Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (June 2022)
49 slides from Kansai Nerolac Paints's investor presentation, June 2022
Slide 1: All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 1
Slide 2: Corporate Presentation
Corporate Presentation 24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 3: Fact Sheet
Fact Sheet Ownership Founded Market Position Subsidiary of 1920 One of India’s largest Kansai Paint Co., Paint company: Leader Ltd., Japan in industrial paints Net Sales (₹) PBT (₹) Mar. Cap. (₹) (FY22 – standalone) (FY 22 – standalone) (31st March 2022) 5,948.9 Cr 505.1 Cr 25,178 Cr June 2020
Slide 4: Indian Paint Industry
Indian Paint Industry Size • Over Rs 55,000 Cr (USD 7 Billion approx.) Growth Rates • Double digit since 1991 Organized : Un-organized Market • 75:25 Per Capita consumption • ~4 kg (Global average @12-15 kg) June 2022
Slide 5: History of KNPL
History of KNPL 2020 Unveiled the new corporate 1920 2000 2006 identity of Nerolac- Colours Company Name changed to Kansai that Care Started as Gahagan Paints and Varnish Co Ltd. with factory at implements SAP ERP Nerolac Paints Ltd. with a Lower Parel across all locations new logo 2000 Tata Group d
Slide 6: Shareholding Pattern
Shareholding Pattern June 2022
Slide 7: Our Heritage – Kansai Paint Co., Ltd., Japan
Our Heritage – Kansai Paint Co., Ltd., Japan Gross Sales over 3.8 Billion USD Net Sales Bn Yen (Consolidated) Japan’s Largest 440 Paint Company 430 427 419 420 410 407 402 400 390 Technical and 380 innovation Leader 8th Largest Paint 370 365 in Automobile and Company Globally 360 Industrial Coatings
Slide 8: Technology tie-ups
Technology tie-ups Japan Japan Cashew Tsusho Oshima Kogyo Auto Paint – Plastic Heat Resistant Paints Canada Turkey Protech Oxyplast Europe Altan Boya Sanayi A S Powder Coating Helios June 2022
Slide 9: Our Foot-Print
Our Foot-Print Eight Plants Strategically Located near OEMs (Auto Clusters) Strong Competitive Edge Distribution Network Large, well-established network spread across key markets June 2022
Slide 10: Vision, Mission
Vision, Mission Our Vision Our Mission “We design solutions that Protect, We leverage superior technology to Inspire and Touch Lives everyday” contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of
Slide 11: New Brand Expression
New Brand Expression PAINT+ is a testament to our commitment to offer world class products with added features. The “+” represents This year, KNPL our promise to provide envisioned its new products that go beyond brand expression EXPRESSION standard market offerings. It of “PAINT+”. exemplifies our
Slide 12: Core Values
NEROLAC Core Values it Customer Accountability Focus Entrepreneurial Innovation Mindset June 2022
Slide 13: Overview of our Performance
Overview of our Performance 7000 Sales In Rs Crores PBDIT In Rs Crores 900 833 5949 790 782 6000 800 742 5174 5006 700 4771 636 5000 4587 600 4000 500 3000 400 300 2000 200 1000 100 0 0 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 21-22 Return on Capital Employed (%) Return on net Worth (%)
Slide 14: Overview of our Performance
Overview of our Performance Earnings Per Share(₹) Dividend (%) 12 600 525 9.6 9.9 9.9 500 10 8.7 8 400 7 315 6 300 260 260 225 4 200 2 100 0 0 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 21-22 Shareholders fund in Rs Crores Market Capitalization in Rs Crores 4500 35000 32370 4077 4171 4000
Slide 15: Overview of our Performance
Overview of our Performance Operating Cash Flow in Rs Crores 700 621 639 600 500 400 377 300 200 110 100 59 0 17-18 18-19 19-20 20-21 21-22 June 2022
Slide 16: Strategy
Strategy New Segments: Wood Coatings, Adhesives, Construction Chemicals, Auto Refinish (ARF), Coil Coatings, Functional Powders, Pipe Coatings and Specialty Coatings EXPAND HORIZONS Decorative, Automotive, Performance Coating Governance, Strengthen the Core while IT, Digital, Risk LONG TERM ORGANIZA
Slide 17: Core Business
Core Business General Industrial Coatings Automotive Powder Coatings Coatings High Decorative Performance Coatings Coatings June 2022
Slide 18: Decorative
Decorative Super Premium Premium Economy Impressions Impressions Beauty Gold Beauty Gold Beauty Ceiling Beauty Little UHD Washable Beauty Smooth Master HD Classic Emulsion Interior Emulsion Range Super Premium Premium Economy Excel Mica Marble Excel Mica Suraksha Dust Excel Total Excel Anti Peel Sur
