foray into New Markets
Complementary Product Portfolio Geared to Enable Foray into New Markets #1 #2 #3 #4 …backed by capabilities in Immediate scale in key …a strong distribution and …and a ready manufacturing existing appliance kitchen segments… pan-India presence… & R&D infrastructure… segments... Mixer #2 Heaters #3 G
Slide 14: Crompton's proven capability in driving efficiencies and GTM
Crompton’s proven capability in driving efficiencies and GTM improvements will enable synergies across the entire business Unlock North, West and East In-house manufacturing capabilities Consolidate position in South R&D capabilities Dual brand strategy to Procurement cost efficiencies, enable premi
Slide 15: In Summary…
In Summary… Complementary product portfolio coupled with scale synergies will drive robust revenue growth and profitability Unlocking Synergies Complementarity in product portfolio & geographical Well Aligned with Crompton’s 5 presence 04 Attractive Fit for long term strategy strategic pillars 03 an
Slide 16: Q&A
Q&A
Slide 17: Thank you!
Crompton Thank you!
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