Slide 19: Decorative
Decorative Impressions Impressions Impressions Excel Alkali Nerolac Zinc Redimix (Putty Ideaz Glitter Metallic primer Yellow Primer cum Primer) Designer Range Primer PU Enamel 10 in 1 Synthetic Satin Enamel June 2022
Slide 20: Automotive
Automotive Customer Segments Product Line Up Cathodic Electro Deposition (CED) and Medium Solid, Thermal Acrylic Cathodic Electro 3 Coat – 1 Bake System Sprayed Aluminium Deposition (ACED) (TSA) Polyester Primers High Mar Resistant Clear Super Durable Monocoat Metallics Coats Monocoats Polyurethane
Slide 21: Performance Coating - Liquid
Performance Coating - Liquid Customer Segments Product Line Up Polyurethane (PU) Chlorinated Rubber Primer and Top Epoxy Coatings Coatings Coats Alkyds – Primers Heat Resistant Zinc Rich Coatings and Top Coats Coating Petroleum / Metal Industries Fertilizer Industries Cement Industry Petrochemical P
Slide 22: Powder Coating
Powder Coating Customer Segments Product Line Up Epoxy Polyester Pure Polyester Epoxy Powder Powder Polyurethane Light Fixtures Electrical Equipments Fans Auto Ancillary Rebar Coatings, Super Durable Heat Resistance Pipe Coating Powders, Bonded Powder Powders Metallic Powders High Performance Anti-C
Slide 23: Expanding Horizons (New Markets/ Geographies)
Expanding Horizons (New Markets/ Geographies) Construction Chemicals Adhesives Health & Wood Hygiene Coatings Sri Lanka Pipe coating Nepal International Markets Floor Coatings Bangladesh Coil Coatings Niche Markets Rebar Coatings ARF Railway Coatings June 2022
Slide 24: Wood Finish
WOOD FINISH KNPL has a complete range of products and are present in PU, Polyester, Melamine and NC Coatings. An extensive range of high quality products for all kinds of wooden surface, veneers and MDF June 2022
Slide 25: Wood Finish - Nerolac Icro
WOOD FINISH- NEROLAC ICRO A luxury range of ultra – premium wood finish range imported from Italy June 2022
Slide 26: Construction Chemicals- Nerolac Perma
Construction Chemicals- Nerolac Perma KNPL has an entire range of construction chemicals consisting of General waterproofing, General repairs, Tiling, Admixture, High end waterproofing, sealants, structural repairs, flooring, industrial grouts and Waterproof putty June 2022
Slide 27: Adhesives- Nerofix
Adhesives- Nerofix An evolving range of woodworking adhesives developed after months of research and field trials to deliver superior results at optimum cost with a focus on “safe to use” for carpenters. KNPL has a complete range of products covering both white-based and rubber-based adhesives June
Slide 28: Auto Re-Finish
Auto Re-Finish An extensive range of high quality products to cater all segments in Auto Refinish. KNPL has developed a complete range of products catering to the Premium, Economy and Retail market After Market Repainting and Touch-up for Passenger Vehicles, Commercial Vehicles, Two- Wheelers, Three
Slide 29: Niche Industrial Markets
Niche Industrial Markets Railways Rebar Floor Coil Future Industrial Growth Drivers June 2022
Slide 30: International Subsidiaries
International Subsidiaries June 2022
Slide 31: Organizational Capabilities
Organizational Capabilities Manufacturing R&D IT & Digital People Prowess Prowess June 2022
Slide 32: Manufacturing Prowess
Manufacturing Prowess Annual Capacity in Year State-of-the-art technologies and mn Ltr World Class Manufacturing modern digital solutions help to Existing 2018-19 452 Systems achieve end to end automation. 2019-20 518 2020-21 547 • MES (Manufacturing Execution System) • WMS (Warehouse Management Sys
Slide 33: R & D Prowess
R & D Prowess R&D Spend Number of R&D personnel New Products Launched Number of patents in FY 21-22 filed in 21-22 ~ Rs.31 Cr 178 46 3 New R&D Centre Technical Collaborations • Commissioning of State-of-the-art Research and • Key Technology partner: Kansai Paints Co. Development facility at Vashi, N
Slide 34: R & D Prowess
R & D Prowess Leadership in Decorative Leadership in Industrial Emerging Areas of Focus • The Company is a leader in Industrial • The Company was built on its • The Company is now focussing its Coatings and has pioneered many pioneering work in the Indian market efforts on business opportunity impor
Slide 35: IT
IT ERP Supply Chain CRM Dealer Portal Ariba Vendor Portal EHS HR Analytics Engine IoT, Predictive analytics, ML(SAP Leonardo), RPA Cloud (Office 365 Platform), Top Level Security Infrastructure, Collaboration Tools (Teams) Completely IT Enabled Business running on SAP HANA (Early Adopters of New Tec
Slide 36: Embed Digital
EMBED DIGITAL CREATE DIGITAL ASSETS VISION INCORPORATE DATA & INFO WITHIN & OUTSIDE AUTOMATION & CONTROL VISION AUTOMATE FOR AVAILABILITY & RELIABILITY INTELLIGENCE LAYER VISION OUTSIDE IN PERSPECTIVE, PREDICTIVE, VISUAL SMART ENTERPRISE VISION DEPLOY SMART NEXT GENERATION TOOLS EXPERIENCE LAYER VIS
Slide 37: People
People Employee experience Organization Connect • #Purpose and Expression on Mission, • #Town hall meeting by MD Vision and Core Values • #Coffee with HR • # Learning Conferences • #Virtual On boarding • #Best Practices Interview • #Idea Management Programme • #Talent Development • #Gems • #Kaizen C
Slide 38: Our ESG Approach – 3P Approach
Our ESG Approach – 3P Approach We follow a triple bottomline (3P – People, Planet and Profit) approach and judiciously manage the six capitals (Natural, Human, Financial, Manufactured, Intellectual and Social & Relationship) to achieve our strategic objectives. June 2022
Slide 39: Our ESG Approach - Materiality
Our ESG Approach - Materiality We have categorized our material topics under 5 broad areas: Decarbonisation Resource Use Quality of Life Diversity Governance • Human Rights • Corporate • Water Management • Occupational Health Governance • Energy Management and Safety • Waste Management • Employee •
Slide 40: Our ESG Approach
Our ESG Approach Decrease in Key Parameters in FY 21-22 over the last 5 years Specific Specific Fuel Power Consumption Consumption 14% 9% Specific Specific Hazardous Water Waste Consumption Generation 26% 26% GHG Intensity 31% June 2022 Green Power Generation
Slide 41: Our ESG Approach - Social
Our ESG Approach NEROLAC SOCIAL Empowering People & Communities QUALITY OF LIFE DIVERSITY Approach: Approach: * Community Development * Fostering diversity and nurturing inclusivity by * Promote Equality promoting advancement for our colleagues, culture, and communities * Employee Engagement * Promo
Slide 42: Our ESG Approach - Governance
Our ESG Approach NEROLAC GOVERNANCE Empowering People & Communities GOVERNANCE ¢ Enterprise Risk Management « Zero non-compliances * Board Oversight * Reduce Enterprise Risk * Statutory Compliances * Fair Practices across Value-Chain June 2022
Slide 43: Recognition
Recognition Recognition S&P CRISIL ESG Gauge CRISIL ESG Gauge FTSE4Good Featured in the Top Quartile of Ranked in Top Quartile in Recognized in the “Leadership” Ranked in the Top Quartile of Global Chemical Industry S&P manufacturing space on ESG Category by CRISIL in its FTSE4Good Emerging Index ES
Slide 44: Key Awards
Key Awards CORPORATE CUSTOMER BRAND MARKETING INSTITUTE OF COMPANY BEST VENDOR AWARD FOR COST- TRUSTED BRAND GOLD AWARD- SECRETARIES- CORPORATE BEST MEDIA INNOVATION- EMVIES TOYOTA (2016) READERS DIGEST (2017) GOVERNANCE (2007) PRODUCT OF THE YEAR AWARD- GOLDEN PEACOCK- CORPORATE BEST SUPPLIER AWARD
Slide 45: Key Awards
Key Awards CSR PRODUCT ENVIRONMENT IT 8TH ACEF ASIAN LEADERS INNOVATIVE PRODUCT/ ENVIRONMENT EXCELLENCE GOLD ACE AWARDS- SAP FORUM AND AWARDS SERVICE AWARD- GOLDEN AWARD- LOTE, GREENTECH (2012, 2014, 2016) (2019-20) PEACOCK (2010, 2011) EVIRONMENT EXCELLENCE (2007-08), EXCELLENCE AWARD-CII(2021) SIL
Slide 46: Key Awards
Key Awards MANUFACTURING HUMAN RESOURCE LEADERSHIP OTHERS ASIAN MANUFACTURING CSR REPORT EXCELLENCE AWARD- KNPL WAS CERTIFIED AS ONE AMONG THE TOP 50 GOLD TROPHY- FROST AND SULLIVAN OF THE GREAT PLACE TO CEOS- ENTREPRENEUR ABCI AWARD (2010) WORK BY GPTW IN YEAR MAGAZINE (2014) (2007) (2018-19, 2021-
Slide 47: Selective List of Customers
Selective List of Customers General Industrial High Performance Automotive Coatings OEMs Powder Coatings Coatings Coatings MARUTI SUZUKI GODREJ RELIANCE INDUSTRIES GODREJ TOYOTA KIRLOSKAR WHIRPOOL ADANI HITACHI HONDA CARS KIRBY BUSINESS SYSTEMS AMBUJA CEMENT WHIRPOOL RENAUL
Slide 48: Consolidated Snapshot
Consolidated Snapshot CAGR (LAST 20 YEARS) (FY 2002- FY 2022) Sales Rs. mn. 12 PBDIT Rs. mn. 13 PBT Rs. mn. 14 June 2022
Slide 49: End of Presentation
End of Presentation June 2022
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